XTO acquires properties, leasehold for $1 billion

XTO Energy Inc. has agreed with multiple parties to acquire producing properties located in the Eastern and San Juan Regions as well as acreage positions in the Woodford, Fayetteville, and Barnett shales for a total of about $1 billion. From the producing property transactions, XTO estimates proved reserves to be 212 bcfe of which roughly 60% are proved developed. These acquisitions will add about 35 MMcfe/d of natural gas to the company’s production base. In the emerging shale plays, the company added 76,000 net acres to expand its drilling inventory. Additionally, Bob R. Simpson, chairman and CEO of XTO stated that the company will continue to purchase ‘bolt-on’ properties and will not establish a master limited partnership at this time. Funding is expected to be provided through a combination of cash flow, bank debt, and capital market transactions.

Questar completes $659M Louisiana property acquisition

Questar Corp.’s subsidiary, Questar Exploration and Production Co., has closed the purchase of two natural gas development properties in northwest Louisiana, for an aggregate adjusted purchase price of $659 million. The properties are located in Red River and Bienville Parishes, roughly 10 miles south and east of Questar E&P’s existing Elm Grove Field operations.

Lukoil acquires hydrocarbon assets in Uzbekistan for $580 million

LUKOIL Overseas has completed a transaction with ZAO MGNK-SoyuzNefteGaz to acquire 100% of SNG Holdings Ltd. group, one of which is SoyuzNefteGaz Vostok Ltd., a signatory to the PSA on the South-Western Gissar and Ustyurt Region fields in the Republic of Uzbekistan. The transaction totals roughly US$580 million. The National Holding Co. Uzbekneftegaz is the second signatory to the PSA as a state authorized body. There are seven fields in the contract area of the South-Western Gissar (Kashkadarinsky Region), i.e., the gas condensate fields Dzharkuduk-Yangi Kyzylcha, Gumbulak, Amanata, Pachkamar and Adamtash, the oil and gas condensate field Southern Kyzylbayrak, and the oil field Koshkuduk.

PXP buys Texas properties for $335M

One of Plains Exploration & Production Co.’s subsidiaries has entered into a definitive agreement to acquire from a private company oil and gas producing properties, covering 67,929 gross acres in South Texas for $335 million. PXP intends to fund the majority of the purchase price with proceeds from the recently completed divestments through the use of a tax deferred like-kind exchange.The properties currently produce nearly 33 MMcf/d net to PXP. PXP estimates proved reserves are roughly 106 bcfe with an additional 70 bcfe of unproved resource potential. Jefferies Randall & Dewey acted as advisor to PXP on the transaction.

READ Well Services wins contracts from BP, StatoilHydro

Two significant contracts with a combined seven figure value have been reported by READ Well Services (RWS Ltd). BP Exploration Operating Co. UK Ltd. has awarded RWS Ltd. a three year contract for the provision of borehole seismic services in the UK Continental Shelf (UKCS) offshore sector in the North Sea. StatoilHydro has also contracted RWS Ltd. to provide borehole seismic services on selected production platforms in the Norwegian North Sea. The contract is set for a 27 month period. RWS Ltd. is a North Sea-based service and technology provider to the upstream oil and gas industry.

Acergy SA awarded $195M contract from EnCana, $150M contract in Australia

Acergy SA has signed a $195 million EPIC contract with EnCana Corp. for offshore installation SURF work on the Deep Panuke field located offshore Halifax, Nova Scotia, Canada. Offshore installation is scheduled to commence during the second quarter of 2010. Also, the company has been awarded a $150 million contract from Woodside for offshore installation work on the Pluto LNG Project North West of Karratha, Western Australia.

Second Wave Petroleum to acquire Milagro Energy

Second Wave Petroleum Ltd. will make a formal bid to acquire all the issued and outstanding common shares of Milagro Energy Inc. through the issuance of up to 5,000,000 units comprised of 0.0298 of a Class A Share of Second Wave and 0.0298 of a share purchase warrant to acquire one Class A Share of Second Wave. Each whole warrant shall entitle the holder to purchase one Class A Share of Second Wave at a price of $0.40 for one year from the closing date of the transaction. Upon closing, Second Wave will be assuming all of Milagro’s estimated net debt of nearly $22 million. Second Wave will proceed with a $23 million financing in which Brookfield Bridge Lending Fund Inc. has agreed to back stop a private placement of up to $10 million of equity and a new floating rate convertible junior secured debenture financing of $13 million principal amount to Second Wave. These will enable Second Wave to eliminate all of the estimated net debt of Milagro on the completion of the transaction.

