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A&D Transactions Article - Marble Falls Acquisition
A&D Transactions Article - Marble Falls Acquisition
A&D Transactions Article - Marble Falls Acquisition
A&D Transactions Article - Marble Falls Acquisition
A&D Transactions Article - Marble Falls Acquisition
A&D Transactions Article - Marble Falls Acquisition
A&D Transactions Article - Marble Falls Acquisition
A&D Transactions Article - Marble Falls Acquisition
A&D Transactions Article - Marble Falls Acquisition
A&D Transactions Article - Marble Falls Acquisition
A&D Transactions Article - Marble Falls Acquisition
A&D Transactions Article - Marble Falls Acquisition
A&D Transactions Article - Marble Falls Acquisition
A&D Transactions Article - Marble Falls Acquisition
A&D Transactions Article - Marble Falls Acquisition
A&D Transactions Article - Marble Falls Acquisition
A&D Transactions Article - Marble Falls Acquisition
A&D Transactions Article - Marble Falls Acquisition
A&D Transactions Article - Marble Falls Acquisition
A&D Transactions Article - Marble Falls Acquisition
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A&D Transactions Article - Marble Falls Acquisition

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Article referencing the DTE and Atlas Energy regarding the Marble Falls acquisition. Additionally, three of the counties that they will be focusing the drilling in, are counties which Petrichor owns …

Article referencing the DTE and Atlas Energy regarding the Marble Falls acquisition. Additionally, three of the counties that they will be focusing the drilling in, are counties which Petrichor owns property in as well (Jack, Palo Pinto and Clay).

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  • 1. December 5, 2012 • Volume 23, No. 16 Transactions Serving the marketplace with news, analysis and business opportunitiesFreeport shocks with $20 billion McMoRan & Plains buy Resolute triples Permian Global miner Freeport-McMoRan Copper & Gold raised investor eyebrows production for $120 millionby jumping back into the US upstream oil and gas sector, announcing its reunion with Resolute Energy is adding 1,4181994 spin-off McMoRan Exploration and also picking up Plains E&P in a pair of boepd of Permian Basin production inacquisitions totaling $19.6 billion in cash, equity and debt. To secure the deals, Freeport a $120 million deal The producing and paid shareholders a stock price premium of 74% for McMoRan and 39% for undeveloped properties are primarily Plains in cash and equity. The located in Howard Co., Texas (about The international mining firm takes out deals came as a surprise as six miles away 2 respected public E&Ps in one fell swoop.McMoRan has been plagued by operational from an existingdelays at its landmark Davy Jones discovery and Plains just closed November 30 on a $6.1 Resolute property with significantbillion purchase of deepwater Gulf of Mexico assets from BP and Shell—fundamentally production) and Lea Co., New Mexicoshifting the E&P firm’s portfolio from primarily onshore to about two-thirds offshore. and hold proved reserves of 4.1 The two takeovers give Freeport a large oil and gas asset base focused on the MMboe (73% oil).deepwater Gulf of Mexico and deep shelf gas prospects. In total, Freeport is gettingreserves of 575 MMboe 1P (64% liquids) and 1,581 MMboe 3P (45% liquids) with an Assets have 4.1 MMboe 1P (37% PUD) vs. Resolute’s pre-buy 3.5 MMboe (66% PUD).additional 6.3 Bboe of near-term resource potential. Continues On Pg 18Atlas buys highly attractive Marble Falls for $255 million The deal greatly increases both Atlas Resource Partners announced its fifth and largest acquisition since the Resolute’s Permian production andshale-focused MLP was spun off from Atlas Energy in March—picking up gas reserves from 600 boepd (in Q3) andand electric utility DTE Energy’s remaining upstream assets for $255 million. 3.5 MMboe. The acquired reserves are The assets in the Fort Worth Basin primarily target the shallow, liquids- located 44% in Howard Co. and 36% in rich Marble Falls limestone Lea Co.’s Denton field with other fields Pays DTE $500/acre plus $6.30 accounting for the remaining 20%. on acreage offsetting Atlas’ QPi ppboe/g or $58,000 ppboe/d.existing Barnett shale position. Continues On Pg 5 Located in Jack, Erath, Palo Pinto and Clay Cos., Texas, the DTE propertiesare estimated by Atlas to hold proved reserves of 35 MMboe (24% oil, 33% NGLs, FEATURED DEALS43% gas) which will increase the company’s total by 30% to 150 MMboe while alsoboosting liquids to 26% of total reserves from 17%. DTE placed the assets’ proved SOUTH TEXAS PROJECT 2-Horizontal PDP’s. 14,200-Net Acres.reserves at 46.5 MMboe (16% oil, 36% NGLs, 48% gas) at the end of Q2. With 261 LAVACA COUNTYwells currently producing 3,800 boepd (and an average 4,000 boepd expected in CONNIFF & GRAHMANN UNITS PP2013), the 88,000-net-acre acquisition is 80% undeveloped, 100% operated and held Eagleville (Eagle Ford). ~14,000 Ft.with an average 99% WI. Continues On Pg 16 Austin Chalk, Edwards & Buda. SIGNIFICANT UPSIDE POTENTIAL 100% OPERATED WI; 75% NRI 136Vanguard picks up Montana production for $131 million Gross Prod: 23 BOPD & 678 MCFD BOED Vanguard Natural Resources agreed to acquire mature non-op assets within Net Prod: 17 BOPD & 509 MCFDMontanas Bakken trend for $131 million from an undisclosed company. Vanguard said PLS IS BUILDING DATA ROOMcurrent net production of 1,100 boepd will be immediately accretive to cash flow when the PP 1932DVdeal closes in December. However, the properties are subject to third-party preferential PERMIAN SALE PACKAGE rights that could reduce the ultimate size of the deal. Those preferential rights 27-PDP Wells. ~1,930 Net Acres. expire December 9. MIDLAND, ECTOR & ANDREWS CO. With the Montana purchase, 2H12 acquisitions total ~$900 million, with other buys in Mid-Con & Rockies. SPRABERRY (TREND AREA) PPVanguard has now spent ~$900 million Multipay: Wolfberry; Strawn, Wolfcamp ---Dean, Spraberry & Clearforkthis year acquiring assets—all of which occurred during H2. First it paid Antero 50-100% OPERATED WI; ~38-75% NRIResources $434.4 million in June for Woodford and Fayetteville assets holding proved Gross Prod: 573 BOPD & 1,284 MCFD 393reserves of ~420 Bcfe (82% gas, 58% developed) and producing ~76 MMcfed (91% Net Prod: 320 BOPD & 741 MCFD BOEDgas) on 71,300 net acres. Net Cash Flow: >$1,000,000/Mn Then in early November Vanguard announced a $335 million purchase of Piceance Substantial Drilling Upside Offers Due By December 10, 2012Basin assets in Colorado and Wind River Basin assets in Wyoming from Bill Barrett— CALL PLS FOR MORE INFOwith production of ~65 MMcfed (86% gas) and proved reserves of ~300 Bcfe (78% PP 1695DVgas, 80% developed) on 208,100 net acres. Continues On Pg 17 All Standard Disclaimers & Seller Rights Apply.
  • 2. Transactions 2 December 5, 2012A&D News TPG-Axon ratchets up theAbraxas kicks off divestiture program in Texas & Montana heat on SandRidge Abraxas Petroleum announced it has entered a preliminary agreement to sell Hedge fund TPG-Axon Managementits 25% WI in the Nordheim project targeting the Eagle Ford for $19.1 million to an sent a second letter on November 30unnamed “large institutional buyer.” The assets being divested consist of 544 net to SandRidge. “An outright sale ofacres in DeWitt Co., Texas with net production of ~380 Mcfed (56% gas, 26% NGLs, the company is the most realistic path 26% oil). Abraxas will retain its rights to production, reserves and to restoring the upside in the overlying Edwards limestone across both its Nordheim shareholder value thatand Wagner lease blocks. Petrie Partners is acting as Abraxas’ advisor in the sale has been destroyed,” fund manager Dinakarexpected to close December 17. The asset was part of Abraxas’ Blue Eagle JV with Singh wrote. A second option includesRock Oil until the two companies agreed in August to dissolve the partnership. dramatic simplification and restructuring of In another non-core divestiture, the company. TPG-Axon has increased its Got $20 million in sale of Eagle Ford stake in SandRidge from 6.2% to 6.5%.Abraxas agreed to sell its ~10,000-net-acre acreage, $3 million for Montana land.Alberta Basin leasehold in Montana and The new letter notifies SandRidge oflease its mineral acreage in the area for combined proceeds of $2.85 million and 1.25- TPG-Axons intent to take the fight directly5.00% ORRI. Closing was scheduled for late November on the Alberta Basin properties to shareholders and conduct a shareholderwhich do not have any associated production or reserves. Abraxas will use the proceeds consent solicitation to amend the bylaws toto reduce the $134 million in debt owed under its $150 million credit facility. allow for a de-staggered board and remove “The Alberta Basin and potential Nordheim asset sales are the start of what we directors with or without cause, and tohope to be an active and profitable campaign of divesting non-core assets,” said allow for removal and replacement of theAbraxas chief Bob Watson. “We remain committed to enhancing shareholder return entire board of directors. TPG-Axon hasby de-levering the balance sheet and refocusing the portfolio on our highest returning retained MacKenzie Partners Inc. toand highest growth basins.” handle the shareholder solicitation. The November 30 letter followsInvestor group pushes for further asset sales— a November 8 initial letter expressing Unsatisfied with company efforts, Abraxas investor Clinton Group (which believes discontent with SandRidges performanceitself to be one of the top 10 stockholders) wrote a letter to the company’s board urging and management. On Novemberit to rapidly sell non-operated and undeveloped acreage which it believes could bring an 15, investor Mount Kellett Capitaladditional $160 million. Clinton Group blamed Abraxas’ “unfocused” approach for stock’s Management (owner of 4.5% of32% slide over the past six months during which peers have seen they’re stock rise ~30%. SandRidge) also sent a letter expressing “In our view, the Company is too concern over management and value. Clinton Group has launched shareholder small to effectively support such a highly Following TPG-Axon’s initial letter, campaigns against 9 firms in 5 years. diversified such a highly diversified SandRidge adopted a poison pill.model, and management must take steps to consolidate operations and exploit economiesof scale by focusing on development activities in a small number of key basins,” theinvestment group wrote, specifying Abraxas’ high-working interest, operated holdings ABOUT PLSin the Bakken, Eagle Ford and Permian. The PLS A&D Transactions covers news Clinton Group also complained about Abraxas’ lack of transparency with regard the active asset marketplace with mergers,to production guidance and drilling results—a claim the E&P firm apparently took divestitures, transaction, analyst comments,to heart. Four days later Abraxas announced Q4 guidance of 4,300-4,500 boepd and deals in play and deal metrics.2013 guidance of 4,900-5,200 boepd (up 21-28% YOY). The Q4 guidance reflects the To obtain additional PLS product details,Nordheim divestment as well as recent and expected Eagle Ford and Bakken well results. drill www.plsx.com/publications. PLS Inc. Suggested Further Abraxas Divestitures & Est. Values One Riverway, Ste 2200 Houston, Texas 77056 Est. Net Est. Total 713-650-1212 (Main) Region Formation Acres Est. $/Acre ($MM) 713-658-1922 (Facsimile) Powder River Basin Niobrara 17,800 $2,500 $44.50 To obtain additional listing info, contact us Western Alberta Pekisko 6,880 $2,500 $17.20 at 713-650-1212 or listingmgr@plsx.com Permian (Reeves) Strawn/Frio/Yates 2,900 $5,500 $15.95 with the listing code. To become a client call 713-650-1212. Permian (Other) Strawn/Frio/Yates 32,631 $2,500 $81.58 © Copyright 2012 by PLS, Inc. Total 60,211 $159.23 Any means of unauthorized reproduction is Source: Clinton Group Press Release prohibited by federal law and imposes fines up to $100,000 for violations.Find more on the A&D arena at www.plsx.com
