Williams Cos., Tulsa, Okla., (NYSE: WMB) plans to acquire interests in the Barnett shale in North Texas from privately held Aspect Abundant Shale LP, Denver, and other parties for approximately $166 million in cash.
The assets include approximately 10,000 net acres primarily in Tarrant, Johnson and Hood counties with 41 existing producing wells. Proved, probable and possible reserves are estimated to be 175 billion cubic feet equivalent. Daily net production is approximately 9 million cubic feet equivalent.
Williams currently holds approximately 34,000 net acres in the play. In first-quarter 2008, Williams produced an average 38 million cubic feet equivalent per day net in the Barnett. At year-end 2007, Williams had an estimated 277 billion cubic feet equivalent proved, probable and possible reserves in the play. It has four rigs operating in the Barnett and plans to add two rigs in North Texas to begin developing the new acreage.
Ralph Hill, president of Williams' exploration and production business, says, “Williams originally entered the Barnett shale in 2005. Over the past three years, we've focused on gaining efficiencies in the area by adding size and scale through a number of attractive bolt-on acquisitions like this.”
Energy Spectrum Advisors Inc. is advisor to Aspect. Closing is expected in September.
Williams operates primarily in the Pacific Northwest, Rocky Mountains, Gulf Coast and Eastern Seaboard.
Aspect was formed in June of 2006 as a joint venture between Aspect Holdings LLC and Houston-based private-equity firm First Reserve Corp. to focus on unconventional shale plays in North America. Aspect holds more 250,000 acres primarily in the Barnett and Marcellus plays.
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