Chaparral Energy Inc (CHPE: OTCQB) | Chaparral Energy Announces Sale of EOR Assets for $170 Million

OKLAHOMA CITY, Oct. 13, 2017 (GLOBE NEWSWIRE) — Chaparral Energy, Inc. (OTCQB:CHPE) announced currently that it has entered into a decisive agreement to sell a North Burbank and Texas Panhandle extended oil liberation (EOR) resources for $170 million money and certain fortuitous payments, theme to prevalent shutting adjustments, to an undisclosed  buyer.

“The sale of these assets marks a vital miracle in a transition of Chaparral to a premiere pure-play STACK operator. Our teams will now be means to serve concentration a capital, activity and operational knowledge exclusively on accelerating expansion of a rarely mercantile STACK inventory,” pronounced Chief Executive Officer Earl Reynolds. “In addition, a deduction from this transaction will concede us to serve revoke a debt, boost liquidity and strengthen a already clever change sheet. The sale will also materially reduce a altogether sum handling cost structure, that we perspective as vicious in this flighty commodity cost environment.”

Closing is approaching in Nov 2017 and is theme to compensation of certain prevalent shutting conditions. In serve to a money care during closing, a agreement provides for fortuitous payments to Chaparral by Dec 2020 on a apportionment of a buyer’s unhedged prolongation volumes, where a cost perceived is aloft than a buyer’s hedged prices. Under a terms of a agreement, that embody an effective sale date of Jun 1, 2017, and enclose prevalent representations, warranties, covenants and indemnities by a parties, Chaparral has perceived an $11.9 million opening deposit.

Chaparral’s formerly settled 2017 prolongation guidance, including a EOR assets, was 8.3 to 8.7 million barrels of oil equivalent, that includes an expected 45 percent year-over-year boost in STACK prolongation trimming from 9,100 to 9,500 barrels of oil homogeneous per day(Boe/d).  Estimated stream prolongation compared with a EOR resources is approximately 5,700 Boe/d.

The association will yield some-more sum about this transaction, year-end expectations and destiny expansion skeleton on a third entertain gain call in early November.

About Chaparral
Chaparral is an eccentric oil and healthy gas scrutiny and prolongation association headquartered in Oklahoma City. Founded in 1988, Chaparral is a heading Mid-Continent user with focused operations in Oklahoma’s fast-growing STACK Play. The association has intensity prolongation pot of some-more than 1 billion barrels of oil homogeneous and approximately 400,000 net aspect acres, of that approximately 110,000 acres are in a rarely mercantile STACK Play. For some-more information, greatfully revisit chaparralenergy.com.

Statements done in this recover enclose “forward-looking statements.” These statements are formed on certain assumptions and expectations done by Chaparral, that simulate management’s experience, estimates and notice of chronological trends, stream conditions, expected destiny developments, intensity for pot and drilling, execution of stream and destiny acquisitions, and growth, advantages of acquisitions, destiny rival position and other factors believed to be appropriate. These forward-looking statements are theme to certain risks, trends and uncertainties that could means tangible formula to differ materially from those projected. Among those risks, trends and uncertainties are a ability to find oil and healthy gas pot that are economically recoverable, a sensitivity of oil and healthy gas prices, a capricious mercantile conditions in a United States and globally, a decrease in a haven values of a properties that might outcome in roof exam write-downs, a ability to reinstate pot and means production, a guess of a sufficiency of a existent collateral sources, a ability to lift additional collateral to account money mandate for destiny operations, a uncertainties concerned in awaiting expansion and skill acquisitions or dispositions and in raised destiny rates of prolongation or destiny reserves, a timing of expansion expenditures and drilling of wells, a impact of healthy disasters on a benefaction and destiny operations, a impact of supervision law and a handling hazards attendant to a oil and healthy gas business. Please review “Risk Factors” in a annual reports on form 10-K and other open filings. We commence no avocation to refurbish or correct these forward-looking statements.

Investor Contact
Joe Evans
Chief Financial Officer
405-426-4590
joe.evans@chaparralenergy.com

Media Contact
Brandi Wessel
Manager – Corporate Communications
405-426-6657
brandi.wessel@chaparralenergy.com

Primary Logo

This entry was posted in Think Pink! and tagged . Bookmark the permalink.