Eagle Ford Deal Closings - June 2014

July 1, 2014 Kirk Eggleston

Several significant Eagle Ford acquisitions were announced in April and May of 2014. In June of 2014, the details of these acreage deal closings were announced by the buyers, which included Encana Corporation, Sanchez Energy, Panhandle Oil & Gas and Warwick Energy.

Encana Corporation

The Encana deal was by far the largest. The company completed its acquisition of ~45,000 net Eagle Ford acres located in the oil window of Karnes, Wilson and Atascosa Counties from Freeport McMoran on June 20, 2014 for $3.1 billion.

In the first quarter of 2014, the acreage produced 53,000 boe/d. Company officials estimate a drilling inventory of more than 400 locations. The company plans to update its production guidance in its next quarterly report on July 24, 2014.

Read more about the deal: Encana Purchases Eagle Ford Assets from Freeport McMoran

Sanchez Energy

Sanchez Energy announced on June 30, 2014 that it closed its massive Eagle Ford acreage deal with Royal Dutch Shell for 106,000 net Eagle Ford acres.

Total consideration for the acquisition was approximately $553.5 million, comprised of the $639 million purchase price less approximately $85.5 million in normal and customary closing adjustments. The transaction was funded from cash on hand from a portion of the net proceeds from the company's previously issued $850 million senior unsecured 6.125% notes due in 2023.

Panhandle Oil & Gas

Panhandle Oil & Gas announced the closing of its Eagle Ford acquisition on June 17, 2014. The deal includes a 16% non-operated working interest in a 11,100 leasehold acres (1,775 net) block that company officials say is held largely by production with 63 producing wells.

Net to the company's interest, May 2014 production in the newly acquired acreage was 825 boe/d , with an 80% oil cut. The property is currently being developed with a one drilling rig program by the operator, Oklahoma City-based Cheyenne Petroleum Company.

Warwick Energy

Read more about the deal: Warwick Energy Buys Eagle Ford's R/C Sugarkane for Undisclosed Amount

Closing details: Warwick Energy Closes Deal for 7,300 Net Eagle Ford Acres

Sanchez Energy's Reserves Near 60 Million Barrels - Production Surges in Q4

January 28, 2014 R.T. Dukes

Sanchez Energy's proved reserves are up 178% from a little more than 20 million boe at year-end 2012 to 58.9 million boe at December 31, 2013.

Reserves increased as a result of successful development in the Eagle Ford and multiple acquisitions during 2013.

In the fourth quarter alone, Sanchez grew Eagle Ford production 60% over the third quarter to 18,810 boe/d. More impressively, the company increased production year over year by 905%.

Also read:Sanchez Energy Plans to Spend $600 Million in the Eagle Ford in 2014

[ic-l]A total 32 net wells were brought online in the fourth quarter 15 additional wells are in some stage of drilling and completion.

A strong fourth quarter puts the company is a great position to reach the high end or outperform guidance of 21,000-23,000 boe/d in 2014. Contributions from the Tuscaloosa are not accounted for in guidance, so success there will only increase the likelihood of the company outperforming guidance.

“2013 was a transformative year for the Company. Our production and reserves grew tremendously as a result of successfully executing our 2013 capital plan and completing several acquisitions.”

— Tony Sanchez, III, CEO

Sanchez Energy was busy in 2013. The company made several acquisitions to supplement its acreage in the Eagle Ford and stepped out of the play for the first time by acquiring acreage in the Tuscaloosa Marine Shale.

A few highlights from 2013 include:

March 2013 - Sanchez Acquires Hess' Eagle Ford Assets for $265 Million
July 2013 - ZaZa Sells Eagle Ford Assets to Sanchez Energy for $28.8 Million
August 2013 - Sanchez Energy Pays $78 Million to Acquire 40,000 Net Acres in the Tuscaloosa Marine Shale
September 2013 - Sanchez Energy Acquires Rock Oil's Eagle Ford Properties for $220 Million
October 2013 - Sanchez Energy Increases Q3 2013 Production Seven Fold Over Q3 2012

Drilling in 2014 will be focused on operated properties and the company is moving forward with development at 40-acre spacing in the Cotulla, Palmetto, and Wycross areas.

Read the full operational update at sanchezenergycorp.com

Eagle Ford Region Was The Most Active Area For Deals - PWC

September 3, 2013 R.T. Dukes

The Eagle Ford region topped PWC's list of shale play merger and acquisition activity in the second quarter of 2013. PWC listed the Bakken, Eagle Ford, and Marcellus as the most active shale plays in terms of deal activity.

The deal market has been slower this year, but there has still been a lot of money changing hands in South Texas.

So far in 2013, there have been more than a dozen significant deals in the Eagle Ford:

August

July

May

Crimson Exploration & Contango Oil & Gas Merge

April

March

January

Kinder Morgan - Copano Reach $5 Billion Deal - Eagle Ford Gathering Included

Don't let us miss anything, share other deals or your thoughts in the comment section below.

Penn Virginia Acquires Eagle Ford Acreage in Gonzales & Lavaca Counties

October 4, 2012 R.T. Dukes

Penn Virginia acquired 4,100 net acres in Gonzales and Lavaca counties for $10 million. Working interests owners and joint venture partners will acquire portions of the acreage, so Penn Virginia position will only increase by 3,000 net acres. The company now has 40,100 gross (30,000 net) acres targeting the Eagle Ford.

The acreage is comprised of 3,200 net acres in Gonzales County and 895 net acres in Lavaca County. The acreage in Gonzales is adjacent to company's development area and the acreage in Lavaca was referred to as "complementary". The company expects it acquired 30 potentialEagle Ford drilling locations in total.

Penn Virginia reports 54 wells are on production in the Eagle Ford, with over 200 potential drilling locations. The company has targeted the volatile oil window and reported initial production rates of more than 1,000 boe/d per well. The company has an 83% working interest in its Gonzales acreage and a 57% interests in its Lavaca County acreage.

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

November 3, 2011 R.T. Dukes

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.

Today, as Marathon Oil closes on the Hilcorp acquisition of 141,000 net acres in the Eagle Ford shale, largely in the core of the play, we already see better performance from these assets than originally anticipated. We begin this first day as operator of these key assets already producing nearly 1,000 net barrels of oil equivalent per day (boepd) more than our originally projected year-end exit rate. We also are closing on or have agreements to acquire additional acreage, also in the core of the play, that are expected to increase our total Eagle Ford position to more than 300,000 net acres by year end. Combined with our substantial positions in the Bakken and Anadarko Woodford, along with the emerging Niobrara shale play .........assets......enabling us to deliver 5 to 7 percent compound average production growth, 80 percent of which is estimated to be liquids, from 2010 to 2016.
Recent Eagle Ford transactions are expected to be funded largely from existing cash. Marathon Oil now expects its year-end acreage position across the Eagle Ford to be in excess of 300,000 net acres. Marathon Oil's 2011 Eagle Ford exit rate is forecast to be approximately 18,000 net boepd, of which 80 percent is estimated to be liquids.
Marathon Oil is ramping up to 10 rigs by the end of the year and is scheduled to add a third crew dedicated to hydraulic fracturing in January 2012 and a fourth crew in June 2012. By this time next year, the Company expects to have 17 rigs operating in the play.

Read the full press release at marathonoil.com