Adventure Energy Inc., St. Petersburg, Fla., (OTCBB: ADVE) plans to acquire a 50% working interest (39% net revenue interest) in the Petrowarrior-Stout recompletion project in Pottawato­mie and Seminole counties, Oklahoma, from Buccaneer Energy for an undisclosed price.

The project consists of 13 previously drilled and completed wells which will be reworked over the coming months and one water disposal well. Included in the project is the option to drill up to five new wells. The rework project was expected to begin before the end of June with the goal of completion over the next nine months.

Alder Resources Ltd., Toronto, (Toronto Venture: ALR) plans to sell its 15% working interest in seven producing gas wells in West Virginia to an undisclosed buyer for an undisclosed price.

The company reports the wells have produced at rates much lower than anticipated and natural gas prices are lower than at the time it agreed to participate in the drilling. “The cash sales price…will, unfortunately, be significantly less than the company’s original costs,” Alder said in a release, but “it is management’s belief that the company and its shareholders will get better value by receiving and applying the cash proceeds that are expected to be received than retaining the wells.”

In January 2008 Alder acquired a 15% working interest in a seven-well gas drilling program on leases in Cabel, Mason and Jackson counties in West Virginia from Epsilon Energy USA Inc., a subsidiary of Epsilon Energy Ltd.

American Natural Energy Corp., Tulsa, Okla., (Toronto Venture: ANR) plans to acquire interest in producing wells and leasehold rights in the Bayou Couba Field in St. Charles Parish, Louisiana, from Houston-based Dune Energy Inc. (Amex: DNE) for a deal value of approximately $9 million in debt and cash in a move to settle liabilities between the companies.

American Natural will repurchase and retire $7.8 million, plus accrued and unpaid interest, of its 8% secured debentures held by Dune. It will also assign a portion of certain deep rights and pay Dune a total of $1.3 million with $1 million due at closing and an additional $300,000 due in quarterly payments beginning 90 days after resuming operations of the field.

Mike Paulk, American Natural CEO, says, “The agreement clears a significant amount of liabilities from our balance sheet and provides us with a platform to continue development of our assets identified above the Bayou Couba salt dome while preserving our opportunities in the potential deeper sub-salt play. We have a number of shallow oil prospects identified which we intend to drill as soon as practicable following the closing.”

He says the transaction will be funded through either industry participation or private placement financing. Closing is expected by the end of July.

American Petro-Hunter Inc., Scottsdale, Ariz., (OTCBB: AAPH) plans to acquire a 25% working interest in the Victory gas project in the Sacramento Valley of California from an undisclosed seller for $142,000.

The Victory gas project is approximately 20 miles south of Sacramento and within the Eastside stratigraphic trend. It encompasses 668 gross acres and has potential of 8 billion cubic feet of gas. Gas is indicated at depths of 7,900 feet over a pay thickness of 20 feet. The exploratory well planned will be testing Winters sands. The company plans to spud a well in late July.

American Petro-Hunter Inc., Scottsdale, Ariz., (OTCBB: AAPH) plans to acquire a 25% working interest for the Brinkman oil prospect in Clark County, Kansas, from S&W Oil & Gas LLC, Wichita, Kan., for $22,800. The prospect, 20 miles south of Dodge City, is 1,760 acres straddling the Clark-Meade County line and targets the Marmaton limestone with secondary objectives in the Morrow sand. The prospect contains a potential multi-well program with the first well, #1 Lee 18AB, to spud around July 15.

Apache Corp., Houston, (NYSE: APA) has closed its acquisition of nine Permian Basin oil and gas fields in New Mexico and West Texas from Marathon Oil Corp., Houston, (NYSE: MRO) for $181.1 million.

Assets include operated production in Lea County, New Mexico, and Reagan, Howard and Sterling counties in Texas, as well as Marathon’s interests in the Chenot/Putnam area in Pecos County, Texas. Current net production is 10 million cubic feet of gas, 1,332 barrels of oil, and 524 barrels of gas liquids per day for a total 3,500 barrels of oil equivalent per day. The newly acquired properties have 16 wells per section.

“Apache has a long track record of increasing production from mature fields in the Permian Basin,” says John Crum, Apache co-chief operating officer and president – North America. He adds that 75% of the proved reserves and 61% of the current production directly offset the Apache-operated Northeast Drinkard Unit in Lea County, New Mexico.

Prior to the acquisition, Apache’s net production in the Permian Basin was 34,500 barrels of oil and 86 million cubic feet of gas per day.

The effective date is Jan. 1.

Occidental Petroleum Corp., Los Angeles, (NYSE: OXY) plans to acquire Marathon’s remaining operated assets and a portion of the outside-operated assets in the Permian Basin for approximately $114 million in a deal conducted simultaneously with Apache.

Together with the Apache acquisition, the assets include 100% of Marathon’s interests in Indian Basin Field and the Indian Basin gas plant, as well as Marathon’s company-operated properties in Burton Flats and Travis fields in Eddy County, New Mexico; 100% of Marathon’s interests in company-operated Permian Basin assets in Lea County, New Mexico, and in Reagan, Howard and Sterling counties in Texas; and all of Marathon’s interests in the Chenot/Putnam area in Pecos County, Texas.

Total net production of Marathon assets being sold in the two deals averaged 8,150 barrels of oil equivalent per day in first-quarter 2009.