  • 3. Volume 23, No. 16 3 A&DA&D News QRE expects robust MLP deal pace to continue next yearUS shale gas holds appeal QR Energy CFO Cedric Burgher believes the entire upstream MLP industry is “at capacity” with the strong pace of deal activity likely to continue well into 2013.for Qatar Petroleum Burgher told Baird at a non-deal road show in Milwaukee that QRE continues to seek Qatar Petroleum is seriously non-auctioned deals with reliance upon its reputation for reliable closing and fairconsidering investing in US dealing among potential private sellers.unconventional gas, the state-owned Burgher further stressed QRE’s efforts to bring increased transparency to thefirm’s international chief said at an energy firm’s G&A structure which Baird called a recent source of investor unease. Baird conference in London. Nasser said it expects material growth for the company next year. al-Jaidah called the US shale gas boom “an opportunity for us” andsaid the company would be interested Sundance enters Eagle Ford via $105 million Texon mergerin partnering with major operators Australia-listed US unconventional player Sundance Energy agreed to acquirewith whom it already has partnerships Eagle Ford producer Texon Petroleum—also based in Australia—in an all-stock dealback home—naming ExxonMobil and valued at $104.7 million. The deal adds Eagle Ford exposure to Sundance’s existingShell specifically. portfolio covering the Williston Basin, DJ Basin, Mississippi Lime and Woodford. May seek JV with IOC that participates The acquired assets QPi $60,000 ppboe/d plus ppboe/g or Sundance pays $18 $9,900/acre. in projects back home, like Exxon or Shell. cover ~7,500 net acres (~79% WI) in Al-Jaidah said the US shale gas McMullen Co., Texas with estimated reserves of 1.7 MMboe 1P (NPV10 of ~$25boom will allow top global LNG exporter million), 5.2 MMboe 2P (NPV10 of ~$103 million) and 11.3 MMboe 3P (NPV10Qatar to redirect more supply to lucrative of $280 million) as of August 1. Five wells were producing 511 boepd at the end ofAsian markets. Investing in US gas Q3 with two more being drilled and potential for more than 100 additional wells. Allwould also secure control of additional leases are covered by 3D seismic. Texon’s non-Eagle Ford assets will beresources at a time when Australia is “The combined company will have spun off into new Cliff Foss-led firm Talon.projected to overtake Qatar as the No. 1 production, cash flow and reserve growthLNG supplier by 2017. potential with highly attractive risk-adjusted return potential,” said Sundance managing director Eric McCrady. “Importantly, the combined company will have the funding Qatar Petroleum & Exxon won DOE capacity to unlock significant value for shareholders.” approval to ship LNG from Gulf Coast. Sundance will issue Texon shareholders two common shares per Texon share. Based In early October Qatar Petroleum on the closing prices of both companies the day before the announcement (A$0.82 for(70% WI) and Exxon (30% WI) won Sundance and A$0.36 for Texon), the deal represents a ~14% premium for Texon. Uponfederal approval to export LNG to closing expected in 1Q13, Texon shareholders will own a ~31% stake in Sundance. Theycountries holding free-trade agreements will also retain Texon’s non-Eagle Ford exploration assets in South and East Texas via awith the US from a $10 billion export new entity called Talon Petroleum to be led by current Texon chief Clifford S. Foss Jr.plant to be built adjacent to the companies’Golden Pass LNG import terminal on the Post-Merger Sundance Asset PorfolioTexas Gulf Coast. If constructed, theproject could be Qatar’s first venture forselling LNG produced in another country. Selling made simple! PLS has marketed over $4.0 billion in assets since 1988. Hire PLS to execute your next negotiated sale, call 713-650-1212For general inquiries, e-mail info@plsx.com Source: Sundance November 13 Presentation via PLS docFinder www.plsx.com/finder
  • 4. Transactions 4 December 5, 2012A&D News A&D Briefs Magnum becomes US Bakken operator in $30 million deal • Alberta Bakken explorer Big Sky Samson Resources agreed to sell interests in Williston Basin wells and lease Petroleum entered the Permian with theacreage—much of which include operatorship—in Divide Co., North Dakota to acquisition of an operated 90% WI (75%Magnum Hunter for $30 million cash. Magnum already owned an average 47% NRI) in a ~2,300-acre initial lease block WI in the properties and will now targeting the Wolfberry play in Deal brings Magnum’s total Williston the southern Midland Basin. The hold varied working interests up leasehold to ~180,000 net acres. seller and purchase price were to 100%. The deal also bring not disclosed. Big Sky estimates theMagnum sub Williston Hunter its first Bakken-Three Forks operatorship on the acreage in Schleicher Co., Texas to holdNorth Dakota side of the border, though the company already operates Tableland field 57 drilling locations at 40-acre spacingon the Saskatchewan side with stakes ranging 70-100%. The Divide Co. properties with D&C costs of $2.0-2.2 million and wellproduce 192 boepd and hold PDP reserves of 310,000 boe on 20,000 net acres— EURs of 120,000 boe. An initial vertical which brings Magnum’s total Williston test well is planned for 1Q13. QPi acre plus $70,000 ppboe/d.$828/ leasehold to ~180,000 net acres. Magnum Hunter paying • Toronto-based miner Canuc Williston Hunter president Glenn Resources acquired 15% WI (12% NRI) in aDawson called the North Dakota operatorship brought by this deal a “primary goal” 14,574-acre lease in north-central Texas forof the company and said initial drilling operations in the area will commence in an undisclosed price. Extensively drilled1Q13 using the same methods as are for shallow oil, the Walker Buckler Ranch Sale seems to mark full divestiture ofbeing applied at Tableland. lease in Shackleford Co. was recently Samson’s North Dakota asset package. For Samson, the deal appears to tested with a 4,552-ft well that intersectedrepresent the complete divestiture of a 140,000-net-acre Bakken-Three Forks the Caddo and Marble Falls formationspackage the company was marketing earlier this year. Continental Resources on and came online at 250 Mcfd—half ofNovember 7 announced the acquisition of 120,000 net acres in Divide and Williams estimated capacity. A second well wasCos. from $650 million; the remaining acreage in the package is equivalent to what scheduled to spud by November 30 in aMagnum is buying. Magnum expects to close the deal around December 20. more oil-prone area. Based on 40-acre spacing, many additional wells can be drilled on the property. • Eastern American Natural Gas Trust terminated its agreement to sell RISK? royalty net profit interests in 257 West Virginia gas wells to Softvest LP after trust sponsor and well operator Energy Corporation of America exercised its right of first refusal. Based on the November 2 closing price for Nymex In a year of potential uncertainty from crude, ECA will pay ~$5.9 million for • Global economic instability and weak demand • Fiscal Cliff the interests, which generate average • Dodd Frank legislation six-month net cash flow of ~$202,000. • Libyan production coming back online Eastern American will retain its royalty • Iranian nuclear build up net profit interests in ~340 Pennsylvania • Israeli/Iranian crisis gas wells. The sale is expected to • Uncertainty surrounding taxation and energy regulation close in January. • Potential changes in crude oil transportation and distribution • First Titan Corp. announced it is investigation its first production acquisition wells since the company’s IPO in September 2011. First Titan has We Can Help. thus far concentrated its upstream efforts Now is the time to mitigate volatility and protect your company from falling market prices. on exploration prospects with partners Give us a call to discuss the best hedging strategy for your business in 2013. including Occidental, Anadarko, Energen and Apache on the Gulf Coast, Coquest Structured Products (214) 219-7555 in Oklahoma and in the Permian. It is now evaluating the purchase of a stake in a well producing 4.2 MMcfed (29% oil) near Norman Young (281) 326-6666 I John Vassallo I Justin Joyce I Laura Hunter some of the company’s other projects.Find more on the A&D arena at www.plsx.com To learn more about PLS, call 713-650-1212
  • 5. Volume 23, No. 16 5 A&DA&D Briefs Argent Trust adds oily East Texas assets for $120 million • Houston-based Halcón Resources Argent Energy Trust agreed to buy primarily oil producing fields in East Texasacquired an undisclosed amount of from Wapiti Energy for $120 million. The assets cover 14,990 net acres (97%leased acreage near Lordstown, Ohio operated) at Newton, Livingston and Double AA Wells North fields with estimated from an unidentified operator gross 2P reserves of 8.7 MMboe (77% oil) as of March 31 and September net production that, according to a company of ~1,705 boepd (69% oil, 9% NGLs) linked to LLS. Argent expects to maintain that statement, “did not have the production level into 2013 with minimal investment.desire or ability to develop the deeper The deal adds a significant liquids component to Argent’s overall asset base andformations.” Halcón said it intends to increases the company’s total production by more than 40%. The acquired assets are“spend hundreds of millions of dollars” expected to generate long-term sustainable cash flow to supplement Argent’s Austindrilling horizontal Utica wells after Chalk and Eagle Ford development program. The buyer estimates the deal to be ~21%modifying current leases. accretive to 2013 cash flow and production per unit and ~5% accretive to reserves per • Maverick Drilling & Exploration unit, with a reserve life of ~13 years.acquired 100% WI in leases covering 211acres in and flanking the Gillock oil field20 miles south of Houston in Galveston Resolute triples Permian production Continued From Pg 1Co., Texas for an undisclosed price. PLS believes the seller to be private Fort Worth-based Celero Energy II LLPThe seller was also undisclosed. Initial which operates the producing wells being bought in Denton field according to maps reserve estimates provided by Resolute. are expected next In Howard Co., Resolute is getting 1,310 non-op net acres (39% WI) producingyear following a pilot drilling program 377 boepd net in Q3 (~64% oil) from 23 wells. Upside exists from ~64 verticaltargeting the Frio sands. The Gillock Wolfberry locations and 66 recompletion opportunities. In New Mexico, the chiefacquisition is Maverick’s fourth project asset Resolute will acquire is the operated 1950s-vintagearea following the nearby Blue Ridge, Denton field, a conventional fractured carbonate reservoirNash and Boling salt domes which covering 2,767 net acres (96% WI, 100% HBP). Q3 net production from 39 wellsit is jointly developing with Gulf was 833 boepd (~89% oil). The upside here comes mainly from deepening existingSouth Holdings. wells and infill drilling from 40-acre to • Globalgroup Investment 20-acre spacing. Finally, Resolute will Howard Co., Texas bolt-on offers multi- pay horizontal Wolfcamp & Cline upside.Holdings sub Sovereign Oil Inc. agreed acquire a combination of conventionalto acquire a 120-acre lease in southeast and unconventional producing Permian properties covering 2,455 net acres (73%Kansas holding nine producing oil wells WI, 100% HBP) with Q3 net production of 208 boepd. Resolute will finance the deal and five wells scheduled for with debt and expects to close by December 21 with an effective date of August 1. secondary recovery work from “We plan to realize the growth potential from these new assets, which [are] largely Ad Astra Oil. Sovereign will self-funded, with a drilling program over the next four to five years,” said Resoluteassume ownership in the producing chief Nicholas J. Sutton. “The Permian Basin is an area we have long targeted aswells in Miami Co. upon closing an important growth engine for the company, and this most recent expansion furtherscheduled for December 15 and then strengthens our visible growth potential in this multi-pay, multi-play oil-prone region.”begin rework on the five additionalwells at an estimated cost of $10,000/well for an added annual revenue Resolutes PDP-Weighted Permian Oil Acquisitionstream of ~$250,000. • 3Q12 average production: 1,418 net Boe/d VES ES ES COCHRAN COCHRAN COCHRAN COCHRAN COCHRAN HOCKLEY HOCKLEY HOCKLEY HOCKLEY HOCKLEY HOCKLEY LUBBOCK LUBBOCK LUBBOCK LUBBOCK LUBBOCK CROSBY CROSBY CROSBY CROSBY CROSBY CROSBY DICKENS DICKENS DICKENS DICKENS DICKENS DICKENS • Bakken producer Stratex Oil & ES ES VES • Estimated proved reserves of 4.1 million Boe GladiolaGas Holdings acquired non-op interests Northwest • 73% oil, 63% proved developed & 63% operated Shelf Denton YOAKUM YOAKUM YOAKUM YOAKUM