Rose Rock takes on truck assets
TULSA — Rose Rock Midstream LP on Thursday announced a deal to acquire crude oil trucking assets from a subsidiary of Chesapeake Energy Corp. The deal with Chesapeake Energy Marketing Inc. includes 124 trucks, 122 trailers and other equipment operating in Texas, Oklahoma and Ohio, plus about 200 employees. Terms were not disclosed. “Crude oil trucking continues to be a crucial element of midstream infrastructure,” said Carlin Conner, chief executive officer of Rose Rock’s general partner. Once the acquisition is complete, Rose Rock will operate a fleet of more than 250 trucks, serving shale plays from North Dakota to Texas, with about 350 employees.
WPX makes $355M sale to Legacy
TULSA — WPX Energy has completed its $355 million sale of working interests in some of its wells in Colorado’s Piceance Basin to Legacy Reserves LP, the company announced Thursday. The interests represent about 9 percent of WPX’s year-end proved reserves in the basin. “I’m pleased with the benefits this transaction brings to WPX in both 2014 and beyond,” CEO Rick Muncrief said. “This fills the majority of the funding gap in our 2014 capital plan and monetizes mature gas assets in a way that keeps our corporate structure and our story simple. We will use the proceeds from the sale to build on the successes we’re seeing in our growth basins, particularly our oil plays where we grew domestic volumes by 40 percent in the first quarter versus a year ago.” WPX will also receive a 10 percent stake in Legacy’s newly created class on incentive distribution rights, with the opportunity to increase its ownership to 30 percent.
Helmerich and Payne speeds work
TULSA — Helmerich and Payne Inc. is poised to speed up its construction schedule in light of additional drilling rig orders. The company announced Wednesday that five companies had ordered a total of nine new rigs, pushing its building commitment for this fiscal year to 53 rigs. “The 53 new FlexRig orders so far during the fiscal year signal a strong drumbeat of opportunity for the foreseeable future,” CEO John Lindsay said. The company intends to boost its construction schedule to four rigs a month in September. It currently builds three new rigs a month.
Petro River Corp. gets 106K acres
Petro River Oil Corp. has acquired about 106,000 acres in Osage County, the Houston-based company announced Thursday. Terms of the deal with Bandolier Energy LLC were not disclosed. The Pearsonia West Concession is the largest contiguous oil and natural gas acreage position in northeastern Oklahoma, with development opportunities for vertical and horizontal drilling. The acreage includes multiple producing horizontal wells and significant infrastructure. “In completing this acquisition, we are closer to achieving our goal of joint venture development in the Mississippi Lime,” said Daniel Smith, the company’s executive vice president of operations.
Zenergy joins fund partnership
TULSA — Zenergy Inc. and funds managed by affiliates of Apollo Global Management LLC have formed a partnership to invest in upstream and downstream oil and natural gas properties. The partnership, which was formed May 1, will focus on assets in the Mid-Continent, Texas, Arkansas and Louisiana. It has more than $750 million in total committed funds.
Seminole Energy changes name
Seminole Energy Services LLC, which has dual headquarters offices in Tulsa and Houston, has changed its name to Continuum Energy. It will begin operating its companies under that brand. Continuum is an integrated energy products and services company that provides more than 500 oil and natural gas producers with gathering, processing, marketing and transportation services. “Since the company began in 1998, Seminole Energy has acquired multiple brands, grown into new markets and significantly expanded our products and services — all of which created a new and distinct identity,” CEO Jason Few said. “Our acquisitions and rapid growth in the past 18 months coupled with our focus on increasing our role in America's energy future, and a brand that is more reflective of our ability to deliver integrated solutions from the well head through and to end-use customers as the customers' needs require, provided the right opportunity for rebranding to better represent our full continuum of offerings.”
Alpha Crude calls open season
TULSA — Alpha Crude Connector LLC has announced plans for an open season on a proposed crude oil pipeline in six counties in New Mexico and west Texas. The pipeline would be able to move 100,000 barrels a day of crude oil from a truck terminal and numerous lease tank batteries and other field receipt points in the northern Delaware Basin. It would deliver crude to multiple downstream pipelines and a rail terminal providing access to local refineries, Cushing and the Gulf Coast. The open season is set to close on July 1, with the proposed pipeline expected to be in service in the last half of 2015.
Oil drops in economic report
The price of oil barely budged for a fourth straight day, as traders await the latest report from the U.S. government on the state of the jobs market. Benchmark U.S. oil for July delivery fell 16 cents to $102.48 a barrel on the New York Mercantile Exchange. For the week, oil is down 33 cents. Brent crude, a benchmark for international oils, rose 39 cents to $108.79 a barrel. The U.S. government’s monthly jobs report is due out Friday. Economists estimate that U.S. employers added 220,000 jobs in May and that the unemployment rate inched up to 6.4 percent from 6.3 percent as more people hunt for work. At the gas pump, the price of a gallon averaged $3.66. That’s up 1 cent from a week ago and up 4 cents from this time last year.
From Staff and Wire Reports