Page 12 - NorthAmOil Week 47

NorthAmOil
NEWS IN BRIEF
NorthAmOil
UPSTREAM
Earthstone Energy
announces new five-year
revolving credit facility with
$325mn borrowing base
Earthstone Energy, announced today it entered into a new credit agreement with respect to its senior secured revolving
credit facility. The new credit facility has a maturity date of November 21, 2024 with a maximum credit amount of $1.5bn and an initial borrowing base of $325mn. Wells Fargo Securities and RBC Capital Markets acted
as Joint Lead Arrangers for the syndication of the new credit facility and Wells Fargo Bank, National Association is acting as administrative agent.
Half of the wells will target the Wolfcamp play, with the rest targeting the Bone Spring formation. The wells will be drilled to total drilling depths of 10,000-12,300 feet.
The Houston Chronicle noted that three of the planned wells will be located on a pair of leases in Winkler County that are managed by the state-owned University Lands mineral rights company.
University Lands encourages drillers
on its leases to use brackish water instead
of freshwater for drilling and hydraulic fracturing, as well as promoting the recycling of wastewater.
Royalties from these three wells will go to the Permanent University Fund (PUF), a public account supporting the University of Texas and Texas A&M University systems.
Nearly one-third of Shell’s 123 drilling permits filed in Texas this year have been located on state-owned leases in the Permian Basin.
Study links fracking
practices to Eagle Ford
seismicity
A new study has found that earthquakes caused by hydraulic fracturing are more common in Texas’ Eagle Ford shale than previously thought.
Researchers from Miami University in Oxford, Ohio and the US Geological Survey analysed over 2,800 earthquakes recorded in the play over 2014-18 for the study. They found that over 2,400 of these earthquakes could be linked to fracking activity and that certain industry practices were more likely to trigger seismic events. According to their findings, earthquakes were twice as likely
to happen when operators simultaneously injected fluids into multiple nearby wells
compared to when they injected fluids into multiple wells one at a time.
The earthquakes were relatively weak,
with only 121 of them registering above a magnitude 2.0 out of the 2,823 events analysed in the study.
The study was released a month after researchers with the University of Texas at Austin published a study that linked fracking to some seismic activity in the Permian Basin.
MIDSTREAM
Pembina Pipeline
Corporation receives
Canadian Competition
Bureau approval for the
proposed acquisition of
Kinder Morgan Canada
Pembina Pipeline Corporation is pleased
to announce that it and Kinder Morgan Canada Limited have received a “no-action letter” from the Canadian Competition Bureau confirming that the Commissioner of Competition does not intend to challenge the proposed acquisition by Pembina of Kinder Morgan Canada’s outstanding common equity by way of a statutory arrangement under the Business Corporations Act (Alberta).
The receipt of the “no-action letter” satisfies the last material regulatory condition necessary for completion of the arrangement. The arrangement is now expected to close
in December 2019, subject to approval of
the Arrangement by the holders of Kinder Morgan Canada’s restricted voting shares and special voting shares at the special meeting scheduled for Tuesday, December 10, 2019, receipt of the final order of the Court of Queen’s Bench of Alberta at the application scheduled for the same date, the concurrent completion of the sale of the U.S.-regulated Cochin pipeline system from Kinder Morgan, Inc. to Pembina and satisfaction of other customary closing conditions.
Further information regarding the arrangement is provided in the management information circular and proxy statement of Kinder Morgan Canada dated November 4, 2019.
PEMBINA PIPELINE CORPORATION, November 20, 2019
Robert J. Anderson, Earthstone’s president, commented: “We are very pleased to put our new credit facility in place and extend the maturity to five years. We greatly appreciate the ongoing support from our lending group, each member of which has a prior positive lending history with Earthstone or our management team in prior entities. The new credit facility helps secure substantial liquidity for the Company while maintaining a simple capital structure as we continue to grow our production base and create shareholder value.” EARTHSTONE ENERGY, November 21, 2019
Shell files to drill on state- owned Permian Basin land
Royal Dutch Shell has filed for six horizontal drilling permits with the Railroad Commission of Texas for projects on five leases in the Permian Basin split between Winkler and Loving counties.
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Week 47 27•November•2019