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Author Topic: Devon activity  (Read 25050 times)

edwards

  • Posts: 222
Re: Devon activity
« Reply #240 on: November 19, 2013, 05:37:22 PM »
Devon Energy to buy GeoSouthern Energy for around $6B. GeoSouthern a privately held company.
                                                                                  Part of the Blackstone Private Equity Group.

GeoSouthern active drilling and leasing in Livingston County. Devon reported in 2011 having
300,000 acres leases west and southwest of Saginaw Bay. Leasehold resembled a rectangle
turned 45 degrees, centered over Gratiot county including parts of Montcalm, Ionia, Clinton, Saginaw,
Isabella, Midland, Clare, Kent, Shiawassee.

Devon Energy- Recent presentation in Houston- still have $1B of $1.6B drill carry from Sinopac.
                       Ohio Utica listed along with Michigan, Rockies and Mississippian in JV. Info on the last
                       page of Appendix A.

Devon Energy sold fifth play (Tuscaloosa Marine Shale) to Goodrich Energy earlier this year. Goodrich
stepped into the deal for Devon's 66%, Sinopac retains 33%. EnCana named the Tuscaloosa as one
of their 5 primary projects recently. Will GeoSouthern holdings in Michigan be rolled into JV? If Devon did decide to do something with Michigan acreage it would probably go like the Tuscaloosa Shale sale, but with the purchase of GeoSouthern, who knows. GeoSouthern has valuable assets in Texas as well.


isurus

  • Posts: 194
Re: Devon activity
« Reply #241 on: November 19, 2013, 08:17:36 PM »
Well, color me skeptical, but after Devon's display of ineptitude in the last go-round, I'm of the opinion that Michigan would be better off if the GeoSouthern deal falls through.

wilsontownship

  • Posts: 892
  • I am Fracky DAMMIT!
Re: Devon activity
« Reply #242 on: November 20, 2013, 01:09:00 AM »
Well, color me skeptical, but after Devon's display of ineptitude in the last go-round, I'm of the opinion that Michigan would be better off if the GeoSouthern deal falls through.

conspiracy theory alert!

or imagine that Devon's time in MI was an exploratory effort and their salt drilling was a cover.  In reality they learned enough about the MI basin to confirm its value and importance.  So they quietly withdraw making it appear the play is bust (remember Encana and CHK actions).

But behind the scenes they began planning their lease accumulation and return strategy - aha.....they buy GeoSouthern and firmly position themselves back in the MI play with a very solid mineral lease holding, database and experience.

They begin drilling in late 2014 and uncork the identified oil fields and everything busts wide open and goes gang busters!

yep, something like that............hmmmm....

wilson
Charlevoix county:  mineral owner, 40 acres, no lease.  pro-drill.  Live in AZ.

pyro-1955

  • Posts: 762
Re: Devon activity
« Reply #243 on: November 20, 2013, 04:56:56 AM »
And Edwards just posted GeoSouthern just added another 63 leases in Livingston County this month...  So, they obviously plan on doing something here....

I just read an article from Rigzone, their article shows that Devon has agreed to purchase GeoSouthern's Eagle Ford Assetts, it does not appear to indicate that they are buying All of GeoSouthern....  Sounds like GeoSouthern is selling their Texas holdings to potentially fund their Michigan Play???? 

http://www.rigzone.com/news/article.asp?hpf=1&a_id=130224&utm_source=DailyNewsletter&utm_medium=email&utm_term=2013-11-20&utm_content=read&utm_campaign=feature_1
« Last Edit: November 20, 2013, 07:45:39 AM by pyro-1955 »

isurus

  • Posts: 194
Re: Devon activity
« Reply #244 on: November 20, 2013, 07:49:07 AM »
Pyro - that's excellent news.

edwards

  • Posts: 222
Re: Devon activity
« Reply #245 on: November 20, 2013, 08:15:14 PM »
THE NEW DEVON -NOVEMBER 20, 2013.

