Newfield and Anadarko to Acquire Maverick Basin in Southwest Texas
Newfield Exploration Co. and Anadarko Petroleum Corp. have agreed to jointly purchase the Maverick Basin assets of TXCO Resources Inc. for up to $310 million. The final amount of the deal will be determined at closing, which is expected in mid-February. The closing is subject to bankruptcy court approval.
According to the terms of the transaction, a wholly owned subsidiary of Anadarko will acquire more than 80,000 net acres in the basin, located in southwestern Texas, from TXCO for approximately $93 million and increase its operated working interest in these properties to 75 percent.
Newfield will acquire substantially all of TXCO's remaining assets in the Maverick Basin, which include more than 350,000 gross acres (300,000 net acres), for approximately $217 million. Current net production of the assets to be acquired by Newfield is 1,500 barrels of oil equivalent per day, of which two-thirds is oil. The acreage has multiple geologic targets, primarily in the Eagleford and Pearsall formations.
"This acquisition is consistent with our goal of focusing on large, domestic plays of scale,” said Newfield president and CEO Lee K. Boothby. “Including this transaction, we have added more than 500,000 net acres in long-lived resource plays over the last several months. Our acquisition of TXCO's assets will mark an entry into the Maverick Basin and provide us with a deep inventory of potential locations - both oil and gas. We have been active in South Texas for more than a decade and our people have a proven track record of success. We will ensure that our team is focused on the right assets in this region to create long-term value for our shareholders. We expect to have an active drilling program in 2010."
Newfield is an independent crude oil and natural gas exploration and production company, operating in the Mid-Continent, the Rocky Mountains, onshore Texas and the Gulf of Mexico.
"The additional interest being acquired increases our position in this program and should afford Anadarko strong growth opportunities in the high-potential emerging Eagleford and Pearsall shale plays,” said Bob Daniels, Anadarko senior vice president of worldwide exploration. “The enhanced liquids yield we've encountered to date in the Eagleford offers significant value and balances the dry gas opportunities found in the Pearsall. We have been very encouraged with our early results, are pleased to add to our existing 180,000 net acres in this area and look forward to continued success."
Anadarko's mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world's health and welfare. As of year-end 2008, the company had approximately 2.3 billion barrels-equivalent of proved reserves. |
