Finance & Investing
News Services
Newsletters
Get free industry updates via email.
Daily News
Weekly News
Equipment Updates
Weekly Job Register
Monthly Event Guide
Our privacy
pledge.


advertisement

Eni Signs Texan Oil Shale Deal

change text size

Italy's Eni reported Tuesday that it has signed an agreement with Quicksilver Resources to jointly evaluate, explore and develop shale oil reservoirs onshore US. The deal will see Eni earn 50-percent shares in an areas located in west Texas.

Eni said it will earn a 50-percent share in 52,500 gross acres held by Quicksilver in the Leon Valley area, which is located in Pecos County approximately 500 miles northwest of Houston. The terms of the agreement calls for an initial three-phase program that includes the drilling of up to five exploration wells and the acquisition of a 3D seismic survey, both aimed at determining the hydrocarbon potential of the area and the subsequent development plan. In return, Eni will pay Quicksilver up to $52 million, covering drilling, completion and seismic survey costs, while any future expenditure will be shared equally between the two companies.

The agreement also allows Eni to earn, at no additional cost, 50 percent of Quicksilver's interest in another 7,500 gross acres in the Leon Valley area.

Eni said in a company statement that the new project gives it "the opportunity of entering into one of the prolific unconventional shale oil plays in the US through organic growth and with a phased investment program".

Current production in the Delaware Basin, where the Leon Valley acreage is located, currently amounts to nearly 500,000 barrels of oil equivalent per day, both from conventional and unconventional reservoirs.

Eni holds a working interest in a total of 777 leases in the US. Of these, 233 are in the Guld of Mexico, 107 in Alaska's North Slope and 436 are onshore Texas.



Have a news tip? Share it with Rigzone!
Email news@rigzone.com

WHAT DO YOU THINK?

Post a Comment Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.


More from this Author
Rigzone Staff
e-mail us at news@rigzone.com
 -  Total Discovers Oil Offshore Ivory Coa... (Apr 17)
 -  Shell Finds Gas at Rosmari-1 Well in S... (Apr 17)
 -  Providence Offered Upgrade to its Newg... (Apr 17)
 -  Ezion Bags $79M Charter Contracts to S... (Apr 16)
 -  Stable North American Market Drives Re... (Apr 16)
Most Popular Articles
From the Career Center
Jobs that may interest you
Project Manager (Visium Risk)
Expertise: Project Management
Location: Houston, TX
 
Senior Field Operations Engineer
Expertise: Drilling Consultant, Petroleum Engineering, Production Technologist
Location: Houston, TX
 
Manager of Division Orders
Expertise: Landman, Lease Analyst
Location: Denver, CO
 
search for more jobs