Thursday, June 2, 2011

Marathon - best in the long run

Way back before I was Man o' Law, when I was Man o' Oil, I worked for the Marathon Oil Company as a petroleum geologist.  I still believe its a good company.

I am glad to see they are going to be the Eagle Ford Shale in a big way.

Eagle Ford deal costs oil firm $3.5 billion
Marathon is purchasing 141,000 acres, with an option for more.
By Tom Fowler Houston Chronicle

Marathon Oil said it will spend $3.5 billion in a deal to buy 141,000 acres in the Eagle Ford shale play from a venture started just a year ago by Houston's Hilcorp Energy and private equity giant KKR — with the potential for acquiring 14,000 acres more through additional rights and leasing.

The deal will double its footprint in the Eagle Ford shale, bringing its total acreage to 285,000 and making Houston-based Marathon the fifth-largest acreage holder in the shale, according to the company.

Including oil production from existing wells on the property, the per-acre price comes to about $21,000 — a likely record for the Eagle Ford.