Quetzal to Spud Llanos Well in October

- Quetzal to Spud Llanos Well in October

Tuesday, September 13, 2011
Quetzal Energy Ltd.

Quetzal provided the following update on operations:

Block 27, Llanos Basin

As previously announced, Quetzal completed a 220 square km 3D seismic survey of Block 27 in 1Q 2011 and then followed that up with an additional 54 square km survey in 2Q 2011. Merge, analysis and interpretation of this seismic has been completed and management has identified 4 drillable prospects on the block.

On August 10, 2011, Quetzal received its blanket environmental permit paving the way to proceed with the drilling of its first well on Block 27. Construction of the location began on August 29, 2011, and the Company expects to spud this first well with a rig contracted from Saxon Energy Services in the second half of October. Once drilling begins, management expects to reach target depth of 10,000 feet in 45 days.

Prospective targets include the oil bearing intervals in the Mirador and Une Formations, with the Carbonera formation representing a secondary target.

Quetzal pays 50% of cost and has a 45.275% revenue interest in this block before payout, and a 34.25% interest following payout.

Block 21, Llanos Basin

A 95 square kilometer 3D seismic program has been completed on Block 21, and management is near completion of its analysis and interpretation. Preliminary evaluation has identified 4 potential prospects of interest on Block 21 with further detailed analysis required.

On August 3, 2011, Quetzal filed for its environmental permit on Block 21 and is awaiting approval. Under contractual commitments to the ANH, and by the terms of its farm-in agreement, Quetzal and their partner, Brownstone Ventures, must drill two wells by September 12, 2012. Assuming environmental approval is received in a timely fashion, the Company expects to commence wellsite construction in 1Q 2012, and drill two wells in 2Q 2012.

Projected well depths at Block 21 are 8,000 feet.

Quetzal pays 50% of cost and has a 45.50% revenue interest in this block before payout, and a 35% interest following payout.

Canaguaro Block

A long term production test began on May 4, 2011 with an ESP set at approximately 6,000 feet depth, approximately 8,000 feet above the producing Mirador formation. Since that time, Quetzal has averaged approximately 400 barrels of oil per day and has witnessed the water cut go from and average of 18% in May to 33% in August. Initial reservoir pressure was registered at approximately 5,850 psia in May, and management has witnessed some decline in bottom hole flowing pressure since commencement of the long term test. In late August, Quetzal shut in the Canaguay 1 well for 6 days to conduct a pressure build up test. Over that short period, well pressure returned to within 100 psia of the May pressure indicating that reservoir pressure depletion is not significant. Given that the perforations are only 30 feet above the plug back depth, management believes that sand production is likely causing a restriction in flow, and reduced bottom hole flowing pressure. The Company and its partners now plan to service the well by conducting a cleanout of the well, replacing the ESP, and placing the new ESP at a deeper depth in the well closer to the producing zone. It is management's expectation that this will lead to increased fluid production and a resultant increase in oil production as well. This work is expected to be completed by November 1 and is budgeted at a net cost to Quetzal of $250,000.

Quetzal has a 25% working interest in the Canaguaro Block and is acting as operator of the well.

Block 36

The acquisition of 109 square kilometers of 3D seismic on Block 36 has been completed and analysis and interpretation continues. Drilling of one well is required by February 2012 and the Operator, Montecz continues to evaluate options to meet activity requirements of the ANH. Quetzal pays 20% of cost and has a 18.2% revenue interest in this block before payout, with a 14% interest following payout.

Guatemala Update

As part of Quetzal's ongoing strategy to maximize shareholder value, the Company continues to evaluate strategic alternatives. The Company is actively evaluating options including selling the Guatemalan assets or soliciting third party joint venture partners to assist in developing the Guatemala blocks.

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EP Passes Resolution on Tougher Offshore Drilling Regulations

- EP Passes Resolution on Tougher Offshore Drilling Regulations

Tuesday, September 13, 2011
Rigzone Staff
by Karen Boman

The European Parliament (EP) on Sept. 13 passed a resolution that would only allow development of oil and gas fields offshore Europe if companies have prepared an adequate emergency plan and has sufficient funds to repair possible damage to the environment.

According to the resolution, passed with 602 votes in favor, 64 against and 13 abstaining, site-specific plans for drilling, which would also require approval by the relevant member state before operation begins, would better protect the environment. The resolution is a means of influencing new draft legislation to be tabled by the European Commission this autumn.

"These emergency plans should identify potential hazards, assess pollution sources and effects and outline a response strategy in the even of an accident," according to a statement by the European Parliament.

The resolution also calls for a provision requiring oil and gas operators to show in the licensing procedure that they have sufficient funds to repair any harm done to the environment as a result of their activities. It also has been suggested that the scope of the polluter pays principle and strict liability should be extended to cover all damage done to marine waters and biodiversity.

While members of European Parliament are unsure if establishing a regulator for all offshore operations would be bring enough value to justify diverting "scarce" regulatory resources from national authorities, they agree that the European Maritime Safety Agency should coordinate responses in the event of an accident.

Parliament also proposes that whistleblowers be protected, enabling employees to declare any security breaches or risks anonymously with fear of harassment.

The resolution is in response to a Commission consultation paper issued last October in the aftermath of the Macondo oil spill in the Gulf of Mexico in April 2010. It also follows on from an European Parliament resolution in October 2010 on European Union action on oil exploration and extraction in Europe.

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Anglo-Turkish Genel Energy Increasing Presence in Northern Iraq

- Anglo-Turkish Genel Energy Increasing Presence in Northern Iraq

Tuesday, September 13, 2011
OilPrice.com
by Charles Kennedy

Anglo-Turkish Genel Energy, soon to be led by former BP CEO Tony Hayward, is seeking to expand its presence in northern Iraq.

Genel Energy, owned by Turkish businessman Mehmet Emin Karamehmet, is seeking a major role in the development of the vast reserves of oil in the Kurdish autonomous region of northern Iraq.

Speaking to Turkey's Hurriyet newspaper Hayward said, "The only approval we need is from the Kurdistan Regional Government, and we expect that approval to come before the end of September. All of the indications in Kurdistan show that things are only going to get better. I think this is a good time to invest in the region."

Hayward also expressed his belief that a "pragmatic realism" now dominated relations between the Kurdish regional government and Baghdad, adding that eventually, the Kurdish region will have "a significant say" in what is going to be finally approved in Iraq's expected hydrocarbons law noting, "This means (a company) can invest. "(The two governments) have agreed to revenue-sharing mechanisms. Payments are being received and I think all indicators show that things are only going to get better. There will be some bumps in the road, but the train and its direction are clear."

(Charles Kennedy is Deputy Editor of OilPrice.com. The original article appears here.)

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TGS Launches Multi-Client Survey in Labrador Sea

- TGS Launches Multi-Client Survey in Labrador Sea

Tuesday, September 13, 2011
TGS-NOPEC Geophysical Co. ASA

TGS has commenced a new 22,000 km multi-client 2D survey offshore Newfoundland in the Labrador Sea in partnership with PGS.