YOAKUM TERRY TERRY TERRY TERRY LYNN LYNN LYNN LYNN GARZA GARZA GARZA GARZA GARZA GARZA KENT KENT KENT KENT KENT KENTin six producing wells (ranging 0.14- Block A-0007 Eastern • 9,654 gross (6,532 net) acres across several fields Knowles Shelf5.00% WI), three wells being drilled Dupree LEA LEA LEA San Simon LEA LEA LEA Seminole GAINES DAWSON DAWSON DAWSON DAWSON DAWSON BORDEN BORDEN BORDEN BORDEN BORDEN BORDEN SCURRY SCURRY SCURRY SCURRY SCURRY SCURRYand several permitted well locations • 90% HBP Channel W & NW Jo-Mill DY DY DY DY DY DY Midland Luther SEin Stark, Williams and Sheridan Cos., • Conventional & unconventional assets with ANDREWS ANDREWS ANDREWS Basin MARTIN MARTIN MARTIN HOWARD HOWARD HOWARD Enterprise MITCHELL MITCHELL MITCHELL identified upside development projects ANDREWS ANDREWS MARTIN MARTIN MARTIN HOWARD HOWARD HOWARD MITCHELL MITCHELL MITCHELLNorth Dakota. Stratex is paying the Central Basin Howard Coundisclosed seller $250,000 cash plus • Howard–Wolfberry play (non-op) – Platform 44% of reserves LOVING LOVING LOVING STERLING STERLING STERLING LOVING LOVING LOVING ECTOR ECTOR ECTOR ECTOR ECTOR ECTOR MIDLAND MIDLAND MIDLAND MIDLAND MIDLAND GLASSCOCK STERLING GLASSCOCK STERLING GLASSCOCK STERLING GLASSCOCK GLASSCOCK GLASSCOCK C C250,000 common shares for a total WINKLER WINKLER WINKLER WINKLER WINKLER WINKLERvalue of $600,000 based on the prior- • Denton–conventional field in N N N N N N Vermejo E WARD WARD WARD WARD WARD WARD War-Wink Lea County, NM with secondary recovery CRANE CRANE CRANE CRANE CRANEday close of $1.40/share. Operators upside –36% of reserves REEVES REEVES REEVES UPTON UPTON UPTON UPTON UPTON REAGAN REAGAN REAGAN REAGAN REAGAN REAGAN IRION IRION IRION IRION IRION IRION T T T Ton the 3,850 acres (on which Stratex REEVES REEVES REEVES Delaware • Other fields –20% of reservesacquired 2.3% WI) are Whiting, XTO Basin Ozona SCHL SCHL SCH SCH SCHL SCHLand Continental. PECOS PECOS PECOS PECOS PECOS PECOS Acquired properties Arch EFF DAVIS EFF DAVIS EFF DAVIS EFF DAVIS EFF DAVIS EFF DAVIS CROCKETT CROCKETT (red outline denotes key fields) Sheffield CROCKETT CROCKETT CROCKETT Channel SU SU SU SU SU SUFor general inquiries, e-mail info@plsx.com Source: Resolute December 3 Presentation via PLS docFinder www.plsx.com/finder
  • 6. Transactions 6 December 5, 2012A&D News Whats On the Market Briefs Shoreline buys Wattenberg royalty stakes for $12.5 million • Australian-listed Incremental Oil Alberta-focused Shoreline Energy stepped across the border to acquire non-op & Gas has enlisted Envoi’s assistance inWattenberg field royalty interests in Colorado’s DJ Basin for $12.5 million from finding a partner to drill its Raven Passan undisclosed private US-based company. The interests range up to 1.45% and exploration prospect (100% WI) in Kern are located on more than 150 land tracks totaling over 22,000 acres Co., California. IOG is offering a majority interest—complete with operatorship predominantly in Weld County. The primary targets are the Niobrara if desired—in exchange for an equity and Codell formations which Expects assets to deliver $4.6 million contribution to past costs and a one-wellare already penetrated by more than 20 cash flow in first year—over 30% IRR. commitment (~$1.3 million gross) to testhorizontal wells on the royalty acreage the shallow Cretaceous and penetratewith nearly 60 additional locations permitted and scheduled for drilling during the deeper Cretaceous reservoir. Learn1H13. Shoreline estimates the assets to hold an additional 400-700 drilling locations. more from PLS Listing No. DV 1828 orBesides the horizontal potential, the deal brings royalty revenue from 300 low-rate contact the broker.producing vertical oil wells. • Mantle Resources has engaged Shoreline projects average cash flow of $375,000/month from the properties next EnergyNet to sell a package of 29year with a 2013 exit of $750,000/month—providing what CEO Trevor Folk called operated wells located in three Texas“the highest return of any project we have evaluated whether in Canada or the US.” counties and in Allen Parish, Louisiana. NetThe deal closed November 20. proved reserves are ~337,000 boe (77% oil) with estimated PV-10 of $9.56 million.Kabe Exploration enters Mississippian with 1,500-acre buy Gross oil production from six wells was 101 San Diego-based Kabe Exploration agreed to buy at least 1,500 acres in Cowley bopd for the last six months and averageCo., Kansas from an unnamed seller, marking the new company’s first step in a 12-month cash flow was $173,882/month.proposed development of up to 50 horizontal Mississippi Lime wells. The company Refugio Co. upside includes 12 proved andsaid it plans to expand its position in the 17 probable and possible behind-pipe Newly launched E&P firm plans toplay by as much as 15,000 acres. zones and one PUD location. Request expand its position by 15,000 acres. “Kabe’s field acquisitions were PLS Listing No. PP1801DV or contact theselected due to the tremendous potential of developing substantial oil and natural gas broker for more information.reserves in a regional area which rivals any of the US oil shale plays,” said Kabe chief • Texas Tech Foundation retainedErik Ulsteen. “Results of Mississippian Lime horizontally drilled wells demonstrate EnergyNet to sell its 2.5% ORRI in thethe potential for 300,000-400,000 boe per well at relatively shallow drilling depths of SandRidge-operated South Fuhrman~4,000 ft, with high oil quality of 35-38°API gravity.” Kabe’s acquired acreage is east Mascho unit located in sections 5, 8, 9of the generally accepted “sweet spot” of the play. and 15-17 of University School Lands Survey Block 10. Gross production isLime Rock drops $21 million in Oklahoma reserves to MLP 758 boepd (85% oil). For more, check Upstream MLP LRR Energy is acquiring its second drop-down from sponsor out PLS Listing No. RR 1856PP or get inLime Rock Resources, this time getting mature oil-weighted producing assets in touch with the agent.Oklahoma for $21 million. In June the companies closed a $67 million transfer of • Wildhorse Resources hiredconventional Permian properties in Texas and New Mexico—also oil-weighted. EnergyNet to divest some of its interests The Oklahoma properties have estimated net proved reserves of 1.99 MMboe in operated properties at Lisbon field in(55% oil and NGLs, 53% PDP) as of October 1, with current production of 350 boepd Claiborne Parish, Louisiana. Wildhorse from 124 wells (32 operated) for an implied reserve life of 15.6 years. is selling stakes of ~32-100% WI in Annual maintenance capex of nine wells including five producing $1.0 million is anticipated to QPi ppboe/g or $60,000sponsor $11 LRR Energy pays ppboe/d. with 12-month average net income of $82,028/month. Request PLS Listinghold production of 270 boepd flat through No. PP 1859 for details.2015. According to LRR Energy co-CEO Eric Mullins, the acquisition in Dewey andCuster Cos. have a large inventory of low-risk development opportunities. “This transaction fits our operational strategy of acquiring long life properties andis a bolt-on to one of our core areas where we have extensive operating expertise and Increase deal scale,” said co-chief Charlie Adcock. flow & business The purchase price is subject to adjustment based in part on the value at closing opportunities.(expected around January 3) of hedge contracts included in the deal, which arecurrently valued at ~$1.7 million. Tudor, Pickering Holt & Co. and Bracewell & Subscribe to PLS! For available options,Giuliani LLP advised LRR Energy on the deal, which the MLP plans to finance with e-mail memberservices@plsx.comborrowings under its existing revolving credit facility.Find more on the A&D arena at www.plsx.com To learn more about PLS, call 713-650-1212
  • 7. Volume 23, No. 16 7 A&DWhats On the Market Magnum Hunter markets Eagle Ford, seeks Utica JVChesapeake markets gas Topping Magnum Hunter Resources’ list of options to “harvest a lot of the potential” of its asset base is selling the company’s Eagle Ford acreage, companyproperty in North Texas management said in a Q3 conference call. Magnum has hired an undisclosed Chesapeake has hired Meagher investment bank to shop its 26,000-acre Eagle Ford position concentrated in GonzalesEnergy Advisors to help divest yet and Lavaca Cos., Texas. The company has already shown the assets to more than 15another Texas property, this one in companies including other leaseholders in the counties. However, chairman Grayson Co. on the and CEO Gary Evans told Oil & Gas Financial Journal that Magnum is under Oklahoma border. The no duress to sell its Eagle Ford ~3,235-net-acre property At $25,000 per Eagle Ford acre, acreage. “It’s just that we see our upside(100% HBP, 84% NRI) had net Magnum’s 26,000 acres would net $650MM. [in the Eagle Ford] as being defined,”production of ~1,070 Mcfed (23% oil) Evans explained. “We’ve done about as well as we can do in this play … [It] is a well-during the 12 months ending July 31 oiled machine, and it might be better suited for someone with a lower cost of capital.”from 14 wells (12 operated, 81% WI, When asked during the conference call about value of the Eagle Ford acreage,68% NRI). Net operating cash flow Evans confirmed “that we’re in that range” of $20,000-$30,000/acre. At the midpointduring that period was $165,121/month. this would raise $650 million—allowing According to the Meagher offering Magnum excited by drilling results of Magnum to pare debt, fund capex andmemorandum, producing zones are the Utica neighbors Anadarko & Gulfport. possibly redeem some preferred shares.Oil Creek, Dornick Hills, Viola and Davis. Although Magnum Hunter allocated 40% of its 2012 drilling budget to the EagleUpside potential exists through infill drilling Ford with solid production and reserves results, the company’s two other core plays Produces 1.07 MMcfed with upside from have a lower cost of capital and larger reserve bases. At 26,000 acres, the Eagle Ford infill drilling, waterflood & recompletions. is Magnum’s smallest holding and accounts for only 15% of reserves. The company’s ~467,000 net acres in the Appalachian Basin account for 45% of reserves while itsopportunities, recompletions in existing ~138,000 net Williston acres hold the remaining 40% of reserves.wells, waterflood potential over multiple Meanwhile, Magnum is also discussing a JV to cash in on its Utica potential withzones, and exploration into deeper horizons several companies including foreign partners. The company said a deal could beof the Woodford shale and Viola lime. announced in January or February. Its Utica holdings are in Washington, Noble, and Offers are due December 14 with an Monroe Cos., Ohio and in Tyler Co., West Virginia.effective date of December 1 and closingby February 15. For more details, askfor PLS Listing No. PP 1864DV or Hurricane-impaired GOM royalty interests on the blockcontact the agent. As managing general partner of Tel Offshore Trust, Chevron has retained EnergyNet to market and auction the partnership’s ORRI in shallow-water Gulf of Mexico properties. The ORRI is equivalent to 80% of a 25% net profit interest inWestern offers royalty the Ship Shoal 182 and 183, South Timbalier 36 and 37, and Eugene Island 339 andstakes in 100% stock sale 342 blocks. Although the entire royalty is up for sale, the trust partnership Dallas-based Western Petroleum reserves the right to retain aResources engaged EnergyNet to sell all ORRI equals 80% of a 25% net profit portion of its ORRI.of the company’s assets in a 100% stock interest in six shallow-water blocks. Damage inflicted by Hurricane Ike indivestment. Over 30 years the company 2008 shut down production at Tel Offshore’s two most significant royalty properties.has built a diversified portfolio of non-op Ike destroyed Eugene Island 339 platforms and wells—and Chevron is still pluggingORRI and royalty interests in 118 wells in and abandoning wells and cleaning debris with completion expected by year’s end.Texas, Oklahoma, Louisiana, Kansas and Chevron has inked a participation agreement with an unnamed company to fundMississippi with an average ~29 MMcfed redevelopment of the EI-339 platformsgross production (36% oil). That total Ike destroyed Eugene Island 339; Chevron partner will earn up to 65% WI to redevelop. and wells for up to 65% of Chevron’sdoesn’t include five new wells producing working interest.288 boepd (75% oil). Another key Tel Offshore property, Ship Shoal 182 and 183, was also impacted Western has three wells in completion by Ike mainly through the 10-month shutdown of a third-party gas pipeline.stages and funding in place to drill four Production was also shut in for several weeks in 2010 due to a leak in an oil pipelinewells through January. Average net cash and tank replacement.flow and net revenue over the first nine Tel already sold 20% of its ORRI to RNR Production, Land & Cattle in Octobermonths of 2012 were $33,985/month and 2011 for net proceeds of ~$1.49 million. The trust instructed Chevron to sell more of$52,391/month. For further information the ORRI after RNR declined to exercise its option to purchase an additional 5.0%request PLS Listing No. RR 1861PP or royalty interest. The auction is set for December 12.contact the broker.For general inquiries, e-mail info@plsx.com Access PLS’ A&D Transactions archive for previous A&D news
