The joint venture deal between Carrizo Oil & Gas, Inc. (NASDAQ:CRZO) and a subsidiary of Reliance Industries Limited has been closed.
Reliance acquired a 20 percent stake in close to 52,200 net Carrizo acres in Pennsylvania Marcellus Shale.
The overall price was $65 million, with Carrizo paying $11.4 million at close, with an additional $1.7 million to be paid later in 2010. The remaining $52 million will be paid as a share of "future drilling,
completion, and seismic costs."
Carrizo affiliate, Avista Capital Partners, simultaneously closed on the same properties with Reliance for about $327 million. Carrizo will receive $44 million in cash from their affiliate from the sale of the 52,500 acres.
The agreement between Carrizo and Reliant is effective immediately.
Showing posts with label Marcellus Shale. Show all posts
Showing posts with label Marcellus Shale. Show all posts
Monday, September 13, 2010
Wednesday, September 1, 2010
Rex (Nasdaq:REXX) Selling Some Marcellus Assets to Sumitomo
Rex Energy Corp (Nasdaq:REXX) announced it is selling some of its acreage in the Marcellus shale to Sumitomo Corp. of Japan.
Shares of the energy company soared on the news, finishing Tuesday's trading session at $11.31, gaining $1.05, or 10.23 percent.
Terms of the deal are $140.4 million, with $88.4 million in cash at the close of the deal, and another $52 million in the form of a drilling carry.
The assets sold include 12,900 acres in the Marcellus Shale in Pennsylvania, a number of shale wells already in production, and other mid-stream assets.
Concerns have also been allayed over the shortfall of its capital expenditures, which now stands at $130.7 million.
Shares of the energy company soared on the news, finishing Tuesday's trading session at $11.31, gaining $1.05, or 10.23 percent.
Terms of the deal are $140.4 million, with $88.4 million in cash at the close of the deal, and another $52 million in the form of a drilling carry.
The assets sold include 12,900 acres in the Marcellus Shale in Pennsylvania, a number of shale wells already in production, and other mid-stream assets.
Concerns have also been allayed over the shortfall of its capital expenditures, which now stands at $130.7 million.
Friday, May 28, 2010
Shell (NYSE:RDS-A) Spends $4.7 Billion for East Resources
Royal Dutch Shell PLC (NYSE:RDS-A) has laid out $4.7 billion to acquire privately held East Resources in order to get their hands on the 1.25 million acres in Marcellus Shale controlled by East Resources
"We are enhancing our world-wide Upstream portfolio for profitable growth, through exploration and focused acquisitions, and through divestment of non-core positions,” Shell's CEO Peter Voser said. “These acreage additions form part of an on-going strategy, which also includes divestments, with an objective to grow and to upgrade the quality of Shell's North America tight gas portfolio."
"East Resources' management have built an excellent organization, with high quality assets in the Marcellus, which we are pleased to have as our centrepiece as we enter the premier shale gas play in the north east US,” Voser added. “The opportunity now is to consolidate our tight gas portfolio, divest from non-core positions across North America, and to invest for profitable growth, by deploying Shell's technology and capabilities on a large scale."
An additional 1.3 million tight gas acreage will in their North American portfolio, which now stands at an estimated 2.7 billion barrels of oil and equivalents.
As part of the deal, Shell will also get investment companies Kohlberg Kravis Roberts & Co. and Jefferies & Company.
Regulators will have to approve of the all-cash deal before it is finalized.
"We are enhancing our world-wide Upstream portfolio for profitable growth, through exploration and focused acquisitions, and through divestment of non-core positions,” Shell's CEO Peter Voser said. “These acreage additions form part of an on-going strategy, which also includes divestments, with an objective to grow and to upgrade the quality of Shell's North America tight gas portfolio."
"East Resources' management have built an excellent organization, with high quality assets in the Marcellus, which we are pleased to have as our centrepiece as we enter the premier shale gas play in the north east US,” Voser added. “The opportunity now is to consolidate our tight gas portfolio, divest from non-core positions across North America, and to invest for profitable growth, by deploying Shell's technology and capabilities on a large scale."
An additional 1.3 million tight gas acreage will in their North American portfolio, which now stands at an estimated 2.7 billion barrels of oil and equivalents.
As part of the deal, Shell will also get investment companies Kohlberg Kravis Roberts & Co. and Jefferies & Company.
Regulators will have to approve of the all-cash deal before it is finalized.
