API Reports Crude Inventories Fell 2.8 Mln Barrels Against Analyst Expected Trends
The American Petroleum Institute reported late Tuesday that crude oil inventories fell 2.8 million barrels for the week ended April 1st, according to a MarketWatch report.
This is contrary to the trend analysts polled by Platts were expecting which was an increase in crude inventories of 1.3 million barrels.
The agency also reported an increase of 568,000 barrels in gasoline stocks and a decline in distillates, which include heating oil and diesel, of 1 million barrels.
In contrast to actual trending directions, analysts had projected a 2.1 million barrel decrease in gasoline stocks and a 600,000 barrel increase of distillates
Tuesday, April 5, 2011
SpaceX's Next Rocket to be most powerful in the world
SpaceX's Next Rocket to be most powerful in the world
SpaceX's millionaire founder says his company has the "next big thing" in rockets by putting massive payloads into orbit for much less money than its competitors. And maybe to the moon and Mars as well.
The Falcon Heavy rocket has been on the drawing boards for years — but today's announcement by Elon Musk, SpaceX's chief executive officer and chief technology officer, signaled that the concept was on its way from the drawing boards to the launch pad.
Musk told reporters at the National Press Club in Washington that the first Falcon Heavy could be delivered to the launch pad as early as the end of next year, with the launch coming during 2013. Musk said the first demonstration would take place at Vandenberg Air Force Base in California. The price tag for a Falcon Heavy launch? An estimated at $80 million to $125 million, compared with up to $187 million for an Atlas 5 and roughly $1 billion for a shuttle mission. In the short term, the rocket would be offered as an alternative to the Atlas 5 or the Delta 4 for the U.S. military's Evolved Expendable Launch Vehicle program.
SpaceX's millionaire founder says his company has the "next big thing" in rockets by putting massive payloads into orbit for much less money than its competitors. And maybe to the moon and Mars as well.
The Falcon Heavy rocket has been on the drawing boards for years — but today's announcement by Elon Musk, SpaceX's chief executive officer and chief technology officer, signaled that the concept was on its way from the drawing boards to the launch pad.
Musk told reporters at the National Press Club in Washington that the first Falcon Heavy could be delivered to the launch pad as early as the end of next year, with the launch coming during 2013. Musk said the first demonstration would take place at Vandenberg Air Force Base in California. The price tag for a Falcon Heavy launch? An estimated at $80 million to $125 million, compared with up to $187 million for an Atlas 5 and roughly $1 billion for a shuttle mission. In the short term, the rocket would be offered as an alternative to the Atlas 5 or the Delta 4 for the U.S. military's Evolved Expendable Launch Vehicle program.
Judge Approves Sale of Seahawk Drilling to Rival Hercules
Judge Approves Sale of Seahawk Drilling to Rival Hercules
Tuesday, April 05, 2011
Dow Jones Newswires
by Katy Stech
Texas oil rig operator Hercules Offshore won bankruptcy court approval to buy a smaller rival, Seahawk Drilling, and its fleet of shallow-water drilling rigs.
U.S. Bankruptcy Judge Richard S. Schmidt approved the sale at a hearing Tuesday morning in a Corpus Christi, Texas, courtroom, fulfilling a plan that Seahawk Drilling first proposed when it filed for Chapter 11 bankruptcy protection in February.
That plan never met major resistance, and rival bids didn't emerge during the two months that followed Seahawk's proposal.
But the value of the deal--estimated now at $176.8 million--grew since the sale announcement. Hercules agreed to pay $25 million in cash and 22.3 million of its shares, which have crested on higher gas prices and closed Monday at $6.80 a share. The day that Seahawk filed for bankruptcy protection, Hercules's shares closed at $3.62, putting the deal's original value at $105 million.
Seahawk blamed its financial hardship on the global financial crisis that took hold shortly after it was formed in August 2009. Company officials also blamed the company's financial woes on tighter environmental regulations that followed the BP PLC (BP, BP.LN) oil spill, the largest U.S. offshore spill in the petroleum industry's history. The incident's deadly explosion aboard the rig Deepwater Horizon led oil to bleed into the Gulf of Mexico for three months starting in April 2010.
Drilling in shallow water wasn't affected by the moratorium that followed, but the process slowed. In the filing, company officials said they have been "unable to obtain drilling permits in a timely manner."
Seahawk's roughly 500 workers look for pools of oil in water depths of up to 300 feet, according to its website.
Tuesday, April 05, 2011
Dow Jones Newswires
by Katy Stech
Texas oil rig operator Hercules Offshore won bankruptcy court approval to buy a smaller rival, Seahawk Drilling, and its fleet of shallow-water drilling rigs.
U.S. Bankruptcy Judge Richard S. Schmidt approved the sale at a hearing Tuesday morning in a Corpus Christi, Texas, courtroom, fulfilling a plan that Seahawk Drilling first proposed when it filed for Chapter 11 bankruptcy protection in February.
That plan never met major resistance, and rival bids didn't emerge during the two months that followed Seahawk's proposal.
But the value of the deal--estimated now at $176.8 million--grew since the sale announcement. Hercules agreed to pay $25 million in cash and 22.3 million of its shares, which have crested on higher gas prices and closed Monday at $6.80 a share. The day that Seahawk filed for bankruptcy protection, Hercules's shares closed at $3.62, putting the deal's original value at $105 million.
Seahawk blamed its financial hardship on the global financial crisis that took hold shortly after it was formed in August 2009. Company officials also blamed the company's financial woes on tighter environmental regulations that followed the BP PLC (BP, BP.LN) oil spill, the largest U.S. offshore spill in the petroleum industry's history. The incident's deadly explosion aboard the rig Deepwater Horizon led oil to bleed into the Gulf of Mexico for three months starting in April 2010.
Drilling in shallow water wasn't affected by the moratorium that followed, but the process slowed. In the filing, company officials said they have been "unable to obtain drilling permits in a timely manner."
Seahawk's roughly 500 workers look for pools of oil in water depths of up to 300 feet, according to its website.
US, Mexico Work to Raise Bar in Gulf
US, Mexico Work to Raise Bar in Gulf
Tuesday, April 05, 2011
Houston Chronicle
Tuesday, April 05, 2011
Houston Chronicle
by Jennifer A. Dlouhy
Offshore drilling regulators from the U.S. and Mexico met Monday in a bid to strengthen standards governing oil and gas exploration throughout the Gulf.
U.S. Interior Secretary Ken Salazar said the goal was a single "gold standard" for all Gulf of Mexico drilling, whether in U.S. or Mexican territorial waters.
Salazar said the regulators were discussing how to share "best practices in the Gulf of Mexico" and "move forward in development of a single protocol between our two nations."
"We want to share the lessons learned from the Macondo Deepwater Horizon tragedy so we can move forward with the development of oil and gas," Salazar said in a conference call with reporters.
The initial talks were focused on what happens near the U.S. and Mexico, although Cuba has plans for drilling in its Gulf waters.
The co-chairmen of a presidential commission that investigated last year's oil spill and who took part in the meetings Monday said they are optimistic Cuba eventually will agree to baseline drilling standards adopted by the United States and Mexico.
"We would very much hope that they would ascribe to what is emerging as a globally accepted standard, much of it informed by the experience of the United States with the Macondo tragedy," said William Reilly, a panel co-chairman.
"There is concern about the prospect of drilling so close to our coast with a country that has not engaged in this previously," Graham said. He said he is optimistic that any pact with Mexico would "become truly a Gulf of Mexico agreement with any country in these waters being under the same standards."
Graham noted that the problem of setting common standards in areas where multiple nations are drilling is arising in many other places.
The meetings in Mexico City on Monday are a preview of an international summit with offshore drilling regulators and energy officials from more than a dozen countries scheduled for April 14 in Washington.
Separately Monday, Salazar took issue with Transocean's claim that 2010 was "the best year in safety performance" in its history, despite the explosion of its Deepwater Horizon rig in the Gulf of Mexico last April.
Transocean made the assertion in regulatory filings on Friday as partial justification for bonuses awarded top company executives.
