OGFJ100P company update
Independent research firm IHS Herold Inc. has provided OGFJ with updated production data for our periodic ranking of US-based private E&P companies. The rankings provided by IHS are based on operated production only within the United States.
First, you might notice a few companies no longer appear on the list. Beginning with this run of 2011 data, IHS Herold has removed companies composed of joint venture entities owned/partnered by public companies (Aera Energy and Beusa), as well as private subsidiaries of public companies or public subsidiaries of private companies that qualify as MLPs (Quantum Resources Management and EnerVest Operating). The change has been made to better reflect the nature of how the firm qualifies private oil companies in line with its existing methodology.
New to the list in 2011 are Summit Petroleum LLC, Venture Oil & Gas Inc., Titan Operating LLC, Reliance Energy Inc., Laredo Energy IV, CrownQuest Operating LLC, Citrus Energy Corp., Aruba Petroleum Inc., and Choice Exploration Inc.
Acquisitions and divestitures
In late August, Dynamic Offshore Resources LLC acquired substantially all of the Gulf of Mexico properties of XTO Offshore Inc. and other related subsidiaries of ExxonMobil Corp., for $182.5 million.
Steadily increasing its presence in the US Gulf of Mexico since its founding in 2008 with a $500 million equity commitment from Riverstone Holdings LLC and management, the Houston-based company comes in at No. 18 in this installment of the OGFJ100P.
The assets acquired from XTO have current production in excess of 7,000 boepd and represent interests in 79 active leases covering approximately 130,000 net acres on the Gulf of Mexico Shelf.
Based on a reserve report prepared by Netherland, Sewell & Associates Inc. as of July 31, 2011, the acquired assets contain proved reserves of 13.5 MMboe, of which approximately 40% is oil and 72% is proved developed. Operated properties comprise greater than 90% of the proved reserve value and current production.
The company's growth in the Gulf of Mexico is credited for its ability to secure the new four-year, $750 million senior secured credit facility it worked out July 7 with a syndicate of ten banks led by The Royal Bank of Scotland plc.
In conjunction with closing the new facility, Dynamic acquired the remaining minority equity interests in Bandon Oil and Gas LP.
Earlier in the year, two separate deals saw the company acquire Gulf of Mexico properties from foreign-domiciled owners exiting the GoM shelf for a combined purchase price of $42.5 million.
The company has also acquired Gulf of Mexico shelf assets from Beryl Oil and Gas LP, Bayou Bend Petroleum, and Northstar Exploration and Production Inc.
In another deal, privately-held Hilcorp has acquired Cook Inlet oil and gas assets in an agreement with Alaskan Chevron subsidiary Unocal.
The deal includes Unocal's interests in Granite Point, Middle Ground Shoals, Trading Bay and MacArthur River fields as well as 10 offshore platforms, an onshore gas field including the Ninilchik and Beluga River units, and two storage gas facilities. Interests in the Cook Inlet Pipeline Co. and Kenai Kachemak Pipeline LLC are also included.
Current net production from the operations is roughly 3,900 bo/d and 85 MMcf/d or 4,410 boe/d.
Chevron expects to maintain its interest in the North Slope oil fields and a 1.36% interest in the trans-Alaska pipeline system.
The deal is expected to close by year-end. Terms were not disclosed.
"The acquisition by Hilcorp allows the company to reinvest its cash flow to bolster its offshore operations and add oily production after divesting its Eagle Ford acreage along with its partner, private equity firm KKR, to Marathon Oil and Gas for $3.5 billion earlier in 2Q11," said Global Hunter Securities in a note to investors July 20.
Click here to download the pdf of the "2011 Year-to-date production ranked by BOE"
Click here to download the pdf of the "2011 Year-to-date production - alphabetical listing"
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