EGPI Negotiating for East Texas, La. Properties

- EGPI Negotiating for East Texas, La. Properties

Tuesday, August 30, 2011
EGPI Firecreek Inc.

EGPI Firecreek, Inc. (EGPI) is in the final stages of negotiations for a binding agreement to acquire multiple leases for oil and gas production currently servicing East Texas and Louisiana through the current leaseholder (The company).

The company has been in business for over 15 years as an oil and gas production company with approximately 10 to 12 producing wells at depths of 2,200 to 2,400 feet. They currently employ approximately 18 people and own all servicing equipment to maintain its well operations.

Negotiations for the acquisition have been ongoing and are estimated to include acquiring 100% working interests and 80% of the corresponding net revenues of the properties which encompass approximately 2000 acres in East Texas and Louisiana.

EGPI’s Board of Directors have given permission to move into the final stages of negotiations in order to execute a formal binding agreement.

Dennis Alexander, EGPI's CEO, stated, "We believe this target acquisition meets our criteria in assisting EGPI’s continued growth plans for the integration of assets and revenue stream for our Oil & Gas division. We are working diligently in order to finalize this agreement within a reasonably short period of time.”

About EGPI Firecreek, Inc.

EGPI Firecreek, Inc.'s business and acquisition strategy is focused on oil and gas production with an emphasis on acquiring existing fields with proven reserves, the rehabilitation of potentially high throughput oilfields, resource properties and inventories, through its wholly owned subsidiary Energy Producers, Inc. (Energy Producers) and for oil and gas servicing business through its wholly owned subsidiary Chanwest Resources, LLC. EGPI Firecreek, Inc. is also looking to expand into alternative energy sources as well as industries in the energy field.

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Penn Virginia to Sell Arkoma Basin Properties

- Penn Virginia to Sell Arkoma Basin Properties

Friday, July 29, 2011
Penn Virginia Corp.

Penn Virginia has entered into a definitive agreement to sell substantially all of its Arkoma Basin properties, together with certain other Mid-Continent properties, to an undisclosed buyer for $30.5 million in cash. This sale is expected to close by the end of August and is subject to customary closing conditions and purchase price adjustments.

The properties being sold include the Hartshorne coalbed methane and Woodford Shale formations, as well as a number of conventional natural gas play types. The properties are currently producing, on a net basis, approximately 7.8 million cubic feet of natural gas equivalent (MMcfe) per day, approximately 97 percent of which is natural gas. As a result of the divestiture, PVA's 2011 production will decrease by an estimated 0.9 billion cubic feet of natural gas equivalent (Bcfe). Estimated proved reserves associated with the divested properties, as determined by PVA's third party engineers at year-end 2010, were 42.5 Bcfe, 78 percent of which were proved developed. PVA intends to use the net proceeds from this sale to fund, in part, its 2011 capital expenditure plan, as well as for general corporate purposes.

RBC Richardson Barr served as PVA's financial advisor in connection with the transaction.

H. Baird Whitehead, President and Chief Executive Officer, stated, "Our strategy to shift the focus of our capital spending to oil and natural gas liquids made our Arkoma and other Mid-Continent assets appropriate divestiture candidates. The increase in liquidity generated by the sale of these properties will give us further flexibility to help fund investment in our liquids-rich plays, such as the Eagle Ford Shale, that generate higher rates of return and also improve our growth and profitability going forward."

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Linn to Acquire Texas Panhandle, Okla. Properties for $220M

Linn to Acquire Texas Panhandle, Okla. Properties for $220M

Monday, May 09, 2011
LINN Energy, LLC

LINN Energy, LLC announced Monday that it signed a definitive purchase agreement with Panther Energy Company, LLC and Red Willow Mid-Continent, LLC to acquire 40 percent of their oil and natural gas properties located in Ochiltree and Lipscomb counties, Texas and Ellis County, Oklahoma for a contract price of $220 million, subject to closing conditions. The Company anticipates the acquisition will close on or before June 1, 2011, and will be financed with net proceeds from the recently announced senior notes offering.

