ZaZa Energy Corp. and an affiliate of private equity firm Quantum Energy Partners has struck an East Texas joint venture (JV) agreement that includes acreage in Walker, Grimes, Madison, Trinity and Houston counties. ZaZa is to receive about $17 million, consisting of cash and a right to receive Quantum’s interest in the next 15 East Texas JV wells. ZaZa is to assign to Quantum 6,000 net acres in undeveloped leases within its East Texas JV and is to retain its interest in all existing wells and the right to participate with respect to Quantum’s working interest in reserved wells. Following the assignment, ZaZa will have about 30,000 net acres in its East Texas JV and about 10,000 net acres in its East Texas focus area. Closing is subject to the approval of ZaZa’s existing East Texas JV partner. “ZaZa has been meeting with Quantum for more than a year to lay the groundwork for this new relationship,” said CEO Todd Brooks. “Our new partnership validates the progress ZaZa has made, and we look forward to working with Quantum as we move forward with our East Texas acquisition and development plans.”
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Industry Briefs
Organizers of the Oil & Gas Awards announced Monday that the 2014 finalists have been picked. Judged by more than 110 senior executives from midstream and exploration and production companies, the Oil & Gas Awards saw more than 400 companies participate across multiple categories this year. “The Awards champion companies that display best practice in the key areas of operational excellence, environmental stewardship, corporate social responsibility and excellence in health and safety. All key areas of public interest where misinformation dissipated by industry critics has been a thorn in the industry’s side.” The Oil & Gas Awards take place regionally throughout North America in the Gulf Coast, Midcontinent, Northeast, Rocky Mountains, Southwest and West Coast. Winners of the Oil & Gas Awards will be announced at the Oil & Gas Awards Gala Dinner in the relevant region. Each gala dinner will be preceded by a regional Oil & Gas Awards Industry Summit held for participating companies and organizations that have an interest in networking and learning about challenges faced in the region. The West Coast event is being held on Oct. 21 in Bakersfield, CA, while the Southwest event will be held on Oct. 23 in Dallas, TX, and the Midcontinent one on Oct. 29 in Oklahoma City, OK. For a full list of West Coast, Southwest and Midcontinent finalists for 2014, visithttp://www.oilandgasawards.com/2014-finalists/. For more information on the Industry Summit and Awards Dinner, contact info@oilandgasawards.com, or call (210) 591-8471.
Industry Briefs
Consol Energy Inc. officially started horizontal hydraulic fracturing (fracking) operations at the Pittsburgh International Airport on Monday, with a ceremony that featured top company officials, Republican Gov. Tom Corbett and Allegheny County Chief Executive Rich Fitzgerald. Consol has already constructed one of six well pads on more than 9,000 acres of county-owned land at the airport where it plans to drill up to 45 Marcellus Shale wells through 2018. Drilling at the airport began earlier this month. The project, which cleared a series of local, state and federal regulatory hurdles beginning in February 2013 (see Shale Daily,April 25;Feb. 21, 2013), is expected to generate more than $1 billion in capital spending and revenue for the county over the next 20 years, including a $50 million signing bonus delivered to the airport authority last year, according to Consol. CEO Nick Deluliis said drilling operations at the airport could eventually be expanded to target the Upper Devonian and Utica shales.
Strong Cash Gains Outshine Lagging Futures
Spot gas prices for Wednesday delivery made it two strong days in a row with nearly every market point posting gains and those few showing losses limited to the Gulf Coast and California.
Texas Eastern OPEN Project Gets Favorable EA
FERC staff issued a favorable environmental assessment (EA) for Texas Eastern Transmission LP’s Ohio Pipeline Energy Network (OPEN) project, which would carry Marcellus/Utica shale gas to Gulf Coast markets and other markets using interconnections with downstream pipelines.
U.S. Steel Pipe Makers Win Trade Dumping Case
U.S. steel pipe manufacturers on Friday won their cases before an international tribunal, which affirmed the alleged dumping of underpriced steel pipe by counterparts in six nations, led by South Korea.
TransCanada’s King’s North Connection Targets Bountiful Marcellus/Utica Gas Supplies
With natural gas exploration and production continuing to ramp up in the Marcellus and Utica shales of the eastern United States, TransCanada Corp. has a new pipeline project on the table to capture more of those supplies for Canadian import to serve existing markets in Ontario and Quebec.
BP’s Legacy San Juan Properties in New Mexico For Sale
As it streamlines the Lower 48 operations before the business is a standalone, BP plc has put up for sale some of its legacy properties in the San Juan Basin, including interests in about 6,600 natural gas wells and stakes in a treatment plant in northwestern New Mexico.
Work Starts on Segment of 2.1 Bcf/d U.S.-Mexico Pipeline
Construction has begun on the Los Ramones Phase II South pipeline, a segment of the larger Ramones natural gas pipeline system, which runs from the Texas-Mexico border to central Mexico and is one of the country’s largest energy infrastructure projects ever, according to developers.
North America’s Sand Market Continues Boom Times, Says Raymond James
North America’s proppant sand market should see robust growth over the next three to five years, with aggregate consumption hitting 78 million tons per year (mtpy) by 2016, according to new research by Raymond James & Associates Inc.
