top stories - Oil and Gas Investor

Transcription

VOLUME 28 / ISSUE 23 / June 4, 2014
TOP STORIES
Inside This Week’s Edition
TOP STORIES
Eagle Eye: Sundance Parts With
D-J Basin, Picks Off Eagle Ford......................1
Titanium Exploration, Castlelake
To Hunt Eagle Ford Acreage...........................1
FEATURES
Penn Virginia Sells Gas Assets,
Cruises Out Of Mississippi..............................4
Investor Gives Magnum
Hunter Purchasing Power...............................4
INSIGHT
Utica-Heavy Gulfport Plans
More Acquisitions In Ohio...............................5
Eagle Eye: Sundance Parts With D-J Basin, Picks Off Eagle Ford
Sundance Energy Australia Ltd. (ASX: SEA)
got a little bigger in the Eagle Ford, but only
after sacrificing its Denver-Julesburg (D-J)
Basin assets—and production—on May 26.
Proceeds from the $116 million D-J Basin
sale will be used to pursue other projects, including the Eagle Ford.
Sundance announced it would sell 5,000
acres in Wattenberg and 4,000 acres outside
ON THE MARKET
U.S.
Hunt To Exit E. Texas, N.
Louisiana Through Divestment........................7
June Auction To Offer 1,250
Oil And Gas Assets In 18 States......................9
Redbud To Sell Arkoma
Basin Gas Properties....................................10
PostRock To Divest 32,000 Acres
Of West Virginia Oil, Gas Assets....................10
the field in Twister, Bull Canyon and Silo and
ON THE MARKET QUICK LIST.................... 10
Sundance said it will accelerate develop-
mineral acres each in Dimmit and Maverick
diture reimbursement to Sundance for eight
counties, Texas. It paid $33 million for the
gross (3.1 net) horizontal wells in the Watten-
land and committed to drill four gross wells.
berg Field. Sundance had a mix of operated
In both the Eagle Ford and Wattenberg
and non-operated assets in the D-J Basin.
U.S.
Linn Energy Announces
Permian Trade With ExxonMobil....................13
Mississippian/Woodford, the company’s core
MIDSTREAM
Koch Subsidiary To Acquire
PetroLogistics For $2.1 Billion......................14
to buy Eagle Ford acreage that adds 5,500 net
The selling price includes capital expen-
ment and acquisitions in the Eagle Ford and
SERVICE & SUPPLY
MRC Global Acquires Valve
Distributor In Singapore................................14
Sundance also announced it had agreed
per day (boe/d).
E&P A&D
CANADA
Statoil, PTTEP Divide Canadian
Oil Sands Interests.......................................13
development projects.
production of 567 barrels of oil equivalent
deal the other party was not disclosed.
The Eagle Ford deal adds about 115 gross
(69 net) locations to Sundance’s drilling inven(continued on page 3)
Titanium Exploration, Castlelake To Hunt Eagle Ford Acreage
Two companies used to ferreting out deals
are headed for the Eagle Ford after agreeing
to a joint venture (JV).
Titanium Exploration Partners LLC and
global investment firm Castlelake LP said
A&D DEAL SHEET..................................... 19
May 29 they had paired to pursue non-op-
INDUSTRY NEWS
Loews Weighs Sale Of HighMount
Oil, Gas Business At Loss.............................. 20
erated oil and gas assets in unconventional
resource plays in the United States. The JV’s
initial focus is on the Eagle Ford Shale.
The scope of the venture may expand to
industry since its founding in 2005.
other opportunities over time. The JV will
Titanium, based in Dallas, will act as asset
invest through acquisitions of non-operated
manager in the JV, responsible for finding
working interests, strategic partnerships
Comprehensive coverage of
oil and gas transactions at
com
Darren Barbee
opportunities, negotiating and structuring
with operators and organic leasing.
investments and managing acquired assets.
Castlerock, with offices in Minneapolis
“This joint venture combines the exper-
and London, has $3.6 billion in assets under
tise of Titanium Exploration Partners with
management and focuses on deep value,
the resources of Castlelake and the capital
asset rich opportunities across capital struc-
Editor, A-D Center.com, A&D Watch
tures, industries, and geographies. It has in-
[email protected]
vested more than $600 million in the energy
they manage,” said Chip Simmons, CEO of
Titanium. “Having a strong capital partner
(continued on page 3)
Copyright © 2014. Hart Energy
1
www.a-dcenter.com
2
www.a-dcenter.com
Eagle Eye: Sundance Parts With D-J Basin, Picks Off Eagle Ford...(continued from page 1)
“There is significant upside to reserves
Sundance Eagle Ford Acquisition Highlights
Dimmit County acquisition
9,200 gross (5,500 net) contiguous acres, 60% WI
Maverick County acquisition
18,000 gross (5,500 net) contiguous acres, 30% WI
Option to acquire
40% WI in Dimmit, 20% WI in Maverick
Locations added
115 gross (69 net)
and returns per well because the lease
configuration provides for completed
lateral length over 5,500 feet,” he said.
Sundance said it will likely redeploy
one of its rigs from McMullen County,
tory and about 200 boe/d in production.
core D-J basin project allows the com-
Texas, to the acquired acreage in the
Its overall Eagle Ford position increases
pany to “not only crystallize an attractive
third quarter of 2014.
by roughly 56% to about 19,500 net acres
return on its D-J Basin investment, but
The company does not anticipate up-
covering 196 net drilling locations.
provides a significant opportunity to re-
dating its 2014 calendar year capital ex-
“We are very excited to add a sec-
invest capital into accelerating growth in
penditure or production forecast for the
ond core Eagle Ford area to our devel-
our core projects in the Eagle Ford and
acquisition.
opment inventory,” said Eric McCrady,
Mississippian/Woodford.”
