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E S I C IA NG L R AP EP OR OR E T:
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December 2010
TransAtlantic seeks
to unlock potential in Turkey, Romania INSIDE • • • • •
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Control risk for competitive edge Water challenges for shale SEC revises reserves rules Q&A with Sean Boland Interview with Keppel CEO
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ENERTIA SOFTWARE
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CONTENTS V7/#12
FEATURES
✱
ON THE COVER: TransAtlantic Petroleum chairman Malone Mitchell
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COVER STORY: TransAtlantic Petroleum Malone Mitchell developed Riata Energy (now SandRidge Energy) into a hugely successful oil and gas company before selling controlling interest in 2006. After stepping down, he founded Mitchell Group, a privately held oil and gas company. He also serves as chairman of TransAtlantic Petroleum Ltd., which has assets in Turkey, Romania, and Morocco. OGFJ Editor Don Stowers recently caught up with Mitchell to discuss his plans for the company.
22 SEC rules In December 2008, the SEC modified the oil and gas disclosure rules for the first time in 30 years. Originally heralded as modernizing and liberating, questions regarding the lack of clarity for certain critical
provisions have surfaced. Mark Folladori of Mayer Brown takes a look at the first round of reporting under the new guidelines, examines and analyzes how companies applied the rules, and looks to what’s next.
30 Merger climate Sean Boland is vice chairman of the Howrey law firm in Washington, DC and co-chair of the firm’s antitrust practice. He recently spoke with OGFJ Editor Don Stowers about industry mergers and the current regulatory climate
in Washington.
36 Risk and uncertainty The current preoccupation with deepwater development risks and uncertainties has an interesting parallel to the global preoccupation with emerging risks in the
broader world economy, says Scott Randall of Boots & Coots. Managing the risk and uncertainty could provide a competitive advantage.
42 Choo Chiau Beng Keppel Corp. is one of Singapore’s largest and
most diversified conglomerates. Choo Chiau Beng, formerly head of the company’s rig and shipbuilding arm, was named CEO in January 2009. Focus Reports LLC spoke to the new CEO in an interview exclusively for OGFJ.
Oil & Gas Financial Journal® (ISSN: 1555-4082) is published 12 times a year, monthly, by PennWell, 1421 S. Sheridan Rd., Tulsa, OK 74112. Periodicals Postage Paid at Tulsa, OK, and additional mailing offices. POSTMASTER: Send address changes to Oil & Gas Financial Journal, 1421 S. Sheridan Rd., Tulsa, OK 74112. Change of address notices should be sent promptly with old as well as new address and with ZIP or postal code. Allow 30 days for change of address. Copyright 2010 by PennWell. (Registered in US Patent & Trademark Office.) All rights reserved. Permission, however, is granted for libraries and others registered with the Copyright Clearance Center Inc. (CCC), 222 Rosewood Drive, Danvers, MA 01923, Phone (508) 750-8400, Fax (508) 750-4744, to photocopy articles for a base fee of $1 per copy of the article, plus 35 cents per page. Payment should be sent directly to the CCC. Federal copyright law prohibits unauthorized reproduction by any means and imposes fines up to $25,000 for violations. Requests for bulk orders should be sent directly to the Editor. Back issues are available upon request.
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DEPARTMENTS [Editor’s Comment]
5 Why shale, why now? Here at home, Chevron and ExxonMobil have bought in. IOCs, CNOOC, Total, Statoil, and Eni have, too. Why are the majors acquiring independent natural gas producers and assets when gas prices seem chronically depressed? OGFJ Editor Don Stowers takes a look at recent analysis from the current year. [Capital Perspectives]
6 Challenge = opportunity Despite all the excitement around shale plays and the technological advances that have enabled the industry to produce this resource, many challenges remain. However, underneath these obstacles lies great opportunity for entrepreneurs, innovators and investors. Leif André
Skare, and Dr. Vikram Rao of Energy Ventures explain. [Upstream News]
10 Chevron’s shale Following recent shale asset acquisitions in Poland, Romania, and Canada, Chevron has made a large grab at the North American shale industry, particularly the gas-rich Marcellus shale, with a plan to acquire Atlas Energy for $4.3 billion.
