Marathon Oil adds to Eagle Ford assets with private co buy
(Reuters) - Marathon Oil Corp (MRO.N) has bought privately held Paloma Partners II LLC for $750 million as part of its recent expansion in the Eagle Ford shale in Texas.
The Paloma acquisition was a part of Marathon Oil's recent deals to add 20,000 net acres in the liquids-rich core of the Eagle Ford shale play for $767 million.
With natural gas prices remaining weak, Marathon Oil's focus is on its liquids-rich developments in the Eagle Ford, where it expects to spend a third of its budget this year.
Houston-based Paloma, which owns about 17,000 net acres in Eagle Ford, said net production as of April 1 was about 7,000 barrels of oil equivalent per day.
Eagle Ford has emerged as one of the hottest North American shale fields as much of its output is oil rather than natural gas, prices of which have slumped to a decade low.
Jefferies & Co and Baker & McKenzie LLP advised Paloma on the deal, which is expected to close in the third quarter of 2012.
Shares of Marathon Oil, which split off its refining arm into Marathon Petroleum Corp (MPC.N), were trading at $26.32 on Wednesday on the New York Stock Exchange.
(Reporting by Swetha Gopinath in Bangalore; Editing by Roshni Menon)
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