J-W ACQUIRES CV PROPERTIES FROM BHP - CASPIANA AND ELM GROVE FIELDS

J-W Operating Company Announces the Acquisition of Oil and Gas Properties from BHP Billiton

DALLAS, Nov. 20, 2014 /PRNewswire/ -- J-W Operating Company is pleased to announce the acquisition of oil and gas properties in Northern Louisiana from BHP Billiton.  The properties are located in the Elm Grove and Caspiana fields and include interests in approximately 1,200 wellbores and associated gathering lines and compressor facilities.  By the addition of approximately 700 active wells that are producing in the Cotton Valley formation, a conventional oil and gas field, the acquisition will result in a significant and immediate increase in production. The acquisition does not include any of BHP's unconventional Haynesville Shale assets.

J-W Operating Company President, Tony Meyer, said: "This acquisition will fit perfectly into our existing portfolio in the Elm Grove and Caspiana fields and will increase our holdings by over 200 BCF in proven reserves.  Our evaluation suggests the potential for horizontal drilling opportunities as well as increased value through rework of the existing infrastructure."  The terms of the transaction are not being disclosed by the parties.

J-W Operating Company is a wholly owned subsidiary of J-W Energy Company.  J-W Energy Company is one of the largest privately-held companies in the oil and gas industry with activities focused primarily in the natural gas upstream, midstream, and energy services segments of the industry.  Based in Addison, Texas, J-W Energy Company has more than 60 field offices in multiple domestic gas producing basins.  Upstream operations are focused primarily on natural gas plays in the U.S., and the energy services group includes the largest privately-owned compression fleet in the U.S.

For more information on J-W Energy Company, visit www.jwenergy.com.     

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Permalink Reply by kittycatmama on November 22, 2014 at 8:05

People in south Holly Field who are leased with BHP getting letters from SKLAR for shallow drilling (Hoston and CV), so apparently BHP has flipped that acreage to SKLAR

Permalink Reply by Skip Peel - Mineral Consultant on November 22, 2014 at 8:12

It's a "farm out".  Common industry practice.  BHP retains the lease rights to all depths but assigns the shallower Hosston and CV depths to Sklar.  Sklar is said to "farm in" and will explore/develop the assigned zones.  BHP will continue to develop the Haynesville/Bossier zone defined in their Haynesville Shale units.  BHP has some prospective shallower horizons which Sklar is experienced in exploring and producing.  A good move for both.  And for mineral lessors under BHP leases.

Permalink Reply by kittycatmama on November 22, 2014 at 11:35

Skip, it seems the State is lagging behind on posting these new hearings. In the past hearings were updated more often than now. Is that my imagination?

Permalink Reply by Skip Peel - Mineral Consultant on November 22, 2014 at 11:47

Maybe a little.  Our governor keeps cutting budgets and staff.  When he started many thought the state had too many employees.  Now in many instances they do not have enough.  Drop by the DMV for an example.  Also keep in mind that a unit application must go through a notice period before being added to the Commissioner's hearing schedule.  If a party on the Interested Party list requests a local hearing then that can add a couple of weeks to the notice period.  If an application has not made it to the hearing schedule by now it may not appear until the January hearing dates.  The December 16 hearing date appears to be full now.

Permalink Reply by kittycatmama on November 22, 2014 at 11:40

Do you know if EnCana is farming out any of their shallow depths? Our major leases are with EnCana, so that is super important to us.

Permalink Reply by Skip Peel - Mineral Consultant on November 22, 2014 at 11:48

I wouldn't have any way of knowing that until something gets filed in the public record.

Permalink Reply by kittycatmama on November 22, 2014 at 12:34

As always Skip, thank you for the info.

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