Marathon president and chief executive Clarence P. Cazalot Jr. says, “We have announced asset sales with transaction values totaling approximately $1.6 billion since launching our asset review and divestiture program in March 2008. It’s anticipated this program will generate $2 billion to $4 billion on a pretax basis, with additional announcements expected by mid-2009.”

In April, Marathon completed the sale of subsidiary Marathon Oil Ireland Ltd. to PSE Ireland Ltd., a subsidiary of Petroliam Nasional Berhad (Petronas) for $180 million.

Internet-marketing firm BayHill Capital Corp., South Jordan, Utah, (OTCBB: BYHL) is making a strategic leap into oil and gas with plans to acquire 12,600 acres in Utah from five separate sellers for undisclosed prices in stock.

Properties to be acquired from Genesis Energy Holdings Ltd., known as the Grassy Trails Field, with a total of 5,630 acres, has seven wells producing from the Moenkopi A at approximately 3,745 feet. There is additional potential production from in the Moenkopi B and C zones and from the Sinbad formation at 3,900 feet. A carbon dioxide reservoir is present in the Navajo formation.

Properties to be acquired from Pacific Energy & Mining Co. (Pink Sheets: PEMC), known as the Greater Cisco Field with a total of 4,020 acres, has five wells producing from the Mancos, Dakota and Morrison formations at depths from 300 feet to 1,100 feet. There is additional potential production from these formations and from the Deeper Entrada formation at 3,000 feet.

Properties to be acquired from Nathan Oil LLC, known as the Cisco Springs Field, with a total of 1,440 acres, has four wells producing from the Morrison formations at depths from 1,500 feet to 1,900 feet. There is additional potential production from the Dakota formation at 1,500 feet.

Properties to be acquired from Cisco Oil LLC, known as the Cisco Townsite Field, with a total of 100 acres, has two wells producing from the Dakota and Morrison formations at depths from 500 feet to 900 feet.

Properties to be acquired from Retamco Operating Inc. include the exploratory South Monument Butte prospect with 640 acres and no production. Target formations are the Green River at 5,500 feet and Mesaverde at 12,500 feet. Bayhill will also acquire the South Gordon Creek prospect with potential from the Ferron sandstone.

BayHill has determined to pursue a strategy of engaging in the production, exploration, development and acquisition of oil and gas reserves in the Rocky mountain region of the Western U.S.

Bill Barrett Corp., Denver, (NYSE: BBG) has acquired a 90% working interest in approximately 40,300 undeveloped acres in Cottonwood Gulch, the former Naval Oil Shale Reserve #1, in the Piceance Basin of western Colorado from an undisclosed seller for $60 million.

The properties are adjacent to the Rulison and Parachute fields on federal lands with an 87.5% net revenue interest and 10-year leases issued in 2008. The company estimates the acquisition adds more than 2 trillion cubic feet equivalent of probable and possible resources.

Bill Barrett chairman and chief executive Fred Barrett says, “The combination of material resource potential, a contiguous lease position, attractive commercial terms and proximity to infrastructure make this acquisition unique…Our company is exceptionally positioned to execute efficiently in this area, having pioneered operations and geologic concepts that unlocked the vast potential in the Piceance. We have long recognized the potential of these lands.” Barrett says the acquisition is expected to more than triple the company’s current 3P (proved, probable and possible) resource estimates in the Piceance to more than 3 trillion cubic feet equivalent.

Development of the acreage position is being coordinated with the Department of Interior and Bureau of Land Management and is expected to begin as early as next year.

Bill Barrett financed the acquisition with its bank line of credit. Following this acquisition, availability under the company’s credit facility was $294 million.

Valuing the package at $1,489 per acre, Stifel, Nicolaus & Co. Inc. anaylyst Michael Hall says the purchase price “compares nicely to the August 2008 Roan Plateau lease sale which went for $2,383 per acre, assuming an equal net revenue interest of 87.5%.”

Matt McCarroll and Mike Moreno’s privately held, Houston-based Dynamic Offshore Resources LLC has closed its acquisition of substantially all of the U.S. assets of Bayou Bend Petroleum Ltd., Vancouver, (Toronto Venture: BBP) in a deal valued at up to US$20.5 million.

Dynamic Offshore paid US$12.5 million in cash at closing and may pay up to US$8 million on April 1, 2011, based on the increase in proved reserves as of Dec. 31, 2010, above a specified threshold, at a rate of US$0.20 per Mcfe.

Bayou Bend, a member of the Lundin Group of Companies, holds shallow water oil and gas exploration leases near Marsh Island in Louisiana onshore and offshore the Gulf of Mexico, including a 35.6% participating interest in two areas. The company also holds several outer continental shelf exploration blocks.

Production is approximately 800 net barrels of oil and gas equivalent per day. Proved developed reserves as of Feb. 1, 2007, were 260 million cubic feet of gas and 1,890 barrels of gas condensate and proved and probable reserves were 8.4 billion cubic feet of gas and 2,710 barrels condensate.

Bayou Bend president Keith Hill says, “Upon closing of the transaction, the company will have a very strong cash balance exceeding C$60 million. This represents a clear advantage for Bayou Bend in these currently challenging markets and allows the company to pursue the wealth of distressed, undervalued resource opportunities available today.”

