Scarlett Johansson Buys $2.2 Million Hampton Bay Mansion

Scarlett Johansson has bought a custom-built, 3,500-square foot shingled house in Amangansett, according to Zillow real estate blog.

The estate sits on 1.4 acres of land and shares a boundary with the Peconic Land Trust and Napeague State Park allowing for plenty of private acreage.

The four-bedroom, open floor plan space includes decks that expand the living space outside, along with a master suite featuring its own private balcony and fireplace. There are also three additional guest rooms each with their own balcony.

Last year the Her star sold her Hollywood Versailles Tower condo for $470,000.

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Sundance: Park City Real Estate Hits New Peaks

Inside a Stein Eriksen residence.

While the Sundance Film Festival is poised to turn Park City into a high-powered Hollywood scene for the next two weeks, the tiny town of 7,500 is in the midst of its own real estate boom, one that may have every other U.S. ski resort town beat.

“It’s popping again. Things are better than even at the peak of the market for luxury sales,” says Sotheby’s International Realty agent Paul Benson of the area where Katherine Heigl, Michael Jordan, and former Good Morning America host Charles Gibson own homes. “Not only are we getting buyers from all over the world who are attracted by residences like The Montage and St. Regis, we’re also starting to get year-round buyers. Lots of tech people are moving here for their primary residence. And in the actual town of Sundance where every other home is Hollywood owned, prices are back up to the $5-$10 million region.”

Among the area's high-end listings: John Schnatter’s 6,800-square-foot condo at the St. Regis. Schnatter, a real estate collector and owner of Papa Johns, put his mountain-facing spread on the market for $17.9 million. Michelle Eastman and Brigid Flint of Sotheby's International Realty hold the listing. 

Mitt Romney purchased a slope-side mansion in Deer Valley in late 2013. Listed at $8.9 million, the 9,000-square-foot, super-sized log cabin included six bedrooms and eight bathrooms – a suitable size for the politician and his wife’s 25 grandchildren.

“The Romney sale is indicative of the kind of action we’re seeing again,” says Keller Williams agent Steve Blankenship, who cites the $125-million Park City Film Studios, which broke ground in October of 2013, as another huge future boon to the residential real estate market. “Having sound stages and a film school right here in town could definitely bring in even more movie industry people,” says Blankenship, adding to current homeowners like Paramount CEO Brad Grey and Modern Family producer Steve Levitan. 

PHOTOS: 15 Films That May Spark Frenzy at Sundance

Not that every big-ticket listing is selling overnight. DreamWorks Animation CEO Jeffrey Katzenberg’s pine-and-granite house has been on the market since August 2012 with a $20.5 million price tag that hasn’t been reduced. “This isn’t a mainstream home,” says Benson. “It’s a unique property, but there will be a buyer, somewhere out there in the world, who just has to have it.”

Striking broader appeal, and debuting just in time for the Sundance scene, are the Stein Eriksen Residences, a set of 16 homes that will be priced from $2 - $7 million in Deer Valley. A model home will be open for the film festival. Built near the Stein Eriksen Lodge, which is frequented by Robert Redford and Ryan Reynolds, the homes give the rustic mountain look a contemporary upgrade, with clean lines, huge windows and modern décor.

The Colony at White Pines, however, offers the ultimate in high-end homes. The gated, heavily forested, community boasts some of the highest priced homes in the area, including one owned by Will Smith. “I think of these homes as mini ski-in/ski/out mini ranches,” says Erik Asarian of Keller Williams. “We currently have a home listing there for $24.6 million and overall it’s a hot market. Seven homes sold there in 2013, and we had 16 lot sales in the same year, up from eight lot sales in 2012 and six in 2011. This is the ultimate Industry hideaway. It’s our equivalent of beach front property in Malibu.”

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Reese Witherspoon, Ryan Phillippe Sell Shared Duplex

Reese Witherspoon and Ryan Phillippe have sold their shared investment property, a duplex in Los Angeles, for $1.44 million, according to Trulia real estate blog.

On Jan. 17, seven years after their divorce, they unloaded the duplex they still owned together. They originally purchased the home in October 2005 for $1.17 million and then listed the property in December 2013 for $1.395 million.

STORY: Robert Pattinson Sells Los Feliz Home for $6.37 Million 

Witherspoon and Phillippe made a profit of $266,500 on the sale of their two-unit remodeled property. Witherspoon also recently sold her Ojai estate where she married her husband, CAA agent Jim Toth. Originally asking for $10 million on the house, she ended up selling for $4.98 million after lowering the asking price twice.

Likewise, Phillippe saw a loss on his Sunset Strip mansion of $1.175 million in March 2013.

Mary Lu Tuthill of Coldwell Banker Brentwood was Reese and Ryan's listing agent for this deal, and Lisa Mansfield of Sotheby's International Realty represented the buyer.

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Snapchat Stays in Venice Office Longer Than 10 Seconds

Snapchat's Market Street expansion.

This story first appeared in the Feb. 7 issue of The Hollywood Reporter magazine.

Snapchat is laying down roots in Los Angeles.

Last year, the fast-rising photo messaging service (which turned down a $3 billion cash buyout offer from Facebook in November) signed leases on 6,000 square feet of office space on Market Street in Venice. Now the company has leased an additional 3,940 square feet on the same side of the street, according to sources close to the deal.

STORY: Silicon Beach Boom Hits the Playa Vista Housing Market

The two-story building, built in 1922 and located just a block from the beach, is owned by producer-director Tony Bill, who is said to originally have purchased the property back in the 1970s with earnings from The Sting, for which he shared a best picture Oscar with Michael and Julia Phillips. The ground floor of the building was an Aardvarks vintage clothing store until 2010 and, more recently, an art gallery.

The deal isn't the only way Snapchat is increasing its Venice footprint: In addition to the company's expanding Market Street presence, co-founder Bobby Murphy, 25, purchased a two-bedroom, Larry Scarpa-designed home nearby for $2.1 million in December. Bill and Snapchat did not return calls for comment.

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FormCap acquiring Cowley County prospect in Kansas

FormCap Corp. (OTCQB: FRMC) is making payments to Keta Oil & Gas and Kerr Energy toward the purchase of oil and gas exploration and development leases in Cowley County, Kansas. Formcap will pay Kerr and Keta $200 per acre for up to 2,400 acres of leases, at a cost not to exceed $480,000 (the purchase price) unless agreed otherwise by the company.

Formcap is evaluating a specific block of 875 acres (from the 2,400 acre total) of prospective oil leases to acquire from Kerr and Keta. The company will own 100% of the leases (80% net revenue to FormCap; 20% freehold royalty), and will be operator. FormCap will also have the option to purchase additional leases in Cowley County from Kerr and Keta under an Area of Mutual Interest, the terms of which are set forth in the agreement.

Per the agreement, FormCap is required to drill one well in each of the first two years of the lease term to maintain its interest in the leases, and will have the option to participate in the drilling of up to six exploration or development wells on lands currently owned by Keta and Kerr.

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Time Warner Nearing Sale of Manhattan Headquarters for $1.3 Billion (Report)

Time Warner is closing in on a deal to sell its midtown Manhattan headquarters to real estate firm Related Cos. for $1.3 billion, the Wall Street Journal reported Wednesday.

A sales agreement for the Time Warner Center, on whose construction the entertainment conglomerate spent around $520 million about a decade ago, could be announced as early as Thursday, it said.

A Time Warner representative declined to comment.

PHOTOS: From Huntington Palisades to Trousdale Estates: L.A.'s Top Microhoods

Sources have said that Time Warner has focused on a sale of its current building at Columbus Circle that would allow it to lease office space there for about five years before consolidating it's New York operations in a new building. It currently has seven different office locations in the Big Apple.

That building could be a new commercial tower that Related has been developing in the Hudson Yards neighborhood on Manhattan's far West Side, south of Times Square. The conglomerate is believed to have reached a tentative agreement to move into the 80-story skyscraper set to be built at the corner of 10th Avenue and 33rd Street. Other options include a new development on the site of the former World Trade Center.

Time Warner, led by chairman and CEO Jeff Bewkes, has been exploring its real estate options for about two and a half years in an effort to save money and consolidate the staff of its various operations. Most of its current New York leases are up in 2017.

STORY: Hollywood's Top 25 Real Estate Agents

The far West of Manhattan has cheaper real estate. Previous chatter was that TW could save as much as $100-million-plus by moving office space.

Related has offered to sell the new office space at cost to get TW as an anchor tenant, hoping to make money from the retail and residential parts of the real estate development, according to previous reports.

The Time Warner Center sale could be one of the biggest in a recent slew of commercial real estate deals in the U.S. that have relied on foreign investors.

Related is financing its bid for the Time Warner Center with backing from so-called sovereign-wealth funds from Abu Dhabi and Singapore, sources told the Journal. The Abu Dhabi Investment Authority and the Government of Singapore Investment Corp. would own most of the property venture, but Related would manage the building, the paper said.

