Indianapolis-based CountryMark Cooperative Holding Corp. said Friday morning that it has agreed to pay $125 million to purchase a portion of the oil and natural gas operations of Continental Resources Inc. in Oklahoma City.
Most of operations are in the Illinois Basin, which encompasses most of southern Indiana and Illinois, as well as western Kentucky.
The purchase will give CountryMark access to wells that produce an average of 1,100 barrels of equivalent crude oil per day, the company said.
CountryMark also will acquire from Continental crude oil and natural gas properties in Michigan, Mississippi and Kansas.
Overall, the acquisition will give CountryMark access to 121,000 acres across six states.
“This purchase brings to our company established production with upside potential for continued development and exploration,” CountryMark CEO Charlie Smith said in a prepared statement. “Integrating this well-run oil production business into our operation is a great opportunity for our company to secure feedstock for our refinery, while providing a good economic return for our farmer owners.”
The transaction is expected to close before the end of the year.
Founded in 1919 as the Indiana Farm Bureau Cooperative Association, CountryMark’s original mission was to supply fuel and lubricants exclusively to the farmers who founded the cooperative.
More than 100 CountryMark branded fueling stations operate in Indiana, Illinois, Michigan, Ohio and Kentucky.