Mitsubishi Corp has signed a farm in agreement with Talisman Energy to acquire interests in nine licences in Papua New Guinea’s onshore Western Province for $280 million which will be paid in the form of capital carry. Following the farmout, Talisman and Mitsubishi interests in the licences will average 40% and 20%, respectively. The transaction is effective 1-Jan-2012 and is subject to approvals. RFC Corporate Finance has acted as an advisor to Talisman on this transaction. Continue reading here..
Parex Resources Inc has signed an agreement with Talisman Energy to acquire its 25% interest in the El Eden block. Pursuant to the transaction, Parex will have 60% interest in the block and 50% of the non-producing Chiriguaro oil discovery. The completion is subject to regulatory approval. Continue reading here..
Talisman Energy Inc has initiated a process to divest its Shaunavon assets in southwest Saskatchewan and has retained FirstEnergy Capital Corp as its exclusive financial advisor. This package is a part of company’s 2012 divestiture program which was announced in Jan-2012. Continue reading here...
Derrick recorded nearly $14 billion worth Canadian packages put for sale by Connacher Oil & Gas, ConocoPhillips, Talisman, Birchcliff Energy, EnCana and Cenovus Energy. The $14 billion includes only the large packages estimated at greater than $1 billion. For more visit us:
Poland has the largest shale exploration potential in Europe by virtue of its attractive geology and by the Polish Government offering lucrative fiscal terms to prospectors. International majors, including ExxonMobil, Marathon Oil Corp, Chevron Corp and Talisman Energy Inc, are probing Poland’s shale deposits to ascertain if drilling techniques that revolutionized US gas production can unleash reserves big enough to supply Polish demand for more than three centuries. Continue reading here..
Derrick Petroleum's "Deals in Play' database has recorded $2 - $3 billion worth of Eagle Ford Shale assets for sale as on July 2011. The Eagle Ford Shale is becoming prized property for oil and gas companies in 2011. The shale play area starts at the Texas-Mexico border in Webb and Maverick counties and extends 400 miles toward East Texas. The play is 50 miles wide, an average of 250 feet thick at a depth between 4000 and 12,000 feet, and has high carbonate content making it easier to fracture than other shales. In addition, it is also more liquid rich than other shales. The $/acre of the shale has been increasing rapidly over the last few years due to increasing successes of companies exploring this play. The high present $/acre relative to previous years is also bringing capital to firms who want to sell non-core Eagle Ford assets to focus on their core assets.
The following table from Derrick Petroleum’s ‘Deals in Play’ database shows opportunities available with respect to Eagle Ford assets as on 4 July 2011.
Table 1: Is an interactive chart/ table showing data recorded from Derrick Petroleum's 'Deals in Play' database. Only deals above $10 million are shown. Net undeveloped acres have been sorted from highest (up) to lowest (down). Subscribers can click on the relevant bar to view detailed information from the database.
The following table shows recent transactions involving the Eagle Ford Shale for insight into its recent $/Acre.
Table 2: X axis shows Buyer-Seller. Y axis is deal value. $/acre is given above the bar's in the chart. Data is sorted by month and quarter. Only deals above $100 million in Q1 and Q2 2011 have been shown. Click on the bars for more detail on individual deals.
Analyst Comments
1. Total deal value involving Eagle Ford shales has been among the highest relative to the other US shales.
2. Number of deals involving Eagle Ford shale have been the highest so far in 2011 as compared to other shales (~25 deals), as recorded in Derrick's Deals database.
3. Eagle Ford shale looks set to dominate the deals market for unconventionals in 2011.
Canadian O&G company, Talisman Energy has oil and gas assets in North America, the North Sea and Southeast Asia. The company is pursuing a number of high-impact international exploration opportunities for 2011. In 2010, Talisman produced 417,000 boepd, approximately 50% oil and 50% natural gas.
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Talisman's Transforming to Oil-Focused Company:
In terms of the portfolio, the company completed the sale of $2 billion of non-core, predominantly North American natural gas assets during 2010, bringing the total to $5 billion over the past two years. In general, the intent was to sell higher-cost, high-decline conventional gas assets and reposition the portfolio towards lower-cost, long-life assets, focusing on liquids.
"In North America, our emphasis will shift to liquids, and we will reduce gas directed spending by 35%. Our reduced gas directed drilling remains profitable at US$4 prices, and our land retention commitments are relatively minor. With the Eagle Ford acquisition complete, we plan to build to eight rigs by year end, with net Talisman production expected to average 55-65 mmcfepd, just under half of which will be liquids” said John A. Manzoni, President and Chief Executive Officer, Talisman.
Following the successful entry into the liquids-rich Eagle Ford through two acquisitions in 2010, the company is expecting to drill approximately 35 net wells. Talisman expects to ramp up to eight operated rigs by year end, and has budgeted approximately US$300 million. Net annual production from this play is estimated at 55-65 mmcfepd. Approximately half of this production is expected to be liquids.
Shale production in North America is expected to average 455-525 mmcfepd (~75,000-85,000 boepd), with an additional 90,000 boepd of conventional production.
Talisman in Eagle Ford:
Talisman took its first position in Eagle Ford in May 2010, buying 37,000 acres, and augmented that in December, when it and joint-venture partner Statoil paid $1.33 billion for 97,000 acres
The company successfully sold $2.2 billion of assets through 2010, all at very good metrics, and that allowed company to reposition the portfolio substantially through the year with about $2 billion of acquisitions, including some discoveries in Norway, the BP Colombia acquisition partnering with Ecopetrol, and deepening in the Eagle Ford jointly with Statoil.
South Africa's largest petrochemical company, Sasol signed a second agreement with Talisman Energy to acquire a 50% stake in their Cypress A shale gas asset located in the Montney basin of British Columbia, for a total consideration of C$1,050 million. Consistent with the recent Farrell Creek shale gas acquisition, announced in December 2010, this second acquisition will see Talisman Energy retain the remaining 50% interest and continue to operate the Cypress A gas asset. Assets included in the transaction cover over 57,000 acres of land and represent an estimated contingent resource of 11.2 TCF. Goldman, Sachs & Co and Jefferies & Company acted as advisors for Talisman on this transaction.
Sasol and Talisman have agreed to conduct a feasibility study on the economic viability of a facility in western Canada to convert natural gas to liquid fuels using Sasol's GTL technology. This could provide a strategic alternative to traditional North American pipeline or liquefied natural gas marketing.
International Companies’ affinity towards Canadian/US shale is aggressive!!
This second Montney JV by Sasol marks the latest investments by international interests on Canada’s shale gas bounty, as the industry explores new markets and non-traditional uses for the huge deposits. Here are the few examples..
In September 2010, Penn West Energy Trust formed a 50-50 joint venture with Mitsubishi to develop Penn West's shale gas assets in the Cordova Embayment area and certain of its conventional gas assets in the Wildboy area of northeastern British Columbia. Mitsubishi’s total acquisition cost with respect to this JV was approximately C$450 million.
In addition to these, CNOOC recently formed back-to-back JVs with Chesapeake for the Eagle Ford and Niobrara shales in the United States.
Recently, Progress Energy and Trident Resources have initiated a sale process with regards to their Montney assets. With the trend of international companies entering North American Shale, who will end up buying these packages?