"The acquisition of these properties enhances LINN's overall position in the Texas Panhandle area, and marks our entry into the liquids-rich window of the horizontal Cleveland play in the Anadarko Basin," said Mark E. Ellis, President and Chief Executive Officer of LINN Energy. "Partnering with Panther will align us with an experienced and efficient operator that has been active and successful in this area for several years. This acquisition provides high rate-of-return projects and we expect it to be immediately accretive to our unitholders."

Bob Zahradnik, Chairman of Panther Energy, added, "We have created significant value in the Anadarko Basin, and we look forward to developing this area with a solid partner like LINN Energy. This divestiture is a tactical transaction to fund the substantial capital demands of our successful programs in the deepwater Gulf of Mexico and West Texas."

Significant characteristics of the assets are:

• Net production of approximately 2,700 barrels of oil equivalent per day from approximately 170 producing wells;
• Proved reserves of approximately 10 million barrels of oil equivalent (45 percent oil, 37 percent proved developed);
• Total acreage position of 140,000 gross (44,000 net) acres; and
• More than 165 proved low-risk infill drilling locations.

LINN Energy's mission is to acquire, develop and maximize cash flow from a growing portfolio of long-life oil and natural gas assets. LINN Energy is a top-20 U.S. independent oil and natural gas development company, with approximately 2.8 Tcfe of proved reserves in producing U.S. basins as of Dec. 31, 2010 (pro forma for pending and closed 2011 acquisitions).

The Southern Ute Growth Fund is the majority owner and funding partner of Panther Energy, LLC and the parent company of Red Willow. Panther and Red Willow have E&P and midstream operations throughout the Rockies, Mid-Continent, Permian Basin, West Texas and the Gulf of Mexico. The Growth Fund oversees the business of the Southern Ute Indian Tribe.

Scotia Waterous (USA) acted as financial advisor to Panther Energy Company, LLC and Red Willow Mid-Continent, LLC in this transaction.

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KKR to Buy Barnett Shale Properties from Carrizo

KKR to Buy Barnett Shale Properties from Carrizo

Wednesday, April 27, 2011
Kohlberg Kravis Roberts & Co. L.P.

Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, KKR) announced that KKR has entered into a definitive agreement to acquire certain Barnett Shale properties from Carrizo O&G for $104 million. The transaction, which is expected to close in mid-May, is being made through KKR Natural Resources (KNR), KKR's partnership with Premier Natural to pursue investments in North American oil and gas properties. The transaction is the third investment made by KNR and, following the acquisition of certain properties from ConocoPhillips in January, the second investment made by KNR in the Barnett Shale.

Located in North Central Texas and producing out of the Barnett Shale formation, the Assets contain 122.4bcfe of total net proved reserves (based on a third party estimate) and comprise 75 gross (58.5 net) wells currently producing at a gross rate of 15.7mmcfe/d (8.3 mmcfe/d net).

"With their significant proved developed producing reserve component in a reservoir we know well through our current operations in the region, the assets are a great fit for our KKR Natural Resources platform. We are pleased to add these assets to our oil and gas portfolio and remain excited about the opportunity to grow the KNR platform through the acquisition of additional oil and gas properties in North America," said Jonathan Smidt, a Member at KKR and a senior member of KKR's Energy and Infrastructure business.

KKR announced its partnership with Premier in February, 2010. Founded in June 2006 by former executives of Vintage Petroleum, Inc., Premier currently operates a portfolio of assets located in the Barnett Shale, the Texas Gulf Coast and the Permian Basin and has experience operating assets in most of the major producing basins in the United States.

Nextraction to Develop Viking, Bakken Oil Properties

Nextraction to Develop Viking, Bakken Oil Properties

Tuesday, April 19, 2011
Nextraction Energy Corp.

