ONEOK has experienced construction delays due to abnormally high rainfall amounts during the second quarter causing production curtailment. The system started to move natural gas volumes for the first time during the last week of June. This major conservation effort will tie in approximately 300 wells over the ensuing year.
Middle Bakken exploration across the Ambrose Block has accelerated in 2013. Thirteen test wells have now been placed on production, all yielding positive results. Eight new laterals are awaiting completion and two multi-well eco-pads are currently drilling. Further delineation of this formation will continue this year with significant step-outs planned.
During the second quarter of 2013, the focus of activities in the Tableland Field in Canada shifted from drilling and completions to facility optimization, with the third phase of field electrification initiated (last six drilled wells). The gas conservation project to interconnect our Tableland gas to the ONEOK North Dakota system was initiated with the submission of NEB and FERC applications.
Mr. Glenn Dawson, President of Williston Hunter, commented, "Williston Hunter's shift to becoming an operator in North Dakota continues to gain momentum. The first well in a 10-well program for the balance of 2013 spud in late June at the Company's Mohall Madison Unit located in Burke County, North Dakota. The remainder of the drilling program targets high working interest Middle Bakken wells in Divide County, lateral lengths of 1 to 1.5 miles with projected AFE costs of approximately $4.2 million. In the Ambrose Field located in Divide County, Middle Bakken exploration and development plans continue to expand very favorably based on existing well performance and new drilling successes. Our current CAPEX guidance provides for up to forty (40) gross Middle Bakken wells planned to be drilled by year-end 2013."
Eagle Ford/South Texas
On April 24, 2013, we sold our core properties in the oil window of the Eagle Ford Shale in Gonzales and Lavaca Counties, Texas to a wholly-owned subsidiary of Penn Virginia Corporation (NYSE: PVA) ("Penn Virginia") for a total purchase price of $401 million, paid to us in the form of $361 million in cash (before customary purchase price adjustments) and $40 million in Penn Virginia common stock (valued, for purposes of the contract purchase price calculation, at a price of $4.00 per share). We used the cash portion of the purchase price to repay all our outstanding borrowings under our MHR Senior Revolving Credit Facility and for general corporate purposes.
The properties sold to the Penn Virginia affiliate included approximately 19,000 net Eagle Ford Shale leasehold acres, and our operating and non-operating leasehold working interests in certain existing wells located in Gonzales and Lavaca Counties, Texas. The transaction was structured as a sale to the Penn Virginia affiliate of all of the outstanding capital stock of our wholly-owned subsidiary, Eagle Ford Hunter, Inc. ("Eagle Ford Hunter"). The effective date of the transaction was January 1, 2013.
Prior to the closing of the transaction, Eagle Ford Hunter transferred all of the assets and properties held by Eagle Ford Hunter other than the properties in Gonzales and Lavaca Counties sold to Penn Virginia, to one of our wholly-owned subsidiaries, Shale Hunter, LLC. As a result, as of May 1, 2013, we continued to own approximately 7,000 net Eagle Ford Shale leasehold acres located primarily in Fayette, Lee and Atascosa Counties, Texas, of which approximately 5,100 net acres are prospective for a combination Pearsall/Eagle Ford Shale oil play in Atascosa County, Texas. The Pearsall Shale is located approximately 2,500 feet beneath the Eagle Ford Shale at depths ranging from 9,000 to 12,000 feet and is approximately 300 to 400 feet in thickness.
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