By Andrea: http://oilshalegas.com
Talisman Energy Inc. (TLM) recently announced that it has reached an agreement to acquire additional properties in the Eagle Ford shale play in south Texas. Talisman and Statoil have agreed on a joint-venture to acquire 97,000 net acres of high-quality, liquids rich Eagle Ford shale properties from Enduring Resources for a total consideration of US$1.325 billion.
"This transaction is an excellent fit with Talisman's strategy," said John A. Manzoni, President and CEO. "Talisman now has material positions in three world-class shale plays in North America. This acquisition is in the liquids rich window of the Eagle Ford and complements our existing acreage. We are very pleased to be working with Statoil, a respected global company with whom we have an excellent working relationship."
The Transaction
Talisman and Statoil have agreed to create a 50/50 joint-venture across the Eagle Ford shale play, with Talisman as the initial operator. The net cost to Talisman of this new acreage will be approximately US$485 million, after Statoil purchases a 50% working interest in Talisman's existing 37,000 net acres in the Eagle Ford. Upon completion of these transactions, Talisman will hold approximately 70,000 net acres, predominantly in the liquids rich heart of the play.
Talisman and Statoil have agreed that Statoil will operate approximately 50% of the joint assets within three years. The transaction is expected to close by year end.
The Assets
The acquisition includes 97,000 net acres of land (50/50 joint-venture between Talisman and Statoil) in the liquids rich window of the Eagle Ford shale. The purchase price equates to about US$10,900 per acre, taking into consideration Enduring's existing production of 5,500 boe/d, as well as gas processing infrastructure that comes with the acquisition. In addition, the companies have an option to jointly acquire up to an additional 22,000 net acres.
Approximately 55,000 net acres are held by existing production. There are currently three horizontal rigs operating on the leases, which is more than sufficient to hold this land. The land position consists of large contiguous blocks across the Eagle Ford, with a thick, high-porosity shale section, and high expected ultimate recovery factors (EURs). EURs are expected to average at least 660,000 boe per well.
There is currently 5,500 boe/d of production, including six Eagle Ford wells which are on-stream. An additional eight wells have been drilled; three wells are drilling, with nine additional wells planned by year-end. Initial production rates on the two most recent wells have averaged 3,700 boe/d (including 1,000 bbl/d of liquids) and 2,300 boe/d (including 425 bbl/d of liquids). There are numerous egress options available to support future production growth.
Strategic Context
The company believes there is an estimated 800 million boe of net contingent resource on the acquired properties, of which approximately 50% is expected to be condensate or natural gas liquids. Talisman estimates there are over 1,000 net drilling locations on the newly acquired acreage. The company believes that similar to its Marcellus and Montney shale plays, its Eagle Ford play will have a full-cycle break even of less than US$4 per mcf.
Shale gas and liquids development is an important part of Talisman's strategy for long-term, profitable growth. The company has established large, high-quality land positions in the Marcellus shale (Pennsylvania), Montney shale (British Columbia) and Utica shale (Quebec).
The addition of this new acreage gives Talisman a material core position in the liquids rich window of the Eagle Ford shale play. The company believes its shale plays have the critical mass needed to support Talisman's objective of becoming a leading, returns focused shale producer in North America.
The company is committed to operating in a safe, environmentally responsible manner and to maintaining good working relationships with local communities near our areas of operations.
Barclays Capital acted as an advisor to Talisman on this transaction.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Showing posts with label vertical drilling. Show all posts
Showing posts with label vertical drilling. Show all posts
Sunday, October 24, 2010
Saturday, October 23, 2010
Zavala County, Texas: Austin Chalk Update
By Andrea: http://oilshalegas.com
Eagleford Energy Inc. (EFRDE.OB) has been notified by Dawsey Operating, LLC, a Texas based engineering and consulting firm, that the rig allocated to drill an initial test well of the Eagle Ford shale formation will mobilize onto location at the Company's Matthews lease in Zavala County, Texas starting tomorrow. The Company intends to drill vertically through the Eagle Ford and log key formations including the San Miguel sands, the Austin Chalk and the Eagle Ford shale. After logging, the well will be drilled approximately 4,000 feet horizontally through the Eagle Ford shale formation.