Nextraction announced its 2011 plans to develop its light oil projects in Alberta and Montana. The development will include drilling two horizontal wells, the re-completions of existing wells in the Provost Field in Alberta, Canada, acquiring 22 miles of three dimensional (3-D) seismic data and the drilling of the initial well on the Saturn acreage located in the Williston Basin of eastern Montana, USA.

In addition, the Company reported completion of its initial well on the Pinedale Anticline produced at an average rate of 104 barrels of oil equivalent (BOE) while continuing to flow back frac fluids at year-end 2010.

Nextraction's President, Mark S. Dolar stated, "This is a very exciting time for Nextraction. We achieved our goal of establishing production and proving reserves at our Pinedale property and look to build on that base as we plan to increase daily production rates at Provost by drilling new horizontal wells and re-completing existing wells. We will follow the Provost drilling with development on the Saturn acreage. The Provost Field is known for short term payouts and impressive internal rates of return while Saturn contains potential for large scale, long life development." Mr. Dolar continued, "We remain debt free and we have the opportunity to generate significant cash flow and increase our net reserves while maintaining our current share structure."

Plans for development are as follows:

Provost Pool - Alberta, Canada

The Company plans to drill two, 810 meter Viking formation wells, off-setting existing wells with cumulative production of 665,000 barrels of oil. The wells are being licensed to drill horizontal legs of at least 900 meters in length each. The Company also plans to re-complete existing wells on the property to test a zone in the Viking formation that has yet to be tested by implementing new fracing technologies to the zone. Estimated cost for the project is $3 million (net to the Company).

The Company is a 50% interest owner in the project, but receives 100% of the revenue until it receives $1.4 million in production revenue or re-payment (as a loan to its joint venture partner). The Company will fund and operate the drilling of the first two development wells on the property and will receive 50% of the revenue from production. For all subsequent operations, the Company participates as a 50% interest owner.

Saturn Project - Montana, USA

The Company has completed permitting a 22 square mile area for three dimensional (3-D) seismic work and plans to acquire the data in the second quarter. A well is planned to be drilled based on interpretation of the seismic testing on the 35 section property. The Company's expected expenditures for the Saturn seismic program is $900,000 for the 22 square mile acquisition (a 15 square mile program was previously estimated to cost $500,000-$650,000) and estimated cost to drill, core and complete the 2,350 meter test well is $1.2 million.

The Company will look to develop the project as a multi-well program based on appropriate test well data. The properties are being developed under terms of a Seismic Option and Farm-out Agreement. Under the terms of the agreement, the Company will operate the project and fund 75% of the data collection costs for the seismic program. Prior to commencing the first core test well, its partner will have the option to participate as a 25% interest owner. Should the partner participate in the drilling of the well, the before payout interest will be shared 75% by Nextraction and 25% by the partner, after payout interests will be shared 52.5% by Nextraction and 47.5% by the partner. If the partner does not participate in the well, Nextraction will own 100% before payout and 70% after payout.

Pinedale - Wyoming, USA

After an initial 24 hour flow rate of 3 million cubic feet of gas per day from the upper 400 feet of net sand in the Lance and Tertiary formations from the Company's 100% owned Noble 6-24 well, the well produced and flared 8,074 MCFG, 28 Barrels of Condensate and 166 barrels of water/frac fluids from 11 days of production in December, 2010.

The Company became the operator of the project on February 1, 2011. In assuming operations, the Company will have the ability to develop the properties in a more efficient and cost effective manner and assist in lifting fluids from the well. The Company placed an electric compressor on location in mid-March to assist in lifting fluids that are known to produce with the natural gas and condensate on the Anticline. Nextraction predicts that with this compressor, daily production should average in the range of 800-1,000 mcfgpd and 20 barrels of condensate from the unconventional tight sands. Without compressor assistance, the well averages 400 mcfgpd and 8 barrels of condensate. The producing intervals in the well remain over-pressured, which indicates that the well should perform at the anticipated rates once completion fluids are drawn from the well.