E-mail: Georg.Szalai@THR.com
Twitter: @georgszalai

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Gazprom to launch commercial gas production from Kirinskoye field in 2014

The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company's Management Committee and Alexander Khoroshavin, Governor of the Sakhalin Region.

The meeting noted a significant amount of Gazprom's investments in the Sakhalin Region –the Company's capital investment in the Region exceeded RUB 250 billion over five years (between 2009 and 2013). The funds were mainly allocated to the following strategic projects of Gazprom: the construction of the Sakhalin – Khabarovsk – Vladivostok gas transmission system (GTS), pre-development of the Kirinskoye gas and condensate field (Sakhalin III) and construction of a gas pipeline from the onshore processing facility of the Kirinskoye field to the Sakhalin main compressor station of the Sakhalin – Khabarovsk – Vladivostok GTS. This year the capital investments will make up RUB 10 billion. The Kirinskoye field pre-development will continue, including the drilling of production wells. In 2014 Gazprom is going to launch commercial gas production from the Kirinskoye field.

Alexey Miller and Alexander Khoroshavin addressed the issues of gas supply to the Sakhalin Region. Between 2008 and 2013 the Company channeled over RUB 3 billion for these purposes. In particular, a General Scheme for Gas Supply to and Gasification of the Region was elaborated, three inter-settlement gas pipelines were built connecting the Dalneye gas distribution station (GDS) and the Yuzhno-Sakhalinsk CHPP-1, the Dalneye GDS and the Novo-Alexandrovsk settlement as well as the Novo-Alexandrovsk gas distribution point (GDP), the Klyuchi population center and the Sanatornoye population center. The Region's Government, in its turn, fulfilled its obligations to prepare the consumers for gas supplies. As a result, the gasification level of the Sakhalin Region (taking into consideration the consumers, who received thermal energy from gas-powered TPPs) increased by 24.5 per cent to 33.6 per cent.

In 2014 the Company will carry on the construction of the gas branch and the Nogliki GDS, as well as the inter-settlement gas pipelines connecting the Nogliki GDS with the Nogliki GDP and the Nogliki GDS with the Nysh settlement.

The meeting addressed the plans to create an NGV fuel market in the Sakhalin Region. It was noted that in 2014 Gazprom would build a CNG filling station in Yuzhno-Sakhalinsk, the first one in the region.

The parties touched upon the issues related to Gazprom's participation in social projects in the region. It was highlighted that the Company was running the Gazprom for Children project in the Sakhalin Region. Besides, in April 2013 Yuzhno-Sakhalinsk saw the inauguration of an ice palace constructed with Gazprom's assistance.

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Ashley Greene Buys; Kelly Osbourne and Jordana Brewster Sell Homes

Ashley Greene has just purchased a home in Beverly Hills, according to real estate web site Redfin. The Twilight actress paid $2.435 million for the 27,000-square-foot, Spanish style spread. Located behind a gated drive, the lushly planted property features a three-bedroom, three-bathroom home with beamed ceilings, plenty of skylights and a backyard pool.

Purple haired rock progeny Kelly Osbourne has listed her petite West Hollywood pad for $1.349 million, reports web site Trulia. The E! Fashion Police co-star is selling the one-bedroom, two-bath 1,250-square-footer that she purchased nine years ago for $1.195 million. Built in 1952 and designed by Robert Byrd, the home is perched in the hills and features city views. Jonah Wilson of Hilton and Hyland has the listing.

Jordana Brewster is also putting her place on the market. The Brazilian-American actress has listed her three-bedroom, four-bathroom home for $3.8 million, reports Trulia. Residential real estate ace Ellen DeGeneres had owned the gated, 2,868-square-foot retreat from 1999 until 2002. Wilson of Hilton and Hyland has the listing.

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Robert Pattinson Sells Los Feliz Home for $6.37 Million

Robert Pattinson has sold his Los Feliz gated estate for $6.375 million, reports real estate blog Trulia.

The actor purchased the 1922 home, designed by Stiles O. Clements (of the El Capitan Theatre) in September 2011 for $6.275 million. The three-bedroom, three-bath home melds plenty of original details with state-of-the-art technology updates.

STORY: Oprah Winfrey Lists Condo for $7.75 Million 

Sitting on a stunningly landscaped 1.5-acre lot, the estate comes with a long line of entertainment industry owners, including Tim Curry, Noah Wyle and cinematographer Robert Richardson.

The Twilight and Water for Elephants actor lived in the home with Twilight co-star Kristen Stewart until her affair with Snow White and the Hunstman director Rupert Sanders was revealed. Stewart then moved out of the house, followed by Pattinson, who rented in Beverly Hills.

The actor first listed the home for $6.75 million in October 2013, and early this year actor Jim Parsons (CBS’s The Big Bang Theory) and his partner, art director Todd Spiewak, purchased the estate. Property records show that the deal closed on Monday.

David Gray of Partners Trust Beverly Hills represented Pattinson in the sale and Ronald Shore of Keller Williams Coastal Properties was Parsons' agent.

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Mexico hydrocarbon undersecretary vows careful energy regulation, contract transparency

Mexico’s government realizes it’s crucial to establish competitive contract terms and effective, transparent regulations to attract international investors as Mexico implements its pending energy reforms, panelists told a Houston gathering on Feb. 7.

Lourdes Melgar, the new undersecretary of hydrocarbons for the Mexican Ministry of Energy, spoke to a seminar hosted by the University of Texas at Austin and the Atlantic Council in Houston on the day after she was named to her current post. Previously, she was undersecretary of electricity.

On Dec. 21, 2013, Mexico’s sweeping energy reform became law, representing a major overhaul of Mexico’s oil, gas, and electric industries.

Secondary legislation will stipulate contract logistics and tax reforms as Mexico ends the state-owned monopolies of oil company Petroleos Mexicanos (Pemex) and electric company Comision Federal de Electricidad (CFE). Secondary legislation is being drafted and discussed now.

Reforms pending

Having worked on the Mexican government’s energy reform team, Melgar noted that energy reform has been discussed for years in her country. She has held various positions in Mexico’s Foreign Service, including design work on international oil market strategy.

“It’s important to Mexico’s people to make sure we have financial transparency in every contract and bidding round,” Melgar said. Secondary legislation will outline the basics for the types of oil and gas exploration and production contracts, which will be flexible, she said.

Companies outside Pemex are to be allowed to participate in exploration and production activities, breaking the decades-old Pemex monopoly. The reforms also will allow direct private investment in Mexico’s midstream and downstream.

Melgar said Mexico expects to keep service contracts and to add profit-sharing contracts, production-sharing contracts, licenses, as well as enable a combination of various types of contracts. She told OGJ that it’s too early to know any contract specifics, and that contracts will vary widely.

“All hydrocarbons in the subsoil belong to Mexico,” Melgar said, confirming that energy reforms will enable companies outside Pemex to report oil and gas reserves on their accounting statements. “We want secondary laws that support the model the government has developed.”

Deadlines established

Mexico’s Congress has a deadline to approve these secondary laws by the end of April, she said, and the schedule calls for oil and gas bidding rounds to start around June 2015. Contract terms will be drafted carefully “to really attract the type of companies that we need,” in Mexico, she said.

Another speaker on the Feb. 7 Houston panel said Mexico could become a major oil supplier by 2022 if implementation of its energy reforms prove successful.

David Goldwyn, president of Goldwyn Global Strategies LLC and a former US State Department coordinator for international energy affairs, called Mexico’s energy reform “good timing for the rest of the world.”

Long-term opportunities for outside oil and gas companies in Mexico will involve the development of deepwater and unconventional gas plays, he said. For the near term, enhanced oil recovery technology and seismic analysis will be needed, he added.

Peter Schechter, Atlantic Council director of the Adrienne Latin American Center, said Latin America abounds with energy news although he noted, “No energy story in Latin America is more important than the Mexico story.”

US lawmakers in Washington, DC, closely are watching Mexico’s unfolding energy reform, he noted.

“Mexico is going to strengthen a North American energy market,” which means less reliance on Middle Eastern crude oil supplies, Schechter said. He noted that security concerns remain for outside investors.

Melgar acknowledged the security concerns, saying that her government is working to resolve these issues and also working to reassure potential international investors. “Security is an issue in some specific parts of the country,” she said.

"We expect these reforms to result in an increase of 1% to GDP by 2018,” Melgar told reporters in a news conference after the panel discussion. She said she was reluctant to discuss specific amounts yet, adding that Mexico’s economy is not equivalent to the US economy, making comparisons difficult.

Melgar said renewable energy will also be a priority for Mexico in the future.

Mexico seeks to reduce carbon emissions by 20% by 2020 and by 30% by 2050. Mexico also set a goal to reduce its reliance on fossil fuels to 65% by 2024, down from about 85% currently. Melgar noted that Mexico last year established a regime for trading carbon credits.

Separately from the panel discussion, Fitch Ratings issued a statement calling Mexico's energy reform “a long-term positive” for Mexico and Pemex credit quality.