[Beyond the Well]
72 Year in review
46 Deal Monitor 48 Industry Briefs 52 Energy Players 56 Special Report: Singapore
OGFJ.com▶
71 Co./Ad Index
OGFJ associate editor Mikaila Adams wraps up another successful year profiling various energy industry companies, individuals, and associations in their efforts to help improve the lives of those in their communities. Take a look back at 2010’s Charities and Champions.
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the latest information from the industry. Get details on Energy XXI’s $1.01 billion acquisition of certain shallow-water Gulf of Mexico shelf interests from ExxonMobil affiliates, read Wood Mackenzie’s report on the trends in upstream global spending, and more. Track management changes at companies like Societe General, Northern Tier Energy, Concho Resources, and others.
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UR CENTER Take a look at the new UR Center on OGFJ.com. North American shale plays such as the Eagle Ford, Barnett, Haynesville, Marcellus, Bakken, and Woodford are all noteworthy formations, but unconventional resources extends also to tight gas, coalbed methane, oil sands, and heavy oil. Get up-to-date information, including maps, on the most talked about formations in the unconventional resources space––all in one place.
DEAL MONITOR Visit OGFJ’s Deal Monitor. Brought to you in collaboration with The Rodman Energy Group, the Deal Monitor provides highlights of certain oil and gas transactions. Recent transactions include
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Chevron’s $4.3 billion purchase of Marcellus Shale veteran Atlas Energy and Denbury Resources’s divestiture of its ownership interests in Encore Energy Partners LP to Vanguard Natural Resources LLC for $380 million.
www.ogfj.com • Oil & Gas Financial Journal December 2010
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Editor’s Comment
Shale gas assets offer acquirers rich reserves, stable production Don Stowers Editor-OGFJ
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hevron’s announcement last month that it is acquiring Atlas Energy, a large acreage holder in Pennsylvania’s gas-rich Marcellus shale play for $4.3 billion, is another sign that the long-term outlook for natural gas is positive. Although several billion dollars isn’t a huge investment by the standards of a company the size of Chevron, oil majors don’t make a move of this type until they have thoroughly measured the risk against the reward potential and concluded that the upside outweighs any possible negative consequences. In late 2009, ExxonMobil struck a $41 billion deal to acquire XTO Energy, one of the largest US shale gas developers and a producer in half a dozen or so US shale plays. It is widely held that Exxon decided that the best way to develop expertise in these emerging plays was to acquire one of the leading players. So why are the majors acquiring independent natural gas producers when gas prices seem chronically depressed? Let’s examine, starting with the current year. Crude oil prices have held at around $80/bbl or more for several months, while natural gas prices remain low due to higher-than-expected production and modest demand. Some refer to this as a “glut” – simple supply-and-demand economics. Currently, gas storage is filling up for the winter months, but unless the US has an unusually cold winter in the Midwest and East Coast, gas usage will remain anemic, keeping prices low.
Short term, the outlook remains rather gloomy for North American gas producers, many of whom prefer to drill wells in wet gas areas to take advantage of better prices for NGLs. Others are acquiring assets in oil-producing areas, both conventional and unconventional. In the midst of these poor conditions for natural gas development, the majors and global companies like CNOOC, Total, Statoil, Eni, and others are acquiring gas reserves and producing assets, acquiring companies with these reserves, and partnering with them, in part to develop expertise that the smaller independents acquired over years of learning how to extract gas and oil efficiently and economically. What do these larger companies know and why are they moving into unconventional gas plays in North America, Europe, and elsewhere? Robert Gillon, director of energy company research at IHS, thinks he knows. He says these types of assets have been missing from the larger companies’ portfolios and they offer stability and reduced risk. “Large projects such as Gorgon or those in the deepwater Gulf of Mexico are great, but the incremental production is lumpy,” says Gillon. By acquiring Atlas, Chevron smoothes its production profile and obtains access to significant proved reserves and resource potential, he adds. Deutsche Bank believes current low prices could actually be beneficial for natural gas producers. In a report released Nov. 17, the bank says that lower natural gas prices have already helped raise the proportion of US electricity generated from the fuel from 20% to 23% in the past two years. As coal costs rise, the percentage of natural gas in power generation could rise to 35% by 2030, says the report. Natural gas as a fuel for power gen-
eration is good from an environmental perspective as well. With Republicans taking control of the US House of Representatives in January, it appears unlikely that Congress will pass broad measures on renewable energy and climate change. But progress on emissions can still be made because natural gas is a much cleaner-burning fuel than coal, releasing about half as much greenhouse gases as coal. IHS and Deutsche Bank aren’t the only groups with a positive outlook for natural gas. Wood Mackenzie, the Scotland-based energy research firm, says that global upstream spending will return close to peak levels achieved before the economic recession by 2011. “This is primarily due to the restoration of confidence and an impressive renewal of activity in unconventional resources, particularly shale gas,” says Wood Mac. In a report released in early November, Ernst & Young notes that, “International and national oil companies are beginning to invest heavily in unconventional gas. With gas prices depressed, investors are looking for gas plays with high liquid content, such as the Eagle Ford, Bakken, and Granite Wash.” As uncertainty clouds energy development plans in the Gulf of Mexico and some projects are delayed or abandoned, it appears at least some of the investment capital is shifting onshore to unconventional gas and oil plays. Improved economics for extraction and better economies of scale by the larger companies will make it easier for low-priced natural gas to continue to displace coal as a source for generating power. Except for the coal industry, that is good news for all of us. OGFJ Have an opinion about this? Visit www.ogfj.com to comment.
