BHP Intends to Sell its Interest in Fayettevill Shale in AR | Russell T. Rudy Energy LLC
BHP Billiton, the world’s largest mining enterprise, has announced its intention to sell their position in the Fayetteville Shale in Arkansas, according to a recent article in “Rigzone”. The company purchased these assets from Chesapeake and Petrohawk Energy in 2011 for almost $20 billion. However, when gas prices dropped, BHP had to write down the properties by $2.8 billion.
In what appears to be part of an industry trend, BHP is selling gas assets to concentrate on liquids production. The company had previously indicated that it wanted to sell about half of its acreage in the Permian Basin.
Nevertheless, BHP remains committed to U. S. onshore oil and gas with a $4 billion annual capital budget, and announced its intention to proceed with development of the Haynesville shale in Louisiana. The company also disclosed that it intends to cut costs and boost production of its core assets by 23% by the end of next year. By year-end 2017 the goal is to produce 200,000 per day of shale liquids.
To read the article in its entirety, please go to www.rigzone.com/news/article.asp?hpf=1&a_id=135620&utm .
