Sept. 19, 2017

Devon to sell Lavaca County Eagle Ford assets for $340M

Devon Energy Corp. has entered into a definitive agreement to sell its Lavaca County assets in the Eagle Ford. In aggregate, net production from the divested properties averaged approximately 4,000 oil-equivalent barrels (boe) per day (60% oil). Field-level cash flow accompanying these assets, which excludes overhead costs, is projected to approximate $30 million annually. Proved reserves associated with these properties amounted to less than 10 MMboe at Dec. 31, 2016. Combined with other minor asset sales completed across its US operations, proceeds from the company's recently announced $1 billion divestiture program have now reached $340 million. Efforts to monetize Devon's Johnson County properties in the Barnett Shale are progressing. The Johnson County assets represent approximately 20% of the company's Barnett Shale net production and cash flow. RBC Richardson Barr acted as a financial advisor to Devon on the Lavaca County transaction, which is subject to customary terms and conditions and is expected to close by the end of 2017.

Israel's PZ Projects launches platform for registering natural gas trades

Israel's PZ Projects is launching a software platform that enables the registering of transactions between companies that are active in the global natural gas sector. Developed over a two-year period, the platform has been successfully tested by several local players active in the gas market.The platform allows players in the gas sector, including both consumers and gas marketing companies, to list their proposals for buying or selling of natural gas, to establish direct contact with potential partners and fully document the trade within the system after negotiations are conducted by the parties outside of the platform. A gas consumer interested in selling surplus gas by using the platform lists the volume available for sale, the asking price and the time at which the gas will be available for delivery.

Milestone Environmental expanding

Houston, TX-based Milestone Environmental Services has broken ground on its new oilfield waste disposal facility located south of Midland. The new South Midland facility marks Milestone's second in the Permian Basin and their eighth in Texas. The site is planned to open in the fourth quarter of 2017. The South Midland facility will be capable of taking drilling, completion and production waste streams including oil-based and water-based muds, drilling fluids, flowback, tank bottoms, dirty water and produced water. Using its proprietary slurry injection process, Milestone securely injects a mixture of the waste streams over a mile below the earth's surface where they are safely sequestered beneath multiple confining layers of stone. The facility has been designed to efficiently provide full-service washouts for trucks and frac tanks. The company, a portfolio company of Intervale Capital LLC, has received a line of credit from Riverstone Credit Partners LP, a dedicated energy credit fund managed by Riverstone Holdings LLC. Financial terms were not disclosed. Houston, TX-based Milestone Environmental Services is a provider of injectable oilfield waste disposal with seven injection locations in Texas.

Goodnight Midstream acquires Wyatt Water Solutions, expands into Eagle Ford

Goodnight Midstream, a professional fluids management company, has acquired Wyatt Water Solutions LLC, establishing a footprint in the Eagle Ford shale of South Texas. Wyatt Water Solutions LLC will operate as a wholly owned subsidiary of Goodnight Midstream and begin operations in Atascosa County, Texas. Eric Leuenberger, founder of Wyatt Water Solutions, joins Goodnight Midstream as vice president of Eagle Ford operations and will remain president of Wyatt Water Solutions LLC. Leuenberger brings over 17 years of operational experience in multiple basins across the US, both unconventional and conventional, with a primary focus on South Texas. Notably, Leuenberger developed Eagle Ford assets in Atascosa, Live Oak, and Karnes counties as Operations Manager for Cinco Resources Inc. The acquisition is financed by Goodnight's credit facility, operating cash flows and equity investments from Tailwater Capital LLC, an energy-focused private equity firm based in Dallas. With this transaction, Goodnight now offers a network of produced water gathering and disposal systems in the Williston Basin, the Permian Basin, and the Eagle Ford shale.

New decommissioning company makes acquisition, names CEO

Well-Safe Solutions, a specialist well abandonment company focused on the North Sea, has acquired Intervention Project Management (IPM). Terms were not disclosed. IPM's founder and managing director, Phil Milton, has been appointed CEO of Well-Safe Solutions. Formed in 2007, IPM provides independent engineering, project management, and consultancy services to the global oil and gas industry. The firm specializes in well intervention, including plug and abandonment, and production optimization. The company plans to acquire assets to carry out well abandonment work, including a semi-submersible rig, jack-up rig, and light-weight intervention vessel. Simmons & Co. served as financial advisor for Well-Safe.