To further enhance future drilling locations, the Company has also acquired 3-D seismic and plans to obtain 2-D seismic on the property in this year.

Mr. Dolar commented, "By completing the first well in Pinedale, we have taken great steps toward development of this project. As our knowledge of Pinedale increased, we realized that the use of artificial lift is essential for removing associated water production that flows with the gas and condensate. The decision to place an electric compressor on site to assist in drawing down the water levels and increase gas production from the well also lessens our carbon footprint and assists in our compliance with clean air requirements. As seismic is completed on Pinedale, we will determine the next strategy for development to enhance value to the Company."

Nextraction to Develop Viking, Bakken Oil Properties

Nextraction to Develop Viking, Bakken Oil Properties

Tuesday, April 19, 2011
Nextraction Energy Corp.

Nextraction announced its 2011 plans to develop its light oil projects in Alberta and Montana. The development will include drilling two horizontal wells, the re-completions of existing wells in the Provost Field in Alberta, Canada, acquiring 22 miles of three dimensional (3-D) seismic data and the drilling of the initial well on the Saturn acreage located in the Williston Basin of eastern Montana, USA.

In addition, the Company reported completion of its initial well on the Pinedale Anticline produced at an average rate of 104 barrels of oil equivalent (BOE) while continuing to flow back frac fluids at year-end 2010.

Nextraction's President, Mark S. Dolar stated, "This is a very exciting time for Nextraction. We achieved our goal of establishing production and proving reserves at our Pinedale property and look to build on that base as we plan to increase daily production rates at Provost by drilling new horizontal wells and re-completing existing wells. We will follow the Provost drilling with development on the Saturn acreage. The Provost Field is known for short term payouts and impressive internal rates of return while Saturn contains potential for large scale, long life development." Mr. Dolar continued, "We remain debt free and we have the opportunity to generate significant cash flow and increase our net reserves while maintaining our current share structure."

Plans for development are as follows:

Provost Pool - Alberta, Canada

The Company plans to drill two, 810 meter Viking formation wells, off-setting existing wells with cumulative production of 665,000 barrels of oil. The wells are being licensed to drill horizontal legs of at least 900 meters in length each. The Company also plans to re-complete existing wells on the property to test a zone in the Viking formation that has yet to be tested by implementing new fracing technologies to the zone. Estimated cost for the project is $3 million (net to the Company).

The Company is a 50% interest owner in the project, but receives 100% of the revenue until it receives $1.4 million in production revenue or re-payment (as a loan to its joint venture partner). The Company will fund and operate the drilling of the first two development wells on the property and will receive 50% of the revenue from production. For all subsequent operations, the Company participates as a 50% interest owner.

Saturn Project - Montana, USA

The Company has completed permitting a 22 square mile area for three dimensional (3-D) seismic work and plans to acquire the data in the second quarter. A well is planned to be drilled based on interpretation of the seismic testing on the 35 section property. The Company's expected expenditures for the Saturn seismic program is $900,000 for the 22 square mile acquisition (a 15 square mile program was previously estimated to cost $500,000-$650,000) and estimated cost to drill, core and complete the 2,350 meter test well is $1.2 million.

The Company will look to develop the project as a multi-well program based on appropriate test well data. The properties are being developed under terms of a Seismic Option and Farm-out Agreement. Under the terms of the agreement, the Company will operate the project and fund 75% of the data collection costs for the seismic program. Prior to commencing the first core test well, its partner will have the option to participate as a 25% interest owner. Should the partner participate in the drilling of the well, the before payout interest will be shared 75% by Nextraction and 25% by the partner, after payout interests will be shared 52.5% by Nextraction and 47.5% by the partner. If the partner does not participate in the well, Nextraction will own 100% before payout and 70% after payout.