The new seismic data is being acquired by the M/V Sanco Spirit and utilizes the PGS GeoStreamer® technology. Data acquisition will continue through 3Q 2011 and the vessel will return in 2012 to complete the survey. The survey area is north of oil discoveries including Hibernia, Hebron, Terra Nova and White Rose. The seismic survey covers some areas currently nominated in the Newfoundland and Labrador Offshore Petroleum Board’s call for bids (NL-11-03).

"It is important for TGS to return to Eastern Canada after a decade and add data coverage in an area where there is little modern seismic data available to the market. Eastern Canada remains one of the most promising deepwater exploration arenas in the world and we are excited to be a part of it," commented Stein Ove Isaksen, Senior VP North & South America for TGS.

Initial data will be available to clients during 4Q 2011. The survey is supported by industry funding.

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Ivanhoe Mobilizes Rig for 2nd Mongolia Well

- Ivanhoe Mobilizes Rig for 2nd Mongolia Well

Tuesday, September 13, 2011
Ivanhoe Energy Inc.

Ivanhoe and Ivanhoe's wholly-owned subsidiary Sunwing Energy Ltd., announced that Ivanhoe's drilling team has begun moving the drilling rig to the site of the second exploration well in east-central Mongolia.

"Our drilling program was designed to advance our knowledge of Mongolia's Nyalga Basin, a highly prospective area with numerous potential structures that could be tested by drilling," David Dyck, President and Chief Operating Officer, said. "These initial wells are testing two different structures with diverse seismic characteristics."

Mr. Dyck said testing has been completed at the first exploration well, N16-1E-1A, which was drilled to a depth of 2,003 meters. The first well has been plugged and abandoned and the rig disassembled for mobilization.

"While the testing of our first well did not encounter oil shows in the reservoir, it has provided vital information that we are combining with our seismic data to help guide our continuing drilling program."

The second well is on an eight-square-kilometer structure approximately 12 kilometers from the first well. Drilling of the second well is expected to begin by the end of this month toward a target depth of approximately 2,500 meters.

"Mongolia in general, and the Nyalga Basin in particular, is in the early days of oil exploration, requiring a great deal of study to understand its full potential. We remain optimistic that our exploration efforts will enable the discovery of oil resources at our Mongolian project," Mr. Dyck added.

Sunwing Energy Ltd. is party to a Production-Sharing Contract with the Mongolian Government for Block XVI, a 12,679-square-kilometer area that encompasses the Nyalga Basin and is adjacent to the north-south Trans-Mongolian Railway.

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Vanoil Wraps Up Seismic Program in Kenya Block

- Vanoil Wraps Up Seismic Program in Kenya Block

Tuesday, September 13, 2011
Vanoil Energy Ltd.

Vanoil has completed its 2011 2D seismic program on Block 3B in Kenya. Vanoil's 100% owned Blocks 3A and 3B in Kenya cover approximately 24,000 square kilometers and are part of the vastly under-explored prolific Cretaceous Central African Rift Basin System in Kenya.

Vanoil's 2011 seismic program in Block 3B covered approximately 398 line-km and was completed on budget and schedule. The program was designed to cover several leads previously identified on the re-processed 1975 Chevron and the 2010 Vanoil seismic data in Block 3B. The 2011 seismic data is high quality with location, time and amplitude content having been jointly assessed and controlled by the contractors; Bureau Geophysical Prospecting (BGP) and RPS. This premium data has been gathered to further image some specific structural leads and as a reconnaissance program to identify more new leads in Block 3B. In addition, the 2011 seismic program was also designed to enable Vanoil to improve on the geologic model in the Lamu Basin, one of the three basins identified on the Vanoil Blocks.

The 2011 2D seismic program in Block 3B consisted of 398 kilometers of additional seismic bringing the cumulative total to 845 kilometers of 2D seismic coverage completed by Vanoil to date on Blocks 3A and 3B in 2010/2011.

The 2011 Vanoil 2D seismic program data will now be sent to Statcom in Calgary Alberta for processing, following which, the data will be interpreted and integrated with the reprocessed and interpreted 1975 Chevron and 2010 Vanoil data. With the newly acquired data, the Company expects to add significantly to the resource assessment incorporated in the previously announced Sproule 51 101 report.

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Hercules Offshore Ups Stake in Discover Offshore

- Hercules Offshore Ups Stake in Discover Offshore

Tuesday, September 13, 2011
Hercules Offshore Inc.

Hercules Offshore has acquired an additional 6.1 million shares of Discovery Offshore S.A. at an average price of NOK9.02 per share. With this latest purchase, Hercules Offshore has invested a total of approximately $34.1 million in Discovery Offshore, and currently holds a 28% ownership interest in Discovery Offshore.

"Since our initial investment in Discovery Offshore in January 2011, the fundamentals of the offshore drilling industry have strengthened, and demand for ultra high-specification jackup rigs remains exceptionally strong," said John T. Rynd, President and Chief Executive Officer of Hercules Offshore. "Once delivered in 2013, these rigs will be among the most technically capable jackups worldwide, servicing a growing niche market that requires the advanced capabilities these rigs can provide. Initial discussions with customers confirm our confidence in the rig design, and the robust demand that we anticipate for these rigs for the foreseeable future."

Discovery Offshore is a Luxembourg-based company, focused on ownership of ultra high-specification jackup rigs. Discovery Offshore currently has two ultra high-specification jackup rigs under construction at Keppel FELS in Singapore, with delivery scheduled during the second and fourth quarter of 2013. Discovery Offshore also holds options for two additional jackup rigs. Hercules Offshore is overseeing the construction, marketing and operations of rigs owned by Discovery Offshore, as well as performing other corporate administrative functions required by Discovery Offshore.

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Tethys Pumps Oil at Tajik Well

- Tethys Pumps Oil at Tajik Well

Tuesday, September 13, 2011
Tethys Petroleum Ltd.

Tethys gave an update on its operations in the Republic of Tajikistan.

Testing operations are underway on the East Olimtoi EOL09 exploration well located south of the town of Kulob some 10 km north of the Afghan border. This well reached a total depth of 3,765 meters in the Akdzhar formation and testing operations are being undertaken on the overlying Bukhara and Alai formations.

Currently the well is flowing a mixture of completion brine and oil from the upper Alai sandstone interval, this oil being of good quality with an API gravity of approximately 36 degrees. The current section open to testing includes this upper Alai sandstone unit as well as the lower Alai limestone interval and the upper part of the Bukhara formation. The well was drilled with heavy drilling fluid (weighted with barite), which was required to control the well when it intersected the upper Alai reservoir. Barite is currently being observed in the flow lines which the company believes is also inhibiting flow at present. It is anticipated that the well will clean up in due course, however the cleanup period may take some time. The Company is currently evaluating methods of speeding up the clean up of this well including acidization or nitrogen-lifting using coiled tubing, subject to availability of equipment.

