Combining their efforts following a bidding dual to acquire interests from bankrupt TXCO Resources Inc., San Antonio, (Nasdaq: TXCO), both Newfield Exploration Co., Houston (NYSE: NFX) and Anadarko Petroleum Corp., The Woodlands, Texas (NYSE: APC) will divide the spoils of South Texas assets for $310 million.

Anadarko will acquire more than 80,000 net acres in the Maverick Basin from TXCO for approximately $93 million and increase its operated working interest in these properties to 75%. The acquisition involves a pre-existing joint venture in the play covering 345,000 gross acres in which Anadarko previously held 50%. St. Mary Land & Exploration Co., Denver, (NYSE: SM) holds the other 25%.

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), for approximately $217 million. Current net production of the assets to be acquired by Newfield is 1,500 BOE per day (66% oil). The acreage has multiple geologic targets, primarily in the Eagle Ford and Pearsall formations.

Newfield president and chief executive Lee K. Boothby says, “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. We have been active in South Texas for more than a decade and our people have a proven track record of success.”

Bob Daniels, Anadarko senior vice president, worldwide exploration, says, “The additional interest being acquired increases our position in this program and should afford Anadarko strong growth opportunities in the high-potential emerging Eagle Ford and Pearsall shale plays. The enhanced liquids yield we’ve encountered to date in the Eagle Ford offers significant value and balances the dry-gas opportunities found in the Pearsall.” Anadarko holds 180,000 net acres in the area.

In an SEC statement filed in early January, TXCO reported that a bid via bankruptcy court by Anadarko for $310 million had been accepted over an earlier stalking-horse offer by Newfield Exploration Co. for $223 million. TXCO filed for protection under Chapter 11 in the U.S. Bankruptcy Court for the western district of Texas in May.

Wells Fargo Securities LLC analyst David Tameron says the metrics look attractive for both companies, with Newfield paying some $710 per acre across TXCO’s relatively unproven acreage, and Anadarko paying $1,080 per acre for an additional 25% working interest.

“Given the distressed sale and relatively unproven acreage, we believe these to be attractive purchase prices for both companies,” he says.

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