Canaccord Adams was advisor to Bayou Bend.

In July, Dynamic Offshore received a $450-million equity commitment from New York-based private-equity firm Riverstone Holdings and New York-based global private equity firm The Carlyle Group. The company focuses on producing properties in the Gulf of Mexico.

London-based Empyrean Energy Plc (London AIM: EME) plans to acquire a 10% working interest in the Riverbend project in Tyler and Jasper counties, Texas, from Houston-based Krescent Energy Partners II LP in a deal valued at approximately US$2.3 million.

The project area involves approximately 40,000 acres under lease or exclusive option and an area of mutual interest totaling 50,000 acres. The main targets are the Austin chalk and Saratoga chalk plays. Additional upside exists in the Wilcox and Yegua sand formations where Krescent has identified three separate prospects. The project comes with access to 60 square miles of Krescent’s proprietary 3-D seismic coverage in the project area. Krescent began drilling for the Austin chalk zones in the area in July 2008.

Empyrean will earn its 10% interest by reimbursing Krescent for 10% of the land costs for about US$1 million, plus 10% of original cost estimate to drill the Quinn 3-H for about US$1 million and then paying 10% of the cost to re-enter Quinn 3-H and drill and complete the horizontal section for about US$300,000. Empyrean will then pay 13.33% of costs to earn a 10% interest on the second, third and optional fourth well before paying 10% of costs thereafter on those wells and any future wells drilled.

Empyrean executive director Tom Kelly says, “The attraction of being able to secure a 10% interest in a project of this size during the drilling of the first test well after high pressure gas has already been confirmed is very compelling. This is a ‘must do’ deal for Empyrean and we look forward to drilling operations re-commencing and updating the market on future results.”

The MLP Encore Energy Partners LP, Fort Worth, Texas, (NYSE: ENP) has closed its acquisition of producing properties in the Williston Basin in Montana and North Dakota from parent company Encore Acquisition Co., (NYSE: EAC) for $25.8 million in cash.

The properties produce from 13 different fields and include more than 100 producing wells. The properties have estimated total proved reserves of approximately 2 million barrels of oil equivalent (93% proved developed producing, 80% oil). The properties currently produce approximately 419 barrels equivalent per day.

Jon S. Brumley, chief executive and president of Encore Energy Partners GP LLC, says, “The Williston properties are long-life and oily. Because the Williston assets are in 13 different fields, it greatly increases ENP’s footprint in the Williston. This will allow the partnership to take advantage of yet-to-be discovered zones and future technological enhancements.”

Brumley adds, “Having high-margin, long-life properties and a large parent makes us unique and has created a resilient MLP that is able to take advantage of this uncertain market. We are fortunate to have this relationship with EAC.”

The effective date is April 1.

Simmons & Co. International and Griffis & Associates LLC were financial advisors to Encore Energy’s conflicts committee, and Simmons delivered a fairness opinion. Barclays Capital was financial advisor and rendered a fairness opinion to Energy Acquisition’s board.

Encore Energy holds interests in the Big Horn Basin in Wyoming and Montana, the Williston Basin in North Dakota, the Permian Basin in West Texas, and the Arkoma Basin in Arkansas.

EnerJex Resources Inc., Overland Park, Kan., (OTCBB: ENRJ) has entered into an agreement with Kansas-based Pharyn Resources to begin a 20-well development program on EnerJex’s Brownrigg lease in Linn County, Kansas. EnerJex will contribute the 320-acre property in exchange for a 10% carried working interest and a cost-plus management fee. Pharyn will contribute up to $700,000 in initial development capital. EnerJex will develop the project and remain operator.

EOG Resources Inc. (NYSE: EOG) plans to farm in to 13 new Barnett shale wells in North Texas on property owned by Universal Property Development and Acquisition Corp., Houston, (Pink Sheets: UPDV) for an undisclosed price.

UPDA indicates the transaction will include an upfront cash payment from EOG, which will pay for all drilling expenses, and a royalty retained by UPDA. EOG reports estimated reserves of 6.5 billion cubic feet of gas on 2,700 acres.

UPDA chief executive Tim Brink says, “At an average price of $4 per Mcf, that is at least $26 million in revenue we will be sharing.”

He says UPDA will retain all production from existing wells on the property.

Epsilon Energy Ltd., Concord, Ontario, (Toronto: EPS) has closed its divestiture of its Amber Bank and Blue Jacket properties in West Virginia to an undisclosed buyer for US$14 million.

The company initially acquired a nonoperating interest in these properties, known as the Legacy assets, during 2006, prior to its initial public offering in 2007. Epsilon intends to redeploy proceeds into its Marcellus shale projects in Pennsylvania and New York, where it is the operator.

Zoran Arandjelovic, Epsilon chairman and interim president and CEO, says, “This transaction enables us to aggressively continue our Marcellus shale development program, where we recently initiated natural gas production from one horizontal well, have 8.5 million cubic feet a day from three wells ready to come on line in the next 30 to 60 days, and four additional wells scheduled to be fraced. We now expect to significantly increase our daily natural gas production by having all of the eight wells drilled to date on our Highway 706 Marcellus shale project online during the third quarter of this year from existing capital resources without incurring any long-term debt.”

Epsilon has operations in North America, the Middle East and Africa.