Transocean owned the Deepwater Horizon drilling rig that was working on BP's Macondo well when it blew out last April, destroying the rig, killing 11 workers and triggering a massive oil spill.
"From what I have seen from various investigative reports," Transocean was "at some fault with respect to what happened at the Macondo well," Salazar said.
A Transocean executive apologized for the company's safety claim.
"We acknowledge that some of the wording in our 2010 proxy statement may have been insensitive in light of the incident that claimed the lives of 11 exceptional men last year, and we deeply regret any hurt that it may have caused," said Ihab Toma, the company's executive vice president. "Nothing in the proxy was intended to minimize this tragedy or diminish the impact it has had on those who lost loved ones."
Also Monday, House Democrats asked federal officials to investigate whether Transocean's decision to adopt three-week work shifts -- instead of the two-week schedule it had been using -- may have contributed to the spill.
Seven months before the disaster, Transocean switched its workers from a hitch schedule with 14 days on rigs followed by 14 days onshore to one with 21-day rotations.
"We believe Transocean's decision to move to the longer shift schedule should be closely examined," said Rep. Henry Waxman, D-Calif., and Rep. Diana DeGette, D-Colo. "Six of the 11 people who died aboard the Deepwater Horizon were on day 20 of their 21-day shift and a seventh was on day 19."
According to the assessment, as quoted by Waxman and DeGette, one manager on the Deepwater Horizon said there was a "big difference in their attitudes on the third week," and another said the policy was "definitely increasing the risk of an incident."
U.S. Interior Secretary Ken Salazar said the goal was a single "gold standard" for all Gulf of Mexico drilling, whether in U.S. or Mexican territorial waters.
Salazar said the regulators were discussing how to share "best practices in the Gulf of Mexico" and "move forward in development of a single protocol between our two nations."
"We want to share the lessons learned from the Macondo Deepwater Horizon tragedy so we can move forward with the development of oil and gas," Salazar said in a conference call with reporters.
The initial talks were focused on what happens near the U.S. and Mexico, although Cuba has plans for drilling in its Gulf waters.
The co-chairmen of a presidential commission that investigated last year's oil spill and who took part in the meetings Monday said they are optimistic Cuba eventually will agree to baseline drilling standards adopted by the United States and Mexico.
"We would very much hope that they would ascribe to what is emerging as a globally accepted standard, much of it informed by the experience of the United States with the Macondo tragedy," said William Reilly, a panel co-chairman.
Concerns about Cuba
Bob Graham, the other co-chairman, a former Democratic senator and governor of Florida, said the Sunshine State is understandably worried about nearby drilling in Cuba's waters."There is concern about the prospect of drilling so close to our coast with a country that has not engaged in this previously," Graham said. He said he is optimistic that any pact with Mexico would "become truly a Gulf of Mexico agreement with any country in these waters being under the same standards."
Graham noted that the problem of setting common standards in areas where multiple nations are drilling is arising in many other places.
The meetings in Mexico City on Monday are a preview of an international summit with offshore drilling regulators and energy officials from more than a dozen countries scheduled for April 14 in Washington.
Separately Monday, Salazar took issue with Transocean's claim that 2010 was "the best year in safety performance" in its history, despite the explosion of its Deepwater Horizon rig in the Gulf of Mexico last April.
Transocean made the assertion in regulatory filings on Friday as partial justification for bonuses awarded top company executives.
Transocean owned the Deepwater Horizon drilling rig that was working on BP's Macondo well when it blew out last April, destroying the rig, killing 11 workers and triggering a massive oil spill.
"From what I have seen from various investigative reports," Transocean was "at some fault with respect to what happened at the Macondo well," Salazar said.
A Transocean executive apologized for the company's safety claim.
"We acknowledge that some of the wording in our 2010 proxy statement may have been insensitive in light of the incident that claimed the lives of 11 exceptional men last year, and we deeply regret any hurt that it may have caused," said Ihab Toma, the company's executive vice president. "Nothing in the proxy was intended to minimize this tragedy or diminish the impact it has had on those who lost loved ones."
Also Monday, House Democrats asked federal officials to investigate whether Transocean's decision to adopt three-week work shifts -- instead of the two-week schedule it had been using -- may have contributed to the spill.
Seven months before the disaster, Transocean switched its workers from a hitch schedule with 14 days on rigs followed by 14 days onshore to one with 21-day rotations.
"We believe Transocean's decision to move to the longer shift schedule should be closely examined," said Rep. Henry Waxman, D-Calif., and Rep. Diana DeGette, D-Colo. "Six of the 11 people who died aboard the Deepwater Horizon were on day 20 of their 21-day shift and a seventh was on day 19."
'Fatigue issues'
An assessment of workers on the Deepwater Horizon, conducted in March 2010 by Lloyd's Register and obtained by the lawmakers, found that employees were dealing with "fatigue issues" under the new 21-day cycles, especially during the final seven-day stretch.According to the assessment, as quoted by Waxman and DeGette, one manager on the Deepwater Horizon said there was a "big difference in their attitudes on the third week," and another said the policy was "definitely increasing the risk of an incident."
US Investors Likely to Help New Regimes in Oil Countries
US Investors Likely to Help New Regimes in Oil Countries
Tuesday, April 05, 2011
The Washington Times
Tuesday, April 05, 2011
The Washington Times
by Tim Devaney
As political unrest and violence continue to flare across the Middle East, the U.S. capital is seeking its own oases in the desert.
Hotels, restaurants, and tourist-oriented transportation industries in countries that have thus far avoided major unrest -- the United Arab Emirates, Saudi Arabia, Morocco, and Oman -- are either thriving or expected to pick up new business in the near future. The oil industry in Persian Gulf countries such as Kuwait, UAE and Qatar are also likely to benefit as production is curtailed in other countries.
"Some of these markets and cities are doing incredibly well," said Jonathan Worsley, spokesman for the Arabian Hotel Investment Conference. "You're either in the thick of things, or you're doing well by not being in it."
But for major U.S. companies doing business in such long-established markets as Egypt and Tunisia, the future is far more uncertain. Old relationships have crumbled with old regimes, and much uncertainty hangs over economic policy as the new governments struggle to get organized.
Business groups say the turmoil is the Middle East and North Africa is nothing new for American companies operating there.
The region has long suffered from political and civil unrest that undercut their bottom lines. But veteran U.S. investors say they knew the risks they were taking when they went in. Most American investors plan to stay the course and help rebuild the economies under new regimes, according to Lionel Johnson, vice president of Middle East and North Africa affairs for the U.S. Chamber of Commerce.
"The U.S. companies that are there have been there for a long time, they're planning to be there in the future, and they're trying to do everything they can to help," Mr. Johnson said. "You're not seeing disinvestment. You're not seeing companies shutting their doors and pulling out operations. They're continuing to be there."
There are few U.S. companies in Libya, said Mohsin Khan, a senior fellow at the District-based Peterson Institute for International Economics, lessening the impact on American business investment there. American businesses have faced more difficulties in Egypt, where longtime U.S. ally Hosni Mubarak was driven from power by a popular revolt less than two months ago.
Some had to close at the height of the unrest. Kraft Foods, which has operations across the Middle East, was forced to suspend operations in Egypt and Bahrain for several days, but has since reopened its facilities.
The new regime in Egypt and those in other countries throughout the region could turn a cold shoulder to foreign businesses that flourished under the previous rulers, Mr. Khan warned. That could mean price controls that would cut into profits. U.S. producers like Kellogg's and Coca-Cola are among those who could be at risk.
"If you're in that business, your prices could be controlled," Mr. Khan said. "The profits there will be reduced. That, to me, is a serious risk."
A more pressing concern for Mr. Khan is whether these countries will blame foreign businesses for their struggles. Western analysts say Mr. Mubarak made a major move to overhaul the country's lagging economy in 2004, appointing a slate of reform-minded ministers to key economic, tax, labor and trade posts.
More insular, protectionist regimes could turn to tariffs and other barriers to trade as a way to protect local producers.