Not more than 8 days after a Devon Presentation before analysts in Houston, Devon has rolled
out another presentation on the heels of their new acquisition of GeoSouthern acreage and
current oil production in the Eagle Ford

Not sure the new Devon is looking the same as the old Devon did towards Michigan. Unlike the 11/12/13 presentation in Houston, Michigan Basin and Ohio Utica Shale are left off the slide (#20) where Devon references their 2 emerging plays: Rockies and Mississippian/Woodford Shale and their 5 core areas of concentration: Heavy Oil, Canada, Anadarko Basin, Permian Basin, Eagle Ford and Barnett Shale. Sounds a lot like what the EnCana folks just got done saying.

These dreaded words were also spoken. The $6B GeoSouthern deal will be paid for with cash on hand,
borrowing, and "proceeds from monetization of non core assets". They even state their intent to,
"Harvest non-core assets including: 1) Canadian conventionals and 2) Non-core US assets.

Q-4 2013 outlook appears they gain from the deal some oil per day, while giving up nat-gas,
NGL and BOE per day.

Devon has accumulated a lot of acreage in Michigan over the years, 400,000 ac reported (just as
Chesapeake has done-450,000 ac). There hasn't been a whisper of "Michigan for sale",
as was the case with Devon Tuscaloosa Shale and Ohio Utica Shale acreage.(one sold, the
other, Ohio/Utica not currently an active listing on ScotiaWaterous). Chesapeake holdings still
for sale.

For something a little more positive for the Michigan folks, go check out:  www.whiting.com
and click on Investor Presentations. Look at least at the first two presentations.



pyro-1955

  • Posts: 762
Re: Devon activity
« Reply #246 on: November 21, 2013, 06:59:57 AM »
It will be very interesting to see the flow test results on the Walker well, That will most likely be the make or break for the A-1.  I am obviously hoping for a huge make!  By the way, I have played in the stock market a bit, bought Whiting when they bought the play for $43.00 a share, sold it at $66.00 a share and just started buying again as they had a little pull back.  "If" the results here are what I pray they are, I believe their stock will go much higher, their Q4 results the CEO said they will include results from their "3" emerging plays, one of which we know what it is.  Their COO has a webcast they just did on their website, he talks more about the new plays, still sounds promising, the key will be what they find on the Renilt well, as that is on the other end of the play.
« Last Edit: November 22, 2013, 01:06:55 PM by pyro-1955 »

edwards

  • Posts: 222
Re: Devon activity
« Reply #247 on: November 25, 2013, 10:30:08 AM »
This might be all that remains to be observed.

Greer, Schick, Yonkman, Wiley, David's Acres wells...

Noticed in these DEQ well files ( not present in State Richfield file/ no file on Wynalda).

On "devon letterhead" and DEQ "record of well plugging or change of well status form", field name
as written for above wells is-" Poker Chip UTICA"  or "Poker Chip A-1".

Devon included a Well Lifecycle log in files for above wells that was dated 9/17/2013 with the
field name- Poker Chip UTICA. First time this name shows up in files.

The Devon drilling venture in Michigan to date, now known as The Poker Chip UTICA / Poker Chip A-1 field ends up being a 4 or 5 county oil/gas exploration project in central Michigan, named for something used to make a bet. Wonder if that "Poker Chip" is a high roller chip?




pyro-1955

  • Posts: 762
Re: Devon activity
« Reply #248 on: November 25, 2013, 11:34:38 AM »
Ironic, as it appears Devon is not good at playing Poker..  It is fun to see some of the names these E&P companies give new plays.  I have seen a few interesting choices, the Sanilac Play was called "Sparky" initially, now it is called "Steelhead"...

hobojo

  • Posts: 567
Re: Devon activity
« Reply #249 on: December 21, 2013, 12:25:56 PM »
"Poker Chip" is a term used by a Geologist to describe very finely crystalline Black Shale partings in the A-1 Carb.....yep I've got way to much time on  my hands.

isurus

  • Posts: 194
Re: Devon activity
« Reply #250 on: December 21, 2013, 07:51:26 PM »
... the Sanilac Play was called "Sparky" initially, now it is called "Steelhead"...

And Beacon called the same play "Anderson," which I think was a play on the "Sparky" name bestowed by the Peace River Group. 

 


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