Page 12 - NorthAmOil Week 41

NorthAmOil
NEWS IN BRIEF
NorthAmOil
UPSTREAM
MDM Permian enters letter
of intent to develop up to
200 Permian Basin wells
MDM Permian today announced the formation of strategic alliances with Frisco, Texas based FireDream Resources and affiliates. “We are excited about these new relationships and the growth they will afford both sides in transactions moving forward,” said Michael Rafael, president and CEO of MDM Permian. The companies have signed an LoI to jointly develop up to 200 wells in the Southern Midland Basin with MDM Permian as the prospect generator and operator. The LoI kicks off with the companies having entered into a sales and operating agreement for four wells in Irion County, Texas. MDM Permian will retain a carried working interest (CWI) in all the projects. The wells are located in Irion County on the 160-acre Lindley
lease, producing from the Canyon Sands
at an approximate depth of 7,000 feet. with both Wolfcamp, Clearfork and San Angelo potential behind pipe. MDM Permian, Inc. has designed a re-work programme that includes updating existing infra-structure, additional perforations to increase oil and gas entry, chemical programmes, and acid jobs. The company is also obtaining an option for up to four full sections where the Lindley lease is located. MDM Permian is also negotiating the acquisition of an additional 16 wells, with associated HBP acreage, all in the immediate area. These wells are also currently producing from Canyon Sands. “Our company is continuing to research the potential for further acquisitions within our 35 square
mile area of interest.” said MDM’s President, “The overlooked oil and gas reservoirs, as
well as the historically low recoveries from these wells, in the Canyon Sands, presents
a tremendous opportunity to build reserves and production at a relatively low cost using modern recovery technology.” The company plans to begin work in the field within the next few weeks as paperwork and transfers are completed.
MDM PERMIAN, October 11, 2019
Halcón announces
emergence from Chapter
11 and appointment of new
chief operating officer
Halcón Resources is pleased to announce that it has emerged from bankruptcy under Chapter 11 of the US Bankruptcy Code.
By successfully completing its financial restructuring, the Company eliminated more than $750mn in debt and more than $40mn of annual interest expense, significantly enriching its financial condition.
Effective at emergence, the company has $147mn in availability under its new senior secured revolving credit facility, including $3mn in cash, $1mn in outstanding letters of credit and $130mn of borrowing, resulting
in 1.3x total net leverage (net debt/LTM EBITDA). The Company has 16,204,282 shares of common stock outstanding and is governed by a board of directors comprising of Richard Little, Halcón’s chief executive officer, William Transier, who serves as Chairman of the Board, William Carapucci, David Chang, Scott Germann, Gregory Hinds and Allen Li. Mr. Little commented, “I’m excited to announce our emergence from bankruptcy under Chapter 11. This has been the culmination of a lot of hard work from the entire team, including our legal and financial advisors. I especially want to thank our former board members for their role in making the financial restructuring a success. I am eager
to begin working with our new board as we
continue to implement a culture of capital discipline in the safe development of our asset base. We remain focused on creating value and enhancing the financial flexibility we have achieved in this process.”
The company is also pleased to announce the appointment of Daniel P. Rohling as executive vice president and chief operating officer, effective October 8, 2019. Mr. Rohling replaces Jon Wright, who previously served in that role.
HALCÓN RESOURCES, October 08, 2019
MIDSTREAM
Enterprise completes
successful ATEX open
season
Enterprise Products Partners today announced it will proceed with an expansion of its Appalachia-to-Texas (ATEX) ethane pipeline, based on customer commitments received during a recent 30-day binding
open season. The 1,200-mile ATEX pipeline transports ethane from the Marcellus/Utica Basin of Pennsylvania, West Virginia and Ohio to Enterprise’s natural gas liquids storage complex in Mont Belvieu, Texas.
“The success of the open season reflects the demand for additional, reliable ethane takeaway capacity from the Appalachian region of the country,” said Michael C. “Tug” Hanley, senior vice president, pipelines and terminals for Enterprise’s general partner. “Our customers value flow assurance and reliability. The expansion of ATEX will facilitate growing production from the Marcellus/Utica Basin and will provide access to attractive markets on the Gulf Coast through Enterprise’s integrated midstream network.” The current capacity of ATEX
is approximately 145,000 barrels per day (bpd). Enterprise is currently evaluating expansion alternatives that would increase capacity by 45,000 bpd. The incremental capacity is expected to be achieved through improvements and modifications to existing infrastructure. The company anticipates that the incremental capacity will be available by 2022.
ENTERPRISE PRODUCTS PARTNERS, October 14, 2019
New Jersey denies permit for PennEast pipeline
New Jersey environmental regulators have
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Week 41 15•October•2019