Pinedale - Wyoming, USA

After an initial 24 hour flow rate of 3 million cubic feet of gas per day from the upper 400 feet of net sand in the Lance and Tertiary formations from the Company's 100% owned Noble 6-24 well, the well produced and flared 8,074 MCFG, 28 Barrels of Condensate and 166 barrels of water/frac fluids from 11 days of production in December, 2010.

The Company became the operator of the project on February 1, 2011. In assuming operations, the Company will have the ability to develop the properties in a more efficient and cost effective manner and assist in lifting fluids from the well. The Company placed an electric compressor on location in mid-March to assist in lifting fluids that are known to produce with the natural gas and condensate on the Anticline. Nextraction predicts that with this compressor, daily production should average in the range of 800-1,000 mcfgpd and 20 barrels of condensate from the unconventional tight sands. Without compressor assistance, the well averages 400 mcfgpd and 8 barrels of condensate. The producing intervals in the well remain over-pressured, which indicates that the well should perform at the anticipated rates once completion fluids are drawn from the well.

To further enhance future drilling locations, the Company has also acquired 3-D seismic and plans to obtain 2-D seismic on the property in this year.

Mr. Dolar commented, "By completing the first well in Pinedale, we have taken great steps toward development of this project. As our knowledge of Pinedale increased, we realized that the use of artificial lift is essential for removing associated water production that flows with the gas and condensate. The decision to place an electric compressor on site to assist in drawing down the water levels and increase gas production from the well also lessens our carbon footprint and assists in our compliance with clean air requirements. As seismic is completed on Pinedale, we will determine the next strategy for development to enhance value to the Company."

Cos Lining Up Leases for Marcellus Shale Properties

Cos Lining Up Leases for Marcellus Shale Properties

Monday, April 11, 2011
Knight Ridder/Tribune Business News
by Bill Utterback, Beaver County Times, Pa.

The race to find natural gas in the Marcellus shale shelf below Beaver County has become a paper chase.

Since Jan. 1, nearly 1,100 properties have been leased by two gas-producing firms, according to the Beaver County Recorder of Deeds records.

Only one new well has been drilled in 2011, and only three well-drilling permits have been issued, according to state Department of Environmental Protection records.

Overall, Beaver County has produced nearly 1,800 leases with natural gas firms and two operating wells, one struck in Marion Township in 2009 and the other struck near Lime Kiln Road in South Beaver Township in January.

The ratio of wells to leases could soon increase.

"There's no question the natural gas is there ... and the extractable amount may be greater than the original estimates," Kent Moors, a gas and energy analyst with Duquesne University's Institute for Energy and the Environment, said.

"They'll come to get the gas," Thomas Anderson, a geologist and natural gas specialist with the University of Pittsburgh. "They may not get to all those properties, but they get to a lot of them."

Moors said that "information" and a depressed natural gas market may have temporarily quieted production in Beaver County.

"There are a couple of things going on ... there's been a difference of opinion as to where the sweet spots are," Moor said, adding that as more information about Pennsylvania's potential is gathered, more firms are transferring resources from other parts of the country to Pennsylvania.

The Chesapeake Appalachia firm, headquartered in Tulsa, now holds lease agreements for more than 1,300 Beaver County properties, more than 1,000 of them acquired since Jan. 1, more than 75 since April 1.

In 2011, Chesapeake has entered lease agreements for property in Big Beaver, Brighton Township, Center Township, Chippewa Township, Darlington Township, Greene Township, Hanover Township, Hookstown, Industry and Potter Township, according to the recorder of deeds records.

Range Resources, based in Fort Worth, has nearly 500 lease agreements in Beaver County, 57 of them acquired in 2011. Range Resources has signed property deals in Big Beaver, Brighton Township, Daugherty Township, Franklin Township, Hanover Township, Independence Township, Marion Township, Raccoon Township and New Sewickley Township in 2011.