The Eagle Ford deal is expected to
Sundance’s managing director and CEO.
McCrady said that if the Eagle Ford
close in late June or early July. The D-J
“Dimmit County has seen significant ac-
assets are developed using 5,500-foot lat-
Basin transaction is expected to close in
tivity and strong results from some of
erals, well costs could be less than $6.5
July or August.
the leading Eagle Ford operators such as
million per well. Reserves are estimated
Anadarko.”
to be of 350,000 boe of which 55-60% is
McCrady noted the sale of the non-
—Darren Barbee, Hart Energy
expected to be oil.
Titanium Exploration, Castlelake To Hunt Eagle Ford Acreage..(continued from page 1)
like Castlelake will allow us to expedite
so too does the need for capital to facili-
Titanium Exploration Partners is an
the investment and acquisition process
tate these transactions. Castlelake is in a
investment firm focused on the acquisi-
for the benefit of our operating partners,
unique position to meet the needs of all
tion and development of non-operated
sellers of non-operated working interests
parties involved.”
oil and gas assets in unconventional re-
and landowners.”
Castlelake is a global, institutional al-
source plays. Titanium is currently fo-
Castlelake will contribute capital as
ternative investment firm with money
cused on the Eagle Ford Shale but is also
well as its expertise in the energy in-
tied to aviation, commercial and indus-
considering investments in plays such as
dustry to the JV. The firm will also guide
trial business loans, residential land and
the Bakken, Marcellus, Utica and Niobr-
sourcing opportunities and provide stra-
finished lots, non-aviation transportation
ara and the Permian Basin.
tegic and economic direction.
equipment leases and agriculture loans.
Titanium was founded by Simmons,
“The joint venture brings together
The firm also invests in small balance
who previously served as CEO of private
Titanium’s specialized expertise and
commercial real estate such as hotels, se-
equity-backed Titan River Energy. That
our unique approach to investing in il-
nior living and apartments.
company secured $100 million in private
liquid assets where long-term capital is
In October 2012, the firm listed 13 ac-
of significant value,” said Luke Beltnick,
counts with the Securities and Exchange
managing director of Castlelake. “As de-
Commission and regulatory assets under
velopment in the Eagle Ford Shale grows,
management of $4.84 billion.
3
equity capital.
www.a-dcenter.com
FEATURES
Penn Virginia Sells Gas Assets, Cruises Out Of Mississippi
Penn Virginia Corp. (NYSE: PVA) cut ties
day (MMcfe/d) in the first quarter of
to its Mississippi assets as the company
2014, almost 100% natural gas.
zeros in on the Eagle Ford.
After the divestiture, PVA’s 2014 pro-
PVA said June 2 that it entered an
agreement to sell its assets to an undisclosed buyer for gross cash proceeds of
$72.7 million.
duction will decrease by an estimated 1.9
Bcfe.
At the end of 2013, PVA had some
28,200 net acres in three fields in Mis-
Due to the largely HBP status of its
sissippi focused on the horizontal Selma
acreage and the relatively high natural
Chalk. Estimated proved reserves asso-
gas content, PVA had deferred drilling
ciated with the divested properties, as
in Mississippi until natural gas prices
determined by our third party engineers
strengthened.
at year-end 2013, were 85.3 Bcfe, 69% of
The properties to be sold had net
production of an estimated 11.9 million
cubic feet of natural gas equivalent per
which were proved developed and about
100% of which were natural gas.
through acquisitions and leasing in the
Eagle Ford. The company has about 15
years of drilling inventory. Its inventory
will continue to increase with an ongoing
active leasing program.
The Mississippi sale is expected to
PVA has accumulated 86,800 net acres
close in July with an effective
date of April 1. Scotia Wa-
Penn Virginia Eagle Ford Position
Area
Developed
Wells
Remaining Total Well
Locations Locations
Gross
Acreage
Net
Acreage
Acres/
Locations
terous (USA) Inc. served as
Shiner
46
939
985
58,401
46,518
59
technical advisor in connec-
Peach Creek
123
313
436
32,007
16,696
73
tion with the transaction.
Rock Creek/Bozka
22
78
100
6,472
5,084
65
Shallow/Hunt
31
179
210
29,647
18,472
141
Total
222
1,509
1,731
126,527
86,769
73
PVA’s exclusive financial and
Investor Gives Magnum Hunter Purchasing Power
Magnum Hunter Resources Corp. (NYSE:
by divesting noncore assets, most re-
MHR) got a bump in liquidity May 28 that
cently selling Canadian assets in Sas-
will allow it to ramp up drilling in the
katchewan for US$67.5 million. As of
Marcellus and Utica shales and allow it
May, MHR’s total asset sales completed
to acquire more land.
or under contract are $100.7 million. In
In a private offering, MHR sold about
21.4 million shares to Relational Investors LLC at $7 per share for $150 million.
The proceeds from the equity offering will be used for general corporate
purposes, such as adding a drilling rig
to accelerate operations in the Marcellus
and Utica in Ohio and West Virginia. The
company has 200,000 leasehold acres in
those areas.
Some of the capital could also be used
to repay debt.
The private placement of equity will
generate proceeds that increase the company’s financial flexibility, said Gary C.
Evans, chairman of the board and CEO of
Magnum Hunter.
“Combined with ongoing divestitures
of non-core assets, this financing positions us very well to exploit our strategic
lease acreage position in the Marcellus
and Utica Shale plays.”
MHR budgeted $400 million in capital expenditures in 2014, excluding acquisitions.
The company has been raising money
