Marathon Oil Buys KKR-Backed Hilcorp for $3.5 Billion |
| Bloomberg - Jun 1, 2011 |
Marathon Oil Corp. agreed to buy KKR & Co.-backed Hilcorp Resources Holdings LP’s assets for $3.5 billion, expanding output and reserves in the Eagle Ford oil and natural-gas field in south Texas.
Marathon will acquire leases on 141,000 net acres in southern Texas with production equivalent to 7,000 barrels of oil a day and may be able to claim reserves equivalent to 100 million barrels by year-end, the Houston-based producer said today in a statement.
The Eagle Ford shale-rock formation holds oil, petroleum liquids and gas. Producers use hydraulic fracturing to release the fuel, injecting a mixture of water, sand and chemicals. Marathon is paying the equivalent of $21,000 an acre, an analyst said.
“This represents the strongest price paid for Eagle Ford Shale acreage and compares favorably to the recent ‘record’ price of $16,000 an acre,” Scott Hanold, a Minneapolis-based analyst for RBC Capital Markets, wrote today in a note to clients.
Read Full Article from Bloomberg
- Posted: 2011-06-01 09:31:33
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