BP TO SELL SWOOP (SHALLOW WOODFORD OKLAHOMA OIL PLAY) ASSETS - Drillinginfo
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Executive Deal Summary | December 19, 2018
BP TO SELL SWOOP (SHALLOW
WOODFORD OKLAHOMA OIL PLAY)
ASSETS
HIGHLIGHTS:
o BP SWOOP assets are part of its US Onshore Divestiture Program,
to help partially fund its $10.5 billion BHP acquisition
o Covers ~33,000 net acres in McClain and Cleveland counties in
Oklahoma
o Targets Woodford with upside from Hunton and other formations
o Current production: 4.2 MBOE/d (81% oil, 11% NGL, 8% gas)
o Virtual Data Room is available from January 29, 2019 and the bids
are due on or before March 19, 2019
learn more at www.drillinginfo.com
0 on January
Published Better,29,
Faster
2019Decisions © 2019 Drillinginfo, Inc. All rights reserved. All brand names and trademarks are the properties of their respective companies.
Disclaimers
Forward-Looking Statements No Investment Advice
This presentation may contain forward-looking statements. In This presentation is being provided solely for informational
this context, forward-looking statements often address future purposes and nothing herein shall be considered investment
commodity prices and M&A or E&P activity and often contain advice. We cannot guarantee the completeness, timeliness or
words such as "expect," "anticipate," "intend," "plan,“ "believe," accuracy of the information contained herein. Any decisions
"seek," "see," "will," "would," "target," similar expressions, and based upon the information contained in this presentation are
variations or negatives of these words. Forward-looking the sole responsibility of the decision maker. INVESTMENTS IN
statements by their nature address matters that are, to different OIL AND GAS PROPERTIES, EQUITIES, AND COMMODITIES
degrees, uncertain and are subject to risks, uncertainties and INVOLVES SUBSTANTIAL RISK INCLUDING THE POSSIBLE
assumptions that could cause actual results to differ materially LOSS OF PRINCIPAL. THESE RISKS INCLUDE PRICE
from those expressed in any forward-looking statements. FLUCTUATIONS AND UNFORESEEN EVENTS THAT MAY
Nothing in this presentation should be considered a guarantee AFFECT OIL & GAS VALUES.
of future results. Important risk factors that may cause such a
difference include, but are not limited to, trends in oil and gas
production and exploration activity; government regulation , No Solicitation
including those that negatively affect the production of oil and This presentation is not, and nothing in it should be construed
gas using hydraulic fracturing; industry and market trends; as, an offer, invitation, or recommendation in respect of the
general changes in laws or regulations whether or not specific to securities of Drilling Info Holdings, Inc. or any other company, or
the oil & gas industry; and general economic conditions whether an offer, invitation or recommendation to sell, or a solicitation of
or not specific to the oil & gas industry. While this list of factors is an offer to buy, any securities in any jurisdiction. Neither this
considered representative, no such list should be considered to presentation nor anything in it shall form the basis of any
be a complete statement of all potential risks and uncertainties. contract or commitment. This presentation is not intended to be
Unlisted factors may present significant additional obstacles to relied upon as advice to investors or potential investors and
the realization of forward looking statements. We assume no does not take into account the investment objectives, financial
obligation to publicly provide revisions or updates to any forward situation or needs of any investor. All investors should consider
looking statements, whether as a result of new information, such factors in consultation with a professional advisor of their
future developments or otherwise, should circumstances choosing when deciding if an investment is appropriate.
change, except as otherwise required by securities and other
applicable laws.
1 Better, Faster Decisions © 2019 Drillinginfo, Inc. All rights reserved. All brand names and trademarks are the properties of their respective companies.