“Fitch does not expect Pemex’s ratings to change due to the energy reform, but the company will benefit from the ability to find partners to share exploration risks and budgetary independence,” said Lucas Aristizabal of Fitch.

Contact Paula Dittrick at paulad@ogjonline.com.

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Real Estate Round-Up: Christina Ricci Lists; Robert Pattinson Sells; Jim Parsons Buys (and Lists)

Robert Pattinson's home was purchased by Jim Parsons.

Christina Ricci has listed her Los Feliz bungalow for $1.65 million, according to real estate blog Trulia. The actress purchased the 1,891-square-foot home in December of 2005 for $1.505 million. Located behind a gated driveway, the two-bedroom home -- featuring open-plan common areas, a covered patio and swimming pool -- was built in 1957.  Aileen Comora of The Agency holds the listing.

Robert Pattinson successfully sold his Los Feliz spread for $6.37 million. The actor purchased 1922 home, designed by Stile O. Clements (of the El Capitan Theater) in September of 2011 for $6.275 million and famously lived in the three-bedroom mansion with Kristen Stewart. David Gray of Partners Trust Beverly Hills represented Pattinson in the sale and Ronald Shore of Keller Williams Coastal Properties was the buyer’s agent.

STORY: Park City Real Estate Hits New Peaks 

The lucky buyer of the Pattinson home, which has been owned by Tim Curry, Noah Wyle and cinematographer Robert Richardson, was actor Jim Parsons, of CBS’s The Big Bang Theory.

Parsons and his art director partner Todd Spiewak, in turn put their Los Feliz hillside home on the market for $1.85 million, reports Trulia. The remodeled home, with three bedrooms and just over 2,800-square-feet of living space, is located just a few blocks from their newly purchased upgrade.

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Noble Energy signs MoU regarding Leviathan partnership

Noble Energy Inc. (NYSE: NBL) has signed a non-binding memorandum of understanding (MoU) regarding the sale of interest in the Leviathan licenses, offshore Israel, to Woodside Petroleum. Each of the existing Leviathan partners – Noble Energy, Delek Drilling, Avner Oil Exploration, and Ratio Oil Exploration – are participating as sellers of a 25% interest in the licenses to Woodside. Noble Energy will convey a 9.66% working interest and will continue as upstream operator with a 30% working interest. Following completion of the transaction, Woodside will become the operator of any LNG development of the field.

Total compensation to Noble Energy is anticipated to include $525 million in cash payments plus $502 million in shared future revenues. The initial cash payment of $390 million is payable at closing of the transaction, which is expected in 2014. The remaining cash amount of $135 million is due when a final investment decision is made in relation to an LNG or FLNG development or as regional export contracts are executed in excess of a threshold volume amount, whichever occurs earlier. The shared future revenue represents 5.75% of export revenue attributable to Woodside's net export sales, commencing once the gross exported volume from the Leviathan field exceeds 2.0 trillion cubic feet (Tcf) of natural gas. 

An additional payment of $19 million, net to Noble Energy, will be made should ultimate recoverable Leviathan resources be determined to be in excess of 20 Tcf gross of natural gas. The determination and payment will occur no earlier than when cumulative field production reaches 4 Tcf.  In addition, the sellers will receive a royalty of 2.5% of Woodside's future oil revenues associated with the deep Mesozoic, should a commercial discovery and development result on the licenses. The royalty would go into effect following net payout of investment.

The MoU includes the agreed-upon commercial terms of the farm-out transaction and sets the time frame for execution of definitive agreements. The Leviathan project is located on the Rachel and Amit licenses offshore Israel in 5,550 feet of water. It has an estimated 19 Tcf of discovered natural gas resources.

Following completion of the transaction, working interests in the Leviathan project will be Noble Energy (30%), Delek Drilling (16.94%), Avner Oil Exploration (16.94%), Woodside Petroleum (25%), and Ratio Oil Exploration (11.12%).

The deal is viewed as positive by Global Hunter Securities analyst Mike Kelly who says that Noble “fetches > $1B (vs. $802 MM previously expected) and gains a world-class partner on the LNG development front, bringing the Leviathan project closer to sanction.”

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Bob and Dolores Hope's Palm Springs Estate Gets a $16 Million Price Chop

The asking price of Bob and Dolores Hope's iconic Palm Springs estate has been dropped from $50 million to $34 million. The sprawling, 23,366-square-foot John Lautner-designed home originally came to market as a private listing in March of 2013 and was heralded as the desert's most expensive single-family home.   

Now the distinctive house, with its curved concrete lines, open courtyard and living room built to accommodate a boulder that juts into the room, will be listed on the Multiple Listing Service to attract a wider audience, according to The Desert Sun.    

STORY: Leonardo DiCaprio Sells Malibu Colony Spread for $17.35 Million 

Perched atop the Southridge neighborhood, the six-bedroom, 10-bathroom concrete, steel and glass house features indoor and outdoor pools, a tennis court, putting greens and murals by painter Garth Benton, who also created murals at the Getty Villa.

The home, which was used as a second residence by the Hopes, where they entertained frequently, was the largest residence ever designed and built by Lautner.

 Patrick Jordan and Stewart Smith of Windermere Real Estate in Palm Springs have the listing. 

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Itsa Energy acquired by Flow Data ownership group

Itsa Energy has been acquired by the ownership group of Flow Data, strategically positioning Itsa and Flow Data to support expansion of upstream and midstream service and solutions capabilities in the Texas oil and gas market. The alliance enhances both companies' existing abilities to drive service and automation technology as a total solution. 

Itsa Energy supports upstream and midstream automation, corporate systems, and enterprise solutions for oil and gas production and related operations.

Flow Data services and installs its product for upstream automation and control throughout North America. The company currently has operational facilities and field service teams in the Rockies, Williston Basin, Midcontinent, and Appalachian Basin regions. 

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Time Inc. Eyeing Move to Downtown Manhattan

Current corporate parent Time Warner will spin off Time Inc. and move to a new Manhattan building.

Time Inc., the magazine giant that Time Warner is planning to spin off later this year, is looking at leaving its headquarters at the Time & Life Building in midtown Manhattan to take advantage of lower rents in lower Manhattan, Bloomberg News reported, citing people familiar with the situation.

The largest U.S. magazine publisher, whose brands include Time, Sports Illustrated, People and Entertainment Weekly, has talked to real estate companies managing locations in the new World Trade Center complex and other downtown locations, as new CEO Joseph Ripp is looking to reduce costs, it said.

PHOTOS: Back to the Beach: Shorefront Real Estate Booms Once More

Time Inc. has been in its Avenue of the Americas headquarters near Rockefeller Center since the 1950s. Its lease expires in 2017. Time Warner itself recently unveiled a deal to move from its current headquarters in the Time Warner Center at Manhattan's Columbus Circle to a new Hudson Yards development slightly south of its current location.

Top office space in the current neighborhood of the Time Inc. headquarters costs an average of $82.35 per square foot late in 2013, compared with $53.79 for downtown areas, Bloomberg News said, citing data from real estate broker Cushman & Wakefield.

"We are currently exploring a number of real estate options," a Time Inc. spokeswoman confirmed.

Time Warner’s spinoff of Time Inc. will allow the entertainment conglomerate, led by CEO Jeff Bewkes, to focus on its cable networks and film businesses as the publishing arm has struggled amid changing consumer habits and lower advertising revenue in the digital age.

Conde Nast Publications has also agreed to leave midtown for lower Manhattan.

E-mail: Georg.Szalai@THR.com
Twitter: @georgszalai

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Senators ask EIA to study crude exports’ gasoline price effect

US Sens. Maria E. Cantwell (D-Wash.) and Ronald L. Wyden (D-Ore.) asked the US Energy Information Administration for more information on possible domestic gasoline price impacts from allowing more US crude oil to be exported.

“We would like to understand how allowing unlimited export of American crude oil might affect US oil production and consumption, nationally and regionally; domestic supplies and prices, nationally and regionally, for both crude oil (paid by refiners) and refined products (paid by consumers); and exports of refined products,” they said in a Feb. 3 letter to Adam Sieminski.

Cantwell, who is a senior Energy and Natural Resources Committee member, and Wyden, who chairs the committee, said they also would like EIA to identify transit modes and routes that exported crude might be expected to travel.

Contact Nick Snow at nicks@pennwell.com.

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Fiji Retreat Where Bill Gates, Jim Carrey and Celine Dion Stayed Hits the Market

Want to sleep where Bill Gates, Michelle Pfeiffer and Jim Carrey all relaxed? One of Fiji’s most luxurious properties will be auctioned off Friday, Feb. 7. Although the retreat was previously listed for $12.99 million with an additional guest residence also available for $6.99 million, the Concierge Auctions event will start with no reserve.

Named after the long-tailed birds that fly around the island, Lawedua is one of only five homes on Wakaya, the crown-jewel island owned by Fiji Water founder David Gilmore, who made the purchase in 1973. Perched high above white sand private beaches, the 10-acre estate is surrounded by a barrier reef that is designated as a protected marine reserve.

