Linn Energy LLC has agreed to acquire a private oil and gas company in the Texas Panhandle for $415 million and two Appalachian basin properties for $39 million in three separate transactions.
In other recent company news:
- BG Group PLC has agreed to acquire ConocoPhillips’s equity stakes in Armada and Everest fields in the Central North Sea for $143 million.
- UK-based Energy Resource Technology (ERT) has acquired from ExxonMobil Corp. Block 53/1a, which contains Camelot gas field in the southern UK North Sea for an undisclosed sum.
- OAO Lukoil agreed to buy 376 retail outlets in six European countries from ConocoPhillips. The price was not disclosed.
- Indian state refiner Bharat Petroleum Corp. Ltd. (BPCL) agreed to acquire 25% interests in Blocks 48-1B and 48-2C in the UK North Sea’s Southern Gas basin.
- Edge Petroleum Corp., Houston, agreed to acquire Anadarko Petroleum Corp.’s stake in Chapman Ranch field oil and gas properties in Nueces County, Tex., for $26 million.
- FieldPoint Petroleum Corp., Cedar Park, Tex., has paid $1.67 million to a privately owned company for a 50% working interest and 43% net revenue interest in Bilbrey field in Lea County, NM.
Linn acquisitions
Linn’s Texas transaction involves a field with a production mix of 55% natural gas liquids, 35% natural gas, and 10% oil from more than 820 wells. The acquisition involves proved reserves of 55 MMboe, more that half of which are proved developed.
The Appalachian transactions include more than 55 producing gas wells in West Virginia. Those properties have 24-26 bcf of proved reserves, Linn said.
BG’s North Sea deal
BG’s acquisition will raise its interest by 11.45% to 58.22% in Armada gas-condensate field and by 1.0134% to 59.32% in Everest oil field.
As part of the agreement, BG also will purchase ConocoPhillips’s 16.89% interest in Block 22/14a, southwest of Everest. The deal is expected to close in the first quarter.
BG-operated Armada gas-condensate fields-Fleming, Drake, and Hawkins-span five exploration blocks covering 31 sq km. Initial Armada production began in October 1997. Following two development phases completed in September 2002, the field reached average production rates of 170 MMscfd and 6,400 b/d in 2005.
Everest field, operated by BP PLC, reached average production rates of 115 MMscfd and 4,000 b/d in 2005.
Production from BG-operated Maria field will be tied back to Armada. Estimated reserves for Maria and Maria Horst are about 30 million boe. First production is scheduled for this year.
Armada and Everest gas moves through the CATS pipeline to Teesside, while the produced liquids move through the Forties Pipeline System to the Kinneil processing plant at Grangemouth.
ERT buys into Camelot
Block 53/1a is on the southern margin of the Permian basin, and Camelot field is now considered mature, having produced 150 MMcfd of gas at its peak in 1994.
Alan James, ERT subsea surface manager, told OGJ at the Prospects Fair in London that this was ERT’s first asset in the UK and would provide a base for the company to look at nearby prospects and develop them via the Camelot Alpha platform. The platform is a 6-slot, remote unit that can process 120 MMcfd of gas. The Perenco gas plant at Bacton takes gas from Camelot Alpha.
ERT believes that there could be 17.5-30.8 bcf of recoverable gas in the mature satellite area.
“Four kilometers south of the platform lies the undeveloped 53/1a-13 discovery drilled by Mobil in 1996. The vertical well found a 65 ft gas column with very high-quality Rotligendes reservoir but was not tested as at that time it was considered too small to be commercially viable,” ERT said. Technological advancements and high gas prices make the development commercially attractive now.
First gas from the discovery will be brought on stream during 2007-08 and will contribute to enhancing gas production from Camlot gas field. ERT is working on a development plan to launch the production phase.
“At the end of the project, ERT would use the facilities of the Helix SG Group for decommissioning,” it said.
Lukoil’s outlet deal
Lukoil’s agreement with ConocoPhillips covers 156 outlets in Belgium, 49 in Finland, 44 in the Czech Republic, 30 in Hungary, 83 in Poland, and 14 in the Slovak Republic.
The outlets, carrying the Jet brand fuels, are to be rebranded as Lukoil within 2 years. Subject to regulatory approvals, the transaction is expected to close in the second quarter.
ConocoPhillips plans to increase its interest in Lukoil to 20% through a strategic alliance announced in 2004 (OGJ, Oct. 11, 2004, p. 28).
BPCL’s block interests
BPCL is paying $12.2 million to join a consortium led by Encore Oil PLC, London. Recently, BPCL formed an upstream subsidiary, Bharat Petro Resources, which has committed to spend $133 million on four blocks in India and two abroad.
Edge buys Chapman stake
Edge said the transaction means that the company will operate the properties. In 2005, Edge acquired nonoperated interests in seven producing wells from three private companies. The existing stakes involve 44-50% interest in those wells.
Through Anadarko’s divestiture, Edge is obtaining an additional interest of 44-50% interest in the seven wells, plus interests in two additional wells. Net production being acquired is 3.6 MMcfd of gas equivalent. Production is 90% gas.
Edge estimates there are at least 10 proved undeveloped sites to be drilled plus additional prospects that the company has yet to verify with a 3D seismic survey and a drilling program.
FieldPoint deal
The reserves being acquired by FieldPoint are expected to add an estimated 108,000 boe in proved developed producing reserves net to the company. The seller’s name was not released.
As with its previous acquisitions, FieldPoint plans an active redevelopment program for the property. ConocoPhillips operates the property.