There are two further sandstone zones in the Alai formation which appear oil bearing based on wireline logs and which will be tested after a stable and representative flow rate has been achieved from the upper Alai sandstone unit. The lower part of the Bukhara interval was also tested but was found to have low permeability at this location although with the potential for production in future wells using production enhancement techniques such as hydraulic fracture stimulation. Mobilization of such equipment to Tajikistan would take a
significant amount of time, as such the company has chosen to focus on the upper zones of this particular well at this time.

The Persea 1 exploration well, located near the town of Kurgon-Teppa is progressing within the 12 1/4" hole section. This well is primarily targeting the Bukhara limestone formation in a four-way dip closed structure with the overlying Alai formation forming a potential secondary target. The planned total depth of this well is 2,700 meters and it is expected that this will be reached in October 2011.

Data collection for the gravity, gradiometry and magnetic aerial survey carried out over the 35,000 km2 Bokhtar Production Sharing Contract Area has now just been completed. This will provide additional and more aerially extensive data to complement the existing seismic acquisition with the final processed data and results expected in 4Q 2011.

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Oil India Plans to Invest $4B in Five Years to Raise Output

- Oil India Plans to Invest $4B in Five Years to Raise Output

Tuesday, September 13, 2011
Dow Jones Newswires
NEW DELHI
by Rakesh Sharma

Oil India plans to raise its capital expenditure 73% to about INR190 billion ($4 billion) in the five years starting April 2012 as the state-run explorer seeks to sharply raise oil and gas production, its finance director said.

"We are stepping up exploration and development of our blocks in India and overseas," T.K. Ananth Kumar told Dow Jones Newswires late Monday. "We are also seeking producing assets, so we have raised our capital expenditure plans."

The company's capital expenditure in the five years ending March 2012 is likely to be about INR110 billion. It accounted for a 10th of India's total oil output of 754,000 barrels a day and 4.5% of total gas output of 52.22 billion cubic meters in the last financial year. Kumar didn't say how much the company is aiming to produce.

Oil India will mainly fund its investments through internal accruals, but may raise debt, he said.

The company, which was listed on local stock exchanges in September 2009, has cash reserves of INR130 billion, he added.

Oil India and its bigger state-run rival Oil & Natural Gas Corp. need to boost capital spending to bring new fields into production amid falling output at their aging fields. India, which imports about four-fifths of its crude oil requirements, is encouraging explorers to ramp up exploration and production to meet surging demand for energy in the world's second-fastest growing major economy.

"We have been witnessing an increase in capex by oil and gas explorers in India for the past several years as energy security is a focus. This sort of high capex is quite achievable by Oil India considering they have more than INR120 billion of cash and have been generating a cash flow of about INR40 billion per year," Alok Deshpande, analyst with Elara Securities Ltd., said.

Oil India is seeking to acquire producing oil and gas assets in Australia, Russia, Kazakhstan and Canada, Kumar said.

"We have shifted our focus to acquiring producing assets, rather than going for exploration blocks, as we already have our hands full with existing exploratory blocks. Also, we have enough cash in hand and that would be the best use of it," Kumar said.

Oil India is in talks with French explorer Etablissements Maurel et Prom to buy a stake in its Gabon assets and plans to close the deal by March, Mint newspaper reported Monday. Kumar declined to comment on the report.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Cairn Updates Operations Offshore Greenland

- Cairn Updates Operations Offshore Greenland

Tuesday, September 13, 2011
Cairn Energy plc

The following operational update relates to Cairn's exploration drilling campaign offshore Greenland.

Gamma-1 Well: Eqqua Block, West Disko Area

The Gamma-1 exploration well, drilled by the Ocean Rig Corcovado drillship, located in 1,520 meters (m) of water and 294 kilometers (km) from Aasiaat, in the Eqqua Block in the West Disko area has reached total depth (TD) and preparations are under way to plug and abandon the well. The well had been targeted to test a deep water Tertiary basin floor fan located 100km down dip from the T8-1 well where biogenic and thermogenic gas had been encountered in 2010.

The Gamma-1 well intersected the prognosed basin floor fan at the anticipated depth, although no reservoir or hydrocarbon shows were encountered in the interval.

Delta-1 Well: Napariaq Block, West Disko Area

The Delta-1 exploration well, drilled by the Leiv Eiriksson semisubmersible drilling rig, located in a water depth of 293m and approximately 365km offshore Aasiaat, in the Napariaq Block is currently drilling ahead. The Delta-1 well is aiming to intersect Cretaceous sediments in a large structural closure beneath the Tertiary volcanic interval in which oil shows were encountered in the Alpha-1 well drilled in 2010. The well has so far encountered several hundred meters of Tertiary volcanic section, which is thicker than anticipated and with only minor hydrocarbon indications. A further update will be made later this month, once the well reaches TD.

AT7-1 Well: Atammik Block, South Ungava Area

Following completion of the operations on the Delta-1 Well, the Leiv Eiriksson is scheduled to move south to re-enter the AT7-1 well in the Atammik block, located in 909m of water and 198km offshore Nuuk, and drill to the planned TD.

Fifth Well: AT2 Prospect: Atammik Block, South Ungava Area

Once operations on the Gamma-1 well are complete, the Ocean Rig Corcovado is scheduled to move 597km south, to the Atammik Block, to drill the AT2 prospect as a fifth well in the 2011 exploration drilling campaign.

Further updates will be provided whenever a well is at TD and operations are complete.

Simon Thomson, Chief Executive, said, "The full results of the Gamma-1 well and the update from the Delta-1 well will be reviewed in the context of all the data gathered during the Greenland exploration campaign.

The rigs are scheduled to move south to drill the final two wells of the program on the Atammik block. We remain focused on the potential of our multi-basin position in Greenland."

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Rosneft CEO: Exxon May Replace Chevron in Black Sea Project -Report

- Rosneft CEO: Exxon May Replace Chevron in Black Sea Project -Report

Tuesday, September 13, 2011
Dow Jones Newswires
MOSCOW
by Jacob Gronholt-Pedersen

Russian state oil company Rosneft is in talks with two companies, including Exxon Mobil, to replace Chevron as partner in the Black Sea offshore Val Shatsky field, the Interfax news agency reports Tuesday citing Rosneft Chief Executive Eduard Khudainatov.

Khudainatov also said that by the end of the year, Rosneft and Exxon Mobil will conclude drafting a plan to develop three Arctic fields in the Kara Sea. Exxon Mobil replaced BP as partner in the project two weeks ago.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Det norske Hits Pay in Norwegian Sea

- Det norske Hits Pay in Norwegian Sea

Tuesday, September 13, 2011
Det norske oljeselskap ASA

Det norske oljeselskap ASA, operator of PL 482, is in the process of completing exploration well 6508/1-2 on Skaugumsåsen. The well is located about 10 kilometers south of the Norne field in the Norwegian Sea.