4
2013, the company divested $492 million
in assets to shift its spending to higher
growth properties and increase proved
reserves.
“We are pleased that Relational Investors will now become our largest
shareholder with approximately 15%
ownership of our outstanding shares,”
Evans said. “We look forward to Relational’s continued involvement and support
as both a preeminent oil and gas investor and proponent of long-term value creation for all shareholders.”
www.a-dcenter.com
Ralph V. Whitworth, co-founder and
principal of Relational Investors LLC
and expansion in the highly attractive
nies he covers, MHR has the best expo-
Appalachian Region.”
sure to dry gas in the Utica. About 65%
said that the increased investment in
MHR has about $224.5 million in li-
Magnum Hunter holds attractive oppor-
quidity, including $8.5 million of cash
tunities as MHR extends its growth and
and cash equivalents and about $216
The company has an asset value that
executes long-term strategic plans.
million of borrowing availability, said
exceeds $20 per share and with the right
Gabriele Sorbara, an analyst for Topeka
development plan it could see a buyout.
“This investment reflects our confidence in Magnum’s outstanding man-
Capital Markets.
of its 103,000 net acres are in the dry gas
window.
“We can easily see a takeout of MHR
agement team and their strategic plan,”
“While liquidity is still on the tight
in the low-to-mid teens,” he said. On May
Whitworth said. “The company, led by
side heading into 2015, we believe the
28, the company’s stock was trading at
Gary, has assembled a premier acreage
company’s asset base provides numer-
about $7.87.
position in North America’s most prolific
ous opportunities to improve its balance
shale plays. Our cash infusion will allow
sheet and capitalization,” he said.
the company to accelerate development
Sobrara said that among the compa-
INSIGHT
Utica-Heavy Gulfport Plans More Acquisitions In Ohio
Since the fourth quarter of 2013, Gulf-
biggest uncertainty in the region is Amer-
port Energy Corp. (NASDAQ GS: GPOR)
ican Energy Partners, a new entity that
has been on a tear, ramping up produc-
has been actively acquiring acreage in
tion and buying up additional acreage in
the Utica. American Energy has plans to
what it considers the hottest play in the
ramp its rig count to 12-13 over the next
U.S., the Utica Shale.
two years, from one currently.”
While the company had a shaky first
American Energy is headed by Aubrey
quarter, it continues to forge ahead. The
McClendon, the former Chesapeake CEO,
company has spent about $400 million
who has raised about $3 billion for Utica
since February 2013 to add more than
30,000 net acres in the play, including
the purchase of 8,200 acres from Rhino
Exploration LLC in March 2014.
Gulfport also took on Rhino’s producing wells in Eastern Ohio in the deal for a
gross purchase price of $184 million.
Gulfport is far from finished spending.
In early May, the company said it expects
to spend between $375 million and $425
million in 2014 to acquire additional
acreage in the Utica Shale.
However, the company said on May 8
it was reducing production guidance by
28% and increasing capex by 20%, which
is a “terrible recipe,” said Bill Herbert,
managing director, co-head of securities,
Simmons & Co. International.
“Yes there are some explanations and
the underlying changes may drive longterm value, but scale of the changes will
make people skeptical of excuses,” Herbert said.
Gulfport has bet heavily on the core of
the play and has about 179,000 net acres
under lease. Third-quarter 2013 data
from the Ohio Department of Natural Resources shows Gulfport was among the
best drillers in the state, with eight of the
top 20 well rate results by operators.
James C. West, lead oil services and
drilling analyst with Barclays, said the
Utica could emerge as one of the fastest
growing basins in the U.S. in 2015.
“Gulfport recently added acres to its
lease holdings in the Utica Shale and is
ramping its CAPEX in the Utica by over
20% in 2014 to over $600 million,” West
said. “The company plans to drill roughly
90 gross wells next year, a 50% increase
from the 60 wells in 2013. Perhaps the
operations and acquisitions.
But Gulfport’s work continues unabated, with the company purchasing
interest in service companies and continuing to drill.
From January through May, Gulfport
spudded 14 gross (10 net) wells in the
Utica. The Oklahoma City company’s
2014 capital expenditures are expected
to be at least $634 million, with drilling
of 85 to 95 gross wells.
The company is actively drilling horizontal wells and produced 21,062 barrels
of oil equivalent per day during the first
quarter of 2014. Further development is
expected to spur added reserves and production growth.
The company has accumulated interest in several oilfield service companies
that will support future operations.
5
www.a-dcenter.com
6
www.a-dcenter.com
Utica-Heavy Gulfport Plans More Acquisitions In Ohio..(continued from page 5)
activities for the company in connection
Gulfport Utica Shale Overview
with the development of its Utica acre-
Net proved reserves
32.35 MMboe
Net probable reserves
36.46 MMboe
Acreage (net)
179,000 acres
Focus
Wet gas/retrograde condensate and mature dry gas
windows
Lease terms
Five-year leases extendable with five-year options
Interest
99% interest
Locations
1,125 gross locations
age. On Jan. 28, Blackhawk closed on the
sale of its equity interest in Ohio Gathering Co. LLC and Ohio Condensate Co.
LLC for a purchase price of $190 million.
Gulfport received $84.8 million in net
proceeds from the transaction.
Gulfport also invested in Stingray Logistics LLC, which provides well services.
