Energen Resources to acquire Permian basin properties

By OGJ editors

HOUSTON, Mar. 21 -- Energen Resources Corp., a unit of Energen Corp., Birmingham, Ala., said it would acquire from First Permian LLC, a partially owned unit of Midland, Tex.-based Parallel Petroleum Corp., properties in the Permian basin in West Texas containing 43 MMboe of reserves for $120 million in cash and $70 million in Energen common stock.

Energen said it expects to spend an additional $100 million to develop the properties, bringing its all-in reserve cost to $6.70/boe or $1.12/Mcfe. More than 95% of the reserves being acquired are oil.

"We look for long-lived reserves; these reserves have a 27-year life," said Mike Warren, chairman and CEO of Energen. "We want to operate the properties we acquire; more than 90% of the value of these reserves is operated."

Warren added, "While Energen Resources's preference has been and continues to be natural gas, we have consistently stated that we would not shy away from predominantly oil properties that otherwise meet our acquisition criteria."

Related Articles

Energen to pursue elusive Alabama shales

12/01/2008 Energen Corp., Birmingham, Ala., plans further tests in 2009 of Conasauga and Chattanooga shales in Alabama without partner Chesapeake Energy Corp....

Energen, Chesapeake eye Alabama gas shales

10/17/2006 Energen Corp., Birmingham, Ala., sold to Chesapeake Energy Corp., Oklahoma City, a 50% interest in its lease position in various shale plays in Ala...

Energen Resources to buy Permian basin assets

11/29/2005 Energen Resources Corp. has signed an agreement to buy Permian basin oil properties from a private company for $168 million.

LNG imports to be key source of future US gas supplies

02/24/2003 Imports of LNG will play an increasingly important role in meeting US demand for natural gas, said several speakers at the energy conference Feb. 1...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected