Shale

Industry Briefs

Fort Worth, TX-based Range Resources Inc. has expanded its Barnett Shale holdings in sales agreements with a subsidiary of DTE Energy Co. and a private company for a total of $305 million. DTE earlier this month said it would sell some of its Barnett stake to an undisclosed buyer (see NGI, Dec. 10). The newly acquired properties are located in the Texas counties of Tarrant, Denton, Johnson, Ellis, Parker and Hill. Current production is 14 MMcfe/d, which is expected to increase to 18 MMcfe/d early next year when several newly drilled wells are placed in production, Range said. The company said the properties to be acquired now have 51 producing wells, and another 183 drilling locations have been identified. Proven and unproven reserves are estimated at 334 Bcfe. The combined transaction is expected to close in January, and Range intends to initially finance the purchase by drawing on its bank credit facility. However, it also has identified “several noncore properties” in its existing property base that it plans to sell next year to fund the acquisitions. Production from the acquired properties is expected to offset production lost through these property sales, Range said. The assets to be sold were not disclosed.

December 17, 2007

Constellation E&P Expands CBM Holdings in Cherokee Basin

Constellation Energy Partners LLC (CEP) expanded its coalbed methane (CBM) and gas shale holdings in the Cherokee Basin of Oklahoma with an agreement to buy AMVEST Osage Inc. from the Osage Indian Nation for $240 million. The sale is expected to close by the end of the month.

July 16, 2007

Constellation E&P Expands CBM Holdings in Cherokee Basin

Constellation Energy Partners LLC (CEP) expanded its coalbed methane (CBM) and gas shale holdings in the Cherokee Basin of Oklahoma with an agreement to buy AMVEST Osage Inc. from the Osage Indian Nation for $240 million. The sale is expected to close by the end of the month.

July 16, 2007

Trunkline Pipe Expansion in TX, LA Gets Environmental Nod

FERC last Monday gave the environmental go-ahead for Trunkline Gas Co.’s proposed pipeline expansion to increase access to Texas’ growing natural gas production, storage fields, pipelines and liquefied natural gas (LNG) terminals.

March 12, 2007

ConocoPhillips CEO Warns Rising Costs May Impact Output

ConocoPhillips has slashed its capital budget for 2007, and it warned that if service costs continue to escalate, its medium-term oil and natural gas production likely will be impacted.

December 11, 2006

Southern Natural Joins Southeast Supply Header Project

Backers of the Southeast Supply Header (SESH) gas pipeline project — designed to bring new supplies, including those from the Barnett Shale and Bossier Sands, as well as regasified liquefied natural gas (LNG), to the Southeast market — are expanding the project to reach new markets in conjunction with Southern Natural Gas (SNG), an affiliate of El Paso Corp.

December 11, 2006

Southern Natural Buys Into Southeast Supply Header Project

Backers of the Southeast Supply Header (SESH) gas pipeline project — designed to bring new supplies, including those from the Barnett Shale and Bossier Sands, as well as regasified liquefied natural gas (LNG), to the Southeast market — are expanding the project to reach new markets in conjunction with Southern Natural Gas (SNG), an affiliate of El Paso Corp.

December 11, 2006

Industry Briefs

Junior exploration and production company Dune Energy Inc. said Friday it will spend $32.8 million to acquire 2,457 gross acres on the Barnett Shale fairway in Denton County, TX from Voyager Partners Ltd. Dune had earlier purchased $31.8 million of Voyager’s Barnett properties. The two-part agreement will add 2,457 more gross acres to Dune’s portfolio. The assets are estimated to contain proved reserves totaling 29.9 Bcfe plus probable reserves totaling 16.1 Bcfe. The acquisition cost is about $109/Mcfe for the proved reserves, and 71 cents/Mcfe for the proved plus probable reserves. Dune purchased $7 million of Voyager’s remaining properties last Tuesday. The agreement Friday provides that the balance of Voyager’s assets, totaling $25.8 million, be acquired by Dune on or before Jan.19. Dune said its obligation to purchase the remaining assets is subject to financing.

October 16, 2006

Energy Transfer to Transport Up to 1.045 Bcf/d in Additional Barnett, Bossier Supply

Dallas-based Energy Transfer Partners LP (ETP) has entered into new long-term transportation agreements with several producers in the Barnett Shale and Bossier Sand plays in North and East Texas to transport up to an additional 1.045 Bcf/d. The agreements, with terms ranging from five-to-10 years, are tied to ETP’s planned pipeline expansions, which were announced last July (see Daily GPI, July 7, 2005).

April 5, 2006

Industry Brief

Louis Dreyfus Energy Services announced plans to install up to 80 MMcf/d of gathering pipeline this year to serve the southern Barnett Shale play in North Texas. The company said Tuesday the project could lead to construction of a large-diameter pipeline should the region’s gas development increase substantially. Louis Dreyfus has nearly completed the initial 20 MMcf/d phase of the new gas gathering and processing system in Eastland, Erath, Bosque and Hill counties, TX. The gathering system will be expanded later this year to 40-80 MMcf/d. The project consists of converting existing pipeline capacity to natural gas in a corridor from Taylor to Navarro Counties with the capability to move gas both east and west. Louis Dreyfus Energy Services and its subsidiaries plan to put additional capacity in service as the region develops. Louis Dreyfus Energy Services also owns a 20% stake in the 850 MMcf/d Sea Robin gas processing plant; a 1,400-mile NGL pipeline from the Permian Basin to a storage facility in Hull, TX; a 4.5-million-barrel propane/butane storage and terminal facility in Hattiesburg, MS; and a 50% interest in Mont Belvieu Storage Partners, among other assets.

February 16, 2005