In the first quarter of 2013, Gulfport
ended March 2014, the company did not
In October 2013, Gulfport and Rice
participated in the formation of Stingray
pay any cash calls related to Stingray
Energy Inc. (NYSE: RICE) entered into a
Energy Services LLC with an initial own-
Pressure.
joint development agreement covering
ership interest of 50%.
In 2012, the company put together several similar investments.
Also in 2012, the company invested in
four townships in the core of the Utica
Stingray Cementing LLC for well cement-
Shale in Belmont County. The agreement
ing services.
makes both parties’ acreage positions
Gulfport invested in Stingray Pressure
Gulfport also backed Blackhawk Mid-
Pumping LLC, which provides well com-
stream LLC, which coordinates gathering,
pletion services. During the three months
compression, processing and marketing
more drillable and provides development and unit visibility, Gulfport said.
ON THE MARKET
U.S.
Hunt To Exit E. Texas, N. Louisiana Through Divestment
Hunt Oil Co. is headed for the door, offer-
Unit wells drilled; and
ing for sale all of its oil and gas properties
• Production from multiple zones in-
and related assets located in East Texas
cluding Cotton Valley, James Lime,
and North Louisiana.
Pettit, Hosston, Haynesville and
Hunt retained RBC Richardson Barr as
exclusive advisor to assist with the trans-
Smackover.
Liquids-rich production
• 50% liquids by revenue; and
action.
Regional exit for Hunt
• Attractive low decline proved developed producing (PDP) package
• Hunt-owned infrastructure creates
• Capital efficient drilling locations
premium price realizations and
and recompletions in both operated
with meaningful low-risk upside
third party revenues.
Proven resource base
• 23 recompletions quantified;
potential;
• 18 million cubic feet equivalent per
• 142 drilling locations quantified; and
day (MMcfe/d) current net produc-
• Horizontal development opportuni-
• High quality, active non-op partners such as XTO Energy Inc. and
Marathon Petroleum Corp. (NYSE:
and non-op fields;
tion, of which 67% is gas;
• Based on a 12-year PDP reserves-toproduction ratio (R/P);
MPC); and
• Hunt infrastructure ownership in
ties.
An online data room will open June 12
with presentations beginning the follow-
• $3.1 million projected June 2014
cash flow;
ing week. Initial proposals are due by July
Cotton Valley and Fairway.
Highly de-risked with abundant well
control
• Free cash flow positive from day
• North Louisiana has more than
• 170 billion cubic feet equivalent
31. For information contact Craig Lande,
(Bcfe) net proved reserves.
Drilling/recompletion opportunities
RBC managing director, at craig.lande@
60,000 well penetrations;
• More than 140 Fairway James Lime
15. The effective date of the sale is June 1
one; and
with the target date for an executed purchase and sale agreement (PSA) on July
7
rbccm.com or 713-585-3335.
www.a-dcenter.com
8
www.a-dcenter.com
June Auction To Offer 1,250 Oil And Gas Assets In 18 States
The Oil & Gas Asset Clearinghouse will
• Operated working interest in Guy-
ward County, Okla. with net cash
conduct a June 11 auction with live floor
mon-Hugoton Field, Cimarron and
flow averaging $17,000 per month
and real-time internet bidding on 1,250 oil
Texas counties, Okla. with net cash
and 194 Mcf/d; and
and gas properties in Texas, Pennsylvania,
Utah, North Dakota and 14 other states.
and 1,022 bbl/d;
• Operated working interest in Perrin North Field, Grayson County,
Significant sellers include: Samson Re-
• Multiple operated and non-oper-
Texas with net cash flow averaging
sources, White Oak Oil & Gas Partners,
ated lots in Kansas with total net
$44,000 per month and 12 bbl/d and
The Blanco Co., Brazos Ltd. Partnership,
cash flow averaging $55,000 per
Linn Energy Holding and Mack Energy Co.
month and 158 bbl/d and 958 Mcf/d;
133 Mcf/d.
Grandhaven Energy LLC
Onsite bidding begins at 10 a.m. at the
• Operated and non-operated lots in
• Non-operated (Bellaire Oil) work-
Sheraton North Houston Hotel located at
Vernon Field, Jackson Parish, La.
ing interest in Malm Field, Banner
15700 JFK Blvd., Houston.
with total net cash flow averaging
County, Neb. with net cash flow av-
Data rooms are open by appointment
$35,000 per month and 2,100 bbl/d;
eraging $100,000 per month and 63
through June 6 at 500 N. Sam Houston
• Non-operated (Chaparral Energy)
Parkway W, suite 150, Houston. Data
working interest in Carthage Field,
packages can be accessed at ogclearing-
Texas County, Okla. with net cash
house.com.
Seller files and records will be avail-
bbl/d.
• Capstone Natural Resources Partners LP
• Operated working interest in Grayburg Jackson Field, Eddy County, N.M.
and 85 bbl/d; and
• Non-operated (Citation Oil & Gas)
with net cash flow averaging $75,000
8 a.m. to 5 p.m. on June 10.
working interest in Buffalo Field,
Offerings include:
Encana Natural Gas
Harding County, S.D. with net cash
per month and 30 bbl/d and 45 Mcf/d.
Crownquest
• Operated working interest in
able at the sale site for examination from
Sugg Ranch Field, Sterling County,
thage Field, Nacogdoches County,
and 26 bbl/d.
Samson Contour Energy E&P LLC
Texas with net cash flow averag-
• Operated working interest in
ing $450,000 per month and 62,821
Downsville Field, Union Parish,
thousand cubic feet per day (Mcf/d).
Samson Resources
La. with net cash flow averaging
186 Mcf/d.
The Blanco Co.
$28,000 per month and 490 Mcf/d
• Non-operated lots in Willow Lake
• Operated working interest in Car-
Texas with net cash flow averaging
and 3 bbl/d.
Samson Lone Star LLC
Field and Scharb Field, Eddy & Lea
ated lots in Wyoming with total
net monthly cash flow averaging
• Operated working interest in Hart-
