Page 12 - NorthAmOil Week 10

NorthAmOil
NEWS IN BRIEF
NorthAmOil
UPSTREAM
ConocoPhillips completes sale of two Lower 48 assets
ConocoPhillips announced today the completion of two transactions to sell its Niobrara and Waddell Ranch assets to undisclosed buyers.
The Niobrara assets are located in the southern Denver-Julesburg Basin. Full-
year 2019 production associated with the Niobrara assets was 11 thousand barrels of oil equivalent per day (MBOED). The effective date of the transaction is June 1, 2019.
The Waddell Ranch conventional assets are located in the Permian Basin. Full-year 2019 production associated with the Waddell Ranch assets was 4 MBOED. The effective date of the transaction is November 1, 2019.
There is no change to the company’s guidance items as a result of these transactions.
CONOCOPHILLIPS, March 05, 2020
Talos Energy announces fourth quarter and full year 2019 financial and operational results and reduction of 2020 spending guidance
Talos Energy Inc. today announced its financial and operational results for the fourth
quarter of 2019 and provided an operations update. Additionally, in response to recent commodity price trends, the company
will reduce its previously announced 2020 spending guidance by more than $125mn. Inclusive these reductions, Talos expects
to remain free cash flow positive for 2020 with average WTI prices of $30 per barrel or higher. Specific details of the revised 2020 guidance will be disclosed in the coming weeks.
President and chief executive officer Timothy S. Duncan commented: “We exited 2019 with another consecutive quarter generating significant free cash flow and adjusted earnings per share. Talos also exited the year with one of the lowest leverage
ratios in our sector, with a 1.2x net debt to LTM Adjusted EBITDA, and high levels of liquidity. Because of the oil-weighted and highly proved developed nature of our reserve base, significant value is sustained at various commodity prices, with additional upside from our probable reserves and our drilling portfolio. The results from the Claiborne #3 well, which just reached total depth, came in above pre-drill expectations and the well will be tied to existing infrastructure in order to be brought online by mid-year, demonstrating the upside potential of the assets we acquired.”
Duncan continued: “With the closing
of our recent acquisition, we are a larger, more diverse, and more resilient business with an improved combination of free cash flowing assets and a strong balance sheet.
As we look into 2020 with the context of recent commodity price trends, we are re- examining costs throughout the organization in order to maintain our healthy leverage and liquidity metrics while also remaining free
cash flow positive despite the challenging price environment. We have flexibility in our previously announced capital program for
the year through our short-term rig contract structures, and will utilize this flexibility to reduce our discretionary capital investments. Talos’s management team and employees have weathered this situation before. In order to be prepared for these situations, we always strive to maintain a conservative leverage position, high liquidity and a strong hedge book.
We believe we are well-positioned to safely navigate current market conditions.”
TALOS ENERGY, March 11, 2020
US Energy announces
transaction to acquire New
Horizon Resources
US Energy Corp. today announced that the company has entered into a membership interest purchase agreement and closed
a transaction to acquire New Horizon Resources, whose assets include acreage and operated producing properties in North Dakota. The consideration paid at closing consisted of 59,498 shares of common stock of the company and $150,000 in cash. The effective date of the acquisition is March 1, 2020.
The New Horizon Properties consist
of approximately 1,300 net acres located primarily in McKenzie and Divide counties, North Dakota, which are 100% held by production, average a 63% working interest, and produced approximately 30 net boepd (88% oil) for the six-month period ended December 31, 2019. The properties represent assets in a mature field with existing cash flow, low decline and significant upside potential from existing operations.
“We are pleased to announce this acquisition, which represents the first step in our previously stated strategy of seeking to acquire assets within and around our existing core areas that represent mature, PDP heavy properties,” said Ryan Smith, chief executive officer of US Energy. “The New Horizon Properties add immediate reserves and
cash flow, with operated acreage positions
that are held by production to provide
for future opportunities. As we continue forward in 2020, US Energy will continue to pursue opportunities in our core focus areas that allow for capital efficient growth and increased shareholder value while maintaining a low-cost corporate structure and clean balance sheet.”
US ENERGY, March 05, 2020
P12 www.NEWSBASE.com
Week 10 12•March•2020