December 2010 Oil & Gas Financial Journal • www.ogfj.com
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Capital Perspectives
Water: Greatest challenge for shale gas. . . and the next investment opportunity Leif André Skare, Energy Ventures, Houston Dr. Vikram Rao, Energy Ventures, Research Triangle Park, North Carolina
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here is no doubt that the somust be determined and made clear to use in operations and disposal of both called “Shale Gale” has taken industry participants. flowback and produced water. Some hold in the US and is on the It’s a landscape filled with many of these concerns may themselves be brink of spreading worldwide. Barnett, questions and uncertainties, but one exaggerated. The data shows that while Marcellus, Haynesville, and Eagle fresh water use has become a poputhing is certain: water stands to be the Ford have become household terms industry’s biggest hurdle to productive, lar public challenge for the industry, for many, and in recent months, the producing shale natural gas requires efficient, profitable and more environindustry has seen greater interest from less water than many other options (see mentally friendly operations. overseas players in domestic Table 1). Table 1: Fresh water usage in energy industry shale fields and in Europe’s These concerns have Range of gallons of water used per shale resources. driven home to regulaMMbtu of energy produced Despite all the excitement Energy resource tors, the public, and some 0.60 – 1.80 around shale plays in the US Shale natural gas sectors of the industry that Natural gas 1- 3 and overseas, and the techusing fresh water resources nological advances that have to frac and treat shale wells Coal (no slurry transport) 2–8 enabled the industry to proand improve production in Coal (with slurry transport) 13 – 32 duce this difficult resource, mature fields might not be Nuclear (processed uranium ready many challenges remain in our best interests in the to use in plant) 8 – 14 before even the known shale Conventional oil long term. As a result, in the 8 – 20 reserves can truly deliver on US, New York has imposed Synfuel – coal gasification 11 – 26 their potential. However, a moratorium on activity in Oil shale petroleum 22 – 56 underneath these obstacles the portion of the Marcellus Tar sands petroleum 27 – 68 lies great opportunity for Shale within its borders until Synfuel-Fisher Tropsch (coal) 41 – 60 entrepreneurs, innovators a study of the environmenand investors to play a key tal effects of shale producEnhanced Oil Recovery (EOR) 21 – 2,500 role in moving the industry tion is complete. Congress Fuel ethanol (from irrigated corn) 2,510 – 29,100 forward to a more producalso introduced legislation Biodiesel (from irrigated soy) 14,000 – 75,000 tive future. to amend the Safe Water Source: Tudor Pickering, Chesapeake Energy 2009 presentation to the Ground Water Protection Drinking Act in the US and Council, citing Chesapeake well estimates for shale gas and a US DOE water use report. Public & political repeal the exemption previchallenges Shale is the most recent high-profile ously made for hydraulic fracturing. The obstacles standing between shale’s example of the public relations confuture as a long term resource and its A bright spot for investing cerns, regulatory issues and general current promise are all over the headchallenges the industry faces regarding Underneath what sounds like an awful lines. In the natural gas markets, availlot of gloom and doom is, in fact, a trewater use and production. This is in able supply is growing much faster than large part because US shale operations mendous opportunity to drive positive demand. Bringing this situation into and widespread change through the have brought oil and gas exploration balance is largely a political battle where and production much closer to the industry. All of the factors mentioned the level of encouragement and supgeneral public than ever before, setting above point to a critical need for the port for transitioning to natural gas as development and rapid adoption of up shop in suburban neighborhoods a base or bridge fuel must be decided. technologies that will allow the indusand dense farming communities. Environmental concerns around fractry to meet and exceed the current and This amplified visibility has opened ing and water disposal also need to be expected regulations on water use in the door to increased scrutiny and led addressed, and the required regulation to widespread anxiety over fresh water shale operations.