BP looking to sell its SWOOP assets
located primarily in McClain county
BP holds ~33,000 net acres in SWOOP, an emerging play which is an eastern extension of the SCOOP play in western McClain and southeastern
Cleveland counties
BP brought 18 out of its 19 marketed wells into production during 2018 to increase the January 2018 production over 8 times to the current 4.2 MBOE/d
Asset Highlights:
o Located in McClain Co., and Cleveland Co., OK
o Covers ~33,000 net acres (70% HBP as of 1-Jan-2019)
o Holds average ~89% operated WI
o Includes 19 operated wells
o Targets Woodford with upside from Hunton and other
formations
o Current Production: 4.2 MBOE/d (81% oil, 11% NGL, 8% gas)
o Operating cash flow during 2018: $34 million
Acreage on the market
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Historical Transactions and Assets on
Market
Casillas acquired 29,600 net acres to the southwest of the marketed acreage at 6,074 $/Acre from Sheridan for $260 million in October 2018
Travis Peak is looking to sell its Merge/North SCOOP assets in the vicinity of the marketed acreage covering 44,635 net acres with 6.5 MBOE/d (68% oil)
production
Historical Transactions Assets on Market
EnCana - Newfield; Travis Peak Resources; Aug-
$7,700M; Nov-2018; 5,599 1 A 2018; $100M-$500M; 6.5
$/Acre; 28,565 $/Daily BOE MBOE/d (68% oil)
Apache; Oct-2018; $500M-
Roan- Linn, Citizen II;
2 2 B $1,000M; 13.3 MBOE/d
$2,000M; Jun-2017
(50% oil)
Casillas Petroleum-Sheridan; A Eagle Energy Exploration;
$260M; Oct-2018; 6,074 3 C Sep-2018; $100M-$500M;
$/Acre; 24,084 $/Daily BOE 2.263 MBOE/d
B
C
3
1
Transactions with Deal Value >$100M
BP; Dec-2018; ~33,000 net acres; 4.2 MBOE/d announced after 1-Jun-2017
Source: Drillinginfo M&A and Maps Database
3 Better, Faster Decisions © 2019 Drillinginfo, Inc. All rights reserved. All brand names and trademarks are the properties of their respective companies.
Initial Production (30-day Average)
BP has reported IP30 for its SWOOP wells in the range of ~700 BOE/d to ~1,000 BOE/d (avg ~85% oil)
Casillas reported an average IP30 of ~1,000 BOE/d from its SCOOP wells
Newfield’s Larry 1H-22X well targeting Woodford achieved a high IP30 of ~1,930 BOE/d with a lateral length of ~10,000 feet
Coop 1-33-4WXH; 14-Nov-18 Terri 1621 1H; 03-May-18 Larry 1H-22X; 20-Feb-18 Parker-1HX; 19-Dec-18
Casillas Petroleum; SCOOP EOG; Woodford Newfield; SCOOP BP; SWOOP
IP30: 1,024 BOE/d (67% oil) IP30: 1,395 BOE/d (82% oil) IP30: 1,930 BOE/d (82% oil) IP30: 680 BOE/d (88% oil)
Moose 1-29WH; 14-Nov-18 Boechat-1HX; 19-Dec-18
Casillas Petroleum; SCOOP BP; SWOOP
IP30: 820 BOE/d (72% oil) BP Wells IP30: 930 BOE/d (87% oil)
Guinness 1-32-5WXH; 14-Nov-18 Brandt-1HX; 19-Dec-18
Casillas Petroleum; SCOOP BP; SWOOP
IP30: 882 BOE/d (62% oil) IP30: 915 BOE/d (77% oil)
Tecate 1-34-3WXH; 14-Nov-18 Brown-1HX; 19-Dec-18
Casillas Petroleum; SCOOP BP; SWOOP
IP30: 1,398 BOE/d (60% oil) IP30: 918 BOE/d (84% oil)
Whetstone 1-25-36WXH; 14-Nov-18 Whitney 1-27-22MXH; 14-Nov-18 Bullard 1-18/7H; 04-Oct-18 Norton-1HX; 19-Dec-18