Designed by late Ski Lankan architect Geoffrey Bawa, the home is an example of “tropical modernism” where colonial architecture is fused with clean lines and open spaces, along with vaulted ceilings, bamboo details and matted walls.

Selling without reserve on Feb. 7, www.FijiLuxuryAuction.com.

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Residential Real Estate Firm Douglas Elliman Expands to Los Angeles

9440 Santa Monica Blvd., Beverly Hills

The Los Angeles real estate boom is attracting not only global buyers but real estate brokerages eager to get in on the market as well. Douglas Elliman Real Estate has announced its entrance into the Southern California market with plans to open offices in Beverly Hills by mid-March of this year.

The company is the largest residential brokerage firm in New York, with offices throughout New York City, Long Island, the Hamptons and South Florida. In total, more than 4,000 real estate agents work for the firm.

Elliman will launch its L.A. operations from 2,500-square-foot offices at 9440 Santa Monica Blvd. in Beverly Hills. Plans also include the rollout of additional Westside offices by the end of 2014.

STORY: Real Housewife Marisa Zanuck Opens Beverly Hills Real Estate Firm 

Real estate agents Tom Dunlap, who worked most recently as manager and executive vice president of John Aaroe Group, and Cory Weiss, who worked as a partner and director of Partner’s Trust, will head the office.  

“This company knows their clients and knows what type of agents they want and aren’t rushing this,” said Weiss, who is known for selling some of L.A.’s most architecturally significant homes, including landmark properties designed by John Lautner, Rudolph Schindler, Ray Kappe and Paul Williams.

And even though the offices have yet to open, the company already is trading in top-tier homes. "We have a major sale already under contract and an upcoming listing of one of L.A.’s most iconic architecturally significant houses," Weiss said.

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Murphy Oil makes new executive appointments

Murphy Oil Corp. (NYSE:MUR) has made a series of executive appointments, all effective immediately. Walter K. Compton has been promoted to executive vice president and general counsel. Kelli M. Hammock has been promoted to senior vice president of administration. John W. Dumas has been promoted to vice president of corporate insurance. Allan J. Misner has been promoted to vice president of internal audit. K. Todd Montgomery has been elected vice president of corporate planning and services, replacing Tom Mireles who has been promoted within Murphy Exploration & Production Co.

Compton joined the company’s law department in 1988 and was promoted to manager of law and corporate secretary in 1996. He was named vice president of law in 2009. In 2011, he was promoted to senior vice president and took on the role of general counsel. 

Hammock joined Murphy in 1993 as an associate accountant and subsequently received various promotions within the controller's department. In 2004, she was promoted to manager of purchasing and services in the administration department. Hammock was named general manager of administration in 2006 and was promoted to vice president of administration in 2009.

Dumas joined the company in 1988 as manager of corporate insurance. He was promoted to director of corporate insurance in 2005.

Misner joined Murphy in 2007 with over 22 years of experience in internal auditing. He is a certified public accountant, certified internal auditor, and certified information systems auditor.

Montgomery joined Murphy earlier this year and will oversee all corporate strategic planning, procurement, corporate reserves, and oil and gas marketing. He comes to Murphy with 25 years of experience from another major oil company. His experience includes global production and reservoir engineering, with management experience in development and strategic planning.  

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Harrison Ford's Son Willard Lists Kim Sing Theatre for $4.5 Million

Willard Ford is selling the Kim Sing Theatre space that he has owned since 1999. Ford, the son of Harrison Ford, is one of the pioneers of downtown’s Chinatown renaissance and is listing  the 10,000-square-foot mixed-use space for $4.5 million.

The former vaudeville house and movie theater was built in 1926 and redesigned by Ford, working in conjunction with XTen Architects. Changes to the site including cutting out the middle of the building to make an internal courtyard, and creating a three-tiered floor where it once sloped for theater seating. The original cinema marquee is intact.

STORY: The Woman Who Rules L.A.'s Most Precious Midday Real Estate

Over the 15 years that has Ford occupied the building, he has used it as a residence, a furniture and fashion showroom, and an event space.

"We have done launch events for BMW, Nike as well as corporate events for the Grammys, Pepsi and Star Wars in this place. It's great for all of that," he says. Flagship, Ford's sales and marketing agency for design, apparel and brands, will most likely relocate to downtown's Fashion District, he adds.

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David Kean of Teles Properties holds the listing and says that the unique Chinatown property will most likely go to an owner/user. "This is the perfect place for someone in entertainment; either an actor who wants a downtown base or a musician who could have a full recording studio here."

A recent uptick in Chinatown development, including large-scale residential projects such as Forrest City Development's $95 million Blossom Plaza, will add 250 rental units and 20,000 square feet of retail and residential space.

"A myriad of new hip shops, galleries and restaurants are starting to make their mark on the Chinatown historic streetscape," says Kean. "The first domino has fallen; more construction and growth is certain to follow."

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Consol Energy natural gas production up 44 percent in 2013

Consol Energy announced it produced an increase of 1.63 trillion cubic feet of gas equivalent (Tcfe) of reserves to reach 5.731 Tcfe by the end of 2013, up 44 percent year-over-year.

Consol Energy said it invested $679.7 million in extensions and discoveries in 2013. The company claims its drill bit finding and development cost of $0.42 per million cubic feet of gas equivalent (Mcfe) is one of the lowest in the industry. This is the fifth year Consol reported drill bit finding and development costs were lower than $0.50 per Mcfe.

"Much of the increase in reserves, through the category extensions and discoveries, was due to the company's highly successful Marcellus Shale program," Consol Energy said in a statement. "As of December 31, 2013, the Marcellus Shale consisted of 3,373 Bcfe of proved reserves."

Consol Energy said it will invest $1.5 billion in natural gas production in 2014 to meet its growth target of 30 percent and produce between 215 and 235 Bcfe. The company plans to focus these investments in Marcellus and Utica shale projects.

More information on the Marcellus shale and gas shale market can be found on PennEnergy's research area.

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L.A. Reid's Hamptons Estate Pipes Freeze in Polar Vortex

Dropping records may heat up the charts, but they flooded the Hamptons mansion of L.A. Reid.

The Sagaponack property of the Grammy-winning record executive and former X Factor judge, currently on the market for nearly $19 million, suffered some polar vortex damage last Saturday.

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According to Patch, the Bridgehampton fire department responded to an automatic fire alarm, arriving at the property as 911 dispatchers relayed that they had received a call from a housekeeper, reporting a fire in the finished basement. Engines were called off minutes later, as the fire chief concluded that the smoke was actually steam coming from the furnace room. The water was shut off, preventing further flooding due to the home's frozen pipes.

The 7,000-square-foot house has 8 bedrooms, 9.5 baths, a tennis court and saltwater swimming pool, reports The Real Deal. The finished basement level includes a gym and a temperature-controlled wine cellar, lined floor-to-ceiling with built-in bottle racks. The property was listed this past summer.

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In other L.A. Reid real estate news, The Real Deal also reports that the Epic Records chairman has sold his Park Avenue apartment  to Broadway producer Harold Prince for $16.5 million. The 5,000 square-foot condo at the corner of East 60th St. was listed in May 2013 for $18.9 million. Reid bought the unit in 2000 for $9.43 million.

The Hollywood Reporter photographed Reid -- and his impressive closet -- at the Manhattan apartment in May 2012. See the pictures here.

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FormCap acquiring Cowley County prospect in Kansas

FormCap Corp. (OTCQB: FRMC) is making payments to Keta Oil & Gas and Kerr Energy toward the purchase of oil and gas exploration and development leases in Cowley County, Kansas. Formcap will pay Kerr and Keta $200 per acre for up to 2,400 acres of leases, at a cost not to exceed $480,000 (the purchase price) unless agreed otherwise by the company.

Formcap is evaluating a specific block of 875 acres (from the 2,400 acre total) of prospective oil leases to acquire from Kerr and Keta. The company will own 100% of the leases (80% net revenue to FormCap; 20% freehold royalty), and will be operator. FormCap will also have the option to purchase additional leases in Cowley County from Kerr and Keta under an Area of Mutual Interest, the terms of which are set forth in the agreement.

Per the agreement, FormCap is required to drill one well in each of the first two years of the lease term to maintain its interest in the leases, and will have the option to participate in the drilling of up to six exploration or development wells on lands currently owned by Keta and Kerr.

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Oprah Winfrey Lists Chicago Condo for $7.75 Million

Oprah Winfrey wants $7.75 million for her longtime Water Tower Place condo.

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Winfrey expanded upon the spread after originally buying a 57th-floor unit in 1985. She later paid $1.06 for the unit directly below and $1.5 for an adjoining 56th-floor condo. The final unit, which she bought for $1 million, is also on that floor.

The full 9,600-square foot condo features four bedrooms and five bathrooms. Pamela Sage of Baird & Warner has the listing.

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Halliburton announces unconventional resource development partnership

Halliburton (NYSE: HAL) announces the signing of a partnership agreement with Gubkin Russian State University of Oil and Gas for the development of unconventional resources in Russia, including the Bazhenov shale. A signing ceremony took place on January 30 at the university.