In recent years, economies across the Middle East were taking steps in the right direction, Mr. Khan added, but they could spiral backward.
Egypt, for example, once ranked near the bottom of the World Bank's list of 183 nations with business-friendly climates. But it had surged to No. 94 in the 2011 survey, before the fall of the Mubarak government.
"These economies were really opening up to the world," he said. "But I think there's going to be a pushback now. My hope is that they won't reverse directions, but that they simply won't push further ahead."
The uncertainty doesn't sit well with businesses in these countries. Tunisian officials reported last month that foreign investments in the country fell by 17.9 percent in January 2011 compared with January 2010, with major revenue declines in tourism and petroleum.
For those with a port in the storm, the picture is much brighter.
Hotels occupancy in Dubai, the largest city of UAE, and Riyadh, Saudi Arabia, has stayed strong at 82 percent and 70 percent, respectively, slight increases from a year ago, as displaced travelers flood there. Occupancy rates in Abu Dhabi are up to 67 percent from only 43 percent a year ago. In Muscat, the capital of Oman, they are up to 68 percent, a 12 point increase.
But these jumps in tourism come at the expense of other Middle Eastern spots that are crippled with unrest. Hotel occupancy for Cairo in Egypt is down to 40 percent from 67 percent a year ago, and Beirut in Lebanon also is down to 40 percent from 62 percent.
The troubling outlook has caused some to leave the area for a short time. But experts expect them to return.
"We find that hotels bounce back pretty quickly," Mr. Worsley said. "It's a long-term investment. I'm sure they're going to be back in there as soon as things settle down."
Hotels, restaurants, and tourist-oriented transportation industries in countries that have thus far avoided major unrest -- the United Arab Emirates, Saudi Arabia, Morocco, and Oman -- are either thriving or expected to pick up new business in the near future. The oil industry in Persian Gulf countries such as Kuwait, UAE and Qatar are also likely to benefit as production is curtailed in other countries.
"Some of these markets and cities are doing incredibly well," said Jonathan Worsley, spokesman for the Arabian Hotel Investment Conference. "You're either in the thick of things, or you're doing well by not being in it."
But for major U.S. companies doing business in such long-established markets as Egypt and Tunisia, the future is far more uncertain. Old relationships have crumbled with old regimes, and much uncertainty hangs over economic policy as the new governments struggle to get organized.
Business groups say the turmoil is the Middle East and North Africa is nothing new for American companies operating there.
The region has long suffered from political and civil unrest that undercut their bottom lines. But veteran U.S. investors say they knew the risks they were taking when they went in. Most American investors plan to stay the course and help rebuild the economies under new regimes, according to Lionel Johnson, vice president of Middle East and North Africa affairs for the U.S. Chamber of Commerce.
"The U.S. companies that are there have been there for a long time, they're planning to be there in the future, and they're trying to do everything they can to help," Mr. Johnson said. "You're not seeing disinvestment. You're not seeing companies shutting their doors and pulling out operations. They're continuing to be there."
There are few U.S. companies in Libya, said Mohsin Khan, a senior fellow at the District-based Peterson Institute for International Economics, lessening the impact on American business investment there. American businesses have faced more difficulties in Egypt, where longtime U.S. ally Hosni Mubarak was driven from power by a popular revolt less than two months ago.
Some had to close at the height of the unrest. Kraft Foods, which has operations across the Middle East, was forced to suspend operations in Egypt and Bahrain for several days, but has since reopened its facilities.
The new regime in Egypt and those in other countries throughout the region could turn a cold shoulder to foreign businesses that flourished under the previous rulers, Mr. Khan warned. That could mean price controls that would cut into profits. U.S. producers like Kellogg's and Coca-Cola are among those who could be at risk.
"If you're in that business, your prices could be controlled," Mr. Khan said. "The profits there will be reduced. That, to me, is a serious risk."
A more pressing concern for Mr. Khan is whether these countries will blame foreign businesses for their struggles. Western analysts say Mr. Mubarak made a major move to overhaul the country's lagging economy in 2004, appointing a slate of reform-minded ministers to key economic, tax, labor and trade posts.
More insular, protectionist regimes could turn to tariffs and other barriers to trade as a way to protect local producers.
In recent years, economies across the Middle East were taking steps in the right direction, Mr. Khan added, but they could spiral backward.
Egypt, for example, once ranked near the bottom of the World Bank's list of 183 nations with business-friendly climates. But it had surged to No. 94 in the 2011 survey, before the fall of the Mubarak government.
"These economies were really opening up to the world," he said. "But I think there's going to be a pushback now. My hope is that they won't reverse directions, but that they simply won't push further ahead."
The uncertainty doesn't sit well with businesses in these countries. Tunisian officials reported last month that foreign investments in the country fell by 17.9 percent in January 2011 compared with January 2010, with major revenue declines in tourism and petroleum.
For those with a port in the storm, the picture is much brighter.
Hotels occupancy in Dubai, the largest city of UAE, and Riyadh, Saudi Arabia, has stayed strong at 82 percent and 70 percent, respectively, slight increases from a year ago, as displaced travelers flood there. Occupancy rates in Abu Dhabi are up to 67 percent from only 43 percent a year ago. In Muscat, the capital of Oman, they are up to 68 percent, a 12 point increase.
But these jumps in tourism come at the expense of other Middle Eastern spots that are crippled with unrest. Hotel occupancy for Cairo in Egypt is down to 40 percent from 67 percent a year ago, and Beirut in Lebanon also is down to 40 percent from 62 percent.
The troubling outlook has caused some to leave the area for a short time. But experts expect them to return.
"We find that hotels bounce back pretty quickly," Mr. Worsley said. "It's a long-term investment. I'm sure they're going to be back in there as soon as things settle down."
New Study of Recoverable Oil in ND Urged
New Study of Recoverable Oil in ND Urged
Tuesday, April 05, 2011
Grand Forks Herald, N.D.
by Chuck Haga
As North Dakota marks the 60th anniversary of the discovery of oil in the Williston Basin, Sen. John Hoeven, R-N.D., has announced he'll host a meeting in Bismarck later this month with leaders of the U.S. Geological Survey to urge a new study of recoverable oil reserves in the region.
A 2008 USGS study identified more than 2 billion barrels of recoverable oil in the basin's Bakken Formation and said there is evidence of much more in place.
Oil companies operating in North Dakota have told the senator they believe that the area holds "significantly more recoverable reserves," and Hoeven conveyed that belief to Interior Secretary Ken Salazar when he appeared recently before the Senate Energy and Natural Resources Committee.
At that hearing, Hoeven urged Salazar to support a new study, calling it "a real opportunity," according to a statement released today by Hoeven's office.
Salazar agreed and said he would follow up on the study proposal, according to the statement.
The meeting on April 28 will be at the Bismarck State College Energy Center and will include technical discussions between USGS scientists and industry geologists and engineers, Hoeven said.
The USGS will need updated information from oil companies operating in North Dakota -- production curves, recovery rates, the use of new technologies and any new geological analyses -- to determine whether a new study is warranted, Hoeven said.
"Timely updates are an important part of attracting investments not only in new oil development but also in the associated development needed to support growing communities," he said. "It will help bring oil resource development to oil companies, but it will also help bring infrastructure, housing, restaurants and other service businesses."
Ed Murphy, state geologist at the North Dakota Geological Survey in Grand Forks, said a new study would be appropriate because "there have been so many more wells dug since 2008," and the industry has made big advances in hydraulic fracturing. "So much more information has been generated," he said.
Sixty years ago, on April 4, 1951, that a well operated by Amerada Corp. struck oil south of Tioga in northwestern North Dakota.
According to records maintained by the North Dakota Industrial Commission, the oil industry has produced 1.85 billion barrels since the discovery on Clarence Iverson's wheat farm.
Earlier state estimates indicated that at least twice that amount remains untapped in the Bakken and the Three Forks formation below it. The Bakken shale formation has received most of the attention recently, but it has accounted for just 11 percent of the crude recovered in the state so far. Close to half of the oil pumped from the basin since 1951 has come from the Madison formation.