Knight Energy files Chapter 11, enters RSA

Knight Energy Holdings LLC and its operating affiliates have signed a Restructuring Support Agreement (RSA) with certain debt holders representing over 87% of the company's senior secured credit facility due 2018 in conjunction with its voluntary filing of a pre-negotiated Chapter 11 petition in the US Bankruptcy Court for the Western District of Louisiana, Lafayette Division. The RSA provides for a deleveraging transaction pursuant to which Knight will improve its balance sheet by equitizing over $175 million of its existing secured obligations. The company is also seeking approval of a $14.5 million DIP financing facility. Heller Draper is acting as lead restructuring counsel, a representative from Opportune is serving as the company's chief restructuring officer, and Farlie Turner has served as the company's financial advisor. Knight, a privately-owned oilfield rental tool company, supplies rental equipment and services for drilling, completion, and well control activities to the oil and natural gas industry.

Hibernia Energy III partners with NGP

Hibernia Energy III LLC has raised $250 million of new equity commitments from NGP through NGP Natural Resources XII LP, the most recent NGP private equity fund focused on natural resources. In addition to the commitment from NGP, Hibernia management and members will be committing in excess of $21 million in equity. Hibernia III's strategy is to acquire and develop unconventional oil and gas assets in Texas. The Houston, Texas based Hibernia team previously acquired, operated and developed assets in Martin County, Texas within the Midland Basin, divesting assets to both Athlon Energy and Eagle Energy Trust. Hibernia III is led by P. Embry Canterbury, Sean Keenan, and John Blevins. Embry previously co-founded Hibernia Energy LLC (Hibernia I) and Hibernia Energy II LLC (Hibernia II), which originally partnered with NGP in July 2010 and May 2013. Embry will be joined by Sean Keenan and John Blevins who will act as CFO and COO, respectively.

Hastings invests in Reach Wireline

Hastings Equity Partners, a private equity firm focused on investing in lower, middle-market energy services, and equipment companies, is pleased to announce its ninth Fund III platform investment in Reach Wireline LLC. Based in Fort Worth, Texas, Reach is a provider of cased hole wireline services in the Permian, Mid-Continent, and Marcellus regions. Founded in 2017, Reach is a service provider that offers greaseless cable and specializes in extended laterals, highly deviated wells, and complex completion designs. Since its inception in 2017, Reach has acquired Rush Wellsite Services and Precise Pressure Control.

Chevron contributes $1M to Hurricane Harvey relief efforts

Chevron Corp. is making a $1 million contribution to the American Red Cross for the immediate relief efforts under way to assist victims of Hurricane Harvey. "Our thoughts are with all the people who have suffered tremendous losses and disruption from this catastrophic hurricane and related flooding," said Jeff Shellebarger, president, Chevron North America Exploration and Production Company. "As a business with deep ties to Texas and Houston, this donation will assist with the initial critical relief process. We will continue to work with responding organizations to support ongoing recovery efforts, which we hope can begin soon." The donation will support relief efforts throughout the affected regions, including both Corpus Christi and the greater Houston metropolitan area. In addition, the company will match donations made to the relief efforts by its employees and retirees, many of whom have seen the tragedy unfold first-hand. The American Red Cross is a key partner in delivering that assistance.

ExxonMobil increases Hurricane Harvey relief support to $1M

Exxon Mobil Corp. has increased to $1 million its support for relief and recovery efforts in Houston and other Gulf Coast communities impacted by Hurricane Harvey. A contribution of $500,000 will be provided to the United Way of Greater Houston and follows an initial allocation of $500,000 for the American Red Cross which was made on Friday. "Our thoughts remain with our families, friends and neighbors in Houston and other communities impacted by flooding and other effects of Hurricane Harvey," said Darren W. Woods, ExxonMobil chairman and CEO. "We will continue to assess needs and to assist government authorities and disaster relief agencies in providing critical goods and services to those in need."

Northstar Offshore Ventures acquires GoM oil and gas assets

Northstar Offshore Ventures LLC (NOV), a Houston, Texas based, wholly-owned subsidiary of Orinoco Natural Resources, LLC, has acquired certain oil and gas assets from Northstar Offshore Group LLC (NOG) pursuant to a Section 363 sale of the US Bankruptcy Code. The sale order was approved on Aug. 2, and effective on Aug. 1, 2017. The assets sold are all located on the Outer Continental Shelf of the Gulf of Mexico and consist of eight producing fields, nine non-producing fields, and two primary term lease blocks. The purchase price was $13.25 million in cash plus other consideration. Investment banking firm Parkman Whaling LLC conducted the sales and marketing process and CR3 Partners LLC acted as chief restructuring officer and financial advisor to NOG.


