Eni has signed an agreement with Quicksilver Resources to jointly evaluate, explore and develop unconventional oil reservoirs (shale oil) onshore United States. Eni will acquire a 50% share in the shale oil play held by Quicksilver in the Leon Valley area, located in Pecos County (West Texas) for US$52m, representing 100% of the drilling, completion and seismic costs. Any future expenditure will be shared equally between Eni and Quicksilver. A joint evaluation team will be formed with members of each company to conduct exploration and development activities, with Quicksilver as operator. The terms of the agreement calls for an initial three phase program that includes the drilling of up to 5 exploration wells and the acquisition of a 3D seismic survey, aimed at determining the hydrocarbon potential of the area and the subsequent development plan.
The Leon Valley acreage is located in the prolific Delaware Basin, where current production amounts to nearly 500,000 boe/d, both from conventional and unconventional reservoirs. It is estimated that within five years the Delaware Basin production will double, due to the rapid growth of oil production from unconventional reservoirs.