Anadarko - KNOC Eagle Ford Map 2011
Anadarko and KNOC have reached an agreement for a $1.55 billion JV in the Eagle Ford. KNOC's payment will be made in the form of a cost carry paying 100% of Anadarko's 2011 development costs in the basin and 90% thereafter until the $1.55 billion is exhausted.
Under the terms of the agreement, KNOC will receive approximately 80,000 net acres in the Eagle Ford and approximately 16,000 net acres prospective for the Pearsall Shale.
KNOC also earns the right to participate with a 25% working interest in associated gathering systems and facilities.
“This transaction demonstrates the substantial embedded value of our Eagleford acreage position assembled primarily in the higher-margin condensate window of the play, while further enhancing our capital efficiency in a tax-effective manner,” Anadarko President and Chief Operating Officer, Al Walker said. “We have expanded our midstream infrastructure and established various service agreements concurrent with our drilling pace in the Eagleford Shale, leading Anadarko to become the largest producer in the play during the fourth quarter of 2010. As a result, almost all of our completed wells are on line, with approximately 75 percent of our sales volumes comprised of liquids. As announced in February, we plan to further accelerate the value of this play by increasing our operated rig count from nine to ten early in the second quarter of this year.”