Oklahoma-based Continental Resources sold off a large chunk of its holdings in the Anadarko Woodford shale play Monday to South Korea’s SK E&S for $360 million.
SK E&S will acquire a 49.9 percent interest in 44,000 net acres located in the Northwest Cana area of the Anadarko Woodford play.
The acres are primarily in Blaine and Dewey counties in Oklahoma.
The deal also includes interests in 37 producing wells.
Continental received $90 million at closing.
SK will pay an additional $270 million to carry 50 percent of Continental’s remaining share of future drilling and completion costs.
The sale will not change Continental’s 2014 and 2015 capital expenditures, its production mix of crude oil and natural gas or its overall production targets.
The two companies will also form a joint venture to develop a “significant portion” of Continental’s Northwest Cana Woodford natural gas assets.
Under the joint venture agreement Continental has five years to utilize SK’s agreement to cover 50 percent of its costs at the site.
The agreement also establishes an area of mutual interest (AMI) in Northwest Cana and certain incentives for the joint venture to expand its leasehold position.
Continental will be the operator for all current and future wells that are operated by the joint venture.
The company plans to start drilling in the AMI during November 2014 and expects to have four operated rigs running by the end of the year.
SK E&S is a subsidiary of South Korea’s SK Group.
“We are excited to establish this joint venture with such an established and highly regarded major international energy company,” Continental’s chairman and CEO Harold G. Hamm said.