Arena Resources, Inc. added an estimated 8 million boe of proved reserves in West Texas through the $9 million acquisition of approximately 5,000 acres on two properties in Andrews County. In addition to current production from the San Andres and Queen formations, Arena secured the rights to the Yates gas formation throughout the acreage. The current net production from the properties is about 560 boe/d, weighted 15% gas and 85% oil, Arena said. The company’s initial reserve estimates, as determined by internal engineering evaluations, indicate the properties have an estimated 8 million boe of proved reserves net to Arena, exclusive of any potential Yates gas reserves and any additional probable or possible oil reserves. Arena will be the operator and have a 100% working interest and average net revenue interest in excess of 75% in the properties. In addition to producing wells already on the properties, Arena said its engineering team has identified approximately 120 new drilling locations and potential for more through in-fill drilling and development. One of the properties is located in the Fuhrman-Mascho field immediately adjacent to an 11,300-acre parcel Arena acquired three years ago (see Daily GPI, Dec. 8, 2004). Arena financed the deal, which closed Dec. 11 with an effective date of Dec. 1, through existing cash reserves and by drawing on a $150 million credit facility.
Texas
Articles from Texas
People
Legendary Texas oilman Oscar Wyatt, 83, was sentenced to 12 months and one day in prison after pleading guilty in October to paying illegal kickbacks to Saddam Hussein’s energy regime in exchange for oil contracts in 2001 (see NGI, Oct. 8). Wyatt had faced up to 24 months in prison. Judge Denny Chin of the U.S. District Court for the Southern District of New York issued the sentence. Wyatt had earlier agreed to forfeit $11 million as part of his plea agreement. Wyatt pleaded guilty in October four weeks into a criminal trial and shortly before prosecutors were to complete their case. Wyatt, who founded Coastal Corp., which later merged with El Paso Corp. (see NGI, May 8, 2000),was indicted in late 2005 with five other individuals. He had faced up to 70 years in prison if he had been convicted on all five counts of his indictment. Wyatt had also been charged with conducting financial transactions with Iraq, which was an enemy nation in 2001, and for violating a U.S. embargo with Iraq.
Wyatt Sentenced to One Year in Federal Prison
Legendary Texas oilman Oscar Wyatt, 83, was sentenced to 12 months and one day in prison Tuesday after pleading guilty in October to paying illegal kickbacks to Saddam Hussein’s energy regime in exchange for oil contracts in 2001 (see Daily GPI, Oct. 2). Wyatt had faced up to 24 months in prison.
XTO Builds Barnett Shale Position, Reports Record Quarterly Output
XTO Energy Inc. built its position in the Barnett Shale of Texas by 24,000 net acres last week in a private $550 million acquisition. Initially the properties, with estimated proved reserves of more than 200 Bcfe, will add about 25 MMcfe/d to XTO’s production base, but company engineers have identified another 300-350 drilling locations, which offer the potential to more than double the holdings’ reserves.
Pioneer Discovers Two New Gas Fields in South Texas
Dallas-based Pioneer Natural Resources Co. has discovered two new natural gas fields in one of its four onshore core areas, the Edwards Trend in South Texas.
XTO Builds Barnett Shale Position, Reports Record 3Q Production
XTO Energy Inc. built its position in the Barnett Shale of Texas Tuesday by announcing it paid $550 million to acquire 24,000 net acres from several undisclosed parties. Initially the properties, with estimated proved reserves of more than 200 Bcfe, will add about 25 MMcfe/d to XTO’s production base, but company engineers have identified another 300-350 drilling locations, which offer the potential to more than double the holdings’ reserves.
Baseline Oil & Gas Pays $96.6M for 42.2 Bcfe in Texas
Independent exploration and development company Baseline Oil & Gas Corp. closed its acquisition of producing gas and oil properties in southern Texas from DSX Energy Limited LLP, Kebo Oil & Gas Inc. and 25 other related parties for an adjusted cash consideration of $96.6 million, the company said Tuesday.
Texas LNG Terminal Project, Elba Island Expansion Get FERC Nods
FERC last Thursday issued certificates for a new liquefied natural gas (LNG) terminal project in Southeast Texas and for an expansion of an existing LNG terminal in Georgia, as well as for associated pipeline projects. The two LNG projects combined will provide more than 2 Bcf/d of additional regasification capacity in the United States.
Texas LNG Terminal Project, Elba Island Expansion Get FERC Nods
FERC Thursday issued certificates for a new liquefied natural gas (LNG) terminal project in Southeast Texas and for an expansion of an existing LNG terminal in Georgia, as well as for associated pipeline projects. The two LNG projects combined will provide more than 2 Bcf/d of additional regasification capacity in the United States.
Horned Frogs Digging for Championships — and Gas
The football stadium at Texas Christian University (TCU), which swells in the fall with the purple-and-white clad students and fans who are better known as the Horned Frogs, soon will be sharing space with natural gas drillers.
