Dune buys Barnett Shale properties
Houston-based Dune Energy has agreed to by 95 percent of Voyager Partners’ Barnett Shale oil and gas properties in North Texas for $56 million, Dune said June 14. The deal is expected to close before June 30.
Dune estimates that there are in excess of 100 drilling locations on Voyager’s Barnett Shale properties, based on current well spacing rules. The company said as many as one-third of the locations could be drilled horizontally.
A reserve report prepared by independent petroleum engineering firm DeGolyer & MacNaughten indicates there are net proved reserves of about 27 billion cubic feet of gas equivalent reserves underlying the properties, Dune said.
However, based on Dune’s internal evaluation, the company now expects Voyager to add as much as an additional 18 bcfe in proved reserves to the assets being acquired by Dune, bringing the total to 45 bcfe. Under terms of the agreement, Voyager would retain a 5 percent working interest. Dune subsidiary Dune Operating Company would be operator of record. However, an affiliate of Voyager, which is presently operating the Barnett Shale properties, would operate for Dune on a contract basis after the closing.
In addition, Dune said it has entered into an agreement by which an undisclosed independent drilling company would provide Dune with two vertical drilling rigs for a period of at least one year, with future extensions by mutual agreement. Moreover, Dune said it expects the contract operator to provide a rig capable of horizontal drilling during the fourth quarter of 2005. Dune said it would try to secure additional third party rigs in order to step up its development drilling program.
—Ray Tyson
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