The Lower 48 and Latin America accounted for ~28% of the company’s total production.
Carrizo Oil & Gas has allocated $385 million of its $500 million development budget to drilling & completing wells in the South Texas Eagle Ford. The company plans to keep three rigs running in the play throughout 2013. [Read more…]
Apollo and El Paso reached a $7.15 billion agreement for El Paso’s E&P segment. The deal is subject to the closing of the El Paso-Kinder Morgan pipeline merger.
El Paso’s exploration and production segment has been on the sales block since the Kinder Morgan deal was announced, but the question remained whether the assets would be sold in pieces or all together.
While Apollo has been rumored to be considering the deal, it comes as a bit of a surprise that the private equity group acquire El Paso E&P. Most industry experts thought El Paso would be a great fit for an international company looking to expand its footprint in the U.S. (e.g. Statoil-Brigham). Low natural gas prices that are limiting many companies’ upstream budgets might have opened a window for the Apollo group to step in. [Read more…]
Carrizo Oil & Gas announced year-end results along with updates from the company’s development in oil plays. Eagle Ford Shale reserves increased 90% year over year from 15 mmboe to 28.5 mmboe.
Carrizo’s 41,000 acres is primarily located in the gas condensate window, of La Salle and McMullen counties, where expectations are for a production stream of 75% liquids and 25% rich gas. Oil in the area is selling at an average of $4 better than NYMEX prices, so even with infrastructure constraints we’re seeing the benefits of proximity to the Gulf Coast refining complex. [Read more…]
Anadarko operated an average of 10 rigs in 2011, while growing gross production from 27,000 barrels equivalent per day to 77,000 barrels equivalent per day year over year. Production was comprised of 50,000 bbls/d of liquids and over 160 mmcfd of gas.
The company grew company wide liquids production by 10% in 2011 and expects comparable growth rates going forward. Liquids growth was primarily driven by the Bone Spring, Eagle Ford Shale, Greater Natural Buttes area, and the Wattenberg field.
Horizontal liquids plays have become the focus of what is a diverse natural gas portfolio. Anadarko was well positioned to transition activity to liquids plays as natural gas prices fell. The Eagle Ford and Wattenberg will be important development areas for many years to come.
Highlights from the quarterly call included: [Read more…]
Carrizo Oil & Gas plans to reach 7,000 bopd by the end of 2012 and is already surpassing current production goals. The Eagle Ford and Niobrara shales have added almost all of the liquids production to Carrizo’s production mix that was previously dominated by natural gas. Company wide liquids production stands at over 6,000 bopd, so it doesn’t look like they’ll have any trouble hitting 7,000 bopd with 20+ Eagle Ford wells planned in 2012. [Read more…]