Privately backed producer Indigo Minerals LLC has returned to the acquisition market after making a $218 million cash deal with Chesapeake Energy Corp. to acquire some producing properties, undeveloped acreage and midstream assets spread across northern Louisiana, East Texas and Arkansas. Under the agreement, Indigo would acquire stakes in 519 of Chesapeake’s producing wells that are located in more than 60 fields. The transaction also includes 40,000 undeveloped acres, bringing the total acreage position to be sold to Indigo to more than 122,000 net acres. Indigo would operate 219 of the newly acquired wells, and it would gain a working interest in another 300 of the Chesapeake-operated wells in the region. Net production following the acquisition “will approach 40 MMcfe/d, and total proved reserves will exceed 220 Bcfe,” said Indigo, which is based in Houston. Chesapeake would retain its deep leasehold rights in the Haynesville Shale properties, Indigo said. The acquisition follows a divestment phase by Indigo that began in 2008, when the company sold 89,000 acres of mineral rights in the Haynesville Shale to EnCana Corp. for $457 million (see NGI, June 30, 2008).
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Indigo Pays Cash for Chesapeake Ark-La-Tex Assets
Privately backed producer Indigo Minerals LLC has returned to the acquisition market after making a $218 million cash deal with Chesapeake Energy Corp. to acquire some producing properties, undeveloped acreage and midstream assets spread across northern Louisiana, East Texas and Arkansas.
Bullish Futures Enthusiasm Tamed, But Upside Still Favored
Unable to build upon Monday’s 41.4-cent gain, July natural gas futures on Tuesday backed off 12.9 cents to close at $4.120. Despite the pullback and continued soft fundamentals, some market experts are still convinced that now is the time to buy before prices really break out higher.
Producers: New Regs Could Be ‘Disastrous’ for Domestic Energy, Economy
Proposed federal environmental regulations would have “disastrous economic consequences” and increase U.S. dependence on foreign sources of oil, according to research backed by a coalition of U.S. oil and natural gas producers. One study noted that some proposed regulations — especially related to shale gas development — could have dramatic negative effects on the country.
Producers: New Regulations Could Be ‘Disastrous’ for Domestic Energy, Economy
Proposed federal environmental regulations would have “disastrous economic consequences” and increase U.S. dependence on foreign sources of oil, according to research backed by a coalition of U.S. oil and natural gas producers. One study noted that some proposed regulations — especially related to shale gas development — could have dramatic negative effects on the country.
Chevron Spends for the Long Term, Readies Deepwater Start-Ups
Chevron Corp. has backed off an earlier commitment to increase worldwide natural gas and oil production by 3% in the long-term because of the “uncertain point in the global economy,” but 2009 output should jump 4% from 2008 levels because of the slate of new projects nearing completion, CEO Dave O’Reilly said last week.
New Fayetteville Pipe Would Carry 2 Bcf/d, Cost $1.3B
Robust production from Arkansas’ Fayetteville Shale, where some think 20-30 Tcf or more gas resides, has spawned an interstate pipeline project backed by Kinder Morgan Energy Partners LP (KMP) and Energy Transfer Partners LP.
Kinder Morgan, Energy Transfer Partnering on New Fayetteville Pipe
Robust production from Arkansas’ Fayetteville Shale, where some think as much as 20 Tcf of gas resides, has spawned an interstate pipeline project backed by Kinder Morgan Energy Partners LP (KMP) and Energy Transfer Partners LP.
Oregon County’s LNG Vote Will Not Impact Project
A county ballot referendum on land-use conditional permits that was backed by opponents of the proposed Bradwood Landing liquefied natural gas (LNG) receiving terminal along the Oregon side of the Columbia River was passed by voters Tuesday (68-32%), but both opponents and supporters of the LNG project agreed that the vote will have no impact on the ongoing permitting process for the nearly $1 billion project.
Denali Picks Chief as Gazprom Voices Interest in Alaska Gasline
Denali — The Alaska Gas Pipeline LLC, which is the producer-backed proposal for a pipeline to tap Alaska’s North Slope gas supplies and carry them to Alberta, last week appointed industry veteran Bud E. Fackrell to be its president. And the Denali project has attracted the interest of Russia’s Gazprom.