Flotek Industries Inc. received a letter from the staff of the Securities and Exchange Commission (SEC) that the fact-finding inquiry by the SEC related to the company's FracMax® software and the efficacy of CnF® has been concluded and that the staff does not intend to recommend any enforcement action by the SEC. The SEC provided this notice pursuant to the guidelines set out in the final paragraph of Securities Act Release No. 5310. The company had previously created a special committee of independent directors and retained outside consultants to direct the review of potential concerns raised regarding the previously disclosed matters. The findings of the outside review process (which have been previously disclosed) were consistent with the recommendation of no action against Flotek Industries.

Moss Adams and Hein & Associates to combine

Moss Adams LLP, an accounting, consulting, and wealth management firm, has signed a letter of intent to combine with accounting firm Hein & Associates LLP. Following the completion of standard due diligence, the agreement is expected to be effective Nov. 1, 2017. With the combination, Moss Adams will expand its geographic footprint with new office locations in Denver and Houston, while also deepening resources in Dallas and Orange County. Hein also brings an oil and gas practice, a new sector that will round out the existing industry portfolio at Moss Adams. Founded in 1977, Hein & Associates provides accounting and advisory services to clients across a number of industries, including energy, manufacturing and distribution, real estate, construction, and technology. Revenue of the combined firm is expected to near $600 million.

Phillips 66 contributes to Hurricane Harvey disaster relief efforts

Phillips 66 today will contribute $1 million to the American Red Cross to assist relief efforts arising from Hurricane Harvey and the resultant flooding in southeast Texas. "Our thoughts and prayers go out to all those affected by the disaster, including our many employees, friends and neighbors across southeast Texas," said Greg Garland, chairman and CEO of Phillips 66. "The solidarity of our community is remarkable, and I am confident that this unity and spirit to overcome will drive our efforts to rebuild. It is our sincere hope that this contribution from Phillips 66 will help those efforts and those most in need." The donation will support relief efforts throughout southeast Texas, including the greater Houston metropolitan area and Brazoria County. In addition, the company has an employee matching program, which will match employee contributions for disaster relief up to $15,000, and a volunteer grants program which will provide financial donations for volunteer hours provided by Phillips 66 employees.

Apollo Natural Resources Partners II, Double Eagle Development form Double Eagle Energy Holdings III

Affiliates of Apollo Global Management LLC (together with its consolidated subsidiaries, "Apollo") and Double Eagle Development LLC have expanded their relationship to create Double Eagle Energy Holdings III LLC. Headquartered in Fort Worth, Texas, Double Eagle III will primarily focus on investing in oil and gas properties in the Permian Basin. Double Eagle III was formed by the same management team that led its predecessor companies, with John Sellers and Cody Campbell continuing to serve as co-CEOs. Formation of this new company follows the recent sale of Double Eagle Energy Permian LLC to Parsley Energy Inc. for approximately $2.8 billion. Double Eagle II developed a significant acreage position in the heart of the Midland Basin, including approximately 72,000 net acres, production of 3,600 barrels of crude oil equivalent per day and approximately 3,300 net horizontal drilling locations. Double Eagle III will pursue a similar strategy to Double Eagle II, but on a significantly larger scale and with a more substantial upfront commitment from funds managed by Apollo, along with the management team.


China has become the world's third-largest shale gas producer, after only the US and Canada, according to the IPAA's Energy-in-Depth newsletter and other sources. Last year, China pumped nearly 8 billion cubic meters of shale gas. The annual result was a 76.3% improvement on 2015, China's Ministry of Land and Resources said - a record amount. Investments in shale gas exploration reached US$1.3 billion. Shale gas production in China has continued to grow this year, as it seeks to move away from crude oil and bets increasingly on gas as the cleaner fuel amid government efforts to reduce pollution levels. Earlier this month, the Ministry said it will be opening two more production bases for shale gas in the south of China, and it will also schedule more oil and gas exploration tenders. The two bases will be in the Guizhou province and Hubei province. The tender for the US$193-million Guizhou development project took place on August 18 and the winner was a local company, Guizhou Industry Investment (Group) Co.


A recently released study points to the need for a massive storage hub built underground somewhere in Appalachia to hold the raw materials that will be used as the feedstock for the petrochemical plant being built in Beaver County and proposed by others in the tri-state region (Pennsylvania, Ohio, and West Virginia). That storage hub would be a place to keep the ethane - a byproduct of natural gas - that is produced in large quantities in the extraction of natural gas and then ship it where needed for manufacturing. Such a hub would cost billions of dollars over many years. The study, done by the Appalachian Oil and Natural Gas Research Consortium at West Virginia University, is the latest effort of the Tri-State Shale Coalition, which looks for opportunities to boost energy and manufacturing in Pennsylvania, Ohio and West Virginia. The study found locations - some in Greene and Washington counties - where the geology would support the building of mines that would store liquid ethane that can be turned into plastics in a method that will be employed by Royal Dutch Shell's Beaver County cracker.