BP inks $1.9B deal with Chesapeake for interest in Fayetteville

Chesapeake Energy Corp. and BP America intend to implement a joint venture whereby BP will acquire a 25% interest in Chesapeake’s Fayetteville Shale assets in Arkansas for $1.9 billion. The assets are producing roughly 180 million cubic feet of natural gas equivalent and include nearly 540,000 net acres of leasehold. BP will own approximately 135,000 net acres and Chesapeake will own approximately 405,000 net acres. BP will pay $1.1 billion in cash at closing and will pay a further $800 million during the remainder of 2008 and in 2009 by funding 100% of Chesapeake’s 75% share of drilling and completion expenditures until the $800 million obligation has been funded. Chesapeake plans to continue acquiring leasehold in the play and BP will have the right to a 25% participation in any such leasehold.

Roxar launches new measurement technology, signs deal with Petrobras

Roxar ASA has launched two new products designed to measure the mass flow rates of fluids or gas in subsea production and injection wells – the Roxar subsea Singlephase meter and the Roxar subsea Singlephase sensor. The new Roxar subsea Singlephase meter (subsea SPM) measures both absolute and differential pressures across a venturi, eliminating the problems associated with traditional DP cell measurement. The Roxar subsea Singlephase sensor (subsea SPS) measures the deflection of an intrusive probe caused by the flowing media. The measurement output from the subsea SPS is intended to enhance or replace traditional calculations based on choke settings. Additionally, the company has signed a NOK $19.5 million contract with Petrobras America for the provision of integrated reservoir sensors and multiphase measurement systems for operation in the Gulf of Mexico’s Cascade and Chinook fields.

Talisman’s subsidiary sells non-core Dutch assets for $480M

A wholly-owned subsidiary of Talisman Energy Inc. has entered into an agreement with Total Holdings Nederland BV to sell Talisman’s entire non-operated interests in the Dutch sector of the North Sea for US$480 million, excluding working capital. Talisman’s production from the fields in 2007 averaged 23 MMcfe/d, with year end proved reserves of nearly 43 bcfe.

Shell inks contract for Offshore Courageous

Scorpion Offshore Ltd., through its local Malaysian affiliate, signed a contract with Sarawak Shell Berhad / Sabah Shell Petroleum Co. Ltd. for the Offshore Courageous for operations offshore Malaysia. The contract is for three years, plus one one year option, and provides for annual operating cost escalations. The firm contract is estimated to generate US$174 million in revenue.

Industry veterans establish AIM Energy Advisors to provide A&D services

Dane Isenhower and David Marcell have established Houston-based AIM Energy Advisors LLC, a new firm providing acquisition and divestiture services to oil and gas companies. AIM’s focus will be the upstream segment of the industry, representing exploration and production companies in the sales of their assets. The company plans direct, unobstructed access to the firm’s two senior-level principals. Before founding AIM, Isenhower and Marcell were managing directors with Tristone Capital. Prior to Tristone, Marcell was with an independent oil and gas company and held senior-level positions in energy investment banking. Isenhower holds petroleum engineering, energy banking, and energy investment banking experience.

Stone Energy closes Bois d’Arc acquisition

Stone Energy Corp. has completed its acquisition of Bois d’Arc Energy Inc. Bois d’Arc stockholders will receive $13.65 per share in cash, and 0.165 shares of Stone common stock for each share of Bois d’Arc common stock. Stone paid approximately $935 million in cash and issued approximately 11.3 million shares in connection with this transaction. Stone funded the cash portion of the acquisition with cash on hand of roughly $510 million and borrowings of $425 million under its newly amended and restated $700 million credit facility. The 49% interest was sold to Stone by Comstock Resources Inc. for $440 million in cash and 5,317,069 shares of common stock of Stone. Comstock used the cash proceeds to repay amounts outstanding under its bank credit facility.

Swift to purchase assets from privately held Crimson Energy Partners

Houston-headquartered Swift Energy Co. has signed an agreement to purchase from Crimson Energy Partners LP, a privately-held company, oil and natural gas interests in Dimmit County in South Texas for $47 million. The interests in Crimson’s Briscoe “A” lease and wells are located on 5,140 acres adjacent to existing Swift Energy production in its Cotulla area. Swift Energy currently estimates that total reserves of the purchased properties are approximately 13 bcfe of proved reserves and 3 bcfe of probable reserves. Swift Energy will acquire a 100% working interest in all of Crimson’s operated wells in the lease and will serve as operator of the property. The purchase price will be funded with bank borrowings under the company’s bank credit facility.

Baker Hughes wins well services contracts from BP Norway

BP Norway has awarded new well services contracts to Baker Hughes Norge for roughly US$149 million for the five year term and covers the Skarv phase one drilling program of 16 wells. The contract awards cover completion equipment and related services, well placement, drilling and completion fluids and electric wireline services.

Osum Oil Sands closes $275 million private equity financing

Osum Oil Sands Corp. has closed a private equity financing for C$275 million at a price of C$10.50 per share. The financing was led by Warburg Pincus LLC and included an investment by Blackstone Capital Partners V LP. Osum plans to file its commercial application at Cold Lake in late 2009, with first production anticipated in 2013. Osum’s chairman and CEO, Richard Todd, anticipates using the funds to continue commercial production from the Cold Lake bitumen project of roughly 35,000 b/d, and to pilot production at its Saleski project in the Wabasca region of Alberta. The company is adding Jeffrey Harris and David Krieger, both managing directors of Warburg Pincus, and David Foley, senior managing director of Blackstone, to its board of directors. Directors Simon Clark and Gerry Stephenson have agreed to step down from the board and will join Osum’s newly formed board of advisors.