As part of the agreement, Halliburton will provide senior technical and management staff to serve on Gubkin's Industry Advisory Boards, as well as provide the foundation material for Gubkin's unconventional curriculum that will become the basis for student and industry training. In addition, Halliburton will work with Gubkin to explore basic applied research opportunities in conventional and unconventional resource development, provide assistance with student projects, and pursue R&D opportunities with Russian industry partners.

According to Brady Murphy, Halliburton’s Senior Vice President of Business Development, “Halliburton is positioned to provide the most recent ideas in unconventional development as well as state-of-the-art research and development solutions for the Bazhenov in Russia.” Speaking at the signing ceremony, university Rector Viktor Martynov noted that "by collaborating with Halliburton, Gubkin will be able to offer students and industry personnel real-world experience in unconventional resource development.”

According to published reports Russia may hold as many as 680 trillion cubic meters of unconventional resources, which include gas from shale, sandstones and coal beds. Konstantin Schilin, Halliburton’s Vice President for Russia, noted that Halliburton, as well as local companies, will require new graduates with the requisite knowledge and training to tackle the challenges of the Bazhenov and other unconventional resources.

Professor Mikhail Silin, university Vice Rector in charge of innovation activity and commercialization of new developments, noted that "by partnering with Halliburton, Gubkin is now in a position to create a collaborative framework to strengthen our educational curriculum and learning environment and to prepare students to contribute more to their employers upon graduation.”

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New VFX Firm Magnopus Sets Up in Downtown L.A.

A version of this story first appeared in the Jan. 31 issue of The Hollywood Reporter magazine.

Magnopus, a newly created company founded by Oscar-winning visual effects artists Ben Grossman and Alex Henning (Hugo), along with Rodrigo Teixeira, has just signed a five-year lease for creative offices in downtown L.A.'s PacMutual building.

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"We looked in Santa Monica, Venice and Culver City, but downtown L.A. offers us the ability to connect with other companies and clients around the globe," says Teixeira, who describes the company as a "visual research firm that does work in the entertainment industry and beyond."

Grossman, nominated this year for Star Trek Into Darkness, and his fellow founders along with 20-plus employees, will occupy a 5,000-square-foot space on the penthouse level. Other tenants in the Beaux Art structure, where Showtime's House of Lies is filmed, include women's clothing retailer Nasty Gal, which has 60,000-square-foot offices.

"We've done 51 leases in here and Magnopus is the first entertainment tenant," says Industry Partners agent Carle Pierose, who handles all brokerage and marketing of the building for owner Realty Rising. Pierose says the Magnopus move is indicative of downtown L.A.'s growing appeal for creative office tenants.

"A lot of knowledge workers are living in Silver Lake and Los Feliz, and downtown's amenity base has finally caught up to what the entertainment industry expects for doing business. Right now you can get leases for $3 a square foot here, while Santa Monica is more like $6. But that could change as downtown catches up."

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Oil and gas: CLS Offshore opens new office in Hull

Business is already brisk at the new Hull base for energy sector services company CLS Offshore, which was officially opened by city councillor Martin Mancey today.

Guests at the official unveiling and open day at the Marfleet Environmental Industries Park, were told that since CLS moved in on January 2nd there had been several serious enquiries from major existing and potential clients.

"We've had many messages of welcome along with potential business opportunities, which could be worth around £20m over the next five years," said Scott McMillan, managing director of CLS Offshore.

"The next stage is that from July we hope to progress plans for a fabrication workshop on an adjacent site, which will mirror our head office facility in Great Yarmouth, and employ up to 75 onshore and offshore personnel, mainly recruited locally. We're happy to be in Hull, delighted by what is has to offer and excited by the prospects ahead."

The company is keen to work with local educational facilities regarding future prospects for students and has already been in discussion with the University of Hull and HETA (Humberside Engineering Training Association) on working together.

Cllr Mancey, cabinet portfolio holder for Hull City Council, said: "The decision by CLS to come to the area represents a significant investment locally and clearly demonstrates the potential of the area to secure new highly skilled employment opportunities.

"As such I would like to officially welcome CLS to the city and wish them every success in the future."

Hull East MP Karl Turner MP said he was delighted to hear that CLS had extended its successful operation in Great Yarmouth to Hull.

“It has a solid track record in the energy sector and this move will strengthen the region's energy credentials. This is exactly the type of company we need to attract to Hull, a developing company with confidence. This extension will help to stimulate the local economy and create jobs.”

More than 90 business, education and political guests visited the new premises during the open day and reception which was highlighted by councillor Mancey unveiling a commemorative plaque.

CLS staff were on hand to meet visitors and discuss the wide and varied services of CLS within the oil, gas, marine and renewable energy sectors.

Steady expansion has been the CLS brief over the last two years; seven new employees have started since the beginning of 2014, boosting the company workforce to more than 160.

It is currently recruiting experienced offshore personnel from riggers through to technicians and an onshore team ranging from pipefitters to welders.

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Survey Confirms Earthquake Fault Line Runs Through Planned Millennium Hollywood Project

Millennium Hollywood project rendering (right)

The California Geographical Survey on Wednesday released an earthquake map charting the course of the Hollywood Fault at City Hall. The map shows that major planned developments -- including an apartment complex on Yucca Street and, most notably, the controversial two-tower Millennium Hollywood skyscraper project -- are much closer to an active fault than previously claimed.

The $664 million Millennium Hollywood project -- a pair of proposed 35- and 39-story towers that would include one million square feet of hotel, office and retail space -- got an OK from the Los Angeles City Council on July 24, despite a huge opposition campaign claiming city reports far underplay traffic increases and a serious seismic situation.

STORY: Earthquake Fault Line Shakes Up Hollywood's Skyscraper Plan

In November 2012, city officials acknowledged that they had used outdated fault maps when the Millennium project was approved. The newly released state geographical maps show a fault line much closer to many proposed projects, including the Millennium Hollywood towers. State law requires that any new development within a zone of approximately 500 feet around a fault line be subject to extensive seismic testing. The law also prohibits building directly on top of faults.

“The California Geological Survey map today confirms what my clients have been saying -- that the Hollywood Earthquake Fault runs right through the Millennium property,” said attorney Robert P. Silverstein in a statement. Representing a citywide coalition of community groups that is suing to overturn the City Council’s approval of the Millennium Hollywood project, Silverstein added that “this map will now become ‘Exhibit 1’ in our lawsuit.”

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BNSF approves $5 B capital commitment program

BNSF Railway Co. (BNSF) has approved a new single-year record capital commitment plan of $5 billion for 2014, a $1 billion increase over its 2013 capital spend.

The largest component of the capital plan is spending $2.3 billion on BNSF’s core network and related assets. BNSF also plans to spend $1.6 billion on locomotive, freight car, and other equipment acquisitions. In addition, the program includes about $200 million for continued installation of positive train control (PTC) and $900 million for terminal, line, and intermodal expansion and efficiency projects.

BNSF handled more than 50% of the volume increases for the rail industry in 2013. The growth was led by an 8% increase in domestic intermodal units, an 11% increase in industrial product volumes led by crude-by-rail traffic, a 3% increase in coal volumes, and a fourth-quarter surge in agricultural products. This growth is on top of a 2012 BNSF total volume base of more than 9.6 million units. Much of the capacity expansion in the 2014 capital plan is for infrastructure investment on BNSF’s Northern Corridor to put the company in position to meet all customer service expectations, including Amtrak.

BNSF’s expansion and efficiency projects will be primarily focused on line capacity improvements to accommodate growth in agricultural products, intermodal, automotive, and industrial products volumes related to crude oil production, and other terminal improvements to enhance productivity and velocity. More than $900 million of the capital plan is for expansion and maintenance in the Northern Corridor.

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SBE to Occupy Variety's Wilshire Blvd. Offices

SBE, founded by nightlife and hotel impresario Sam Nazarian, will lease the top two floors of 5900 Wilshire, reports the Los Angeles Times, leaving its current offices near Beverly Blvd. and Fairfax, and moving into the Variety space. The trade magazine’s sign, which was removed last November from the top of the building, will be replaced with an SBE sign by spring.

Nazarian and his 100 employees will be in good company in their new 30,000-square-foot digs: Robert Redford’s Sundance Institute and Millennium Entertainment also have offices in the William J. Pereira-designed, 31-story building, which is located across the street from the Los Angeles County Museum of Art. (Pereira designed that original campus as well.)

SBE, which operates hotels, restaurants and nightclubs such as SLS, Katsuya and Hyde, is planning a second SLS hotel in Los Angeles in the Grand Ave. development on Bunker Hill.

Variety will relocate to Penske’s corporate headquarters in Westwood.

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Baytex to acquire Aurora for $2.6 billion

Baytex Energy Corp., Calgary, has agreed to acquire Aurora Oil & Gas Ltd., Subiaco, Western Australia, for $2.6 billion, providing Baytex with 22,200 net contiguous acres in the Sugarkane field in the Eagle Ford shale of South Texas.

