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ConocoPhillips said last week that it has finalized its acquisition of Permian Basin oil and gas company Concho Resources. The all-stock deal valued at $9.7 billion was announced in October amid a flurry of other mergers and acquisitions designed to consolidate the US shale sector. "We appreciate the strong support for this transaction from the shareholders of both companies, which we view as further affirmation of the significant benefits it will deliver," Ryan Lance, ConocoPhillips chairman and chief executive officer, said in the announcement. ConocoPhillips' purchase of its smaller rival has netted it an additional 550,000 acres and around 200,000 B/D in the Permian. The Houston-based oil and gas producer now holds about 1.5 million acres across the Lower 48 which hold an estimated 17,000 drilling locations that can generate profits at $40/bbl.
Abstract The Upper Jurassic Haynesville Shale play covers an area extending through East Texas, northwest Louisiana and parts of southwest Arkansas. The true potential of this play as an unconventional play was largely unknown. Only after gas prices increased during the last decade oil companies started to see the Haynesville Shale as an economic shale gas play, despite its great depths of over 3000m. At present gas prices the Haynesville Shale is due to its depth once again of only marginal interest, however, in order to be prepared for renewed interest a fundamental understanding of the processes and timing controlling shale gas prospectivity is required. In order to understand the variables of this unconventional play, we have identified the heat flow history as a critical control. Heat flow values and evolution through time can impact the critical timing of gas generation, secondary cracking of oil to gas, and oil and gas generation critical moments. Using state of the art basin modeling software, a reconstruction of the heat flow history was performed. Predicted formation temperatures were calibrated against temperature data collected from 1644 wells drilled over the play. Paleo-temperature evolution was calibrated against vitrinite reflectance data collected from 26 wells. Laboratory Rock-Eval analyses were utilized to assist in this study over 6 wells. The area has been subjected to three major tectonic uplift events. After various simulation iterations we conclude that the heat flow increased slightly with each uplift event. This suggests that the uplift was accompanied by heat flow increase indicating a likely igneous control, which had a large impact on the heat flow history within the area. Such understanding proves to be vital in order to perform accurate hydrocarbon resource assessments.
Devon Energy and WPX Energy announced today that the two companies plan to merge in an all-stock deal that will create a shale producer with an estimated equity value of $12 billion. The combined company will move forward as Devon Energy and is to be led by a mixed boardroom and the current top boss of the Tulsa-based WPX. The headquarters will be in Oklahoma City, where Devon is already headquartered. Upon the deal's expected closing in the first quarter of next year, Devon shareholders will own about 57% of the combined entity while WPX shareholders will own the remaining stake. On a pro forma basis, the merged Devon is aiming for a year-end output of 280,000 B/D, which would make it the fourth-largest producer of tight oil in the US, according to a company release.
Lower oil prices will lead the global service market into a recession in 2020 after 3 straight years of growth, according to a new report. Service companies have already been struggling to fully recover from the steep oil price decline that began in 2014. Earlier this week, Weatherford won bankruptcy-court approval for a Chapter 11 plan that will slash its debt load by more than $6 billion. And last week, Schlumberger, the world's largest service company, laid out a plan to refocus its strategy going forward. Consultancy Rystad Energy forecasts a 4% overall decline in global oilfield services revenue if oil prices stay flat to current levels next year.
Abstract Six years ago, the Upper Jurassic Haynesville Shale play was largely unknown as an unconventional shale play. US government and oil company resource assessments for such unconventional plays vary significantly. Here we attempt to estimate resource potential using a full mass balance approach based on data from more than 1600 recently drilled wells, integrated into a 3D petroleum systems model. Numerous iterations were conducted to simulate heat flow in the study area. The simulated heat flow calibrated to vitrinite reflectance data from 26 wells suggests that a slight increase in heat flow may have occurred with every uplift event over the Sabine Uplift area. Laboratory analysis of a number of Haynesville Shale samples taken from six wells reported an original total organic carbon (TOC) content, which is on average 3% for all samples. Additional Rock-Eval analysis revealed that all of the samples taken from the wells are overmature. Adsorption isotherms were determined on one representative sample and implemented in the modelling approach to calculate adsorbed gas volumes. After simulation, the accumulation calculations in the Haynesville Shale revealed a total amount of 2056tcf of adsorbed gas (79.15% Methane) and 1511tcf of free gas (87.12% Methane). These numbers seem to be very high, but considering a recovery factor of 5 or 10% the combined producibility of gas based on our model will be equal to 178 or 357tcf respectively. Most of the primary production of gas occurred during the Aptian-Albian, and secondary cracking produced most of the free gas during the Early-Eocene. The model also shows wide variability in pore pressure and the generation of abnormal pressures. This variation in pore pressure occurs in the Haynesville Shale and results from a combined effect derived from the overlying Cotton Valley/Bossier Formation and the underlying Smackover Formation. As a final observation, the critical moment of the Haynesville Shale petroleum systems has been dated to be at the Turonian and Early-Eocene. At this point all petroleum system elements and process have been satisfied for the conventional and the nonconventional play respectively.