aging $22,000 per month and produc-
$425,000 per month and 53,000
ley Hugoton Field, Sherman and
tion of 280 bbl/d and 588 Mcf/d; and
Mcf/d and 52 barrels per day (bbl/d);
Moore counties, Texas with net cash
• Non-operated working interest in
Roll Southwest Field, Roger Mills
ated lots in Montana with total
County, N.M. with net cash flow aver-
and 484 Mcf/d of production.
BXP Operating LLC
$110,000 per month and 289 bbl/d
• Operated interest in Villarreal Field,
and 206 Mcf/d;
eraging $26,000 per month and 234
Webb County, Texas with net cash
bbl/d and 2,353 Mcf/d.
Safari Production Co.
• Operated working interest in Donna
Field, Hidalgo County, Texas with
and 495 Mcf/d.
Mack Energy
$42,000 per month and 1,700 Mcf/d
• Multiple operated lots in Grady,
ated lots in Arkansas with total
County, Okla. with net cash flow av-
net cash flow averaging $36,000 per
Latimer and Love counties, Okla.
month and 334 Mcf/d and 5 bbl/d.
Southern Resource Co.
• Non-operated lot in Buffalo Field,
with total net cash flow averaging
• Operated working interest in Sunset
Harding County, S.D. with net
$165,000 per month and 43 bbl/d
Field, Live Oak County, Texas with
monthly cash flow averaging $26,000
and 572 Mcf/d;
net cash flow averaging $32,000 per
and 6 bbl/d;
per month and 26 bbl/d and 2 Mcf/d;
• Operated working interest in Wood-
9
www.a-dcenter.com
month and 195 Mcf/d and 8 bbl/d.
Milton J. Bebsack Estate
Franklin County, Miss. with net
producing leasehold in Northwest
• Royalty interest in McElmo Dome
Redstone Field, Sheridan and Dan-
Field, Montezuma and Dolores
counties, Colo. with net cash flow
month and 19 bbl/d.
Linn Energy
iels counties, Mont.
White Oak Energy
averaging $32,000 per month and
• Operated interest in Wildcat Field,
• Multiple operated interest in En-
Sheridan County, Mont. with net
cinitas Field, Brooks County, Texas
with net cash flow averaging
1,122,049 gross Mcf/d.
Magnolia Oil & Gas LLC, Et al.
• Operated interest in Mantua Field,
Adams County, Miss. with net cash
month and 11 bbl/d.
Sagebrush Resources LLC
• 33,895 gross and 20,887 net non-
and 22 bbl/d.
Smith Operating & Management Co.
producing leasehold in Red Rock
• Operated interest in Luxor Field,
• 22,884 gross and 14,152 net non-
2,107 Mcf/d.
Field, Bottineau County, N.D.; and
Redbud To Sell Arkoma Basin Gas Properties
Redbud Exploration & Production Inc. re-
(MMcfe/d), 99% of which is gas. Projected
cludes a large inventory of Hartshorne coal
tained E-Spectrum Advisors LLC to sell its
net operating cash flow for April is some
drilling locations as well as an active Jeffer-
Arkoma Basin gas properties in Haskell,
$711,000. The package includes 78,594
son Formation recompletion program.
Latimer, LeFlore, McIntosh and Pittsburg
gross/70,489 net acres, all of which is HBP.
The online data room opened May 27
counties, Okla.
The package includes more than 135 miles
and physical data rooms will be available
of gathering systems which transport both
June 2. Bids are due July 1. Contact Lindsay
Redbud and third-party gas.
Sherrer with E-Spectrum Advisors LLC at
The properties are 100% operated and
are long lived, shallow decline with little
water production.
Net proved reserves are 82.1 billion
[email protected] or
Estimated production for April is 9.7
cubic feet equivalent (Bcfe) with a PV-10
214-987-6109 to request a confidentiality
million cubic feet equivalent per day
value of $52.3 million. The package in-
agreement.
PostRock To Divest 32,000 Acres Of West Virginia Oil, Gas Assets
PostRock Energy Corp. (NASDAQ: PSTR)
PV-10 value, based upon a third-party engi-
in CEP, will allow us to redeploy capital to
announced May 28 it engaged Robert W.
neering analysis, of $17.3 million. In 2013,
higher return projects, primarily focused
Baird & Co. to pursue the sale of its West
the properties produced a net 1.5 million
on oil development in Central Oklahoma,”
Virginia oil and gas assets.
cubic feet (MMcf) of gas and 41 barrels of
Terry W. Carter, PostRock CEO, said in a
oil per day.
May 28 release.
The package includes some 32,000 acres
of leases and 407 gross wells. At Dec. 31,
“Selling our Appalachia assets, along
2013, the assets’ proved reserves had a
with the benefits of exiting our position
ON THE MARKET QUICK LIST
Location
Basin/Play
Seller
Agent
Bid Due Date
Michigan
Wyoming
Oklahoma
Texas
California
North Dakota
Midland County
Big Horn Basin
Mississippian Play
Permian Basin
Los Angeles & Orange Counties
Bakken Shale
EnergyNet
EnergyNet
EnergyNet
EnergyNet
EnergyNet
EnergyNet
6/4/14
6/4/14
6/4/14
6/4/14
6/4/14
6/4/14
Texas
Permian Basin
EnergyNet
6/4/14
Texas
AR; TX
Canada
KS; NM; OK; TX
Canada
Barnett Shale
Various
Souris Flat, Saskatchewan
Various
Jarrow, Alberta
Apex Natural Resources LLC
Bill Barrett Corp.
Mark L. Shidler Inc.
NOG Northern Oil & Gas 02 LP
PDS Services Inc.
XTO Energy Inc.
Zenith Energy LLC; Newkumet Exploration
Inc.
Clearfork Resources LLC
Donald W. Scheh
Kingsland Energy Corp.
TAS Royalty Co.
Zargon Oil & Gas Ltd.
Riviera-Ensley Energy Advisors
EnergyNet
Sayer Energy Advisors
EnergyNet
6/5/14
6/5/14
6/5/14
6/5/14
6/5/14
North America
10
www.a-dcenter.com
Wyoming
Texas
New Mexico
Texas
Texas
Nebraska
Montana
Oklahoma
Oklahoma
Texas
Mississippi
Colorado
Texas
Montana
North Dakota
Louisiana
Texas
Arkansas
Kansas
Montana
Oklahoma
Oklahoma
South Dakota
Louisiana
Wyoming
Mississippi
Texas
New Mexico
Oklahoma
Texas
Oklahoma
Texas
Texas
Texas
Texas
Denver-Julesburg Basin
Webb County
Eddy County
Sterling County
Nacogdoches County
Banner County
Sheridan County
Latimer & Love Counties
Woodward County
Grayson County
Adams County
Montezuma & Dolores Counties
Hidalgo County
Sheridan & Daniels Counties
