Page 11 - NorthAmOil Week 49

NorthAmOil
NEWS IN BRIEF
NorthAmOil
UPSTREAM
Talos Energy announces transformative acquisition of Gulf of Mexico
portfolio through multiple transactions
Talos Energy today announced that the Company has entered into a series of definitive agreements to acquire a broad portfolio of US Gulf of Mexico producing assets, exploration prospects and acreage from affiliates of ILX Holdings, Castex Energy and Venari Resources for $640mn as of the effective date. Specifically, Talos has signed definitive agreements to acquire all producing assets, primary term acreage and prospects
of ILX Holdings, all producing assets and certain primary term acreage and prospects of ILX Holdings II, all primary term acreage and prospects of ILX Holdings III and certain subsidiaries of the Castex 2014 and Castex 2016 entities. In a separate transaction, Talos executed a purchase and sale agreement and closed on the acquisition of all primary term acreage and prospects from Venari Resources.
The acquired assets produced approximately 19,000 barrels of oil equivalent per day during the third quarter of 2019 and had proved and probable (2P) reserves of approximately 68mn barrels of oil equivalent as of the effective date of July 1, 2019. 83% of the proved reserves are considered proved developed. In addition, the transaction
includes over 40 identified exploration prospects located on a total acreage footprint of approximately 700,000 gross acres. Closing of the ILX Acquisitions and Castex Acquisitions is expected in the first quarter of 2020.
TALOS ENERGY, December 10, 2019
Laredo Petroleum announces bolt-on acquisition in Glasscock County
Laredo Petroleum, Inc. today announced that it has closed a bolt-on acquisition of 4,475 contiguous net acres in Glasscock County for $65mn, further delivering on the company’s strategy of acquiring properties that can improve the company’s capital efficiency
and enhance free cash flow generation. The acquisition was funded with the company’s $1.0bn senior secured credit facility, resulting in outstanding borrowings of $245mn at December 6, 2019.
LAREDO PETROLEUM, December 09, 2019
Chevron announces $20bn
capital and exploratory
budget for 2020
Chevron Corporation today announced a 2020 organic capital and exploratory spending programme of $20bn. The 2020 budget supports a robust portfolio of upstream and
downstream investments, highlighted by Chevron’s world-class Permian Basin position, the company’s major capital project at TCO
in Kazakhstan, and an advantaged queue
of deepwater opportunities in the Gulf of Mexico.
“We are positioning Chevron to win in any environment by ratably investing in the highest return, lowest risk projects in our portfolio. This will be the third consecutive year with organic capital spending held flat
at $20bn, continuing our capital discipline through the cycle. Our emphasis on short cycle investments is expected to deliver improved returns on capital and stronger free cash flow over the long-term,” said Chevron Chairman and CEO Michael Wirth.
As a result of Chevron’s disciplined approach to capital allocation and a downward revision in its longer-term commodity price outlook, the company
will reduce funding to various gas-related opportunities including Appalachia shale, Kitimat LNG, and other international projects. Chevron is evaluating its strategic alternatives for these assets, including divestment. In addition, the revised oil price outlook resulted in an impairment at Big Foot. Combined, these actions are estimated to result in non- cash, after tax impairment charges of $10bn to $11bn in its fourth quarter 2019 results, more than half related to the Appalachia shale.
“We believe the best use of our capital
is investing in our most advantaged assets,” Wirth continued. “With capital discipline
and a conservative outlook comes the responsibility to make the tough choices necessary to deliver higher cash returns to our shareholders over the long term.”
CHEVRON, December 10, 2019
MIDSTREAM
Antero Resources
announces midstream fee
reductions and asset sale
programme
Antero Resources Corporation today announced that it has entered into agreements expected to reduce its gathering, processing and transportation costs by approximately $350mn over the next four years. The agreements include a growth incentive
fee programme with Antero Midstream Corporation (AM) that aligns with the company’s current 8-10% compound annual production growth plan through 2021 and
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