During the third-quarter of 2014, Woodlands, TX-based Anadarko Corp. entered into a joint venture (JV) with private equity firm KKR & Co. to develop a portion of Anadarko's East Texas/Eaglebine acreage.
Under the terms of the deal, KKR agreed to carry $442-million of Anadarko's future capital expenditures in Brazos, Burleson, and Robertson Counties, situated northwest of Houston, TX. In exchange, KKR received 36,000 net acres in the JV area of mutual interest (AMI) and 40% of Anadarko's working interest (WI) in 33 wells. In a prepared release, KKR company officials said through long-term development of the field, they expect to participate in more than 500 wells.
Anadarko will remain the operator of the acreage with an average post-transaction WI of approximately 51% in the JV AMI. Anadarko company officials say the transaction will enable the company to more rapidly develop this short-cycle oil opportunity with the addition of incremental drilling rigs, while further enhancing Anadarko’s capital efficiency and flexibility.
During the third-quarter, Anadarko spud five wells with one rig in the Eaglebine. Production from these new wells increased the company's net sales volumes to more than 3,000 boe/d, with a 90% oil cut, according to Anadarko's third-quarter operations update.