Bottineau County
Union Parish
Sherman & Moore Counties
Various
Various
Various
Cimarron & Texas Counties
Texas County
Harding County
Jackson Parish
Various
Franklin County
Live Oak County
Eddy & Lea Counties
Roger Mills County
Brooks County
Woodford Shale
Permian Basin
Eagle Ford Shale
Permian Basin
Brazoria & Matagorda Counties
Texas
Barnett Oil Combo Play
North Dakota
Oklahoma
Texas
California
Canada
Canada
Canada
Oklahoma
Oklahoma
LA; TX
Wyoming
Texas
MT; ND
West Virginia
Bakken/Three Forks
Osage County
Permian Basin
Kern County
Alberta
Saskatchewan
Saskatchewan
Woodford Shale
Arkoma Basin
Various
Powder River Basin
Eagle Ford Shale
Bakken/Three Forks
Appalachia
Barnett/Atoka Wash/Granite Wash/
Cotton Valley
Delaware Basin
Tuscaloosa Marine Shale
Eagle Ford Shale
AL; LA; OK; TX
Texas
Louisiana
Texas
Thunderbird Resources LP
BXP Operating LLC
Capstone Natural Resources Partners LP
Crownquest
Encana Natural Gas
Grandhaven Energy LLC
Linn Energy
Mack Energy
Mack Energy
Mack Energy
Magnolia Oil & Gas LLC
Milton J. Bebsack Estate
Safari Production Co.
Samson Contour Energy E&P LLC
Samson Lone Star LLC
Samson Resources
Samson Resources
Samson Resources
Samson Resources
Samson Resources
Samson Resources
Samson Resources
Samson Resources
Smith Operating & Management Co.
Southern Resource Co.
The Blanco Co.
The Blanco Co.
White Oak Energy
Drake Weeks
BXP Partners I LP
ZO Energy Corp.
EnerVest Energy Institutional Fund XII-A LP
OGJT Holdings 2010 LLC
SPICE Inc.; Paris Oil & Gas Corp.; Combo
Gas Gathering LLC
Ascension Oil & Gas LLC
Hybrid Petroleum LLC
NOG Northern Oil & Gas 02 LP
West Coast Partners LLC
Alvarez & Marsal Canada Inc.
Titan West Resources Inc.
FTI Consulting Canada Inc.
Drake Weeks
Redbud Exploration & Production Inc.
Hunt Oil Co.
Bill Barrett Corp.
Double Eagle Development
EnerVest Ltd.
PostRock Energy Corp.
The Oil & Gas Asset Clearinghouse LLC
EnergyNet
EnergyNet
EnergyNet
EnergyNet
EnergyNet
6/10/14
6/11/14
6/11/14
6/11/14
6/11/14
6/11/14
6/11/14
6/11/14
6/11/14
6/11/14
6/11/14
6/11/14
6/11/14
6/11/14
6/11/14
6/11/14
6/11/14
6/11/14
6/11/14
6/11/14
6/11/14
6/11/14
6/11/14
6/11/14
6/11/14
6/11/14
6/11/14
6/11/14
6/11/14
6/11/14
6/12/14
6/12/14
6/12/14
6/17/14
6/17/14
Macquarie Tristone
6/17/14
EnergyNet
EnergyNet
EnergyNet
EnergyNet
EnergyNet
E-Spectrum Advisors LLC
RBC Richardson Barr
BMO Capital Markets
PLS Inc.
BMO Capital Markets
Robert W. Baird Co.
6/18/14
6/18/14
6/18/14
6/18/14
6/19/14
6/19/14
6/26/14
7/1/14
7/1/14
7/15/14
N/A
N/A
N/A
N/A
RedBird Royalties
PLS Inc.
N/A
Sterling Pecos Properties LP
Undisclosed
Undisclosed
PLS Inc.
Amelia Resources LLC
PLS Inc.
N/A
N/A
N/A
For additional On The Market properties, including international offerings, please see A-Dcenter.com website.
11
www.a-dcenter.com
12
www.a-dcenter.com
E&P A&D
U.S.
Linn Energy Announces Permian Trade With ExxonMobil
Linn Energy LLC (NASDAQ: LINE) and
LinnCo LLC (NASDAQ: LNCO) announced
May 21 that it doubled its Kansas assets
through a trade of land miles away with
ExxonMobil Corp. (NYSE: XOM).
Linn signed a definitive agreement to
trade a portion of its Permian Basin properties to ExxonMobil and its wholly owned
subsidiary XTO Energy Inc. for operating
interests in the Hugoton Basin.
Linn will receive a portion of ExxonMobil’s interest in its Hugoton Field, which
is currently producing about 85 million
cubic feet equivalent per day (MMcfe/d), of
which 80% is natural gas and 20% is NGLs,
with a shallow base decline of some 6%.
Total reserves are estimated to be 700 billion cubic feet equivalent (Bcfe), of which
80% is natural gas and is 78% proved developed producing (PDP). The field is comprised of more than 500,000 net acres and
has some 2,300 operated wells. Linn has
identified more than 400 future drilling locations, doubling the company’s inventory
in the Hugoton Field.
In exchange, ExxonMobil will receive
about 25,000 net acres in the Midland
Basin, which are located primarily in Midland, Martin, Upton and Glasscock coun-
ties, Texas. ExxonMobil will obtain an
tive for horizontal Wolfcamp drilling,”
estimated 2 thousand barrels of oil equiva-
Mark E. Ellis, Linn chairman, president
lent per day (Mboe/d) of current produc-
and CEO, said in a May 21 press release.
tion, and LINN will retain about 3 Mboe/d
“We continue to see strong interest in the
of production from the aforementioned
market for a trade or sale of these remain-
acreage. Additionally, ExxonMobil will re-
ing assets and believe there is significant
ceive some 1,000 acres in Lea County, N.M.
additional value for our unitholders.”
“Following the closing of this trans-
The transaction is expected to close in
action with ExxonMobil, Linn will have
the third quarter of 2014 with an effective
remaining production of approximately
date of June 1.
15 MBoe/d and approximately 30,000 net
acres in the Midland Basin that is prospec-
CANADA
Statoil, PTTEP Divide Canadian Oil Sands Interests
Statoil ASA and PTT Exploration and
continues as operator of the Leismer
The Leismer project is the first phase
Production Public Co. Ltd. (PTTEP) com-
and Corner development projects with
of the SAGD (steam-assisted gravity
pleted the agreement to divide their re-
PTTEP owning and operating 100% of
drainage) full field development of KKD.
spective interests in the Kai Kos Dehseh
the Thornbury, Hangingstone and South
Leismer is currently in production and
(KKD) oil sands project in northeast Al-
Leismer areas.
has an operating capacity of 20,000 bar-
berta, Canada, the company announced
May 28.
Statoil, based in Stavanger, Norway,
rels per day. A final investment decision
entered KKD through the acquisition of
for the Corner project was initially sched-