Aurora’s fourth-quarter 2013 gross production was 24,678 boe/d (82% liquids) of predominantly light, high-quality crude oil. The company forecasted this year’s average gross production at 29,000-32,000 boe/d, about a 43% increase from 2013.

Baytex said Sugarkane field has been largely delineated with infrastructure in place, facilitating low-risk future annual production growth. The company added that the assets have future reserves upside potential from well downspacing, improving completion techniques, and new development targets in additional zones.

Following the purchase, Baytex’s 2014 production is expected to reach 85,000 boe/d, comprised of 53% heavy oil, 34% light oil and liquids, and 13% natural gas.

The deal gives Baytex additional proved reserves of 106.7 million boe and proved plus probable reserves of 166.6 million boe.

Baytex in 2012 purchased 100% working interest in 46 sections of undeveloped oil sands leases in the Cold Lake region of northeastern Alberta for $120 million (OGJ Online, Oct. 4, 2012). Provincial authorities had conditionally approved the company’s 1,200 steam-assisted gravity drainage (SAGD) pilot and a 10,000-b/d development that was expected to launch in 2013.

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The Academy Sells Hollywood City Block to Kilroy Realty Corporation

In an off-market transaction, Kilroy Realty Corporation has purchased a four-acre Hollywood parcel from the Academy of Motion Picture Arts and Sciences for $48 million.  Located immediately north of the Academy’s Pickford Center for Motion Picture Study, the full city-block site was originally intended to house the future Academy Museum of Motion Pictures when it was acquired by AMPAS in 2005 for $50 million.

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However, in October 2011, the Academy and the Los Angeles Country Museum of Art announced a partnership through which the movie museum would be housed in the Wilshire May Co. building on the LACMA campus.

With the purchase now complete, Kilroy Realty Corporation has announced plans to seek approval and entitlements to develop a creative media mixed-use campus on the site. Plans include more than 450,000 square feet of office space, apartments and retail space with Shimoda Design Group spearheading the design.

STORY: Academy Selling Hollywood Property Once Intended for Museum 

The deal marks another major Hollywood project for Kilroy Realty Corporation, and another move towards the area's ongoing revitalization, which has faced recent setbacks with a newly released California Geological Survey that could indefinitely stall mega projects, such as the Millennium Hollywood towers.

But all of Kilroy Realty's large-scale developments -- including the Columbia Square project as well as the renovation of Sunset Media Center, a 22-story, 322,000-square-foot office complex on Sunset Boulevard just east of Vine -- are far from the earthquake fault lines, says KRC's executive vice president David Simon. "We’re not near any of the study zones. We’re in the area where development can and will happen," he says.

"The Academy site will be different from Columbia Square," says Simon, referencing the 675,000 square-foot mixed use campus located on the former site of CBS Los Angeles' television and radio operation, which began construction last year. "This is going to be more about housing smaller production and post-production companies, whereas Columbia will be more focused on larger headquarter users, entertainment and media technology companies. The Academy site will have very stylish rental units, but at a more accessible price point."

Simon added that KRC will continue AMPAS' "Oscars Outdoors" open-air summer movie screening series until construction begins: "We're currently talking to the Academy about a multitude of ideas to continue the summer film shows, and beyond."

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Time Warner Sells Manhattan Headquarters for $1.3 Billion, Unveils Relocation Plans

Time Warner has agreed to sell its midtown Manhattan headquarters for $1.3 billion and plans to move its operations in the Big Apple under one roof in a new building on the far West Side of Manhattan, the entertainment conglomerate said Thursday.

The sale agreement with real estate firm Related Companies and partners for the Time Warner Center, on whose construction the entertainment conglomerate spent around $520 million about a decade ago, is the result of TW's exploration of its real estate options for the past two and a half years.

Time Warner, led by chairman and CEO Jeff Bewkes, has been looking to save money and consolidate the staff of its various operations. It currently has seven office locations in New York. Most of the leases are believed to be up in 2017.

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TW will lease office space in the Time Warner Center until early 2019, the firm said Thursday.

TW said it has sold the 1.1 million square feet of office space it owns in Time Warner Center to a venture of Related Companies, an entity owned by the Abu Dhabi Investment Authority and GIC.

Additionally, TW, Related and Oxford Properties Group said they plan to relocate the company’s corporate headquarters and its New York City-based employees to Hudson Yards, on the West Side of Manhattan. TW has made an initial financial commitment, they said, without providing further details.
Related has been developing a new commercial tower in the Hudson Yards neighborhood, south of Times Square. It is a skyscraper set to be built at the corner of 10th Avenue and 33rd Street.

The far West of Manhattan has offered cheaper real estate prices in an effort to revitalize the area and attract people and companies. Previous chatter suggested that TW could save $100 million or more by moving office space.

Said Bewkes: "The sale of our office space in Time Warner Center to Related Companies and its partners is an important step toward moving our New York City-based employees into a dynamic new complex that will foster even more collaboration, creativity and efficiency across our businesses."

He added: "By consolidating our space to Hudson Yards, New York’s next great neighborhood, we will be able to reallocate substantial savings to our primary business of creating and sharing great storytelling in television, film and journalism with audiences around the world."

Email: Georg.Szalai@THR.com
Twitter: @georgszalai

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Baytex acquires Aurora Oil & Gas for $2.4 billion

Baytex Energy Corp. said it will acquire Australia-based Aurora Oil & Gas for $2.4 billion, which is the largest acquisition ever for the Canadian natural gas development and exploration company. Baytex will also take on Aurora Oil & Gas' debt of about $672 million. In the agreement with Aurora Oil & Gas, Baytex will be able to operate in Sugarkane field in south Texas, which is at the core of the Eagle Ford shale, Reuters reported.

"Baytex will acquire premier acreage in the core of the Eagle Ford, one of the leading shale oil plays in the U.S.," James Bowzer, president and chief executive officer of Baytex said in a statement.

Aurora's Sugarkane field includes 22,200 acres and 166.6 million barrels of reserves. U.S. oil production is expected to ultimately grow to a 25-year high with the help of major shale regions like the Eagle Ford, according to Reuters.

"This is a highly accretive transaction on a per share basis to reserves, production, and funds from operations,"Bower said. "The Eagle Ford play provides not only exposure to light oil, but also to Gulf Coast crude oil markets with established transportation systems."

More information on the Eagle Ford shale can be found on PennEnergy's research area.

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Hot Hollywood Architect Richard Landry Lists L.A. Offices for $6.2 Million

Architect Richard Landry has listed his West Los Angeles architecture and design office for $6.2 million.

The Canadian architect, who has created mega mansions in many architectural styles for clients such as Tom Brady and Gisele Bundchen, Mark Wahlberg, Haim Saban and Wayne Gretzky, has worked from the 7,900-square-foot, two-story building for almost two decades. Included in the 1967 building are open workspace areas, three conference rooms, a full kitchen, wooden beamed ceilings, exposed brick and plenty of private parking for high-profile clients.

STORY: Hot Hollywood Architect Finishes Mark Wahlberg's 30,000-Square-Foot Beverly Hills French Manor

With a staff of 40 and a massive list of projects — including more than 8 million square feet of residential construction in China and a slew of U.S. projects, including a second 14,000-square-foot mansion for Brady and Bundchen in Brookline, Mass. — Landry has opted to invest in offices that are double its current size.

In December, he closed on a $6.15 million, 14,000-square-foot former animal hospital located on Sepulveda Boulevard in West Los Angeles. Landry is currently beginning a top-to-bottom renovation on the space, which is expected to be completed in late 2014. 

Sperry Van Ness and Peter Hernandez of Teles Properties share the original Landry Design Group building listing.

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Baytex to acquire Aurora for $2.6 billion

Baytex Energy Corp., Calgary, has agreed to acquire Aurora Oil & Gas Ltd., Subiaco, Western Australia, for $2.6 billion, providing Baytex with 22,200 net contiguous acres in the Sugarkane field in the Eagle Ford shale of South Texas.

Aurora’s fourth-quarter 2013 gross production was 24,678 boe/d (82% liquids) of predominantly light, high-quality crude oil. The company forecasted this year’s average gross production at 29,000-32,000 boe/d, about a 43% increase from 2013.

Baytex said Sugarkane field has been largely delineated with infrastructure in place, facilitating low-risk future annual production growth. The company added that the assets have future reserves upside potential from well downspacing, improving completion techniques, and new development targets in additional zones.

Following the purchase, Baytex’s 2014 production is expected to reach 85,000 boe/d, comprised of 53% heavy oil, 34% light oil and liquids, and 13% natural gas.

The deal gives Baytex additional proved reserves of 106.7 million boe and proved plus probable reserves of 166.6 million boe.

Baytex in 2012 purchased 100% working interest in 46 sections of undeveloped oil sands leases in the Cold Lake region of northeastern Alberta for $120 million (OGJ Online, Oct. 4, 2012). Provincial authorities had conditionally approved the company’s 1,200 steam-assisted gravity drainage (SAGD) pilot and a 10,000-b/d development that was expected to launch in 2013.