Together, the two firms have reserved properties in 17 Beaver County communities in less than four months.

Range Resources has acquired leases on 153 properties in Allegheny County since Jan. 1, including 47 in Findlay Township, 41 in North Fayette Township and 25 in Moon Township.

"It could be that (firms) have been busy (drilling) in other areas. They have their hands full right now," Anderson said. "They're doing a ton of drilling in Washington County right now, but that doesn't mean that the natural gas in Beaver County isn't very, very attractive to them."

Magnum Acquires Marcellus O&G Properties

Magnum Acquires Marcellus O&G Properties

Friday, April 08, 2011

Magnum Hunter Resources Corp.

Magnum announced that its wholly-owned subsidiary, Triad Hunter, has executed a definitive agreement and closed on the acquisition of oil and gas properties and leasehold mineral interests located in Wetzel County, West Virginia (the "Marcellus Assets") for a cash purchase price of $20.0 Million.

Magnum Hunter funded the purchase price consideration with existing working capital. Aggregate consideration is subject to certain post closing adjustments based on title, indemnities and other specific matters. The seller is a privately-held independent E&P company.

Mr. Gary C. Evans, Chairman and Chief Executive Officer of Magnum Hunter, commented, "Today's acquisition announcement represents another 'bolt on' acquisition in one of our Company's three liquids rich unconventional resource play regions.

We consider the Marcellus Assets acquired to be accretive to shareholders and will further expand our footprint in West Virginia.

Triad Hunter previously acquired the 50% operated interest associated with these properties in December 2010. Beginning with our entry into the Appalachia with our first acquisition (Triad Hunter) in February 2010, the Company's overall presence in the Appalachian Basin has been steadily increasing.

We plan to continue to be one of the most active drillers in northwestern West Virginia. Furthermore, we have made the financial commitments in the midstream area of gathering and processing to realize the greatest value possible from each molecule of natural gas produced. The Marcellus Assets acquired with this transaction are within close proximity to our Eureka Hunter pipeline system and planned expansions to this system currently in progress."

Morumbi Closes Rockwell Acquisition

Morumbi Closes Rockwell Acquisition

Friday, March 25, 2011
Morumbi O&G Inc.

Morumbi has acquired all of the issued and outstanding share capital of Rockwell Exploration. In connection with the acquisition of Rockwell, Morumbi has paid cash consideration of US $582,000 in settlement of certain debts of Rockwell and has also issued an aggregate of 4,000,000 common shares of Morumbi to Rockwell's ten shareholders. Rockwell's business to date has been focused on sourcing and developing exploration opportunities in Papua New Guinea ("PNG") with a focus on oil and gas exploration opportunities.

As a part of the acquisition, Morumbi has also entered into a consulting agreement with Mr. Lindsay Semple providing for Mr. Semple's services on an exclusive basis to build an exploration platform for Morumbi in PNG in order to take advantage of the opportunities management believes to be present there. Morumbi has also entered into a consulting agreement with Mr. Philip Rali a PNG national and an expert in Melanesian customs, who has worked as a team with Mr. Semple for the past 13 years focusing on the acquisition and development of oil and gas properties. Of the 4,000,000 Morumbi common shares issued in connection with the acquisition, 1,800,000 are being held in escrow and will be released in three equal tranches over a period of 18 months.

Tom Loch the President of Morumbi, "We view this as an opportunity to participate in one of the most attractive under explored resource areas in the world today. PNG is the home to some of the world's great mines including Porgera, OK Tedi, and Lihir and the recently announced 35 million ounce equivalent gold/copper/silver resource at Wafi-Golpu by Harmony Gold Mining Limited. Further, Exxon Mobil's $15 billion liquefied natural gas project currently under construction in the highlands is set to commercialize extensive stranded natural gas reserves. PNG is a stable Commonwealth country with attractive fiscal resource policies."