Tulsa’s Midstates Petroleum Company, Inc. announced this week it has sold its Anadarko Basin producing properties in western Oklahoma and the Texas panhandle in a $58 million deal.
The identity of the buyer was not revealed. The divested properties, according to Midstates, had fourth quarter 2017 net production of 3,900 barrels of oil equivalent. Anticipating the sale, Midstates carried out a reduction-in-force of employees in January and said it reduced adjust cash G and A expense by nearly $5 million a year.
“The sale of our Anadarko Basin properties aligns perfectly with our strategy to focus our activity, reduce costs, generate substantial free cash flow and improve liquidity for maximum optionality,” explained David Sambrooks, President and Chief Executive Officer.
He said the sale will strengthen the company’s balance sheet and allow the drilling focus to be on its Mississippian Lime assets. The closing of the sale is expected to be in the second quarter of 2018.