KNOC will receive about 80,000 net acres in the liquids-rich Eagleford Shale play and about 16,000 additional prospective net acres for the deeper dry-gas Pearsall Shale, as well as Pearsall opportunities underlying the aforementioned Eagleford acreage.
The company’s investment will be made entirely in the form of a carry, funding approximately 100% of Anadarko’s 2011 post-closing capital costs in the basin, and up to 90% thereafter until the carry is exhausted, which is expected to occur by year-end 2013.
KNOC may also elect to participate as a partner with an approximate 25% working interest in the associated gathering systems and facilities.
The transaction is expected to close during the second quarter of this year.
