Marathon's STACK Bt | Russell T. Rudy Energy LLC
The Bakken, Eagle Ford, Marcellus and Permian Basin get the headlines in the energy industry press, but the STACK (Sooner Trend Anadarko Basin Canadian and Kingfisher Counties) play is getting the attention of investors. Located in Western Oklahoma, Southwestern Kansas, Southeastern Colorado, and part of the Texas Panhandle, the 60,000 square mile area is attractive due to lower operating costs than other parts of the U. S.
“Rigzone” reports that Continental Resources, Devon Energy, and Marathon Oil all have made the STACK an investment priority. Devon recently bought 80,000 net acres from EnCap Investments’ Feliz Energy unit for $1.9 billion. Now Marathon is buying properties producing 9,000 barrels of oil equivalent per day (boepd) from another EnCap unit, PayRock Energy Holdings, for $888 million.
Newfield Exploration Co. has agreed to buy 42,000 net acres from Chesapeake for $470 million, and Continental Resources is already producing 11,128 boepd from the STACK. Devon’s production in the play has significantly increased to 91,000 boped in the play.
Given Marathon’s current divestiture of non-core assets, this bet is the STACK is a significant vote of confidence in the play’s potential.
To read the article in its entirety, please go to http://www.rigzone.com/news/oil_gas/a/145173/Marathon_Oil_Deal_Latest_Big_Oklahoma_Bet_by_US_Drillers?utm .