  • 8. Transactions 8 December 5, 2012BHP builds up Permian & Eagle Ford presence BHP Billiton has been picking up small Permian bolt-on assets and is negotiating EAST TEXASlarger packages up to 25,000 acres in the heart of its operations, says the head of the CHEROKEE CO., TX PROPERTYAustralian mining giant’s oil and gas division. Since its August 2011 acquisition of US 2,700-HBP Acres.unconventional player Petrohawk the company has increased its Permian position 16% COON CREEK FIELD from 378,000 to 440,000 acres Cretaceous, Rodessa Hill, Pettit-- PP Has added small packages since buying -- & Travis Peak Sands according to a September Petrohawk, now looking at bigger prizes. Test Depth: 9,000 Ft. investor presentation. BHP is Total Production: 8.299 BCFG & 152 MBCalso looking to grow its Eagle Ford position when acreage becomes available—with Total Reserves: 13.0 BCFG & 203 MBC CRETACEOUSparticular interest in adding leasehold around its Black Hawk and Hawkville fields. Dry Hole Cost: $500,000 CONTACT SELLER FOR MORE INFO Petroleum chief executive Mike Yeager told Upstream that the company thus far has PP 1177DVbeen mostly adding assets of 1,000-5,000 acres in the Permian. In the Eagle Ford it hasbeen making small deals to consolidate its position and buying out minor stakeholders. SAN AUGUSTINE CO., TX PROPERTY The Upstream article suggested one of the larger Permian deals BHP might be looking 1-Active Well. 624-Net Acres. HBP at is a 22,000-acre Midland Basin package REBECCA JAMES LIME FIELD J Cleo’s Reeves Co., Texas package in being marketed by J Cleo Thompson. The OIL & LIQUIDS RICH PLAY PP heart of Wolfcamp is a likely BHP target. New James Lime. 13,375 Ft. (TD) property in Wolfcamp-prospective Reeves Wells Currently Being Drilled on AdjacentCo. produces 5,000 boepd and is valued by PLS at over $500 million. J Cleo is the -- Lands Targeting James Lime Liquids.county’s most active driller at 10 rigs as of November 30 according to Smith Bits with BHP ~97% OPERATED WI; 74.5% NRI 120and Petrohawk collectively coming in second at five rigs. Bids were due in mid-October. Gross Prod: 7.0 BOPD & 120 MCFD MCFD Total AFE Cost: ~$7,000,000BHP not going after Yates, & other bidders rejected— CONTACT GENERATOR FOR DETAILS One Permian prize Yeager said BHP is not seeking is privately held Yates Petroleum PP 1927which has retained JP Morgan Chase to find a buyer for the company. Yates’ Permianoperations are focused in New Mexico where the company is a top-10 producer for both NORTH LOUISIANAoil and gas. However, Yeager said BHP is ill-equipped to hold Yates’ sizeable acreage CLAIBORNE PH, LA PROPERTYposition. “If we bought Yates we would have to put 10 rigs on it because it would have 5-Active Wells. 4-NonProducing.rig obligations and we don’t have the people to do it,” Yeager said. LISBON FIELD PP ~32%-100% OPERATED WI FOR SALE Yates has already rejected offers from Occidental and Concho Resources, the Avg Production: 44 BOPD & 580 MCFD 580Albuquerque Journal reported. The Yates family’s demand that the buyer maintain a Avg Net Income: $82,028/Month MCFDlarge presence in Artesia, N.M. where it is headquartered and their structure of the deal CONTACT AGENT FOR UPDATEas a stock sale may have suppressed the offer prices. PP 1859 ALABAMA petrocap.com | feplp.com TUSCALOOSA CO., AL PROPERTY Capital that Preserves 500-Wells (CBM). ~43,000-Net Acres. BLACK WARRIOR BASIN Your Independence ROBINSON’S BEND FIELD PP 100% OPERATED WI; 75% NRI We invest as your working interest Daily Production: 16,000 MCFD Average Cash Flow: $1,000,000/Month partner, not your boss. Total Proved Reserves: 280.4 BCF 16,000 Total Proved Rsrvs (PV8): $85,600,000 MCFD We are looking for acquisition and AGENT IS ASSEMBLING PACKAGE DATA development opportunities with current PP 8999L production AND drilling upside. If your project needs up to $40 million in capital call us at 214-871-7967. No Commission Get Listed! Dick Rinehart | Doug Evans | John Sears David Hopson | Alec Neville | Lane Britain For the past 20 year, PLS has been the central access point for buyers & sellers. List with PLS today! It works! For more information on listing, e-mail Falcon E&P Opportunities Fund, L.P. listingmgr@plsx.com To learn more about PLS, call 713-650-1212
  • 9. Volume 23, No. 16 9 A&D MISSISSIPPI SOUTH LOUISIANA SOUTH TEXASGULF COAST PRODUCTION SALE SOUTH LOUISIANA PRODUCTION MCMULLEN CO., TX PROPERTY4-Wells. 4-PUD’s. 1-SWD. 160-Acres. 30-Active Wells. ~10,532-Gross Acres. 4-Wells. 7,581-Net Acres. 80-Acre PUD.WILKINSON COUNTY, MISSISSIPPI ACADIA, ALLEN, BEAUREGARD, SOUTH TEXASBELMONT LAKE OIL FIELD PP CALCASIEU, CAMERON, EVANGELINE, PP HORIZONTAL EAGLE FORD WELLS PPFrio Sand. 2,800 Ft. ST LANDRY & JEFFERSON DAVIS PH. ~98% OPERATED WI FOR SALECONVENTIONAL SHALLOW OIL Wilcox, Frio, Cockfield, Miocene, Sparta. Net Sales: 340 BOPD & 800 MCFD3-D Seismic Data & Well Logs Available Significant Upside in Unidentified Prospects (Including 76 Bbbls NGLs)58-66% OPERATED WI; 44-50% NRI 3D Seismic Data Covering 1,251 Sq. Miles 93% Revenue from Oil and NGLOpportunity to Purchase 100% WI 133 100% OPERATED WI; 75% NRI Net Prov 25 MMBO 6 MMBO NGL 57 BCFAvg Net Prod: 133 BOPD; 265 BOPD Gross BOPD Prod:1,630 BOED (Gross); 235 BOED (Net) Total PV12 (Proved): $456,000,000 EAGLENet Operating Cash Flow: $325,000/Mth Net Operating Cash Flow: $311,722/Month 1,630 Net PDP Reserves: 623 MBO & 1.6 BCF FORDNet Proved Reserves: 238 MBO Net Proved Rsrvs: 372 MBO & 1,067 MMCF BOED (Including 151 MBO NGLs)Net Proved Reserves PV10: $14,500,000 Total Net Proved Rsrvs PV10: $23,900,000 Total PV12 (PDP): $28,000,0003rd Party Reserve Report Available Probable Reserves: 354 MBOE CONTACT AGENT FOR MORE INFOAFE Drill & Completion Cost: $568,000 Possible Reserves: 128 MBOE PP 8784DVCONTACT AGENT CA Required to View Data RoomPP 1973DV CONTACT AGENT FOR UPDATE MEDINA CO., TX PROPERTY PP 1952DV 6-Wells. 265-Net Acres. SOUTH LOUISIANA SOUTH TEXAS GULF COAST. FAIR FIELD TUSCALOOSA SHALE ROYALTY Olmos. 1,100 Ft. PPEAST FELICIANA PH., LA ROYALTY 100-Gross Acres. 50-Net Acres. UPDIP PROVEN PRODUCTION1,100-Gross Acres. 550-Net Acres. RR MISSISSIPPI & LOUISIANA 80% OPERATED WI; 80% NRITUSCALOOSA MARINE SHALE Amite & Wilkinson Co., MS RR Gross Production: 4.5 BOPD 4.5Louisiana Light-Sweet Premium Oil ROYALTY St. Helena, East & West Feliciana Ph., LA Net Production: 4.1 BOPD BOPDCONTACT SELLER FOR MORE INFO Low-Cost Entry Into Emerging Shale Play Cash Flow: $11,070/MonthRR 1014 Operators: Encana, Devon & Goodrich ROYALTY Net Reserves PV7: $13,100,000 CONTACT GENERATOR FOR DETAILS CONTACT SELLER FOR MORE INFOLAFAYETTE PH., LA NONOPERATED RR 9539 PP 10173-Active & 1-SWD. 800-Gross Acres.BROUSSARD FIELD SOUTH TEXAS REFUGIO CO., TX PROPERTYNEAR LAFAYETTE PP 3-PUDs. +/-5,899-Gross AcresLeases Cover +/-150-Acres (Unitized). BROOKS CO., TX PROPERTY GULF COAST - LA ROSA FIELDBol Perca Sand: Clean, Normal Pressure 46-Active. 34-PUD. 7,481-Gross Acres. Multiple Behind Pipe Zones PP-- w/Excellent Porosity & Permeability. DIABLO FIELD SIGNIFICANT DRILLING POTENTIALWell & Facilities Accessible By Road. MATURE CONVENTIONAL ASSETS PP Proprietary 3-D Seismic Available.~10.5% NonOperated WI; 7.9% NRI Upper & Lower Vicksburg Play 50-100% OPERATED WI, 37.5%-75% NRIGross Prod: 295 BOPD & 324 MCFD 349 3D Seismic Covers Entire Area. Gross Production: 279 MCFD & 50 BOPDNet Production: ~23 BOPD & 26 MCFD BOED OPERATED WI AVAILABLE Net Production: 214 MCFD & 50 BOPD 279Net Cash Flow: $61,000/Mn Gross Prod: 167 BOPD & 3.8 MMCFD DIABLO/ Net Cash Flow: $180,000/Month MCFDNet Prov Rsrvs: 33 MBO & 34 MMCF Cumm’d Production:2.6 MMBO & 64 BCF 3D Estimated (PDP) PV10: $2,577,000CALL SELLER FOR ADDITIONAL INFO Total Gross EUR/CG&A: 330 BCFE Estimated (PDNP) PV10: $2,214,000PP 2897DV 10-Probable & 8-Possible. Estimated (PUD) PV10: $4,769,000 3rd Party Reserve Report. Total Proved PV10 Reserves: $9,560,000LOUISIANA PROPERTIES AGENT PREPARING DETAILED PKG CONTACT AGENT FOR UPDATE61-Active Wells. 110,000-Net Acres. PP 2219DV PP 1869DVAUSTIN CHALKFIELDS INCL: MASTERS CREEK PP LIVE OAK CO., TX PROJECT SOUTH TEXAS NONOPERATED-- MONCRIEF & N BAYOU JACK FIELD 299-Net / 1,793-Gross Mineral Acres. 9-Active. 2,400+/- Acres, HBP.~30,000-Net Acres HBP. 4-Active Rigs. EAGLE FORD - GAS CONDENSATE EAGLE FORD SHALE~80,000-Net Undeveloped Acres. SUGAR KANE FIELD PP DIMMIT & LA SALLE COUNTIES PP> 500-Drilling Locations Identified. ~335 Austin Chalk, Edwards, Buda Potential. 9-Wells Scheduled in 2013.OPERATED & NonOperated WI BOED Sweet Spot Of Eagle Ford Trend. Super Pad Drilling, Zipper Frac’s. EAGLENet Production: ~335 BOED Initial Well Being Completed. 49% NonOperated WI; ~37% NRI FORDIPs As High As 4,000 BOED Surrounded By Eagle Ford Production. Seller’s Cash Flow: $2,500,000/MnEURs Range: 320-600 MBOE/Well MINERALS INTEREST FOR SALE EAGLE PP 2121DVConfidentiality Agreement Required. ORRI, OR Convertible To WIAPO FORDCONTACT AGENT FOR UPDATE ---Well By WellPP 1483DV 1st Well IP: 1,600 BOPD Energy Hedging Solutions Your Full Service Energy Broker Rsrvs: 27BCF+12MMBO(3.3MMB NGL) www.plsx.com Operator: Petrohawk Office: (214) 219-7555 CONTACT SELLER FOR DETAILS Fax: (214) 326-6666 Austin Chalk PP 5012L www.coqueststructuredproducts.com/csp/home.htmlFor listing inquiries, e-mail listingmgr@plsx.com Access PLS’ Engagements for featured deals for sale
  • 10. Transactions 10 December 5, 2012 SOUTH TEXAS SOUTHEAST TEXAS PERMIAN / NEW MEXICOSOUTH TEXAS PROPERTIES JEFFERSON CO., TX PROPERTY SE NEW MEXICO PROPERTIES7-Active Wells. 6-Shut In. 1-SWD. 16-Active Wells. 618-Acres. 106-PDP Wells. 66-PDNP. 87-PUD’s.ATASCOSA & FRIO CO. SPINDLETOP FIELD LEA CO., NM WATERFLOOD UNITSEAST CROWN FIELD (3,522-Acres) PP Deeper Nodasaria Gas Play. PP 6,300-Gross Acres. 4,600-Net Acres. PPOlmos Formation Production. 4,200 Ft. 30-Additional Drilling Locations. Yates, Seven Rivers & Queen.40% NonOperated WI; 30% NRI Numerous Behind Pipe Zones. Depth Range: 2,900-3,800 Ft.Gross Production: 50-60 BOPD 45 100% OPERATED WI; 73% NRI LONG-LIFE PREDICTABLE RESERVESNet Production: 15-18 BOPD BOPD Gross Production: ~155 BOPD ~74% OPERATED WI; ~57% NRINet Cash Flow: $15,000-30,000 /Month Net Cash Flow: ~$300,000/Mn ~110 Net Sales: 380 BOPD, 160 MCFD 380CONTACT SELLER FOR MORE INFO Est Net Proved Reserves: 4.1 MMBO BOPD --& 35 Bbls NGL Per Day BOPDPP 1872DV P+P+P Reserves: 4.77 MMBO & 6.5 BCF Projected PDP Cash Flow: $741,666/Mn Net Proved Rsrvs (PV10): $156,000,000 Net Prov Reserves: 8.0 MMBO & 3.2 BCFSOUTH TEXAS PROPERTY CALL SELLER FOR ADDITIONAL INFO Total Proved Net Reserves: 9.0 MMBOE17-Active Wells. PP 1527DV Total Net Proved (PV10): $162,429,000HELEN GOHIKE FIELD CONTACT AGENT FOR UPDATEDE WITT & VICTORIA COUNTIES PP SOUTHEAST TEXAS NONOP SALE PP 1901WF~85-100% OPERATED WI FOR SALE 111-Active. 53-PUD. >200,000-Acres.Avg Gross Prod: 198 BOPD & 182 MCFD 228 JASPER, TYLER & POLK COUNTIES PERMIAN / WEST TEXASAvg Cash Flow: $407,939/Mn BOED BROOKELAND SW FIELD PPCONTACT AGENT FOR UPDATE UPSIDE DRILLING FOR AUSTIN CHALK PERMIAN BASIN PROPERTIESPP 1739DV Woodbine Rights Under Acreage. 65-Active. 4,564-Net Acres.100% HBP 18-37% NonOperated WI; 14-28% NRI NORTHERN CROCKETT COUNTYWEBB CO., TX PROPERTY Avg Cash Flow: $3,238,000/Mn AUSTIN PROLIFIC WORLD FIELD PP25-Active. 13-PUD. 6,058-Net Acres. Est Total Reserves: 13,396 MBOE CHALK Grayburg Formation. 