QEP Energy Co.

Transaction Type
Sellers
Marketers
Post Date
Close Date
Estimated Price
MM
Description

QEP Energy Co. has retained BMO Capital Markets to sell its western Oklahoma leasehold interest within the Woodford/Cana shale play.

QEP prefers to sell the properties in a single cash transaction but will consider offers for separate operated and non-operated packages.

Net production reaches about 100 million cubic feet equivalent (MMcfe) per day, about 40% of which is liquids. Cash flows from the assets are about $13.6 million per month.

About 77,000 net acres are focused in Canadian, Blaine, and Dewey counties, Oklahoma. QEP is selling all rights to all depths.

The assets include more than 2,700 identified Woodford/Cana drilling locations in about 630 drilling spacing units. At least 109 units, or 49% of the net acreage, can be operated by QEP. The area is active, with 17 horizontal Woodford/Cana rigs drilling on or offset to QEP acreage. The operators include QEP, Devon, Cimarex and Continental.

Net proved reserves from the assets are 1,384 billion cubic feet equivalent worth a present value of $967 million when discounted at 10%.

Final offers are due on or before March 7. For additional information, contact Miles Redfield, managing director at BMO Capital Markets, at 713-546-9715.