Anadarko Enters Eaglebine Joint Venture with KKR & Co – $442 Million

Anadarko Remains Operator of East Texas Eagle Ford Acreage Included in JV AMI
Anadarko Eaglebine Acreage

Anadarko Eaglebine Acreage|Click to Enlarge

During the third-quarter of 2014, Woodlands, TX-based Anadarko Corp. entered into a joint venture (JV) with private equity firm KKR & Co. to develop a portion of Anadarko’s East Texas/Eaglebine acreage.

Under the terms of the deal, KKR agreed to carry $442-million of Anadarko’s future capital expenditures in Brazos, Burleson, and Robertson Counties, situated northwest of Houston, TX. In exchange, KKR received 36,000 net acres in the JV area of mutual interest (AMI) and 40% of Anadarko’s working interest (WI) in 33 wells. In a prepared release, KKR company officials said through long-term development of the field, they expect to participate in more than 500 wells.

“We see the Eaglebine as a really exciting and potentially explosive area, Anadarko CEO Al Walker said on an investor conference call in late October of 2014.

Anadarko will remain the operator of the acreage with an average post-transaction WI of approximately 51% in the JV AMI. Anadarko company officials say the transaction will enable the company to more rapidly develop this short-cycle oil opportunity with the addition of incremental drilling rigs, while further enhancing Anadarko’s capital efficiency and flexibility.

During the third-quarter, Anadarko spud five wells with one rig in the Eaglebine. Production from these new wells increased the company’s net sales volumes to more than 3,000 boe/d, with a 90% oil cut, according to Anadarko’s third-quarter operations update.

Devon Expects Peak Eagle Ford Production of 140,000 boe/d

Eagle Ford Assets Will Be Self-Funding by 2015
Devon Energy Eagle Ford Acreage Map

Devon Energy Eagle Ford Acreage Map – 82,000 net acres | Click to Enlarge

Devon’s Eagle Ford acquisition of GeoSouthern Energy’s assets in the play is on track to close by the end of the first-quarter of 2014.

The company  announced the acquisition of GeoSouthern Energy’s assets in the Eagle Ford oil play in November.

The acquired Eagle Ford acreage includes 82,000 net acres located in DeWitt and Lavaca counties. Devon expects to almost triple production from 53,000 boe/d at the time of the deal to ~140,000 boe/d over the next several years.

Read more: Devon Energy Acquires Eagle Ford Assets from GeoSouthern for $6 Billion [Read more…]

Eagle Ford Deal Value Leads the U.S. in 2013

Approximately $9 Billion in Eagle Ford Deals in 2013
Devon Energy Eagle Ford Acreage Map

Devon Energy Eagle Ford Acreage Map – 82,000 net acres | Click to Enlarge

Eagle Ford deal value led a down year for upstream exploration and production deals in the U.S. with almost $9 billion in activity in 2013.

A record was set in 2012 with almost $90 billion in mergers and acquisitions. The value of deals fell more than 42% to ~$52 billion in 2013. Worldwide total deal value fell from $271 billion in 2012 to $138 billion in 2013. [Read more…]

GE – Vess Oil Acquire Woodbine & Eagle Ford Acreage From Enervest – $108 Million

Gains 13,000 Net Acres in Brazos, Grimes, and Madison Counties
Vess Oil Operations Map

Vess Oil Operations Map | Click to Enlarge

GE and Vess Oil have partnered to acquire 13,000 net acres in Brazos, Grimes, and Madison counties from EnerVest for $108 million.

The acreage is producing from the Woodbine and prospective for the Eagle Ford Shale. [Read more…]

B/E Aerospace Acquires LT Energy Services & Wildcat Wireline for $265 Million

Expanding Into the Oilfield Equipment Rental, Logistics and Services Business
Halliburton Operated Wireline Truck

Halliburton Operated Wireline Truck |Click to Enlarge

B/E Aerospace describes itself as the “worldwide leading manufacturer of aircraft passenger cabin interior products…” and the company now can boast about its Eagle Ford equipment rental and wireline businesses in South Texas.

B/E acquired LT Energy Services, an equipment rental company, and Wildcat Wireline who is also active in the Eagle Ford. The company spent ~$265 million to acquire the two companies. [Read more…]

Penn Virginia Sells Eagle Ford Midstream Assets to ArcLight Capital – $100 Million

119 Miles of Pipelines in Gonzales and Lavaca Counties Included
Penn Virginia Eagle Ford Operations Update - Dec 2013

Penn Virginia Eagle Ford Operations Update – Dec 2013 | Click to Enlarge

Penn Virginia is selling its natural gas midstream assets in the Eagle Ford to an affiliate of ArcLight Capital Partners (American Midstream) for $100 million.

The deal includes gas gathering, a gas lift system, 119 miles of pipelines and associated facilities in Gonzales and Lavaca counties.
[Read more…]