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www.ogfj.com • Oil & Gas Financial Journal December 2010
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Capital Perspectives Fig. 1: Monitoring fracing stage production in real time
119.5 119 118.5 118 117.5 117 116.5 116 115.5 115 114.5
Temperature (degrees Celsius)
hence, more efficient water management. Ingrain’s technology also stands to inform the refracturing operations now becoming popular in shale plays by helping operations identify promising new production zones. Fotech Solutions’ Helios distributed acoustic monitoring system and 3800 4000 4200 4400 4600 4800 5000 Ziebel’s Z-system, which allows for Fibre length (m) logging in highly deviated and horiWhile oil and gas is an industry that fit for its purpose, and technologies zontal wellbores, also provide operators that work to efficiently and safely treat is traditionally reticent to adopt new with a more accurate and informed innovations, regulation and simple eco- flowback and produced water. look at their reservoirs. The technoloThe first category examines the nomics will mandate both development gies were recently used together to amount of water input into a shale and implementation in the next few analyze a tight gas well undergoing a operation. The challenge of reducing years. In short, the industry must find multi-stage fracing job. As production the demands fracing places on fresh was reviewed in real time, it was easily a way to economically meet changing water resources can be accomplished seen that just over half of the fracing water requirements or risk bottleneckin two ways. One is to simply use less stages were producing. This type of ing its most promising plays. water per frac operation. The other service can lead to cost savings for the Many energy investors have been is to use water that is not classified as looking to shale plays and the techoperator by allowing them to produce fresh. gas with less fracing, and concomitantly nology to produce them as profitable Several technologies currently in less water. (See Figure 1.) investment areas in recent years, leading development aim to reduce the water On the cutting edge of technology us to our current tipping point. As we input into a fracing operation. Incorpo- development are innovations that allow look ahead, water related technologies rating nano-technology, Oxane Materi- fracing operations to be conducted will be the next industry hot spot for als has created an ultra light ceramic with saline water. A large amount of both innovation and investment. proppant. Using Oxane’s OxFrac, the existing investment and technology Reduce, reuse and recover operators can transmit more proppant addressing water use challenges in shale new resources farther along a frac, with less water than operations has addressed desalination. Within the large category of water use required by other proppants. However, a new target for investment in shale plays, there are three key areas Approaching the problem from and technology development is coming that are expected to show the most another angle is digital rock physics lab to the forefront. Many experts are now promise for technology development Ingrain. Ingrain’s imaging technology examining how to better use waters of and investment. Those are, technoloreveals physical properties and flow convenience in shale production. That is, gies that can reduce the amount of characteristics of reservoir rocks at the the closest available water resource fit for water required for a production opera- nanoscale. The result is better underthe purpose at hand - either economition from the start, technologies that standing of a reservoir, more strategic cally or physically. For many operators make water injected into a play more planning of fracing operations and the nearest resource is a saline aquifer.
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Capital Perspectives Already, fracing operations can be conducted with saline water measuring 40,000 ppm (lakes and streams are generally under 1,000 ppm). Further innovation can be expected to double that number, making the use of saline aquifers, as well as recycled and treated flowback water a promising option. Desalination will not fade away. Only about one third of water input into a fracing operation returns as flowback, so additional water supplies will always be necessary. Especially in light of the fact that the water associated with shale gas operations tends to be much more saline than average, up to 350,000 ppm in some cases. However, when these tracks of technology development are combined, they stand to cumulatively reduce overall water use of shale operations and decrease their pull on fresh water resources.
