Investors apparently approved of Philadelphia-based Atlas Resource Partners LP’s deal to acquire 277 Bcfe of proved reserves, including undeveloped drilling locations, in the Barnett Shale from Carrizo Oil & Gas. Atlas shares closed up 32% Friday following the deal’s announcement.
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Eagle Ford Midstream Assets Sold; Expansion Planned
San Antonio-based Howard Energy Partners said Thursday it will acquire the Eagle Ford Escondido Gathering System, which is partially owned by Laredo Energy, and the Cuervo Creek Gathering System from Meritage Midstream Services. Both systems are primarily 12- 16-inch diameter high-pressure gas pipelines. The transaction is expected to close in April.
Industry Briefs
Linn Energy LLC has agreed to pay $1.2 billion to acquire BP plc’s Hugoton Basin properties in Kansas, the largest conventional gas field in the United States. The agreement, set to close by the end of March, includes the 450 MMcf/d Jayhawk Natural Gas Processing Plant and 2,400 producing gas wells on 600,000 net acres. The properties have a decline rate of about 7% and are expected to provide 110 MMcfe of liquids production, Linn CEO Mark E. Ellis said. The wells are 98% operated, with an estimated 800 future drilling locations. The leasehold is 63% weighted to gas, and reserves life is estimated at 18 years. Proved reserves are estimated at 730 Bcfe, with 81% proved developed. Linn entered into hedging contracts for 100% of the natural gas production associated with the transaction through 2016 using a combination of 50% swaps and 50% puts. In addition, 68% of the natural gas liquids output is hedged through 2016.
Linn to Pay BP $1.2B for Hugoton Basin Leasehold
Linn Energy LLC late Monday said it agreed to pay $1.2 billion to acquire BP plc’s natural gas rich Hugoton Basin properties in Kansas.
Apache Encouraged by Emerging Whittenburg Basin Results
Apache Corp. on Thursday disclosed “encouraging” results from an exploratory drilling program in the emerging Whittenburg Basin in the Texas Panhandle, where five of six initial vertical tests were completed as “oil producers” in the Canyon Wash interval.
AltaGas to Acquire Semco’s Alaska, Michigan Gas Businesses
Calgary-based AltaGas Ltd. on Wednesday agreed to pay US$1.135 billion to acquire Semco Holding Corp., which has stakes in the largest natural gas distributor in Alaska, Enstar Natural Gas Co., as well as a Michigan gas distribution system.
Devon, Sinopec Partner in Five U.S. Unconventional Plays
A unit of China’s Sinopec Group on Tuesday agreed to invest $2.2 billion to acquire a one-third interest in five of Devon Energy Corp.’s frontier unconventional oil and gas fields.
Epsilon: Chesapeake JV in Marcellus Yields ‘Significant’ Production
Ontario-based Epsilon Energy Ltd., which is working with Chesapeake Energy Corp. in the Marcellus Shale, said Friday it ended 2011 with a “substantial” increase in Pennsylvania natural gas production, which was in line with its exit guidance.
Chesapeake Midstream to Acquire Marcellus Pipeline System
Chesapeake Midstream Partners LP (CHKM) said Wednesday it agreed to pay $865 million to acquire Appalachia Midstream Services LLP, which it said would create the industry’s largest gathering and processing master limited partnership (MLP) as measured by throughput volume.
Industry Brief
Williams Partners LP has agreed to acquire the Laser Northeast Gathering System and other midstream businesses from Delphi Midstream Partners LLC for about $750 million. Laser is composed of 33 miles of 16-inch diameter gas pipeline and associated gathering facilities in Susquehanna County, PA, as well as 10 miles of gathering pipeline in southern New York. The acquisition is supported by existing long-term gathering agreements that provide acreage dedications and volume commitments. As production in the Marcellus Shale increases, the Laser system is expected to reach a capacity of 1.3 Bcf/d, said Williams Partners, which plans to fund the purchase with $300 million in cash and 7.5 million common units. The deal, which the partnership said it earlier was pursuing (see Shale Daily, Dec. 5), is subject to customary regulatory approvals.