Casillas Petroleum; SCOOP Casillas Petroleum; SCOOP Rimrock; SCOOP BP; SWOOP
IP30: 670 BOE/d (76% oil) IP30: 1,515 BOE/d (72% oil) IP30: 1,479 BOE/d (67% oil) IP30: 1,005 BOE/d (88% oil)
CLR ECA Jericho TRP Energy Gulfport Travis Peak Buffalo Creek Well Results reported in IR Decks
Source: Drillinginfo Intel Bytes and DocFinder ROAN Cosmo Finley Native Jones Eagle Energy Casillas Petroleum Resource post 1-Feb-2018
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Initial Production (24-hr)
Continental’s Lillian 1-23-14XH well targeting Woodford achieved a high IP24 of 1,593 BOE/d with lateral length of ~10,500 feet
Newfield’s Woodford wells lying towards the south of the marketed acreage achieved IP24 in the range of ~250 BOE/d to ~760 BOE/d
EOG’s Terri and Cole Farms wells targeting Woodford achieved an IP24 of ~500 BOE/d (89% oil) and ~320 BOE/d (82% oil), respectively
Elmenhorst-1H-01-12; 21-Feb-18 Pickard-1H-9; 02-Feb-18 Terri-1621 1H; 08-Mar-18
Travis Peak; Mississippian Gaedeke Oil & Gas; Woodford EOG; Woodford
IP24: 971.67 BOE/d (75% oil) IP24: 127.5 BOE/d (82% oil) IP24: 494.5 BOE/d (89% oil)
Lateral length: 6,725 ft Lateral length: 4,916 ft Lateral length: 10,582 ft
Pickard-1H-17X; 20-Feb-18 Goldsby Farms1HR-34-27; 04-Jan-18
Newfield; Woodford Roan Resources; Dev-Miss
IP24: 361 BOE/d (82% oil) IP24: 204.17 BOE/d (89% oil)
Lateral length: 10,312.11 ft
Cole Farms-0916 1H; 24-May-18
Turner-1H-22; 15-Mar-18 EOG; Woodford
Travis Peak; Mississippian IP24: 320.33 BOE/d (82% oil)
IP24: 690 BOE/d (82% oil) Lateral length: 10,240 ft
Lateral length: 4,746 ft
Dansil-1-15-10XH; 23-Mar-18 N. Hays-7H-5XR; 19-Feb-18
Continental; Woodford Newfield; Woodford
IP24: 1,296 BOE/d (86% oil) IP24: 261.67 BOE/d (63% oil)
Lateral length: 9,209 ft Lateral length: 9,623 ft
Lillian-1-23-14XH; 01-Mar-18 Wiley-1-27-28XH; 24-Mar-18
Continental; Woodford N. Hays-5H-5X; 12-Feb-18 Continental; Woodford
IP24: 1,593 BOE/d (74% oil) Newfield; Woodford IP24: 1,296 BOE/d (86% oil)
Lateral length: 10,503 ft IP24: 759.33 BOE/d (75% oil) Lateral length: 6,526 ft
CLR ECA Jericho TRP Energy Gulfport Travis Peak Buffalo Creek
Source: Drillinginfo ROAN Cosmo Finley Native Jones Eagle Energy Casillas Petroleum Resource Wells completed post 1-Jan-2018
5 Better, Faster Decisions © 2019 Drillinginfo, Inc. All rights reserved. All brand names and trademarks are the properties of their respective companies.
Potential Buyers
Casillas Petroleum Resource Partners:
JV between Casillas Petroleum Corp and
Kayne Anderson. It is one of the most
active buyer in the SCOOP since early
2016, including the purchase of Sheridan
Production Partners’ SCOOP assets in
Oct-2018 for $260 million
Native Exploration Holdings: Formed in
2017 with an equity commitments of $140
million from Kayne Anderson. It has built
up a significant position in McClain through
leasing and minor acquisitions
Roan Resources: Formed through the
merger of Linn Energy’s Anadarko Basin
assets with Citizen Energy in 2017.
