Acquisitions

Industry Brief

A recently combined and publicly held exploration and development company, Salt Lake City-based Richfield Oil and Gas Co., announced a purchase in the Graham Reservoir oilfield in Uinta County, WY. Richfield bought a shut-in well in the Wasatch National Forest (Well #16-15) from Frontier Energy for $610,000, including 640 acres of mineral leases. The company said the purchase gives it 100% working interest in a mineral lease in the Graham Reservoir, located approximately 120 miles northeast of Salt Lake City in southeastern Wyoming. The well has been shut in since 2003 and was completed in the Dakota Formation at 15,600 feet. Flow testing and production operations will get underway later in the first quarter. For Richfield, which is the product of the merger of Hewitt Petroleum Inc. and Freedom Oil & Gas Inc. in 2011, the acquisition is part of the process of “methodically building our reserve and production base” through graded acquisitions,” said CEO Douglas Hewitt.

January 16, 2013

U.S. Led Global Upstream M&A Activity in 2012

Global upstream oil and natural gas deals in 2012 jumped 50% higher year/year to a record $254 billion in 679 mergers and acquisitions (M&A), according to data compiled by PLS Inc. and Derrick Petroleum Services.

January 8, 2013

Williams Buys Half of Chesapeake’s Former Midstream Business

Williams, which has been expanding its onshore presence in the Marcellus and Utica shales, late Tuesday snagged a deal to significantly expand its onshore footprint in a $2.4 billion transaction to acquire half of the natural gas pipeline system once owned by Chesapeake Energy Corp.

December 13, 2012

Industry Briefs

Houston-based Vanguard Natural Resources LLC has closed on its acquisition of natural gas and liquids assets in the Arkoma Basin from Antero Resources for an adjusted price of $434.4 million, subject to post-closing adjustments. The effective date is April 1, 2012. The deal was announced early last month (see Shale Daily, June 5). Vanguard funded the acquisition with borrowings under its existing reserve-based credit facility. The borrowing base was increased from $670 million to $975 million in connection with an interim borrowing base redetermination to include the properties from the acquisition. Updated 2012 production and financial results guidance will be included with second quarter results, which are expected to be released on Aug. 2.

July 3, 2012

Pennsylvania Gas Drilling Falls Almost 7% in First Five Months

Pennsylvania’s Marcellus Shale natural gas drilling declined nearly 7% in the first five months of this year from the same period of 2011 in part as operators began moving from dry gas to wetter targets, according to data from the state Department of Environmental Protection (DEP).

June 28, 2012

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.

February 28, 2012

Private Equity Takes El Paso E&P in $7.15B Deal

A consortium of private equity investors is readying a $7.15 billion leveraged buyout of El Paso Corp.’s exploration and production (E&P) business, which includes an array of liquids-rich U.S. unconventional property that extends across Texas, Louisiana, the Raton Basin and the Rocky Mountains.

February 28, 2012

Apache Deal More than Doubles Liquids Acreage in Anadarko Basin

Apache Corp. is picking up 254,000 net acres in the Granite Wash, Tonkawa, Cleveland and Marmaton plays in Oklahoma and Texas with estimated proved reserves of 71.5 million boe through a $2.85 billion deal to acquire privately held Cordillera Energy Partners III LLC, the Houston-based company said Monday.

January 24, 2012

BHP In the ‘Shale of the Shales,’ Says Petroleum Unit Chief

Recent acquisitions have put Australia’s BHP Billiton Ltd. in the “shale of the shales” and positioned it to be a low-cost provider in the development-friendly United States, the company’s petroleum unit chief, J. Michael Yeager, told financial analysts, noting that plans to export liquefied U.S. gas to the rest of the world are racing ahead and BHP is ready.

November 21, 2011

BHP In the ‘Shale of the Shales,’ Says Petroleum Unit Chief

Recent acquisitions have put Australia’s BHP Billiton Ltd. in the “shale of the shales” and positioned it to be a low-cost provider in the development-friendly United States, the company’s petroleum unit chief, J. Michael Yeager, told financial analysts, noting that plans to export liquefied U.S. gas to the rest of the world are racing ahead and BHP is ready.

November 17, 2011