Hawkwood Energy Acquires East Texas Eagle Ford Acreage

Assets Located Primarily in Brazos and Robertson Counties
Brazos County Eagle Ford Shale Map

Brazos County, TX

Denver-based Hawkwood Energy, announced in early July of 2014 its entrance into the Eagle Ford with the acquisition of producing and non-producing assets in East Texas.

The deal includes 50,000 generally contiguous net undeveloped acres and approximately 1,800 b/d of current oil production, according to company officials. Development of the acquired assets has either targeted or will be prospective for the Eagle Ford Shale and Woodbine formations. The assets extend across Brazos, Leon, Madison and Robertson Counties.

Hawkwood acquired the assets in two separate transactions for undisclosed amounts from Crimson Energy Partners III and Encana Oil & Gas (USA) Inc. The deal with Crimson was mostly for acreage in Brazos County, and Encana’s assets included in the transaction were located primarily in Robertson County.

“We are excited about the growing unconventional activity in the Eagle Ford and Woodbine, as well as the other long term multi-pay opportunities the area has to offer,” said Hawkwood Energy CEO Patrick Oenbring.

Encana Divesting East Texas Assets

Encana has historically been a major industry player for natural gas production, but recently began selling many of its non-core assets to focus on liquids-rich shale fields. Some of those non-core assets were in East Texas, and in April of 2014, Encana announced the sale of approximately 90,000 net acres in Leon and Robertson Counties for $530 million. Company officials did not name a buyer for this transaction, and the deal is expected to close in the third quarter.

In June of 2014, Encana closed on its acquisition of 45,500 net acres in the oil window of the Eagle Ford in South Texas from Freeport-McMoran for $3.1 billion. This newly acquired acreage for Encana represents a new core area.

Read more: Encana Purchases Eagle Ford Assets from Freeport-McMoran – $3.1 Billion

Read more at hawkwoodenergy.com

Eagle Ford Deal Closings – June 2014

Encana Deal is the Largest - $3.1 Billion

Several significant Eagle Ford acquisitions were announced in April and May of 2014. In June of 2014, the details of these acreage deal closings were announced by the buyers, which included Encana Corporation, Sanchez Energy, Panhandle Oil & Gas and Warwick Energy.

Encana Corporation

Freeport-McMoRan Eagle Ford Acreage Map

Freeport-McMoRan Eagle Ford Acreage Map | Click to Enlarge

The Encana deal was by far the largest. The company completed its acquisition of ~45,000 net Eagle Ford acres located in the oil window of Karnes, Wilson and Atascosa Counties from Freeport McMoran on June 20, 2014 for $3.1 billion.

In the first quarter of 2014, the acreage produced 53,000 boe/d. Company officials estimate a drilling inventory of more than 400 locations. The company plans to update its production guidance in its next quarterly report on July 24, 2014.

Read more about the deal: Encana Purchases Eagle Ford Assets from Freeport McMoran

Sanchez Energy

Dimmit County Eagle Ford Shale Map

Dimmit County, TX

Sanchez Energy announced on June 30, 2014 that it closed its massive Eagle Ford acreage deal with Royal Dutch Shell for 106,000 net Eagle Ford acres.

Total consideration for the acquisition was approximately $553.5 million, comprised of the $639 million purchase price less approximately $85.5 million in normal and customary closing adjustments. The transaction was funded from cash on hand from a portion of the net proceeds from the company’s previously issued $850 million senior unsecured 6.125% notes due in 2023.

Read more about the dealSanchez Nearly Doubles Eagle Ford Acreage in $639 Million Deal with Shell

Panhandle Oil & Gas

Panhandle Oil & Gas announced the closing of its Eagle Ford acquisition on June 17, 2014. The deal includes a 16% non-operated working interest in a 11,100 leasehold acres (1,775 net) block that company officials say is held largely by production with 63 producing wells.

Net to the company’s interest, May 2014 production in the newly acquired acreage was 825 boe/d , with an 80% oil cut. The property is currently being developed with a one drilling rig program by the operator, Oklahoma City-based Cheyenne Petroleum Company.

Read more about the deal: Panhandle Oil and Gas Acquires Interest in Eagle Ford Acreage for $80 Million

Warwick Energy

Read more about the deal: Warwick Energy Buys Eagle Ford’s R/C Sugarkane for Undisclosed Amount

Closing details: Warwick Energy Closes Deal for 7,300 Net Eagle Ford Acres

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