DALLAS–(BUSINESS WIRE)–Payne Exploration has retained Energy Capital Solutions, LLC to sell Payne’s assets located primarily in Kingfisher and Logan Counties, Oklahoma in the STACK trend. This asset package is comprised of 8,840 net acres, which is 99% held by production. Payne’s assets produce from the Woodford, Hunton and Mississippian (Osage) formations, and are prospective for the Oswego formation. Payne is also selling a package of non-STACK assets comprised of 19,751 net acres in Oklahoma, Texas, Kansas and Nebraska. Non-binding indications of interest are due from interested parties by August 7.
STACK Asset Package
The company has accumulated acreage with very high operational control in one of the most economic plays in North America. The Payne STACK assets currently produce from 100 wellbores across its acreage, which hold by production 83 PUDs and nearly 400 additional horizontal well locations targeting the Woodford, Hunton, Mississippian and Oswego formations. Payne operates 96% of the PDP reserves in this asset package and the leasehold has high net revenue interests, greater than 82%. DeGolyer & MacNaughton, as of May 31, 2017, estimated net 1P reserves of 116.0 Bcf and 10.9 MMBbl (PV-10 of $218.9 MM) for the STACK assets. D&M identified 83 PUD drilling locations across the STACK acreage.
Non-STACK Asset Package
The company’s non-STACK package includes 186 producing wells across 19,751 net acres in Oklahoma, Texas, Kansas and Nebraska. Payne operates 46% of the PDP reserve value. Payne’s 8,494 acres in Oklahoma are 91% held by production. DeGolyer & MacNaughton, as of May 31, 2017, estimated net 1P reserves of 8.9 Bcf and 0.7 MMbbl (PV-10 of $13.2 MM) for the non-STACK assets.
Energy Capital Solutions has an online data room for interested parties to review the assets in more detail upon execution of a confidentiality agreement.