Locator: 48660B.
This story has been posted on the blog at least twice, but it's being re-posted. It's a huge story
Link here. Social comments, if any, might be found here.
Encino Utica + EOG: in the Utica Basin will produce 275,000 boepd and control inventories of more than 2 billion boe.
What I missed before:
- Encino Acquisition Partners LLC is the largest oil producer in Ohio.
- EOG's holdings in the Utica will grow its operations in Ohio "into a 275,000 boepd operation and turn it from a developing asset into a foundational one.
From the linked story:
EOG chairman and chief executive officer Ezra Yacob said May 30 that his team has been working in the Utica with and alongside Encino for years and added that both leadership teams “found ourselves at a point where it made a lot of sense going forward to consolidate these positions.” Encino Acquisition Partners was launched in 2017 by Encino Energy, also of Houston, and the Canada Pension Plan Investment Board when they acquired the Utica operations of what was then Chesapeake Energy Corp.
EOG today controls about 460,000 net acres in eastern Ohio and is producing about 40,000 boe/d while Encino owns about 675,000 acres and is producing 235,000 boe/d. When combined—the cash-and-debt acquisition is expected to close in the second half of this year—the operations will control more than 2 billion boe of reserves.
Much, much more at the link. This takes me back to Mark Papa and EOG back to the Bakken in 2007. .
But now its natural gas, not oil. About 45% of the companies' prospective joint productin i th Utica will be natural gas.
- natural gas: 45%
- natural gas liquids: 30%
- oil: 25%
From the story:
EOG will apply some of its technologies to Encino’s operations—since 2022, EOG’s average production per foot drilled in the volatile oil window has been about 10% higher than Encino’s—and thinks both entities’ teams should be able to bring learnings from their work on liquids to gas operations.
Andrew Dittmar, principal analyst at Enverus Intelligence Research, said the Encino deal lets EOG—which hasn’t made a big acquisition since buying Yates Petroleum in 2016—accumulate inventories in an energy market that has seen other players strike big deals in recent years (OGJ Online, Sept. 9, 2016).
And then the Bakken reference:
“Targeting this area provided for a significantly less expensive acquisition cost for undeveloped locations than what could be found in the Permian while also getting a much less developed asset than what would be available at scale in areas like the Eagle Ford and Williston Basin,” Dittmar said.
