Juneau Energy buys acreage in East Texas Eagle Ford Shale
Juneau Energy, LLC, a subsidiary of Leucadia National Corporation, announced the acquisition of oil and gas leases in the emerging East Texas Eagle Ford Shale, consisting of approximately 10,264 net acres primarily in Brazos and Burleson counties. The acquisition closed on September 17, 2014.
Brad Juneau, CEO, remarked, “This acquisition represents meaningful, high quality acreage in the core area of the East Texas Eagle Ford, and we are excited about this premier addition to our leasehold portfolio. This transaction along with existing acreage provides a contiguous block of acreage in excess of 13,500 net acres and allows Juneau Energy to immediately begin and control the development process of these high value assets. With other non-contiguous acreage, Juneau Energy holds in excess of 15,000 net acres in the play.”
Juneau Energy is managed by Brad Juneau, CEO, and Jeff Edgar, President and COO, and is based in Houston, Texas and Denver, Colorado. Juneau Energy, LLC is funded by Leucadia National Corporation and Juneau Exploration, LP.
E1 Corporation buys interest in Cardinal Gas Services
Total E&P USA, has signed an agreement to sell its 25% interest in Cardinal Gas Services LLC, a midstream company in Ohio’s Utica shale play, to E1 Corporation and a consortium led by Samchully, both from Korea, for 400 million dollars plus an estimated price adjustment of 50 million dollars.
“The sale of this non strategic asset reflects the Group’s active portfolio management and enables us to unlock value while continuing with the development of our resources in the Utica basin as planned” said Olivier de Langavant, Senior Vice President Strategy Business Development R&D at Total Exploration and Production.
Since its establishment in 2011 Cardinal has built a significant part of the gas infrastructure in the Utica basin where it gathers and transports the Utica’s fast growing production. Following this transaction Total will remain an active participant in the Utica play through its upstream joint venture with Chesapeake and Enervest, and Cardinal will continue to provide to Total the same gas gathering and transportation services.
This transaction is expected to close in October 2014 and is subject to regulatory and shareholder approvals and to customary closing conditions.
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