Post Tagged with: "DJ Basin"

Anadarko Sees Oil Production Growth with Freeport-McMoRan Deepwater Assets

Anadarko Sees Oil Production Growth with Freeport-McMoRan Deepwater Assets

Anadarko closes $2 billion Freeport-McMoRan Gulf of Mexico asset acquisition, ramps up Permian activity, announces GOM oil discoveries Houston-based Anadarko Petroleum Corp. (ticker: APC) announced Thursday that the company has closed on its acquisition of Freeport-McMoRan’s (ticker: FCX) Gulf of Mexico (GOM) assets. The company announced in September that it would pay $2 billion for FCX’s offshore assets, a move Anadarko calculated could deliver $3 billion of incremental cash flow over the next five years, which APC wants to use to fund its onshore projects. APC is now the largest operator of floating production in the deepwater Gulf “As a result of closing this transaction, Anadarko now operates the largest number of floating production facilities in the deepwater Gulf of Mexico, which provides a competitive advantage to leverage this infrastructure into attractive new investment opportunities,” said Anadarko Chairman, President and CEO Al Walker. “This region continues to play a key role in[Read More…]

How Bill Barret’s DJ Margins are 35% Better than Peers

How Bill Barret’s DJ Margins are 35% Better than Peers

Bill Barret is pursuing a number of avenues to achieve its peer-leading margins, the company told Oil & Gas 360® this week Northeast of Denver lies the Denver-Julesburg Basin, a hydrocarbon-rich formation that extends into southeast Wyoming, western Nebraska and Kansas. Since its discovery in 1901, the DJ as it’s commonly referred to, has been an important producing area for the country, and remains competitive today thanks to low drilling and completion costs, long life production reserves and a well-developed pipeline infrastructure. Many of Denver’s top oil and gas names operate in the basin, and one in particular has been realizing higher returns thanks to increased capital efficiencies and longer laterals. Bill Barret Corporation (ticker: BBG) said that the company is now realizing unhedged operating margins 35% greater than their peers in the DJ in a December investor presentation. The company has been able to realize these margins by reducing[Read More…]

EnerCom Conference Presenter Focus: Bill Barrett Corporation

EnerCom Conference Presenter Focus: Bill Barrett Corporation

Bill Barrett Corporation (ticker: BBG) is a Denver based exploration and production company that operates primarily in the Uinta Basin in Utah and the Denver-Julesburg basin in Colorado. Bill Barrett currently operates 182,500 acres in the two basins after streamlining their acreage over the past year. In 2014, the company executed an acreage exchange and sale that added 7,856 net acres to the company’s position in the Northeast Wattenberg and $757 million ($568 million cash), selling the company’s non-core Piceance Basin assets and most of its Powder River Basin position. In December 2015, the company completed a $56 million transaction that included non-core properties in the Uinta and DJ basins. On May 2, 2016, as a continuation of the company’s strategy to focus on crude oil in the DJ basin, BBG announced a $30 million divestiture of its non-core Uinta assets. The company plans to use funds from the divestitures[Read More…]

Colorado Oil Patch: Trouble is Brewing

Colorado Oil Patch: Trouble is Brewing

New Anti-Energy Development Initiatives Registered with Secretary of State Eleven initiatives aimed at Colorado’s oil and gas development were issued on December 22, 2015, marking the start of a new chapter in the Centennial state’s ongoing tug of war between the energy industry and neighboring communities. Eight of the proposed initiatives targeted setbacks for operations, but two of the measures are generating the greatest response from Colorado’s oil and gas proponents. One calls for the outright ban of hydraulic fracturing, while the other aims to shift regulations to local authority rather than that of the state. Colorado’s booming population and the simultaneous emergence of the Denver-Julesburg Basin has pressed the two elements of the state’s economy together, resulting in vigorous political debates about the energy industry’s drilling practices. Five different Colorado communities passed hydraulic fracturing bans in the past few years, but state courts have since invalidated three of the bans.[Read More…]