Currently owns ~150,000 net acres in the
SCOOP, STACK, and Merge plays which
produced 40 MBOE/d in H1-2018
Rimrock Resources: Formed in 2015 with
$75 million in capital from Post Oak
Energy and Ceja Corporation. It has been
focusing on development of the Woodford
Shale in the SCOOP
Cornerstone Petroleum Resources:
Formed in 2013 with an initial funding of
$100 million from Post Oak Energy. It is
partnering with Rimrock on certain acreage
in the SCOOP
Source: Drillinginfo Maps and PE Database Select companies with significant presence near the transacted acreage
6 Better, Faster Decisions © 2019 Drillinginfo, Inc. All rights reserved. All brand names and trademarks are the properties of their respective companies.Rigs and Permits
Continental is the most active operator in the region with 17 active rigs and 80 permits in the vicinity of the marketed acreage
Roan is actively drilling wells to the north-west of the marketed acreage with 5 active rigs and 80 permits
Most of the activity is lying towards the west of the marketed acreage with other significant operators being Camino, Casillas and EOG
Rig Count in AOI
20
17
15
10
5
4
5 3
2 2 2
1 1 1
0
Active Permits in the AOI
90
80 80
80
70
60
50
40
30 25
20
20 16
11
8 8 7 7
10
0
Source: Drillinginfo Permits approved in the region post 1-Jan-2018
7 Better, Faster Decisions © 2019 Drillinginfo, Inc. All rights reserved. All brand names and trademarks are the properties of their respective companies.Type Curves
Continental reports a high IP30 of ~1,900 BOE/d and an EUR of 2,300 MBOE from 7,500 feet lateral in the condensate window targeting Woodford
Casillas reports an EUR of 2,900 MBOE from 10,000 feet lateral targeting the Woodford formation
Type Curves in the vicinity of the transacted acreage
2,000
1,800
Casillas Petroleum; Woodford Condensate; 2,900 MBOE EUR, for
10,000 feet lateral length; Nov-18
1,600
1,400
Continental Resources; Woodford Oil; 1,500 MBOE EUR, for 9,800
1,200 feet lateral length; Oct-18
BOE/d
1,000
800
Continental Resources; Woodford Condensate; 2,300 MBOE EUR,
for 7,500 feet lateral length; May-18
600
400
200 Roan Resources; Woodford Oil; 10,000 feet lateral length, 2017
Year Type curve; Jul-18
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Month
Source: Drillinginfo Intel Bytes and DocFinder
8 Better, Faster Decisions © 2019 Drillinginfo, Inc. All rights reserved. All brand names and trademarks are the properties of their respective companies.Vintage Type Curves
Comparative Type Curve
IP30 YOY
1,000 Growth%
2013
900
800
2014 -11%
700
Oil and Gas (BOE/d 6:1)
600
2015 61%
500
400 -18%
2016
300
2017 -30%
200
100
2018 17%
0
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49
Month
Source: Drillinginfo Type Curves are for wells in an approximate 70x70 miles square around the marketed acreage
9 Better, Faster Decisions © 2019 Drillinginfo, Inc. All rights reserved. All brand names and trademarks are the properties of their respective companies.Leasing
The marketed acreage lies in the heart of the region with high leasing activity
During 2018, most of the leasing activity was focused towards the northwest and south of the marketed acreage in McClain and Garvin counties
Native Exploration has been leasing very close to the acreage during the year. Other significant lessees include Continental, EOG and Cockerell Energy
Leasing activity in the region post 1-Jan-2018
Source: Drillinginfo Heat map of Leasing Activity in Past 90 days
10 Better, Faster Decisions © 2019 Drillinginfo, Inc. All rights reserved. All brand names and trademarks are the properties of their respective companies.Have A Question? 11 Better, Faster Decisions © 2019 Drillinginfo, Inc. All rights reserved. All brand names and trademarks are the properties of their respective companies.
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