PetroQuest Sells Eagle Ford Assets – $9.7 Million

Purchase Price Nearly 50% More Than PV-10 of $6.6 Million
PetroQuest, Inc. Operations Map

PetroQuest, Inc. Operations Map | Click to Enlarge

PetroQuest Energy, Inc. (NYSE: PQ) announced the completion of its Eagle Ford assets sale at the end of September, 2014. The Houston, TX-based company netted $9.7 million from the deal.

PetroQuest estimates the operating cash flow generated from its Eagle Ford assets during the first six months of 2014 totaled ~$2-million on average with daily production of ~195 boe/d. At the end of June, the company estimated proven natural gas reserves associated with the assets totaled approximately 2.1 Bcfe, with an estimated discounted net cash flow (PV-10*) of $6.6-million.

Overall, this sale a good deal for PetroQuest, considering the purchase price was nearly 50% higher than PV-10. The company did not disclose the buyer for the assets.

PetroQuest will likely re-invest the proceeds from this sale in another Texas play. The company’s core focus areas are in the Woodford, Cotton Valley and the Gulf Coast.

PV-10: present value of estimated future oil and gas revenues, net of estimated direct expenses, discounted at an annual discount rate of 10%.

Read more at petroquest.com

Juneau Energy Adds 10,264 Acres in East Texas Eagle Ford

Company Holds 15,000 Net Non-Contiguous Acres in the Eagle Ford
East Texas Eagle Ford Counties in which Juneau Energy is Active

East Texas Eagle Ford Counties in which Juneau Energy is Active

Juneau Energy, LLC, a subsidiary of Leucadia National Corporation, announced the acquisition of oil and gas leases in the emerging East Texas Eagle Ford Shale, consisting of approximately 10,264 net acres primarily in Brazos and Burleson counties. Neither the buyer, nor the purchase price for the acreage were disclosed in a company press release from mid September of this year.

Juneau CEO Brad Juneau, said, “this transaction, along with the existing acreage provides a contiguous block of acreage in excess of 13,500 net acres and allows Juneau Energy to immediately begin and control the development process of these assets.”

With other non-contiguous acreage, the company holds in excess of 15,000 net acres in the Eagle Ford Shale play. The acquisition closed on September 17, 2014.

Juneau is a privately held acquisition and development company, with assets in East Texas and Oklahoma.

Other Recent East Texas Eagle Ford Developments

In July, Denver-based Hawkwood Energy, announced its entrance into the Eagle Ford with the acquisition of producing and non-producing assets in East Texas.

Read more: Hawkwood Energy Acquires East Texas Eagle Ford Acreage

And in June, Comstock Resources Inc. announced the results of its first well drilled in its East Texas Eagle Ford Shale acreage in Burleson County, TX.

The Henry A #1H test well had a peak 24-hour average production rate of ~1,267 boe/d, with a ~80% oil cut. The well was drilled to a vertical depth of 9,514 feet, and had a 6,841 foot completed lateral which was stimulated with 17 stages and 10.2 million pounds of proppant.

Read more: Comstock Reveals Results from First East Texas Eagle Ford Well

Read more at juneauenergy.com

Cabot Grabs More Eagle Ford Acreage in Oil Window

$210 Million Deal Includes 30,000 Net Acres
Cabot Eagle Ford & Pearsall Shale Map

Cabot Eagle Ford & Pearsall Shale Map | Click to Enlarge

Houston-based Cabot Oil & Gas Corp. has agreed to pay $210-million for approximately 30,000 net acres in the heart of the Eagle Ford Shale oil window from an undisclosed seller. 17,000 net acres included in the transaction are directly adjacent to Cabot’s Buckhorn operating area, which covers parts of Frio, La Salle and Atascosa Counties. The acquisition increases the company’s total Buckhorn leasehold position to 60,000 net acres, and its total Eagle Ford position to 83,000 net acres.

Cabot is currently testing 300-foot downspacing across its existing Buckhorn position, which company officials say will add an additional 45 net locations on the acquired leasehold. As a result of this recent transaction, Cabot has added a fourth operated rig in the Eagle Ford to begin drilling on the newly acquired properties. In May, the company indicated it would expand its Eagle Ford drilling program in the third quarter of this year.

