Plains to acquire more Eagle Ford assets in S. Texas

By OGJ editors
HOUSTON, Oct. 5
-- Plains Exploration & Production Co. signed an agreement to acquire from Houston American Energy Corp. its holdings in Karnes County, Tex. Houston American will retain an overriding royalty interest in the assets.

The planned purchase and sale are part of Plains’ announced $578 million acquisition of interests in about 60,000 net acres in the Eagle Ford oil and gas condensate windows in South Texas.

Under the agreement, Houston American will sell to Plains its 2.5% working interest in more than 6,000 gross acres in Karnes County for about $1.65 million cash, less customary closing costs.

As part of the transaction, Houston American will retain a 1.25% of 8/8's overriding royalty interest (ORRI) in this acreage. In addition, Houston American will retain its 1.25% ORRI on any additional acreage Plains acquires within the Prospect Area (about 50,000 gross acres in Karnes County) up until Apr. 2, 2012.



Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs