11-5-13 7:44 AM EST | Email Article

By Liam Moloney


ROME--Italian energy firm, Eni SpA (E) said Tuesday it has signed an agreement with Quicksilver Resources Inc. (KWK) to explore and develop onshore unconventional oil reservoirs in the U.S.

The deal will help Eni gain a bigger foothold in an industry that has revolutionized the U.S. energy market due to abundant hydrocarbon supplies.

As part of the contract, Quicksilver and Eni will jointly evaluate, explore and develop onshore shale oil, the Rome-based company said in a statement. Eni will have half a stake in two Quicksilver acreages in the Leon Valley, in the West Texas county of Pecos.

Eni said it will pay $52 million for the acreages.

The Leon Valley is located in the Delaware Basin, where current daily production is almost 500,000 barrels of oil equivalent from conventional and unconventional reservoirs. Eni said it is estimated that output from the Delaware Basin will double within five years.

The Italian energy firm is a relatively small player in the shale gas and oil boom although it is planning to expand into the untapped Chinese market and is looking to develop its prospects in Algeria.

Hydraulic fracturing--also known as fracking, a technique in which water, chemicals and sand are injected at high pressure to fragment rock and release the hydrocarbon trapped inside--has enabled companies to tap unconventional resources that would have been unprofitable to extract with previous techniques.

Tuesday's deal between Eni and the Fort Worth, Texas-based company follows a 2009 accord in which the Italian firm spent $280 million on a 27.5% stake in a Quicksilver acreage covering the Barnett Shale, one of the first areas that lead to the unconventional natural gas boom in the U.S.

Eni said its current daily production in the U.S. exceeds 90,000 BOE.

At 1222 GMT, Eni shares fell 0.9% at 18.32 euros ($24.80), slightly less than Italy's benchmark FTSE Mib Index.


Write to Liam Moloney at liam.moloney@wsj.com


Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

November 05, 2013 07:44 ET (12:44 GMT)

Copyright (c) 2013 Dow Jones & Company, Inc.
Add a Comment

News   More...

Start Premium Trial Register For Free

P F Fund Financial Data (13,000+ funds)
P F Stock Financial Data (7,000+ stocks)
P F Stock and Fund Screeners (basic)
P F Investing Articles and Market Commentary
P F Articles Archive (>30 days)
P F Discuss (dozens of stock, fund, bond, and general bulletin boards)
P F Portfolio Manager (basic)
P F Morningstar Investment Classroom
P F Access Your Portfolio Anytime, Anywhere via Your Mobile Device
P   Morningstar Fund Analyst Reports (full research on 1,700 funds, ETFs, and CEFs)
P   Morningstar Stock Analyst Reports (full research on more than 1,100 stocks)
P   Portfolio Manager (advanced with 10 X-Ray analyses, including recommendations)
P   Portfolio Monitor (monthly and on-demand personalized portfolio statements)
P   Morningstar Proprietary Stock Information (stock star ratings, buy/sell prices, economic moat ratings, and more)
P   Morningstar 5-Star Stock and Fund Favorites & Red Flags eNewsletters
P   Premium Stock and Fund Screeners (advanced with nearly infinite ways to find the best securities for you)
P   Discounts on Morningstar newsletters, books, seminars, and more

Sign-up to Morningstar

Basic Access

Articles and Videos
Morningstar video reports, articles, data, and tools. Dig into our lineup of e-newsletters and investing classroom courses outlining sensible strategies for maximizing your investments.
Morningstar Discuss
Follow the buzz on individual stocks or fund families. Plus, read the latest posts from Morningstar members and analysts.
Portfolio Manager
Track your investments and watch lists with our Portfolio Manager. Customize your view with our comprehensive stock, fund, and ETF data.

Access these features and more when you sign up for Free Membership.
Join Morningstar today. It's Free.

Unlimited Access

Analyst Research
Gather in-depth, actionable insight on over 3,700 stock and mutual funds covered by Morningstar analysts. View our mutual fund Analyst Reports favored by professionals, savvy experienced investors, and new investors researching options for retirement savings, college plans, or other investment needs.
Portfolio X-Ray®
Ensure your portfolio is positioned exactly how you want with Morningstar's X-Ray Interpreter and Stock Intersection tools. A Barron's "Best of the Web" award winner for five years running, X-Ray Interpreter goes under the hood of your portfolio to provide a useful allocation, sector, and geographic analysis. And you can discover how much of a stock you really own, individually and through mutual funds, with Stock Intersection.
Investment Picks
Find new 5-star stocks (greatly undervalued companies) to consider daily. Our 5-star stock rating is a proven winner, consistently beating benchmarks like the S&P 500. Plus, browse our Fund Analyst Picks and Stewardship Grades to find shareholder-friendly mutual funds that are poised for outperformance.
Portfolio Monitor
Get a clear view of your investments with personalized reports about your portfolio. Receive monthly statements and generate reports on-demand to help you stay on track to meet your investment goals.

Access these features and more when you sign up for Premium Membership.
Start your free 14-day trial today online
Your subscription may be tax deductible. Please contact your tax advisor.

Content Partners
Morningstar - 2013/11/5 - Eni Signs US Unconventional Oil Deal with Quicksilver
Name |  Ticker |  Star Rating |  Market Cap |  Stock Type |  Sector |  Industry Star Rating |  Investment Style |  Total Assets |  Category |  Top Holdings |  Top Sectors |  Symbol |  Title Star Rating |  Category |  Total Assets |  Top Holdings |  Top Sectors |  Symbol |  Name Topic |  Sector |  Key Indicators |  User Interest |  Market Cap |  Industry Name |  Ticker |  Star Rating |  Market Cap |  Stock Type |  Sector |  Industry Star Rating |  Investment Style |  Total Assets |  Category |  Top Holdings |  Top Sectors |  Symbol / Ticker |  Title Star Rating |  Category |  Total Assets |  Symbol / Ticker |  Name Title |  Date |  Author |  Collection |  Popularity |  Interest Title |  Date |  Company |  Symbol |  Interest |  Popularity Title |  Date |  Company |  Symbol |  Interest |  Popularity Title |  Date |  Author |  Collection |  Interest |  Popularity

Previous: Eni Signs Initial Deal With Statoil To Revise Long-Term Gas Supply  |  Next: Eni Threatens to Quit Iraq