Industry Briefs
TAQA acquires CanadianPrimeWest Energy Trust in $5 billion deal
PrimeWest Energy has entered into an agreement with 1350849 Alberta Ltd. and TAQA North Ltd., both of which are wholly-owned subsidiaries of Abu Dhabi National Energy Company PJSC. All issued and outstanding trust units of PrimeWest and all of the issued and outstanding exchangeable shares of PrimeWest Energy Inc. will be acquired for a cash consideration of C$26.75 per unit. The aggregate value, including debt carried by PrimeWest and its subsidiaries, is roughly C$5.0 billion.
Compton closes sale of Worsley property for $270 million
Compton Petroleum Corp. has completed the sale to Birchcliff Energy Ltd. of its conventional oil assets at Worsley in the Peace River Arch area of Alberta, for $270 million. Compton Petroleum is a Calgary-based public company engaged in the exploration, development, and production of natural gas, natural gas liquids, and crude oil in the Western Canada Sedimentary basin.
Ultra Petroleum to sell China interests for $223M
Ultra Petroleum Corp. is selling Sino-American Energy Co., which represents all of Ultra’s interests in Bohai Bay, China for $223 million. The reserve volumes sold represent all of Ultra’s international assets and comprise approximately 1% of Ultra’s year-end 2006 proved reserves as detailed in the 2006 10-K report. The sale is expected to close during the fourth quarter of 2007 and is subject to normal closing conditions. The purchaser of the Bohai Bay asset is SPC E&P (China) Pte Ltd., a wholly-owned subsidiary of Singapore Petroleum Co. Ltd. and Jefferies Randall and Dewey acted as financial advisors for Ultra in this transaction. “We are pleased with the value received for the non-core asset and plan to turn our full attention to Ultra’s legacy asset the Pinedale Field, the nation’s second largest natural gas field,” commented Michael D. Watford, chairman, president, and CEO.
ECCO Energy buyspartnership interests in Louisiana for $5M
Houston-based ECCO Energy Corp. will purchase all of the partnership interests in Louisiana Shelf Partners LP, a Delaware limited partnership, for $5,000,000 by issuing to the general partner and the limited partners of Louisiana Shelf Partners 1,000,000 shares of Convertible Preferred Series B stock of ECCE at $5 per share. Louisiana Shelf Partners owns Louisiana State Lease Number 17742 in Block 4, covering 600 acres in East Cameron Area in Cameron Parish Louisiana. The property consists of two wells: the #1 well, proved developed non-producing, and the #2 well, which is a proved undeveloped location. Management of ECCE believes that based upon today’s pricing, the potential reserves may be valued in excess of $40,000,000.
Schlumberger acquiresInnerLogix, debuts technology center
Schlumberger has acquired InnerLogix, a data quality management company for the exploration and production industry. InnerLogix, with 20 employees, has offices in Houston and Stavanger, Norway. Over the last seven years InnerLogix has developed a data quality technology and process that automatically provide end users the best available data for decision-making at any point in their workflow. The combination of these capabilities with the domain expertise and global organization of Schlumberger will bring further momentum to the data quality market while improving workflow efficiencies. In addition, Schlumberger has opened its Breakthrough Performance Center, a state-of-the-art innovation lab and executive briefing center in Houston to showcase, create, and test the latest digital technology innovations in the industry. “The Breakthrough Performance Center is a think tank devoted to helping our customers position their companies for future success—using open collaboration to fuel innovation,” said Olivier Le Peuch, president, Schlumberger Information Solutions. Schlumberger Information Solutions is collaborating with technology companies Barco, Dell, HP, IBM, Intel, Microsoft, NetApp, NVIDIA, Panoram Technologies and The Whitlock Group.
Acergy wins $58MOrmen Lange contract
Acergy has been awarded a $58 million contract from Hydro on behalf of the Ormen Lange Licensees. The contract is for the installation of a MEG line and umbilical and tie-in and commissioning of the MEG line, umbilical and flowlines in a water depth of 900 meters on the Ormen Lange Southern field development project. Offshore installation will start in the second quarter of 2009.
