Deals this week: Enerplus Corporation, Marathon Oil, Velvet Energy

Enerplus Corporation plans to raise $500 million through the sale of its non-operated natural gas assets in the Marcellus shale region in north-eastern Pennsylvania, US, according to sources.

The assets extend across an area of approximately 47,000 acres and hold proven plus probable reserves of 841 billion cubic feet (bcf) of gas and unrisked contingent resources of 803bcf.

Enerplus intends to use the sale proceeds to reduce its indebtedness and to support future acquisitions.

Marathon Oil Corporation has agreed to dispose certain non-operated conventional oil and gas assets in west Texas and New Mexico, US.

The deal implies a sale of non-operated CO₂ and water-flood assets for a consideration of $235 million. The assets produced approximately 4,000 barrels of oil equivalent a day (boed) in the first half of 2016.

Scheduled for completion by the end of 2016, the transaction will allow Marathon Oil to reduce its financial obligation.

Velvet Energy has raised $125 million through the issue of senior secured second lien notes, due 2023, in a private placement.

The company has retained FS Investment Corporation, GSO Capital Partners and CI Investments as advisors, and RBC Capital Markets as a placement agent for the offering.

The amount raised from the offering is intended to be used by Velvet Energy to pay off all the temporary bank debt and to finance an extensive Edson Ellerslie development programme.

Producers Midstream has obtained a commitment from Tailwater Capital for an equity financing of $100 million.

Producers Midstream offers innovative midstream infrastructure solutions to oil and gas companies in the upstream segment.

The company has retained Mack Matheson & Marchesoni as legal advisor for the transaction.

The investiture allows Producers Midstream to explore new green-field and strategic acquisition opportunities in Texas, Oklahoma, and New Mexico.

Resolute Energy Corporation has agreed to buy certain oil and gas assets in Reeves County of the Delaware Basin, Texas, US, from Firewheel Energy.

The deal implies a purchase consideration of $135 million, which will be funded by Resolute Energy through a combination of cash and equity.

The assets include 3,293 net acres of land comprising 47 drilling locations, with a production capacity of 1,200boed from 13 horizontal and 15 vertical producing wells.

BMO Capital Markets and Petrie Partners are the financial advisors to Resolute Energy on the transaction, which is scheduled for completion on 7 October.