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(Repsol) -- Repsol and US oil company
SandRidge Energy have reached an agreement for Repsol to buy approximately 1,500
km2 (363,636 net acres) of the Mississippi Lime play, an area rich in gas and
light oil. Repsol will invest USD1 billion and will incorporate reserves and
production from 2012.
Repsol will participate with a 16% and 25% stake respectively in two
areas within the Mississippian Lime deposit, which spans the states of Oklahoma
and Kansas in the USA. Repsol’s share of production is expected to reach a peak
of 90,000 barrels of oil equivalent per day in 2019.
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According to the agreement, Repsol anticipates drilling more than 200
horizontal wells during 2012 and exceed 1,000 wells by 2014, in a fractured
carbonate-rich area of 6,900 km2. Repsol will pay USD250 million in cash at
closing and the remainder in the form of a drilling carry, expected to be
completed in three years, according to current development expectations.
Mississippian Lime has a long production history and proven resources,
rich in light oil and gas produced from fractured carbonates. The area, that has
been in operation for more than 30 years, has extensive infrastructure which
will accelerate the start-up of production and marketing of these
hydrocarbons.
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The deal is part of Repsol’s strategy to diversify its portfolio into
OECD countries. The company is developing in the United States various key
projects contained in its Horizon 2014 strategic plan, including exploration in
the Gulf of Mexico. Repsol also has activities in Alaska, and an LNG import
terminal on the Canadian-US border.
mrcplast.com
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