GE to invest $5B outside US by 2010

GE Energy Financial Services, a unit of GE, plans to invest $5 billion outside the US to grow and help meet soaring energy demand by the end of 2010. It has opened offices in Southeast Asia and the Middle East, and expanded in India. The increase of new investments outside the US to nearly a quarter of its total plan is a significant boost from its traditional level of 10%. Building on its expansion in India last year, GE Energy Financial Services is deploying investment origination, underwriting and legal support in emerging markets. To cover Southeast and East Asia, GE Energy Financial Services recently opened a Singapore office, headed by James Berner. To reach the Middle East, GE Energy Financial Services has opened an office, headed by Suresh Vasan, in Dubai, UAE.

HitecVision receives $800M for new fund following heavy oversubscription

HitecVision has received commitments of US$800 million for its new fund HitecVision V, exceeding the original US$600 million target. The fund has attracted support from existing blue chip investors and a select group of new international investors, resulting in a diversified investor base comprising European and US pension funds, insurance companies, fund of funds, endowments, foundations and families, and other financial institutions. The HitecVision team and associated entities have committed a significant contribution to the fund. With the new fund HitecVision manages three private equity funds with a total committed capital base of over US$1.2 billion. The fund is expected to make eight to ten platform investments in Europe and North America within the next five years, with equity investments ranging from US$30 million to US$150 million. HitecVision targets high-growth companies with revenues between US$50 million and US$300 million, and will partner alongside management teams who are motivated to aggressively grow their oil service or E&P businesses. MVision Private Equity Advisers acted as global placing agent and Bugge, Arentz-Hansen & Rasmussen was legal counsel to HitecVision V.

TXCO Resources increases Fort Trinidad-area interest

TXCO Resources Inc. has increased its Fort Trinidad Field-area holdings in East Texas through a $19.6 million acquisition of acreage and reserves. Through separate transactions with several private parties, the company has increased its holdings in the area from 18,000 gross acres to 36,498 gross acres. The acquisition includes 8.1 bcfe of proved reserves at year end, purchased at an average cost of $2.06 per mcfe. The Fort Trinidad Field is located in portions of Houston, Madison, and Leon counties.

Varel Europe expands; becomes company’s fastest growing market segment

Carrollton, Tex.-based Varel International’s Varel Europe subsidiary, is expanding. Such expansions include increasing the Eastern Hemisphere polycrystalline diamond compact drill bit manufacturing facility, located in Tarbes, France, and adding applications engineering personnel to the many of its regional offices. Based in Pau, France, Varel Europe is Varel’s fastest growing market segment and has played a significant role in the company being recognized as the “fastest growing drill bit company in the world.” Presently, more than half of the company’s total revenue comes from sales in the eastern hemisphere. Additionally, Varel has entered into an agreement to begin PDC drill bit assembly in Indonesia. Bit assembly is slated to begin by Summer 2008.

Chubb joins renewable energy and green building groups

The Chubb Group of Insurance Companies has joined the American Council on Renewable Energy and the US Green Building Council in an effort to better serve the needs of its commercial customers and support the development of the alternative energy marketplace. Chubb recently formed a green energy team, made up of experienced underwriters and loss control specialists. The team will further develop core commercial insurance products and services geared toward customers that operate within this sector. Chubb insures and assesses risks for renewable energy producers and distributors, including wind turbines, ethanol and biodiesel plants, solar energy systems, hydroelectric power generators and other renewable energy operations. The American Council on Renewable Energy is a non-profit organization that works to bring all forms of renewable energy into the mainstream of America’s economy and lifestyle. The US Green Building Council is a non-profit organization committed to expanding sustainable building practices.

Mesa Energy acquires shut-in Louisiana assets

Mesa Energy Inc. has acquired Poydras Energy Partners LLC, a New Orleans-based operating company, along with the Main Pass 35 project, a shut-in oil field in Plaquemines Parish, La. The field was producing nearly 155 b/d before it was shut-in prior to the arrival of Hurricane Katrina. The wells were undamaged but there was extensive damage to the processing facility. This project includes at least two, high-potential re-completion opportunities, at least one offset oil PUD location and both shallow and deep natural gas potential. Total proved reserves net to 8/8ths working interest are 559,812 boe with an additional 1,002,663 boe categorized as probable/possible.