Tuesday, April 05, 2011
Grand Forks Herald, N.D.
by Chuck Haga
As North Dakota marks the 60th anniversary of the discovery of oil in the Williston Basin, Sen. John Hoeven, R-N.D., has announced he'll host a meeting in Bismarck later this month with leaders of the U.S. Geological Survey to urge a new study of recoverable oil reserves in the region.
A 2008 USGS study identified more than 2 billion barrels of recoverable oil in the basin's Bakken Formation and said there is evidence of much more in place.
Oil companies operating in North Dakota have told the senator they believe that the area holds "significantly more recoverable reserves," and Hoeven conveyed that belief to Interior Secretary Ken Salazar when he appeared recently before the Senate Energy and Natural Resources Committee.
At that hearing, Hoeven urged Salazar to support a new study, calling it "a real opportunity," according to a statement released today by Hoeven's office.
Salazar agreed and said he would follow up on the study proposal, according to the statement.
The meeting on April 28 will be at the Bismarck State College Energy Center and will include technical discussions between USGS scientists and industry geologists and engineers, Hoeven said.
The USGS will need updated information from oil companies operating in North Dakota -- production curves, recovery rates, the use of new technologies and any new geological analyses -- to determine whether a new study is warranted, Hoeven said.
"Timely updates are an important part of attracting investments not only in new oil development but also in the associated development needed to support growing communities," he said. "It will help bring oil resource development to oil companies, but it will also help bring infrastructure, housing, restaurants and other service businesses."
Ed Murphy, state geologist at the North Dakota Geological Survey in Grand Forks, said a new study would be appropriate because "there have been so many more wells dug since 2008," and the industry has made big advances in hydraulic fracturing. "So much more information has been generated," he said.
Sixty years ago, on April 4, 1951, that a well operated by Amerada Corp. struck oil south of Tioga in northwestern North Dakota.
According to records maintained by the North Dakota Industrial Commission, the oil industry has produced 1.85 billion barrels since the discovery on Clarence Iverson's wheat farm.
Earlier state estimates indicated that at least twice that amount remains untapped in the Bakken and the Three Forks formation below it. The Bakken shale formation has received most of the attention recently, but it has accounted for just 11 percent of the crude recovered in the state so far. Close to half of the oil pumped from the basin since 1951 has come from the Madison formation.
Shell Likely to Pick Nigerian Co for Prized Oil Block
Shell Likely to Pick Nigerian Co for Prized Oil Block
Tuesday, April 05, 2011
Dow Jones Newswires
by Will Connors
Nigerian company Conoil is the front-runner for a stake in one of Shell's prized oil blocks in Nigeria, but the deal hasn't been finalized, according to two people familiar with the bidding.
Other bidders have been told Conoil is the winner in a competitive bid process, according to two people familiar with the situation. A Conoil spokesman Tuesday also confirmed a local press report that named Conoil as the winner, but declined additional comment.
Conoil is chaired by Mike Adenuga, a telecom executive who was recently listed in a Forbes magazine list of billionaires.
The deal is still subject to Nigerian government approval.
OML 30 is seen as the most attractive of four Shell blocks up for sale and is currently producing about 40,000 b/d. French firm Total and Italian company Eni also had small stakes in the block.
Conoil outbid at least three other other local companies, Oando, backed by Anglo-French company Perenco and Chinese-owned Addax Petroleum, Shoreline Energy International, backed by U.K.-based Heritage Oil, and African Petroleum, according to two people familiar with the matter.
OML 30 is one of four onshore oil blocks Shell is selling in Nigeria. Shell has confirmed that it is selling the four blocks but declined to comment on the current negotiations.
Shell has been trying to reduce its footprint onshore Nigeria, where militant attacks and oil theft have slashed the company's output since 2006.
Last week, Shell closed a deal for another of the four blocks, OML 40, with Nigerian company Elcrest Exploration and Production Nigeria Ltd.
Tuesday, April 05, 2011
Dow Jones Newswires
by Will Connors
Nigerian company Conoil is the front-runner for a stake in one of Shell's prized oil blocks in Nigeria, but the deal hasn't been finalized, according to two people familiar with the bidding.
Other bidders have been told Conoil is the winner in a competitive bid process, according to two people familiar with the situation. A Conoil spokesman Tuesday also confirmed a local press report that named Conoil as the winner, but declined additional comment.
Conoil is chaired by Mike Adenuga, a telecom executive who was recently listed in a Forbes magazine list of billionaires.
The deal is still subject to Nigerian government approval.
OML 30 is seen as the most attractive of four Shell blocks up for sale and is currently producing about 40,000 b/d. French firm Total and Italian company Eni also had small stakes in the block.
Conoil outbid at least three other other local companies, Oando, backed by Anglo-French company Perenco and Chinese-owned Addax Petroleum, Shoreline Energy International, backed by U.K.-based Heritage Oil, and African Petroleum, according to two people familiar with the matter.
OML 30 is one of four onshore oil blocks Shell is selling in Nigeria. Shell has confirmed that it is selling the four blocks but declined to comment on the current negotiations.
Shell has been trying to reduce its footprint onshore Nigeria, where militant attacks and oil theft have slashed the company's output since 2006.
Last week, Shell closed a deal for another of the four blocks, OML 40, with Nigerian company Elcrest Exploration and Production Nigeria Ltd.
Cuba to Drill 5 New Oil Wells by 2013
Cuba to Drill 5 New Oil Wells by 2013
Tuesday, April 05, 2011
Dow Jones Newswires
Cuba announced plans to drill five deepwater oil wells in the Gulf of Mexico beginning this summer, expressing confidence that its efforts will be rewarded with major new energy finds.
"We're about to move to the drilling phase," said Manuel Marrero, an official with the government authority tasked with overseeing Cuba's oil sector.
"We're all really hopeful that we will be able to discover large reserves of oil and gas," said Marrero, who added that the ventures would be undertaken with the help of unspecified foreign companies.
He said the deepwater wells were to be drilled between 2011 and 2013, and would be in waters ranging in depth between 400 meters (a quarter mile) and 1,500 meters (1.6 miles). He did not specify which countries would be among the foreign partners working with Havana on the project.
Studies estimate Cuba has probable reserves of between 5 and 9 billion barrels of oil in its economic zone in the Gulf of Mexico.
In 2010, Cuba produced 21 million barrels of oil, about the same as it had extracted the previous year, representing a little less than half of its annual energy needs.
Cuba imports that rest of its oil -- about 100,000 barrels per day -- from Venezuela.
Tuesday, April 05, 2011
Dow Jones Newswires
Cuba announced plans to drill five deepwater oil wells in the Gulf of Mexico beginning this summer, expressing confidence that its efforts will be rewarded with major new energy finds.
"We're about to move to the drilling phase," said Manuel Marrero, an official with the government authority tasked with overseeing Cuba's oil sector.
"We're all really hopeful that we will be able to discover large reserves of oil and gas," said Marrero, who added that the ventures would be undertaken with the help of unspecified foreign companies.
He said the deepwater wells were to be drilled between 2011 and 2013, and would be in waters ranging in depth between 400 meters (a quarter mile) and 1,500 meters (1.6 miles). He did not specify which countries would be among the foreign partners working with Havana on the project.
Studies estimate Cuba has probable reserves of between 5 and 9 billion barrels of oil in its economic zone in the Gulf of Mexico.
In 2010, Cuba produced 21 million barrels of oil, about the same as it had extracted the previous year, representing a little less than half of its annual energy needs.
Cuba imports that rest of its oil -- about 100,000 barrels per day -- from Venezuela.
SeaBird to Start Rosebank Survey Earlier
SeaBird to Start Rosebank Survey Earlier
Tuesday, April 05, 2011
Tuesday, April 05, 2011
SeaBird Exploration plc
SeaBird announced that an agreement has been reached with Chevron North Sea Limited (on behalf of itself and the other Rosebank co-venturers: Statoil, OMV, and DONG related to the earlier announced award of the Rosebank 2 survey. SeaBird has been granted the option to start the 2nd stage of the Ocean Bottom Node survey at the Rosebank field with the Hugin Explorer as Node vessel and Munin Explorer as source vessel earlier than the initial agreed start date. Hugin Explorer has just completed classification work at a yard in Denmark, and is presently mobilizing to the Rosebank Field.
