|By PR Newswire||
|July 30, 2014 08:23 PM EDT||
OKLAHOMA CITY, July 30, 2014 /PRNewswire/ -- RKI Exploration & Production, LLC ("RKI", or the "Company") announced today that it has entered into an Exchange Agreement with Chesapeake Energy Corporation ("CHK"), for properties located in the Powder River Basin of eastern Wyoming. Under the agreement RKI will receive from CHK $450 million in cash plus 136,000 net acres, including ownership interests in 68 RKI operated wells, in exchange for 204,000 net acres, including ownership interests in 191 CHK operated wells. Closing is expected in August 2014, subject to third party consent.
RKI Founder and Chief Executive Officer, Ronnie Irani, commented, "This is a great transaction for both companies and allows each of us to consolidate our operated positions within the Powder River Basin. This basin is rapidly becoming one of the premier emerging oil basins in North America and RKI is currently the most active operator with four horizontal rigs running. We will continue to be one of the largest acreage holders in the basin with over 355,000 net acres."
RKI was founded in 2005 with a primary focus on the Powder River Basin and the Permian Basin. The Company has a substantial development program underway with 10 rigs currently operating across 525,000 total net acres. RKI has close to doubled its net production over the last 12 months to a current average rate in excess of 24,000 Boe/d (over 70% oil and natural gas liquids). The Company currently has interests in more than 1,700 wells, 700 of which are operated by RKI. RKI is one of Oklahoma City's fastest growing employers with more than 145 employees currently.
RKI Exploration & Production, LLC is a leading private exploration and production company headquartered in Oklahoma City, OK, engaged in the acquisition, development and exploration of oil and natural gas primarily in the Permian Basin in west Texas and southeast New Mexico and the Powder River Basin in eastern Wyoming.
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SOURCE RKI Exploration & Production, LLC