Marathon Agrees to Acquire Paloma II in Eagle Ford Expansion
Marathon Oil Corp. has agreed to acquire Paloma Partners II LLC for around $750 million in cash, as the company expands its operations in the oil-rich Eagle Ford shale.
Paloma II, a private oil-and-gas exploration and production company, owns around 17,000 acres in the Eagle Ford shale formation in south Texas, mostly in Karnes and Live Oak counties. Its net production as of April 1 was roughly 7,000 barrels of oil equivalent per day.
Its principal shareholders are Paloma Resources LLC, Encap Energy Capital Fund VII LP, and Macquarie Americas Corp.
The deal comes after Marathon spun off its refining business last year to focus its drilling efforts on unconventional U.S. oil shales, which also include the Bakken Field in North Dakota and Anadarko Woodford in Oklahoma.
Marathon recently reported that its first-quarter earnings fell from a year-ago quarter that included contributions from the refining business.
The transaction, which is subject to closing terms and conditions, is expected to close in the third quarter.
WHAT DO YOU THINK?
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.
Operates 4 Offshore Rigs
- Harvey's Wake Tempers Bullish Outlook for US Oil Output Growth (Sep 01)
- RoyalGate to Drill New Well in Equatorial Guinea's Block Z (Sep 25)
- ShaMaran Subsidiary to Contest TAQA Default Notice (Sep 21)