Houston-based Alta Mesa LP, an Eagle Ford player with acreage in Karnes, Goliad and DeWitt Counties, announced an increase in its borrowing base from $350-million to $375-million this week. Alta Mesa's credit facility is provided by a syndicate of ten banks agented by Wells Fargo Bank, N.A. and co-agented by Union Bank, N.A.
Alta Mesa Recent Eagle Ford Divestiture
Alta Mesa entered the Eagle Ford in 2010 with its acquisition of the Eagleville Field from Meridian Resources Corp. Alta Mesa also has interest across East Texas, South Louisiana and the Sooner trend in Oklahoma.
In the first quarter of this year, Alta Mesa sold some its interests in the Eagleville Field to Memorial Production Partners in a $173 million deal, divesting 15,200 (800 net) acres in Karnes County.
Alta Mesa Q3 Eagle Ford Operations
During the third-quarter, Alta Mesa's Eagle Ford production dropped 400 boe/d in the Eagle Ford quarter-over-quarter to 3,000 boe/d. Company officials cited the partial Eagleville divestiture during the first-quarter as the primary reason for the drop in the company's most recent operations update released this week.
Alta Mesa is focused on downspacing and increasing its operational efficiencies in the Eagle Ford. Currently, staggered 20 acre downspacing is being tested. Company officials say that could add ~3 years of additional drilling in the Upper Eagle Ford at the company's current 2 rig pace. As of November of 2014, Alta Mesa expects to place four additional 20-acre Upper Eagle Ford Shale staggered spaced wells online. In 2014, the company's capital expenditures are expected to total $50-million in the Eagle Ford.
Read more at altamesa.net