BP is raising its stake in North American natural gas, announcing it will invest up to $2.2 billion to double production from its acreage in the Wamsutter gas field in the Rocky Mountains. The multiyear drilling program is expected to increase BP’s share of ultimate recovery from the Wyoming field by 450 MMboe and increase daily net production 125-250 MMcf/d by the end of the decade.
Acreage
Articles from Acreage
Chesapeake Energy Pays $510M for 515 Bcfe in Midcontinent Reserves
Looking to expand both its acreage and proven natural gas and oil reserve base, Oklahoma City, OK-based Chesapeake Energy Corp. has entered into agreements to acquire $510 million of Midcontinent, Permian Basin and onshore Gulf Coast oil and gas assets through recent agreements to acquire privately-owned Concho Resources Inc. for $420 million and two smaller property acquisitions totaling $90 million.
Chesapeake Energy Acquires $510M in E&P Assets, Augments Midcontinent, Permian Role
Looking to expand both its acreage and proven natural gas and oil reserve base, Oklahoma City, OK-based Chesapeake Energy Corp. has entered into agreements to acquire $510 million of Midcontinent, Permian Basin and onshore Gulf Coast oil and gas assets through recent agreements to acquire privately-owned Concho Resources Inc. for $420 million and two smaller property acquisitions totaling $90 million.
Industry Brief
Dallas-based independent Angus Energy Corp. said it completed a $3 million private placement and has acquired one of the largest acreage positions in the expanding Barnett Shale natural gas play in central Texas. In connection with the financing, Angus has acquired the exclusive drilling rights and operating interests in the Stanton Powell Ranch and surrounding properties located in Bosque County, TX. The company now controls over 17,000 acres of mineral interests in the Barnett Shale, making it one of the largest leaseholders in the area. Angus also holds an option to acquire an additional 141,500 Barnett Shale acres. The Barnett Shale gas play is the largest natural gas field in Texas and a primary supplier to the North American gas market. The U.S. Geological Survey estimates the Barnett may hold 10 Tcf of recoverable natural gas with production in the region currently exceeding 6 Bcf per month. Natural gas was discovered on the Stanton Powell Ranch property in 1996. Angus will employ the latest proven horizontal drilling and fracture technologies to recover the gas within its Bosque County properties. Seismic has already been shot on the property and drilling operations will commence immediately. As part of the financing agreement Angus will submit certain filings to the SEC and apply for a listing on the American Stock Exchange within 120 days.
Gastar Completes Earn-in Agreement on Powder River Acreage
Mt. Pleasant, MI-based Gastar Exploration Ltd. said last week that it has closed on its previously announced Powder River Basin earn-in joint venture with Pinnacle Gas Resources Inc., a new company formed by affiliates of Riverton, WY-based Rocky Mountain Gas Inc. (RMG), Houston-based CCBM Inc. and Credit Suisse First Boston Private Equity fund.
Gastar Completes Earn-in Agreement on Powder River Acreage
Mt. Pleasant, MI-based Gastar Exploration Ltd. said Tuesday that it has closed on its previously announced Powder River Basin earn-in joint venture with Pinnacle Gas Resources Inc., a new company formed by affiliates of Riverton, WY-based Rocky Mountain Gas Inc. (RMG), Houston-based CCBM Inc. and Credit Suisse First Boston Private Equity fund.
Canadian 88 to Sell East Coast Assets, Focus on Alberta
Canadian 88 Energy Corp. is selling off its 750,000-plus acreage along Canada’s East Coast to concentrate on exploration and production in the Western Sedimentary Basin. Although the company likes what it has in the less-developed region, Stephen J. Savidant, president, said, “we can’t afford it, it’s too big, it’s too much cost and it’s too far out” in terms of production timing.
Canadian 88 to Sell East Coast Assets, Focus on Alberta
Canadian 88 Energy Corp. is selling off its 750,000-plus acreage along Canada’s East Coast to concentrate on exploration and production in the Western Sedimentary Basin. Although the company likes what it has in the less-developed region, Stephen J. Savidant, president, said, “we can’t afford it, it’s too big, it’s too much cost and it’s too far out” in terms of production timing.
Gasco, Burlington to Develop Green River Acreage
Gasco Energy Inc. and Burlington Resources plan to explore and potentially develop a series of deep natural gas plays in Wyoming’s Greater Green River Basin under an agreement announced Thursday. The companies plan to jointly explore and develop seven areas of mutual interest (AMI) under an umbrella exploration agreement covering 332,000 acres in west-central Wyoming. Financial details were not disclosed.
Industry Brief
Apache Corp. announced a Canadian gas discovery that tested at31 MMcf/d British Columbia on acreage acquired from Shell Canadalate last year. “Proved reserves acquired in the Shell Canadatransaction were mainly oil, but the major upside lies in gasexploration on nearly 300,000 net acres and in the staff of highlymotivated technical people who joined Apache,” said ApachePresident G. Steven Farris. Apache holds a 37% working interest inthe Ladyfern area producer. Murphy Oil, the operator, holds 33% andBeau Canada Exploration has the remaining 30% working interest.”Pressure build-up tests are under way to help in determining theapproximate size of this discovery, but it’s safe to say it has thepotential to be a very large gas field,” Farris said. Apache andits partners have under lease more than 25,000 acres in theLadyfern area and are presently drilling two additional wildcatwells on separate structures. Apache and partners will build aneight-inch-diameter pipeline 15 miles to the Beau Canada pipelineto take Ladyfern gas to Apache’s Hamburg gas plant.