Statoil paid $200 million plus a work-
North American Oil Sands Corp. in 2007,
uled to be made in the first part of 2014.
ing capital adjustment amount of $219.6
and in 2011 PTTEP, of Bangkok, Thailand,
The parties have agreed to postpone this
million to PTTEP.
farmed into a 40% interest in KKD, with
until the closing of the transaction.
At closing, Statoil now owns 100% and
Statoil remaining as operator.
13
www.a-dcenter.com
SERVICE & SUPPLY
MRC Global Acquires Valve Distributor In Singapore
MRC Global Inc. (NYSE: MRC) announced
neering.
our geographic footprint and existing
May 29 that MRC Global’s Singapore sub-
“This acquisition complements our
sidiary, MRC Transmark Pte. Ltd., has ac-
current MRC Transmark valve business
quired MSD Engineering (Pte) Ltd.
in Southeast Asia and is consistent with
Headquartered in Houston, MRC
valve brands and product line offerings
in Southeast Asia.”
Located in Singapore, MSD Engineer-
our announced strategy to grow our
Global is the largest global distributor
ing is a major distributor and regional
valve and valve automation business and
of pipe, valves, and fittings and related
service provider of valve and valve auto-
to expand geographically into Southeast
products and services to the energy in-
mation solutions to customers in Singa-
Asia and in the other key energy regions
dustry, based on sales, and supplies these
pore, Brunei, China, Malaysia, Indonesia,
around the world,” Andrew Lane, MRC
products and services across each of the
Thailand, Vietnam and Taiwan. MSD En-
Global chairman, president and CEO,
upstream, midstream and downstream
gineering had 2013 sales of $26 million,
said in a May 29 press release. “The addi-
sectors.
and will now operate as MRC MSD Engi-
tion of MRC MSD Engineering broadens
MIDSTREAM
Koch Subsidiary To Acquire PetroLogistics For $2.1 Billion
PetroLogistics LP (NYSE: PDH) an-
all of the membership interests in its gen-
visor and Jones Day is legal advisor to
nounced May 28 it agreed to be acquired
eral partner, PetroLogistics GP LLC, for
Flint Hills. Morgan Stanley & Co. LLC and
by Flint Hills Resources LLC, a subsidiary
no additional consideration.
Evercore Partners are financial advi-
of Koch Industries Inc., for $2.1 billion including debt.
PetroLogistics is a master limited
sors to PetroLogistics and have delivered
partnership with headquarters located
fairness opinions, and Weil, Gotshal &
Under the terms of the acquisition
in Houston. It is a major producer of pro-
Manges LLP and Vinson & Elkins LLP are
agreement, Flint Hills will acquire all
pylene with operations in the vicinity of
legal advisors to PetroLogistics.
of PetroLogistics’ outstanding common
the Houston Ship Channel.
The closing of the transaction is ex-
units for $14 per common unit in cash,
“PetroLogistics built this facility from
except for those common units owned by
the ground up. It is a world-class opera-
Lindsay Goldberg LLC, York Capital Man-
tion,” Brad Razook, Flint Hills president
Based in The Woodlands, Texas, Flint
agement, PetroLogistics’ executive chair-
and CEO, said in a May 28 release. “Its
Hills is a leading refining, chemicals and
man and its president and CEO, which
capabilities are well aligned with our ex-
biofuels company with operations pri-
will be acquired for $12 per common
isting chemical and refining business.”
marily in Texas and the Midwest.
unit in cash. Flint Hills will also acquire
pected to occur before the end of the
year.
Goldman Sachs & Co. is financial ad-
14
www.a-dcenter.com
15
www.a-dcenter.com
16
www.a-dcenter.com
17
www.a-dcenter.com
18
www.a-dcenter.com
A&D DEAL SHEET
Sector
Date
Buyer
Announced
Seller
Value ($MM)
Location of
assets
Comments
ExxonMobil Corp.; XTO
Energy Inc.
N/A
KS; TX
To acquire operating interest in the Hugoton Basin
producing about 85 Mmcfe/d (80% gas, 20% NGLs)
in exchange for 25,000 net acres in the Midland
Basin.
E&P
5/21/14
Linn Energy LLC;
LinnCo LLC
E&P
5/26/14
Magnum Energy Inc.
Undisclosed
N/A
Canada
To buy operated, 100% WI in Jenner, Alberta
property currently producing 58 boe/d.
E&P
5/26/14
Sundance Energy
Australia Ltd.
Undisclosed
33.0
TX
To purchase Eagle Ford acreage adding 5,500 net
mineral aces in each Dimmit and Maverick counties
and 115 gross (69 net) drilling locations.
E&P
5/26/14
Undislosed
Sundance Energy
Australia Ltd.
116.0
CO; WY
To buy D-J Basin assets comprised of 5,000 acres
in the Wattenberg Field and 4,000 acres outside
with production of 567 boe/d.
E&P
5/27/14
Spartan Energy Corp.
Lightstream Resources
Ltd.
90.4
Canada
To acquire SE Saskatchewan light oil assets
currently producing 1,000 boe/d.
Down
5/28/14
Flint Hills Resources LLC;
PetroLogistics LP
Koch Industries Inc.
2,100.0
TX
To purchase Houston-based MLP focused on producing
propylene with operations in the Houston Ship Channel.
S&S
5/29/14
MRC Global Inc.; MRC
Transmark Pte. Ltd.
MSD Engineering (Pte) Ltd. N/A
Singapore
Acquired Singapore-based distributor and regional
service provider of valve and valve automation
solutions.
Canada
Acquired 100% of Leismer and Corner oil sands
projects in Alberta in exchange for 100% operated
interest in Thornbury, Hangingstone and S. Leismer
areas.
E&P
5/29/14
Statoil ASA
PTT Exploration and
419.6
Production Public Co. Ltd.
S&S
5/29/14
Superior Drilling
Products Inc.
Hard Rock Solutions LLC
12.5
USA
Purchased CO-based service company focused on
unique reaming assembly technology.
E&P
5/29/14
Titanium Exploration
Partners LLC
Castlelake LP
N/A
TX
Formed JV to pursue non-op unconventional
assets in the Eagle Ford Shale through acquisition
of WI, partnerships and organic leasing.
E&P
6/2/14
Undisclosed
Penn Virginia Corp.
72.7
MS
To buy 28,200 net acres in three fields focused on
