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Hilcorp Affiliate Finalizes S.J. Basin Assets Acquisition from ConocoPhillips
Hilcorp San Juan, L.P. announced today the closing of its acquisition of the San Juan Basin assets from ConocoPhillips. The 1.3 million net acres purchase instantly places Hilcorp Energy amongst the top producers in the San Juan Basin. The company believes the assets are teeming with opportunity to profitably grow production.
“With the acquisition now complete, Hilcorp can start doing the technical work required to increase production in New Mexico and Colorado, just as we’ve done in other areas of the country,” said Jason Rebrook, President and Chief Development Officer. “Throughout this entire process, we’ve identified significant potential remaining in the base assets as well as in the Mancos Shale.”
Hilcorp has a long track record of developing assets acquired from major oil and gas producers. While other companies have reduced their exposure to traditional, conventional assets, Hilcorp has become a leader in extending and improving the production lives of these assets through expertise, innovation and efficient operations. This entry into the San Juan Basin is a natural extension of Hilcorp’s business model.
“Hilcorp sees decades of future production and development in the basin. We are excited for the opportunity to enhance oil and natural gas production in the Four Corners Region, and we expect to become responsible members of the local community by boosting economic activity and developing strong, long-lasting partnerships,” said Greg Lalicker, President and Chief Operations Officer.
The assets purchased by Hilcorp currently produce ~120,000 BOED with a decline rate of 7 percent annually. Hilcorp’s immediate goal will be to take over operations from ConocoPhillips in a safe and environmentally responsible manner. Concurrently, efforts will begin to stabilize the production from these assets. Workover rigs will be deployed to the San Juan Basin in the near-term to begin working on existing wells.
Hilcorp San Juan, L.P. is a partnership between Hilcorp Energy Company and The Carlyle Group.
Hilcorp, founded in 1989, is one of the largest privately held independent oil and natural gas exploration and production companies in the United States. Hilcorp is consistently ranked as one of the top places to work in America by multiple regional and national publications. Headquartered in Houston, TX, with over 1,500 employees, Hilcorp has operations across the United States including the Gulf Coast of Texas and Louisiana, Wyoming, Northeast U.S. and both the Cook Inlet and North Slope of Alaska.
NM’s attorney general joins chorus of EPA critics
Attorney General Hector Balderas this month joined coalition of 14 attorneys general, the State of Colorado, and the City of Chicago today in sending comments opposing the U.S. Environmental Protection Agency’s proposed 27-month delay of an Obama Administration rule on methane releases in the oilfields.
The “methane new source rule” limits emissions of greenhouse gas components “by encouraging the use of emerging technology in leak monitoring and setting a fixed schedule for monitoring leaks at all well sites and compressor stations,” Baldares’ office said in a press release. “The rule is expected to prevent 300,000 tons of methane emissions in 2020 and 510,000 tons of methane emissions in 2025.”
The controls could also cut emissions volatile organic compounds and other air pollutants.
The release said the “EPA analyzed the costs and benefits of the rule, including the revenues from recovered natural gas that would otherwise be vented, and determined that the rule would result in a net benefit estimated at $35 million in 2020 and $170 million in 2025.”
“I will continue to fight President Trump’s illegal actions that wreak havoc on our natural environment and air quality while decreasing revenue for our schools,” said Balderas. “New Mexico's youth deserve a livable world and full recovery of the resources they are owed, and we cannot put the health and safety of New Mexico children, families and businesses at risk.”
Environmental groups like the Sierra Club also submitted comments to the EPA.
Daily Times Staff Report
Christie says "NO" to NJ coastal gas & oil hunts
TRENTON, N.J. — New Jersey is opposed to a proposed natural gas and oil exploration off the state's nearly 130-mile (209-kilometer) coast, Gov. Chris Christie told the Trump administration on Wednesday.
Christie tweeted Aug. 16 while on vacation in Italy that he's "delivering on my promise" to tell the federal government "NO" on offshore exploration.
The tweet came after Department of Environmental Protection Commissioner Bob Martin sent a letter Wednesday to the federal Bureau of Ocean Energy Management in response to a request for comments on a proposed gas and oil leasing program.
Water off the state's coast is home to birds, fish, mammals and plants that could be hurt by exploration, Martin said. He also said the program could hurt the $44 billion tourism industry.
"New Jersey has consistently and steadfastly opposed any industrialization of our coast," Martin wrote.
Christie, a Republican, has opposed coastal drilling as far back as 2010 .
The governor's letter drew rare praise from the state's environmental advocates.
"It is good that they are coming out the offshore drilling plan in the North and Mid-Atlantic," New Jersey Sierra Club director Jeff Tittell said in a statement.
But, he added, that Christie should go further to halt climate change effects that could result from drilling elsewhere.
Christie's office didn't immediately respond to request for comment.
Trump, also a Republican, called for an "America-First" offshore energy exploration policy in an April executive order. The order says it will be the nation's policy to encourage energy production and exploration.
The Associated Press
Gore to give keynote at US clean energy summit in Las Vegas
LAS VEGAS — Former Vice President Al Gore has agreed to be the keynote speaker at a national clean energy summit in Las Vegas this fall.
Former Nevada Democratic Sen. Harry Reid and Republican Gov. Brian Sandoval are co-hosting the Oct. 13 event.
Reid launched the first summit 10 years ago, and Gore — who won the 2007 Nobel Peace Prize — was the keynote speaker in 2009.
Reid said that Gore is the "most prominent environmental activist in the world today."
The ex-Senate majority leader says Gore will help lead a bipartisan conversation about the importance of developing clean energy to combat climate change at the October gathering with the theme "Integrating Innovation."
Sandoval says Gore has played a key role in stressing the need for state and local governments to help create clean energy solutions through infrastructure and local economies.
The Associated Press