Wescorp Energy completes engineering firm merger;$1.25 equity financing
Wescorp Energy Inc., an oil and gas operations solutions company, has completed the merger with Strategic Decision Sciences USA Inc. (SDS), a Houston-based engineering firm providing process-driven consulting and services to help oil and gas operators improve the management, economics and environmental performance of field operations. Wescorp Energy currently provides gas metering and measurement services to 40 of the top 50 gas producers in Canada, and is expanding these services to bring higher value to operators throughout North America. In addition, Wescorp Energy has closed the sale of $1.25 million of equity financing. A total of 2,500,000 units have been purchased at the price of $0.50 per unit. Wescorp intends to use the proceeds to fund pilot programs for its NAVIGATOR process management solution; to roll-out sales of Wescorp’s gas metering products in the US; for general administrative expenses; and for other capital and operating needs that may arise.
Superior Energy Services opens Singapore office
Superior Energy Services has opened a new location in Singapore. This location will serve as a base of operations for Superior Energy Services’ Marine Division, HB Rentals, and Premier Oilfield Rentals, and be a resource for any Superior employee traveling through the region.
Arcapita to acquire Varel International for $369M
Arcapita Inc., a private equity investment firm, and its affiliates have signed a definitive purchase agreement to acquire Varel Holdings Inc. from KRG Capital Partners for roughly $369 million. The transaction is expected to close in the fourth quarter of 2007 and is subject to regulatory approvals and other customary closing conditions. Lehman Brothers Inc. is serving as exclusive financial advisor to KRG Capital Partners and Varel, and is providing senior debt and mezzanine acquisition financing for the transaction. King & Spalding LLP is serving as legal advisor to Arcapita, while Hogan & Hartson is representing KRG Capital Partners. Arcapita Inc. is a wholly-owned subsidiary of Arcapita Bank BSC(c), a global investment involved in sourcing investments for its corporate (private equity), real estate, asset based and venture capital lines of business. Carrollton, Tex.-based Varel International is an independent manufacturer of drill bits.
Platina Energy acquires Texas well service company
Platina Energy has put down a deposit to acquire EWS LLC, a Texas well service company. EWS will retain existing management including engineering personnel and field techs. Blair Merriam, president, stated, “The acquisition of EWS has been a long time in the making and will add an important income stream for the company. It will also provide for additional expansion opportunities currently under contract with EWS.” In 2005, Platina Energy began operations in the oil and gas industry. The company also owns rights to a German oil extraction technology for reduction of paraffin build up for certain field conditions.
Cork, Profound agree to merge
Cork Exploration and Profound Energy have entered into a pre-acquisition agreement pursuant to which Cork will make an offer to acquire all of the issued and outstanding common shares of Profound. Cork has agreed to purchase the Profound Shares in consideration for the issuance by Cork of 1.60 common shares of Cork for each issued and outstanding Profound Share. The combined entity will continue under the name Profound Energy Inc. Cork shareholders will own roughly 51% of the shares of New Profound. The combination of Cork and Profound will create a natural gas leveraged company with high working interests and a suite of drillable locations on a large prospective undeveloped land base. New Profound will have a strong presence in its Carrot Creek, North and South Pembina, and Cochrane core areas in west central Alberta. Profound is a private oil and gas company with operations focused in west central Alberta, predominantly in the same operating area that Cork has built its asset base. At closing, Profound will have nearly 31.8 million fully diluted shares outstanding, a net cash balance of $31.1 million, 140 boe/d production, with an additional 100 boe/d behind pipe, and 4,640 net acres of undeveloped land.
Westside Energy acquires additional Barnett shale assets
Dallas-based Westside Energy Corp., an oil and gas company with operations focused on the acquisition, exploration, and development of natural gas in the Barnett Shale play in North Texas, has acquired additional Barnett Shale assets located in Denton, Johnson, and Tarrant Counties, Texas. The consideration for the assets purchased is $2 million in cash and 904,000 shares of Westside common stock. Additionally, Westside entered into an $8 million revolving note with Knight Energy Group II LLC.
Brigham Exploration divests Granite Wash assets; keeps borrowing base unchanged
Brigham Exploration Co. has closed on the sale of its Anadarko Basin Granite Wash divestiture package for total cash consideration of $36 million. No current income taxes are expected to be incurred with the divestiture. The net proceeds from the sale were used to repay the entirety of borrowings outstanding under Brigham’s senior credit facility with remaining funds placed on deposit. Tristone Capital LP acted as Brigham’s advisor on the transaction. Brigham also concluded its regularly scheduled senior credit facility borrowing base redetermination and the borrowing base was left unchanged at $101 million. Bud Brigham the chairman, president, and CEO stated, “The properties sold had current net production of 1.8 MMcfe per day and proved reserves of 23.5 Bcf of natural gas equivalent. These reserves were roughly 78% undeveloped, and utilizing a $6.50 per Mcf natural gas and $70 oil price the discounted PV10 value of these reserves was approximately $24.5 million relative to our $36 million in proceeds. In addition, the proceeds from the sale expand our corporate liquidity and will compliment cash flow in order to execute on our 2008 drilling program.”