the horizontal Selma Chalk with net production of
about 11.9 MMcfe/d in 1Q14 (100% gas).
19
www.a-dcenter.com
INDUSTRY NEWS
Loews Weighs Sale Of HighMount Oil, Gas Business At Loss
Loews Corp., the holding company run
by New York’s Tisch family, is weighing a
divestiture of HighMount Exploration &
Production LLC seven years after it purchased the business in a bet on natural
gas prices.
Loews is considering alternatives for
HighMount, “including a potential sale of
the business,” according to a statement
on May 23, and “may incur a loss as a result of this process.”
Natural gas surged the year after Loews
purchased HighMount in 2007 for about $4
billion. Since then, new drilling technologies have boosted supply and driven down
prices. U.S. output from shale formations
increased by more than 50-fold from 1990
ergy Corp. (NYSE: CHK). Vice President
to 2013, according to the Energy Informa-
Steve Turk aboard as COO.
shore oil drilling contractor.
Buffett, Bridge
tion Administration (EIA).
Drilling Rights
Tisch joins investors including War-
shift to oil exploration in recent years.
Drilling rights span 1.1 million acres of
ren Buffett, the billionaire chairman of
The company posted a loss of $20 mil-
Texas and Oklahoma that includes parts
Berkshire Hathaway Inc. (NYSE: BRK-A),
lion in the three months ended March
of the Wolfcamp and Woodford shale
who have been caught off-guard by the
31, after an unprofitable 2013 and 2012.
layers that are attracting interest from
revolution in drilling technology. While
Loews said in its first-quarter report that
international energy companies includ-
natural gas prices have rebounded in the
HighMount’s efforts to drill for oil still
ing ExxonMobil Corp. (NYSE: XOM), the
last year to more than $4 per million Brit-
hadn’t yielded sufficient quantities.
world’s largest oil producer by market
ish thermal units, they’re still less than a
The explorer’s effort to pivot has been
value. In addition to its drilling leases,
third of their 2008 peak.
frustrated as deeper-pocketed rivals in-
HighMount owns about 3,200 miles of gas
cluding Chevron Corp. (NYSE: CVX) and
and oil pipelines.
As a result, HighMount has sought to
Buffett, who played bridge with
Tisch’s late father Laurence, wrote down
Apache Corp. (NYSE: APA) expanded
Barclays Plc and RBC Richardson Barr,
a $2 billion bond investment in Energy
their holdings in crude-rich geologic for-
a division of RBC Capital Markets, are
Future Holdings Corp. The Texas power
mations such as the Permian Basin in
leading the review, according to Mary
company declared bankruptcy this year
Texas and New Mexico, driving up acqui-
Skafidas, a spokeswoman for Loews.
after the decline in natural gas prices
sition costs for the entire industry.
Owning HighMount has been a costly
made its power plants less competitive.
HighMount had total assets of $1.1
episode for CEO James Tisch, who took
Buffett has called the wager a “major un-
billion, excluding deferred tax assets,
over Loews in 1998 and has reshaped
forced error.”
at the end of March, Loews said today.
the business his father and uncle built.
Loews rose 0.5% to $43.16 at 4 p.m.
Long-term debt and other liabilities were
In 2008, he sold watchmaker Bulova
on May 23 in New York. The company
about $592 million.
Corp. and spun off cigarette maker Loril-
has fallen 11% this year, compared with
HighMount is led by Steve Hinchman,
lard Inc. Loews operations today include
the 2.8% gain in the Standard & Poor’s
who formerly was an executive vice pres-
a chain of luxury hotels and majority
500 Index.
ident at Marathon Oil Corp. (NYSE: MRO).
stakes in commercial insurer CNA Finan-
In August, he brought ex-Chesapeake En-
cial Corp., a pipeline business and an off-
20
—Bloomberg
www.a-dcenter.com
21
www.a-dcenter.com
Contact Information:
DARREN BARBEE Editor
A&D Watch Weekly is published weekly by Hart Energy and is included with a premium subscription to A-
[email protected]
Dcenter.com for $1,297 per year. Individual newsletter subscriptions are $747 per year.
Copyright 2014. All rights reserved. Reproduction of this newsletter, in whole or in part, without prior written
consent of Hart Energy is prohibited. Federal copyright law prohibits unauthorized reproduction by any means
and imposes fines up to $100,000 for violations. Permission to photocopy for internal or personal use is
granted by Hart Energy provided that the appropriate fee is paid directly to Copyright Clearance Center, 222
CONTRIBUTING EDITORS
Nissa Darbonne, Caroline Evans, Leslie Haines, Susan Klann, Mike Madere, Richard Mason,
Emily Moser, Frank Nieto, Chris Sheehan, Steve Toon, Scott Weeden, Peggy
Williams
EDITORIAL ADVISORS
Thurmon Andress, Breitburn Energy Co. LP; Doug Brooks, Aurora Oil & Gas Ltd.; Doug
Krenek, Chalker Energy Partners; Steve Herod, Halcon Resources Corp.; Doug Jacobson,
Chesapeake Energy Corp.; Ann Hallam, PEC Minerals; Alan L. Smith, Quantum Resources LP;
Leah D. Smith, Hess Corp.; George Solich, FourPoint Energy LLC; John Walker,
EnerVest Ltd.
Rosewood Drive, Danvers, MA 01923. Phone: 978-750-8400; Fax 978-646-8600; E-mail: [email protected].
ORDER TODAY!
Call: 1-212-608-9078
Fax: 1-212-608-9357
1616 S. Voss, Suite 1000 • Houston TX 77057-2627 • USA
www.hartenergy.com | www.a-dcenter.com
22
www.a-dcenter.com

top stories - Oil and Gas Investor

Transcription

Similar documents

Firehouse hosts Great Big Home Show

stockmens insurance agency llc

be in your new home before the new year!

the eLeaP LMS brochure.

a PDF of this press release

WELCOME TO CAESARS PALACE

Owner Owner Address

Paco MonDragon

Naturally Playful™ Naturally Playful™ Teeter Totter

perf certified SOPORCEL INACOPIA 2015