Blue Dolphin Energy Co. said it will purchase the Nixon Crude Processing Facility from a privately held firm in a stock deal, the value of which was not disclosed. The facility has a processing capacity of 15,000 b/d along with storage capacity of 295,000 b/d, and is located in the Eagle Ford Shale at Nixon, TX, on 56 acres between Gonzales and Wilson counties. The plant is in the final phase of a refurbishment project and plans to restart operations during 4Q2011.
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Well servicing contractor Key Energy Services Inc. has agreed to acquire Edge Oilfield Services LLC and Summit Oilfield Services LLC for $300 million in stock and cash, plus reimbursement of up to $40 million of capital spending in the Eagle Ford Shale. Edge primarily rents hydraulic fracturing stack equipment. It also provides well testing services, rental equipment such as pumps and power swivels, and oilfield fishing services. Closing is expected during this quarter subject to customary conditions.
Analysts: Eagle Ford Ultimately Worth $90-200B
The pace of development in the Eagle Ford Shale in South Texas is fast and steady, yet “the [stock] market continues to not appreciate the statistical and predictable nature of the learning curve” in the play, said analysts at FBR Capital Markets. They noted that in other shale plays, more wells have equaled greater knowledge, which has yielded predictable productivity gains.
Eagle Ford Gains: Fast But Not Spurious, Say Analysts
The pace of development in the Eagle Ford Shale in South Texas is fast and steady, yet “the [stock] market continues to not appreciate the statistical and predictable nature of the learning curve” in the play, said analysts at FBR Capital Markets. They noted that in other shale plays, more wells have equaled greater knowledge, which has yielded predictable productivity gains.
New Natural Gas Commodity Fund Holds Shoulder Month Contracts
The Teucrium Natural Gas Fund (NAGS Fund) began trading as an exchange-traded fund on the New York Stock Exchange (NYSE) Arca Tuesday, seeking to avoid the pitfalls that have dogged an existing natural gas commodity fund by basing daily changes in its net asset value (NAV) on a weighted average of the New York Mercantile Exchange (Nymex) Henry Hub quotes for the four shoulder months instead of just the front month.
New Natural Gas Commodity Fund Holds Shoulder Month Contracts
The Teucrium Natural Gas Fund (NAGS Fund) began trading as an exchange-traded fund on the New York Stock Exchange (NYSE) Arca Tuesday, seeking to avoid the pitfalls that have dogged an existing natural gas commodity fund by basing daily changes in its net asset value (NAV) on a weighted average of the New York Mercantile Exchange (Nymex) Henry Hub quotes for the four shoulder months instead of just the front month.
BP, Russia’s Rosneft Swap Stock, Agree to Jointly Explore Arctic
BP plc and Russia’s state-controlled oil company OAO Rosneft late Friday announced a “groundbreaking strategic alliance” involving a stock swap and a deal to jointly explore Russia’s Arctic region.
BP, Russia’s Rosneft Swap Stock, Agree to Jointly Explore Arctic
BP plc and Russia’s state-controlled oil company OAO Rosneft late Friday announced a “groundbreaking strategic alliance” involving a stock swap and a deal to jointly explore Russia’s Arctic region.
Industry Briefs
Penn Virginia Resource Partners LP has agreed to buy general partner Penn Virginia GP Holdings LP in a stock transaction valued at about $954.5 million. Radnor, PA-based Penn Virginia Resource, a master limited partnership (MLP), manages natural gas gathering and processing businesses. Penn Virginia GP is controlled by onshore producer Penn Virginia Corp., which owns a 37.6% stake and all of the incentive distribution rights (IDR). The transaction would cancel Penn Virginia GP’s IDRs, which gave it an increasing share of the distributable cash flow that it generated.
Penn Virginia Partnerships to Streamline Operations
Penn Virginia Resource Partners LP on Tuesday agreed to buy general partner Penn Virginia GP Holdings LP in a stock transaction valued at about $954.5 million.