BHP Billiton Ltd. (NYSE: BHP) said July 26 it landed buyers for its treasure chest of U.S. shale assets with two separate transactions worth a total of $10.8 billion cash.
The largest of the two transactions is the purchase by BP Plc (NYSE: BP) of BHP’s Delaware Basin, Eagle Ford and Haynesville assets for $10.5 billion cash. Separately, an affiliate of privately-held Merit Energy Co. agreed to acquire BHP’s remaining U.S. onshore oil and gas assets in Arkansas’ Fayetteville Shale for $300 million.
BHP will continue to operate the assets until completion of the deals, which it expects to occur by the end of October. The transactions will have an effective date of July 1.
So for those landowners that did not like dealing with the beaurocracy of BHP, sometimes you reap what you sow. My condolences.
Acreage count in the Haynesville for this sale is just under 200K acres. From a recovery standpoint, BP seems to know how to drill and complete the new Haynesville formula wells. Their position in ETX has had some monsters completed recently. Time will tell if they can bring this across the state line or if it is a rock thing.
You are right about East Texas Jay. It appears most of the wells include a large Blackstone position. Kathy
Good rig pics, are all thirty included in the sale to BP?
Underperforming assets? https://www.oilandgasinvestor.com/bhp-billiton-says-us-shale-exit-g...
The perception of "under performance" regarding BHP's Haynesville assets may very well be related that the fact that the company stopped drilling wells for two and a half years, 2015 - mid-2017.
And I'm not too sure that very many of BHP's wells drilled since mid-2017 have actually been frac'ed and
turned to sales until very recently.
Hard to tell looking at SONRIS. The staff is so far behind that it now takes 6 to 8 months to get an LUW code. And without an LUW code, no reported production.
The state doesn't provide monthly per well volume reports for unitized wells. Only cumulative unit production. Only in the case of a single unit well is per well production available.
I have a number of clients who have been waiting on first royalty from new wells drilled in the last quarter of 2017 and the first quarter of 2018. And I talk to or email the OOC staff in charge of issuing LUW Code numbers.
Ironic: There are 6 - 8 sections of HA rights in the south sections of 12N 15W and north sections of 11N 15W that BP owned years ago and sold to Comstock. No idea if the sections they had are as good as or better, or worse that the one they just bought from BHP.
12N-15W is good rock, 11N - 15W not so much. The early wells drilled in 11N-15W, mostly Chesapeake, produced 2 to 4 million mcf Initial Production while the same well designs in other areas produced 3 or 4 times the volume. This appears to be a porosity issue as indicated on a number of play maps. Lower porosity, less Gas In Place (GIP). There are some HC wells planned that span from the lower sections of 12N into the top sections of 11N that may provide some idea of whether the longer laterals and high intensity completions can make for economic wells.
Comstock has an upcoming hearing for a CUL for 35 12 15 and 2 11 15. will be interesting to see how that comes out if and when they get around to drilling it.