deal talk around $ 14,000/ acre

Update: The deal talk is around $14,000/acre
Deal could come within 30 days
India's Reliance eyes Eagle Ford Shale stake in US: sources
Houston (Platts)--20Sep2010/712 am EDT/1112 GMT
India's Reliance Industries is talks with Oklahoma City-based producer
Chesapeake Energy about a joint venture in the Eagle Ford Shale play in south
Texas, sources said Friday.
An announcement of a deal could come within 30 days, the sources added.
"The deal talk is around $14,000/acre," Jefferies & Co. analyst
Subash Chandra said. "The devil's in the details, but the headline is likely
to look good."
Spokesmen for both Reliance and Chesapeake declined to comment.
A deal with Chesapeake would be the fourth for Reliance involving US
natural gas shale and its second in the Eagle Ford play.
Reliance in July said it had entered into a $1.35 billion joint venture
in the Eagle Ford play with Pioneer Natural Resources and its partner Newpek,
under which it obtained a 45% stake in about 212,000 net acres.
Chesapeake has been shopping for a JV partner at its Eagle Ford acreage
and CEO Aubrey McClendon said in August that a deal was imminent. Chesapeake
holds some 550,000 net acres in Eagle Ford.
Reliance, India's largest private company, began its shale-buying spree
in April when it acquired about a 40% interest in Pittsburgh-based Atlas for
about 120,000 net acres in Marcellus Shale in southwest Pennsylvania for $1.7
billion.
In early August, Reliance entered into a 60:40 JV with Carrizo Oil &
Gas in the Marcellus Shale for $392 million.
--Samantha Santa Maria, [email protected]
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Enterprise plans gas, oil network in Eagle Ford
Enterprise Products Partners on Wednesday said it plans to add a
network of gas and oil pipeline facilities to accommodate growing production
in the Eagle Ford Shale of South Texas.
The projects are linked to long-term agreements with independent
producer EOG Resources, for which Enterprise will provide a comprehensive
package of midstream services using both existing assets
and newly built infrastructure. The company did not provide cost
estimates for the pipelines or financial details of the agreements withHouston-based EOG.
Activity in the Eagle Ford Shale continues to exceed industry expectations as
more than 90 rigs working in the play have drilled more than 175 wells to date,
Enterprise said. Current production from the play is estimated at approximately
300,000 Mcf/d of natural gas and 40,000 barrels/d of crude oil and condensate.
Enterprise said it has committed to building 52 miles of gas pipeline to
complement its previously announced mainline project in the region. The new
capacity will help Enterprise provide EOG with firm gas transportation and processing
and natural gas liquids transportation and fractionation services under
seven-year contracts.
Enterprise said it will provide EOG with gas processing services at the partnerships
planned cryogenic gas processing facility, which is expected to be in service
in mid-2012 with an initial capacity of 600,000 Mcf/d.
The NGL recovered from EOGs gas volumes at the plant will be transported
through Enterprises recently announced 127-mile, 12-inch-diameter NGL pipeline
to its Mont Belvieu complex, where Enterprise will construct a fifth NGL
fractionator.
Prior to completion of the processing and NGL facilities, Enterprise will use
existing capacity in its network of South Texas infrastructure to process EOGs gas

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