Crescent Point Energy expands Bakken presence

PetroBakken Energy Ltd has agreed to sell certain non-core Southeast Saskatchewan assets to Crescent Point Energy Corp for C$427 million (US$428.341 million) in cash. The assets are located in the water flood area of the Viewfield Bakken light oil resource play. Continue reading here..

US/Canada unconventional assets worth ~$14 billion available on market. Marcellus Shale leads the play.

The unconventional marketplace is being driven by motivated buyers (majors, internationals like KNOC, Marubeni, CNOOC, BHP, etc.,) and opportunistic sellers (Anadarko, Chesapeake, EnCana, Talisman, etc.,). Unconventional transactions dominated the upstream asset transactions in Q1-2011, nearly 35% of the total upstream value. PetroChina’s C$5.4 billion for a 50% interest in Cutbank Ridge assets in the Montney shale play from EnCana and BHP Billiton’s $4.75 billion for acquisition of interest in Fayetteville shale play from Chesapeake were the two major gas weighted shale deals in Q1-2011. However, number of transactions were more towards oil weighted Bakken and Eagle Ford plays. The following two tables show the significant unconventional deals of Q1-2011 in US/Canada.

In United States...

In Canada...

Try this free document search tool

Unconventional assets worth $14 billion up for sale

Source: Derrick Petroleum E&P Transactions Database

A total of $13,671 million worth of shale oil/gas assets are available for sale in the United States and Canada. The Marcellus shale gas assets top the sale activity and account for 44% of the total value. The key and the emerging shale plays and the assets put up for sale in those areas are detailed below-

Key US shale plays:

• Bakken Shale, hybrid shale system with mainly oil production, also exploiting underlying Three Forks tight sands formation

• Marcellus Shale in Appalachia, covering multiple states with Pennsylvania as main state, NE-part dry, SW-part with wet gas area

• Barnett Shale in Texas, dry and wet gas zones, combo area with oil/condensate as well

• Fayetteville Shale in Arkansas, mainly dry gas

• Haynesville Shale on the Louisiana-Texas border, mainly dry gas

Emerging plays:

• Eagle Ford in South Texas, oil and wet gas in addition to dry gas

• Niobrara in the Rockies, mostly oil

• Utica in eastern Ohio and western Pennsylvani may be oil prone and future target by companies

• Avalon in the Permian, mostly oil

• Canadian plays, notably Montney and Horn River in British Columbia; and Oilsands in Alberta.

Abraxas Petroleum Built Around Solid Conventional Assets; Expanded Capital Program of $60 million for 2011; Most of its capex is going to producing more oil!!

Abraxas reported 2010 year-end reserves totaled 26.6 mmboe up 7% over 2009 despite selling 9% of proved reserves in our divesture program. The company operates wells in the Bakken, West Texas, South Texas, and Canada. Abraxas has outside operated wells in the Bakken. Most of its capex is going to producing more oil. Its goal this year 2011 is to try to get to a 50% oil/gas mix. In the Eagle Ford, it would like to accelerate its partnership with the JV. Last year it had asset sales of $34 million (non-core and non-operated). The money is used for this year's capex and to pay down debt. It would like to eventually get 90% of its assets operating.

Source: Derrick Petroleum E&P Transactions Database

Currently, Abraxas has south and West Texas conventional assets, Eagle Ford and northern Rockies and Canada conventional resource plays, including the Bakken and the Niobrara.

Abraxas has 8,333 acres in Eagle Ford. This location, part of a $25 million equity investment, is 43% oil, 35% gas/condensate, and 22% gas window. The company also has approximately 14,000 acres in the Niobrara shale, with 3,800 gross acres leased and 11 producing wells. Its holdings are in the same area with Chesapeake (CHK) and EOG Resources. In the Southern Alberta Bakken it has approximately 10,000 acres leased. Abraxas also has a small holding in the Pekisko Fairway in Canada.