2,700 to 4,500 Ft.VAQUILLAS RANCH FIELD Reserves PDP (PV10): $104,678,000 SIGNIFICANT UPSIDE POTENTIALLobo Stacked Sands. ~9,100 Ft. PP (Brookeland) EUR/Well: 6.0 to 11.7 BCFE LOW RISK DRILL OPPORTUNITIESLONG WELL LIFE CONTACT AGENT FOR MORE INFO ~100% OPERATED WI; 80% NRI 302Gathering System Included. PP 9548DV Net Operating Cash Flow: $480,000/Month BOPD59-Sq Mi Proprietary 3D Seismic Data. Total Net Proved Reserves: 2.7 MMBOLow-risk Upside. Liquids-Rich. SOUTHEAST TEXAS PROPERTY Additional Probable Reserves: 748 MBO100% OPERATED WI; 75% NRI 12-Active. 20-PUD&Prosp. 8,000-Acres. Total Net Reserves PV10: $48,300,000Net (July) Prod: 32 BOPD & 7.0 MMCFD RACCOON BEND FIELD Additional Net PV10: $8,300,000Plus 485 NGL BPD. 31% Liquids. 10 AUSTIN & WALLER COUNTIES PP CONTACT DALLAS AGENTProjected Cash Flow: $1,400,000/Mn MMCFED Upper Wilcox Formation. PP 1987DVNet Proved Reserves: 39 BCFE Rights 5,000 Ft & Below.Net Proved Rsrvs (PV10): $69,000,000 3D Seismic Covers All FarmOut Area. PERMIAN BASIN PROPERTIESCONTACT AGENT FOR UPDATE OPERATIONAL CONTROL 750 14-Active. 19,172-Gross Acres.PP 9118DV Gross Production: 750 BOPD BOPD UPTON COUNTY, TX. WOLFBERRY TREND Avg (RB Wilcox) Prod: 400 BOPD IP ATTRACTIVE HORIZONTAL WOLFCAMP PPWILLACY CO., TX OVERRIDE Cash Flow: $2,000,000/Mn High-BTU Devonian Development5 Active Wells; 1 SI Well; 4 PUDs Avg (RB Wilcox) Rsrvs: 300 MBO/Well Upside Potential Clearfork/Spraberry~1,000 Acres HBP AGENT PREPARING PACKAGE 3-D Seismic Available Over Entire AcreageRecompletion & Workover Potential. RR PP 1642DV 100% OPERATED WI; 75-79% NRIRoughly 1% ORRIs Net Production: 500 BOED 500Gross Production: ~1.7 MMCFED MULTISTATE GULF COAST Forecast Net Peak Prod: >13.4 MBOED BOEDNet Production: ~16 MCFED RECOMPLETION Net Operating Income: $600,000/Month6 Month Avg. Cashflow: ~$3,000 GULF COAST PRODUCTION PACKAGE Total Net Rsrvs: 67 MMBOE (84% Liquids)CONTACT SELLER FOR DETAILS 52-Wells. 5,634-Net Acrs. >12,000-Gross. Net PDP Reserves: 2.1 MMBOERR 4711 ONSHORE TEXAS & LOUSIANA Total Reserves PV10: $593,000,000 6 OPERATED & 10 NONOP FIELDS PP CONTACT AGENT FOR UPDATE PP 1975DV SOUTHEAST TEXAS Frio, Yegua, Wilcox, Vicksburg & Hackberry >1,200 Sq. Mi of Proprietary & --GULF COAST NONOP -- 3,200 Sq. Mi. of Licensed 3-D Seismic704-Gross Acres (HBP). 18-28% NonOperated WI; 14-21% NRI No Commission WHARTON CO., TEXASWILCOX PRODUCTION PP 25-100% OPERATED WI; 18-80% NRI Net Production:83 BOPD & ~2.46 MMCFD 2,459 Get Listed!85-100% OPERATED WI; 75% NRI Avg Total Cash Flow: $332,660/Mn MCFDGross Prod: 87 BOPD & 3.9 MMCFD 3.7 Estimated Proved Reserves: 126.4 BCFE For the past 20 year, PLS has been theNet Cash Flow: $453,000/Month MMCFD Est Total Rsrvs: 6.6 MMBO & 190.1 BCF central access point for buyers & sellers.CONTACT AGENT FOR UPDATE Total Proved (PV10): $201,600,000 CONTACT AGENT FOR UPDATE For more information on listing, e-mailPP 1903 PP 9551DV listingmgr@plsx.comFind more listings at www.plsx.com/listings No commission! List today, call 713-650-1212
  • 11. Volume 23, No. 16 11 A&D PERMIAN / WEST TEXAS PERMIAN / WEST TEXAS PERMIAN / WEST TEXASSUTTON CO., TX DEVELOPMENT HOWARD CO., TX NONOP WEST TEXAS PROPERTIES5,500-Acres. 32-Existing Wells. 3-Active Wells. 160-Gross Acres HBP. 17-Wells. 12-RRC Leases. 1,240-Acres.MULTIPAY OPPORTUNITY SPRING FIELD ECTOR & WINKLER CO.Wolfcamp, U. Canyon Sand, PP 75% NonOperated WI; 56-61% NRI PP YATES, GRAYBURG, SAN ANDRES, PPM. Canyon Shale/Sand, L. Canyon Sand, Avg 6-Mn Prod: 22 BOPD & 107 MCFD -- CLEARFORK & WICHITA-ALBANYStrawn Lime, Strawn Detritals, Ellenberger. Avg 6-Mn Net Income: $29,677/Month 107 Potential Upside Drilling & RecompletionSignificant Behind Pipe Potential. Operator: Legacy Reserves Operating MCFD 60-100% OPERATED WI; 48-80% NRI100-Drilling Locations, 40-Acre Spacing. CONTACT AGENT FOR UPDATE Gross Production: 65 BOPD & 600 MCFD 600100% OPERATED WI; 75% NRI PP 1910 Avg Net Cash Flow: $123,288/Month MCFDFOR SALE OR FARMOUT MULTIPAY CONTACT AGENT FOR UPDATENet Production: ~400 MCFD MARTIN CO., TX SALE PACKAGE PP 1958DVEst Reserves: 1.0-5.0+ BCF/Well 14-Active. 56-PUD. ~3,076-Gross Acres.Field Has Cumm’d ~40 BCF To Date. WOLFBERRY WEST TEXAS PROPERTIESCALL SELLER FOR MORE INFOPP 8363DV Spraberry, Wolfcamp & Strawn. PP 18-Wells. 7-PUDs. 2-SWD. 4,480-Acres. Deep Rights: Surface to Base of Deepest LYNN, DAWSON & BORDEN CO. -- Formation or 100 Ft Below TD. PERMIAN BASIN PRODUCTION PPANDREWS CO., TX PROPERTY 13-PUD Held By Production-All Acreage. Fusselman & Spraberry Producers.5-Active Wells. 80-Acres. 1-Well Recently Frac Stimulated. 360 960-Acres for Waterflood DevelopmentPERMIAN BASIN 100% OPERATED WI; 75% NRI (Lease) BOED ~100% OPERATED WI; 75-81.25% NRI 1,492Drill 3-InFill Wells (10-Acre Spacing). PP Gross Prod: ~347 BOPD & 559 MCFD Gross Production: 1,492 BOPD BOPDSeveral Recompletions of Existing Wells - Avg Net Income: $424,000/Mn Net Income: $2,350,000/Month-- From San Andres Thru Wichita-Albany. CONTACT MIDLAND AGENT CONTACT AGENT FOR UPDATE100% OPERATED WI; 75% NRI PP 8129DV PP 1938DVGross Prod: ~95 BOPD & 482 MCFD 131Net Production: ~71 BOPD & 362 MCFD BOED PERMIAN PROPERTIES COCHRAN CO., TX PROPERTYNet Income: $188,014/Mn 51-PUDs. ~608-Gross Acres HBP. 22-Active. 14-SI/TA. 3-Inj. 1,990-Acres.CALL MIDLAND AGENT FOR UPDATE ANDREWS & ECTOR CO. LEVELLAND (SAN ANDRES) FIELDPP 9295DV SAN ANDRES & CLEARFORK PP Infill Drilling & Waterflood Potential. PP Infill and Horizontal Drilling Opportunites 100% OPERATED WI; 75% NRIANDREWS CO., TX PROPERTY Potential Waterflood Development Gross Production: 75 BOPD 7526-Active. 26-WIW. 2,243-Acres. 100% OPERATED WI; 75-80% NRI Net Income: $124,533/Mn BOPDPERMIAN BASIN Current Prod: 238 BOPD & 537 MCFD 238 CONTACT MIDLAND AGENT FOR INFOMCFARLAND FIELD PP Avg Net Cash Flow: $563,000/Month BOPD PP 1743DVQueen Sand Formation PDP Reserves: $21,917,000Remedial Stimulation Opportunities PDNP Reserves: $2,271,000 KENT CO., TX NONOPERATEDDrill On 10-Ac Spa. Flood On 20-Ac Spa. PUD Reserves: $80,083,000 21-Active. 1,416+/- Gross Acres.Well Logs & Seismic Data Available 25 Total Proved PV10: $104,271,000 DOUBLE MOUNTAIN FIELD100% OPERATED WI; 75% NRI (Lease) Gross Production: ~33 BOPD BOPD CONTACT AGENT FOR UPDATE PP 1934DV Canyon Sand Formation. PP 1-WIW & 1-SWD Well.Avg Production: 450 BWPD Significant Canyon Sand UpSide.Net Income: $31,167/Mn WEST TEXAS PRODUCTION ~15% NonOperated WI; ~11,625 NRICONTACT AGENT FOR UPDATE 5-Active Wells. 860-Acres Leasehold. Gross Production: ~546 BOPDPP 9665DV MIDLAND & HOWARD CO. Net Production: ~63 BOPD NONOP ‘’WOLFBERRY’’ PLUS STRAWN, PP Avg Net Income: $121,788/MnGLASSCOCK CO., TX PROPERTY -- ATOKA & MISSISSIPPIAN CALL MIDLAND AGENT FOR UPDATE5-Active (Wolfberry). 4,662-Net Acres. Potential Upside in 7 Additional Wells. PP 2139DVPERMIAN BASIN 100% OPERATED WI; 75% NRI 140Horizontal Cline & Wolfcamp Acreage. PP Gross Prod: 140 BOPD & 869 MCFD BOPD LYNN CO., TX PROPERTYCline, Lower Wolfcamp, Strawn, Atoka. Avg Net Cash Flow: $101,840/Month 2-Active. 2-PUD. 1-SWD. ~169-Acres.Secondary Obj Penn Sands, Miss Shales CONTACT AGENT FOR UPDATE PERMIAN BASIN-- Carbonates & Silurian Fusselman.Offset Vertical Wolfcamp Development. PP 1956DV Spraberry Formation. PP Acreages Held By Production.~82% OPERATED WI; 75% NRI WEST TEXAS OVERRIDE Opportunity To Reduce Opex.Net (Wolfberry) Production: 158 BOED Multiple Active Wells. 100% OPERATED WI; ~76% NRIEstablished Production Base. 158 PERMIAN BASIN - ANDREWS CO. Gross Production: 35 BOPD 35Net (Wolfberry) Cash Flow: $179,110/Mn Net Reserve Potential: 9.8 MMBOE BOED SOUTH FUHRMAN MASCHO UNIT RR Net Cash Flow: $48,000/Mn+/- BOPD 2.5% ORRI FOR SALE Net Proved Rsrvs (PV10): $9,600,000Est Reserves Net PV10: $82,200,000 Gross Prod: 646 BOPD & 672 MCFD 758 --Convert Jet Pump To Rod Pump35-Horizontal Cline Locations. Avg Net Cash Flow: $49,881/Month BOED CONTACT AGENT FOR MORE INFOFavorable Marketing Agreements In Place. AGENT WANTS OFFERS DEC 13, 2012 PP 4681DVCONTACT AGENT FOR UPDATE RR 1856PPPP 9790DVFor listing inquiries, e-mail listingmgr@plsx.com Access PLS’ Engagements for featured deals for sale
  • 12. Transactions 12 December 5, 2012 KANSAS NORTH TEXAS OKLAHOMAALLEN CO., KS PROPERTY TEXAS PANHANDLE PROPERTIES OKLAHOMA SALE PACKAGE34-Producers. 2-Leases. 800-Acres HBP. 3-Packages. Open Acreage & Production. 150-Wells. 62-Operated. 15,667-Net Acres.SOUTHEAST KANSAS HUTCHINSON, GRAY & ROBERTS CUSTER, DEWEY & ROGER MILLS>10-Identified InFill Locations. PP & HOCKLEY COUNTIES PP PUTNAM FIELD - WESTERN ANADARKO PP>6-Behind Pipe Zones Possible. Formations Incl: Cleveland, Morrow, Huton Tonkawa/Douglas Interval. 7,800 Ft.100% OPERATED WI; 80% NRI Deep Rights Open Acreage. Cleveland Formation. 9,000 Ft.Seller Will Consider Retaining Operations. 3D Seismic Data Covering 163 Sq Mi. 28% NonOperated WI; 22% NRI (PDP Avg)Current Net Production: 33 BOPD 30 OPERATED WI AVAILABLE 192 Net Production: 1,200 BOED (57% Liquid)Net Cash Flow: ~$66,000/Mn BOPD (Area1) Gross Production: 192 BOED BOED Average Net Cash Flow: $1,933,333/Month ~1,200CONTACT BROKER FOR MORE INFO (Area1) Net Cash Flow: $133,000/Mn Total Proved Net Reserves: 7.3 MMBOE BOEDPP 1542DV CONTACT AGENT FOR DETAILS Prov+Prob Net Reserves: 10.2 MMBOE PP 8700PKG Total Proved Rsrvs (PV10): $108,000,000PHILLIPS CO., KS PROPERTY CA Required for Data Room Presentation8-Oil Wells. 1-SWD. 1-ShutIn. OKLAHOMA CONTACT AGENT PP 1019LRAY FIELDReagan Sand Production. 3,600 Ft. PP KAY CO., OK PROPERTY24-Old Well Re-Entries. 3-Active Wells. 3-SWD. ~13,000-Net Acres. OKLAHOMA WATERFLOOD PROJECT100% OPERATED WI; 75%-84.5% NRI HORIZONTAL MISSISSIPPIAN 8-Active Wells. 10-ShutIn. 5-Injection.Gross Production: 38-43 BOPD Depth Ranges: 3,560-4,055 Ft. PP OKMULGEE CO.---PLUS 8,500 BWPD PACKAGE Prime Lease Position In County. BALD HILL PPNet Cash Flow: $40,000-$50,000/Mn Varying OPERATED WI; 78-81% NRI Obj 1: Booch. 1,300 Ft.SWD Well Is 20,000 BPD. Gross Production: 100 BOPD & 334 MCFD >100 Obj 2: Redfork. 860 Ft. (50-Ft Thick)Property Includes 10-Inch Pipeline. Gross Cash Flow: ~$300,000/Mn BOED 100% OPERATED WI; 80% NRICONTACT SELLER FOR DETAILS Additional Infrastructure In Place-- Gross Production: 10 BOPDPP 8013SWD --For Property Development. Net Cash Flow: $20,000/Mn 10 CALL SELLER FOR MORE INFO Horizontal Well Potential: 500 BOPD BOPD NORTH TEXAS PP 1149DV Est Booch Rsrvs: 200 MBO Recoverable Est Red Ford Rsrvs: 1.0 MMBO (In Place)GRAYSON CO., TX PROJECT LEFLORE CO., OK PROPERTY CALL SELLER FOR MORE INFO14-Total Wells. 3,235-Net Acres (HBP). 6-Operated Wells. ~3,500-Gross Acres. PP 3048WFMULTIPLE UPSIDE OPPORTUNITIES OFFSET TO - POTATO HILLSSurrounds Big Mineral Creek Field PP PROLIFIC ARKOMA BASIN PP PAYNE CO., OK PROPERTYOil Creek, Dornick Hills, Viola & Davis. 19-Offset Drilling Opportunities Identified. 1-Active Well. 320-Net Acres.Depths Range: 3,500 Ft. to 12,500 Ft. All Rights - Including Deep Arbuckle. ANADARKO BASINExploration Opportunities into Deeper -- Gathering System/Compression/Pipeline. FOR IMMEDIATE SALE PP-- Horizons of the Woodford Shale & Viola Operated Gas Wells, Leases, Prospects. Relinquishing Operations.Avg ~81% OPERATED WI; ~68% NRI 100% OPERATED WI; 75% NRI OPERATED WI AVAILABLEGross Prod: 1,064 MCFD & 52 BOPD 821 Current Production Minimal. 293 Net Production: 16 BOPD 16Avg Net Sales: 821 MCFD & 41 BOPD MCFD Estimated Gas In Place: 293 BCF BCF Avg Net Revenue: $21,705/Mn BOPDOperating Net Cash Flow: $165,121/Mn Net Proved Rsrvs (PV10): $43,500,000 Exec Summary, Vouchers, OnLine Data.Additional Upside: $1,500,000 Quickly Establishes More Vols. CONTACT AGENT FOR UPDATES- Recompletions in Existing Wells CALL SELLER FOR ADDITIONAL INFO PP 1544DV- Waterflood Potential Over Multiple Zones PP 3825DVCA Required to View Data Room SOUTH OKLAHOMA PROPERTYAGENT WANTS OFFERS DEC 14, 2012 NORTH OKLAHOMA PACKAGE 289-Active. 80,000-Gross Acres.PP 1864DV 85-Wells. ~14,346-Net Acres. GRADY, GARVIN & STEPHENS BEAVER, ELLIS & HARPER CO. CHITWOOD - KNOX AREA PPOCHILTREE CO., TX PROPERTY MOCANE-LAVERNE AREA PP CANA WOODFORD SHALE TRENDMultiple Active Wells. 1,328-Net Acres. Chester, Morrow, Tonkawa, Chase Sycamore, Woodford, Hunton, Viola, HoxbarCLEVELAND OIL PLAY -- & Council Grove Production. Simpson, Deese, Morrow & Springer4-Remaining Locations To Be Drilled -- PP Various Depth Limitations & Restrictions OPERATED & NonOperated Wells-- In Cleveland Horizon. Avg 59% OPERATED WI; 48.3% NRI ~14%-75% WI Available; ~11%-60% NRIActive Horizontal Development Gross Prod: 2,800 MCFD & 11 BOPD 2,800 Net Prod: ~10.7 MMCFD & 342 BOPD 10,7477-Rigs & >100 Permits: Pan Petro Field Net Sales: 1,200 MCFD & 3.0 BOPD MCFD POSSIBLE HORIZONTAL DEVELOPMENT MCFD100% OPERATED WI; ~74% NRI(Lease) Net Operating Cash Flow: $68,900/Month Net Operating Cash Flow: $1,658,000/MonthEst Net Production: ~670 BOED ~670 CONTACT AGENT FOR UPDATE Expected EURs: 1,447 MBOE/Well30-Day IP Rates: 230-490 BOED -- BOED PP 5999DV EURs After Processing: 2,102 MBOE/Well--From Initial 4 Horizontal Cleveland Wells. Net Reserves (PV10): $10,900,000Aries & PHDWin Reserve Report. Completed Well Cost: $9,000,000CONTACT AGENT FOR UPDATE No Commission. List Today! CA Required for Data PackagePP 1259HZ To get started, please call 713-600-0154 CALL OKLAHOMA AGENT FOR UPDATE or e-mail listingmgr@plsx.com PP 1992LFind more listings at www.plsx.com/listings No commission! List today, call 713-650-1212
