• 4 minutes Get First Access To The Oilprice App!
  • 7 minutes Blame Oil Price or EVs for Car Market Crash? Auto Recession Has Started
  • 11 minutes Japanese Refiners Load First Iran Oil Cargo Since U.S. Sanctions
  • 13 minutes Oil prices forecast
  • 1 hour Renewables in US Set for Fast Growth
  • 2 hours Chinese FDI in U.S. Drops 90%: America's Clueless Tech Entrepreneurs
  • 10 hours Oceans "Under Fire" Of Plastic Trash
  • 15 hours Is Natural Gas Renewable? I say yes it is.
  • 1 hour *Happy Dance* ... U.S. Shale Oil Slowdown
  • 1 hour Socialists want to exorcise the O&G demon by 2030
  • 16 hours Making Fun of EV Owners: ICE-ing Trend?
  • 15 hours Emissions from wear of brakes and tyres likely to be higher in supposedly clean vehicles, experts warn
  • 6 hours North Sea Rocks Could Store Months Of Renewable Energy
  • 6 hours Cheermongering about O&G in 2019
  • 1 day Algorithms Taking Over Oil Fields
  • 1 day Europe Slipping into Recession?
  • 1 day Nuclear Power Can Be Green – But At A Price
Israel Aims To Become An Energy Export Hub

Israel Aims To Become An Energy Export Hub

A new sub-sea natural gas…

CME To Start Selling U.S. Export Crude

CME To Start Selling U.S. Export Crude

International exchange CME Group has…

Noble Energy Boosts Permian Presence With Clayton Williams Buy

Fracking rig

Independent oil and gas player Noble Energy said it will buy smaller peer Clayton Williams Energy in a bid to expand its footprint in the Permian shale play. The US$2.7-billion deal will comprise cash and stock, the buyer said in a news release.

Clayton Williams shareholders will receive US$34.75 in cash plus 2.7874 Noble Energy shares for each Clayton share they hold, which comes up to 55 million shares and US$665 million in cash. Noble will finance the cash portion of its offer with a draw on a US$4-billion revolving debt facility.

Noble Energy’s chief executive commented that “This transaction brings all the key elements we value: excellent rock quality, a large contiguous acreage position adjacent to our own, and robust midstream opportunities, reinforcing the Delaware Basin as a long-term value and growth driver for Noble Energy.”

Among the assets that Noble will take control over under the deal are a total of 171,000 net acres in the Permian, of them 71,000 acres adjacent to Noble’s own acreage in the Delaware Basin, which comprises 47,200 net acres.

The Delaware Basin contains part of the Wolfcamp shale, which recently made headlines after the U.S. Geological Survey estimated the deposit could contain as much as 20 billion barrels of recoverable crude oil.

Related: China Leads Unprecedented Drop In Asian Crude Production

Noble Energy said that there are already 2,400 identified drilling locations in parts of the Wolfcamp play, with estimated net unrisked resources of around a billion barrels of oil equivalent. In the rest of the new acreages there was also “significant upward potential.”

The buyer’s immediate base plan is to increase the output from the newly acquired acreage from the current 10,000 barrels of oil equivalent, of them 70 percent oil, to 60,000 barrels of oil equivalent by 2020.

The deal also includes midstream operations in the Permian, comprising more than 300 miles of oil, gas and produced water gathering pipelines.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News