When an Arlington man asks for a million bucks for his permission to live within 600 feet in expanding an existing drill site…
…and you hear that he exclaims they (EnerVest) have billions of dollars with no debt…you kinda want to check these things out.
So here is a little EnerVest acquisition history of our (mature) Barnett Shale properties…
Denbury Resources Inc. reported to be selling 60% of it’s Barnett Shale assets by June of 2009 for $270 million to Talon Oil & Gas LLC. And on 12/1/09, Denbury sold the remaining 40% of their working interest in Barnett shale properties to Talon for $210 million.
In February of 2011 ogfa.com reported that Talon would be selling its Barnett Shale oil & gas assets to EnerVest Ltd. for $967 million.
“The majority of the 20,207 held-by-production gross acres acquired from Talon are considered Core to the play with 212 active wells producing 87 million cubic feet per day of gas equivalent from 1.1 trillion cubic feet of gas equivalent in reserves. *Production is 29% natural gas liquids and 71% natural gas with a reserves-to-production ratio of 33 years.”
Do the math….Talon sold Grandpa Barnett to EnerVest and made off with almost $500 million in profit…in two years time.
I suspect that EnerVest may have overpaid for these Barnett Shale assets which peaked the same year that they bought the assets in 2011.
But they weren’t done just yet…EnerVest then acquired the Carrizo Barnett Shale assets in southeast Tarrant county for $236 million……in late 2013…two years after the bust.
EnerVest has invested (967 million + 236 million) literally $1.2 billion dollars in acquiring the grandpa of shales…why does this scare me? The older the well/padsite, the more costly they are to maintain….and keep safe….in our neighborhoods….at UTArlington where my son is to start college next year.
To make things more worrisome, a report confirms that Benzene is not safe even at low levels.
Last summer the air monitor near the EnerVest UTArlington site captured Benzene at 3.3 ppb on August 3, 2014.
*I thought we had “DRY” gas – I understand the wetter the gas, the more Benzene it has…but actually NO amount of Benzene is safe…and when even the “dry” gas arrives at the compressor stations here in our dry gas Barnett Shale, it has to be dehydrated….
What was the higher Benzene reading today, 12/9/14? (long term ESL is 1.41 ppb)…..
6 pm it was .9 ppb then by
7pm it was 1.38 ppb and at
8 pm it was 1.16 ppb