American Oil and Gas Reporter - March 2022 - 22

PDC Makes $1.3 Billion
Acquisition In DJ Basin
DENVER-PDC Energy Inc. has
entered a definitive purchase agreement
with Great Western Petroleum LLC and
certain sellers under which PDC will
acquire Denver-Julesburg Basin
operator Great Western in a transaction
valued at approximately $1.3 billion,
including net debt of approximately
$500 million. PDC says it expects the
transaction to close in the second
quarter of 2022
The acquired assets produce
approximately 55,000 barrels of oil
equivalent a day, PDC says, composed
of approximately 42% crude oil and
67% liquids. Proved reserves total 185
MMBoe, PDC reports. It goes on to say
that the acquisition adds 315 identified
locations, 125 of which are either
drilled but uncompleted wells or
approved permits.
" Coupled with our existing highquality
inventory, this core Wattenberg
acquisition adds meaningful scale to
PDC while also demonstrating our
commitment to-and confidence in-the
future of safe and responsible energy
development in the state of Colorado, "
comments PDC President and Chief
Executive Officer Bart Brookman.
" This opportunity meets all the
company's acquisition-related criteria
by strengthening our free cash flow,
increasing our shareholder returns,
honoring the balance sheet and adding
competitive, high-quality inventory. " ❒
Talos, HEP Sign CCS Pact
With Corpus Christi's Port
HOUSTON-Talos Energy Inc. and
Howard Energy Partners say they have
entered an option agreement with the
Port of Corpus Christi Authority to
pursue commercial carbon capture and
sequestration opportunities on site at the
port of Corpus Christi, Tx.
According to Talos, the project will
be known as the Coastal Bend Carbon
Management Partnership. During the
initial nine-month evaluation period, the
parties say they will identify and mature
CCS project solutions on port-owned
lands. With a diverse industrial footprint
at the port, transportation infrastructure
and expertise from HEP, and subsurface
and sequestration capabilities from
Talos, the parties say they are
positioned to offer a fully integrated,
turnkey CCS solution to the area's more
than 200 customers.
According to Talos, the lease option
22 THE AMERICAN OIL & GAS REPORTER
agreement covers 13,000 acres for
CCS project evaluation, with an initial
goal to sequester 1.0 million-1.5
million metric tons of industrial
carbon dioxide emissions into saline
aquifers utilizing an estimated total
storage capacity of 50 million-100
million metric tons.
Based on proof of concept and
market demand, the parties say they
may scale the project to a regional hub,
with the capability to sequester 6
million-10 million metric tons a year of
the approximately 20 million metric
tons a year of total regional emissions.
The partners add that HEP's Javelina
midstream system is directly connected
to more than half the total regional
emissions, with approximately 60 miles
of existing infrastructure throughout the
port area. ❒
Energy Transfer Weighs
Permian-To-Gulf Pipeline
DALLAS-Energy Transfer LP's
fourth quarter and year-end financial
results note that the company is
evaluating a new Permian Basin
natural gas takeaway project that
would utilize existing Energy Transfer
assets and a new pipeline to connect
Permian supply to markets along the
Gulf Coast, including the Houston
Ship Channel, Katy, Carthage and
Henry Hub.
Media accounts indicate Co-Chief
Executive Officer Thomas Long has
said the company is optimistic the
project can be completed relatively soon
after a final investment decision. " Given
the proposed route and our ability to
utilize existing assets, we believe we
could complete construction in two
years or less once we have reached
FID, " Long is quoted. ❒
Split Rock Resources
Expanding In Permian
FORT WORTH-North Hudson
Resources Partners LP affiliate Split
Rock Resources LLC has acquired oil
and gas assets from a private seller for a
cash purchase price of $97.5 million.
The company says the acquisition
primarily consists of core nonoperated
assets in the Delaware Basin in New
Mexico's Eddy and Lea counties, as
well as in the Midland Basin in
Glasscock County, Tx.
According to Split Rock, the assets
are producing about 2,000 barrels of oil
equivalent a day (75% liquids, threestream
basis) and include about 1,000
net acres with substantial drilling
inventory targeting the Wolfcamp, Bone
Spring and additional formations. The
assets are operated by a diverse group
of companies and 2022 development
activities are expected to increase daily
production rates to more than 4,000
Boe/d. r
Gas Storage Volumes
Continue To Trail
Five-Year Averages
WASHINGTON-Underground
natural gas storage in the United States
stood at 1.643 trillion cubic feet on Feb.
25, 13.4% below the five-year average,
according to the U.S. Energy
Information Administration. That was
down 680 billion cubic feet from the
2.323 Tcf in storage on Jan. 28, which
was 5.8% below the five-year average.
The Feb. 25 storage number was 216
Bcf lower than a year ago, when gas
storage stood at 1.859 Tcf.
Gas storage in the East Region was
358 Bcf on Feb. 25, 9.8% below the
five-year average, and 183 Bcf less
than on Jan. 28, when storage stood at
541 Bcf, 2.9% below the five-year
average. East Region gas storage on
Feb. 25 fell 31 Bcf from a year ago,
EIA reports.
Gas storage in the Midwest stood at
404 Bcf on Feb. 25, 16.0% beneath the
five-year average and 212 Bcf less than
the 616 Bcf in storage on Jan. 28, which
was 7.9% below the five-year average.
Feb 25 gas storage in the Midwest was
67 Bcf less than a year ago.
In the Mountain Region, EIA
continues, gas storage was 96 Bcf on
Feb. 25, 11.9% below the five-year
average and 37 Bcf less than the 133
Bcf stored on Jan. 28, which was 5.7%
below the five year-average. Gas storage
in the Mountain Region was 22 Bcf less
than a year ago.
The Pacific Region's gas in storage
was 164 Bcf on Feb. 25, 9.7% below the
five-year average and 32 Bcf less than
the 196 Bcf stored on Jan. 28, which
was 9.7% below the five-year average.
Pacific Region gas storage on Feb. 25
was down 47 Bcf from a year ago.
In the South-Central Region, gas
storage levels on Feb. 25 were 620
Bcf, 14.8% below the five-year
average and 217 Bcf less than the 837
Bcf in storage on Jan. 28, which was
5.2% below the five-year average. The
Feb. 25 gas storage level for the
South-Central Region was down 50
Bcf from a year ago. ❒
American Oil and Gas Reporter - March 2022

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