Edge Petroleum adds Anadarko Chapman stake
Edge Petroleum Corp. is set to boost its holdings in the Chapman Ranch oil and gas properties by acquiring the portion of the field owned by Anadarko Petroleum Corp.
The value of the deal is about $26 million, financed through the company’s credit facility.
The transaction follows Edge’s 2005 acquisition of an approximate 50 percent non-operated working interest in the field, located in Nueces County, from three private companies.
Houston-based Edge currently owns working interests ranging from 44 percent to 50 percent in seven producing wells in the field. The divestiture by Houston-based Anadarko gives Edge added working interests of 44 percent to 50 percent in nine natural gas wells with a production rate of 3.6 million cubic feet equivalent. Anticipated closing date is Dec. 28.
“This acquisition gives us control over the exploitation and future development of an important asset. We acquired our initial ownership in this field because we believed there was considerable upside potential remaining in the field and surrounding area that we wanted to capture,” said John Elias, Edge’s chairman, president and CEO. “Currently, we estimate there are at least 10 proved undeveloped locations to be drilled plus additional locations that we expect to verify with (our) new 3D seismic and our 2007 planned drilling program.”
Published December 13, 2006 by the Houston Business Journal