Encana DJ Basin Sale Expected to Close 2Q 2016

Encana DJ Basin Sale Expected to Close 2Q 2016

CALGARY, AB–(Marketwired – December 21, 2015) – (TSX: ECA) (NYSE: ECA) Encana Corporation announced today that its wholly-owned subsidiary, Encana Oil & Gas (USA) Inc., expects the previously announced sale of its DJ Basin assets to Crestone Peak Resources, 95 percent owned by Canada Pension Plan Investment Board and five percent by The Broe Group, to close in the second quarter of 2016. Encana and Crestone Peak Resources remain committed to closing this transaction and Crestone Peak Resources has increased its deposit. Material terms of the transaction, including the purchase price, remain unchanged. The sale has an effective date of April 1, 2015 and includes all of Encana’s DJ Basin acreage in Colorado, comprising 51,000 net acres. Encana Corporation Encana is a leading North American energy producer that is focused on developing its strong portfolio of resource plays, held directly and indirectly through its subsidiaries, producing natural gas, oil and[Read More…]

Anadarko Petroleum Increases Q4’15 Oil Sales Guidance by 5%

Anadarko Petroleum Increases Q4’15 Oil Sales Guidance by 5%

Receives Near-term Debt Relief by Extending Credit Maturities Anadarko Petroleum (ticker: APC) provided a fourth quarter update prior to the opening of the market on December 17, 2015, highlighting news from its drilling program and adjustments to its credit facilities. The Woodlands-based company announced the renewal of its $2 billion, 364-day credit facility to a new maturity in January 2017, along with extending the maturity of its $3 billion unsecured revolving credit facility to January 2021. Both instances represent extensions of one calendar year compared to previous arrangements, and there were no changes in pricing or covenants to either extension. Anadarko is one of the largest E&Ps based in North America, but its leverage has become more of a concern in the face of the commodity downturn. Management has not used the word “debt” in either its last two quarterly conference calls, even though the company maintains roughly $7 billion[Read More…]

Nighthawk Targets Waterfloods in the DJ

Nighthawk Targets Waterfloods in the DJ

Nighthawk provides an update on its drilling program in the DJ Basin Nighthawk Energy (ticker: HAWK.L) released an operational update on its drilling program in the Denver-Julesburg (DJ) Basin. According to the press release from Nighthawk, the company is currently in the process of filing for approval of its planned Arikaree Water Flood Project with the Colorado Oil and Gas Conservation Commission (COGCC). Nighthawk anticipates that the program will increase both ultimate recovery of oil (EUR) from the field as well as accelerate year-by-year production volumes. The original estimated Oil in Place (OIP) for this field was approximately 16 million barrels, primarily in the Spergen zone, with estimated ultimate recovery rates for booking of reserves at approximately 17%. Based upon the analysis of the project and the completion of flow models, Nighthawk estimate that the OIP to potentially be up to 16.6 million barrels with estimated ultimate recovery expected to[Read More…]

Noble Energy Announces IPO for Midstream Assets

Noble Energy Announces IPO for Midstream Assets

Noble plans to form an MLP out of its midstream assets in the DJ Basin Houston-based Noble Energy (ticker: NBL) announced today that its wholly owned subsidiary Noble Midstream Partners has filed with the U.S. Securities and Exchange Commission (SEC) to perform an initial public offering of common units for a master limited partnership formed from the company’s DJ Basin crude oil, natural gas and water-related midstream assets. The new MLP will list on the New York Stock Exchange under the ticker NBLX, according to the Noble’s press release. Noble holds more than 500,000 net acres in northern Colorado’s DJ Basin, with the company’s largest onshore field located in the Wattenberg. According to Noble, production from the DJ represents over a third of the company’s production, which according to EnerCom’s E&P Weekly, was 307 MBOEPD over the trailing twelve months. The company has invested approximately $600 million in DJ midstream[Read More…]

October 22, 2015 - 6:15 pm Midstream, MLPs, Oil and Gas 360 Articles
Nighthawk Energy Restarts Drilling Program with Margin Improvements in Tow

Nighthawk Energy Restarts Drilling Program with Margin Improvements in Tow

The drilling program of Nighthawk Energy plc (ticker: HAWK.L) is up and running again, and new arrangements in its marketing firm agreements are expected to provide increased upside in the second half of 2015. The plan to drill the first of six gross wells (three net) commenced on schedule in September, as part of its joint development agreement with Cascade Petroleum. Drilling operations have already begun on the second of four wells scheduled to be drilled before year-end 2015, and preliminary 30-day production results from its first well is expected within the month of October. Margins on the Rise As mentioned in previous reports, Nighthawk’s low drilling costs (about $1.5 million per well) and estimated ultimate recoveries of 286 MBOE gross (234 MBOE net) in the Denver-Julesburg Basin provide favorable economics even in a constrained environment. Internal rates of return are estimated at 48% in a $40/barrel oil world, according[Read More…]

