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Ohio Utica Shale

Blackstone eying Royal Dutch Shell holdings in Louisiana

By Bob Downing Published: August 13, 2014

From Bloomberg News earlier this week:

By David Carey

Blackstone Group LP, the private-equity firm led by billionaire Stephen Schwarzman, is in advanced talks to acquire Royal Dutch Shell Plc (RDSA)’s 50 percent stake in a shale-gas field in Louisiana, according to a person familiar with the matter.

Blackstone would pay about $1.2 billion for Shell’s half-interest in the Haynesville formation, the person said. The deal would follow a parade of gas-acreage sales by oil companies including Shell and Apache Corp. (APA) to investors as they trim holdings amassed when natural-gas prices were higher.

The New York-based PE firm would buy the stake in a joint venture that owns more than 350,000 acres in the Haynesville Shale formation in northern Louisiana and East Texas, according to the Wall Street Journal, which first reported the talks earlier today. Shell, based in The Hague, struck a deal to explore the field in 2007 in partnership with Encana Corp., the newspaper reported.

Christine Anderson, a spokeswoman for Blackstone, and Destin Singleton, a spokeswoman for Shell, declined to comment. Blackstone is the world’s largest manager of alternative assets including private-equity, hedge funds and real estate.

Blackstone, which has bankrolled refineries and off-shore drilling projects, avoided investing in gas late last decade, when prices rose to more $13 per million British thermal units. It has recently gathered positions in the Marcellus gas formation in Pennsylvania, Bloomberg News reported in March. Gas futures recently traded for about $4 per million Btu, according to data compiled by Bloomberg.

Blackstone’s holdings include a plant in Louisiana that it’s building with Cheniere Energy Inc. (LNG), through a venture called Cheniere Energy Partners LP (CQP), to export liquefied natural gas. The facility, the first to win government approval to export from the Gulf Coast, is scheduled to come on line in 2016.

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Ohio Department of Natural Resources' Division of Oil and Gas Resources Management State agency Web site.

ODNR Division of Oil and Gas Resources Management. State drilling permits. List is updated weekly.

ODNR Division of Geological Survey.

Ohio Environmental Protection Agency.

Ohio State University Extension.

Ohio Farm Bureau.

Ohio Oil and Gas Association, a Granville-based group that represents 1,500 Ohio energy-related companies.

Ohio Oil & Gas Energy Education Program.

Energy In Depth, a trade group.

Marcellus and Utica Shale Resource Center by Ohio law firm Bricker & Eckler.

Utica Shale, a compilation of Utica shale activities.

Landman Report Card, a site that looks at companies involved in gas and oil leases.FracFocus, a compilation of chemicals used in fracking individual wells as reported voluntarily by some drillers.

Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.

Rig Count Interactive Map by Baker Hughes, an energy services company.

Shale Sheet Fracking, a Youngstown Vindicator blog.

National Geographic's The Great Shale Rush.

The Ohio Environmental Council, a statewide eco-group based in Columbus.

Buckeye Forest Council.

Earthjustice, a national eco-group.

Stop Fracking Ohio.

People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.

Concerned Citizens of Medina County, a grass-roots group.

No Frack Ohio, a Columbus-based grass-roots group.

Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.

Penn State Marcellus Center.

Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.

Allegheny Front, environmental public radio for Western Pennsylvania.