facebook
twitter
rss
account
search
search
 

Eni buys into Texas shale oil

Nov. 5, 2013 at 8:07 AM   |   Comments

FORT WORTH, Texas, Nov. 5 (UPI) -- Italian energy company Eni said Tuesday it signed a deal to explore the oil potential in shale reserves in western Texas.

Eni signed a deal with Quicksilver Resources to evaluate, explore and develop shale oil resources in the Leon Valley in west Texas.

Quicksilver said in a separate statement the Italian company agreed to pay $52 million and pay all of the costs associated with drilling in its 52,500 gross acre license area in Texas.

Eni said the agreement calls for a seismic survey of the area to get a better understanding of the resource potential. It plans to drill as many as five exploration wells in the Delaware oil basin as part of its agreement with Quicksilver.

Eni said the current level of oil produced from conventional and shale oil reservoirs in the region is nearly 500,000 barrels of oil equivalent per day.

"It is estimated that within five years the Delaware Basin production will double, due to the rapid growth of oil production from unconventional reservoirs," the company said in a statement.

© 2013 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Recommended UPI Stories
Most Popular
1
Deloitte: App downloads dwindle, 1 in 3 users disinterested
2
Iran wants to develop mini-LNG plants
3
Europe could learn from U.S. shale success
4
AESA radar integrated into new F-16V
5
Iraq worried by terrorist ties to oil
Trending News
Video
x
Feedback