Talisman Energy (TLM) and Statoil (STO) announced that they have entered into a joint venture agreement and acquired acreage in Texas that is prospective for the Eagle Ford Shale.
Talisman Energy will be the operator of the joint venture, which also agreed to purchase 97,000 net acres in the Eagle Ford Shale from Enduring Resources for $1.325 billion. The company said that after adjustments, the price per acre was $10,900.
Talisman Energy said that the net cost to the company would be $485 million. Statoil is required to purchase a 50% working interest in the 37,000 net acres that Talisman Energy held prior to the creation of the joint venture.
Details on Property
There are three rigs currently operating on the newly acquired acreage, with current production of 5,500 barrels of oil equivalent (BOE) per day from six wells. Talisman Energy said that the estimated ultimate recovery (EUR) of Eagle Ford Shale wells would average 660,000 BOE per day.
Talisman Energy said that eleven additional wells have been drilled or are currently drilling, and the joint venture plans nine more wells by the end of the year. The company said that the initial production rate on the two most recent wells averaged 3700 BOE per day, with a high proportion of liquids.