Estimated start-up is 13-15 April, which is about 3 weeks ahead of the earlier agreed start date of around May 5, 2011. This will potentially improve SeaBird's revenue in 2Q 2011.
Estimated start-up is 13-15 April, which is about 3 weeks ahead of the earlier agreed start date of around May 5, 2011. This will potentially improve SeaBird's revenue in 2Q 2011.
Jubilant to Spud Srikantabari Well, Updates Ops
Jubilant to Spud Srikantabari Well, Updates Ops
Tuesday, April 05, 2011
The Company has net debt of USD 213 million. Cash balance and undrawn facilities available to the company total USD 132 million.
Production facilities are currently under planning and execution. Engineers India Limited ("EIL") has been appointed as the project managers The Well Head Platform ("WHP") is being constructed in Malaysia and is expected to be transported to India to be set in place by May 2011. The Onshore Gas Terminal ("OGT") construction is marginally ahead of schedule.
The tenders for Production and Living Quarters Platform (PLQP") and gas turbines were obtained in October 2010 and the contract award is expected to occur in Q2 2011 to achieve commissioning in 2013. The pipeline tender was published in December 2010 and award is also expected in by the end of Q2 of 2011.
Deen Dayal East ("DDE") appraisal well drilling on schedule
The appraisal well DDE-APP-1, located in 101 meters of water, was spudded on 1 January 2011. This is the second appraisal well in DDE area of the KG block. The target depth of the well is 5,634 meters measured depth ("MD") with the objective of appraising the hydrocarbon bearing sands discovered by the KG-16 well. As of 31 March 2011 the well was at 5,344 meters MD (4,544 meters true vertical depth). The cost of drilling this well is expected to be below the original estimated cost of approximately USD 50 million.
Management Committee approval for Deen Dayal West ("DDW") extension area
A decision upon the application to the Government for a grant of contract area extension by 20.5 sq kms in the south west of DDW is expected shortly, which will potentially increase reserves and resources in DDW.
Submission of FDP and Declaration of Commerciality
The Management Committee has approved a 30 month extension of the Petroleum Exploration License (493 sq. km.) to the end of September 2012 to appraise and submit a Declaration of Commerciality ("DoC") for the remaining discoveries on the block. An integrated DoC and FDP will be submitted accordingly.
The operator is currently carrying out a work-over campaign and is planning to undertake the Phase-III drilling program in mid 2011. This drilling program includes five firm wells and two contingent wells. The program also includes the drilling of a deeper exploration, targeting total depth of approximately 2,600 meters, which will be below the Kharsang thrust.
Based on 137 line kilometers ("lkms") of 2D seismic data, up to two appraisal wells are expected to be drilled to evaluate the original discovery by early 2012. The K-1 well was drilled to a depth of 3,428 meters and flowed at the rate of 5.2 mmcfd from the Middle Bhuban Sandstones in December 2009.
Jubilant is currently acquiring the seismic data for the appraisal of K-1. To date, over 92 lkms have been acquired. It is envisaged that the survey will be completed in late April 2011. The extended production test of the K-1 well is currently being planned and is expected to be tested as part of the overall drilling and testing campaign in Q3 2011.
Spudding of Srikantabari-1 well
The Quippo rig # 3 is currently rigging up on the drilling location and the Company expects to spud the Srikantabari-1 well in May 2011. The well is targeting the Middle Bhuban sandstones together with deeper targets and is estimated to cost approximately USD 11 million (gross). The well will be drilled with managed pressure drilling to a depth of 4,000 meters and is estimated to take approximately 80 days. Depending on geological and drilling conditions, the well may be deepened to test deeper targets.
The first season of surface geological mapping was started on 20 January 2011 and has already been completed. Balanced cross sections and revised geological maps will now be prepared based on this work and are expected to be completed by May 2011.
Tuesday, April 05, 2011
Jubilant Energy N.V.
Jubilant provided its trading statement and operational update for the year ended March 31, 2011.HIGHLIGHTS
- Producing asset
- Average gross production of 1,809 bopd, equating to 452 bopd net to Jubilant.
- Multiple work programs in place to achieve increased production from Kharsang field through ongoing workover and drilling programs.
- Exploratory drilling planned in mid 2011 for establishing deeper prospectivity of Kharsang field.
- The new production profile and reserve estimates of Kharsang field expected to be announced in before the end of 2011.
- Exploration and appraisal activities
- Srikantabari well in Tripura Block expected to be spudded in May 2011.
- Approval obtained for appraisal program of Kathalchari prospect in Tripura block and over 65% of seismic program completed.
- Topography reconnaissance survey completed in both Manipur blocks and Phase- I seismic program awarded.
- DDE-APP-1 appraisal well in KG spudded on January 1, 2011.
- Spudded first exploration well in Golaghat on March 20, 2011.
- Development activities in KG
- Development drilling in Deen Dayal West expected to commence in August 2011. Well Head Platform expected to be set by May 2011 and Onshore Gas Terminal progressing ahead of schedule. Production Living Quarter Platform and Gas Turbines contract award expected by Q2 2011.
- Management committee, which also includes Government's nominee, has recommended the grant of an extension to the contract area of 20.5 sq kms to the south west of DDW to the consortium, the final approval of which is expected soon.
TRADING STATEMENT
Kharsang Production
The average gross production during the year was 1,809 bopd and working interest production was 452 bopd. In the previous year, gross production was 1,895 bopd and working interest production was 474 bopd. The marginal decline in the current period is due to the need for workover activities designed to increase production and improve the recovery factor.Financing
On March 24, 2011, the Company repaid a USD 50 million EXIM loan facility together with USD 20.9 million of accrued interest. A secured facility from Central Bank of India (CBI facility) was available to fund this loan repayment through the repatriation of proceeds to an offshore entity. As part of its treasury management, the Company has used IPO proceeds for the loan repayment and will use the CBI facility to fund the capital expenditure and other requirements, for which IPO money was raised. The terms of CBI facility have been suitably amended to use the loan proceeds for funding the capital expenditure and other requirements. The drawdown of the CBI facility will be made in tranches as funding is required, resulting in a reduction in the interest payable by the Company, compared to drawing down the entire amount for repayment of the EXIM facility in one tranche.The Company has net debt of USD 213 million. Cash balance and undrawn facilities available to the company total USD 132 million.
Asset relinquishment
In view of the limited potential and commercial viability of the blocks, the company intends to relinquish its 30% interest in the Cauvery and Mehsana blocks. The partners for the Cauvery Block have formally communicated their intention to relinquish the block; however, the costs were impaired in the previous financial year.OPERATIONAL UPDATE
DEVELOPMENT OF DEEN DAYAL FIELD IN KRISHNA GODAVARI BLOCK
Work program on scheduleProduction facilities are currently under planning and execution. Engineers India Limited ("EIL") has been appointed as the project managers The Well Head Platform ("WHP") is being constructed in Malaysia and is expected to be transported to India to be set in place by May 2011. The Onshore Gas Terminal ("OGT") construction is marginally ahead of schedule.
The tenders for Production and Living Quarters Platform (PLQP") and gas turbines were obtained in October 2010 and the contract award is expected to occur in Q2 2011 to achieve commissioning in 2013. The pipeline tender was published in December 2010 and award is also expected in by the end of Q2 of 2011.
Deen Dayal East ("DDE") appraisal well drilling on schedule
The appraisal well DDE-APP-1, located in 101 meters of water, was spudded on 1 January 2011. This is the second appraisal well in DDE area of the KG block. The target depth of the well is 5,634 meters measured depth ("MD") with the objective of appraising the hydrocarbon bearing sands discovered by the KG-16 well. As of 31 March 2011 the well was at 5,344 meters MD (4,544 meters true vertical depth). The cost of drilling this well is expected to be below the original estimated cost of approximately USD 50 million.
