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Pine Wave Energy and Silver Hill Reached an Agreement Over Haynesville Assets — Deal is Sealed03/20/2022
Pine Wave Energy Partners LLC, which is headquartered in Fort Worth, announced on March 14 it has entered into a definitive agreement with affiliate companies of Silver Hill Energy Partners III, to sell some of its Haynesville properties located in Caddo Parish, Louisiana, and Harrison and Panola counties, Texas.
Approximately 12,500 acres and ownership interests in 10 operated wells with a production capacity of 100 million cubic feet per day are included in these Pine Wave's assets. In addition to the midstream infrastructure, all 18 miles of natural gas gathering pipelines located in Caddo Parish and Panola County are part of the deal.
Pine Wave expects to close the transaction in the second quarter of 2022. Still, it will continue operating its other properties and exploring new opportunities under the portfolio company of Old Ironsides Energy LLC. The company will not leave the market but shift its attention.
According to Ben Hunter, CEO of Pine Wave, this transaction with Silver Hill is a significant step in the Pine Wave’s story. Over the past four years, the company has worked hard to build an outstanding position in Haynesville and was able to forge an ongoing and fruitful partnership with Old Ironsides. And now Pine looks forward to leveraging its operational focus to the next venture.
Silver Hill, on the other hand, is excited about reaping Pine's hard work. These high-quality assets will directly counterbalance their operations in the Haynesville Shale. A transaction of this kind will allow the company to further expand its range of development assets in an area that continues to offer tremendous potential.
As so happens, Silver Hill Energy Partners III is a leading private oil and gas company headquartered in Dallas, Texas, and presided over by Kyle D. Miller, who founded it in 2011. Its first two iterations, Silver Hill I & II, generated strong risk-adjusted returns across cycles for a diversified base of investors, including private equity, institutions, and family offices.
As for Pine Wave Energy, it is a privately-held energy company strategically focused on exploring and developing unconventional oil and gas resources across select regions of east Texas and northwest Louisiana. It was founded in 2018 by Ben Hunter, chief executive officer, Ben Voigt, executive vice president, and Stephen O'Neal, executive vice president, and general counsel.
In regards to the legal side of the deal, Silver Hill was represented by Shearman & Sterling LLP, and Pine Wave was represented by Akin Gump Strauss Hauer & Feld LLP.
But juridical stuff aside, if you are interested in learning more about midstream NG infrastructure infrastructure and Texas’s other lucrative resources or about energy M&A activities, contact our Houston sales office or SCHEDULE A DEMO to learn how Rextag can help you leverage energy data for your business.
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Crescent Energy closed the acquisition of Uinta Basin assets in Utah that were previously owned by EP Energy for $690 million, a few hundred million dollars below the original price. The accretive deal increases Crescent's Rockies position and adds significant cash flow and a portfolio of high-quality oil-weighted undeveloped sites. In addition to its acquired Uinta assets, Crescent's pro forma year-end 2021 provided reserves totaled 598 million boe, of which 83% was developed, 55% was liquid, and its provided PV-10 was $6.2 billion.
The two Bakken shale producers announced in a joint statement on March 7 that they had reached an agreement to unite in a $6 billion "merger of equals." Combining these two companies will create a leading Williston Basin position with assets covering approximately 972,000 net acres, production of 167,800 boe/d, and an enhanced free cash flow generation that will generate capital returns to shareholders. A historic collapse in oil prices prompted both Whiting and Oasis oil companies to file for Chapter 11 bankruptcy protection in 2020. Thus, the merger can be viewed as a preventive measure to avoid going out of business.
Oil output in the Permian Basin in Texas and New Mexico is supposed to go up 88,000 bbl/d to a record 5.219 million bbl/d in June, as the U.S. Energy Information Administration (EIA) announced in its report on May 16. Additionally, gas productivity in the Permian Basin and the Haynesville in Texas, Louisiana and Arkansas will rise to record highs of 20 Bcf/d and 15.1 Bcf/d in June, respectively. Given that this growth has been expected, recent global market changes make forecasting the output even more challenging. Learning how production will change is easier with early activity tracking, a new service recently launched by Rextag – Pad Activity Monitor. With the help of PAM, you are able to monitor well pad clearing, drilling operations, fracking crew deployment and completions with new data collected approximately every 2 days. Additionally, it cuts down activity reporting lag times by at least 98%, from 120-180 days down to just 5-8 days. In order to access reports, charts, tables, and mapping visualizations via Rextag’s Energy DataLink use a web-based application allowing users to filter, download and identify activity on a map or data table. Moreover, customers will be able to set up daily, weekly, and monthly email report notifications.
The EIA forecasts that total output in the main U.S. shale oil basins will increase 142,000 bbl/d to 8.761 million bbl/d in June, the most since March 2020. Oil productivity in the Permian Basin in Texas and New Mexico is supposed to go up 88,000 bbl/d to a record 5.219 million bbl/d in June, as the U.S. Energy Information Administration (EIA) announced in its report on May 16. In the largest shale gas basin, the productivity in Appalachia in Pennsylvania, Ohio and West Virginia will grow up to 35.7 Bcf/d in June, its highest since beating a record 36 Bcf/d in December 2021. Gas output in the Permian Basin and the Haynesville in Texas, Louisiana and Arkansas will rise to record highs of 20 Bcf/d and 15.1 Bcf/d in June, respectively. Speaking of the Permian future output, putting hands on upcoming changes in production has recently been made easier with the new Rextag's service - Pad Activity Monitor. Thanks to satellite imagery and artificial intelligence, customers are able to monitor the oil and gas wells and are provided with near real-time activity reports related to drilling operations. However, it is noticed that productivity in the largest oil and gas basins has decreased every month since setting records of new oil well production per rig of 1,544 bbl/d in December 2020 in the Permian Basin, and new gas well production per rig of 33.3 MMcf/d in March 2021 in Appalachia.
No sooner had the crude prices soared above $100/bbl than the industry professionals believed in an incredible growth of drilling activity in North America’s largest shale patch. Analysts speculate that additional output of 500,000 barrels of oil daily would become a significant part (4%) of overall U.S. daily production. That is going to flatter oil and gasoline prices. Drilling permits in the Permian Basin are persistently growing, averaging approximately 210 at the beginning of April. Moreover, the permits trend is noticed as an all-time high as a total of 904 horizontal drilling permits were awarded last month. Nowadays, learning and analysing the current situation and predicting the future development become easier with early activity tracking, a new service recently launched by Rextag. Rextag's Pad Activity monitor (PAM) allows you to see well pad clearing, drilling operations, fracking crew deployment and completions with new data collected approximately every 2 days with the help of satellite imagery and artificial intelligence. While the increase in drilling will result in higher production, U.S. shale producers will have to overcome several hurdles including labor shortages and supply constraints.