Chesapeake Energy Corp. has sold a five-year volumetric production payment (VPP) to an affiliate of Barclays Bank PLC for proceeds of $1.15 billion related to its production from the Barnett Shale of North Texas. The deal, which closed on Sept. 30, includes about 390 Bcf of proved reserves and about 280 MMcf/d net production in 2011. Chesapeake retained drilling rights on the properties below currently producing intervals and outside existing producing wellbores. Since December 2007 Chesapeake has completed eight VPP transactions and monetized approximately 1 Tcfe of proved reserves for combined proceeds of approximately $4.7 billion, or approximately $4.70/Mcfe (see Daily GPI, May 6). Earlier this year Chesapeake announced a reorganization of its natural gas operations in a plan to raise up to $5 billion to repay up to $3.5 billion of senior debt and to increase its investment in liquids-rich plays by up to $1.5 billion (see Daily GPI, May 11). Jefferies & Company Inc. was adviser to Chesapeake on the latest VPP transaction.
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Industry Brief
Calgary-based Talisman Energy Inc. and Colombia’s largest integrated producer, Ecopetrol SA, agreed to acquire BP plc’s affiliate company in Colombia, BP Exploration Co. Colombia Ltd., for close to $1.9 billion. The transaction, in which Talisman would hold a 49% stake and Ecopetrol would be majority owner, includes all of BP’s interests and business in Colombia. BP’s proven and probable reserves in Colombia are estimated at 94 million boe; current production is around 24,000 boe/d. Talisman has worked in Colombia for close to 10 years. It currently participates in 14 exploration and production blocks in the country, including two with Ecopetrol.
Copano Gains Equity Partner
Copano Energy LLC last week sold a $300 million equity stake to an affiliate of private investment firm TPG Capital to fund growth in the Eagle Ford Shale and other projects in Texas and Oklahoma.
TPG Buys Stake in Copano
Copano Energy LLC on Wednesday sold a $300 million equity stake to an affiliate of private investment firm TPG Capital to fund growth in the Eagle Ford Shale and other projects in Texas and Oklahoma.
Regency Sells East Texas Gathering Assets
Regency Energy Partners LP has sold its east Texas gathering and processing assets to an affiliate of Tristream Energy LLC for about $70 million. Dallas-based Regency said it intends to use proceeds to fund growth opportunities.
Alabama, Kansas Storage Expansions Get FERC OK
Two storage developers have received the go-ahead from FERC on proposals to expand natural gas storage facilities in Alabama and Kansas.
Industry Briefs
MoBay Storage Hub LLC, an affiliate of Falcon Gas Storage Co. Inc., received an order from the Federal Energy Regulatory Commission (FERC), which amended a 2006 certificate, to increase the total capacity of its storage facilities in South Mobile Bay County, AL, by 3.70 Bcf to 86.74 Bcf, of which 59.61 Bcf will be working capacity [CP06-398]. MoBay proposes to install nine injection and withdrawal wells in addition to the 21 wells that already exist. Two of the wells will be installed at new offshore locations and seven at previously approved well caisson structure locations, the order said. All of the new wells will be within the North Dauphin Island storage reservoir. FERC also approved MoBay’s request for market-based rate approval for firm and interruptible storage, hub and wheeling services.
Mitsui Buys into Anadarko’s Marcellus Leasehold for $1.4B
An affiliate of Japanese trading giant Mitsui & Co. Ltd. agreed to pay $1.4 billion to buy nearly a one-third stake (32.5%) in Anadarko Petroleum Corp.’s 700,000-plus Marcellus Shale leasehold, The Woodlands, TX-based producer said last week.
Mitsui Buys into Anadarko’s Marcellus Leasehold for $1.4B
An affiliate of Japanese trading giant Mitsui & Co. Ltd. agreed to pay $1.4 billion to acquire a nearly one-third stake (32.5%) in Anadarko Petroleum Corp.’s 300,000-plus Marcellus Shale leasehold, The Woodlands, TX-based producer said early Tuesday.
Mitsui Buys into Anadarko’s Marcellus Leasehold for $1.4B
An affiliate of Japanese trading giant Mitsui & Co. Ltd. agreed to pay $1.4 billion to acquire a nearly one-third stake (32.5%) in Anadarko Petroleum Corp.’s 300,000-plus Marcellus Shale leasehold, The Woodlands, TX-based producer said early Tuesday.