  • 13. Volume 23, No. 16 13 A&D OKLAHOMA OHIO MONTANASOUTHERN OKLAHOMA PROJECT OHIO NON-PRODUCING ROYALTIES SHERIDAN CO., MT STRIPPER WELL42-Wells. ~37,200-Net Acres. ~12,000-Acres. 1-Active Well. 320-Acres(HBP).CARTER, LOVE, MARSHALL & BRYAN STARK, MAHONING, JEFFERSON,-- WILLISTON BASINARDMORE BASIN - LAKE MURRAY PP HARRISON, COLUMBIANA, CARROLL, RR Close To North Dakota Border. PPArbuckle, Bromide, Caney, Deese -- & BELMONT COUNTIES Producing Commingled Red River/Nisku.Dornick Hills, Goddard, Hunton, Sycamore, UTICA SHALE PLAY Bakken/Three Forks Upside.Springer, Viola, Simpson & Woodford. 5.0% ORRI FOR SALE ROYALTY Also Potential Mission Canyon Re-Drill.Upside: Woodford, Goddard & Simpson Exception of 1.5% in 820 Acres. DRILL STEM TEST BAKKEN/Average 27% NonOperated WI; 21% NRI 1,443 CALL LESSOR FOR MORE INFO >35% OPERATED WI; ~74% NRI THREENet Sales: 1,443 MCFD & 6.0 BOPD MCFD RR 1867 Avg Net Production: ~20 BOPD FORKSProprietary 3-D Seismic Shoots Available. Net Taxable Cash Flow: ~$7,500-$8,000/MnOperating Net Cash Flow: $109,023/MonthEstablished Revenue Stream -- PENNSYLVANIA CALL SELLER FOR MORE INFO PP 6009DV-- With Ongoing Development. PENNSYLVANIA PACKAGECONTACT AGENT FOR UPDATE 700-Active Wells. 51,000-Acres. NORTH DAKOTAPP 1917DV MARCELLUS & UTICA SHALES PP 400 Miles Pipeline, Potential Storage, MCKENZIE CO., ND PROPERTYSTEPHENS CO., OK PACKAGE Drilling Operation & Company For Sale. MARCELLUS 12-Active.10-PUD.12,800-Gross Acres.Multiple Active. 227-PUD. 845-Acres. CONTACT BROKER FOR DETAILS BAKKEN SHALEANADARKO BASIN PP 9639CO Birdbear, Duperow, Red River Formation. PPLOCO FIELD PP Significant UpSide Potential.S Location Undergoing Waterflood. PENNSYLVANIA PRODUCTION SALE 100% OPERATED WI AVAILABLESignificant UpSide Drilling Potential. 690-Total Acres. 2-Properties. Net Production: 170 BOED 170100% OPERATED WI; 81% NRI FAYETTE & WESTMORELAND CO. Avg Net Cash Flow: $223,896/Mn BOEDGross Production: 316 BOPDNet Production: 258 BOPD APPALACHIAN BASIN PP CONTACT AGENT FOR ADD’L INFO PP 9497DV All Mines and MineralsNet Proved Reserves: 2,675 MBOE Up to 50% Interest in Marcellus; 83% NRINet Proved Rsrvs (PV10): $69,000,000 Avg. Wells Producing 15 MMCFD MINERALS NORTH DAKOTA NONOPERATED3rd Party Reserves Report. Major Gas Pipelines Run thru Properties 58-Active Wells. 13,900-Net Acres.CONTACT AGENT FOR MORE INFO CONTACT SELLER FOR DETAILS HORIZ BAKKEN & THREE FORKSPP 2872DV PP 7585M DUNN, MCKENZIE, MOUNTRAIL -- PP -- & WILLIAMS CO., NDWEST OKLAHOMA PROPERTY WEST VIRGINIA 346 Proved Undeveloped Locations117-Wells. 28,360-Acres. 51-HBP Sections VARIOUS NONOPERATED WI FOR SALEBECKHAM, CUSTER & WASHITA CO. WEST VIRGINIA ROYALTY Net Volumes:1,000 BOPD & 60 MCFD 1,010WEST TURKEY CREEK AREA PP 257-Active. Net Proved Reserves: 25 MMBO & 10 BCF BOEDDes Moines Granite Wash, Hogshooter, COUNTIES INCL: BARBOUR, GILMER Total Proved Rsrvs (PV12): $335,000,000Cottage Grove, Red Fork, Atoka & Morrow13%-63% NonOperated & OPERATED WI -- BOONE, HARRISON, RANDOLPH RR NEGOTIATED SALE. SEE VDR. CONTACT AGENT FOR MORE INFO Birdbear, Duperow, Red River Formations.Average Leasehold Delivered 80% NRI 9,935 Significant UpSide Potential. PP 1222DVAvg Net Sales: 765 BOPD, 9,935 MCFD MCFD ROYALITIES FOR SALEOperating Net Cash Flow: $3,234,018/Mn Net Profits Interest Under Royalty NPI ROYALTY NORTH DAKOTA ROYALTY SALECA Required to View Data Room Avg Net Cash Flow: $201,916/Mn 367-Horizontal Wells. >240-Sections.CONTACT AGENT FOR UPDATE Sealed Bid Offering. MOUNTRAIL & BURKE COPP 1963DV CONTACT AGENT FOR UPDATE BAKKEN / THREE FORKS RR RR 1569PP 34-Active Horizontal Rigs (Mountrail Co.) OHIO CONSIDERABLE UPSIDE OVERRIDING ROYALTY FOR SALEEASTERN OHIO NONOP COLORADO Top Operators: Whiting O&G, Fidelity E&P,87,400 Gross Acres. 21,800-Net Acres. SAN MIGUEL CO., CO PROPERTY -- Oasis, Hess, Murex & EOG Resources. BAKKENHORIZONTAL UTICA SHALE Avg 6-Month Net Cash Flow: $127,589/MnWET GAS WINDOW & OIL WINDOW PP 3-Wells. 8-PUDs. 610-Net Acres. COCKLEBUR DRAW Total EUR’s: 628 MBOE (Bakken)10 Wells Drilled to Date536 Locations on 160-Acre Spacing Obj 1: Cutler Honaker. 7,000 Ft. PP Total EUR’s: 490 MBOE (Three Forks) CALL DALLAS AGENT FOR DETAILS Obj 2: Hermosa. 9,500 Ft.-- Additional 250 Potential Locations Uphole Potential. RR 3998PP25% NonOperated WI For Sale 4,340 50% OPERATED WI; 40% NRIWell Tested Up to 4,340 BOED BOED Gross Production: 800 MCFD 4001,560 BOPD, 7.1 MMCFD & 1,030 BNGL Net Production: 400 MCFD MCFDOperated by Gulfport Energy Corp. 8 PUD’s w/ Possible 3.0 BCF Per Well.CA Required to View Data Room CONTACT SELLER FOR MORE INFOCONTACT AGENT FOR MORE INFO PP 2668DVPP 1891DV www.plsx.com/maFor listing inquiries, e-mail listingmgr@plsx.com Access PLS’ Engagements for featured deals for sale
  • 14. Transactions 14 December 5, 2012 WYOMING CALIFORNIA MULTISTATE CROSS REGIONNIOBRARA CO., WY PROPERTY KERN CO., CA PROPERTY MULTISTATE ROYALTY PACKAGE8-Active Wells. 2-Potential Locations. 42-Active. 5-SWD. 118-Wells. 5-States.NORTH ANT HILLS FIELD NORTH BELRIDGE FIELD TEXAS, OKLAHOMA, KANSAS --Multiple Wells w/ Reserves Behind Pipe PP DIATOMITE & TULARE PP -- LOUISIANA & MISSISSIPPI RRLakota Marine Bar & Lakota Channel Sand. Significant Low-Risk Undeveloped Oil Production from 5 New Wells.5.5% ORRI in 2 Leo Formation Oil Wells EXCELLENT OPPORTUNITY 3 Wells in Completion Stages--Option to Convert ORRI to 30% WI APO 128 100% OPERATED WI AVAILABLE 100% COMPANY STOCK SALE 8,959100% OPERATED WI; Avg 82% NRI BOPD Current Production: 150 BOED (95% Oil) Gross Prod: 1,145 BOPD & 8,959 MCFD MCFDGross Production: 128 BOPD Since Mid 2010: 140 BOPD & 100 MCFD 150 5-New Wells: 216 BOPD & 429 MCFD11-Mn Net Cash Flow: $230,077/Month Net(Proved)Rsrvs: 2,663 MBO & 683 MCF BOED Avg 9-Month Net Cash Flow: $33,985/MnEst Recoverable Reserves: 250-400 MBO Net (Proved) PV10: $92,500,000 CONTACT AGENT FOR UPDATECONTACT AGENT FOR UPDATE Est Net (3P) Reserves: 4,302 MBOE RR 1861PPPP 1880RR Est (3P) Reserves PV10: $92,000,000 CONTACT AGENT FOR UPDATE WANTED MULTISTATE ROCKIES PP 9365WF SEEKING OIL PROPERTIESMULTISTATE ROCKIES NONOP KERN CO., CA PROPERY Prefers Operated.238-Active Wells. ~12,220-Net Acres. 2-Active Wells. 1-Water Disposal Well. TEXAS & WEST COASTNORTH DAKOTA & MONTANA BEAR VALLEY. ASPHALTO FIELD. Prefers Older Field w/ Production-- WBAKKEN / THREE FORKS PLAY PP Depth Limit - Bottom Of Monterey. PP --& Development Upside.>170-Active Rigs in the Area Antelope Shale (Monterey)~5,800-6,500Ft. Waterflood & Horizontal Drilling.Operators Rapidly Developing Acreage Drill 5-Vertical Wells On 10-Acre Spacing- Also Consider Significant NonOp Position. WANTEDAvg 4.3% NonOperated WI; 3.5% NRI -- OR Significant Horizontal Well Potential Seeking Values $25MM - $75MM.Est October 2012 Net Prod: ~885 BOED 100% OPERATED WI; 80% NRI CONTACT PLS AGENT WITH DEALSOperators Include: Continental, EOG, ~885 Gross Prod: ~5.0 BOPD & 550 MCFD MONTEREY W 8076PP/DVHess, Marathon, Statoil, Slawson & Oasis. BOED Net Cash Flow: ~$25,000/MnNet PDP Reserves: 1,701 MBOE Net Proved Rsrvs: ~163 MBO & 12 BCF WANTED: OIL & GAS PRODUCTIONTotal Proved Reserves: 4,027 MBOE Net Proved Rsrvs (PV10): $19,000,000 U.S.ONSHORE OR OFFSHORENet Proved PV10 Rsrvs: $87,500,000 CONTACT AGENT FOR CA & REPORT Wants Proved Production w/ Upside.CA Required to View Data RoomCONTACT AGENT FOR UPDATE PP 7689DV Wants. NonOperated Working Interest W Prefers 30%-40% PDP.PP 1974 MULTISTATE GULF COAST Prefers 50%-60% PDP+PUD. Price Range: $100 MM - $300 MM WANTEDROCKIES SALE PACKAGE TEXAS & LOUISIANA PROPERTIES Can Typically Close In 90-120 Days.34-Active Wells. 2-SWD. 3-Fields. 46-Active. 19,380-Net Acres. CALL PLS TO LEARN MORENORTH DAKOTA & MONTANA EAGLE FORD & E TX CRETACEOUS W 2420PPWILLISTON BASIN PP CLAY & HARDIN (TEXAS) PPProducing from Madison Formation. GRAND LAKE (LOUISIANA) SEEKING ROCKIES PROPERTIES4 NonOperated Behind Pipe Opportunities. Significant UpSide: Y-4 Horizontal Drilling Both Oil & Gas.LOW RISK, LONG LIFE PRODUCTION Including CO2 Flood Potential. DAKOTAS, MONTANA, WYOMINGNonOperated & Operated WI Available 13-81% WORKING INTEREST FOR SALE ~260 BOED ~100-Development Locations. OPERATED WI FOR SALE Unconventional & Conventional. W Relatively Shallow Depths (<5,000 Ft).Net Production: ~260 BOED (86% Liquids) Net Production: 180 BOED 180 Also Interested In Leases.Sale Does Not Include Bakken/TF Interest Net Cash Flow: $140,000/Mn BOED OPERATED OR NON-OPERATED WICGA Reserve Report Available. Net Proved Reserves: 10.7 MMBOE Price Range: Under $500,000 WANTEDCA Required to View Data Room Net Prov Rsrvs (PV10): $157,000,000 CONTACT PLS FOR BUYER INTROOFFERS DUE BY DECEMBER 2012 (LA)Net PDNP Rsrvs (PV10): $4,100,000 W 7135PP/LPP 1896DV CONTACT AGENT FOR UPDATE PP 2309DV WANTED: TEXAS GAS PRODUCTIONWILLISTON BASIN NONOP 200-700 MCFD. Long Lived Production.145-Wells. ~2,706-Net Acres. GULF OF MEXICO TEXAS & GULF COASTNORTH DAKOTA & MONTANA PP Target Formations: Miocene & Frio WBAKKEN / THREE FORKS GULF OF MEXICO OVERRIDE Target Depths: ~5,000 Ft.>300 Identified Drilling Locations. 6-Blocks. Single Well or Small Field (Gas). WANTEDAveraging 8 New Wells Per Month OFFSHORE LOUISIANA SEEKING 100% OPERATED WIAvg 1.79% NonOperated WI; 1.43% NRI ~300 Ship Shoal 182/183 RR Quick Close After Due Diligence.Net Production: ~300 BOED BOED South Timbalier 36/37 W 9224PPOperators: Eugene Island 339 & 342EOG, Hess, Marathon,Whiting & WPX 80% ORRI SALE OF A 25% NPI OFFSHORE No Commission. List Today!CONTACT AGENT FOR UPDATE OFFERS DUE BY DECEMBER 12, 2012PP 1955DV RR 1863 To get started, please call 713-600-0154 or e-mail listingmgr@plsx.comFind more listings at www.plsx.com/listings No commission! List today, call 713-650-1212
  • 15. Volume 23, No. 16 15 A&DPeople Briefs What the Analysts Are Saying About A&D • Denver-based Anschutz Linn Co. LLC (LNCO; $38.60–Nov. 29; Outperform; PT: $48)Exploration appointed Chris Hunt as LNCO Firepower Cued for E&P C-Corp Buyouts: While still un-utilized as anchairman and CEO. Hunt worked for M&A vehicle since its 10/12/12 IPO, we think it is only a matter of time before LinnCo affiliated company (LNCO) is put to work as an M&A vehicle to grow distributions at Linn Energy Anschutz Corp. as (LINE). ... We estimate the most accretive takeout would be Whiting PetroleumVP before leaving to form private Corp. (WLL, 47% accretive) followed by SM Energy Co. (SM, 26%) and Oasisinvestment firm Knightsbridge Capital. Petroleum Inc. (OAS, 25%). We estimate that LNCO could pay a 20% premiumHe also co-founded Caerus Oil & Gas. for SandRidge Energy Inc. (SD) and generate accretion of 12%. Our list is in • Southwest oil and gas acquirer no way an exhaustive representation of potential takeout candidates, but is insteadCore Resource Management illustrative of the very broad opportunity set available to Linn for friendly merger deals.appointed financial advisor Dennis ... The simple mechanics of a transaction for LNCO would be to issue LNCO units toOrsi to its board as an the target, with LNCO effecting an immediate swap of the assets for more LINE units.independent director. LINE would then raise its distribution based on the accretion from the transaction, in • Gulfport Energy hiredJordan Brandenburg as landman for the turn raising the dividend at LNCO. LNCO’s steadily decreasing discount to LINE,Utica. Brandenburg previously served now measuring less than 3%, underscores increasing investor understanding/attractionas senior landman at Chesapeake. to the unique LNCO vehicle. —Ethan H. Bellamy, Baird • Jones Energy appointed Steve SandRidge (SD; $5.62–Nov. 23; Hold)Bryson as land manager at its Austin SD adopts poison pill: Company trying to fend off recent activist campaigns headquarters. Bryson calling for strategic and management changes. Purpose of new shareholder rights joins Jones from plan and change to bylaws include: 1) deters hostile takeovers as significant costs/Reeder Energy