Benchmark Energy acquires oil and gas production assets in Anadarko basin
(WO) – Acacia Research Corporation’s majority owned subsidiary, Benchmark Energy II, LLC, has entered into a Purchase and Sale Agreement (“PSA”) to acquire certain upstream assets and related facilities in Texas and Oklahoma from a private seller. The acquisition is anticipated to expand the Benchmark portfolio, adding approximately 140,000 net acres and approximately 470 operated production wells in the prolific Western Anadarko basin throughout the Texas Panhandle and Western Oklahoma.
Acquisition highlights include:
- Expanded operated position throughout the core of the Western Anadarko basin with over 110,000 net acres, 100% of which is held-by-production, with an additional 27,000 net acres in the emerging Cherokee play
- Liquids-rich, low-decline, mature production base of approximately 6,000 boed across approximately 470 operated wells
- Significant opportunity set of field enhancement, including artificial lift optimization, workovers and return-to-production projects
- Material exposure to the emerging Cherokee development play via operated acreage and non-operated arrangements with best-in-class operators
- Benchmark anticipates hedging a significant amount of production
The acquisition expands upon Acacia’s strategy within its Benchmark subsidiary of driving returns through a focus on cash flow. This is accomplished through acquiring predictable and shallow decline, cash-flowing oil and gas properties whose value can be enhanced via a disciplined, field optimization strategy, with risk managed through robust commodity hedges and low leverage.
Kirk Goehring, Benchmark’s Chief Executive Officer commented, “The acquisition of these assets represents a transformative moment in Benchmark Energy’s history and an important next step in our partnership with Acacia and McArron. This unique asset is expected to deliver attractive, mature production with multiple drivers to enhance value. After closing this acquisition, Benchmark will have a large, contiguous acreage position in the heart of the Mid-Continent, and incremental scale to continue driving meaningful operational enhancements to create attractive returns for our stakeholders for many years to come.”
Enhancing scale in the Anadarko basin. The acquisition includes an interest in approximately 470 operated wells producing approximately 6,000 boed in the core of the Western Anadarko basin, as well as a non-operated interest in the undeveloped Cherokee play. The wells are mature, low-decline production and will add significant diversification to Benchmark’s production, with a balanced pro-forma portfolio of approximately 60% liquids and 40% natural gas. Further, the assets’ proximity to Benchmark’s existing operations in Texas creates further potential to develop operational synergies of scale in the basin.
