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Williams Completes $147M Barnett Shale Buy
Williams has completed the purchase of interests in the Barnett Shale of North Texas for $147 million from privately held Aspect Abundant Shale LP and other parties, the company said Tuesday.
The assets represent an estimated 175 Bcfe of proved, probable and possible reserves, along with 41 producing wells with net production of approximately 9 MMcfe/d on approximately 10,000 net acres, primarily in Tarrant, Johnson and Hood counties, Williams said.
When Williams first announced the deal in July it said it had agreed to a purchase price of $166 million (see Daily GPI, July 22). The change in the purchase price “is because the parties are in the process of finalizing title work on a small portion of the acquisition package,” Williams said.
At year-end 2007 Williams had an estimated 277 Bcfe of proved, probable and possible reserves in the Barnett Shale. Prior to the acquisition of the Aspect interests, Williams’ holding in the play was approximately 34,000 net acres. The company has four drilling rigs operating in the Barnett and plans to add two rigs to begin developing the new acreage. In the second quarter Williams produced an average of 40 MMcfe/d net in the Barnett Shale.
With second quarter exploration and production profits more than doubling and midstream income rising 17.5% from a year ago, Williams last month boosted its 2008 earnings guidance for the second time in less than two months (see Daily GPI, Aug. 8). Increased development within the Piceance, Powder River and Barnett Shale basins drove a 24% jump in domestic gas production growth in 2Q2008, and Williams surpassed 1.1 Bcfe/d in domestic production during the period.
In the Piceance Basin of western Colorado — the company’s cornerstone for production and reserves growth — reported average output climbed 26% in the second quarter to 659 MMcfe/d from 522 MMcfe/d. The Powder River Basin in Wyoming, the company’s second-largest production area, had 41% growth from a year earlier to 234 MMcfe/d from 166 MMcfe/d.
Williams’ other North American oil and gas production, which includes stakes in the San Juan Basin of New Mexico and the Barnett Shale of Texas, reported 4% growth overall to 266 MMcfe/d from 257 MMcfe/d in 2Q2007.
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