Statoil enters Eagle Ford shale - Strengthens US onshore portfolio
(Thomson Reuters ONE) -
Statoil ASA (OSE: STL, NYSE: STO) is strengthening and diversifying its US
onshore portfolio by entering the Eagle Ford shale area. Through agreements with
Enduring Resources, LLC and Talisman Energy Inc., Statoil will acquire 67,000
net acres in the Eagle Ford shale formation in Southwest Texas.
"The magnitude of the shale resources in North America and the significant role
these resources are expected to play in the future energy mix make this an
attractive opportunity," says John Knight, senior vice president, business
development and global unconventional gas.
"This Eagle Ford position complements Statoil's existing US onshore portfolio,
supplying a different range of hydrocarbons to different markets, and it also
has a clear path towards operatorship. We now have a long term flexible
portfolio with significant optionality and growth potential from the top shale
plays," Knight continues.
Statoil and Talisman have formed a 50/50 joint venture for the purpose of
developing assets in the Eagle Ford shale. As part of the joint venture, Statoil
and Talisman have jointly acquired the Eagle Ford assets of Enduring, comprising
97,000 acres (48,500 net to Statoil), in a $1.325 billion transaction. The
purchase price equates to about US$10,900 per acre.
Furthermore, Statoil will acquire 50% of Talisman's existing Eagle Ford acreage
and production for $180 million (18,500 acres net to Statoil). As a result,
Statoil and Talisman will together hold 134,000 net Eagle Ford acres and
associated assets and production in the joint venture.
The two transactions amount to a total consideration for Statoil of $843 million
and will deliver recoverable Statoil resources of approximately 550 million
barrels of oil equivalent.
In addition, the companies have an option to jointly acquire up to 22,000 net
acres.
Initially, Talisman will take the lead as operator for the total acreage with
Statoil taking over the operatorship of 50% of the acreage within three years.
Governance in the joint venture will be shared equally between the two partners
from the start.
"We are pleased to enter into this joint venture with Talisman, an experienced
operator in several North American shale plays. We look forward to working
together with them in developing and producing these assets in a safe and
efficient manner," says John Knight.
Enduring operates 90% of its leases and this acreage is located in an
attractive, liquids rich area of the Eagle Ford play. Statoil expects that a
significant proportion of the revenue from Statoil's Eagle Ford acreage will
come from gas liquids and condensate which are competitively located to be sold
into the petrochemical and refinery centres in Texas.
The effective date of the transaction is August 1, 2010. The transaction is
expected to close by the end of this year.
Additional material on the transaction is available at www.statoil.com.
Morgan Stanley acted as an advisor to Statoil on this transaction.
Conference call
There will be a conference call with CFO Eldar Sætre and SVP John Knight Monday
11 October at 15:45 CET (09:45 EST)
For participation in the conference call please call:
+44 (0)20 7138 0825 UK International Toll
800 19639 Norway Toll Free
0800 032 4094 UK Toll Free
1866 239 0750 USA Toll Free
Confirmation Code: 8662548
Participants will have to quote the above code when dialling into the conference
Contacts
Investor relations:
Hilde Merete Nafstad, vice president, investor relations Norway, +47 95 78 39 11
Morten Sven Johannessen, vice president, investor relations North America,
+1 203 978 6950 (office) or +1 203 570 2524 (mobile)
Media:
Bård Glad Pedersen, media relations manager, +47 918 01 791
Ola Morten Aanestad, vice president, media relations, North America,
+1 713 485 2174 (office), or +1 713 498 0585 (mobile)
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
[HUG#1450694]
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originality of the information contained therein.
Source: Statoil via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 11.10.2010 - 07:42 Uhr
Sprache: Deutsch
News-ID 44780
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"Statoil enters Eagle Ford shale - Strengthens US onshore portfolio"
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