Oklahoma energy briefs for June 6

Oklahoma energy briefs for June 6, 2014
Oklahoman Published: June 6, 2014
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Rose Rock takes on truck assets

Rose Rock Midstream LP on Thursday announced a deal to acquire crude oil trucking assets from a subsidiary of Chesapeake Energy Corp. The deal with Chesapeake Energy Marketing Inc. includes 124 trucks, 122 trailers and other equipment operating in Texas, Oklahoma and Ohio, plus about 200 employees. Terms were not disclosed. “Crude oil trucking continues to be a crucial element of midstream infrastructure,” said Carlin Conner, chief executive officer of Rose Rock’s general partner. Once the acquisition is complete, Rose Rock will operate a fleet of more than 250 trucks, serving shale plays from North Dakota to Texas, with about 350 employees.

WPX makes $355M sale to Legacy

WPX Energy has completed its $355 million sale of working interests in some of its wells in Colorado’s Piceance Basin to Legacy Reserves LP, the company announced Thursday. The interests represent about 9 percent of WPX’s year-end proved reserves in the basin. “I’m pleased with the benefits this transaction brings to WPX in both 2014 and beyond,” CEO Rick Muncrief said. “This fills the majority of the funding gap in our 2014 capital plan and monetizes mature gas assets in a way that keeps our corporate structure and our story simple. We will use the proceeds from the sale to build on the successes we’re seeing in our growth basins, particularly our oil plays where we grew domestic volumes by 40 percent in the first quarter versus a year ago.” WPX will also receive a 10 percent stake in Legacy’s newly created class on incentive distribution rights, with the opportunity to increase its ownership to 30 percent.

Helmerich and Payne speeds work

Helmerich and Payne Inc. is poised to speed up its construction schedule in light of additional drilling rig orders. The company announced Wednesday that five companies had ordered a total of nine new rigs, pushing its building commitment for this fiscal year to 53 rigs. “The 53 new FlexRig orders so far during the fiscal year signal a strong drumbeat of opportunity for the foreseeable future,” CEO John Lindsay said. The company intends to boost its construction schedule to four rigs a month in September. It currently builds three new rigs a month.

Petro River Corp. gets 106K acres

Petro River Oil Corp. has acquired about 106,000 acres in Osage County, the Houston-based company announced Thursday. Terms of the deal with Bandolier Energy LLC were not disclosed. The Pearsonia West Concession is the largest contiguous oil and natural gas acreage position in northeastern Oklahoma, with development opportunities for vertical and horizontal drilling. The acreage includes multiple producing horizontal wells and significant infrastructure. “In completing this acquisition, we are closer to achieving our goal of joint venture development in the Mississippi Lime,” said Daniel Smith, the company’s executive vice president of operations.