The well encountered an 18 meter gas column and a 23 meter oil column.

Preliminary estimates of the discovery indicate recoverable volumes of 1 million Sm3 oil equivalents. Further studies are necessary in order to determine if the discovery is economically viable.

This is the first exploration well in license 48, which was part of the Awards in Predefined Areas (APA) 2007.

Well 6508/1-2 was drilled by the semisubmersible Aker Barents rig.

Partners in PL 482 include: Det norske (65 percent and operator), Petoro 20 percent and Skagen44 AS 15 percent.

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Ascent Gets OK for License Extension Offshore Netherlands

- Ascent Gets OK for License Extension Offshore Netherlands

Tuesday, September 13, 2011
Ascent Resources plc

Ascent Resources has received confirmation of the extension of its M10/M11 block licenses ('the Project') located offshore Netherlands in the southern North Sea until June 30, 2013.

The M10/M11 appraisal project is in the shallow waters off the north coast of the Netherlands. In the license area there are three structures, all of which contain gas discovery wells with the gas present in the Slochteren unit of the Rotligendes sandstones. A conceptual development plan has been prepared and a final appraisal well is being planned for H2 2012 to confirm reservoir parameters for the detail project design. This well will be an appraisal well for the Terschelling Noord discovery, which is in a structure that lies partly within the M10/M11 license area and partly to the area to the south. The well would be expected to then become a production well for the development.

ARN holds a 54% interest in the Project. Other partners in the Project are Energie Beheer Nederland B.V with 40% and GTO Limited with 6%.

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Aminex to Withdraw from Tanzania PSA

- Aminex to Withdraw from Tanzania PSA

Tuesday, September 13, 2011
Aminex plc

Aminex and Key Petroleum Ltd. ('Key') currently participate 50-50 in the West Songo-Songo Production Sharing Agreement ('PSA') in Tanzania, with Key as the operating partner. Progress has been slow to date and the work program is behind schedule, creating uncertainty about the future of the PSA. As a consequence, Aminex has agreed with Key that it will withdraw from the PSA, transferring its 50% interest to Key which will then hold 100%. In exchange, Key will relinquish its 5% interest in the new 'Nyuni Area PSA' in favor of Aminex. The West Songo-Songo transfer is being submitted to the Tanzanian authorities for formal approval but the practical aspects of the transfer will be implemented immediately.

The 'Nyuni Area PSA' will replace the existing 'Nyuni-East Songo-Songo PSA', operated by Aminex's wholly-owned subsidiary, Ndovu Resources Ltd., which is now time-expired and where work obligations have been fulfilled, with two gas discoveries recorded. The new Nyuni Area PSA has already been initialed by both Aminex and the Tanzanian authorities, as previously announced, and will be formally executed by the Minister of Energy and Minerals at an appropriate time. The Nyuni Area PSA will be materially larger than the earlier one and will comprise 4 additional blocks directly to the north, as well as the area covered by the existing Nyuni-East Songo-Songo PSA. Key will retain a 5% working interest in the Kiliwani North gas development license, which was carved out from the Nyuni PSA earlier this year. Interest holdings will now be as follows:

• Nyuni Area PSA (1,690 km², including 338km² making up the 4 additional blocks)
  • Ndovu Resources (Aminex) 70%
  • RAK Gas 25%
  • Bounty Oil 5%
• Kiliwani North Development License (85 km²)
  • Ndovu Resources (Aminex) 65%
  • RAK Gas 25%
  • Bounty Oil 5%
  • Key Petroleum 5%

Aminex considers that the new acreage included in the Nyuni Area PSA will provide greater scope for establishing a new play fairway on the continental shelf which could share similarities to some of the recent deep water drilling successes.

Aminex Chairman Brian Hall commented, "Although West Songo-Songo is potentially promising acreage, we believe that our strategy of increasing our interest and acreage in the Nyuni PSA area together with our recently announced increase in our percentage interest in the Ruvuma Basin will be more effective and valuable than our existing portfolio mix."

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Oil & Gas Post - All News Report for Monday, September 12, 2011

Monday, September 12, 2011

• Commodity Corner: Oil Settles Higher on Euro Rebound
• Surge Issues Update on Valhalla South Ops
• Ford to Debut 1.0-Liter EcoBoost Engine in Europe
• Nordic Sets Private Placement for Bakken Drilling Funds
• QR to Acquire Acreage in Permian, Ark-La-Tex, Mid-Continent
• Mogul Energy Spuds Stafford Well #2
• Cooper Begins Butlers-4 Drilling
• CNOOC Contracts Drillship Energy Searcher
• Nuvia Names Hill Business Manager
• BOEMRE Names Senior Managers
• Bering Spuds Concordia Parish Well
• Ecopetrol Builds on Cano Sur Success
• La Cortez Boosts Net Production on Mirto-1
• Oceaneering Sells Ocean Legend
• Enegi Prepares Next Stage of Onshore Newfoundland Workover
• Americas Petrogas, Gran Tierra Hit Oil Pay in Argentina
• PetroMagdalene Announces Copa B-1 Discovery
• CNOOC Okays ConocoPhillips' Plans for Depressurizing and Sealing
• Fox Petroleum to Acquire Renfro, Cameron Parish Pipelines
• Weather Watch: 7 of 10 Missing Workers Rescued Alive in Gulf 
• NPD Head: Norway's New Oil Finds May Help Stem Mid-Term Output Fall
• Shell Seeks Okay for 2D Survey Offshore NW Australia
• Petrolimex Wins Laos Investment Contract
• Technip, Global Industries Agree to Merge
• Goldman Sees US As Top Oil Producer In 2017 - Report
• Iraq Energy Panel Approves Gas Deal - Oil Minister

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Commodity Corner: Oil Settles Higher on Euro Rebound

- Commodity Corner: Oil Settles Higher on Euro Rebound

Monday, September 12, 2011
Rigzone Staff
by Matthew V. Veazey

Monday came and went without a Greek debt default, and the euro managed to rebound from its lowest point since mid-February.

Because oil becomes a better value for investors when other currencies strengthen against the U.S. dollar, the price of a barrel of light sweet crude oil for October delivery gained 95 cents to settle at $88.19 Monday. The Brent contract price, however, lost 52 cents to end the day at $112.25 a barrel.

Investors increasingly braced themselves last week for Greece to default on its national debt payments, with some expecting the situation to reach a head on Monday. As a result, the euro headed downward for much of the day until bottoming out at $1.3495. The currency regained some positive movement against the dollar. According to the European Central Bank, Monday's reference rate was $1.3656.

The WTI traded within a range from $85.00 to $88.95 while the Brent contract fluctuated from $110.62 to $113.69.

With Tropical Storm Nate steering clear of the U.S. Gulf Coast, instead making landfall in Mexico's Tabasco state, investors see no near-term threats to oil and gas infrastructure in the Gulf. Moreover, forecasters expect Tropical Storm Maria to remain in the Atlantic and veer away from the U.S. East Coast. As a result, October natural gas lost three cents to end the day at $3.885 per thousand cubic feet.