New Oil and Gas Codes in the DJ Basin

New Oil and Gas Codes in the DJ Basin

Erie, Colorado town board approves new code for operators The town of Erie, Colorado, passed a new code for in-town oil and gas operations, affecting major oil and gas companies like Anadarko (ticker: APC), Noble Energy (ticker: NE), Encana (ticker: ECA) and Synergy Resources Corp (ticker: SYRG). The new code creates two types of review processes for companies looking to drill near Erie; one with stricter rules, but a faster permitting process, and a second that requires companies to meet state standards, but with a more arduous review process. The first option restrictions against noise, and setback rules, that exceed the standards of the state of Colorado, but in exchange, Erie has agreed to streamline the permitting process for operators who voluntarily choose the stricter rules. The second option allows operators to meet standards based off state regulations, but will require public hearings and approval from the town’s Planning Commission[Read More…]

Nighthawk Energy Readies Drilling Program, Armed with Financing and Joint Ventures

Nighthawk Energy Readies Drilling Program, Armed with Financing and Joint Ventures

Nighthawk Energy (ticker: HAWK.L), an exploration and production company focused on conventional operations in the Denver-Julesburg Basin, is preparing to ramp up its drilling program after finalizing a series of financing and joint development agreements. Capital in Place to Begin Drilling in Sept. 2015 The company completed a convertible loan issue in August, raising $10 million to restart operations within the current month of September. Westhouse Securities Limited in the United Kingdom issued a research report on Nighthawk in which it forecasts volumes could increase to 3,626 BOPD by 2017, up from its estimated 2015 volumes of 1,959. In the same time frame, revenues are projected to reach $71.4 million and EBITDA to exceed $46.6 million. The forecasts are respective increases of 174% and 260% compared to 2015 estimates. Joint Venture Partner Nighthawk established two joint ventures with Cascade Petroleum to expedite its drilling programs. Per terms of the agreement[Read More…]

Great Western Oil & Gas Continues Acquisitions in the DJ Basin

Great Western Oil & Gas Continues Acquisitions in the DJ Basin

Great Western purchased 6,000 acres in the Wattenberg Field Great Western Petroleum, a subsidiary of Great Western Oil & Gas Company, an affiliate of The Broe Group, purchased approximately 6,000 acres and eight producing wells in the Wattenberg Field, according to a press release today. This purchase marks the second acquisition the company has made in the DJ Basin so far this year despite low oil prices. The company expects the new acreage will allow them to drill up to 100 new horizontal wells in the Niobrara and Codell formations. The purchased closed June 1, but the production is effective back to January 1. The price and seller were not disclosed. The company’s other acquisition, made in January, was for 14 producing wells and 816 net leasehold acres in the Wattenberg Field. “The Broe Group sees the current market environment as an excellent opportunity to expand our oil and gas[Read More…]

Fifth Creek Energy Prepares to Hit the Accelerator with NGP Funding

Fifth Creek Energy Prepares to Hit the Accelerator with NGP Funding

Private E&P is Evaluating $500 Million to $1.5 Billion Opportunities in the D-J, Permian and Utica Exclusive Interview with Oil & Gas 360 Fifth Creek Energy is a private E&P company, formed by Michael Starzer and Patrick Graham, the founders of Bonanza Creek Energy (ticker: BCEI) and its predecessor companies. Last week, Fifth Creek and Natural Gas Partners (NGP) announced a private equity funding commitment from NGP Natural Resources XI and other investors. Fifth Creek is one of the early investments in NGP’s eleventh fund, NGP Natural Resources XI, L.P., which closed in January with total commitments of $5.325 billion, according to NGP. Oil & Gas 360® spoke with Pat Graham in this exclusive interview in which Mr. Graham details the formation of Fifth Creek Energy, its business and growth strategy, its recently announced private equity partnership with NGP and the target areas being prioritized by Fifth Creek. OIL &[Read More…]