Basic Energy makesasset purchase
Midland, Tex.-based Basic Energy Services Inc. has closed on the purchase of substantially all of the operating assets of Steve Carter Inc. and Hughes Services Inc. for a total consideration of $20 million in cash. The assets purchased include 22 fluid services trucks, 168 frac tanks, four disposal wells, and other ancillary equipment and inventory. SCI and HCI provide transportation, storage, and disposal of oilfield fluids in the southeastern New Mexico and the western Permian Basin regions. Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area.
Penn West to acquire Vault Energy Trust
Penn West Energy Trust has agreed to acquire Vault Energy Trust. The total acquisition cost is expected to reach $380 million. Nearly 5.5 million Penn West trust units are expected to be issued to effect the arrangement. The transaction is expected to add current production of around 6,500 boe/d, weighted 65% to natural gas and 35% to light oil and natural gas liquids. It is also expected to increase Penn West’s tax pool position by nearly $500 million. Vault’s Alberta properties include Wimborne, Bigoray, Pembina, Crystal, and Westerose, all of which are located at or near some of Penn West’s central area core light oil properties. Additionally, Vault’s natural gas properties in northeast British Columbia and northwest Alberta complement existing Penn West properties. In connection with the acquisition, Penn West will also add nearly 120,000 net undeveloped acres to its land base of roughly 3.5 million net undeveloped acres. Scotia Capital Inc. is acting as exclusive financial advisor to Vault.
Addax Petroleum gainsinterest in deepwater joint development zone
Addax Petroleum Corp. has agreed to acquire Esso Exploration and Production Nigeria-Sao Tome (One) Ltd.’s 40% working interest in Block 1 of the Joint Development Zone. The zone lies in the deepwater between Nigeria and Sao Tome and Principe in the Gulf of Guinea. Addax will pay US$77.6 million and 2% of Addax Petroleum’s share of profit oil produced from Block 1. Block 1 is operated by Chevron, which holds a 45.9% working interest. Addax Petroleum is an international oil and gas exploration and production company with a strategic focus on West Africa and the Middle East.
GE unit supports, refinancescredit facility for DHI
GE Energy Financial Services has completed a $277 million senior credit facility for Dalbo Holdings Inc., a Utah-based oilfield services company with operations in New Mexico, Utah, Colorado and Wyoming. DHI is using the funds to complete four acquisitions, expanding its geographic and service capabilities in the gas-rich Rocky Mountain region. GE Energy Financial Services supported the refinancing of DHI’s existing credit facilities and provided working capital facilities to support the company’s growth. GE Capital Markets Inc. is syndicating a portion of the credit facility to other financial institutions. The names of the acquired companies and additional financial details were not disclosed.
Constellation closes addition of Cherokee basin oil and gas properties
Constellation Energy Partners’ wholly-owned subsidiary, CEP Mid-Continent LLC, has closed its acquisition of certain coalbed methane properties from Newfield Exploration Mid-Continent Inc., a subsidiary of Newfield Exploration Co., for an aggregate purchase price of roughly $128 million. The properties are located in the Cherokee basin in Oklahoma. Simultaneously with this closing, Constellation completed a previously announced private placement of its common units for aggregate cash proceeds of roughly $105 million. The proceeds, together with funds available under the company’s revolving credit facility, fully funded the purchase price of the acquisition. Constellation Energy Partners was formed - and is partly owned - by Constellation Energy. Constellation Energy Partners LLC, is a limited liability company focused on the acquisition, development, and production of oil and natural gas properties, as well as related midstream assets.
LLOG sells certain deepwater GoM assetsfor $104 million
LLOG Exploration Co. LLC, a privately-held oil and gas exploration and production company based in Covington, La., closed a sale of oil and gas properties located in deepwater Gulf of Mexico to an undisclosed buyer for $104 million in cash. Sale metrics were approximately $4.06 per Mcfe of proved reserves. LLOG is the largest private exploration and production company in the Gulf of Mexico and the seventh largest in the US, in terms of production. Merrill Lynch Petrie Divestiture Advisors advised LLOG on the transaction.