Petrohawk acquires 325,000 acres at $1,400/acre in Permian Basin - Its New Operating Area

Petrohawk Energy began building an acreage position in the Permian Basin in the second half of 2010, and has now acquired or has committed to acquire approximately 325,000 net acres at an average cost of approximately $1,400/acre with over 90% expected to be operated. The company’s core position includes acreage in the Midland Basin, where the primary target is the Lower Wolfcamp, and acreage in the Delaware Basin, where the primary targets are the Lower Wolfcamp Shale, Bone Springs Sands and Avalon Shale.

Capex for Permian Basin
Petrohawk will allocate approximately $75 million of drilling and completion capital to drill on its Permian Basin acreage during 2011. The company plans to run four rigs in the Basin with 15 wells scheduled to be drilled. Capital spending in this area is scheduled to gradually increase throughout 2012 and beyond with most lease terms providing for a four to five year development window.

Traffic towards Permian Basin is growing
In 2010, the Permian Basin received the highest production multiples, $80,000-$110,000 per flowing barrel equivalent. The metrics reflect the premium buyers were willing to pay for oil reserves; future drilling opportunities, behind pipe potential and reserve quality.



Source: Derrick Petroleum - 2010 M&A report


FY-2011 will again be a busy year for the oil-rich Permian Basin as the oil prices are increasing gradually. The following table shows the Permian Basin deals in Q1-2011.

Source: Derrick Petroleum E&P Transactions Database

Noreco reports first quarter 2011 results

Norwegian Energy Company ASA (Noreco) presents its first quarter 2011 results, with EBITDA of NOK 97 million and a negative net result of NOK 295 million.

Q1 exploration activity
• Svaneøgle exploration well – non-commercial oil discovery
• Ronaldo exploration well – dry 
• Awarded two licenses in 21st NCS licensing round
• Planning for next Noreco operated well – Luna in Denmark

See more from: http://hugin.info/138447/R/1512654/448318.pdf

See more presentations from NORECO: http://docsearch.derrickpetroleum.com/research/q/noreco.html

Lundin Petroleum - Financial Presentation - First Quarter 2011

Q1- 2011 Highlights

• Strong Q1 production 33,500 boepd
• Outperformance of Volund and Alvheim
• 2011 production guidance 28,000 - 33,000 boepd 

Read more: http://docsearch.derrickpetroleum.com/files/12351/Lundin%202011%20Q1%20Financial%20presentation.pdf

Chevron acquires Marcellus acreage from Chief Oil and Tug Hill. Cost may be between $7,000-$11,000/acre!

Chevron has agreed to acquire oil and gas assets, primarily 228,000 net leasehold acres, in the Marcellus Shale from Chief Oil & Gas LLC and Tug Hill Inc. The acreage, which is principally located in southern Pennsylvania, will give Chevron an estimated five trillion cubic feet of additional natural gas resources in its Marcellus Shale operations.


Chief's spokeswoman Kristi Gittins said the sale involves all of Chief’s interests in Cambria, Somerset, Bedford and Blair counties. "After the sale of these properties, Chief and Tug Hill will have approximately 125,000 acres of Marcellus leasehold, focused in the Bradford, Susquehanna, Tioga, Sullivan and Wyoming counties of northeastern Pennsylvania" said Trevor Rees-Jones, president and CEO of Chief.

Below is the map showing Chevron’s position in Marcellus

Source: Chevron 2011Credit Suisse Energy Summit Presentation

The following table shows the acreage metrics of Marcellus deals

Source: Derrick Petroleum- E&P Transactions Database

How much did Chevron pay for the Marcellus acreage??

Though the financial terms of the transaction were not disclosed, the assets could be valued as follows…

• Method-1: The average metrics for Marcellus Shale acreage run between $7,000-$11,000/acre which leaves the transaction value between $1.6-$2.5 billion.
• Method-2: It is disclosed that this transaction includes 5 TCF (~833 mmboe) of resources. The past transactions in the Marcellus Shale have valued the resources in the range of $2-$3/BOE. Applying the same metris for the resources that Chevron have acquired, the transaction is valued between $1.6-$2.5 billion.

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Marathon Oil reported 11% Growth in Sales Volume Over the Same Period Last Year; Continues its Strategy of Focusing on Unconventional, Liquids-Rich Resource Plays

Marathon reported Q1 2011 sales volumes averaged 400,000 boepd, up 11% over the same period in 2010. This was primarily the result of increased liquid hydrocarbon volumes from the Droshky development in the GoM, which commenced production in mid-2010, and Norway, partially offset by the impact of the suspension of Libyan production. Natural gas sales from Equatorial Guinea were higher in Q1 2011 due to a first quarter 2010 planned turnaround at Marathon's production facilities.


Marathon’s production in Libya is currently suspended as a result of continued political and civil unrest. Marathon had expected to produce approximately 48,000 boepd from the Waha Concession during 2011. In the first quarter of 2011, production available for sale from Libya averaged 28,000 boepd, of which approximately 21,000 boepd was sold. On a cumulative basis, the underlift for Libya at the end of the first quarter was approximately 847,000 boe.

Marathon estimates Q2 2011 production available for sale is projected between 340,000 and 360,000 boepd, excluding the effect of any future acquisitions or dispositions. Anticipated full-year E&P production available for sale is between 345,000 and 365,000 boepd.

Unconventional, Liquid-rich Resource Plays

Source: Derrick Petroleum E&P Transactions Database

During the quarter, Marathon spud its first well targeting the Eagle Ford Shale formation in south Texas. As the Company continues its strategy of focusing on unconventional, liquids-rich resource plays, Marathon has increased its holdings in the Eagle Ford Shale to approximately 29,000 acres, with the rights to acquire an additional 61,000 acres. The Company also has reached agreements on approximately 30,000 additional acres and expects to close those transactions in the second quarter.

 In early April 2011, Marathon signed an agreement to assign a 30 percent undivided working interest in the Company's approximately 180,000 net acres in the Niobrara Shale play. The company is currently acquiring 2-D and 3-D seismic data and expects to participate in eight to 12 gross wells by year end.

Source:Derrick Petroleum E&P Transactions Database
Exploration expenses were $230 million for the first quarter of 2011, compared to $98 million in the first quarter of 2010. Included in exploration expenses for the first quarter of 2011 were dry well expenses of approximately $159 million, primarily related to the Flying Dutchman well located in the Gulf of Mexico and the Romeo well in the Pasangkayu block offshore Indonesia. In March 2011, Marathon completed an evaluation and determined the options to develop Flying Dutchman were not viable. For Romeo, the reservoir's thickness and quality confirmed pre-drill geologic models, but the well was determined to be dry.

Source: Derrick Petroleum Planned Exploration Wells Database

Vero Energy 2011 May Corporate Presentation

2010 Reserve Highlights:

Increase in proved plus probable reserves: +28% to 32,941 mboe
Increases in proved reserves: +11% to 20,052 mboe
Reserves replacement of : 332% proved plus probable – 163% total proved

http://docsearch.derrickpetroleum.com/pageNav/view1/docId/12336-0000/Vero-Energy-2011-May-Corporate-Presentation.html

Crew Energy - May 2011 Corporate Presentation

Large resource of heavy oil (>900 MMB OOIP) & liquids rich gas (>500 BCF OGIP) - Production: 10,500 boepd - Reserves: Proven 23.7 MMBOE (48% liquids) - 2P 43.0 MMBOE (48% liquids)
http://docsearch.derrickpetroleum.com/files/12323/Crew%20Energy%20-%20May%202011%20Corporate%20Presentation.pdf