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Statoil joins Talisman in Eagle Ford venture

By OGJ editors
HOUSTON, Oct. 11
-- Statoil ASA has agreed to acquire 67,000 net acres in the Eagle Ford shale play of South Texas in deals with Enduring Resources LLC and Talisman Energy Inc. that the Norwegian company says might result in the drilling of 1,500 wells over 20-30 years.

Statoil and Talisman have formed a 50-50 joint venture to acquire Enduring’s 97,000 Eagle Ford acres for $1.325 billion. Statoil also will acquire 50% of Talisman’s existing 37,000 acres in the Eagle Ford play for $180 million.

Statoil says that through its combined $843 million investment it is acquiring about 550 million boe of recoverable oil and gas. It and Talisman have the option to jointly acquire up to 22,000 net acres more.

Talisman will be operator at first, but Statoil will become operator of 50% of the acreage within 3 years. Enduring operates 90% of its leases, which are in a part of the Eagle Ford play rich will liquids. About 55,000 acres of the Enduring position is held by production.

Four rigs are working on leases covered by the transactions.

The deal is Statoil’s second major investment in US unconventional oil and gas resources. In 2008, it acquired a 32.5% interest in Chesapeake Energy Corp.’s holdings in the Marcellus shale play in the eastern US.


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