August’s top stories: Ramones Phase II South line, Parsely Energy to buy US oil sites

Construction starts on Ramones Phase II South pipeline project in Mexico

GDF Suez and Pemex started construction on the Ramones Phase II South pipeline project in Mexico.

The Ramones II South is a segment of the Ramones natural gas pipeline system energy infrastructure project, extending from the Texas border to central Mexico.

The pipeline, which is expected to cost $1bn, will span 291km from San Luis Potosi to Apaseo El Alto, Guanajuato.

Eni and Quicksilver discover oil in West Texas well

Italian energy firm Eni and its joint-venture (JV) partner Quicksilver Resources encountered oil at the Stallings 1H well in West Texas, US.

The well was completed in a 2,900ft horizontal section in the Third Bone Spring interval at a vertical depth of 7,400ft in the Delaware Basin.

The well is currently producing on a restricted choke at a rate of 750boepd, of which 90% is oil.

Parsley Energy to buy several oil and gas properties in the US

Oil and natural gas firm Parsley Energy agreed to acquire several undeveloped acreage and producing oil and gas properties in the US for around $252m.

Parsley signed agreements in separate transactions with various sellers for the properties, which are situated near the company’s current operating areas in Reagan County, Texas.

The acquisition includes 157 net horizontal drilling locations across 5,472 net acres in Reagan County and 140 net vertical 80-acre and 40-acre drilling locations, as well as 140 net vertical 20-acre drilling locations.

Magnolia Petroleum sells 24 smaller stakes in three US non-core wells

Oil and gas production firm Magnolia Petroleum sold 24 smaller stakes in non-core wells located in the US states of Alabama, Florida and Texas.

The minority interests range between 0.0068% and 1.54%. Magnolia will receive $240,750 in cash, which the company says will represent a 190% premium to the $83,000 book value assigned to proved and developed reserves.

The sale is part of Magnolia’s ongoing portfolio management of leases covering more than 13,500 net mineral acres in proven US formations.

Pacific Energy starts drilling first well in Wattenberg Asset in US

Pacific Energy Development started drilling the first of three back-to-back wells on its Wattenberg Asset in the US.

The company said the work on the first three wells is on target and the drilling of the second and third wells is due to follow shortly.

Pacific Energy aims to undertake the drilling work from a single pad. The expected gross cost per well is approximately $4.2m.

Petrobras signs agreement with Bolivia’s YPFB on natural gas imports

Brazilian energy firm Petrobras signed a new agreement with Bolivia’s YPFB on natural gas imports.

The deal intends to resolve differences on the performance of the Bolivian natural gas import contract to the Brazilian market.

The agreement clarifies several interpretations of the contract via payments and compensations from one party to the other.

Shell to sell onshore gas assets in Louisiana and Wyoming for $2.1bn

Royal Dutch Shell announced plans to sell its onshore gas assets in Louisiana and Wyoming in two separate agreements, worth approximately $2.1bn.

Shell has added acreage in the Marcellus and Utica shale plays in Pennsylvania.

The company is divesting its Pinedale asset to Ultra Petroleum in exchange for $925m in cash and acreage in the Marcellus and Utica oil and gas shale fields in Pennsylvania.

Shell will sell its Haynesville asset in Louisiana to Vine Oil & Gas and its partner Blackstone for $1.2bn.

Panda Power Funds breaks ground on 829MW Marcellus shale gas power plant

Panda Power Funds broke ground on a 829MW natural gas-fueled power plant in Lycoming County, Pennsylvania, US.

Located on an 85-acre site in Montgomery, the combined-cycle Patriot generating station is expected to be fully operational in mid-2016.

The Panda Patriot facility uses emissions-control technology and features Siemens H-class gas turbines to achieve 60% operating efficiency.