Management Committee approval for Deen Dayal West ("DDW") extension area
A decision upon the application to the Government for a grant of contract area extension by 20.5 sq kms in the south west of DDW is expected shortly, which will potentially increase reserves and resources in DDW.
Submission of FDP and Declaration of Commerciality
The Management Committee has approved a 30 month extension of the Petroleum Exploration License (493 sq. km.) to the end of September 2012 to appraise and submit a Declaration of Commerciality ("DoC") for the remaining discoveries on the block. An integrated DoC and FDP will be submitted accordingly.
KHARSANG
The gross production from the field during the current financial year was lower at 660,327 bbls (1,809 bopd), compared to gross production of 691,627 bbbls (1,895 bopd) during the previous year. The marginal decline in the current period is due to work-over activities designed to achieve increased production with an improved recovery factor.The operator is currently carrying out a work-over campaign and is planning to undertake the Phase-III drilling program in mid 2011. This drilling program includes five firm wells and two contingent wells. The program also includes the drilling of a deeper exploration, targeting total depth of approximately 2,600 meters, which will be below the Kharsang thrust.
TRIPURA BLOCK
Appraisal program at Kathalchari-1Based on 137 line kilometers ("lkms") of 2D seismic data, up to two appraisal wells are expected to be drilled to evaluate the original discovery by early 2012. The K-1 well was drilled to a depth of 3,428 meters and flowed at the rate of 5.2 mmcfd from the Middle Bhuban Sandstones in December 2009.
Jubilant is currently acquiring the seismic data for the appraisal of K-1. To date, over 92 lkms have been acquired. It is envisaged that the survey will be completed in late April 2011. The extended production test of the K-1 well is currently being planned and is expected to be tested as part of the overall drilling and testing campaign in Q3 2011.
Spudding of Srikantabari-1 well
The Quippo rig # 3 is currently rigging up on the drilling location and the Company expects to spud the Srikantabari-1 well in May 2011. The well is targeting the Middle Bhuban sandstones together with deeper targets and is estimated to cost approximately USD 11 million (gross). The well will be drilled with managed pressure drilling to a depth of 4,000 meters and is estimated to take approximately 80 days. Depending on geological and drilling conditions, the well may be deepened to test deeper targets.
MANIPUR BLOCKS
Geological mapping currently in progressThe first season of surface geological mapping was started on 20 January 2011 and has already been completed. Balanced cross sections and revised geological maps will now be prepared based on this work and are expected to be completed by May 2011.
GOLAGHAT BLOCK
The company is planning to drill up to three wells on this license. As recently announced, the first well, P16, was spudded on 20th March 2011 and will be drilled to a total depth of 1,660 meters into the basement with the objective of discovering oil bearing sands in the Kopili, Sylhet, Tura and lower Gondwana reservoirs. The well is expected to take approximately 25 days to drill and, as of 31 March 2011, had reached a depth of 1148 meters TVD.Matra Pumps Production in Russia
Matra Pumps Production in Russia
Tuesday, April 05, 2011
Tuesday, April 05, 2011
Matra Petroleum plc
Matra announced that production has commenced from both existing wells in the Sokolovskoe Field, Russia.
Neither well has yet stabilized and as expected both will require acid stimulation and/or pump installation to maximize production rates. Well -13 is currently producing approximately 65 bopd and well-12 approximately 100-150bopd, although both well rates are fluctuating significantly and have not yet unloaded residual mud and completion fluids from the wellbore. In total over 2,000 bbls of oil have been produced from the wells and oil sales are being made on a regular basis.
Attempts to stabilize flow rates are being made before conducting the pressure surveys which will enable us to estimate the capability of the wells after acidization and/or pump installation. It is notable that neither well has yet produced any formation water.
Pressure surveys and analysis will occur during the next two weeks and a plan to maximize production rates will follow.
The weather in Orenburg has been a little unusual this year with some late heavy snowfalls which have delayed demobilization of the side-track rig. The main thaw has now begun and heavy load transportation will be limited during April whilst the snow melts and clears.
Matra's Managing Director, Peter Hind commented, "Well-12 side-track is producing at broadly similar rates to the original hole prior to acidising and the data from forthcoming pressure surveys should allow us to confirm the potential to improve production substantially. Whilst it is not possible to comment on ultimate production rates at this stage, the original well demonstrated an eight-to-ten fold improvement after acid.
"It is encouraging that the water appears to have been isolated, by remedial cementation, in well-13 and it was anticipated that this procedure would also damage the oil reservoir. Pressure data acquisition will again allow us to estimate likely rate improvements.
"We are currently planning to mobilize a coiled tubing unit to the well sites to ensure the proper clean up and to undertake acidization as appropriate. This work will commence once the road restrictions associated with the annual thaw are removed. Until that time data acquisition and oil production/sales will continue."
Neither well has yet stabilized and as expected both will require acid stimulation and/or pump installation to maximize production rates. Well -13 is currently producing approximately 65 bopd and well-12 approximately 100-150bopd, although both well rates are fluctuating significantly and have not yet unloaded residual mud and completion fluids from the wellbore. In total over 2,000 bbls of oil have been produced from the wells and oil sales are being made on a regular basis.
Attempts to stabilize flow rates are being made before conducting the pressure surveys which will enable us to estimate the capability of the wells after acidization and/or pump installation. It is notable that neither well has yet produced any formation water.
Pressure surveys and analysis will occur during the next two weeks and a plan to maximize production rates will follow.
The weather in Orenburg has been a little unusual this year with some late heavy snowfalls which have delayed demobilization of the side-track rig. The main thaw has now begun and heavy load transportation will be limited during April whilst the snow melts and clears.
Matra's Managing Director, Peter Hind commented, "Well-12 side-track is producing at broadly similar rates to the original hole prior to acidising and the data from forthcoming pressure surveys should allow us to confirm the potential to improve production substantially. Whilst it is not possible to comment on ultimate production rates at this stage, the original well demonstrated an eight-to-ten fold improvement after acid.
"It is encouraging that the water appears to have been isolated, by remedial cementation, in well-13 and it was anticipated that this procedure would also damage the oil reservoir. Pressure data acquisition will again allow us to estimate likely rate improvements.
"We are currently planning to mobilize a coiled tubing unit to the well sites to ensure the proper clean up and to undertake acidization as appropriate. This work will commence once the road restrictions associated with the annual thaw are removed. Until that time data acquisition and oil production/sales will continue."
Petro Vista Completes Private Placement Balance
Petro Vista Completes Private Placement Balance
Tuesday, April 05, 2011
Tuesday, April 05, 2011
Petro Vista Energy Corp.
Petro Vista announced the completion of the balance of a C$4,000,000 non-brokered private placement previously announced on March 9, 2011 and March 16, 2011. This second tranche of the placement consisted of the sale of 8,250,000 units at a price of C$0.20 per unit for gross proceeds to the Company of C$1,650,000 (the "Offering").
Each unit consists of one common share and one common share purchase warrant. Each common share purchase warrant entitles the holder to purchase one additional common share at a price of $0.30 per common share until April 5, 2014, subject to the Company's right to accelerate the expiry date of the warrants if the daily volume weighted average trading price of the common shares of the Company on the TSX Venture Exchange is equal to or exceeds $0.45 for a period of 10 consecutive trading days between August 6, 2011 and April 5, 2014.
Petro Vista paid commissions to finders under the Offering consisting of the issuance of 480,000 units. Each of these units has the same terms as those issued under the Offering. Additionally, the Company has issued 480,000 compensation warrants to finders. Each compensation warrant entitles the holder to acquire one common share at a price of $0.235 per common share until April 5, 2013.
All securities issued under the Offering will be subject to a four-month hold period in accordance with applicable Canadian securities laws that expires on August 6, 2011.
The proceeds of the Offering will be used by the Company primarily to fund the drilling of the Company's M5B exploration / appraisal well and the testing of the Company's M5 discovery well, both located in the Llanos Basin, Columbia and for general working capital.
