docFinder alert PLS PLS
Week of July 30, 2012Volume 2, No. 28

Sold! Details on Recent Deals

Including China's largest E&P buy to date and KKR's re-entry to the Eagle Ford



CNOOC - Nexen Inc.

$17.9 billion


July 23, 2012


Full Presentation



Eagle Ford JV

$25,000 acre


July 30, 2012


Full Presentation


 Find more deal details quickly with PLS' docFinder.  Discover who else is in the neighborhood and stay current with industry activity, deal values, opportunities and ideas!  Sign up now for a Free Trial to PLS' docFinder database. This docFinder Alert provides you with select data examples relating to recent E&P acquisitions.

Slide and Presentation above left are from China's CNOOC, which announced a deal on July 23 to buy Calgary-based Nexen Inc. To secure the deal, CNOOC offered Nexen's shareholders $15.1 billion cash, representing a 61% premium (or US$27.50 per share) to the share price prior to the announcement. The deal ($17.9 billion including net debt) is the largest E&P purchase to date by any Chinese firm and dwarfs Sinopec's buy of Addax Petroleum for $8.5 billion in June 2009.  From a Canadian perspective, the deal is the second largest E&P deal, only slightly behind Suncor's acquisition of PetroCanada for $18.1 billion in March 2009.  It is also the largest E&P deal since ExxonMobil bought XTO Energy for $41 billion in late 2009.

Slide and Presentation above right is from this week's annoucement by Comstock Resources of a JV with investment house Kohlberg Kravis Roberts (KKR).  The JV agreement calls for KKR to join with Comstock to drill a substantially de-risked acreage position mostly in the black oil window of South Texas' Eagle Ford shale play.  Terms call for KKR to participate for a 1/3 interest by paying $25,000 per net acre and paying its share of the drilling and completion costs.  KKR has committed to participate for the next 100 wells and beyond that can continue across the entire 28,000 acre position owned by Comstock.  KKR is experienced in the Eagle Ford having partnered with Hilcorp early in a $400 MM JV back in June 2010. The partners sold the position for $3.5 billion to Marathon a year later in June 2011 (coincidentally for about $25,000 an acre). Now a year later, KKR is back in the Eagle Ford!


More HOT slides and data below. 

PLS highlights other recent data slides including Devon's position in the Permian Basin's Cline & Wolfcamp plays where it just struck a $1.365 billion JV with Japan's Sumitomo.  Unit Corp. recently announced a $617 MM deal to buy Mid-Continent assets primarily in the Granite Wash from Noble Energy.  Anadarko struck a deal to sell a 7.2% interest in its Lucius find in the Gulf of Mexico to undisclosed buyer.  Finally, in the Falkland Islands, Premier Oil conditionally agrees to a $1.0 billion deal to farm-into Rockhopper Exploration's interests in development and exploration activities in the Falkland Islands.

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    featured.slides from docFinder

    Slide Slide Slide Slide

    Devon Cline & Wolfcamp

    $1.4 B JV w/ Sumitomo

    June 7, 2012 source


    Noble Energy Mid-Con

    To Unit Corp. $617 MM

    July 11, 2012


    7.2% of Lucius in GoM

    By Anadarko $556 MM

    June 25, 2012 source


    Falkland Islands

    $1B Premier Oil buy

    July 26, 2012


    Yesterday, Devon Energy announced a JV with Sumitomo Corp. in the Permian Basin. Sumitomo will pay $340 million at closing and another $1.025 billion in the form of a drill carry in exchange for 30% of Devon's interest in ~650,000 net acres in the Cline shale and Wolfcam shale (Midland)  of West Texas (implied value of $7,000 per acre). Slide above shows Devon's position and 2012 activity from a recent presentation.  In January, Devon struck a $2.2 Billion JV with Sinopec covering other U.S. unconventional plays.

    Unit Corp. agreed to buy Noble Energy's assets in western Oklahoma and the TX Panhandle for $617 MM.  The deal brings Unit 3,500 bbl/d plus 39 MMcf/d of production and 44 MMboe (35% oil) of proved reserves.  Importantly, the deal brings another 25,000 net acres to Unit's Granite Wash play and adds 617 potential gross horizontal drilling locations with nearly 300 MMboe of 3P reserves.   To help fund the deal, Unit is considering divesting up to $300 million of midstream assets.

    On July 2, Anadarko announced a $556 MM deal with an undisclosed buyer in exchange for a 7.2% interest in its Lucius oil development in the Gulf of Mexico.  The payment is expected to cover all of Anadarko's capital requirements (retaining 27.8% interest) to get to first production.   As shown above, Lucius has been sanctioned, has an estimated 300+ MMboe of resources and is expected to be in production in 2014. Other Lucius partners include Plains Exp., ExxonMobil, Apache, Petrobras and Eni.

    Premier Oil acquired 60% of Rockhopper Exploration's interests in the Falkland Islands. Premier gets another core area in an oil prone basin and leverages its strong operatorship and FPSO development skills.  Terms call for initial payment of $231 MM (to cover past costs) plus a development carry of $722 MM and an exploration carry of $48 MM.  The largest asset is the Sea Lion discovery where Premier is targeting FDP in 1H 2014 and projecting peak production up to 85,000 bopd.

    Full Presentation

    Full Presentation

    Full Presentation

    Full Presentation

    featured.transactions from PLS global M&A database

    08/01/12Devon strikes Permian JV with Sumitomo covering Cline and Wolfcamp play$1,365 MM
    07/30/12Comstock strikes JV at $25,000/acre with KKR in black oil window of Eagle Ford$67 MM
    07/24/12Sheridan Holding Co. buys Permain Waterflood oil assets from Noble Energy$320 MM
    07/23/12CNOOC buys Nexen Inc. in China's biggest E&P buy to date$17,900 MM

    Source: PLS M&A Database