By OGJ editors
HOUSTON, May 24 -- Momentum Oil & Gas LLC, Houston, will purchase Newfield Exploration Co.’s South Texas oil and gas properties in Fashing field in Atascosa and Karnes counties for an undisclosed sum.
The transaction is to close June 30 retroactive to Apr. 1. The acquisition of 5,000 net acres will make Momentum the field’s largest asset holder. Momentum is acquiring all of Newfield’s interests below the top of the Georgetown formation at 9,700 ft, including the Edwards, Georgetown, and Pearsall shale formations.
Fashing is the largest Edwards gas discovery in Texas with more than 1.2 tcf of cumulative gas production since 1957. Momentum said the assets provide it with a stable base of long-life gas production and a solid inventory of development projects.
The properties consist of interests in 60 wells with producing a net 3.8 MMcfd of gas equivalent, 6% condensate and 9% natural gas liquids. Momentum will operate 16 wells with 100% working interest. A third party operates the remaining wells in which Momentum is acquiring 47% working interest. Momentum has identified a number of proved, probable, and possible workover and drilling candidates to enhance production.
Momentum noted that it has been 15 years since the last well was drilled and completed in the Lower Edwards.
Momentum was formed in late 2010 to acquire and develop oil and gas properties in the Midcontinent and onshore Gulf Coast regions.