Oklahoma Firm Ups Its Ownership In Fayetteville Shale Play

Panhandle Oil and Gas, an Oklahoma City-based holding company, says it has agreed to purchase interests in 193 non-operated natural gas wells and 1,531 acres of leasehold located in Van Buren, Conway and Cleburne counties for $17.5 million from a private seller.

The cash and credit transaction is projected to close on or about Oct. 25, 2011, with an effective date of Sept. 1, 2011. The properties are principally located in the core of the prolific Fayetteville Shale natural gas play and are primarily operated by the play’s premier operator, presumably Southwestern Energy.

"We are pleased to be able to add this package of high quality properties to our existing holdings in the Fayetteville. These properties will increase our acreage holdings in the core area of the Fayetteville by 18 percent and the current production from the properties will increase total Panhandle production by approximately 12 percent," said Panhandle CEO Michael Coffman.  "In addition to this acquisition, we have purchased 1,160 net fee mineral acres in the Fayetteville over the last couple of months.  The total acreage added in the combined transactions amounts to 2,691 net acres, an addition of 37 percent to our net acreage holdings in the Fayetteville."