Partners where he dilution comes with acquiring 10+% stake (15% for passive institutions); 2) forceswas VP of land. direct negotiations with management/board vs. acquiring shares in open market; • Petroshale Inc. announced the and 3) adds additional layer of complexity to making board/management changes.departure of Worldwide Geochemistry —Jeff Tillery, Tudor, Pickering, Holt & Co.president Daniel M. Jarvie from itsboard. Jarvie will continue to work with QEP Resources (QEP; $26.67–Nov. 16; Outperform; Range: $40-$44)Petroshale as a technical consultant. Management has laid out and reviewed four potential pathways to raising a target • Eagle Ford producer Sanchez of $1 billion by mid-2013. In no particular order the options are as follows: Sale of non-Energy hired Joseph R. DeDominic as core upstream assets (which assets not specified); Royalty Trust/VPP; Partial midstreamSVP and COO. DeDominic joins the sale to financial partner; MLP of midstream assets. After thoroughly reviewing all, thecompany from Occidental Petroleum board and management eliminated the trust/VPP option ... Obviously there were a lot of where he served for 12 years, questions about what is considered “non-core” but management is reluctant most recently as president to telegraph divestiture plans at this point. One thing was clear though: and GM of the Willistion in spite of a recent upswing in natural gas transactions, management stillbusiness unit. Also, Sanchez Oil & believes this is a bad time to sell gas assets as valuations are still too low. For this reason,Gas co-founder, CEO and chairman it is unlikely that QEP would sell the Haynesville or other dry gas assets at this point.A. R. Sanchez Jr. was appointed So what does this leave for “non-core” assets that could potentially be sold? We thinkexecutive chairman of the Sanchez given inventory and midstream investment in the Uinta and Pinedale, that these are likelyEnergy board. IBC Insurance senior viewed as long-term strategic assets and are unlikely to be sold. The mid-continentcommercial producer Alan G. Jackson liquids plays (Granite Wash, Tonkawa, Marmaton, Cana) seem like the most likelywas also appointed to the board as anindependent member. candidates given lack of investment, but valuations are likely hurt by mid-continent • Oil and gas non-op Victory gas and NGL markets. QEP could also find some interest for the Powder River Basin,Energy’s CFO Mark Biggers resigned which is currently facing difficulty in getting off the ground due to the pace of federalciting family and personal reasons. permitting. There are some other smaller assets, such as the Vermillion that could be soldBiggers will serve as interim CFO during off, but likely not large needle movers. —David Tameron, Wells Fargothe transition period. Vanguard Natural Resources (VNR; $26.00–Nov. 16; Outperform; PT: $34) Acquisitions to drive DPU growth: With over $900MM in acquisitions year- to-date, we anticipate VNR to grow distributions by 5.7% in 2013 to $2.54/unit. We model a compound annual growth rate of 6.0% from 2012-2015 predicated on continued growth through acquisitions. We model $250MM in acquisitions per year, which may prove to be conservative given management’s strong acquisition appetite and related track record in 2012. —Ethan H. Bellamy, Baird www.plsx.com/finderFor general inquiries, e-mail info@plsx.com Access PLS’ A&D Transactions archive for previous A&D news
  • 16. Transactions 16 December 5, 2012Nytex sells to JV partner Newark E&P to fund Marble Falls People & Companies Fort Worth-based Newark E&P bought JV partner Nytex Energy Holdings’ 15% Millbrae adds senior execsWI in ~17,000 North Texas leasehold acres including two producing wells and carried to expand acquisitionsinterest in seven drilling prospects for $3.2 million cash. Mid-Continent and Permian producer “The sale of our 15% interest in the 17,000 leasehold acres provides us additional Millbrae Energy hired two seniorcapital to exploit the burgeoning opportunities created by our early success in our executives from Chaparral Energytarget multi-pay oil resource plays,” said Nytex chief Michael Galvis. Nytex owns as part of its effort to accelerate andan average 5% WI in ~5,600 acres and 1% ORRI in more than 88,000 acres in Jack, diversify its acquisition activity. LarryThrockmorton and Young Cos., Texas targeting the Marble Falls, Mississippi and E. Gateley—a 39-year industry veteranCaddo limestones. The company maintains an ongoing acquisition program in the who served at Chaparral as long-timeMarble Falls play. SVP of A&D and corporate reservesAtlas buys highly attractive Marble Falls Continued From Pg 1 and recently added the role of Southern The Marble Falls is present on 75,000 net acres of the acquisition with 700 identified region manager—is now EVP and COOvertical locations plus opportunities for vertical downspacing and horizontal drilling. at Milbrae. Former Chaparral SVP and “We are looking forward to adding the valuable oil, liquids and natural gas production general counsel Robert W. Kelly II hasfrom these assets, and are optimistic about the potential for continued development of the been named to the same roles at Millbrae.highly attractive Marble Falls play,” said Atlas president and COO Matthew A. Jones. “Webelieve that this acquisition will further diversify our cash flow by increasing our contribution Founded in 2001, the Permian & Mid- from oil and NGL production to approximately 20% based on third-quarter 2012 Con producer is now looking to new plays. production. In addition, we expect to gain significant efficiencies in this region Like Gateley, Kelly has spent much of his as our established Fort Worth 32-year career engaged in A&D activity,team will operate and develop these assets.” Fort Worth Basin sale completes utility DTE Energy’s multi-year upstream exit. as well as in oil and gas law and land work. In addition to the Barnett assets it Millbrae’s new management teampicked up from Titan Operating and Carrizo earlier this year, Atlas picked up mostly will help deploy a 2013 target budget ofundeveloped Mississippian acreage from Equal Energy in two transactions (see table). more than $500 million for acquisitionsProperties from the company’s initial spinoff are located in the Marcellus (accounting and development drilling “to help thefor 90% of initial production), Niobrara, New Albany, Antrim and Chattanooga shales. company grow rapidly in size and scope,” For DTE, the deal represents the completion of a multi-year exit from the said founder, chairman and presidentupstream sector that began in 2007 with a $1.2 billion divestment of Michigan gas Stewart Mills Reid. The new team is alsoproperties to (poetically enough) Atlas Energy. Toward the end of that year DTE moving Millbrae’s regional office fromsold the majority of its Barnett assets to Range Resources for $260 million. Tulsa to Oklahoma City. Atlas plans to hedge ~80-100% of its available acquired production for thenext three years, then 40-60% of available production for the subsequent two years. FOR SALE Call 713-650-1212The company secured financing for the deal from Wells Fargo and Citigroup in connection with itsrevolving credit facility. Citigroup also acted as Atlas’ PERMIAN SALE PACKAGE Next ProspectCentrefinancial advisor with Houston-based Jones Day and 27-PDP Wells. ~1,930 Net Acres.Philidelphia-based Ledgewood as legal advisors. The Atlas plans to commence MIDLAND, ECTOR & ANDREWS CO.deal is expected to close by December 31. Marble Falls drilling next year. SPRABERRY (TREND AREA) PP Multipay: Wolfberry; Strawn, Wolfcamp ---Dean, Spraberry & Clearfork Atlas Resource Partners Acquisitions To Date Source: PLS M&A Database 50-100% OPERATED WI; ~38-75% NRI Gross Prod: 573 BOPD & 1,284 MCFD Value Prod. 1P 1P % Net Net Prod: 320 BOPD & 741 MCFD Date Sellers ($MM) Location (boepd) (MMboe) gas Acres Net Cash Flow: >$1,000,000/Mn Substantial Drilling Upside 11/19/12 DTE $255 Barnett 3,800 35 43% 88,000 CALL PLS FOR MORE INFO 9/24/12 Equal $40 Mississippian 1,400 — — 8,500 PP 1695DV Titan 5/17/12 $184 Barnett 4,000 42 84% 16,000 Operating For more details on this package, please 4/4/12 Equal $18 Mississippian — — — 7,250 e-mail Brian Green at 3/15/12 Carrizo $190 Barnett 6,000 46 79% 12,000 bgreen@plsx.com This package’s virtual data room can be 10/17/11 Atlas — Marcellus 800 30 87% — access for additional info at www.plsx.com Energy Total $687 — 16,000 153 74% 131,750 To learn more about PLS, call 713-650-1212
  • 17. Volume 23, No. 16 17 A&DClosing Briefs Closings • Leni Oil & Gas closed the sale East West & Lani complete San Joaquin farm-in dealof its seven Gulf of Mexico leases for East West Petroleum completed its farm-in and AMI agreements announced$1.714 million after closing adjustments, September 4 to carry out joint exploration with Lani LLC in California’s San Joaquina 5% increase over the $1.625 million Basin. East West now holds interests in ~4,500 gross acres (3,200 net) at the Tejon consideration originally Extension and Tejon Main areas (25% and 21.25%, respectively) primarily targeting announced. It also identified shallow oil prospects and will contribute $2.5 million over the next four to six months the previously unnamed US to drill two exploratory wells and acquire additional joint leases.buyer as Natural Gas Partners portfolio Lani will initially operator and East West will have an option to become operatorcompany Northstar Offshore Group. at a later date. By the November 19 closing Lani had acquired ~1,000 gross acres inLeni will now focus investment on itsoperations onshore Trinidad. the AMI, and the two companies hope to add at least 7,000 more on a 50:50 basis. • QR Energy LP closed its acquisition Denbury closes first phase of Bakken deal with Exxonof mature, predominantly oil properties EOR operator Denbury Resources closed on the first phase of its Bakken salein East Texas field for $214.3 million and asset exchange with ExxonMobil and sub XTO Energy. Exxon paid ~$1.3cash after customary adjustments. billion cash (including preliminary closing adjustments) for 82.5% of Denbury’s QRE’s 8-K filing identifies the North Dakota and Montana producing properties (161,700 net acres) and transferred seller as Danmark Energy. to Denbury its operating interests in Texas’ Webster field and Wyoming’s Hartzog The properties in Gregg and Draw field. Denbury plans to invest a substantial portion of proceeds to acquireRusk Cos. contain 397 wells producing interests in oil fields that are suitable for CO2-enhanced oil recovery.1,400 boepd (90% oil) with proved The companies are working to complete the final phase of the dealreserves of 10.7 MMboe. The acquired which involves Exxon transferring an interest in its CO2 reserves in LaBargeassets overlap QR Energy’s existing field in Wyoming to Denbury for the remaining 17.5% of the Bakken assets (34,300properties in the field. net acres). If that transfer does not go through as planned, Denbury will sell an • Sefton Resources closed on partof its Leavenworth Co., Kansas lease additional 17.5% Bakken-area interest to Exxon for a further $350 million.acquisition announced September24 and named the previously Vanguard picks up Montana production Continued From Pg 1 unidentified seller as Dark Although the oil-gas production breakout for the Montana deal was not disclosed, Horse Operations. Sefton Vanguard said properties are “characterized by mature oil production with some associated picked up 42% WI in the natural gas production” so they are certain to represent Vanguard’s oiliest acquisition YTD.lease on November 15 via its sub TEG The deal will more than double Vanguard’s Williston Basin production to 2,000MidContinent for an initial $75,000 and boepd. The company’s existing Williston assets produce 900 boepd (90% liquids)will pay another $125,000 upon transfer and proved reserves of 5.3 MMboe Paid $119,091 ppboe/d—34%of the remaining working interest. The (93% oil, 95% developed) for a reserve life QPi above YTD Bakken avg. of $88,771.lease holds 14 wellbores which are not of 16 years. Vanguard operates 70% ofcurrently in production plus surface existing properties including 75 producing wells. The 45,022 net acres (70% WI) in its pre-equipment and water disposal facilities. deal Williston portfolio are located across multiple counties in North Dakota and Montana. • Houston-based Texas Petroleum In March Vanguard farmed out interests in order to develop two of its North DakotaInvestment Co. closed its acquisition Bakken properties—to Oasis Petroleum for $1.0 million and Triangle Petroleum forof south Louisiana properties from $4.4 million. According to an October 10 presentation the company was negotiating aForest Oil on November 16 for $208 JV for additional development in 2012-2013.million—down from the $220 millioninitial announced October 11 because Offshore A&D of customary adjustments. Forestexpects to get another ~$2.0 million for Exxon confirms farm-in to Anadarko’s Phobos prospectassets on which third parties possess During its Q3 conference call, ExxonMobil confirmed itself as the company topreferential purchase rights. As a result which Anadarko in July had farmed out a 20% stake in Sigsbee Escarpment Blockof the ~22 MMcfed of Q3 production 39 containing part of the deepwater Phobos prospect. Between Exxon and an earlierincluded in the sale, Forest lowered its farmout to Plains E&P, operator Anadarko will be carriedH2 guidance range by 10 MMcfed to for 100% of the initial exploration well scheduled to spud by320-330 MMcfed (still 66% gas). year’s end. Anadarko now holds a 30% stake in the Gulf of Mexico block with Plains holding 50%. Phobos is estimated to hold resource potential of 306 MMboe. www.plsx.com Exxon also said it had acquired 35% WI in the Thom prospect 30 miles northeast of the major’s Julia discovery in the GOM. A Thom exploration well is scheduled for next year. QR EnergyFor general inquiries, e-mail info@plsx.com Access PLS’ A&D Transactions archive for previous A&D news
