Chesapeake makes $1.1B sale to boost drilling

Chesapeake Energy Corp. has monetized a portion of its proved reserves and production in certain Chesapeake-operated producing assets in Kentucky and West Virginia. The company has sold a volumetric production payment to affiliates of UBS AG and DB Energy Trading LLC (a subsidiary of Deutsche Bank AG) for proceeds of $1.1 billion. The transaction includes roughly 210 bcfe of proved reserves and 55 MMcfe/d of current net production, or approximately 2% of the company’s current proved reserves and net production. Chesapeake has retained drilling rights on the properties below currently producing intervals and outside of existing producing wellbores. Jefferies Randall & Dewey acted as financial advisor to Chesapeake.

Superior signs $750M in contracts to plug, decommission platforms

Superior Energy Services Inc.’s subsidiary, Wild Well Control Inc., has signed contracts with subsidiaries of BP plc, Chevron Corp., and Apache Corp. to decommission seven downed platforms and related well facilities located offshore Louisiana for $750 million. The work will take place in water depths ranging from 85 feet to 135 feet and is expected to take three years to complete.

Pioneer closes three acquisitions totaling $445M

Pioneer Natural Resources closed three previously announced acquisitions, expanding its position in the Spraberry and Raton fields and gaining additional acreage in the Barnett shale. Pioneer invested $295 million to expand its Raton and Spraberry field holdings, gaining additional production and acreage with upside to expand proved reserves and production through additional step-out and infill drilling. The company invested $150 million in the Barnett shale, in anticipation of building a core position in the play. Combined, these three acquisitions add more than 1,000 drilling locations and roughly 140 million boe of resource potential.

Fluor awarded five-year $334M contract by KOC

Irving, Tex.-based Fluor Corp. has won a five-year $334 million consultancy services contract to provide overall program management on several projects for Kuwait Oil Co. (KOC). Fluor will provide project and construction management and other services for new facilities and upgrading of existing facilities. The company plans to book the first two years of the contract, or roughly $90 million, in the first quarter 2008. Fluor Corp. provides services on a global basis in the fields of engineering, procurement, construction, operations, maintenance and project management.

ATP acquires majority interest at Canyon Express Hub

ATP Oil & Gas Corp. has increased its working interest ownership to 66.7% from 16.67% in Mississippi Canyon Block 348 (Camden Hills) and to 55.09% from 45.08% in the Canyon Express Pipeline System (CEPS). ATP acquired the ownership interest pursuant to a sale and purchase agreement with an independent energy company. ATP is the operator of the CEPS and will become the designated operator of MC 348. The CEPS provides the closest pipeline interconnect for the offshore deepwater leases offered at Sale 205 for the first time. Camden Hills is connected to the CEPS which consists of two 12” pipelines capable of transporting 500 MMcf/d. ATP Oil & Gas is an international offshore oil and gas development and production company with operations in the Gulf of Mexico and the North Sea.

Encore Energy Partners to acquire assets for $250M

Encore Energy Partners will acquire oil and natural gas producing properties in the Permian and Williston basins from Encore Acquisition Co. (EAC) in exchange for total consideration of $250 million. The consideration will consist of $125 million in cash and nearly 6.88 million common units representing limited partner interests in ENP. In order to fund the cash portion of the price, ENP will borrow under its existing $300 million revolving credit facility. EAC and its affiliates will own nearly 21.98 million of ENP’s outstanding units, or roughly 68%. The oil and natural gas properties being acquired from EAC have proven reserves of 10.8 MMboe, 88% proved developed producing, and 65% oil. There is also a current production of 1,800 boe/d, 83% operated, and 63% oil. Approximately 80% of current production is located in six fields in the Permian basin. The remaining production is located in three fields in the Williston basin.

Weaver and Tidwell merges with Patterson, Newman & Associates

Weaver and Tidwell LLP, the Southwest’s largest independent regional accounting firm, has merged with Patterson, Newman & Associates LLC (PNA). Houston-based Patterson, Newman & Associates LLC was formed by William Newman and James Patterson to conduct audit and consulting services for the Environmental Protection Agency, US Customs, the State of Arizona, and both public and private companies in the petroleum industry. Currently, PNA performs the attestation engagements required by the EPA, laboratory audits and regulatory compliance audits. William Newman will be the partner in charge of the energy attestation practice of Weaver and Tidwell. Wade Watson will join the firm as a partner and will assist Newman in managing the energy attestation practice. PNA’s Charles Flaniken will join the combined firm as a consultant and contract employee.

Cameron wins $190M contract for services offshore Venezuela

Cameron has been awarded a contract worth more than $190 million to provide subsea equipment and services to Petroleos De Venezuela SA (PDVSA), the Venezuelan national oil company. Initial equipment delivery and installation is slated to begin in the first quarter of 2008, with additional deliveries of subsea trees and associated equipment to continue through 2009.

Enterra Energy enters purchase and sale agreement for $41 million

Enterra Energy Trust has entered into purchase and sale agreements with three counterparties for the sale of oil and gas properties. The three transactions are anticipated to generate total gross proceeds of $40.925 million. The Trust also closed a further sale of minor assets in December 2007 for $5.34 million. All properties included in the four transactions are in Alberta, with total production of nearly 1,450 boe/d. Proceeds from will be substantially directed to the debt reduction program.

StatoilHydro sells Spinnaker shallow water assets to Mariner

StatoilHydro has entered into an agreement to sell all of the former Spinnaker shallow water Gulf of Mexico assets to Mariner Energy Inc. for $243 million cash. The transaction involves the divestiture of an operating subsidiary, which owns StatoilHydro’s shelf operations. StatoilHydro is exiting the shallow water Gulf of Mexico and positioning itself to focus on the deepwater. Merrill Lynch Petrie Divestiture Advisors advised StatoilHydro on this transaction.

Swift Energy executes agreements to sell major portion of New Zealand assets

Swift Energy Co. has executed definitive agreements with certain subsidiaries of Origin Energy Ltd. to sell certain New Zealand assets for a minimum of $87.8 million. Additional agreements for the sale of the remainder of the New Zealand assets are being negotiated. If all transactions are completed, Swift Energy expects cash proceeds of between $100 and $110 million. The sale is expected to result in a non-cash book write-down of roughly $115 to $125 million. Proceeds will be used to reduce $200 million debt under the company’s bank line of credit. Origin Energy will take over the Swift Energy New Zealand office space leases in Wellington and New Plymouth and will extend offers of employment to New Zealand staff. Houston-based Swift Energy Co. engages in developing, exploring, acquiring, and operating oil and gas properties, with a focus on oil and natural gas reserves in the onshore and inland waters of Louisiana and Texas.

W&T enters $116M offshore property agreement with Apache

W&T Offshore entered into an agreement with Apache Corp. to acquire Apache’s interest in Ship Shoal 349 field, located off the coast of Louisiana, and covering two federal offshore lease blocks, Ship Shoal Blocks 349 and 359 for $116 million in cash. The transaction is expected to close on or before April 30, 2008 and will be financed from available cash on hand.