J-W Operating Co. has acquired oil and gas properties in Northern Louisiana from BHP Billiton. The properties are located in the Elm Grove and Caspiana fields and include interests in 1,200 wellbores and associated gathering lines and compressor facilities. By the addition of 700 active wells that are producing in the Cotton Valley formation, a conventional oil and gas field, the acquisition will result in a significant and immediate increase in production. The acquisition does not include any of BHP's unconventional Haynesville shale assets.
J-W Operating Co. President Tony Meyer said, "This acquisition will fit perfectly into our existing portfolio in the Elm Grove and Caspiana fields and will increase our holdings by over 200 BCF in proven reserves. Our evaluation suggests the potential for horizontal drilling opportunities, as well as increased value through rework of the existing infrastructure."
The terms of the transaction are not being disclosed by the parties.