The Matthews Lease comprises 2,629 acres of land (or 4 square miles) and is situated adjacent to the Redhawk land block under development by Petrohawk Energy Corporation (HK). Eric Johnson, VP Operations at Dyami Energy LLC, a Texas based subsidiary of Eagleford Energy, stated, "Our primary target is the Eagle Ford shale. Petrohawk has reported 355 barrels a day of oil production from its horizontal well on the property next door. Given the blanket nature of the Eagle Ford formation in this area we are excited by our prospects. We also plan to run tests on the San Miguel formation to gather important petro-physical data on the significant amount of heavy oil in place."
Eagleford Energy's consolidated working interest in the well before payout is 85% (69% working interest after payout).
Zavala County, Texas is part of the Maverick Basin of Southwest Texas and downdip from the United States Geological Studies north boundary of the Smackover-Austin-Eagle Ford total petroleum system. This area is often referred to as the oil window of the present Eagle Ford shale play.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Eagleford Energy Inc. (EFRDE.OB) has been notified by Dawsey Operating, LLC, a Texas based engineering and consulting firm, that the rig allocated to drill an initial test well of the Eagle Ford shale formation will mobilize onto location at the Company's Matthews lease in Zavala County, Texas starting tomorrow. The Company intends to drill vertically through the Eagle Ford and log key formations including the San Miguel sands, the Austin Chalk and the Eagle Ford shale. After logging, the well will be drilled approximately 4,000 feet horizontally through the Eagle Ford shale formation.
The Matthews Lease comprises 2,629 acres of land (or 4 square miles) and is situated adjacent to the Redhawk land block under development by Petrohawk Energy Corporation (HK). Eric Johnson, VP Operations at Dyami Energy LLC, a Texas based subsidiary of Eagleford Energy, stated, "Our primary target is the Eagle Ford shale. Petrohawk has reported 355 barrels a day of oil production from its horizontal well on the property next door. Given the blanket nature of the Eagle Ford formation in this area we are excited by our prospects. We also plan to run tests on the San Miguel formation to gather important petro-physical data on the significant amount of heavy oil in place."
Eagleford Energy's consolidated working interest in the well before payout is 85% (69% working interest after payout).
Zavala County, Texas is part of the Maverick Basin of Southwest Texas and downdip from the United States Geological Studies north boundary of the Smackover-Austin-Eagle Ford total petroleum system. This area is often referred to as the oil window of the present Eagle Ford shale play.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Wednesday, October 20, 2010
Zavala County, Texas: Eagle Ford Shale Update
By Andrea: http://oilshalegas.com
Eagleford Energy Inc. (EFRDE.OB) has been notified by Dawsey Operating, LLC, a Texas based engineering and consulting firm, that the rig allocated to drill an initial test well of the Eagle Ford shale formation will mobilize onto location at the Company's Matthews lease in Zavala County, Texas starting tomorrow. The Company intends to drill vertically through the Eagle Ford and log key formations including the San Miguel sands, the Austin Chalk and the Eagle Ford shale. After logging, the well will be drilled approximately 4,000 feet horizontally through the Eagle Ford shale formation.
The Matthews Lease comprises 2,629 acres of land (or 4 square miles) and is situated adjacent to the Redhawk land block under development by Petrohawk Energy Corporation (HK). Eric Johnson, VP Operations at Dyami Energy LLC, a Texas based subsidiary of Eagleford Energy, stated, "Our primary target is the Eagle Ford shale. Petrohawk has reported 355 barrels a day of oil production from its horizontal well on the property next door. Given the blanket nature of the Eagle Ford formation in this area we are excited by our prospects. We also plan to run tests on the San Miguel formation to gather important petro-physical data on the significant amount of heavy oil in place."
Eagleford Energy's consolidated working interest in the well before payout is 85% (69% working interest after payout).
Zavala County, Texas is part of the Maverick Basin of Southwest Texas and downdip from the United States Geological Studies north boundary of the Smackover-Austin-Eagle Ford total petroleum system. This area is often referred to as the oil window of the present Eagle Ford shale play.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Eagleford Energy Inc. (EFRDE.OB) has been notified by Dawsey Operating, LLC, a Texas based engineering and consulting firm, that the rig allocated to drill an initial test well of the Eagle Ford shale formation will mobilize onto location at the Company's Matthews lease in Zavala County, Texas starting tomorrow. The Company intends to drill vertically through the Eagle Ford and log key formations including the San Miguel sands, the Austin Chalk and the Eagle Ford shale. After logging, the well will be drilled approximately 4,000 feet horizontally through the Eagle Ford shale formation.