Conclusion In conclusion, shale gas is a game changer and the most important development in petroleum production in decades. It has paved the way for North America to move from its position as a net importer of hydrocarbons to operating self sufficiently for a hundred years – and it is likely to have similar effects worldwide. But, the viability of this play is potentially compromised by water use and disposal issues. Consequently, innovative solutions to these comprise an excellent investment opportunity. OGFJ About the authors Leif Andre Skare is a partner in Energy Ventures’ Houston office and sits on the boards of Energy Ventures’ portfolio com-
panies PanGeo, DeepFlex, and Reality Mobile. Skare brings strong experience in energy and business development to his work from former positions with Melberg Partners a.s., Kverneland ASA and Esso Norge AS. Vikram Rao serves on the Energy Ventures Advisory Board. In addition, he serves as the executive director at the Research Triangle Energy Consortium. He was formerly senior VP and CTO at Halliburton, where he led the company’s technology efforts and intellectual asset management. He has authored more than 40 publications and holds 26 patents in the fields of non-ferrous metal refining, alloy formulations, and oil and gas technology.
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December 2010 Oil & Gas Financial Journal • www.ogfj.com
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Upstream News Chevron buys Atlas Energy in $4.3B deal, enters shale business
incremental production is lumpy. This Marcellus-type play smoothes their production profile and gives them access Deal will bring production growth, to significant proved reserves of 0.9 tcf and resource needed balance to portfolio potential estimated by Chevron at nine tcf.” And as far as the price paid for the net-acquired ollowing recent shale asset acquisitions in Poland, resources, Gillon said the metrics are in-line with what Romania, and Canada, Chevron Corp. has made other new entrants have been paying despite looking a large grab at the North American shale industry, “relatively expensive on a proved basis,” particularly given particularly the gas-rich Marcellus shale. The Californiapresent low natural gas prices. He noted, too, that one based company holding the title of world’s fifth-largest oil should look also at the acreage acquired and think more company has agreed to pay $3.2 billion in cash to acquire long term. Atlas Energy in addition “Presumably,” he said, to assuming pro forma net Atlas’ Marcellus acreage “They have an advantage over debt of approximately $1.1 latecomers to the Marcelbillion. lus,” because Atlas has been The acquisition gives involved in the area for many Chevron an attractive natuyears, so “the acreage may be ral gas resource position, better situated than what othprimarily in southwestern ers have amassed.” Pennsylvania’s MarcelUnder the terms of the lus Shale–one of the most agreement, Atlas shareholders sought after shale plays. will receive a package worth “This acquisition is $43.34 per share, a 37% the right opportunity for premium to the company’s Chevron,” said George closing price on November L. Kirkland, Chevron vice 8, the day before the deal chairman. “We are acquirwas announced. The packing a company that has age includes $38.25 in cash one of the premier acreage for each outstanding share positions in the prolific and a pro-rate distribution of Marcellus. The high quality over 41 million units of Atlas resource, competitive cost Pipeline Holdings. structure in the Marcellus, Atlas plans to sell its strong growth potential of controlling interest in Atlas the asset base and its proxPipeline Holdings before the imity to premier natural gas Chevron deal is completed. markets make this targeted acquisition a compelling Atlas assets investment for Chevron.” Chevron will gain Atlas Some may say Chevron Energy’s estimated 9 tcf of Map courtesy of Atlas Energy is acquiring the shale acrenatural gas resources, which age a little late in the game includes approximately 850 as other big energy players–Total, Shell, ExxonMobil, BP, bcf of proved natural gas reserves with about 80 MMcf and Statoil–have already snapped up acreage and interest of daily natural gas production. The assets in the Appain major shale plays, but analysts at IHS say the purchase lachian basin consist of 486,000 net acres of Marcellus brings production growth opportunities, delivers key Shale; 623,000 net acres of Utica Shale; and a 49% interassets, and brings a balance to the company’s portfolio. est in Laurel Mountain Midstream LLC, a joint venture In a research note, Robert Gillon, director of energy that owns over 1,000 miles of intrastate and natural gas company research at IHS, called the deal sensible, but gathering lines servicing the Marcellus. Assets in Michiexpensive. And necessary. gan include Antrim producing assets and 100,000 net “This type of asset was missing from Chevron’s portacres of Collingwood/Utica Shale. folio,” Gillon said. “Large projects such as Gorgon or In April 2010, Atlas Energy entered into a joint venthose in the deepwater Gulf of Mexico are great, but the ture to develop its Marcellus assets with a wholly owned
