EBCO closed the sale of Jolly No. 1 and Fuchs No. 1 salt-water disposal well located in Pottawatomie County, Oklahoma for a price of $270,000. The seller of the lease was DRG Energy, Inc. based in Norman, OK and the buyer was SNR Central Oklahoma Operating, LLC "SNR". SNR is the operating branch for Siena Natural Resources, LLC, a company that was founded by John C. "Jack" McClendon, its CEO, son of the late Aubrey McClendon who was one of the original founders of Chesapeake Energy Corporation and an Oklahoma City philanthropist.
Philip Smart, a partner and third generation owner of EBCO, served as the agent in facilitating this transaction. Mr. Smart said that Siena Natural Resources was looking for properties that offset their other acquisitions in Pottawatomie County. He stated, "I believe Siena purchased this lease not only for the increased production rate of the Jolly well but for viability of the Fuchs salt-water disposal well. The disposal well has the capacity to take on water from Siena leases other than just the Jolly number one."
The Jolly No. 1 was originally drilled by EXXON Corporation in August of 1988 and completed in the Simpson formation. Initial production was 291 barrels of oil per day and 295 barrels of water per day. DRG Energy, Inc. and its partners purchased the well in April of 2010.
[Note: EBCO is an Oklahoma-based marketing company that sells oil and gas properties, minerals, and leases listed at its website, ebcoauctions.com]