Magnum Hunter CEO Gary Evans is waiting for service costs to drop 40% before the company restarts drilling.
Small cap and huge independents are ready to make deals as the market saps the strength of stressed companies.
‘The Anadarko Basin is not a five-minute story like other shale plays. It is more complex, but we like the optionality of either oil, gas or liquids, shallow and deep,’ said Four Point’s Brad Marvin.
Inside the deal for the historic field near the southwestern edge of the Powder River Basin. It has produced 28.5 million barrels (MMbbl) of oil with an estimated 300 MMbbl in place.
The shale gas company’s deal comes after executives have said they want to sells assets to reduce debt.
Transactions for D-J acreage double reserves, cash flow and production to 1,000 boe/d, enabling the company to become cash-flow positive.