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Upstream News affiliate of India’s Reliance Industries Ltd. Atlas sold a 40% undivided working interest in roughly 300,000 net acres for $1.7 billion ($14,100 per acre). Upon closing, Chevron will assume Atlas Energy’s role as operator with 60% participation in the joint venture. Reliance will continue to fund 75% of the operator’s drilling costs, up to $1.4 billion. Pending Before the deal is completed, Atlas Energy will acquire a 49% interest in Laurel Mountain Midstream LLC from Atlas Pipeline Partners LP for a cash consideration of $403 million and sell all interests in existing investment partnerships, 175 bcf of proved natural gas reserves, and certain other energy assets to AHD for a consideration of $250 million, comprised of $30 million in cash and $220 million in newly issued AHD units. On November 10, Standard & Poor’s Ratings Services placed its “B+” corporate credit rating and its “B” issuelevel ratings on Atlas Energy Resources’ senior unsecured notes on CreditWatch with positive implications, reflecting the potential that the ratings agency may raise or affirm those ratings when the buyout is complete. As of Sept. 30, Atlas Energy Resources had outstanding $400 million principal amount of 10.75% senior unsecured notes due 2018, $200 million principal amount of 12.125% senior unsecured notes due 2017 and $76 million under a revolving credit facility, S&P said. The acquisition is subject to certain Atlas Energy restructuring transactions, approval by Atlas Energy shareholders, and regulatory clearance. While it may only be a minor pebble in Chevron’s path, at least one Atlas shareholder is unhappy with the proposed merger. On Monday, November 15, an Atlas shareholder filed a compliant in Delaware’s Chancery Court (while headquartered near Pittsburgh, Atlas is incorporated in Delaware) in hopes of blocking the acquisition saying, “The timing of the proposed sale of Atlas to Chevron appears opportunistically timed to take advantage of the current economic downturn, and is grossly unfair, inadequate, and substantially below the fair or inherent value of the company.” Citing a statement from Chevron, Reuters reported Chevron as saying it believes it made a fair offer for Atlas and that the lawsuit is without merit. Goldman, Sachs & Co. is acting as financial advisor to Chevron in the Atlas acquisition. Skadden Arps Slate Meagher Flom LLP is acting as legal advisor to Chevron. Jefferies & Co. Inc. and Deutsche Bank Securities Inc. are acting as financial advisor to Atlas Energy. Wachtell Lipton Rosen Katz is acting as legal advisor to Atlas Energy.
Newfield buys Marcellus acreage from transitioning EOG Resources Company to reallocate Gulf of Mexico dollars to develop Appalachian assets
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ewfield Exploration Co. has agreed to purchase nearly 50,000 net acres in the Marcellus Shale from EOG Resources Inc. for $405 million, or $8,100 an acre. Nearly all the acreage associated with the deal is located in Bradford County, Pennsylvania, in the Susquehanna River Basin. Five wells on the properties generate gross production of nearly 7 MMcf/d and 11 wells sit uncompleted. Current gathering capacity is 25 MMcf/d with capability to expand to 95 MMcf/d in early 2011. Newfield estimates that more than 400 gross operated well locations exist on the acreage and that net unrisked reserve potential is 1.5 - 2.0 tcfe. EOG in transition “The sale of this Marcellus acreage is a part of EOG’s previously announced tactical plan to sell certain producing and non-producing natural gas assets in North America. These sales will add liquidity to partially fund EOG’s liquids weighted capital expenditure program,” said Mark G. Papa, chairman and CEO of EOG Resources. In early August, Houston-based EOG Resources announced its plan to sell roughly 180,000 acres in US shale plays as part of an effort to refocus its portfolio as liquids-rich. According to EOG, this divestiture, along with others signed and expected to be signed by year-end 2010, will generate proceeds of nearly $1 billion. The properties represent less than one-half of one percent of EOG’s total North American production and the company will retain nearly 170,000 net acres in the Marcellus in northwestern Pennsylvania following the transaction’s close, which is expected before year-end 2010.
Newfield’s plan Newfield plans to finance the transaction using the company’s undrawn $1.25 billion revolving credit facility and then pay down the borrowings by selling certain nonstrategic assets. The company also plans to curtail deepwater Gulf of Mexico drilling in 2011 and re-allocate nearly $70 million to its $100 million Appalachian development program. Ten wells are expected to be drilled by year-end 2010 and two operated rigs are planned in 2011 to substantially hold the acreage by production. “This transaction doubles our footprint in the Marcellus and adds core acreage with attractive development drilling opportunities,” said Lee K. Boothby, Newfield –Mikaila Adams chairman, president, and CEO. A November 16 report
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www.ogfj.com • Oil & Gas Financial Journal December 2010
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