Devon Cline & Wolfcamp
$1.4 B JV w/ Sumitomo
June 7, 2012 source
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Noble Energy Mid-Con
To Unit Corp. $617 MM
July 11, 2012
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7.2% of Lucius in GoM
By Anadarko $556 MM
June 25, 2012 source
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Falkland Islands
$1B Premier Oil buy
July 26, 2012
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Yesterday, Devon Energy announced a JV with Sumitomo Corp. in the Permian Basin. Sumitomo will pay $340 million at closing and another $1.025 billion in the form of a drill carry in exchange for 30% of Devon's interest in ~650,000 net acres in the Cline shale and Wolfcam shale (Midland) of West Texas (implied value of $7,000 per acre). Slide above shows Devon's position and 2012 activity from a recent presentation. In January, Devon struck a $2.2 Billion JV with Sinopec covering other U.S. unconventional plays. |
Unit Corp. agreed to buy Noble Energy's assets in western Oklahoma and the TX Panhandle for $617 MM. The deal brings Unit 3,500 bbl/d plus 39 MMcf/d of production and 44 MMboe (35% oil) of proved reserves. Importantly, the deal brings another 25,000 net acres to Unit's Granite Wash play and adds 617 potential gross horizontal drilling locations with nearly 300 MMboe of 3P reserves. To help fund the deal, Unit is considering divesting up to $300 million of midstream assets. |
On July 2, Anadarko announced a $556 MM deal with an undisclosed buyer in exchange for a 7.2% interest in its Lucius oil development in the Gulf of Mexico. The payment is expected to cover all of Anadarko's capital requirements (retaining 27.8% interest) to get to first production. As shown above, Lucius has been sanctioned, has an estimated 300+ MMboe of resources and is expected to be in production in 2014. Other Lucius partners include Plains Exp., ExxonMobil, Apache, Petrobras and Eni. |
Premier Oil acquired 60% of Rockhopper Exploration's interests in the Falkland Islands. Premier gets another core area in an oil prone basin and leverages its strong operatorship and FPSO development skills. Terms call for initial payment of $231 MM (to cover past costs) plus a development carry of $722 MM and an exploration carry of $48 MM. The largest asset is the Sea Lion discovery where Premier is targeting FDP in 1H 2014 and projecting peak production up to 85,000 bopd.
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