Magnum Hunter Resources Inc., Irving, Texas, and Prize Energy Corp. have merged, and now have an enterprise value of approximately $1.2 billion. On a combined basis, the companies have total proved reserves of approximately 1 trillion cu. ft. of gas equivalent. For the nine months ending Sept. 30, 2001, the companies had net daily production of 232 million cu. ft. of gas equivalent. Energen Corp., Birmingham, Ala., plans to acquire properties in the Permian Basin in west Texas from First Permian LLC for $120 million in cash and about $70 million in Energen common stock. The assets are estimated to contain 43 million BOE of reserves with a 27-year life. Chesapeake Energy Corp., Oklahoma City, plans to acquire Canaan Energy Corp., Oklahoma City, for $12 per share in cash for a total deal value of $97 million including assumption of $42 million in debt. CIBC World Markets is financial advisor to Canaan. Canaan produced 7.6 billion cu. ft. of gas equivalent in 2001. Proved reserves, as of Dec. 31, totaled 94.9 billion cu. ft. equivalent. Mission Resources Corp., Houston, sold its interests in properties in the Permian Basin for $11 million in cash. The properties produce approximately 800 BOE per day. The proceeds will pay debt. Nexen Inc., Calgary, acquired an additional 40% interest in the Aspen Field, in 3,150 feet of water on Green Canyon Block 243 in the Gulf of Mexico, from BP Exploration & Production Inc. in exchange for financing BP's share of developing early production from the field. Nexen estimates gross recoverable reserves to be 40 million BOE on a proved basis and up to 70 million BOE on a total resource basis, 15% gas. The early production system (estimated to cost $194 million) includes drilling, completing and tying back two wells to a host platform. BP will operate. Golden Chief Resources Inc., Dallas, plans to acquire properties in Louisiana from Venture Energy Inc., Dallas, for stock. The properties are estimated to contain 1.9 million BOE of reserves. The assets include working interests in more than 150 wells, including the Red River Bull Bayou property, which has 124 producing wells. Contango Oil & Gas Co., Houston, has increased its ownership interest in its core south Texas exploration property for $7 million. The acquired interests include 4.2 billion cu. ft. equivalent of proved developed producing reserves. Fortune Resources Corp., Houston, has acquired a 25% working interest in a Texas onshore exploration program, in approximately 105 Texas Gulf Coast, east Texas and south Texas counties. Fortune will operate 50% of the prospects and its partner, Prime Energy Corp., Stamford, Conn., which has also acquired a 25% working interest, will operate the balance.
Recommended Reading
Deepwater Roundup 2024: Offshore Australasia, Surrounding Areas
2024-04-09 - Projects in Australia and Asia are progressing in part two of Hart Energy's 2024 Deepwater Roundup. Deepwater projects in Vietnam and Australia look to yield high reserves, while a project offshore Malaysia looks to will be developed by an solar panel powered FPSO.
Petrobras to Step Up Exploration with $7.5B in Capex, CEO Says
2024-03-26 - Petrobras CEO Jean Paul Prates said the company is considering exploration opportunities from the Equatorial margin of South America to West Africa.
Exxon Versus Chevron: The Fight for Hess’ 30% Guyana Interest
2024-03-04 - Chevron's plan to buy Hess Corp. and assume a 30% foothold in Guyana has been complicated by Exxon Mobil and CNOOC's claims that they have the right of first refusal for the interest.
Pitts: Heavyweight Battle Brewing Between US Supermajors in South America
2024-04-09 - Exxon Mobil took the first swing in defense of its right of first refusal for Hess' interest in Guyana's Stabroek Block, but Chevron isn't backing down.
Exxon Ups Mammoth Offshore Guyana Production by Another 100,000 bbl/d
2024-04-15 - Exxon Mobil, which took a final investment decision on its Whiptail development on April 12, now estimates its six offshore Guyana projects will average gross production of 1.3 MMbbl/d by 2027.