The Matthews Lease comprises 2,629 acres of land (or 4 square miles) and is situated adjacent to the Redhawk land block under development by Petrohawk Energy Corporation (HK). Eric Johnson, VP Operations at Dyami Energy LLC, a Texas based subsidiary of Eagleford Energy, stated, "Our primary target is the Eagle Ford shale. Petrohawk has reported 355 barrels a day of oil production from its horizontal well on the property next door. Given the blanket nature of the Eagle Ford formation in this area we are excited by our prospects. We also plan to run tests on the San Miguel formation to gather important petro-physical data on the significant amount of heavy oil in place."
Eagleford Energy's consolidated working interest in the well before payout is 85% (69% working interest after payout).
Zavala County, Texas is part of the Maverick Basin of Southwest Texas and downdip from the United States Geological Studies north boundary of the Smackover-Austin-Eagle Ford total petroleum system. This area is often referred to as the oil window of the present Eagle Ford shale play.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Friday, September 3, 2010
Noble Energy, Inc - Niobrara Shale Update
By Andrea: http://oilshalegas.com
Noble Energy, Inc. (NBL) is beginning to make a huge impact in the Niobrara Shale and they will continue their growth in 3Q 2010:
To date, Noble Energy Inc. (NBL) has drilled 10 horizontal Niobrara wells in Wattenberg and two in the Grover area about 20 miles northeast of Wattenberg. Eight of the Wattenberg wells are now on production with two awaiting completion operations. As they continue to step out to the north and the eastern portions of the Wattenberg field, Noble Energy is encouraged by the early flow back in liquid content of our new wells. Recent initial 24 hour rates have ranged from 580 to 845 barrels of oil equivalent per day with a 70% to 90% liquid content.
Starting in September, the company expects to drill a few more wells closer to the Gemini area, around the core of the field and near existing vertical producers. The Gemini well has now produced over 100,000 barrels of oil equivalent in just four months, and is currently producing about 600 barrels of oil equivalent per day.
In the Grover area, the first two horizontal wells were recently drilled and are undergoing completion operations. Noble Energy will keep one of the two current horizontal rigs in Wattenberg the rest of the year and the other rig will move between Wattenberg and the Grover area.
In southern Wyoming, the company is also bringing in an additional rig to drill three horizontal Niobrara wells starting in the third quarter. Overall, their horizontal Niobrara program is on target, with about 30 total wells drilled in the play by year end. Along with the ongoing 3D seismic activity, production monitoring and additional reservoir evaluation work, Noble Energy should be in a good position by the end of the year to assess the expansion plans for this area. Overall, the company is currently operating 13 rigs in their onshore US program. Five of those rigs are conducting horizontal operations and eight are drilling vertical wells.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Noble Energy, Inc. (NBL) is beginning to make a huge impact in the Niobrara Shale and they will continue their growth in 3Q 2010:
To date, Noble Energy Inc. (NBL) has drilled 10 horizontal Niobrara wells in Wattenberg and two in the Grover area about 20 miles northeast of Wattenberg. Eight of the Wattenberg wells are now on production with two awaiting completion operations. As they continue to step out to the north and the eastern portions of the Wattenberg field, Noble Energy is encouraged by the early flow back in liquid content of our new wells. Recent initial 24 hour rates have ranged from 580 to 845 barrels of oil equivalent per day with a 70% to 90% liquid content.
Starting in September, the company expects to drill a few more wells closer to the Gemini area, around the core of the field and near existing vertical producers. The Gemini well has now produced over 100,000 barrels of oil equivalent in just four months, and is currently producing about 600 barrels of oil equivalent per day.
In the Grover area, the first two horizontal wells were recently drilled and are undergoing completion operations. Noble Energy will keep one of the two current horizontal rigs in Wattenberg the rest of the year and the other rig will move between Wattenberg and the Grover area.
In southern Wyoming, the company is also bringing in an additional rig to drill three horizontal Niobrara wells starting in the third quarter. Overall, their horizontal Niobrara program is on target, with about 30 total wells drilled in the play by year end. Along with the ongoing 3D seismic activity, production monitoring and additional reservoir evaluation work, Noble Energy should be in a good position by the end of the year to assess the expansion plans for this area. Overall, the company is currently operating 13 rigs in their onshore US program. Five of those rigs are conducting horizontal operations and eight are drilling vertical wells.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
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