EV Energy Partners LP, Houston, (NasdaqGS: EVEP) plans to acquire the remaining interest in Central Texas properties from an undisclosed seller for $12.2 million.

The assets include a 15.15% additional interest in 276 wells producing primarily from the Austin chalk formation in six counties. EV Energy currently owns an 84% interest of the wells to be acquired. Some 185 of the wells are operated by the seller, and 48 are operated by EV Energy’s parent company EnerVest Ltd.

Estimated net proved reserves as of April 1 are approximately 9 billion cubic feet equivalent (60% proved developed producing; 92% gas). Net daily production is 1.8 million cubic feet equivalent. The reserves-to-production ratio is 13.9 years. Upside includes 30 identified proved undeveloped locations, most of which will be drilled at lower cost through reentering existing well bores.

EV Energy chairman and chief executive John B. Walker says, “The Austin chalk is EnerVest’s largest and most successful area of operations. This new acquisition offers many new locations and re-entry possibilities into the 276 wellbores that have unexploited chalk potential.” He adds the company intends to hedge a substantial portion of the acquired production volumes.

The company plans to publicly offer 3.5 million units to pay debt and fund the acquisition of Texas Austin chalk assets. The units are currently trading at US$20.30 each. Wachovia Securities, Citi, Raymond James and RBC Capital Markets are joint book-running managers.

Closing is expected by July 1. EV Energy Partners is an E&P master limited partnership.

FieldPoint Petroleum Corp., Austin, Texas, (Amex: FPP) has acquired a working interest in the South Vacuum Field in Lea County, New Mexico, from an undisclosed seller for $1 million.

The assets include 25% to 50% working interest in four gas wells. FieldPoint estimates a deal value of approximately $1.54 per Mcfe proved and will replace approximately 152% of the company’s 2009 anticipated production.

Forest Gate Resources Inc., Montreal, (Toronto Venture: FGT) has canceled plans to acquire 90% each of privately held Houston-based companies Atlantis Deepwater Production Inc. and Impact Exploration & Production LLC, both affiliated with Scotland-based Angus Energy LLP, for an undisclosed price in stock. No reason was given for the termination.

The assets include interests offshore and onshore Louisiana and Texas. Atlantis and Impact were established by Jonathan Tidswell, president of Angus Energy.

Atlantis had signed an agreement Feb. 26 to acquire interests ranging from 57.3% to 100% in the High Island 98-L (HI-98L) project in Gulf of Mexico off the coast of Texas. According to Atlantis, HI-98L produced 600 barrels of oil per day before being shut-in in September 2008. HI-98L currently consists of five well bores and a single processing platform with multiple primary separation and measurement components, secondary processing facilities, and sales measurement readings.

Five wells have been drilled and completed with two wells capable of immediate production. According to Atlantis, production could re-commence at HI-98L as early as August with optimization and acceleration possible. The HI-98L field is in 40 feet of water and encompasses multiple state leases on High Island 98L and a federal lease on the opposite side of the three-league line in the same block.

Atlantis would have acquired HI-98L for US$500,000 plus the assumption of the seller’s share of plug and abandonment liability.

Forest Gate reports that it remains interested in High Island 98-L, as well as the gathering system and terminal that complements it, and would continue to pursue a merger with a company with a qualified operations and technical team.

GeoResources Inc., Houston, (Nasdaq: GEOI) has acquired additional working interests in Giddings Field in Texas from an undisclosed associated partner for $48.4 million.

GeoResources acquired undivided working interests in 68 producing wells, increasing working interests from 6.5% through 7.8% to approximately 34% to 37%. Estimated proved reserves of the acquired interests are 25 billion cubic feet equivalent (88% gas, 73% developed). Production is 10.6 million cubic feet and 85 barrels of liquids per day. GeoResources remains operator and general partner.

In addition, the increase in the company’s partnership sharing ratio from 2% to 30% adds approximately 13.2 billion cubic feet plus 5.6 million cubic feet and 45 barrels of liquids per day.

The acquisition provides additional development opportunities and exposure to upside associated with the Eagle Ford shale and other prospective targets.

The acquisition was funded with borrowings from the company’s senior secured revolving credit facility. GeoResources hedged 1 billion cubic feet for the remaining six months of 2009 and 1.4 billion cubic feet for 2010 at $5.155 per Mcf.

GeoResources chief executive Frank A. Lodzinski says, “Our acquisition in the Giddings Field coupled with our recently announced acquisition in the Williston Basin Bakken shale has provided the company an opportunity to increase its interests appreciably in two core operating areas. Further, the acquisitions provide immediate increases to proved reserves, production and cash flow, and significantly expand our drilling and development inventory.”

He adds that certain projects may be deferred in favor of drilling on the acquired acreage or additional attractive acquisitions of productive assets or acreage. “Much of our prior drilling inventory is held by production and, accordingly, we have been positioned to take advantage of attractive acquisition opportunities and modify our capital spending without fear of losing acreage.”

The effective date is May 1.

GeoResources is focused in the Southwest, Gulf Coast and the Williston Basin.

GeoResources Inc., Houston, (Nasdaq: GEOI) and privately held joint-venture partner Slawson Exploration Co. have acquired producing wells and acreage in the Bakken shale trend of the Williston Basin from Windsor Bakken LLC for $10.4 million.