  • 18. Transactions 18 December 5, 2012Freeport shocks with McMoRan & Plains buy Continued From Pg 1 Offshore A&D On the production side, the acquisitions bring 182,000 boepd of Q3 volumes (66% CNOOC reboots Nexen buy,liquids) which includes 60,000 boepd from Plains’ recent GOM buys. Onshore assets filing with US regulatorinclude Plains’ established California oil production, growing Eagle Ford profile and As Canada nears a decision onlarge Haynesville gas resource base as well as McMoRan’s leadership position in the whether to approve Chinese NOC onshore Louisiana portion of the ultra-deep shelf play. CNOOC’s $15.1 billion takeover bid for On a pro forma basis, ~74% of Freeport’s 2013 EBITDA is expected to Nexen, the two companies withdrew and be generated from mining and 26% from oil and gas, with 48% of combined resubmitted their applicationEBITDA sourced to US operations. In its investor presentation, Freeport suggested that its for US approval of the dealnew oil exposure is in line with favorable Total deal value yields $34 by the Committee on Foreigncommodity supply-demand fundamentals QPi ppboe/g or $108,000 ppboe/d. Investment in the US. The companies didthat are supportive of future prices for both not give a reason for the move, leading tooil and its core copper business. Reasons for the favorable outlook include emerging speculation that the review process maymarket growth and global urbanization which are expected to grow energy consumption have hit a snag.by more than 30% by 2035 and refined copper consumption by 60% by 2025. Although most of Nexen’s properties Other benefits of the acquisitions identified by Freeport are a large oil-focused revenue are in Canada, the deal also requires USbase coupled with a favorable entry point into low-cost, long-term gas resources—plus approval because Nexen has assets in thesignificant exploration upside and the strong margins and cash flows to fund its development. US Gulf of Mexico including interests “The transaction will add a high-quality portfolio of assets with strong current in 205 blocks holding more than 100cash flows, significant growth options and complementary exposure to marketspositioned for global growth in the developed and developing world, and reflects our Nexen has 203 MMboe of 1P, 310 MMboepositive view of the factors that will drive demand for copper and other commodities,” of 2P & 13,000 boepd output in GOM.said Freeport president and CEO Richard C. Adkerson. “The oil and gas assets being prospects and the Appomattox andacquired possess the asset quality characteristics that we seek in our mining business— Knotty Head developments. The deallarge-scale assets with long lives, low cost and geologic potential to support growth would be China’s biggest overseas buy,through exploration and development.” exposing CNOOC to the US GOM asFinancial terms, plus James Flores to run E&P— well as Nexen’s large positions in the UK The majority of the deal value consists of ~$10.3 billion in assumed Plains debt North Sea, West Africa and Alberta’s oil(largely related to the recent deepwater buys) with another $300 million of McMoRan sands and other unconventional plays.debt included. Freeport will also pay McMoRan shareholders per-share consideration Heritage Foundation researchof $14.75 cash plus 1.15 units of a royalty trust which will hold a 5% ORRI in future fellow Derek Scissors told Reuters theproduction from the GOM explorer’s ultra-deep prospects. Continues On Pg 19 resubmission is not likely to represent a major hurdle for the deal: “It typically occurs when there’s a declaration by the applicant Freeports New Oil & Gas Portfolio From Plains & McMoRan that runs afoul of a CFIUS regulation but Proved Reserves (1) can be reformulated. The reformulations 575 MMBOE Natural Gas Oil Other usually are procedural, not material.” 5% Haynesville California 22% www.plsx.com 6% GOM 38% Shelf Deepwater GOM 4% 25% Eagle Ford 2013e Production by Region 175 MBOE/d 2013e Production Mix Other GOM 3% Shelf 11% Gas CNOOC GO Deepwater 28% California GOM 33% 23% PLS provides clients with research, Oil 6% NGLs Eagle 66% insight and transaction opportunities... 24 | 7 | 365 Ford 9% 21% Haynesville 1. PXP Reserves as of 12/31/11 except for reserves purchased in deepwater acquisitions which Source information at www.plsx.com are as of 9/30/12; MMR reserves are mid-year 2012 pro forma for 2H12 divestitures. e = estimate Source: Freeport December 5 Presentation via PLS docFinder www.plsx.com/finder To learn more about PLS, call 713-650-1212
  • 19. Volume 23, No. 16 19 A&DOffshore A&D Memorial leaps offshore California with $268 million buyShell buys out Callon stake at Upstream MLP Memorial Production Partners made the largest acquisition in its 12 months of operation and its first offshore buy, agreeing to acquire RiseHabanero in deepwater GOM Energy Partners’ stake in the producing Beta oil field off southern California. For Callon Petroleum agreed to sell its a purchase price of $268 million (excluding $3.0 million of working capital and11.25% WI in the deepwater Habanero other customary adjustments) Memorial will get an operated 51.75% WI in threefield offshore Louisiana to operator Shell Pacific OCS blocks in federal waters ~11 miles off Long Beach alongfor $42 million. Located on Garden with three conventional wellhead and processing platforms, a 17.5-Banks Block 341 in 2,015 ft of water, the mile pipeline and an onshore tankage and metering facility. Two of the Gulf of Mexico field produced platforms are bridge connected and stand in ~260 ft of water while the third stands ~420 boepd (80% oil) net in ~700 ft of water. to Callon during Octoberrepresenting 8.7% of the company’s total In production since January 1981, QPi $19 ppboe/gRise$174,000 ppboe/d. MLP pays or Energy Partners the properties have estimated proved oiloutput. Net proved reserves are 8.2 Bcfe reserves of 14.3 MMbbl (100% oil, 70% developed) as of September 30 with a PV-(56% gas, 16% developed) with a PV-10 10 of $392.8 million. The field’s 51 wells produced 1,574 bopd during the first nineof ~$46.6 million. months of 2012 implying a reserve life of ~25 years. Chairman and CEO Fred Callon According to Memorial the field exhibits a stable production profile with an annualcalled the sale “another significant step in PDP decline rate of 5% and is expected to be accretive to distributable cash flow.the transformation of our asset base” to Memorial said the field has high operating margins and modest capex requirements,onshore, with more than half of company- with multiple low-cost development opportunities including drilling, recompletionswide production for October being and injection enhancement. Highlighting the potential of these opportunities, the $42 million deal helps Callon shift to recovery factor to date is only 9% based on estimated OOIP of ~940 MMbbl and onshore, especially in Permian Basin. cumulative production of ~86 MMbbl. Memorial’s first offshore buy greatly “We believe these properties areonshore pro forma to the transaction. increases oil reserves & production. ideal for an MLP because they areCallon plans to use the proceeds to pay located in a mature, legacy basin characterized by long-life oil reserves, stabledown debt, giving the company flexibility production with a low decline rate and low-risk development drilling opportunities,”to continue its Permian growth efforts. said John A. Weinzierl, chairman, president and CEO of Memorial’s GP. “ThisCallon still holds 15% WI in the deepwater acquisition also diversifies our commodity mix by adding a significant amount of oilMedusa field and several shallow-water production and reserves.”Gulf of Mexico properties in addition to The Beta field buy is 50% larger by value than Memorial’s previous fourits Permian and Haynesville assets. acquisitions combined, two of which were from the MLP’s sponsor Memorial The deal increases Shell’s stake at Resource Development LLC (for $11.3 million) and all of which were onshoreHabanero to 66.25% with Murphy Oil Texas and Louisiana. The latest deal represents 14% of Memorial’s total pro formaholding the remainder. A sidetrack at the reserves and increases the oil content from 21% of reserves to 32%.field is expected to add over 900 boepd in As part of the deal, Memorial will acquire crude oil hedges from closinglate 1Q13 with maintenance scheduled for (expected before year’s end) through 2015 which will cover a significant portion of3Q13. Closing is expected by December 2013 volumes and some 2014 and 2015 production.28 subject to the exercise of preferentialrights and customary closing conditions. Freeport shocks with McMoRan & Plains buy Continued From Pg 18 The cash portion represents a 74% premium to McMoRan’s prior-day closing Find it now! price and totals $2.1 billion (net of MMR interests currently held by Freeport and Plains). Plains shareholders will get 0.6531 Freeport common shares and $25.00 cash PLS docFinder saves valulable per share (totaling $50.00/share based on Plains’ prior-day close—a 39% premium) time in sourcing critical data. with aggregate value of ~$6.9 billion. Cash & stock portions represent 74% To learn more, call 713-650-1212 premium to McMoRan & 39% to Plains. Both deals are expected to close in 2Q13 at which time Plains chief James C. Flores will become vice chairman of Freeport and CEO of its oil and gas operations and two additional Plains board members will be added to Freeport’s board. Credit Suisse Securities and Wachtell, Lipton, Rosen & Katz advised Freeport in the transaction. Evercore Partners and Weil, Gotshal & Manges LLP advised McMoRan while Barclays and Latham & plsx.com/finder Watkins LLP advised Plains.For general inquiries, e-mail info@plsx.com Access PLS’ A&D Transactions archive for previous A&D news
  • 20. Growth Capital for Small Production-Based Oil & Gas VenturesBlueRock provides producers a lower cost alternative to selling down equity. In addition,we provide more capital than banks and our deal structure is non-recourse. This combinationis unique to BlueRock and provides clients with the ability to retain significantly more ofthe long term value of their projects.Let us help your company grow…• Investment size between $1 and $10MM • Simple deal structure and reporting• Client retains upside and control of project • No 3rd party engineering reports required• Provides more capital than a bank • Repeatable and expandable• No personal or corporate guarantees • Cost of capital may be tax deductible• We are engineers, geologists and landmen • Favorable accounting treatment may apply BlueRock Energy Capital II, LLC Attn: Chuck Hallbert 20445 State Hwy 249 3 Chasewood Park, Suite 160 Houston, TX 77070 Office: (281) 376-0111 ext. 305 Mobile: (713) 205-8055 challbert@BlueRockEnergyCapital.com Investments Areas of Expansion www.BlueRockEnergyCapital.com

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