Marathon Acquires Hilcorp - Play Continues to Consolidate
Event
Marathon Oil Corp. (MRO-N, not rated) early this morning announced an agreement to acquire all of Hilcorp Energy Company’s (private) Eagle Ford assets for US$3.5B in cash. The transaction which comprises 141,000 net acres and 7 mBOE/d of production is expected to close on November 1, 2011 (effective date of May 1, 2011). Hilcorp will continue to operate these assets until the deal closes.
The key to the acquisition, in our view, was Hilcorp’s Sugarkane acreage which spans Karnes and Atascosa County in which Aurora Oil & Gas Ltd. (AEF-T) is a working interest partner (21.1% working interest, on average).
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