Lower Oil Prices Fail to Hinder STACK Development Deal

Despite lower energy prices, plans are being made to further develop a stretch of the STACK play in Kingfisher County. Bayou City Energy affiliate BCE-STACK Development LLC (DrillCo) has entered into a Joint Development Agreement (JDA) with Alta Mesa Holdings (AMH) subsidiary Oklahoma Energy Acquisitions, LP to finance the drilling of joint wells on Alta Mesa’s acreage.

Forty horizontal wells are planned initially for the drilling program. They will come in two waves with 20 wells in each phase. The companies could increase the number of wells for the same terms as the first 40 wells. Development operations began this month and are expected into early next year.

“We are thrilled to partner with the technically expert management at AMH in developing what is rapidly being revealed as one of the premier unconventional resources in the United States. These wells deliver outstanding returns even at today’s depressed hydrocarbon prices, and BCE could not have found a better operating partner than AMH, who is leading the delineation of the play with demonstrated repeatable successes and its characteristic operational excellence,” said BCE Founding Partner William McCullen.

Alta Mesa Holdings LP Chief Executive Officer Hal Chappelle heaped praise on the company’s new partner.

“Bayou City is the ideal financial partner to help our Company achieve its objectives in the Mid-Continent region.”



   

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