PostRock Energy Corp. is continuing its push into oil production.
The Oklahoma City-based company on Monday announced it had secured the outstanding 50 percent working interest in three producing wells and 110 acres in Seminole County. Those wells produce about 20 barrels of oil a day.
The $750,000 purchase gives PostRock full ownership of the acreage, with estimated net proved reserves of 110,000 barrels of oil.
PostRock also closed the previously announced $10 million purchase of about 22,000 net acres in three central Oklahoma counties.
The company paid $3.4 million in cash and issued 4.5 million shares of stock to acquire the acreage in Pottawatomie, Cleveland and McClain counties.
CEO Terry W. Carter said that deal is an “important step” in PostRock's shift to oil development.
He also said PostRock now expects to begin development workovers this month on the three recently bought wells in Seminole County.
David Klvac, PostRock's chief financial officer, said the company's new acreage also includes access to the Woodford Shale, which runs across most of the state.
“We think we're in the oily window,” he said.