Lonestar Resources - Amadeus Deal Creates Public Company

Lonestar Resources Operations Map

Lonestar Resources is an independent operator with assets in Barnett, Bakken, and Eagle Ford shale plays. The company has over 5,000 acres prospective for the Eagle Ford spread across Dimmit, La Salle, and Wilson counties.

The company made offers for Eureka Energy earlier in the year, but bowed out as Aurora Oil & Gas increased its bid. The company is now being acquired by an Australian company, Amadeus Energy.

Amadeus is a public company that was created by Ecofin Water & Power Opportunities for the sole purpose of seeking oil & gas investment opportunities.

“We believe this will create a company with a significantly more compelling investment proposition…and the potential for substantial future earnings growth from both existing assets and new acquisitions,”

Amadeus chairman Craig Coleman said. The new company will change its name to Lonestar Resources and we expect the well capitalized operator to speed up the pace of development in the Eagle Ford.

Pioneer's Barnett Shale Assets Will Be Sold to Fund Eagle Ford Development

PXD Barnett Combo Map

Pioneer Natural Resources plans to sell 155,000 gross acres in the Barnett Shale to fund development in the its West Texas Permian Basin and South Texas Eagle Ford Shale properties. Approximately two-thirds of the company's Barnett acres are deemed "Barnett Combo" acres that are prospective for liquids-rich shale gas.

Pioneer's current production is 7,000 boe/d with 55% attributed to oil/NGLs and 45% attributed to natural gas.

“The sale of our Barnett Shale properties will allow us to strategically reallocate capital to our higher-return, core assets in the Spraberry vertical play, the horizontal Wolfcamp Shale play and the Eagle Ford Shale. We plan to utilize the net proceeds from the divestiture to reduce indebtedness under Pioneer's credit facility.”

The data room will open in October and Pioneer plans to close the transaction in Q1 of 2013.

Read the full press release at pxd.com

Carrizo - Atlas Deal Provides Cash for the Eagle Ford

Carrizo Oil and Gas has agreed to sell a portion of its Barnett Shale assets to Atlas Energy for $190 million. The deal provides capital that Carrizo will use to execute its liquids  growth strategy, which is primarily focused in the Eagle Ford.

The Company intends to use the net proceeds from this sale to repay borrowings under its revolving credit facility and use the excess proceeds to partially fund its 2012 capital expenditures plan, largely in the Eagle Ford play.

This deal is probably not the last deal you'll see this year in which operators shift resources from dry-gas to wet plays like the Eagle Ford

Read the full press release at crzo.net

TXDOT Task Force to Address Barnett & Eagle Ford Shale Roads

Texas Department of Transportation officials are convening a task force to address road damage associated with oil & gas activity in the South Texas Eagle Ford Shale and North Texas Barnett Shale regions.

Within 90 days, the task force will convene an executive-level meeting of local governments, law enforcement, transportation officials, Railroad Commission, energy industry leaders.

• Continue research, data gathering and sharing.
• Identify future energy developments.
• Strategize use of new technology.
• Discuss potential legislative issues.
• Develop funding strategies.
• Routinely monitor, evaluate and revise plans.

Carrizo Oil & Gas Eagle Ford Reserves Up 90% - 2011

Carrizo Eagle Ford Shale Map

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.

The company's first 26 wells have come online with initial production rates ranging from 600 to 1,000 bopd. 20 gross (15.5 net) wells were brought to production in 2011. The company still has a backlog of almost 10 wells waiting to be brought to production. While  a very positive operations update, there were delays with coiled tubing services and mechanical problems requiring attention before wells were completed.

Production from the fourth quarter of 2011 was negatively impacted by delays in bringing multi-well drilling pads on production in the Eagle Ford. These delays were associated with availability of coiled-tubing drilling services and mechanical issues affecting ancillary well site equipment. The conditions causing these delays have been resolved and performance of our new wells in both the Eagle Ford and Niobrara continue to meet or exceed our expectations.

Carrizo has 4 rigs active now and will operate 3 net rigs throughout 2012 spending approximately $320 million of the company's $440 million capital budget in the Eagle Ford Shale. That's a quick shift for the historically gas focused company.

Capital budget allocations for 2012

• $320 million - Eagle Ford Shale
• $62 million - Marcellus Shale
• $43 million - Niobrara Formation
• $15 million - Barnett Shale

The company's liquids/oil operations are focused in the Eagle Ford and Niobrara Shale of Colorado. The company will spend approximately 10% of its capital budget in the Niobrara this year, while $77 million will be spent in natural gas plays.

Read the entire press release at crzo.net