TULSA, Okla., April 19, 2018 /PRNewswire/ — Canyon Creek Energy – Arkoma, LLC (“CCEA”) announced today that it has entered into a Joint Development Agreement (“JDA”) with Pivotal Petroleum Partners II, LP (“Pivotal”) to jointly fund the development of wells on CCEA’s acreage in Atoka, Coal, Hughes and Pittsburg Counties, Oklahoma, targeting the stacked pay formations in the expanding Arkoma STACK play.

CCEA and Pivotal plan to drill 18 wells in 2018 targeting the Woodford shale and Mayes shale in various locations throughout the Arkoma Basin of Southeastern Oklahoma.  Pivotal will fund 75% of CCEA’s working interest in all wells covered by the JDA.  Once Pivotal achieves a preferred return, the majority of the wellbore working interest and net revenue interest will revert back to CCEA.  This new partnership will accelerate CCEA’s drilling activity across the company’s 100,000 gross acre operated leasehold position.

CCEA President & CEO Luke Essman commented, “We are excited to partner with Pivotal to continue delivering competitive investment returns within our Arkoma STACK acreage.  Their investment signals the industry’s renewed interest in developing the Arkoma’s world class rock.”

“We are extremely excited to have the opportunity to partner with CCEA to develop its Arkoma STACK leasehold position,” said Billy DeArman, Principal at Tailwater Capital. “The CCEA partnership allows Pivotal to deploy capital into wells with compelling rates of return alongside a highly respected operator in the basin.”

Kirkland & Ellis, LLP acted as legal advisor for CCEA.  The Kirkland team was led by corporate partners Rahul Vashi and Shubi Arora and associate Lindsey Jaquillard, and tax partner Mark Dundon and associate Joe Tobias.

Thompson & Knight, LLP (“T&K”) acted as legal advisor for Pivotal.  The T&K team was led by oil and gas partner Robert Dougherty and associate Kelli Sims, and tax partner Brandon Bloom and associate Jana Wight.