Saturday, May 22, 2010
Chesapeake Energy (NYSE:CHK) Increases Debt to Retain Leases
Even though Chesapeake Energy (NYSE:CHK) CEO Aubrey McClendon has recently said the company wouldn't go into deeper debt to raise capital, they once again have changed their minds and reversed direction, as they've decided to issue $1.7 billion in preferred convertible shares to raise the money.
This pretty much deja vous for the company, as the almost exact reasoning behind this debt has been stated in the past, as the debt will be used to reduce debt. Sounds like the government in many ways.
One other way of raising capital is through the sale of some of its Marcellus Shale assets, which will evidently also be used to pay down debt to the tune of $3.5 billion.
What is left over is targeted for investing in more liquid gas and oil assets. As I said, deja vous.
The company has been brought to this place because of the increased supply of natural gas which is pushing prices down, as well as the large number of acquisitions which led to the debt in the first place.
If it didn't access capital, which the lower natural gas prices can't buy, they could lose their drilling leases, which would happen if they quit drilling.
Consequently, the company will have a dilution of their shares which will cause share price to fall.
This pretty much deja vous for the company, as the almost exact reasoning behind this debt has been stated in the past, as the debt will be used to reduce debt. Sounds like the government in many ways.
One other way of raising capital is through the sale of some of its Marcellus Shale assets, which will evidently also be used to pay down debt to the tune of $3.5 billion.
What is left over is targeted for investing in more liquid gas and oil assets. As I said, deja vous.
The company has been brought to this place because of the increased supply of natural gas which is pushing prices down, as well as the large number of acquisitions which led to the debt in the first place.
If it didn't access capital, which the lower natural gas prices can't buy, they could lose their drilling leases, which would happen if they quit drilling.
Consequently, the company will have a dilution of their shares which will cause share price to fall.
Wednesday, March 24, 2010
Exco Resources (NYSE:XCO) Marcellus Shale Joint Venture
Exco Resources Marcellus Shale
According to CEO Douglas Miller, within a couple of weeks Exco Resources Inc. (NYSE:XCO) could announce a joint venture in the Marcellus shale.
Increased drilling in the region by companies like Chesapeake Energy Corp. (NYSE:CHK), Encana Corp. (NYSE:ECA) and Petrohawk Energy Corp. (NYSE:HK) has raised costs, making it more profitable to attract a partner than bear the cost themselves.
Miller didn't release any potential partners in the Marcellus shale play, although he's looking at a number of options before making a final decision.
Exco Resources Marcellus Shale
According to CEO Douglas Miller, within a couple of weeks Exco Resources Inc. (NYSE:XCO) could announce a joint venture in the Marcellus shale.
Increased drilling in the region by companies like Chesapeake Energy Corp. (NYSE:CHK), Encana Corp. (NYSE:ECA) and Petrohawk Energy Corp. (NYSE:HK) has raised costs, making it more profitable to attract a partner than bear the cost themselves.
Miller didn't release any potential partners in the Marcellus shale play, although he's looking at a number of options before making a final decision.
Exco Resources Marcellus Shale
Wednesday, February 17, 2010
$1.4 Billion Anadarko (NYSE: APC) Marcellus Shale Deal
Anadarko Petroleum Corp. Marcellus Shale
Anadarko Petroleum Corp. (NYSE: APC) sells Stake in $1.4 Billion U.S. Gas Deal Marcellus Shale natural gas project to Japanese trading company Mitsui & Co. for $1.4billion.
Mitsui says it'll invest a minimum of $3 billion to help move the estimated $25 billion gas project forward. The goal is to get gas production levels up to 460 million cubic feet a day.
As a result of the agreement, Mitsui will have a 32.5 percent stake in the assets of Anadarko, which is about 15.5 percent of the gas production project.
The lifespan of Marcellus Shale is projected at about 60 years, with production expected to peak sometime between 2018 and 2020.
Anadarko Petroleum Corp. Marcellus Shale
Anadarko Petroleum Corp. (NYSE: APC) sells Stake in $1.4 Billion U.S. Gas Deal Marcellus Shale natural gas project to Japanese trading company Mitsui & Co. for $1.4billion.
Mitsui says it'll invest a minimum of $3 billion to help move the estimated $25 billion gas project forward. The goal is to get gas production levels up to 460 million cubic feet a day.
As a result of the agreement, Mitsui will have a 32.5 percent stake in the assets of Anadarko, which is about 15.5 percent of the gas production project.
The lifespan of Marcellus Shale is projected at about 60 years, with production expected to peak sometime between 2018 and 2020.
Anadarko Petroleum Corp. Marcellus Shale
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