Marathon Oil’s Eagle Ford Acquisition Includes 4,800 Acres – $97 Million

Marathon Oil Eagle Ford Acreage Map & Improving Well Performance

Marathon Oil Eagle Ford Acreage Map & Improving Well Performance | Click to Enlarge

Marathon Oil announced three significant items on September 10th. The company plans to repurchase $1 billion in common stock, sell an interest in Angola for $590 million, and complete an acquisition of 4,800 acres in the Eagle Ford for $97 million.

The company didn’t release much in regard to the acquisition, but it’s safe to assume the acreage will complement the company’s current position. Marathon is paying $74 million upfront and $23 million in the form of carried interests.

Lee M. Tillman, CEO, stated “We continue to evaluate our portfolio for high-grading opportunities and expect that process to remain evergreen and integral to our forward business plans.”

On an undiscounted basis, the company is paying a little more than $20,000/acre. The deal brings Marathon’s core Eagle Ford position up to approximately 205,000 net acres.

When Marathon first entered the Eagle Ford, the company estimated development on 80 to 160-acre spacing. So far in 2013, approximately 80% of the company’s development drilling has occurred on 40 to 60-acre spacing.

Read the full press release at marathonoil.com

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R.T. Dukes

R.T. Dukes

Managing Editor at EagleFordShale.com
R.T. is the managing editor of EagleFordShale.com. In prior roles, he advised major oil companies on strategy, the macro business environment, and opportunity screening. 2503 Robinhood, Houston, TX, 77005, U.S.A. | Telephone: 832.429.4790

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