Statoil Is Now An Eagle Ford Operator - Takes Over 50% Of Talisman's Operations

July 11, 2013 R.T. Dukes

Statoil now operates half of the company's Eagle Ford venture. The company has almost three years of experience in the play, but did not operate a rig in the area until April of this year.

Since the first quarter, Talisman, Statoil's partner, has been transferring 50% of the JV's operations to the Norwegian company.

The Talisman - Statoil Eagle Ford JV has been active in South Texas for almost three years. When the JV was first agreed it was understood Statoil would begin to operate 50% of the venture at some point.

That day has come. Statoil will operate assets located in Bee, DeWitt, Karnes, and Live Oak counties, while Talisman will retain operations in Dimmit, La Salle, and McMullen counties.

The companies' Eagle Ford position was built over the past few years. A few highlights are included below.

“Statoil is the logical buyer I’d wager they would have likely agreed to a transaction if the price Talisman was asking wasn’t a little (or too) high. ”

The Talisman article from June is an interesting one. It was leaked that Talisman is shopping for Eagle Ford buyers.

Talisman announced plans to divest non-core assets earlier in the year, but adding the Eagle Ford to that group was a bit of a surprise. It honestly sounds like they are looking for a price they can't say no to. It is my opinion Statoil is the logical buyer and would have likely agreed to a transaction if the price Talisman was asking wasn't a little (or too) high.

Talisman Energy Shopping For Eagle Ford Buyers

June 19, 2013 R.T. Dukes

Talisman Energy has retained the Royal Bank of Canada to determine if buyers are interested in the company's Eagle Ford acreage.

Talisman previously announced plans to divest $2-3 billion in non-core assets. The Eagle Ford is a core holding, but there are hopes the company could get as much as $2 billion for its 74,000 acres and 30,000 boe/d (2013 guidance).

Talisman has already transferred operatorship of three rigs to Statoil, so the company's operations are smaller today. Statoil will operate half of the JV's acreage once they get to full scale. Talisman and Statoil agreed to an Eagle Ford JV in 2010.

The most logical buyer is Statoil, but we'll have to wait to see if the company has the confidence in the area to pay a premium for complimentary acreage.

Talisman estimates its Eagle Ford acreage holds:

450 mmboe in resource
1,000 gross remaining well locations
Wells are 60% liquids
Average IP is 1,100 boe/d
Well costs average $8.5 million

A Reuters article also noted:

“One of the sources said that outperformance by peers in the Eagle Ford could be adding to pressure on the Calgary, Alberta-based company.”

Read the full article at reuters.com

Double Eagle Pipeline Moving Eagle Ford Condensate to Corpus Christi

June 5, 2013 R.T. Dukes

Double Eagle Pipeline - Eagle Ford Condensate System

Double Eagle Pipeline, LLC, a joint venture between Kinder Morgan and Magellan Midstream, has started moving condensate to Corpus Christi.

The pipeline is part of a project that was started by Copano and Magellan, but is operated by Kinder Morgan who purchased Copano earlier in 2013.

Condensate is moving from a truck unloading facility in Three Rivers to Magellan's Corpus Christi Terminal. From the Corpus Terminal, condensate can reach local petrochemical plants, as well as water borne export options.

This leg is just a portion of what is a $150 million project that includes 140 miles of 12-inch pipelines. The system connects with other Kinder Morgan pipelines in the area as well.

The next leg of the pipeline from Gardendale (near Cotulla) to Three Rivers is expected to be online in the third quarter of 2013. Initial capacity is planned at 100,000 b/d, but the system can be expanded to handle 150,000 b/d.

The pipeline was supported by long-term commitments from Talisman and Statoil.

OTC Sheds Light On New Technologies

May 10, 2013 R.T. Dukes

The Offshore Technology Conference (OTC) has really outgrown its name. While the name indicates an offshore focus, you'll find companies who service the oil & gas industry in all walks on and off shore.

Attendance set a record at almost 105,000. That's the highest since 1982.

If you didn't attend, you missed out on over 2,700 industry exhibits displaying new technologies that improve oil and gas exploration and operations.

A few highlights include:

Statoils remote welding robot that allows a company to tie into a live pipe
Geogrid technology from Tensar that strengthens rig pads and can be used to decrease erosion
Water desalination technology advances
New, improved version of GE's blind sheer ram (part of the BOP)
A rig that is almost fully automated and robotic - no humans on the deck floor
Downhole pipe cutting tool that leaves smooth edges

We only spent a day at the OTC conference, but you can read more about the whole week at fuelfix.com

Regency - Talisman - Statoil Plan $150 Million Expansion of Eagle Ford Gathering Assets

May 14, 2012 R.T. Dukes

Regency Energy Partners announced a $150 million expansion of the company's Edwards Lime Gathering Joint Venture. The Eagle Ford pipeline and midstream expansion will bring capacity of the company's system up to 160 mmcfd of natural gas and 17,000 b/d of crude. Regency owns 60% of the joint venture and operates the assets. Talisman and Statoil own the remaining 40%.

Talisman and Statoil are supporting the expansion by dedicating production from their area of mutual interest. The expansion is supported through fee-based contracts and is scheduled for completion in the fourth quarter of 2012.

Read the full press release at regencyenergy.com