Halliburton grabs new microseismic fracture, tiltmeter mapping company

Halliburton has entered into a definitive agreement with CARBO Ceramics Inc. to acquire the assets of Pinnacle Technologies Inc., including the Pinnacle brand. Pinnacle is a provider of microseismic fracture mapping services and tiltmeter mapping services. Pinnacle will operate as a business unit within Halliburton Wireline and Perforating Services. Halliburton has also entered into a multi-year ceramic proppant supply agreement with CARBO Ceramics. CARBO Ceramics will retain Pinnacle’s FracProPT, hydraulic fracturing consulting and Applied Geomechanics assets.

Williams cinches $147M reserves acquisition in Barnett Shale

Williams has completed the purchase of certain interests in the Barnett Shale for roughly $147 million from privately-held Aspect Abundant Shale LP and other parties. The original purchase price was approximately $166 million; the change is because the parties are in the process of finalizing title work on a small portion of the acquisition package. The $166 million acquisition package represents an estimated 175 bcfe of proved, probable, and possible reserves on nearly 10,000 net acres and 41 producing wells with daily net production of approximately 9 MMcfe. The properties are located primarily in Tarrant, Johnson, and Hood counties. Williams has four drilling rigs operating in the Barnett Shale and plans to add two more in north Texas over the next six months to begin developing the new interests.

McMoRan Oil & Gas contracts Rowan-Mississippi jackup for two years

Rowan Companies Inc. has entered into a drilling contract with McMoRan Oil & Gas LLC for the new 240C class jackup, Rowan-Mississippi. The contract is for a two-year term and will provide Rowan with approximately $160 million of drilling revenues. The rig will drill one or more ultra deep gas wells in the Gulf of Mexico, including additional drilling on the Blackbeard Prospect. McMoRan’s partners in the drilling program include Plains Exploration & Production Inc. and Energy XXI. The rig is scheduled for operations in the Gulf of Mexico in November.

W&T Offshore drops well count for 2008

W&T Offshore Inc. has revised its exploration and development capital budget for 2008 to roughly $611 million, based on drilling up to 35 wells for the year. The reduction in the estimated well count is a result of equipment delays, revisions to non-operated drilling programs and further technical evaluation, including seismic information. Tracy W. Krohn, chairman and CEO, stated, “Although, we have reduced the total well count for 2008, most of the wells that are not being drilled under the original 2008 plan are being pushed into 2009. The vast majority of prospects that were deferred are on acreage that is ‘held by production’, so we have some flexibility with regards to timing.”

New Stream Capital acquires working interest in Gulf Coast leases

New Stream Capital has provided financing of $28.1 million to EBR Management LLC, an energy production company located in Sugar Land, Texas. The transaction is backed by oil and gas leases including 91 producing wells, 60 drilling locations covering numerous fields in Southern Texas and Louisiana, estimated net reserves of 21.6 bcf of natural gas, and net production of roughly 130 barrels of oil and 5MMcf of natural gas per day. New Stream Capital is a private investment firm focused primarily on fully secured, collateralized loans to small and middle-market companies.

Natixis to arrange, underwrite $200M debt facility for BPZ

Natixis, a French bank, will arrange and underwrite the $200 million tranche of the $215 million reserve-based lending facility to BPZ Resources Inc. The initial $15 million tranche was recently closed directly with the International Finance Corp. The company expects to close this $200 million tranche in the fourth quarter of this year. The overall revolving credit facility is backed by current oil reserves in the Corvina field located in the offshore Block Z-1 in northwest Peru.

Seadrill-operated T9 rig wins $152M contract extension with ExxonMobil

The Seadrill operated tender rig T9 has been awarded a three-year contract extension with ExxonMobil. The contract extension value is roughly US$152 million. Commencement of the extension is scheduled to mid January 2009. Seadrill controls 49% in Varia Perdana which owns the T9 tender rig.

Texas Capital Bank’s parent company sells shares to support growth

Texas Capital Bancshares Inc. has entered into definitive agreements to sell four million shares of its authorized but unissued common stock in a private placement. Net proceeds from this sale of common stock totaling $55 million will be used for general corporate purposes, including capital for support of the anticipated growth of Texas Capital Bank. Fox-Pitt Kelton Cochran Caronia Waller acted as exclusive placement agent.

Vortex to acquire Barnett Shale properties

Vortex Resources Corp. has signed a Memorandum of Understanding to enter into a definitive asset purchase agreement with London-based Blackhawk Investments Ltd. Blackhawk will exercise its exclusive option to acquire all of the issued and allotted share capital in Sandhaven Securities Ltd. (SSL), and its underlying oil and gas assets in NT Energy (about 62% control). NT Energy holds rights to mineral leases covering roughly 12,972 acres in Parker, Jack, and Palo Pinto counties of Texas in the Barnett Shale.

Tenaris to expand production capacity

Tenaris SA plans to increase its production capacity by installing a small diameter rolling mill up to 7” with an annual production capacity of 450,000 tons of seamless pipes at its industrial facilities located in Veracruz, Mexico. The installation of the mill, together with associated iron and steel making and finishing facilities, will require an investment of approximately US$1.6 billion. The mill is expected to begin operations by 2011. In addition to this investment in Mexico, Tenaris plans to continue to invest in its industrial facilities throughout the world and its capital investments, excluding the new mill in Mexico, are expected to amount to approximately US$450 million per year over the next three years.