Northern Oil & Gas Inc., Wayzata, Minn., (Amex: NOG) and privately held Lario Oil & Gas Co. were also participants in the acquisition. Northern also announced last week it has acquired assets from Windsor Bakken for $7.3 million in cash.

The assets acquired by GeoResources include a 15% interest in approximately 60,000 net acres, and also 15% of varying working interests in 59 producing and productive wells. Net proved producing reserves are 300,000 barrels of oil equivalent. Net daily production is approximately 180 barrels of oil per day.

Pro forma, GeoResources has working interests in the area from 10% to 15% in approximately 100,000 net acres. Of those total acres, approximately 59,000 net acres are in Mountrail County, with the remainder in adjacent North Dakota counties and in Richland County, Montana.

The joint venture is presently running one drilling rig and plans to add two rigs in July and possibly a fourth drilling rig by first-quarter 2010. GeoResources expects to drill or participate in 45 to 50 wells over the next 18 months with an average net working interest of approximately 7%.

Frank A. Lodzinski, GeoResources chief executive, says, “This acquisition allows the company to increase its interest appreciably in a core and exciting operating area. It adds immediate proved reserves and production and significantly expands our drilling and development inventory.”

GeoResources funded the deal with cash and debt. The effective date is April 1. GeoResources holds interests in the Southwest, Gulf Coast and the Williston Basin.

An undisclosed buyer plans to acquire Bakken shale properties in North Dakota from Oklahoma City-based Gulfport Energy Corp. (NasdaqGS: GPOR) for $13 million.

The assets include approximately 12,270 net acres and approximately 190 net barrels of oil equivalent per day. Gulfport will retain approximately 6,740 net acres, interests in four gross wells, and up to a 7.5% overriding royalty interest in the leases sold, proportionately reduced to Gulfport’s ownership interest in each lease after delivering an 80% net revenue interest to the purchaser.

Gulfport chief executive Jim Palm says, “We are pleased to have realized this opportunity to monetize our shorter-term leases while still maintaining a presence in the Bakken.”

Gulfport plans to use proceeds from the sale for general corporate purposes. The effective date is April 1.

Gulfport operates along the Louisiana Gulf Coast and the Permian Basin in West Texas, the Williston Basin in North Dakota, and holds a position in the Alberta oil sands in Canada through its interest in Grizzly Oil Sands ULC.

Privately held Indigo Minerals LLC, Houston, plans to acquire producing properties, undeveloped acreage and certain midstream assets in the Ark-La-Tex region from Chesapeake Energy Corp., Oklahoma City, (NYSE: CHK) for $218 million in cash.

The assets include 519 producing wells in more than 60 fields in North Louisiana, East Texas and Arkansas along with 40,000 undeveloped acres, bringing the total acreage position involved in the transaction to above 122,000 net acres. Chesapeake will retain the deep rights including the Haynesville shale formation and below.

The midstream assets involve gathering systems directly associated with the Chesapeake operated producing fields.

Production is approximately 26 million cubic feet per day net. Indigo will take over operations in 219 Chesapeake wells and will gain a working interest in another 300 nonoperated wells in the region. The operated properties represent about 85% of the transaction value and Indigo plans to drill hundreds of development wells in the future within existing well units and on the largely contiguous 40,000 net undeveloped acres also being acquired, the company reports.

The acquisition will make Indigo one of the largest private E&P companies in the onshore Gulf Coast region, with pro forma net production approaching 40 million cubic feet equivalent per day and total proved reserves of 220 billion cubic feet equivalent and more than 150,000 net leasehold acres in North Louisiana, East Texas, Alabama and Arkansas. Additionally, the company owns 635,000 net fee mineral and royalty acres primarily in the Upper Gulf Coast.

Indigo was formed in late 2006 as a venture between Yorktown Partners, the Martin Companies, Bank of America Capital Investors and Indigo Management. The effective date is March 1. Closing was expected by June 30.

Stifel, Nicolaus & Co. Inc. analyst Michael A. Hall says the acquisition cost implies transaction multiples of $1,787 per acre, $8,385 per flowing Mcfe and, based on the company’s 2008 PDP R/P ratio of 9.6 years, $2.40 per Mcfe. “We view the announcement as a positive for Chesapeake as it marks another step in the company’s plan to add liquidity to its balance sheet.”

KA Compass LLC, an affiliate of Kayne Anderson Energy Funds, has acquired a 40% interest in the Panther Creek project in Lee County, Texas, from Houston-based privately held Compass Resources Operating LLC, a Natural Gas Partners portfolio company, for an undisclosed price.

Compass holds approximately 21,000 gross acres targeting the Navarro, Austin chalk, Georgetown and Edwards trend plays in Panther Creek with two existing producing wells. In addition to cash consideration, KA Compass will also participate in drilling four wells beginning this summer to further develop the project.

Additionally, Kayne Anderson has joined Natural Gas Partners in an equity commitment to Compass Resources II LP.

Compass Resources focuses on low-risk resource plays and special situation opportunities in conventional fields in the Rockies and Texas, including approximately 87,000 gross acres in Wyoming and the Rocky Mountain shale plays.

Leed Petroleum Plc (London Aim: LDP) plans to acquire the Ship Shoal 202 “A” platform in the Gulf of Mexico from an undisclosed seller for assumption of an estimated abandonment liability of no more than $2 million and Leed will receive $200,000 from the former owners.

