BreitBurn Energy Partners LP has completed the acquisition of producing natural gas and oil properties primarily in Wyoming from Cabot Oil and Gas Corp. for $283 million. Reserves acquired are 95% natural gas with estimated proved reserves of 230 Bcfe, including 136 Bcfe of estimated proved developed producing reserves. Net expected production averages more than 30 MMcfe/d for 2012. There are about 620 producing wells in 16 fields and more than 90 proven, undeveloped drilling locations and more than 600 additional potential drilling locations. The estimated reserve life index is 21 years on estimated proved reserves and 12 years on estimated proved developed reserves. Lifting costs are about 83 cents/Mcfe. BreitBurn acquired: in Wyoming, 238,000 gross acres (111,500 net); in Colorado 15,000 gross acres (13,000 net); and in Utah, 2,000 gross acres (500 net). The acquisition was funded with borrowings under its credit facility. BreitBurn entered into gas hedges for 2011 through 2015 on 30.5 million MMBtu of production at a weighted average price of $5.11/MMBtu.
Cabot
Articles from Cabot
FBR: Market Can Handle Marcellus Growth
The growth of the Marcellus Shale likely won’t be constrained by market demand, despite a projected seven-fold increase in production from the play over the next 15 years, according to FBR Capital Markets.
Penn Virginia Selling Oklahoma Assets
Following the trend toward liquids-rich basins, Penn Virginia Corp. recently announced plans to sell much of its Mid-continent assets to an undisclosed buyer for $30.5 million.
People
Thomas S. Liberatore has joined Eclipse Resources as a partner, executive vice president and COO, the State College, PA-based oil and gas company said. Liberatore, who resigned as vice president of Cabot Oil & Gas Corp.’s East region following a restructuring there two years ago (see Daily GPI, June 1, 2009), is a member of the American Association of Petroleum Geologists and the Appalachian Geological Society, has served on the board of directors of the West Virginia Oil and Natural Gas Association and is a past president of the Independent Oil & Gas Association of West Virginia. Additionally, Brian Panetta, who was previously a geologist with Waco Oil & Gas and a senior geologist for Chesapeake Energy Corp., has joined Eclipse as vice president of geology. Eclipse focuses on the acquisition, exploration and development of unconventional oil and natural gas properties in the Appalachian Basin, including the Marcellus Shale, Utica Shale and Upper Devonian shales.
People
Thomas S. Liberatore has joined Eclipse Resources as a partner, executive vice president and COO, the State College, PA-based oil and gas company said. Liberatore, who resigned as vice president of Cabot Oil & Gas Corp.’s East region following a restructuring there two years ago (see Daily GPI, June 1, 2009), is a member of the American Association of Petroleum Geologists and the Appalachian Geological Society, has served on the board of directors of the West Virginia Oil and Natural Gas Association and is a past president of the Independent Oil & Gas Association of West Virginia. Additionally, Brian Panetta, who was previously a geologist with Waco Oil & Gas and a senior geologist for Chesapeake Energy Corp., has joined Eclipse as vice president of geology. Eclipse focuses on the acquisition, exploration and development of unconventional oil and natural gas properties in the Appalachian Basin, including the Marcellus Shale, Utica Shale and Upper Devonian shales.
Industry Briefs
Tennessee Gas Pipeline Co. (TGP) has executed binding, 15-year term agreements with Cabot Oil & Gas Corp., Anadarko Energy Services Co. and Seneca Resources Corp. to carry up to 250,000 Dth/d of incremental firm transportation capacity from the Marcellus Shale region to existing markets in New England and Niagara Falls, NY, via a revamped Northeast Supply Diversification Project (NSD Project). The NSD Project combines TGP’s original NSD Project, which provided transportation to New England; and the Marcellus to Leidy and Niagara Project (MLN Project), which provided transportation service to Niagara Falls. A certificate application with the Federal Energy Regulatory Commission is to be filed later this year, and pending approval, construction could begin in the first half of 2012, with a Nov. 1, 2012 in-service date.
Tennessee to Transport More Marcellus Gas
Tennessee Gas Pipeline Co. (TGP) on Wednesday executed binding, 15-year term agreements with Cabot Oil & Gas Corp., Anadarko Energy Services Co. and Seneca Resources Corp. to carry up to 250,000 Dth/d of incremental firm transportation capacity from the Marcellus Shale region to existing markets in New England and Niagara Falls, NY, via a revamped Northeast Supply Diversification Project (NSD Project).
