Mikaila Adams
OGFJ Associate Editor

After initially outbidding Newfield by $87M, Anadarko is now sharing the bounty

Newfield Exploration Co. and Anadarko Petroleum Corp. will jointly acquire TXCO Resources Inc.'s (TXCO) assets in the Maverick Basin of Southwest Texas for up to $310 million.

According to the terms of the transaction, a wholly owned subsidiary of Anadarko will acquire more than 80,000 net acres in this basin from TXCO for roughly $93 million and increase its operated working interest in these properties to 75%. 

Newfield will acquire substantially all of TXCO's remaining assets in the Maverick Basin, which include more than 350,000 gross acres (300,000 net acres), for approximately $217 million. Current net production of the assets to be acquired by Newfield is 1,500 boe/d, of which two-thirds is oil.

For Newfield, the transaction marks the company’s entrance into the Maverick Basin. The company’s stated goal is to focus on “large, domestic plays of scale” and have an active drilling program in 2010. Newfield president and CEO Lee K. Boothby said, "Including this transaction, we have added more than 500,000 net acres in long-lived resource plays over the last several months. Our acquisition of TXCO's assets will mark an entry into the Maverick Basin and provide us with a deep inventory of potential locations - both oil and gas.”

Anadarko is adding to its existing 180,000 net acres in the area. The company is looking increase its position in “the high-potential emerging Eagleford and Pearsall shale plays.” Bob Daniels, Anadarko senior vice president, worldwide exploration, stated, "The enhanced liquids yield we've encountered to date in the Eagleford offers significant value and balances the dry gas opportunities found in the Pearsall.”

According to a Securities and Exchange Commission filing by TXCO earlier in January, Anadarko was to purchase most of the company’s assets for $310 million after outbidding Newfield Exploration, who had offered the company $223 million in December.