Leed intends to use the platform to access the company’s prospects and development targets on both Ship Shoal Block 201 and Ship Shoal Block 202. Additionally, if a successful well is drilled on Ship Shoal Block 197, immediately to the north of Ship Shoal Block 202, production would be handled from this platform.

Byron Energy Inc. will have the right to participate in the acquisition as partner in a joint-operating agreement.

Howard Wilson, Leed president and chief executive, says, “The purchase of the Ship Shoal 202 A platform significantly improves the economics of the Ship Shoal 197, 201 and 202 drilling program by reducing development capital and cycle time to first production.” He adds that Leed now holds 15,000 gross acres in this area of the Gulf.

Citing cash-flow constraints resulting from hurricanes Gustav and Ike combined with the collapse of oil prices, Mesa Energy Inc., Dallas, (Pink Sheets: MSEG) has transferred ownership of subsidiary Poydras Energy Partners LLC to its prior owners at no cost in exchange for a release of any responsibility for the liabilities and contractual obligations of Poydras.

Mesa acquired Poydras, a Louisiana operating company, in January 2008, from a public company focused on the deep water. Poydras held a 30% interest in the Main Pass 35 project in Placquemines Parish, Louisiana, which had been producing 150 barrels of oil per day prior to being shut down in advance of Hurricane Katrina. While the wells were undamaged in the hurricane, the processing facility suffered significant damage and was being repaired at the time of purchase. As of year-end 2007, net proved developed nonproducing reserves were 109,000 barrels of oil and total proved reserves were 162,000 barrels of oil and 54 million cubic feet of gas.

As a result, Mesa will no longer be involved in the Main Pass 35 project or the IP #1 well. The effective date is June 1.

Mesa chief executive Randy M. Griffin says, “Although we are very disappointed with the outcome of these efforts, we believe it is in the best interest of Mesa and its shareholders that we take this action and move forward with the implementation of our business plan.”

Huntsville, Tenn.-based Miller Petroleum Inc., dba Miller Energy Resources, (OTCBB: MILL) has acquired more than 35,000 acres in the Chattanooga shale in Tennessee from privately owned Ky-Tenn Oil Inc. for an undisclosed price. The deal involves 173 producing wells. Miller CEO Scott M. Boruff says, “This is the first of many acquisitions that we anticipate closing this year. This asset acquisition more than doubles our oil production and more than triples our natural gas production and our Chattanooga shale lease acreage holdings.”

Dallas E&P Morgan Creek Energy Corp. (OTCBB: MCKE) plans to acquire a 60% interest in an 85% interest held by Bonanza Resources Corp., Vancouver, British Columbia, (Toronto Venture: BRSUF) in the North Fork 3-D prospect in Beaver County, Oklahoma, for $2.4 million in exploration and drilling expenditures to be paid over a one-year option period.

Bonanza Resources acquired an 85% interest in 8,500 acres (67% net revenue interest) in the North Fork 3-D prospect from Radiant Energy LC and Ryan Petroleum LLC in February.

Morgan Creek has operations in the Frio Draw project in Curry County, New Mexico, and in the Ouachita trend project in McLennan County, Texas. Bonanza has interests in Oklahoma and Texas.

Northern Explorations Ltd., Scottsdale, Ariz., (OTCBB: NXPN) has acquired a working interest in a West Texas gas production play from Switzerland-based Dominus Energy AG in exchange for drilling costs of future wells.

The deal involves a 63% working interest (47.5% net revenue interest) in 22 producing gas wells near Ozona in Crockett County encompassing 9,000 acres. Northern Exploration will pay 100% of the cost of drilling and completion of 20 wells in exchange for its interest.

Northern Exposure has majority working interests in gas assets in California and Alberta.

Northern Oil and Gas Inc., Wayzata, Minn., (Amex: NOG) has acquired North Dakota Bakken assets from Windsor Bakken LLC for $7.3 million in cash.

Northern Oil acquired a 5% interest in 60,000 undeveloped acres (3,000 acres net), which it plans to develop with privately held Slawson Exploration Co. Inc. The acreage includes several Parshall Field wells that Northern Oil believes offer significant infill drilling opportunities.

The transaction also involved a 14% interest in 59 existing Bakken and Three Forks wells in North Dakota, including approximately 1,200 barrels of oil production per day and 300,000 barrels of proven producing reserves.

Under the exploration and production agreement with Slawson, Slawson as operator is expected to drill up to 45 gross Bakken wells on the newly acquired acreage through 2010. Drilling will likely be focused on approximately 23,000 core Bakken acres in Mountrail County, encompassing a significant portion of Northern’s existing core Bakken acreage.

Michael Reger, Northern Oil chief executive, says, “This new acreage is highly complementary to our existing acreage position, especially in Mountrail County, and we expect a significant number of the wells to be drilled on the undeveloped portion to include acreage Northern currently controls. We believe the addition of such acreage, together with the increased borrowing base under our CIT facility, will enable Northern Oil to continue to aggressively execute its development plans within a highly productive area of the Bakken. This acquisition of production and reserves, at a very compelling value, represents the types of opportunities we have been targeting in the current market environment.”

Northern Oil primarily focuses on the Williston Basin Bakken and Three Forks/Sanish trend.