Natural gas peaked at $3.925 and bottomed out at $3.83 Monday.

October gasoline also lost three cents, settling at $2.74 a gallon. The front-month contract fluctuated from $2.71 to $2.78.

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Surge Issues Update on Valhalla South Ops

- Surge Issues Update on Valhalla South Ops

Monday, September 12, 2011
Surge Energy Inc.

Surge Energy Inc. on Monday provided the results of its fifth horizontal multi-frac well at Valhalla South, and to announce that it has confirmed its bank line at $150 million.

Operations Update:

Surge provided the following operations update with respect to its Valhalla property due to drilling results which are believed to be material.

Surge's fifth horizontal well (16-7-74-8W6M; 100 percent working interest "WI") in the Valhalla South Doig light oil pool (40 degree API) has been successfully drilled and completed. The well encountered approximately 820 meters of Doig Formation and was completed with nine frac stages averaging approximately 30 Tonnes of proppant per frac. A five day flow test on the well has been recently completed, resulting in flow rates averaging 1,992 boe per day (78 percent light oil and NGLs) with the last day of the test flowing at a rate of 1,866 boe per day (72 percent light oil and NGLs). The well produced through the 114.3mm (4.5") tie back liner.

This five day rate for 16-7, is comparable to that of Surge's previously announced horizontal multi-frac well at 11-18-074-08W6 (71 percent WI), which had a five day flow test rate of 1,979 boe per day (82 percent light oil and NGLs) with the last day of testing flowing at a rate of 1,903 boe per day (77 percent light oil and NGLs). The 11-18 well averaged approximately 1,180 boe per day (72 percent light oil and NGLs) for the first 30 producing days which is well above the Company's type curve for the area (675 boe per day), and it was producing approximately 870 boe per day (73 percent light oil and NGLs) on September 1, 2011 when it was last tested. The first month average production rate for Surge's 16-7 well is expected to be in line with results from 11-18.

Surge began drilling its sixth horizontal multi-frac well into the pool (8-31-073-08W6; 100 percent WI) during August 2011 with plans of having production on stream in the fourth quarter of 2011. The Company has one more horizontal multi-frac well (11-5-074-08W6; 100 percent WI) budgeted for the remainder of 2011 for a total of seven gross horizontal multi-frac wells budgeted for 2011.

In addition to operations at Valhalla South, Surge is actively drilling in each of its other core areas at Windfall, Waskada and South East Alberta. At Windfall, the Company has recently drilled and completed its sixth horizontal multi-frac well and is currently drilling its seventh well into the Bluesky light oil pool (36 degree API). At Waskada, Surge has commenced its nine horizontal multi-frac well drilling program targeting the Spearfish light oil Formation (36 degree API) and now has three wells drilled and cased. In South East Alberta, the Company continues to exploit its low cost, low decline, high rate of return crude oil assets via infill drilling and waterflood. Surge will drill a combination of vertical and horizontal wells in the area during the third and fourth quarters of 2011.

Increase in Bank Line:

Surge has recently confirmed the Company's bank line at $150 million, up from $120 million. The increase is subject to standard legal documentation which is in the process of being finalized.

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Ford to Debut 1.0-Liter EcoBoost Engine in Europe

- Ford to Debut 1.0-Liter EcoBoost Engine in Europe



Sep 12, 2011

Ford (NYSE:F) confirmed the first production applications for its smallest-ever EcoBoost engine at the 2011 Frankfurt Motor Show.

The engine will debut in the European Ford Focus early in 2012, offering the performance of a conventional 1.6-liter engine with less than 120g/km CO2 emissions.

Graham Hoare, executive director, Powertrain, Ford of Europe said, "By offering the Focus with an advanced small-displacement petrol engine, Ford is not only making a major statement on how serious we are about engine downsizing - it also shows the strength of our development and engineering capabilities. To produce a 1.0-liter EcoBoost petrol engine with such impressive performance and fuel economy is a clear example of our commitment to be class-leading in fuel economy."

Ford Motor (NYSE:F) has a potential upside of 84.1% based on a current price of $10 and an average consensus analyst price target of $18.41.

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Nordic Sets Private Placement for Bakken Drilling Funds

- Nordic Sets Private Placement for Bakken Drilling Funds

Monday, September 12, 2011
Nordic Oil & Gas Ltd.

Donald Benson, President of Nordic Oil and Gas Ltd. ("the Company" or Nordic"), on Monday announced a new non-brokered private placement offering (the "Offering") of up to 30,000,000 units ("Units") at a price of $0.075 per Unit for gross proceeds of up to $2,250,000. Each Unit of the Offering will consist of one Class A common share of the Company issued as a "flow-through share" within the meaning of the Income Tax Act (Canada) and one-half of one Class A common share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder thereof to purchase one regular Class A common share of the Company at a price of $0.10 per share for a period of 18 months from the date of issuance.

The securities issued pursuant to the Offering are subject to a four-month hold period from the date of issuance. The Company anticipates multiple closings of the Offering in the coming weeks.

Certain finders are expected to assist the Company by introducing potential subscriber(s) to the Offering and, subject to compliance with applicable legislation, will be entitled to receive fees equal to up to 10% of the purchase price of the Units sold pursuant to the Offering, as well as compensation warrants (the "Finder's Warrants") equal to up to 10% of the number of Units sold pursuant to the Offering. Each Finder's Warrant shall entitle the holder thereof to purchase one regular Class A common share of the Company at a price of $0.10 for a period of 18 months from the date of issuance.

All terms of the Offering are subject to the approval of the TSX Venture Exchange.

"It is our intention to use a large portion of the funds raised in this Offering to undertake the drilling of our first exploration well on our Weyburn/Bakken property in southeast Saskatchewan," Mr. Benson stated. "We feel that our Weyburn/Bakken property should be our top priority at this time and we would like to be in position to drill the first well early in the fourth quarter of 2011."

Upon analyzing the seismic shot in the region, Nordic's geophysicist has identified four potential drilling locations on the land. He notes that in addition to the Bakken, the seismic also indicates that both the Midale/Frobisher and Red River zones are prospective as well.

"The offsetting land in the area has been producing from the Midale zone since 1991," Mr. Benson added.

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QR to Acquire Acreage in Permian, Ark-La-Tex, Mid-Continent

- QR to Acquire Acreage in Permian, Ark-La-Tex, Mid-Continent

Monday, September 12, 2011
QR Energy, LP

QR Energy, LP ( QRE) announced Monday that it has signed a definitive agreement to acquire oil and natural gas properties from its sponsor, Quantum Resources Fund (QRF) for a purchase price of $577 million. The transaction consists of the issuance by QRE to QRF of $350 million of Convertible Preferred Units and cash of $227 million from borrowings under QRE's existing bank credit facility, subject to lender approval of an increase in the facility's borrowing base. The transaction is expected to close on or about October 1, 2011, subject to third party approvals and customary closing conditions.