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L.A.'s Creative Office Hotspots for 2014

Three commercial real estate experts share with The Hollywood Reporter about how they would cast their votes for Los Angeles' next wave of entertainment office deals:

George Garfield, President, West Region, Transwestern:

Perhaps the hottest entertainment real estate story of 2013 came from L.A.'s nontraditional entertainment firms. As we look at the Internet's influence on entertainment, this is the most interesting: Online distribution platforms for YouTube, Netflix and Amazon Studios shook up the scene with plans to produce branded content separate from that of TV, cable and movie studios. They require their own kinds of studios and are among the largest new space users in the city. YouTube Space LA in Playa Vista is a prototype of creative studios set within formerly obsolete buildings. And there is new office demand from digital media firms and advertising agencies looking to capitalize on the growth of these nontraditional studios. Santa Monica and the Lower Westside are still hot markets. But 2014 might be the year that the Hollywood submarket takes off, with increased development on Sunset Boulevard near Sunset Gower Studios, as well as Hollywood and Downtown.

Additionally, large studios will continue consolidation into real estate footprints they own and control. For example, as Comcast completes its acquisition of NBC Universal, it too may consolidate Los Angeles operations. Following Comcast's recent purchase of 10 Universal City Plaza -- the 35-story tower adjacent to Universal Studios -- additional NBC Universal personnel moved into the building. Such moves may serve as an example of how consolidation could proceed in 2014 and the years to come.

STORY: Silicon Beach Boom Hits the Playa Vista Housing Market

Andrew Jennison, Partner, Industry Partners:

When vacancy rates for true creative and soft creative space in Santa Monica hover around 6 percent, then the natural migration is for tenants to look east and west at options that are potentially more abundant and less expensive. A typical tenant evaluating the marketplace will strongly consider relocating out of their desired geographic if there is a $0.30-$0.50/square foot savings in rent. Right now, I envision more creative tenants will consider tertiary markets for creative space given the lack of availability on the Westside. The submarket I see attracting creative tenants this year are El Segundo and DTLA. Both offer unique creative options at a very competitive price point. For so many years, DTLA was never considered an option unless you were in the service business. With all of the real estate activity taking place there -- residential, hospitality like the Ace Hotel and the influx of restaurants -- it is becoming a lively epicenter. Businesses see the transformation and know about it and will respond to it by moving their offices there.

Eric Sussman, UCLA School, senior lecturer, Ziman Center of Real Estate, UCLA Anderson School of Management:

There is no question that downtown L.A. is going to be super hot and a magnet for entertainment tenants. It has got a coolness factor -- these are the kind of tenants who don't just want vanilla shell, yawner office space. It has to have polished concrete floors, open space and exposed vents -- that kind of thing. Downtown L.A. is getting that cool factor, and you combine that with a 15 percent vacancy rate and reasonably affordable high-density housing, and it makes sense they you're going to see creative office deals there this year.

Playa Vista also hits a lot of those factors. It's the whole package, with that cool factor and office space that isn't your dropped-ceiling, traditional tower thing. That's another area where we're likely to see more deals this year.

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Baytex to acquire Aurora Oil & Gas, strategic Eagle Ford acreage

Baytex Energy Corp., an oil and gas corporation based in Calgary, Alberta, Canada, has agreed to acquire Aurora Oil & Gas Ltd. for $2.6 billion, providing Baytex with 22,200 net contiguous acres in the Sugarkane field of the Eagle Ford shale play in South Texas. The total consideration to be paid by Baytex is $1.8 billion, plus assumed debt of $744 million, for a total transaction value of $2.6 billion. All amounts are in Canadian dollars.

Aurora’s fourth-quarter 2013 gross production was 24,678 boe/d (82% liquids) of predominantly light, high-quality crude oil. The company forecasted this year’s average gross production at 29,000–32,000 boe/d, about a 43% increase from 2013.

The Sugarkane field has been largely delineated with infrastructure in place, facilitating low-risk future annual production growth. The company noted that the assets have future reserves upside potential from well downspacing, improving completion techniques, and new development targets in additional zones.

Following the purchase, Baytex’s 2014 production is expected to reach 85,000 boe/d, comprising 53% heavy oil, 34% light oil and liquids, and 13% natural gas. The deal gives Baytex additional proved reserves of 106.7 million boe and proved plus probable reserves of 166.6 million boe.

Regarding the acquisition, Baytex President and CEO James Bowzer said, “Baytex will acquire premier acreage in the core of the Eagle Ford, one of the leading shale oil plays in the US. The acquisition will provide our shareholders with exposure to low-risk, repeatable, high-return projects with leading capital efficiencies. This is a highly accretive transaction on a per share basis to reserves, production, and funds from operations. The Eagle Ford play provides not only exposure to light oil, but also to Gulf Coast crude oil markets with established transportation systems. A portion of the produced crude oil benefits from Louisiana Light Sweet based pricing, which currently trades at a premium to WTI.”

In 2012, Baytex purchased 100% working interest in 46 sections of undeveloped oil sands leases in the Cold Lake region of northeastern Alberta, Canada, for $120 million. Provincial authorities had conditionally approved the company’s 1,200 steam-assisted gravity drainage (SAGD) pilot and a 10,000-b/d development that was expected to launch in 2013.

Baytex is engaged in the acquisition, development, and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Williston Basin in the US.

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New Line Cinema to Move to Warner Bros. Lot

New Line Cinema will move onto the Warner Bros. lot in Burbank in June 2014, taking over offices formerly occupied by Legendary Entertainment.

The Warners-owned studio, which produced Oscar Award-winning The Lord of the Rings trilogy as well as Wedding Crashers, Horrible Bosses and We're the Millers, has operated out of a Los Angeles headquarters at Robertson Plaza in West Hollywood.

STORY: Comcast Purchases Universal's 'Black Tower' Building

The separate offices date back to New Line's origins as an independent studio run by Bob Shaye and Michael Lynne, who left the company in 2008 as its operations were folded into Warner Bros. 

Now New Line, run by Toby Emmerich, is preparing to move into the plush offices of building 76, which was used by Warner Bros. Records from the late 1950s until 1978 and later, during the 1980s, housed offices for producer Paula Weinstein, James Garner and John Travolta. Most recently, Thomas Tull's Legendary Entertainment occupied the building until its high-profile breakup with Warner Bros. last year. 

Tull signed a deal with Universal and moved the studio to The Pointe, a LEED Gold-certified office tower located less than a mile from the Warner Bros. lot.

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Noble to farm out part of Leviathan interest

Noble Energy Inc. has signed a nonbinding memorandum of understanding regarding the sale of 9.66% interest in the Leviathan licenses offshore Israel to Woodside Petroleum Ltd.

Leviathan’s current partners—Noble Energy, Delek Drilling, Avner Oil Exploration, and Ratio Oil Exploration—are each participating as sellers of 25% interest in the licenses to Woodside.

Noble will continue as upstream operator with 30% working interest. Following completion of the transaction, Woodside will become the operator of any LNG development of the field.

The Leviathan project is on the Rachel and Amit licenses offshore Israel in 5,550 ft of water. It is thought to contain 19 tcf of discovered natural gas resources.

Total compensation to Noble is expected to include $525 million in cash payments, including $390 million payable at this year’s closing of the transaction, plus $502 million in shared future revenues.

Noble started drilling at Leviathan in 2010 (OGJ Online, Oct. 19, 2010), later estimating production of as much as 750 MMcfd for Israel via a northern entry point in 2016 (OGJ Online, Dec. 7, 2012).

Working interests in the Leviathan project after the transaction is complete will be Noble 30%, Woodside 25%, Delek Drilling 16.94%, Avner Oil Exploration 16.94%, and Ratio Oil Exploration 11.12%.

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Comcast Unveils $1.2 Billion Philadelphia Skyscraper Proposal

Comcast has unveiled a $1.2 billion proposal for a new 59-story skyscraper to house its corporate headquarters in Philadelphia.

Construction on the 1,121-foot-high building, designed by Norman Foster of Foster + Partners, is expected to begin this summer and be completed by late 2017.

"This is yet another historic moment for Comcast," said Comcast CEO Brian L. Roberts in a statement. "We continue to be proud to call Philadelphia our home, and are thrilled to build a world-class media, technology and innovation center right in the heart of the city, to bring NBC 10 and Telemundo 62 downtown, and to create thousands of jobs and further drive economic activity in the region."

Once completed the skyscraper, titled The Comcast Innovation and Technology Center, will rank among the tallest buildings in the United States. In addition to housing Comcast, the building will house a 200-room Four Seasons hotel.

"If you want a city behind your project, a hotel is a great way to get through the entitlement process," Paul Habibi, a real estate developer and professor at the Ziman Center for Real Estate at UCLA, tells The Hollywood Reporter. "Cities want the tax revenue. And attaching an architect like Norman Foster to the project is another way to win hearts and minds during approvals processes."