Precision Petroleum Corp., Oklahoma City, (OTCBB: PPTO) plans to acquire Jessica #23A in Section 5, T6N-R6E, in Seminole County, Oklahoma, from an undisclosed seller for an undisclosed price. The well produces oil from the Thurman sand. The company plans to recomplete a gas-bearing zone up-hole in the Calvin sand.

Precision also has acquired an interest in Karsyn #1 in Seminole County, Oklahoma, from an undisclosed seller for an undisclosed price. The well is on 20 acres in the SE/4, Section 20-8N-8E and produces from the Hunton limestone.

The company has acquired an interest in Heath #1, a Hunton limestone well in Seminole County, Oklahoma, from an undisclosed seller for an undisclosed price. Heath #1 is in South Wewoka Field in SE/4, section 31-T8N-R8E. Heath #1 had attained maximum flow rates of 85 barrels of oil per day and has been cut back to approximately 30 barrels and 30,000 cubic feet of gas per day. The company plans to drill to test a possible Cromwell sandstone well.

Precision has acquired an 88% working interest in White No. 12-1 Well in Pottawatomie County, Oklahoma, from an undisclosed seller for an undisclosed price. The White well produces 300 barrels of oil per month from the Hunton limestone.

Privately held Puckett Land Co., Greenwood Village, Colo., has canceled its plans to acquire a 12.5 % nonoperated working interest in the Piceance Basin in western Colorado from Teton Energy Corp., Denver, (Nasdaq: TEC) for $10.3 million.

Puckett reported the deal was canceled in relation to unresolved obligations by Teton under the purchase agreement. Teton’s assets include a 12.5% nonoperated working interest in approximately 789 net acres in the Garden Gulch development in Garfield County. Production is approximately 4.1 million cubic feet equivalent per day.

Matt Wurtzbacher, Puckett president, says, “PLC elected termination per the terms specified in the agreement, although this was not the outcome we desired. We will continue to pursue our strategy of developing our existing Piceance Basin assets and acquiring high-quality, complementary assets using our new $120-million credit facility.”

Puckett’s primary reserves and producing properties are in Garfield and Rio Blanco counties, Colorado.

Teton has retained RBC Richardson Barr as financial advisor. See On The Market in this issue.

ReoStar Energy Corp., Fort Worth, Texas, (OTCBB: REOS) plans to acquire interest in the Eagle Ford shale play in South Texas from an undisclosed seller for $5.5 million.

The assets include a 75% net mineral interest in 13,000 acres covering all depths for three years. The transaction also grants ReoStar the right to acquire an additional 30,000 acres of surrounding leasehold within an area of mutual interest (AMI) known as the Hackberry Prospect and includes access to 44 miles of seismic data.

The company estimates potential reserves of 500 billion cubic feet equivalent, with individual well bore reserves ranging from 6 billion to 11 billion equivalent. Test wells will be drilled in both the Eagle Ford and Edwards zones and estimated drilling and completion costs range from $4.5 million to $5.5 million per well, respectively, the company reports.

A nearby operator recently completed #1-H Butaud into the Eagle Ford shale, which initially tested at 17.5 million cubic feet and 2,500 barrels of condensate per day. Other operators in the area have reported initial production rates ranging from 5 million to 9 million cubic feet per day, all of which are stated to be choked back.

ReoStar chief executive Mark Zouvas says, “This opportunity gives the company low-cost access to this reserve-rich play and allows us to continue with the operational success we achieved in the Barnett shale, where we have successfully drilled and completed more than 70 deep, 9,000-foot shale gas wells. This acquisition has the ability to launch the company’s reserves and profitability to significantly greater heights.”

In connection with the transaction, ReoStar has acquired the services of ZaZa Energy LLC under an executed exploration and development agreement, which includes tenured oil and gas staff experienced in geology, engineering and land acquisition. The terms of the transaction include the issuance of 12 million shares of ReoStar’s common stock.

“An important part of this transaction is our affiliation with ZaZa Energy, and our ability to leverage the talent and experience of its staff in developing this acreage,” says Zouvas. ReoStar focuses on developmental resource plays and enhanced oil recovery projects, with assets in the Texas Barnett shale and Corsicana area, and in the Arkansas Fayetteville shale.

U.K.-based Nighthawk Energy Plc (London AIM: HAWK) subsidiary Nighthawk Production LLC and Running Foxes Petroleum Inc. Centennial, Colo., have terminated an agreement to sell a 20% interest in the Jolly Ranch Field in the Colorado Denver Basin to Switzerland-based San Severina Holdings SA for US$21.9 million due to San Severina’s failure to make payment.

“Completion and settlement of the initial consideration under the agreement were due by June 15. No payment from San Severina has been received,” says David Bramhill, Nighthawk managing director.

Nighthawk reports San Severina had requested a number of extensions from the beginning of April, when due diligence was complete, until the agreement was signed at the end of May. “Since April, the oil price has risen very strongly and this factor, together with San Severina’s failure to complete the transaction as agreed, resulted in both Nighthawk and Running Foxes concluding that it was in each of their best interests to terminate the agreement.”

Jeremy Eng, managing director of Ascent Resources Plc (London AIM: AST), San Severina management partner and which was to manage San Severina’s project interest in Jolly Ranch, says, “San Severina has advised that failure to settle the initial consideration required under the agreement was due to delays in monetizing long-term financial assets required for the transaction.”

