Barnett Shale

Conoco Phillips Sells Barnett Shale Assets To KKR

Conoco Phillips (COP) announced that the company has sold properties in the Barnett Shale to Kohlberg Kravis Roberts & Co (KKR).  The company did not disclose a purchase price.

Kohlberg Kravis Roberts & Co is purchasing producing properties in Texas with 93 Bcfe of proved reserves.  More than 90% of the reserves are categorized as proved developed producing.

Kohlberg Kravis Roberts & Co has a partnership with Premier Natural Resources to make investments in oil and gas assets and operates as KKR Natural Resources.

EV Energy Partners, L.P. Purchases Barnett Shale Assets

EV Energy Partners, L.P. (EVEP) announced that the company is purchasing producing oil and gas assets located in the Barnett Shale in Texas.  The company is purchasing a 31% share of the assets from Talon Oil & Gas LLC for $300 million.

EV Energy Partners, L.P. net share of the Barnett Shale assets include 212 producing wells with proved reserves of 328.5 Bcfe.  The company said that 71% of the production is natural gas and 29% is liquids.

EV Energy Partners, L.P. said that the wells were producing 27 million cubic feet equivalents per day, and had a reserves to production ratio of 33 years. 

Chesapeake Energy Issues Barnett Shale Update For The Second Quarter Of 2010

Chesapeake Energy Corporation (CHK) issued its regular operational update for the second quarter of 2010, and provided new information on its operations in the Barnett Shale.

Chesapeake Energy has 220,000 net acres in the Barnett Shale, with proved reserves of 2.9 Tcfe (using the 10 year average strip pricing as of 6/30/2010). The company recently raised its estimated ultimate recovery (EUR) per well in the Barnett Shale from 2.65 to 3.0 Bcfe.

Chesapeake Energy reported average daily production from the Barnett Shale of 535 million cubic feet equivalent per day in the second quarter of 2010. The company is currently operating 22 rigs in the Barnett Shale, and plans to operate an average of 23 rigs in the Barnett Shale in 2010. These rigs will drill a total of 245 net wells.

Chesapeake Energy reported three recent well completions in the Barnett Shale:

The Brown 7H, located in Johnson County, Texas, produced at a peak 24-hour production rate of 8 million cubic feet of natural gas per day.

The Fellowship 5H, located in Dallas County, Texas, produced at a peak 24-hour production rate of 7.9 million cubic feet of natural gas per day.

The Greenbriar 2H, located in Tarrant County, Texas, produced at a peak 24-hour production rate of 9.2 million cubic feet of natural gas per day.