FourPoint to partly fund $840 million purchase with credit facilities

By Wendy Van Sickle

Columbus, Ohio, July 1 – FourPoint Energy, LLC will draw from its existing credit facilities to fund part of its acquisition of $840 million of oil and gas assets from Chesapeake Exploration LLC and CHK Cleveland Tonkawa LLC, according to a press release.

A $619 million chunk of the acquisition is slated to come from FourPoint Holdings equity, with the remaining $221 million set to come from the company’s credit facilities.

The acquisition includes an interest in approximately 1,500 oil- and natural gas-producing wells primarily in the Cleveland, Tonkawa and Marmaton formations. The assets cover nearly 250,000 net acres centered in Roger Mills and Ellis counties, Oklahoma, according to the release.

FourPoint is to assume full operation of the assets at closing, which is anticipated for Aug. 31.

“The acquisition complements FourPoint’s current acreage footprint and boosts our inventory by adding a significant amount of operated, oily locations in formations largely unrepresented in our current portfolio,” George Solich, president and chief executive officer of FourPoint, said in the release.

“Additionally, the assets to be acquired include a large base of production which strengthens our cash flow profile in this uncertain commodity price environment.”

FourPoint Energy is a privately held acquisition, exploration and production company based in Denver.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.