Each unit consists of one common share and one common share purchase warrant. Each common share purchase warrant entitles the holder to purchase one additional common share at a price of $0.30 per common share until April 5, 2014, subject to the Company's right to accelerate the expiry date of the warrants if the daily volume weighted average trading price of the common shares of the Company on the TSX Venture Exchange is equal to or exceeds $0.45 for a period of 10 consecutive trading days between August 6, 2011 and April 5, 2014.
Petro Vista paid commissions to finders under the Offering consisting of the issuance of 480,000 units. Each of these units has the same terms as those issued under the Offering. Additionally, the Company has issued 480,000 compensation warrants to finders. Each compensation warrant entitles the holder to acquire one common share at a price of $0.235 per common share until April 5, 2013.
All securities issued under the Offering will be subject to a four-month hold period in accordance with applicable Canadian securities laws that expires on August 6, 2011.
The proceeds of the Offering will be used by the Company primarily to fund the drilling of the Company's M5B exploration / appraisal well and the testing of the Company's M5 discovery well, both located in the Llanos Basin, Columbia and for general working capital.
Green Equity to Acquire Property in Neuces County
Green Equity to Acquire Property in Neuces County
Tuesday, April 05, 2011
Green Equity Holdings Inc.
Green Equity has signed a Letter of Intent (LOI) with a Houston-based private company to acquire a 250-acre oil and gas property located in Nueces County, Texas.
The property contains one producing well and proved undeveloped locations, which the Company anticipates to drill and complete in the next 60 days. Under the terms of the LOI, Green Equity Holdings will acquire the property for a price of $2,000,000, paid for in cash, promissory notes and/or Green Equity Holdings' stock.
"Our LOI is aligned with our new strategy to focus on opportunities within the oil and gas industry," said Raymond Dias, president of Green Equity Holdings, Inc. "We plan to acquire natural resource properties that contain already producing wells or those that can be brought into production in the near-term. We believe the timing is right to acquire oil and gas wells at a discount to the market, and then turn them into productive, cash-generating assets for the benefit of our shareholders."
The purchase and sales agreement is expected to be signed by April 29, 2011, and is subject to the approval of the companies' Board of Directors.
Tuesday, April 05, 2011
Green Equity Holdings Inc.
Green Equity has signed a Letter of Intent (LOI) with a Houston-based private company to acquire a 250-acre oil and gas property located in Nueces County, Texas.
The property contains one producing well and proved undeveloped locations, which the Company anticipates to drill and complete in the next 60 days. Under the terms of the LOI, Green Equity Holdings will acquire the property for a price of $2,000,000, paid for in cash, promissory notes and/or Green Equity Holdings' stock.
"Our LOI is aligned with our new strategy to focus on opportunities within the oil and gas industry," said Raymond Dias, president of Green Equity Holdings, Inc. "We plan to acquire natural resource properties that contain already producing wells or those that can be brought into production in the near-term. We believe the timing is right to acquire oil and gas wells at a discount to the market, and then turn them into productive, cash-generating assets for the benefit of our shareholders."
The purchase and sales agreement is expected to be signed by April 29, 2011, and is subject to the approval of the companies' Board of Directors.
Otto Managing Director to Resi
Otto Managing Director to Resi
Tuesday, April 05, 2011
Otto Energy Ltd
Otto advised that Mr. Paul Moore, Managing Director of Otto has given notice of his resignation effective close of business Friday, July 1, 2011.
Mr. Moore has explained that his decision, not made lightly, was for personal reasons and he will be relocating overseas.
The Board has commenced a formal search for a new CEO. Mr. Moore will work closely with the Board and management over the coming 3 months to continue with ongoing business growth and operations and ensure a smooth transition.
Non executive director Mr. Ian Boserio will provide assistance to the management team and new CEO where necessary to further ensure successful business delivery.
The Company has an experienced and stable senior management team in Perth and Manila who will ensure all Company operations remain on schedule.
Although disappointed to be losing his services, the Board understands Mr. Moore's decision and we wish him and his family all the best for the future.
Tuesday, April 05, 2011
Otto Energy Ltd
Otto advised that Mr. Paul Moore, Managing Director of Otto has given notice of his resignation effective close of business Friday, July 1, 2011.
Mr. Moore has explained that his decision, not made lightly, was for personal reasons and he will be relocating overseas.
The Board has commenced a formal search for a new CEO. Mr. Moore will work closely with the Board and management over the coming 3 months to continue with ongoing business growth and operations and ensure a smooth transition.
Non executive director Mr. Ian Boserio will provide assistance to the management team and new CEO where necessary to further ensure successful business delivery.
The Company has an experienced and stable senior management team in Perth and Manila who will ensure all Company operations remain on schedule.
Although disappointed to be losing his services, the Board understands Mr. Moore's decision and we wish him and his family all the best for the future.
Rheochem Swaps Stake for Seismic Survey
Rheochem Swaps Stake for Seismic Survey
Tuesday, April 05, 2011
Tuesday, April 05, 2011
Rheochem plc
Rheochem's 100% owned subsidiary Zeus has entered into a Heads of Agreement with PGS Exploration (UK) limited ("PGS") or its designated affiliate to transfer a 40% stake in six North Sea blocks (16/8c, 3/5, 3/10c, 9/17b, 9/22b and 14/17) in return for the access to 3D seismic data and associated seismic interpretation and engineering expertise over these blocks. The agreement is subject to final contract, joint operating agreements and UK Government approval.
Haydn Gardner, Chief Executive Officer of Rheochem said, "We are delighted to have PGS as a partner and believe their proprietary seismic expertise and techniques will enhance the technical evaluation of our North Sea blocks. Once finalized, this agreement will allow us to fast track the evaluation of these blocks and we look forward to working with PGS on these exciting discoveries and prospects."
Haydn Gardner, Chief Executive Officer of Rheochem said, "We are delighted to have PGS as a partner and believe their proprietary seismic expertise and techniques will enhance the technical evaluation of our North Sea blocks. Once finalized, this agreement will allow us to fast track the evaluation of these blocks and we look forward to working with PGS on these exciting discoveries and prospects."
Sun River Begins Production at Haynesville Well
Sun River Begins Production at Haynesville Well
Tuesday, April 05, 2011
Tuesday, April 05, 2011
Sun River Energy Inc.
Sun River announced it turned the Neal Heirs # 1 well to production on March 31, 2011.
The Neal Heirs # 1 well (API # 42-365-37706) is drilled vertically to a total depth of 11,057 feet in Panola County, Texas. The well is completed in the Haynesville Shale geological formation at 10,214' to 10,716'. The well is located within the prolific Carthage Field. The well initially shut-in at 5,386 PSI tubing pressure after fracture treatment. Presently, the well is producing both natural gas and crude. The well is flowing at 2,256 MCF a day with a constant flowing tubing pressure of 3,320 PSI.
Sun River Operating, Inc. operates the well. Sun River Energy, Inc. owns a 77.5% working interest in the well.
Donal R. Schmidt, Jr., the Company's CEO and President, stated, "It is always a relief to have your first well in a project come on like the Neal Heirs #1. The well exceeded our team's initial expectation in every way. We are presently preparing to drill two more wells in adjoining gas units and expect similar results. The Neal Heirs #1 confirms my belief that our team has what it takes to consistently develop deep unconventional gas at an attractive cost. Our preliminary estimate is that the net finding and development cost per MCFE of proved gas in this well will be around $1.24. This will place us at the top of low cost producers in our sector of the natural gas market."
The Neal Heirs # 1 well (API # 42-365-37706) is drilled vertically to a total depth of 11,057 feet in Panola County, Texas. The well is completed in the Haynesville Shale geological formation at 10,214' to 10,716'. The well is located within the prolific Carthage Field. The well initially shut-in at 5,386 PSI tubing pressure after fracture treatment. Presently, the well is producing both natural gas and crude. The well is flowing at 2,256 MCF a day with a constant flowing tubing pressure of 3,320 PSI.
Sun River Operating, Inc. operates the well. Sun River Energy, Inc. owns a 77.5% working interest in the well.
