Privately held Tanos Energy of Tyler, TX, recently acquired East Texas and North Louisiana assets from ConocoPhillips and Fidelity Exploration and Production Co. Tanos also has received an additional $500 million in capital commitment from Quantum Energy Partners.
The assets, which have been integrated with existing Tanos operations, include about 140,000 net acres and net production of about 95 MMcfe/d from about 1,400 operated and 2,800 non-operated wells. "The acquisitions provide a large-scale position with a solid, diverse production base and horizontal and vertical development upside within the Cotton Valley, Hosston and Bossier formations," the company said. "Tanos is currently high-grading operations, reducing costs, and running one drilling rig and an active workover program given the strong economics of the play even in the current price environment.
"Tanos is well hedged over the next four years and will consider continuing to expand its development program next year based on the price environment and program results."
Tanos's North Louisiana business unit contains 358 operated wells and 287 non-operated wells. Most are within the Ada, Sailes and West Bryceland field complex. Tanos also operates wells in Cotton Valley, Haynesville and Ivan fields. Production is primarily from the Hosston and Gray Sand formations. Total gross daily operated production is over 32 MMcfe/d.
The East Texas business unit contains 335 operated wells and 227 non-operated wells. The operated wells are in the Appleby, Carthage, Martinsville, Minden, Oak Hill, Stockman East and Waterman fields. The company has an active drilling program at Overton field with the wells there turned over to a partner 90 days after completion. A "drill-to-earn" joint venture is ongoing at Willow Springs field. Total gross daily operated production is more than 25 MMcfe/d, and total gross non-operated production exceeds 40 MMcfe/d.
The company's Western Shelf business unit contains 90 operated wells and 49 non-operated wells. The majority of the operated wells are in Savell field, which produce primarily from Jurassic-aged Bossier sandstones. Total gross daily operated production is over 38 MMcfe/d.
"The [newly acquired] assets fit squarely within our Ark-La-Tex strategy, and we believe we can create a tremendous amount of value for our shareholders as we continue to grow our asset base through ongoing development and continued acquisitions," said Tanos CEO Mark Brandon.
More information on the Bossier, Haynesville Shale and Cotton Valley plays is available in NGI's North American Shale & Resource Plays Factbook, which was updated earlier this year.