San Severina was to have acquired approximately 50,000 net acres in Elbert, Lincoln and Washington counties, Colorado, taking a 10% interest each from Running Foxes and Nighthawk, which would have held the remaining 80%. Running Foxes and Nighthawk have additional leases in the surrounding Middle Mist and Mustang Ranch areas, which with Jolly Ranch total some 370,000 acres (282,000 net acres).

Through an asset management agreement, Ascent was to be assigned 20% of San Severina’s interest at closing, or 4% of the total, in the Jolly Ranch project.

San Severina had the option to extend its participation into six additional project areas for a total of approximately US$80 million if all options were exercised. San Severina would have had the option to acquire a 20% interest in six blocks covering the remaining 232,000 net acres, including in the adjacent Middle Mist and Mustang Creek areas, for up to an additional US$58 million. The consideration for the 20% interest and with the exercise of all the options in the project extension areas would have totaled US$80 million.

Savoy Energy Corp., Houston, (OTCBB: SVYE) plans to acquire the remaining interest of the Wright well in Gonzalez County, Texas, from Lucas Energy Inc., Houston, (Amex: LEI) for an undisclosed price. Savoy currently holds 35%. Wright Well is on 485 acres near San Antonio and targets the Austin chalk. Savoy estimates daily production to be 40 to 50 barrels.

Strategic American Oil Corp., Corpus Christi, Texas, (OTCBB: SGCA) has acquired an 86.93% working interest in a 64-acre tract adjacent to the company’s 79-acre Koliba lease in Victoria County, Texas, via from Ensley Properties Inc. for an undisclosed price. Strategic American operates in Texas, Oklahoma, Louisiana and Illinois.

The Longview Fund LP has acquired interests in the Colorado D-J Basin and one drilling rig and associated assets from South Texas Oil Co., San Antonio, Texas, (Nasdaq: STXX) in exchange for debt satisfaction valued at $9.8 million.

The assets include South Texas’ entire 37.5% nonoperated working interest in 23,111 gross acres (8,666 net) in Logan County in northeastern Colorado. Proved reserves are 217,000 barrels of oil equivalent. Net production is 18 barrels of oil per day from four producing wells.

The effective date is May 18.

South Texas chairman and CEO Mike Pawelek says, “By divesting these noncore Rockies assets, we can now focus entirely on our Texas, Louisiana, and Gulf Coast operating areas which generate the majority of our production and oil and gas sales. We believe it is the optimal strategy for South Texas Oil to work the oil and gas provinces in which our technical team has the most experience and can maximize returns on invested capital.”

Venoco Inc., Denver, (NYSE: VQ) plans to acquire properties in the Sacramento Basin in California from Aspen Exploration Corp. for approximately $25 million. The Aspen assets are primarily in the Greater Grimes area. Production is approximately 250 barrels of oil equivalent. The deal was expected to close by the end of June.

Denver-based Whiting Petroleum Corp. (NYSE: WLL) reports it has farmed out a 50% working interest in the western portion of its Sanish Field in Mountrail County, North Dakota, and sold a 50% interest in a gas plant and gathering system to an undisclosed private company for $107.3 million.

The private company paid $6.4 million for acreage costs, $65.8 million for 65% of Whiting’s cost in the 18 wells currently drilled or drilling, and $35.1 million for a 50% interest in Whiting’s Robinson Lake gas plant and oil and gas gathering system.

The agreement covers 25 1,280-acre units and one 640-acre unit. The private company has agreed to pay 65% of Whiting’s net working interest completed well cost to receive 50% of Whiting’s working interest and net revenue interest in the first and second wells planned for each of the units. Whiting will remain operator.

There are 18 drilled or drilling wells on the 26 units covered by the agreement and 12 more wells are planned in 2009, which would result in the buyer participating on 30 wells in Sanish Field in 2009 and 21 wells thereafter. Whiting expects to have four rigs running in Sanish Field through 2009.

Whiting used the proceeds to repay debt. Following the transaction, Whiting expects its borrowing base to remain at $1.1 billion.

James J. Volker, Whiting president and CEO, says, “We are pleased to have this strong partner in these 26 Sanish units, which we expect to continue to develop at the pace of our previously announced 2009 plans. We are also pleased that this agreement will permit our planned 2009 capital expenditures to approximately come in line with our expected 2009 discretionary cash flow.”

Whiting currently owns an interest in 93 total units in Sanish Field. The 26 units covered by the agreement represent 28% of these total units. On units not covered by the agreement, Whiting currently owns interests in 30 producing wells on 27 Whiting-operated units and 20 producing wells on 20 nonoperated units where 27 infill wells are planned under current spacing. Whiting also retains 18 operated and two nonoperated units where 38 wells could be drilled.

As a result of the cost sharing arrangement under the transaction, Whiting’s finding cost of all producing wells drilled under the agreement will improve by 30%, the company reports.

Analysts with Pritchard Capital Partners says Whiting “has been knocking it out of the park in the Sanish Field,” with average IP rates on 32 operated wells in 2008 and 2009 a “very impressive” 2,254 barrels of oil equivalent per day. Finding and developing (F&D) costs are less than $8 per barrel, and IRRs at $70 Nymex for a 850,000 BOE EUR well are better than 100%, the analysts report.