Carolyn Davis

Stagnant natural gas prices led exploration and production (E&P) companies to move their drillbits to more lucrative liquids. Now, declining crude prices may cause a pause in some of the booming onshore areas as well, analysts believe.

Forest Oil Corp. has agreed to pay $20 million to acquire some Texas properties from BP America Production Co. and Brammer Engineering Inc., according to a Securities and Exchange Commission Form 8-K filing. No other details were provided. Forest’s principal reserves and producing properties are in East and South Texas, Arkansas, Louisiana and Oklahoma. It is readying a merger with junior producer Sabine Oil & Gas LLC, whose main operations are in Texas (see Shale Daily,May 6). The proposed merger is expected to be completed before the end of the year; a special meeting of shareholders is scheduled for Nov. 20 to vote on the proposed stock swap.

Calgary operator Encana Corp. on Wednesday catapulted more natural gas-heavy assets from its portfolio in an agreement to sell most of its Clearwater coalbed methane (CBM) properties in south-central Alberta to Ember Resources Inc. for C$605 million.

Global oil reserves last year were 0.4% higher year/year, while natural gas reserves jumped 1.7%, thanks mainly to U.S. onshore plays and discoveries in East Africa, according to 13th edition of Eni SpA’s World Oil and Gas Review.

Vector Pipeline LP is holding an open season for capacity that would potentially double its 1.3 Bcf/d pipeline, which now carries supplies between the Chicago Hub and the Dawn, ON, storage hub. The project, which would also retrofit the pipeline for bidirectional flow, would catch some of the burgeoning Appalachian Basin natural gas by accessing other pipelines.

The United States is set to join the “legion” of liquefied natural gas (LNG) exporters on the surge of production from the shale boom, setting up a significant change to global markets, the International Monetary Fund (IMF) said in its latest World Economic Outlook.

The third quarter proved to be a quiet period for global oil and gas merger and acquisition (M&A) transactions compared to the previous three months of this year, but 2014 continues on track for stronger spending than in 2013 on the strength of U.S. dealmaking, specifically because of the Permian Basin.

Chevron Corp. is selling a nearly one-third stake in its Duvernay Shale project in west-central Alberta to a unit of Kuwait Foreign Petroleum Exploration Co. (KUFPEC) for $1.5 billion.

The pace of U.S. drilling activity, particularly horizontal drilling, has exceeded an already optimistic forecast by Raymond James & Associates, which on Monday again revised upward its expectations for the domestic 2015 land rig count by 5%. The horizontal rig count for 2015 now is expected to average 11% higher year/year (y/y) — well above an original forecast of 6%.