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J-W Acquires Louisiana Properties From BHP Billiton

A subsidiary of J-W Energy Co., a privately-held exploration and production (E&P) company based in Dallas, said it has acquired oil and natural gas properties in northern Louisiana from Australia's BHP Billiton Ltd., a move that will increase its production totals and proven reserves.

J-W Operating Co. said the acquired properties are in the Elm Grove and Caspiana fields. The deal with BHP also includes an interest in approximately 1,200 wellbores and associated gathering lines and compressor stations, and about 700 active wells targeting the Cotton Valley formation, a conventional oil and gas field.

Financial terms were not disclosed. J-W said the agreement does not include any of BHP's unconventional assets in the Haynesville Shale.

"This acquisition will fit perfectly into our existing portfolio in the Elm Grove and Caspiana fields and will increase our holdings by over 200 Bcf in proven reserves," J-W Operating Co. President Tony Meyer said. "Our evaluation suggests the potential for horizontal drilling opportunities as well as increased value through rework of the existing infrastructure."

Elm Grove is an oil and gas field located in Bossier Parish, LA, while Caspiana is a gas field in Caddo Parish, LA.

Last July, BHP said its petroleum production had increased 4% to a record 246 million boe during fiscal year (FY) 2014, which ended on June 30 (see Shale Daily,July 23). But overall natural gas production had fallen 4% to 839.3 Bcf, in part due to lower production in the Haynesville and Fayetteville shales.

BHP spent $600 million on capital expenditures (capex) in the Haynesville and Fayetteville shales in FY2014, down one-third from the $900 million it spent on capex in those areas in FY2013.

According to J-W's website, the company is one of the largest privately-held companies in the oil and gas industry, with activities focused primarily on the upstream, midstream and energy services. J-W has more than 60 field offices in gas-producing basins across the country. The energy services division includes the largest privately-owned compression fleet in the U.S.

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