Playbooks Supplements

Scoop-Stack Playbook 2017

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SCOOP/STACK: OVERVIEW | September 2017 | 11 Marathon spurs production Marathon Oil's unconventional Oklahoma produc- tion averaged 44,000 net boe/d during fi rst-quarter 2017, according to its earnings report, up more than 60% from the year-ago quarter. Of the 12 gross operated wells brought to sales in the fi rst quarter, fi ve were part of the company's fi rst operated Stack infi ll spacing test, the Yost pilot, and the others were focused on lease retention and delineation. The Yost, in the normally pressured black oil window in central Kingfi sher County, tested 107- acre well spacing with completions of about 2,500 lb of proppant per lateral foot. The 30-day IP rates from the fi ve new standard-lateral Yost wells and parent well averaged 990 boe/d (57% oil). The company said it plans to bring 90 to 100 gross operated wells to sales this year, including four to fi ve Stack infi ll pilots and two Scoop infi ll pilots, and will test secondary horizons. School's not out yet for operators working the Scoop/Stack play, and they'll learn a lot in the next several years. ■ There are plenty of startups in the Scoop/Stack, but since Gulfport's hefty purchase in December 2016, no major deals have been struck. There will be more transactions in the coming year, particularly as the fi ve major opera- tors cooperate to trade sections and block up acreage for better development. According to a recent note from analyst Neal Dingmann with SunTrust Robinson Humphrey during a late March pre- sentation at the Society of Petroleum Engineer's Scoop/Stack event in Houston, "the highlight was when HighMark Energy's Ali Ahmed predicted deals to be announced in the next two to fi ve weeks that would be valued at $25,000 to $30,000 per acreage or the highest on record in the play. The previous high watermark for the Stack was set by Devon in late 2015 with the $20,000/acre acquisition of Felix Energy LLC." The deals were expected to focus on the core Stack, and would not necessarily involve the current large publics in the play, according to the note. ■ MidContinent Acquisitions and Divestitures *John B. Kleinheinz, Kleinheinz Capital Partners Inc., GKK Husky LLC, Husky Oklahoma LLC and Strong Oil and Gas Ltd. (Data courtesy of Williams Capital Group) Anadarko Basin Scoop/Stack Transactions Announced Date Buyer(s) Seller(s) Area Transaction Value ($ millions) Production (Mboe/d) Total Value of Production ($ millions) Net Acres $/Undeveloped Acre 12/7/2015 Devon Felix Energy Stack-Kingfi sher, Canadian, Blaine $1,900 9 $270 80,000 $20,375 4/22/2016 Casillas Petroleum Chesapeake Garvin, Grady and McClain counties $106 $0 12,000 $8,833 4/28/2016 Triumph Energy Partners RRC Stack-Blaine, Canadian, Kingfi sher, Major $77 0.8 $20.8 9,200 $6,105 5/5/2016 Newfi eld Chesapeake Stack-Kingfi sher, Canadian, Blaine, Dewey, Custer $470 3.8 $114 42,000 $8,476 6/20/2016 Marathon Oil PayRock Stack-Kingfi sher, Canadian $888 9 $166.5 61,000 $11,828 7/28/2016 Rimrock Resource Partners Undisclosed Scoop $150 2.1 $38.9 24,500 $4,537 8/18/2016 Jones Energy Aubrey McClendon's estate Stack/Scoop-Canadian, Grady and McClain $136.5 18,000 $7,583 10/17/2016 Casillas Petroleum Continental Resources Scoop $296 0.7 $17.5 30,000 $9,283 10/20/2016 Red Bluff Resources Gastar Canadian/Kingfi sher $71 0.2 $2.6 25,000 $2,737 12/14/2016 Gulfport Vitruvian II Woodford LLC Scoop-Grady, Stephens and Garvin counties $1,850 30.5 $810.0 46,400 $22,414 1/16/2017 Apollo-backed Zenergy Staghorn Stack (East) $613 2.8 $55.5 41,386 $13,472 3/22/2017 Gastar Multiple private sellers* Stack-Kingfi sher County $51.4 0.3 $8.3 5,670 $7,610 Weighted Average $6,608.9 59.2 $1,504.0 395,156 $12,919

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