American Oil and Gas Reporter - July 2020 - 18

IndustryDigest
Hilcorp Becomes Owner
Of BP's Alaskan Assets
ANCHORAGE, AK.-As part of a
broader transaction that also includes its
midstream assets in Alaska, bp reports it
has transferred the Prudhoe Bay oil field
and its other upstream assets in the state
to Hilcorp,
In August 2019, bp announced it
would exit Alaska by selling its
businesses there to Hilcorp for a total
consideration of $5.6 billion. The sale
covers bp's entire upstream and
midstream businesses in the state,
including BP Pipelines (Alaska) Inc.'s
interest in the Trans Alaska Pipeline
System.
William Lin, bp's executive vice
president, regions, cities and solutions,
says the deal marks a new era for
Prudhoe Bay. "It is a world-class field,
and Hilcorp is well-positioned to take it
into the future and maximize value for
Alaska," he adds.
When Hilcorp announced the
transaction last August, company
President Jason Rebrook said, "This
investment will help drive growth in
local energy production, jobs and state
and local revenue for many years.
Hilcorp has a proven track record of
bringing new life to mature basins,
including Alaska's Cook Inlet and the
North Slope, and we have a clear
understanding that an experienced local
workforce is critical to success." ❒

Pantheon Re-Evaluation
Finds Two Alaska Fields
LONDON-Pantheon Resources PLC
says two re-evaluations of older wells
could boost Alaska's oil production by
120,000 barrels a day.
Its more recent discovery prospect,
the Talitha, could hold 1.8 billion
barrels, with ultimate production of
nearly 90,000 bbl/d, predicts Pantheon
Chief Executive Officer Jay Cheatham.
The field is along the Dalton Highway
and Trans-Alaska Pipeline System
corridor. According to media reports,
the company combined a new
evaluation of the Pipeline State-1
exploration well drilled by Arco in 1988
with data from adjacent drilling.
The Talitha discovery follows
Pantheon's second evaluation of a 2015
exploration well that indicates an
Alaskan field may hold as much as 76
18 THE AMERICAN OIL & GAS REPORTER

million barrels of recoverable oil. The
company estimates the Greater Alkaid
prospect, 20 miles south of Prudhoe,
Ak., could produce 30,000 barrels a day.
Great Bear Petroleum drilled the
Alkaid-1 well. Pantheon bought Great
Bear and its 200,000 acres of North
Slope leases in January 2019. ❒

LLOG Exploration Offshore
Sanctions Taggart Project
COVINGTON, LA.-LLOG
Exploration Offshore LLC says it has
sanctioned its Taggart discovery and
signed a production handling agreement
for development via tieback to the
Williams-owned Devil's Tower Spar in
Mississippi Canyon in the Gulf of
Mexico.
The Taggert discovery is on
Mississippi Canyon Block 816 in 5,650
feet of water, LLOG notes. The
Mississippi Canyon 816 No. 1
discovery well was drilled in 2013 to a
depth of 11,562 feet and encountered 97
feet of net pay in two Miocene
objectives. Two subsequent appraisal
wells were drilled in 2015 and 2019 and
encountered 147 feet and 84 feet of net
pay, respectively.
LLOG President and Chief
Executive Officer Philip LeJune says
the company is looking forward to the
successful development of the
deepwater asset. "We are proud to
have finalized an agreement with
Williams for the recovery and
processing of Taggart's reserves via
subsea tieback to its nearby Devil's
Tower Spar," he affirms. "LLOG is
looking forward to beginning the
successful execution of this depwater
Gulf of Mexico development project."
LLOG and its affiliates own 100% of
the Taggart development; initial
development plans at Taggart include the
completion and tie back of two wells with
first production expected in 2022. ❒

WPX Energy Completes
Felix Energy Acquisition
TULSA-WPX Energy has
completed its acquisition of Felix
Energy, which operated in the eastern
portion of the Permian's Delaware
Basin. With the transaction, WPX's
daily production of 60,000 barrels of oil
equivalent from the Delaware and

Willison basins will increase to more
than 150,000 boe/d, the company says.
WPX shareholders approved the
acquisition at a special meeting, where
more than 99.6% of votes cast were in
favor of the transaction.
"We remain absolutely convinced
about the accretive nature of the
transaction and the outstanding quality
of these assets. They overlie a
tremendous resource that clearly gives
us the means for accelerating our
ability to achieve our five-year targets
for shareholders," says WPX
Chairman and Chief Executive Officer
Rick Muncrief.
The company says it has built its
Permian Basin position through
acquisitions of RKI Exploration &
Production and Panther Energy in
addition to the Felix Energy transaction,
as well as its formation of a midstream
joint venture with Howard Energy
Partners. ❒

Align Midstream Signs JV
With Sabine On TOPS Line
DALLAS-Align Midstream Partners
II LLC reports it has completed the
TOPS Pipeline and formed a joint
venture agreement in the pipeline with
Osaka Gas USA subsidiary Sabine Oil
& Gas. The TOPS pipeline is a 30-mile,
16-inch diameter gas gathering pipeline
in the Carthage area with
interconnections to key downstream
takeaway markets.
"We are excited to partner with
Sabine and grow our relationship in
East Texas," says Align Chief
Executive Officer Fritz Brinkman.
"The TOPS Pipeline will bolster our
existing East Texas footprint and
enhance our ability to serve the
growing Haynesville production,
providing our customers with greater
access to a number of attractive
markets across the Carthage Hub."
"Given the long-term view of Sabine
and its parent Osaka, the TOPS
investment is another step in vertically
integrating Sabine and advancing our
strategy of capturing value from the
well head to the burner tip; for our East
Texas assets," commented Sabine CEO
Doug Krenek. "We are pleased to be
expanding our relationship with Align
as it is a very competent East Texas
midstream company." ❒
American Oil and Gas Reporter - July 2020

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