Abraxas' Rocky Mountain assets has 7.2 MMBoe in proven reserves; 63% of this is proved developed, 82% is crude oil, with 1063 Boepd of production, 900 gross producing wells, and 90,362 gross acres. Primary locations here are the Willston Basin, Powder River Basin, Green River Basin, and Unita Basin.

The Permian Basin has 5.6 MMBoe of proved reserves; 66% proved developed; 70% is natural gas. There is also 1254 Boepd of production; 237 gross producing wells; 36,064 acres, The primary producing sub-basins are the Delaware Basin and Eastern Shelf.

Try this free document search tool

The Gulf Coast has 9 MMBoe of proved reserves; 38% is proved developed; 91% is natural gas; 1044 Boepd of production. This area has 74 gross producing wells, and Abraxas has 11,414 acres in the area. The primary sub-producing basin is the Onshore Gulf Coast.

This company looks to be another oil and gas exploration and production company with great assets that, in time, could turn into something great if everything works out. It is well positioned, especially if oil gets up to around a $100 a barrel and stays there for a while.

GMX RESOURCES INC. Announces Record First Quarter 2011 Production and Guidance for Second Quarter 2011; Plan to increase liquidity through asset sales and Joint Ventures

GMX RESOURCES INC., has reported hydrocarbon production of 6.0 Bcfe for the first quarter 2011, up 14% over the fourth quarter of 2010 and up 89% increase over the first quarter of 2010. The Company’s second quarter and full year 2011 guidance is 6.1 Bcfe with an expected range of 25.0-26.0 Bcfe, respectively, which represents an increase of 42% and 43%-49% in the second quarter and full year 2010.

GMX plan to deploy capital in high value opportunities. The company initiated Bakken and Niobrara acreage development plans by allocating capital across three basins to diversify commodity price and basin risk.

The company announced $168 million capital program, of which 24% is allocated for oil developments and projected 54% of its 2012 capital program for oil developments.

Recent JVs Increase Value of GMXR Acreage

The company announced JV between Marathon Oil & Marubeni Corp. values nearby acreage at ≈ $5,000/acre

JV between CHK and CNOOC values nearby acreage at over $4,750/acre

Source:Derrick Petroleum E&P Transactions Database

Try this free document search tool

Hess Corporation Announces Capital and Exploratory Budget of US$ 5.6 billion for 2011; More than 35 percent are devoted to Unconventional Oil projects

Hess announced 2011 capital and exploratory budget of US$ 5.6 billion, of which US$ 3.1 billion for production, US$ 1.6 billion for developments and US$900 million for exploration. More than 35 percent of capital and exploratory expenditures in 2011 are devoted to unconventional oil projects. The company also plans to increase reserves and production by atleast 3% a year.

Production expenditures of approximately US$ 3.1 billion include:

- Bakken oil shale in North Dakota, where Hess plans to operate 15 rigs and expand production facilities

- Drilling production and water injection wells at Valhall (Hess 64% working interest) in Norway and Shenzi (Hess 28%) in the deepwater Gulf of Mexico

- Well workovers and completions at Ceiba and Okume Complex (Hess 85% - operator) in Equatorial Guinea

Field development expenditures of US$ 1.6 billion include:

- Expansion of the Tioga Gas Plant and construction of a crude oil rail loading and storage facility to support the development of the Bakken oil shale in North Dakota

- Field redevelopment work at Valhall to increase production capacity and extend field life by 40 years is expected to be completed during 2011

- Pony (Hess 100 percent - operator) and Tubular Bells (Hess 40 percent - operator) in the deepwater Gulf of Mexico, where engineering and design work is progressing

Try our free document search tool

Exploration expenditures are budgeted at US$ 900 million, including:

- Conventional deepwater drilling in Egypt, Ghana, Indonesia and Brunei

- Unconventional onshore drilling in the Eagle Ford Basin in Texas and the Paris Basin in France

Source: Derrick Petroleum Planned Exploration Well Database