Harding/Shelton Inc. Sells Anadarko Basin Assets

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Acquired non-operated Anadarko Basin assets producing 1,200 BOE/d net from 150 proved developed wells.

Harding/Shelton Inc., an Oklahoma City-based exploration and production company, is selling its operated and non-operated Western Anadarko Basin assets to Lighthouse Oil & Gas LP for an undisclosed amount.

The sale – one of the more sizeable Anadarko Basin asset transactions in recent years – represents a major step in Harding/Shelton’s corporate restructuring initiative.

The site produces 1,200 barrels of oil equivalent a day (BOE/d) net, 57% of which is liquids; 150 proved developed wells (62 operated); 7.3 million BOE proved reserves; 2.9 million PDP (41% of proved); and a 16.6 years reserves-to-production ratio.

The legacy assets are 96% held by production, with 35 operated and 58 non-operated sections on 15,667 net (56,057 gross) mostly contiguous acres.

Post transaction, the company will retain ownership in more than 100 wells and 10,000 acres from McClain to Woodward counties, with plentiful opportunities to develop.

“We’re now poised to at least quadruple the value of our retained assets,” Nathaniel Harding, technical negotiating lead, said in prepared remarks. “With a track record of creating significant value, foothold in highly attractive plays and cash ready to deploy, we’re eager to exploit and expand our asset base using novel approaches we believe will be a game-changer.”

John Shelton and Charles Harding will become advisors to the restructured Harding/Shelton, with Kevin Dunnington and Nathaniel Harding assuming the roles of CEO and president, respectively.

“We’re very pleased to monetize our assets in Dewey, Roger Mills and Custer counties as it provides the necessary momentum to restructure Harding/Shelton for success in the company’s next phase,” Dunnington stated in a press release.

Harding/Shelton, a family-owned company, has operated in Oklahoma for three decades. Company founders Shelton and Harding aggregated substantial blocks of Western Anadarko Basin acreage in the 1980s and ’90s.

The company discovered and developed fields near Aledo throughout the ‘90s and early 2000s. In 2008, Harding/Shelton began redeveloping the Tonkawa and Cleveland using horizontal well technology, a successfully move for the company and its partners.

“While we’re happy to sell our legacy assets to Lighthouse Oil & Gas, we couldn’t be more pleased to see the family business continue successfully into the next generation,” Shelton said.

Staff dedicated to the assets will continue with Lighthouse Oil & Gas LP. Houston-based Integral Advisors Corp. acted as sole financial advisor to Harding/Shelton and other joint sellers in this transaction.