shale oil reserves, big buisness,and growing fast
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Published Jun 3, 2011
American Standard has entered into four non-binding Letters of Intent (LOI) to acquire acreage in its three primary areas of operations: the Bakken of North Dakota and the Eagle Ford and Permian Basin plays of Texas and New Mexico. An LOI was signed for each of the following:
•Bakken: ASEN has entered into an LOI to purchase approximately 15,000 acres in the Bakken shale play of North Dakota. This acquisition would increase the Company's total acreage in the Bakken to approximately 48,000 net acres. The agreement covers acreage in the heart of the play being mostly in Mountrail, Burke, Williams McKenzie and Divide Counties. A significant portion also lies in the newest "hot spot" of the Bakken being Stark and Dunn counties.•Eagle Ford: ASEN has agreed to a transaction that when completed will increase its acreage holdings in the Eagle Ford oil window from 10% Working Interest in 12,000 net acres (two rigs presently running with 8 wells in various stages of development) to a total of over 20,000 net acres. The average well on ASEC holdings has come in at Initial Production (IP) flowing daily rates in excess of 1,000 BOE. Upon completion of these acquisitions ASEN will have positions in LaSalle, Wilson, Gonzales and Maverick Counties.•Permian Basin: ?Wolfcamp Shale: West Texas: ASEN entered into an agreement to purchase 100% Working Interest in over 12,800 acres of the "Wolf camp Horizontal Play" (10,000 acres of which are Held By Production). This position is in the fairway of Crockett and Reagan Counties. The acreage is contiguous to the recent University of Texas leases auctioned in April for over $2,700 per acre by companies such as Pioneer, El Paso, Devon, EOG and Conoco Phillips.?Avalon, Wolf-Bone Play: South Eastern New Mexico. A tentative agreement has been reached whereby ASEN will acquire various non-operated working interests in over 65,000 gross acres (approximately 14,400 net acres). The leases are located in Eddy and Lea Counties including two 100 % Working Interest Sections on the Texas side being immediately to the south in Loving, Reeves and Culberson Counties. All of the acreage included in the agreement is Held By Production. Operators of the wells will be Apache, Yates Petroleum, Heyco, Oxy, COG, XOG, Nadel and Gusman, Mewbourne, Nearberg, Chesapeake, Devon and BP. Recent entry of major oil companies and large independents in these plays has made it difficult for other companies to compete. However, upon completion of these acquisitions with its strategic partner, ASEN will be in a position to participate in a larger number of leases, which not only reduces risk but provides ASEN with more drilling opportunities normally available to a company of similar size..
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American Standard enters LOI for Shale acreage (Scandinavian Oil ...
Jun 3, 2011 ...
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