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Statoil targets mid-year restart for Njord production platform offshore Norway

Offshore staff

ABERDEEN, UK -- This summer Statoil expects to complete reinforcement of the deck of the Njord A semisubmersible platform in the Norwegian Sea.

Production and drilling operations on the Njord field and the satellite Hyme field were suspended last year following concerns over the deck’s structural integrity.

Once complete, production will re-start from both fields.  But due to continued weight restrictions, Njord A will remain without a drilling facility unless further strengthening is done.

Partner Faroe Petroleum says a further 170 MMboe of resources could be developed in the Njord area, via  a combination of production from the field’s existing wells, further in-fill drilling on Njord, and development of the North West Flank rich gas and condensate accumulations and the recent Snilehorn oil discovery.

At the Brage field in the Norwegian North Sea (Faroe 14.26%), Wintershall succeeded Statoil as operator last October, and is currently assessing infill drilling targets. Two new production wells are under way and should come onstream this spring and fall.

2/6/14

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Woodside closes in on entry to deepwater Leviathan gas project offshore Israel

Offshore staff

PERTH, Australia – Woodside has moved a step close to taking an interest in the giant Leviathan gas field offshore Israel.

The company has agreed to a non-binding memorandum of understanding with operator Noble Energy Mediterranean and partners Delek Drilling, Avner Oil Exploration, and Ratio Oil Exploration (1992).

This could lead to Woodside acquiring 25% of the petroleum licenses containing Leviathan, 349/Rachel, and 350/Amit. Negotiations are expected to be completed by March 27.

Noble estimates the field’s 2C contingent resource at 18.9 tcf (535 bcm) of natural gas and 34.1 MMbbl of condensate. Water depth is around 5,500 ft (1,676 m).

Woodside would operate any LNG development of the field, while Noble Energy would remain upstream operator.

The MoU contemplates supplying gas for Israel’s domestic needs, LNG exports, and supply to neighboring countries. It could involve the following conditional payments:

$850 million upon completion of the transaction under a fully termed agreement$350 million on a final investment decision for an LNG development or payments of up to $350 million on predetermined export project milestones5.75% of Woodside’s wellhead export gas revenue, taking effect after at least 2 tcf (56 bcm) have been exported from the Leviathan field, and capped at $1.3 billionA royalty payment of 2.5% on commercial oil production from the deep prospect in the Mesozoic, following payback of development costs.

These transactions remain subject to execution of a fully termed agreement and regulatory approvals from the Israeli government.

Charles D. Davidson, Noble Energy’s chairman and CEO, said “Woodside…brings extensive global expertise in LNG operations and marketing to the partnership. Their addition to the project will result in substantial added value while also bringing us much closer to when we will be able to sanction Leviathan for development.”

02/07/2014

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Continental Resources announces 2013 record proved oil and gas reserves

Continental Resources, Inc. (NYSE: CLR) (the "Company") today announced record proved reserves and production for 2013, as well as key fourth-quarter 2013 cost metrics and capital expenditures.

"Our teams delivered another excellent year, achieving production and capital expenditure guidance as promised," said Harold G. Hamm, Chairman and Chief Executive Officer. "We accomplished our key 2013 goals across the board – to generate top-tier organic oil production growth; to improve efficiency while reducing drilling and completion costs; and to delineate the lower benches of the Bakken and southern portions of the South Central Oklahoma Oil Province, or SCOOP.

"In spite of abnormal winter weather in December and January that delayed some completions and deliveries, we still achieved our 2013 targets, and our annual guidance is intact for strong growth in 2014, with production increasing in a range of 26% to 32%," Mr. Hamm said.

Proved Reserves Increase 38% Year over Year
The Company reported proved reserves of 1.08 billion barrels of oil equivalent (Boe) at December 31, 2013, an increase of 299 million barrels of oil equivalent (MMBoe) or 38% compared with year-end 2012.[1] Year-end 2013 proved reserves were 87% operated by the Company, 37% proved developed producing (PDP), and 68% crude oil. Continental has grown its proved reserves at a compound annual growth rate of 47% per year since year-end 2008.

In 2013, Continental's PDP reserves for the first time exceeded 400 MMBoe. PDP reserves increased 31% from year-end 2012 to 405 MMBoe at December 31, 2013. The Company had 2,330 gross (1,302 net) proved undeveloped (PUD) locations at year-end 2013. The Bakken accounted for 84% of PUD locations at year end.

Continental's year-end 2013 proved reserves had a net present value discounted at 10% (PV-10) of $20.2 billion, a 52% increase over the PV-10 of $13.3 billion for year-end 2012 proved reserves.

The strong increase in 2013 proved reserves reflected significant production growth in the Bakken play of North Dakota and Montana. Continental pioneered development of the upper Three Forks in 2008, and in the past year has led in the exploration of the lower benches of the Three Forks, in addition to leading the way with pilot down-space testing across the basin. The Bakken accounted for 741 MMBoe of Continental's 2013 proved reserves, with a PV-10 value of $14.5 billion.

Continental's 2013 proved reserves were also augmented by accelerated production in the SCOOP, an oil- and liquids-rich play in Oklahoma. SCOOP accounted for 215 MMBoe of 2013 proved reserves, a 241% increase over proved reserves of 63 MMBoe at year-end 2012. The PV-10 value of the Company's SCOOP proved reserves was $3.3 billion as of December 31, 2013.

"We ramped up our SCOOP rig count early in 2013 and delivered strong results in a capital-efficient manner within our budget for the year," said W. F. "Rick" Bott, President and Chief Operating Officer.

Continental holds the dominant leasehold positions in the Bakken and SCOOP, with 1.2 million net acres in the Bakken and 403,000 net acres in SCOOP as of December 31, 2013. The Company also has the industry's most active drilling program in each play.

Production Grows 39% Year-Over-Year Within Capital Budget
Estimated total production was 49.6 MMBoe for 2013, an increase of 39% compared to 2012. Crude oil accounted for 71% of total production, or 35.0 MMBo, in 2013. Estimated natural gas production for the year was 87.7 billion cubic feet.

Capital expenditures excluding acquisitions for 2013 were just under the budget of $3.6 billion, which included $3.1 billion for drilling and completion operations. Acquisition capital expenditures were $270 million for 2013.

Fourth Quarter Production and Expenses
The Company announced production of 13.3 MMBoe for the fourth quarter of 2013, a year-over-year increase of 35% compared with the fourth quarter of 2012. Fourth quarter 2013 average production was 144,250 Boe per day, representing a 2% increase over the third quarter of 2013. The Company reached a new production milestone of 150,000 Boe per day during November, prior to experiencing winter weather delays. Continental has recently regained the 150,000 Boe per day production level.

"We had a great 2013," Mr. Bott said. "Weather affected the fourth quarter, but the timing of production gains also reflects our continued shift to large, multi-well drilling pads. This is a key driver of future efficiency gains and production growth.

"Such strong execution continues to underpin our confidence in achieving Continental's five-year plan to triple production and proved reserves," he said.

Continental began 2014 with an inventory of more than 100 gross wells that have been drilled, but are not yet producing, almost all of which are associated with multi-well pads.

Fourth quarter 2013 oil differential (discount to WTI crude and inclusive of all transportation) is expected to be approximately $13 per barrel, about twice as high as the average for the first nine months of the year. Full-year 2013 differential is expected to be approximately $8.25 per barrel, compared with annual guidance range of $6 to $8 per barrel.

Lower volumes due to winter weather delays and the Company's mix of wells in the fourth quarter of 2013 also impacted production expense per Boe and depreciation, depletion and amortization (DD&A) per Boe. Production expense for the fourth quarter of 2013 is expected to be approximately $0.90 above the third quarter 2013 level of $5.17 per Boe. DD&A for the fourth quarter of 2013 is expected to be approximately $1.50 above the third quarter 2013 level of $18.87 per Boe. For 2013 as a whole, the Company expects both production expense per Boe and DD&A per Boe to be within annual guidance.

The Company reaffirmed its 2014 guidance as announced in its third quarter earnings release on November 6, 2013.

Fourth Quarter and Full-Year Earnings Announcement and Conference Call
Continental plans to announce fourth quarter and full-year 2013 earnings on Wednesday, February 26, 2014, following the close of trading on the New York Stock Exchange. The company plans to host a conference call to discuss earnings results on Thursday, February 27, 2014, at 11 a.m. ET (10 a.m. CT). Those wishing to listen to the conference call may do so via the Company's website at www.CLR.com or by phone:
Time and date: 11 a.m. ET, Thursday, February 27, 2014
Dial in: 800 708 4539
Intl. dial in: 847 619 6396
Pass code: 36590660

A replay of the call will be available for 30 days on the Company's website or by dialing:
Replay number: 888 843 7419
Intl. replay 630 652 3042
Pass code: 36590660

Continental plans to publish a fourth quarter and full-year 2013 summary presentation to its website at www.CLR.com prior to the start of its earnings conference call on February 27, 2014.

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