A Canadian-Norwegian joint venture is buying 97,000 acres of natural gas-rich land in Texas' Eagle Ford play, the companies said Sunday.
Calgary-based Talisman Energy Inc. and Stavanger, Norway-based Statoil are paying $1.325 billion for the land, which currently belongs to Enduring Resources, Talisman said.
The project will be a 50-50 joint venture between the companies. Talisman will be the initial operator, but Statoil will operate at least half of the joint assets within three years.
Talisman estimated that the property contains the equivalent of 800 million barrels of oil.
The property currently produces the equivalent of 5,500 barrels of oil per day, Talisman said. It said six wells are producing energy, and 20 more will have been drilled by year's end.
Shale oil and gas deposits have become a key source of U.S. energy production. New techniques make it easier to reach oil and gas trapped beneath layers of rock deep underground.
Both Talisman and Statoil have been expanding their shale gas operations in North America.