Transaction Highlights

-- Properties located in existing core areas: Permian Basin, Ark-La-Tex and Mid-Continent

-- Net production of 8,000 Boed expected for the fourth quarter of 2011

-- Total proved reserves of 37.1 MMBoe are 65% proved developed and 41% liquids (oil and NGLs)

-- More than 1,500 producing oil and natural gas wells

-- Inventory of low risk development opportunities

-- Reserve life (R/P) of 12.7 years

-- 77% operated by value based on standardized measure

-- Expected to be immediately accretive to Distributable Cash Flow per unit

Chief Executive Officer Alan L. Smith commented, "This acquisition from our sponsor has assets that fit our investment criteria of mature, longer life properties and more than doubles QR Energy's production and reserves. The properties are located in our existing core areas and offer an inventory of low risk development projects that will supplement our production in the years to come. We are pleased to be able to finance the transaction with a combination of equity and bank debt, and we expect the transaction to deliver significant accretion to our unitholders."

Asset Profile

QR Energy estimates that the acquisition properties contain approximately 37.1 MMBoe of proved reserves as of October 1, 2011, based on internal estimates using spot oil and natural gas prices as of September 2, 2011 ($86.48/Bbl and $3.87/MMBtu). The proved reserves are 65% proved developed and contain 41% liquids. Operations include 1,574 gross and 960 net wells on approximately 109,305 net acres concentrated in Texas, Oklahoma and New Mexico. They provide numerous low risk development opportunities.

Transaction Financing

As part of the total consideration, QR Energy will issue to QRF $350 million of Convertible Preferred Units (16.7 million units) at a par value of $21.00 per unit. For the first three years, the Convertible Preferred Units will receive a quarterly cash distribution equal to a 4.0% annual coupon on the par value of $21.00. After three years, the quarterly cash distribution will be equal to the greater of (a) $0.475 per unit or (b) the cash distribution payable on each common unit for such quarter.

QRF may convert the Convertible Preferred Units to common units on a one-to-one basis during the first two years after the issuance date following 30 consecutive trading days during which the volume-weighted average price for common units equals or exceeds $27.30 per common unit. In addition, QRF may convert the Convertible Preferred Units to common units on a one-to-one basis anytime after two years from the issuance date.

If QRF has not converted the Convertible Preferred Units to common units by the third anniversary, QR Energy may force their conversion at $21.00 provided that conversion is in the 30 calendar days following 30 consecutive trading days during which the volume-weighted average price for common units equals or exceeds (1) $30.00, provided that (a) an effective shelf registration statement covering re-sales for the converted units is in place or (2) $27.30, provided that (a) from directly above is satisfied plus (b) the arrangement for one or more investment banks to underwrite the converted unit sale following conversion (with proceeds equal to not less than $27.30 less (i) a standard underwriting discount and (ii) a customary discount not to exceed 5% of $27.30). For both (1) and (2) above, the conversion will have a value of not less than $100 million in the aggregate (provided that if less than $100 million remains outstanding, such conversion will relate to all remaining Class C Convertible Preferred Units then outstanding).

QR Energy may force conversion after the fifth anniversary at $21.00 and (a) in the 30 calendar days following 30 consecutive trading days during which the volume-weighted average price for common units equals or exceeds $27.30 and (b) subject to having an effective shelf registration statement covering re-sales for the converted units in place. The conversion will have a value of not less than $100 million in the aggregate (provided that if less than $100 million remains outstanding, such conversion will relate to all remaining Class C Convertible Preferred Units then outstanding).

The debt financing for the transaction is estimated to be approximately $234 million including estimated transaction fees, which will be funded with borrowings under the Partnership's revolving credit facility. These borrowings are subject to lender approval of a $300 million increase in QR Energy's borrowing base related to the pending acquisition of additional oil and gas properties, resulting in a total borrowing base of $630 million effective upon closing.

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Mogul Energy Spuds Stafford Well #2

- Mogul Energy Spuds Stafford Well #2

Monday, September 12, 2011
Mogul Energy International, Inc.

Mogul Energy International, Inc. on Monday announced the spudding of the Stafford Well #2 on the La Ward NE Field area in Jackson County, Texas. The drilling rig moved on location over the past weekend and initiated drilling operations late Sunday afternoon.

This offset well is located 600 feet west of the Stafford Well #1, which was initially completed in March of this year. The Stafford Well #2 will be drilled to a total depth of 7,000 feet so as to further delineate the producing intervals seen in Frio formation. It is expected that the new well will be higher on structure and will have several producing intervals with greater producing rates than the Stafford Well #1.

Stafford Well #2 has 100% participation of all working interest owners that participated in Mogul's initial well in the field. Mogul has a 15% working interest in both wells #1 and #2 and is the operator for both.

President and CEO Tim Turner said, "We are very excited about the prospects for our second well in our drilling program as we strive to carry out our mandate to grow value for our shareholders and partners."

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Cooper Begins Butlers-4 Drilling

- Cooper Begins Butlers-4 Drilling

Monday, September 12, 2011
Cooper Energy Limited

Cooper Energy Limited announced that the Butlers-4 appraisal/development well in PEL92 spudded at 11:30 pm Sunday. The current operation is drilling ahead in the surface hole at 135 meters.

Butlers-4 is the third appraisal/development well on the Butlers Oil Field in the current PEL92 drilling program. Butlers-4 is targeting the Namur oil reservoir in the crestal part of the field 0.26km to the southeast of the Butlers-1 discovery well. The well will be drilled to a total depth of about 1,390 meters and is expected to take 9 days to drill and complete.

The Butlers oil field is currently producing approximately 1,400 barrels of oil per day from the Namur reservoir from the Butlers-1 well with Butlers-2 and Butlers-3 yet to be completed. It is expected that Butlers-4 will accelerate production as well as draining previously unaccessed reserves. The Butlers surface facilities will be upgraded to handle the increased production. Oil production from Butlers is exported via the pipeline to Tantanna and then exported to Moomba.

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CNOOC Contracts Drillship Energy Searcher

- CNOOC Contracts Drillship Energy Searcher

Monday, September 12, 2011
Northern Offshore, Ltd.

Northern Offshore, Ltd. on Sunday announced that CNOOC Palung Aru Ltd. ("CNOOC") has awarded a contract for the drillship Energy Searcher. The contract is for one well offshore Indonesia and has an expected duration of from 60-90 days, including travel time from and back to Singapore. Commencement is expected during October 2011. The estimated contract value for the program is from US$18-25 million, including mobilization fees.

Gary W. Casswell, Northern Offshore's president and CEO, said, "We are pleased with CNOOC's award of this contract for the Energy Searcher, and look forward to a successful drilling program. We remain optimistic of increasing activity in the region and are ready to get the rig back to work following its major shipyard and equipment refurbishment project."