Read moreCabot Oil & Gas to Expand Eagle Ford Drilling Program

“In addition to the number of new locations, this acreage will allow synergies in our operations on many fronts including infrastructure and facility utilization,” said Cabot President and CEO Dan O. Dinges.

According to Cabot officials. the assets are producing approximately 1,600 boe/d (92% liquids). Based on the company’s current spacing configuration of 400 fteet between laterals, Cabot has identified 191 net locations on the additional Buckhorn area acreage with an average lateral length of over 6,500 feet.

The transaction is expected to close in October 2014.

Read more at cabotog.com

Texas American Resources, LLC Exits Eagle Ford

$135-Million Deal Includes 55,000 Net Eagle Ford Acres
Texas American Resources Eagle Ford Area Map

Texas American Resources Eagle Ford Area Map | Click to Enlarge

Austin, Texas-based Texas American Resources, LLC exits the Eagle Ford Shale this month, with the sale of its South Texas assets in Dimmit, Frio, La Salle, and Zavala Counties. The company will now shift its operational focus to its remaining assets in the Texas Panhandle.

Texas American Resources announced the closing of the $135-million deal this week to an undisclosed buyer. Included in the sale are the company’s existing production, proved reserves, and Eagle Ford and Austin Chalk oil development opportunities across 55,000 net Eagle Ford acres.

Texas American Resources CEO David Honeycutt, said, “we are pleased with our outcome in South Texas. The sale is accretive to both the buyer and seller. There are many remaining opportunities in our legacy South Texas portfolio and our buyer sees and embraces the upside the assets offer.”

Proceeds from the sale will be used to repay debt, and accelerate development of the Texas Panhandle assets.

Read more at texasarc.com

EVEP & EnerVest Agree to Sell Certain Eagle Ford Assets

Sale Includes Deep Rights in Eagle Ford Formation in Burleson, Brazos and Grimes Counties - $218 Million
EVEP/EnerVest Eagle Ford Acreage Map

EVEP/EnerVest Eagle Ford Acreage Map|Click to Enlarge

Houston-based EV Energy Partners (EVEP) and Enervest, Ltd. are selling certain deep rights in the Eagle Ford formation in Burleson, Brazos and Grimes Counties for $218-million. EVEP, a master limited partnership of which EnerVest is the controlling member of the general partner, will net $30-million from the deal. The buyer was not disclosed.

EVEP officials confirmed all non-Eagle Ford formation rights, including the Austin Chalk formation and corresponding production, will be retained for both EVEP and EnerVest. The transaction is expected to close by October 15th.

EVEP CEO Mark Houser, said, “with the development of the East Texas Eagle Ford under our Austin Chalk acreage and the rapid build-up of drilling rigs and capital requirements, we decided to capitalize on the opportunity and have entered into an agreement to sell our Eagle Ford formation rights in three of the counties where there has been significant activity to date. We plan to redeploy the proceeds in acquiring longer-life, high PDP content reserves.”

EVEP’s remaining position in the East Texas Eagle Ford covers portions of Lee, Fayette and Washington Counties. Houser indicated in EVEP’s second-quarter report that the company will retain this acreage until more drilling and production has taken place to further exploit its potential.

Read more at evenergypartners.com

Baron Energy Inc. Adds to Eagle Ford Acreage

Deal Includes 8,082 Acres in Frio County, TX
Frio County Eagle Ford Shale Map

Frio County, TX

A subsidiary of San Marcos, Texas-based Baron Energy, Inc. has purchased 8,082 Eagle Ford acres in Frio County, TX, including eight producing leases, for an undisclosed amount. The acquisition was announced by the company in early August of 2014, with an effective date of July 1, 2014.

According to Baron officials, the producing leases have gross production of 204 b/d oil and 180 mcf/d from 14 producers, and a drilling inventory of new wells and recompletions for up to five years. The company is the operator for all of the recently acquired properties.

CEO Ronnie Steinocher, said in a prepared statement, “this acquisition increases our anticipated consolidated revenue tenfold to approximately $425,000 per month and provides the means to further increase revenue over the next 12 months by drilling new horizontal wells.”

The acquisition satisfies a major goal for Baron, according to Steinocher, providing the company with substantial future growth opportunities. Based on geological analogs, company officials believe new horizontal wells targeting the Austin Chalk could result in initial production (IP) rates of 150-500 b/d oil with 50,000 to 300,000 bbl of ultimately recoverable crude oil per well.

Read more at baronenergy.com

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