Talisman, Statoil said to seek buyer for Eagle Ford JV

Talisman Energy (TLM) and Statoil (STO) are considering selling their joint venture in the Eagle Ford basin, which could fetch more than $4B, Bloomberg reports.

TLM is said to have solicited offers last year for its 50% interest in the JV and couldn’t find a buyer in part because STO wasn’t ready to exit.

The report speculates that a sale could draw interest from large exploration companies such as Encana (ECA), Murphy Oil (MUR) and Devon Energy (DVN) that want to acquire more oil-producing properties.

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Comments (8)
  • Veritas1010
    , contributor
    Comments (3344) | Send Message
    Is this a good move for STATOIL? Why exit Eagle Ford???!!!


    Ideas anyone?
    5 May 2014, 06:33 PM Reply Like
  • john001
    , contributor
    Comments (1217) | Send Message
    RDS (shell) bailed (big write-down) out of the eagle ford play a few months back because they couldn't make an economic go out of it. I wonder if the play is over-hyped??
    5 May 2014, 06:45 PM Reply Like
  • DevilDog85
    , contributor
    Comments (266) | Send Message
    COP holds a lot of acreage in the Eagle Ford. I don't believe for a minute it is over-hyped.
    5 May 2014, 10:21 PM Reply Like
  • DevilDog85
    , contributor
    Comments (266) | Send Message
    As you know STO is a well managed company. Nothing to worry about here. STO has lots of cash so maybe they plan on a very large acquisition.
    5 May 2014, 10:18 PM Reply Like
  • Hendershott
    , contributor
    Comments (1831) | Send Message
    COP doesn't think it's overhyped.
    5 May 2014, 10:18 PM Reply Like
  • st.andrew
    , contributor
    Comments (21) | Send Message
    Wishful thinking : STO watches ECA buy the Eagle Ford while ECA takes a hit,then pounches on ECA and takes it over .. lol.
    5 May 2014, 11:10 PM Reply Like
  • Maobama
    , contributor
    Comments (508) | Send Message
    I don't think this is anything more than TLM trying to monetize an asset. STO as JV partner can either sell or keep their acreage. Selling the play in it's entirety clearly seems to be the goal here.


    I also don't think EF is over-hyped.
    6 May 2014, 12:12 PM Reply Like
  • Oil_Guru
    , contributor
    Comments (8) | Send Message
    First off this deal will never go through unless sto and tlm can get a top dollar offer. Sto has big Williston Basin operations that trump what they are doing in the eagle ford and its a jv. Sto doesnt need to sell, you are correct about tlm monetizing there asset prolly because of carl icahn demanding returns. And lastly The eagleford shale play oil & volatile oil windows are some of the best shale plays in terms of consistent repetition and d&c costs. The williston basin has bakken and three forks formations and have strong oil yields with shallow declines, however D&C costs are over 1 mil more on average compared to the EF. If you doubt the EF just take a look at an EOG operations update, EOG is the big dog there with over 600k acres. Then look at a swift energy earnings release there the smallest player there but there well results are excellent also !
    22 May 2014, 04:25 PM Reply Like
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