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Nuvia Names Hill Business Manager

- Nuvia Names Hill Business Manager

Monday, September 12, 2011
Nuvia SITA NORM Limited

Nuvia SITA NORM has appointed a manager for its new Stoneyhill NORM Treatment Facility, near Peterhead, U.K.

Ewan Hill has been appointed to the position of Business Manager for Nuvia SITA NORM. He is now tasked, not only with managing the new facility, but also overseeing safe operations, ensuring environmental compliance and developing the business as a whole.

Ewan is a Chartered Waste Manager, has a Masters Degree in Environmental Studies and over 10 years' experience in the waste management industry, having worked previously in contaminated soil remediation and as a waste minimization manager with Glasgow City Council. Ewan also has experience of the oil and gas industry through a position with Denholm Industrial Services.

Nuvia SITA NORM is a specialist joint venture company that brings together the nuclear industry experience of Nuvia Limited, one of the UK's leading radiation protection and radioactive waste experts, with the recycling and waste management capabilities of SITA UK.

The company's new NORM treatment facility at Stoneyhill near Peterhead will clean and recycle equipment from North Sea oil and gas operations affected by naturally occurring radioactive materials. It will present the industry with the means to comply with new environmental regulations governing the treatment and disposal of NORM waste.

NORM is the acronym for Naturally Occurring Radioactive Material and is a term used to describe low levels of radioactivity that exist naturally in the geological environment. It is found in a variety of bulk commodities, process wastes and commercial items, such as sands, china clays and soils, granite, coal and groundwater. It is also a by-product of the oil and gas industry and develops as a mineral scale on the inside of pipes and valves.

NORM-affected equipment delivered to Stoneyhill will be cleaned inside a custom built containment with ultra high powered water jets to safely remove mineral scale. Once de-scaled, metals and pipework will either be reused or recycled and the treated waste consigned to landfill under authorization at SITA UK's adjoining Stoneyhill site.

Commenting on his appointment, Ewan said, "With all major works on the construction of the facility now complete, commissioning is well underway and I'm looking forward to firmly establishing the business as an essential part of the supply chain for the region's oil and gas operators."

The company has also appointed a supervisor for the facility and is now seeking to appoint a number of water jetting and descaling operatives at the site and invites applications in writing to Ewan Hill, Business Manager, Nuvia SITA NORM Treatment Facility, Stoneyhill Resource Recovery Park, Long Haven, Peterhead, AB42 0PR.

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BOEMRE Names Senior Managers

- BOEMRE Names Senior Managers

Monday, September 12, 2011
Bureau of Ocean Energy Management, Regulation and

Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) Director Michael R. Bromwich on Monday announced several key appointments to high-level positions in the two new, independent agencies that will carry out the offshore energy management and enforcement functions currently under the jurisdiction of BOEMRE. The Bureau of Ocean Energy Management (BOEM) and the Bureau of Safety and Environmental Enforcement (BSEE) will begin operating on October 1, 2011.

"I am pleased to announce my selection of a group of exceptionally qualified individuals," said Director Bromwich. "Throughout the recruitment process, we have looked for leaders who are technically skilled and experienced, and who can lead our ongoing efforts to enhance the safety of offshore exploration and production. The new leadership represents a combination of talented people from inside the agency with an exceptionally well-qualified group of people recruited from outside the agency."

BOEM will be responsible for managing development of the nation's offshore resources in an environmentally and economically responsible way. Functions will include: Leasing, Plan Administration, Environmental Studies, National Environmental Policy Act Analysis, Resource Evaluation, Economic Analysis and the Renewable Energy Program.

Some of the key leaders for BOEM will include:

• Dr. Walter D. Cruickshank, who will serve as the BOEM Deputy Director. Dr. Cruickshank has more than 25 years of experience at the Department of Interior. He most recently served as the BOEMRE Deputy Director. He earned a Bachelor of Arts in Geological Sciences from Cornell University and Doctorate in Mineral Economics from the Pennsylvania State University.
• Renee Orr, who will serve as BOEM's Strategic Resources Chief in BOEM. She has more than 23 years of experience with the Department of the Interior. Ms. Orr has overseen the staff implementation teams that have been at the core of the bureau's reorganization effort, and previously served as Chief of Leasing where she was responsible for the development and completion of several 5-Year Oil and Gas Leasing Programs. She earned Bachelor of Arts degrees in Economics and History from Metropolitan State College in Denver.
• Maureen Bornholdt, who will serve as the BOEM Renewables Chief. Ms. Bornholdt has more than 27 years of experience with the Department of the Interior. She most recently served as the Project Manager for BOEMRE's Offshore Renewable Energy Program. Ms. Bornholdt earned a Bachelor of Science in Public Administration from George Mason University.
• Ellen G. Aronson, who will serve as the BOEM Pacific Region Director. Ms. Aronson has over 33 years of experience with the Department of the Interior. She most recently served as the BOEMRE Pacific Region Director. Ms. Aronson earned a Bachelor of Arts in Liberal Arts from Sara Lawrence College and a Master's of Urban and Regional Planning from the University of Southern California.
• Dr. James Kendall, who will serve as the BOEM Alaska Region Director. Dr. Kendall has over 27 years of experience with the Department of the Interior. He most recently served as the BOEMRE Alaska Region Director. Dr. Kendall earned a bachelor's degree in biology from Old Dominion University, Ph.D. in oceanography from Texas A&M University, and a Post-doctoral Fellowship in Marine Biology from the Hebrew University of Jerusalem, Israel. He is also a graduate of the Federal Executive Institute, Charlottesville, Virginia, and the Senior Executive Fellows Program of the John F. Kennedy School of Government at Harvard University.
• John Rodi, who has been the Deputy Regional Director of BOEMRE's Gulf of Mexico Region since November 2007 and will serve as the BOEM Gulf of Mexico Acting Regional Director until a permanent Regional Director is selected. Mr. Rodi has more than 40 years of federal service with five different agencies. Mr. Rodi has both Bachelor and Master Degrees in Economics from Tulane University and the University of New Orleans, respectively.

BSEE will enforce safety and environmental regulations. Functions will include: All field operations including Permitting and Research, Inspections, Offshore Regulatory Programs, Oil Spill Response, and newly formed Training and Environmental Compliance functions.

