Marathon Oil Selling Eagle Ford Acreage in Wilson, Karnes, and Bee Counties

The company plans to divest 97,000 net acres to focus on a core area of 200,000 acres
Marathon Eagle Ford Acreage Map - July 2012

MRO Acreage Map | Click to Enlarge

Marathon Oil is selling almost one-third of its Eagle Ford acreage in South Texas. The company is selling acreage it doesn’t consider essential to its exploration plans and production growth targets are not expected to be adjusted after the sale.

The company currently has approximately 325,000 net acres in the Eagle Ford and plans to focus future development on a core area of 200,000 net acres. The 97,000 net acres being marketed are predominately located in Wilson County, with some acreage and Bee and Karnes counties as well. [Read more…]

KKR Continues Aggressive Shale Strategy in the Eagle Ford

KKR is building on its shale experience. The company is rumored to be in play for Samson, a large U.S. based private exploration and production company.

In the Eagle Ford, KKR’s dealings continue. The company is reported to have recently sold acreage for $70 million. That’s on the back of the $3.5 billion deal KKR and Hilcorp closed with Marathon Oil. [Read more…]

Marathon Oil Closing Acquisitions – Ramping Up to 17 Rigs – Q311 Ops

Marathon Oil closed on the Hilcorp acquisition and has added another 19,000 net acres and a gathering system to its Eagle Ford holdings. The company expects to close on another 6,800 net acres in the Eagle Ford soon. That brings Marathon’s total investment up to $4.5 billion for 167,000 net acres and additional gathering facilities. That’s a hefty price tag, but the company believes it has positioned itself in the core of one of the best shale plays in the U.S. Don’t expect development to slow down any time soon.

Early indications are well performance will exceed expectations.  Current plans are to add another frack crew to the play this year and another in 2012 (total of 4) and to ramp up from 10 rigs currently to 17 by this time next year. Marathon has a strong belief in the long-term value of the Eagle Ford. That’s a win for economic development in South Texas. [Read more…]

GAIL – Carrizo Joint Venture Agreement in the Eagle Ford

The Gas Authority of India Limiated (GAIL) becomes the latest international company to enter the Eagle Ford. On September 28, 2011, GAIL announced a joint venture agreement with Carrizo Oil & Gas on a portion of the company’s Eagle Ford Shale assets. The Indian oil & gas company will gain a 20% interest in 20,200 net acres owned by Carrizo in South Texas. That’s 4,040 net acres to the company for $95 million in total consideration. Almost $64 million will be paid upfront and more than $31 million will be paid over the next year in the form of a drilling carry.

Carrizo is selling an interest in eight existing horizontal wells as part of the deal. Production from the wells is running at a rate of 1,700 barrels per day and 3.8 mmcfd. With consideration for production, the acreage traded for somewhere between $13,000 and $14,000 per acre. That’s off previous acreage prices paid in the Talisman-SM Energy deal, as well as the record Marathon-Hilcorp deal, but don’t forget oil prices are down almost $20 per barrel in that same period. [Read more…]

Marathon, Hilcorp, and KKR Reach $3.5 Billion Eagle Ford Shale Acreage Deal

Marathon Oil reaches an agreement to buy Eagle Ford Shale Acreage for $3.5 billion ($24,822 per acre without consideration for production) from Hilcorp Resources.  Industry experts peg acreage value at approximately $21,000 per acre when considering production. [Read more…]

KKR Forms Partnership to Develop Acreage Within Eagle Ford Shale

KKR – Hilcorp Energy reach an agreement where the two companies will jointly pursue leasing and development of Eagle Ford Shale assets in Atascosa, Bee, DeWitt, Karnes, and Lavaca counties.

“The Company will develop certain acreage within the Eagle Ford, located in an approximately two hundred mile long area in South Central Texas, southeast of San Antonio. The partnership combines a capital commitment from both parties as well as the contribution of a 100,000 net acre Eagle Ford position from Hilcorp. Upon close, Hilcorp will hold 60% and KKR will hold 40% of the Company, with Hilcorp’s management and employees running the day-to-day operations. “With more than two decades of history, Hilcorp is a known leader when it comes to exploring for, developing and producing oil and gas, and Hilcorp’s management is unparalleled in terms of its experience in the South Texas region. This partnership is an endorsement of the founding vision of Hilcorp Energy and the strength and experience of its management team,” John Bookout, Managing Director of KKR, said.”

Read the full press release at KKR.com

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