Synergy Resources: No Fear of Oil Prices

Synergy Resources: No Fear of Oil Prices

On Wednesday, OPEC’s secretary-general Abdalla Salem el-Badri told an energy conference that oil price weakness would likely hit output of shale oil hard, the Wall Street Journal reported. “At this price, 50% of tight oil will be out of the market,” el-Badri said. However, established producers in Colorado’s prolific Wattenberg field seem more likely to ignore OPEC and stick to the business of producing oil from the liquids-rich Niobrara and Codell shales in the DJ Basin. Yesterday, Synergy Resources (ticker: SYRG), Noble Energy (ticker: NBL) and Anadarko Petroleum (ticker: APC) all reported growing production from the Wattenberg Field. Synergy Doubles Wattenberg Production Synergy Resources’ net oil and natural gas production of 542,207 BOE (all from the Wattenberg field) more than doubled in its fiscal fourth quarter which ended Aug. 31, 2014, compared to its Q413 production. Synergy averaged 5,894 BOEPD versus 2,479 BOEPD, respectively, aided by bringing online  31 gross new[Read More…]

Bill Barrett Corp. Simplifies Rocky Mountain Portfolio in $757 Million Deal

Bill Barrett Corp. Simplifies Rocky Mountain Portfolio in $757 Million Deal

Company will Operate in Only 2 Basins: DJ and Uinta; Deal Eliminates 57% of BBG’s Net Debt Bill Barrett Corporation (ticker: BBG), an exploration and production company focused on the Rocky Mountain region, has shifted its asset position in a deal totaling $757 million. On September 16, 2014, the company announced the sale of the majority of its acreage in the Powder River Basin, along with the remainder of its Piceance Basin acreage, for cash and acreage in the Northeast Wattenberg. The divested assets provided 33% of BBG’s field level cash flow in the most recent quarter. The transaction is expected to close by the end of Q3’14. In the news release, the company said it is “diligently” working to sell its remaining stake in the Powder River Basin, which includes 17,649 net acres and 170 BOEPD based on Q2’14 results. The Piceance Basin assets are being purchased by Vanguard[Read More…]

September 16, 2014 - 6:22 pm Finance, Oil and Gas 360 Articles, Oilfield Services
Booming D-J Has Voters, Politicians, Oil & Gas Companies Bracing for New Regulations

Booming D-J Has Voters, Politicians, Oil & Gas Companies Bracing for New Regulations

Public sentiment about hydraulic fracture stimulation (fracing) and other aspects of oil and gas exploration and production in Colorado has generated a lot of sentiment in recent months. A variety of Colorado municipalities want to institute local rules, ballot initiatives have been proposed, signatures are being collected, Congressman Jared Polis and Governor John Hickenlooper have weighed in, some local bans on hydraulic fracture stimulation have passed and one (Loveland, Colo.) was recently overturned in a public referendum. The area under the microscope is northern Colorado’s Denver-Julesburg (D-J) Basin. The D-J Basin is home to the Wattenburg Field, one of the largest natural gas deposits in the U.S., and the Niobrara shale play. “The Niobrara … has emerged as one of the country’s most significant shale plays, covering 8,000 square miles in the D-J Basin with an estimated 4 to 10 billion BOE of recoverable resource,” Stifel Nicolaus and Company said[Read More…]

June 30, 2014 - 4:36 pm Earnings, Fracing, Oil and Gas 360 Articles, Regulatory
Samson Oil & Gas CEO Terry Barr Discusses Ongoing North Stockyard Project, DJ Basin Exploratory Well

Samson Oil & Gas CEO Terry Barr Discusses Ongoing North Stockyard Project, DJ Basin Exploratory Well

Samson Oil & Gas Limited (ticker: SSN) is an independent oil and gas company with dual listings on the Australian ASX and the NYSE. All of the company’s assets and operations are based in the United States, with a current emphasis on the Bakken oil shale play in North Dakota. Samson Oil & Gas is scheduled to present at EnerCom’s London Oil & Gas Conference™ 6 on June 10, 2014. Samson Overview SSN is unique for a small-cap E&P, having a well-diversified portfolio consisting of seven projects in five basins, ranging from pure exploration to tried-and-true development drilling. The company has employed farm-ins and acreage swaps to both build its portfolio and mitigate risk. “Operational control for Samson is good, but it’s not mandatory,” said Terry Barr, Chief Executive Officer of Samson, in an exclusive interview with OAG360. “Growth is more important.” In the near-term, the source of Samson’s growth[Read More…]