Some of the key leaders for BSEE will include:

• Charles Barbee, who will serve as the BSEE Chief of the Environmental Enforcement Division. Mr. Barbee has more than 20 years of experience with the U.S. Coast Guard. Most recently, he was the Coast Guard's program manager for both marine investigations and environmental crime. During his career, Mr. Barbee has specialized in oil spill contingency planning, pollution investigation and response, marine inspections and marine casualty investigations. He graduated and received his commission from the U.S. Coast Guard Academy and earned a Master's Degree in Organizational Management from the University of Phoenix.
• Chris Barry, who will serve as the BSEE Director of the National Offshore Training Center. Mr. Barry currently serves as Chief of National Training and Leadership for the Federal Emergency Management Agency in the National Preparedness Directorate. He earned a Bachelor of Arts (dual) degree in Art History and Special Education and a Master of Instructional Systems Design.
• David Moore, who will serve as the BSEE Oil Spill Response Supervisor. Mr. Moore has more than 14 years of experience with the Department of the Interior. He most recently served as the Coordinator of BOEMRE's Oil Spill Program. He earned a Master of Engineering degree from Tulane University and a Master of Urban and Regional Planning degree from the University of New Orleans.
• Bob Brown, who will serve as the BSEE Associate Director for Administration. Mr. Brown has more than 30 years of experience at the Department of the Interior, Small Business Administration and U.S. Navy. He most recently served as the BOEMRE Associate Director for Administration and Budget and Chief Information Officer. Mr. Brown earned a Bachelor of Arts degree from Seton Hall University and pursued post-graduate studies in History at Georgetown University.
• Lars Herbst, who will serve as the BSEE Gulf of Mexico Regional Director. Mr. Herbst has over 27 years of experience with the Department of the Interior. He most recently served as the Gulf of Mexico Regional Director for BOEMRE. He is a registered professional engineer in the State of Louisiana and earned a Bachelor of Science in Petroleum Engineering from Louisiana State University.
• Jaron E. Ming, who will serve as the BSEE Pacific Region Director. Mr. Ming most recently served as the Pacific Region's Lead Leasing Specialist. He previously served as the Senior Policy Advisor to the Regional Director. He started his career in the federal government as a Presidential Management Fellow. Mr. Ming earned a Bachelor of Arts degree from Georgetown University, a Master of Arts degree in Marine Affairs and Policy from the University of Miami's Rosenstiel School of Marine and Atmospheric Science, and a Juris Doctorate degree from the University of Miami School of Law.
• Mark Fesmire, who will serve as the BSEE Alaska Region Director. Mr. Fesmire most recently served in the New Mexico Energy Minerals and Natural Resources Department, where he has was the Director of the state oil and gas regulatory agency and Chairman of the Oil and Gas Commission for the past seven years. Prior to attending New Mexico State University where he received bachelor's degrees in Geological and Civil Engineering, Mr. Fesmire worked in the offshore oil fields of the Gulf of Mexico. After 12 years as a petroleum engineer, he completed Law School at the Texas Tech University School of Law. He is a Registered Professional Petroleum Engineer and Licensed Attorney.

BSEE is currently accepting applications for the Deputy Director position.

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Bering Spuds Concordia Parish Well

- Bering Spuds Concordia Parish Well

Monday, September 12, 2011
Bering Exploration, Inc.

Bering Exploration, Inc. announced Monday that drilling has begun on the Sharp Heirs A No. 1 well located in Concordia Parish, Louisiana. This well will be drilled to a depth of approximately 7,500 feet to test the prospective zones in the Wilcox formation. This prospect has the potential for multiple wells and potential gross reserves of 500,000 barrels of oil. Bering will have a 10% working interest in this prospect.

"We are excited to begin drilling our initial well on this prospect and expect to reach total depth in a couple of weeks," stated Steven Plumb, VP of Finance of Bering. "If successful, this prospect has the potential to significantly add to our existing production."

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Ecopetrol Builds on Cano Sur Success

- Ecopetrol Builds on Cano Sur Success

Monday, September 12, 2011
Ecopetrol S.A.

Ecopetrol on Monday announced the initial test results of the CSE-8 ST1 exploratory well in the Puerto Gaitan jurisdiction, a municipality in the Meta Province, in areas belonging to the eastern block of the Exploration and Exploitation Cano Sur contract.

Production test to date show a stable average production of 532 barrels per day of API 13.8 grade oil, with water cut around 18.5%.

The exploratory well was designed with a deviated wellbore that allowed contact with a thicker net oil pay and a better location within the deposit. Drilling operations began on August 11, 2011 and reached an average depth of 4,594 feet in 7 days.

This new exploratory success brings to four the number of oil findings in Cano Sur Block during 2011, including Mito-1, Fauno-1 and Pinocho-1. This constitutes an important milestone in the exploration of this block, taking into account its importance for Ecopetrol's heavy crude oil growth strategy.

Results of initial tests show that this well has the highest productivity among the recently drilled wells in this region. Test were undertaken using an artificial lift system with an electric submersible pump.

This contract was signed in June 2005 with the National Hydrocarbon Agency (ANH, Agencia Nacional de Hidrocarburos). Ecopetrol is the sole operator and holder of 100% interests.

"Ecopetrol has identified a huge potential for heavy crude oil commercial production in the Llanos Basin. We are very pleased with this new discovery" said Ecopetrol's CEO Javier Gutierrez Pemberthy.

In the coming months, Ecopetrol will continue to evaluate production conditions and the performance of the deposit found, maintaining simultaneous exploratory efforts in the area of the Cano Sur Block in order to make a prompt commercial viability statement.

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La Cortez Boosts Net Production on Mirto-1

- La Cortez Boosts Net Production on Mirto-1

Monday, September 12, 2011
La Cortez Energy, Inc.

La Cortez Energy, Inc. on Monday provided the following operational update on the work-over activity conducted on the Mirto-1 well.

Maranta Block – Mirto Field

As previously announced, the work-over on the Mirto-1 well was initiated on August 8th, 2011, with the objective to initiate a long-term production test on the Villeta N sand, which is the same zone that is producing in the Mirto-2 well. The work-over operation was completed on August 23rd, and the well was immediately put on production with the following initial results during the period from August 23rd to September 10th: Average gross production before royalties was 334 bopd of 15 degree API oil, with an average Base Sediment and Water (BS&W) of 1.5%. The well is producing by Electro Submersible Pump (ESP), and is stabilizing at 820 psi (flowing pressure at the ESP inlet) which is the expected pressure needed to maintain current production levels. Production on September 10th increased to 343 bopd (gross before royalties) with an average (BS&W) of 0.5%, indicating a continuous reduction in the water cut as expected for this particular reservoir. The well will be placed on long-term production testing with the purpose of monitoring production behavior as well as to gather additional technical data.

The Mirto-2 well continues producing with an average rate of 484 bopd for the year (gross before royalties), and with an average BS&W of 0.7%. The well continues producing from the Villeta N sand with flow pressure stable at 1065 psi, indicating the potential to increase the ESP frequency in order to maintain production levels closer to 500 bopd.

Current production from the Mirto-1 and Mirto-2 wells is 756 bopd gross before royalties, or 151 bopd net (before royalties) to the company, an increase of more than 50% over the year to date average.

Andres Gutierrez, President and CEO of La Cortez, commented on the announcement, "We are very pleased with the initial results obtained from the work-over on the Mirto-1 N sand. The additional production represents a significant increase in net production to the company, and will give us the opportunity to further assess the results of the work-over, and work closely with Emerald Energy Plc. (the operator of the block) to finalize plans for future exploration activity on the block as well as to determine the production potential from the Villeta formation - U sand in the Mirto field."

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