Donal R. Schmidt, Jr., the Company's CEO and President, stated, "It is always a relief to have your first well in a project come on like the Neal Heirs #1. The well exceeded our team's initial expectation in every way. We are presently preparing to drill two more wells in adjoining gas units and expect similar results. The Neal Heirs #1 confirms my belief that our team has what it takes to consistently develop deep unconventional gas at an attractive cost. Our preliminary estimate is that the net finding and development cost per MCFE of proved gas in this well will be around $1.24. This will place us at the top of low cost producers in our sector of the natural gas market."
Frac Stimulation Ops Begin at Samson's Earl Well
Frac Stimulation Ops Begin at Samson's Earl Well
Tuesday, April 05, 2011
Tuesday, April 05, 2011
Samson O&G Ltd.
Samson O&G advised that fracture stimulation operations on the Earl #1-13H started on Saturday, April 2nd. Pumping operations are currently expected to be completed by April 7th and flow back operations will commence shortly thereafter.
While there have been some weather-induced delays, as of Monday 0600 hours April 4th, Stages 1 to 4 had been pumped, and Stage 5 was about to be pumped.
The stimulation plan involves 20 stages, which will place a total of 2.7 million pounds of proppant in the 5,700 foot horizontal section.
While there have been some weather-induced delays, as of Monday 0600 hours April 4th, Stages 1 to 4 had been pumped, and Stage 5 was about to be pumped.
The stimulation plan involves 20 stages, which will place a total of 2.7 million pounds of proppant in the 5,700 foot horizontal section.
Breitling Concludes Ops at Pottawatomie County
Breitling Concludes Ops at Pottawatomie County
Tuesday, April 05, 2011
Tuesday, April 05, 2011
Breitling O&G Corp.
Breitling announced that the Breitling-Magnolia #2 in Pottawatomie County, Oklahoma, is being completed as a possible oil and gas producer after reaching a total vertical depth of 4,500 feet.
From log analysis, the well encountered several potentially productive zones over a gross interval in the Earlsboro Sand formation from 3538 feet to 3846 feet, the Hunton Limestone from 4160 feet to 4178 feet, and the Upper Hunton from 4130 feet to 4146 feet. Testing and completion plans were finalized April 2 and a completion rig and crew are scheduled to move on location April 12, 2011.
Chris Faulkner, CEO of Breitling, said, "As predicted after our findings in the Magnolia #1, the Magnolia #2 encountered multiple potential pay zones and looks to be a good well." Faulkner added, "The Magnolia play has proven very successful and we are thrilled with the outcome."
Breitling ran a triple combo log and decided to run pipe based on analysis by Breitling's engineers and geologists as well as Halliburton's analysis of the Magnolia #2 logs. Joe Simo, Chief Geologist for Breitling, said, "The limestone showed good visual porosity, fracturing, oil staining and bright blue fluorescence with very strong odor."
From log analysis, the well encountered several potentially productive zones over a gross interval in the Earlsboro Sand formation from 3538 feet to 3846 feet, the Hunton Limestone from 4160 feet to 4178 feet, and the Upper Hunton from 4130 feet to 4146 feet. Testing and completion plans were finalized April 2 and a completion rig and crew are scheduled to move on location April 12, 2011.
Chris Faulkner, CEO of Breitling, said, "As predicted after our findings in the Magnolia #1, the Magnolia #2 encountered multiple potential pay zones and looks to be a good well." Faulkner added, "The Magnolia play has proven very successful and we are thrilled with the outcome."
Breitling ran a triple combo log and decided to run pipe based on analysis by Breitling's engineers and geologists as well as Halliburton's analysis of the Magnolia #2 logs. Joe Simo, Chief Geologist for Breitling, said, "The limestone showed good visual porosity, fracturing, oil staining and bright blue fluorescence with very strong odor."
CETS Snags Subsea Contract for Liwan Field
CETS Snags Subsea Contract for Liwan Field
Tuesday, April 05, 2011
Expro International Group
Expro and China Oilfield Services (COSL) in the form of a China based joint venture, CETS, Husky Oil China has awarded the joint venture with a subsea and well testing contract worth in excess of $25 million.
These services will be deployed by Expro and COSL's joint venture, CETS, which is based in Shekou, Shenzhen South China. This service supports the second stage of Husky's Liwan gas field subsea development in the South China Sea. The three-year contract includes a surface clean-up and flow-back package with the ability to flow and measure high gas rates.
Expro's continued support of the joint venture with leading technology and project planning means that CETS is ideally placed to further support the on-going development in the area.
CETS has installed surface equipment to handle the expected high flow rates while supplying Husky with accurate detailed data for further field appraisal. This pioneering work in the deeper waters of the South China Sea presents a number of challenges including readiness to unlatch at short notice during the typhoon season.
Expro's modular process equipment measures the performance of a well with acute accuracy. Testing involves flowing the well through a temporary completion and production system in order to measure flow parameters, and to gather representative fluid samples for analysis. These measurements are used to determine commercial viability, as well as to plan potential future completion and production facilities.
Expro's Express and ELSA in-riser electro hydraulic landing string system will allow the safe installation of all of Husky's subsea completion operations from the assigned DP drilling rig guaranteeing fast and secure well isolation and system disconnect during the critical well clean-up operations and completion deployment.
Peter Quiatkowski, JV General Manager, said, "An award of this size demonstrates the combined strength that Expro and COSL bring to the market. The joint venture is well equipped to meet the challenge and this contract is evidence of our capacity to deliver specialist services and provide the most accurate and reliable results."
Graham Cheyne, Expro's subsea sales director, said, "This is the first deployment of Expro's large bore electro-hydraulic landing string systems in Asia and the first deepwater subsea development in China. This clearly shows our position as deepwater players in China and will further develop Expro's commitment to working with Chinese nationals and enhance our relationship with our joint venture company."
Tuesday, April 05, 2011
Expro International Group
Expro and China Oilfield Services (COSL) in the form of a China based joint venture, CETS, Husky Oil China has awarded the joint venture with a subsea and well testing contract worth in excess of $25 million.
These services will be deployed by Expro and COSL's joint venture, CETS, which is based in Shekou, Shenzhen South China. This service supports the second stage of Husky's Liwan gas field subsea development in the South China Sea. The three-year contract includes a surface clean-up and flow-back package with the ability to flow and measure high gas rates.
Expro's continued support of the joint venture with leading technology and project planning means that CETS is ideally placed to further support the on-going development in the area.
CETS has installed surface equipment to handle the expected high flow rates while supplying Husky with accurate detailed data for further field appraisal. This pioneering work in the deeper waters of the South China Sea presents a number of challenges including readiness to unlatch at short notice during the typhoon season.
Expro's modular process equipment measures the performance of a well with acute accuracy. Testing involves flowing the well through a temporary completion and production system in order to measure flow parameters, and to gather representative fluid samples for analysis. These measurements are used to determine commercial viability, as well as to plan potential future completion and production facilities.
Expro's Express and ELSA in-riser electro hydraulic landing string system will allow the safe installation of all of Husky's subsea completion operations from the assigned DP drilling rig guaranteeing fast and secure well isolation and system disconnect during the critical well clean-up operations and completion deployment.
Peter Quiatkowski, JV General Manager, said, "An award of this size demonstrates the combined strength that Expro and COSL bring to the market. The joint venture is well equipped to meet the challenge and this contract is evidence of our capacity to deliver specialist services and provide the most accurate and reliable results."
Graham Cheyne, Expro's subsea sales director, said, "This is the first deployment of Expro's large bore electro-hydraulic landing string systems in Asia and the first deepwater subsea development in China. This clearly shows our position as deepwater players in China and will further develop Expro's commitment to working with Chinese nationals and enhance our relationship with our joint venture company."
EnQuest Seeks Tax Allowances to Develop Small Oilfields
EnQuest Seeks Tax Allowances to Develop Small Oilfields
Tuesday, April 05, 2011
Dow Jones Newswires
Tuesday, April 05, 2011
Dow Jones Newswires
by Iain Packham
EnQuest will look into developing small, so far commercially unviable, oil and gas fields in the North Sea if the U.K. government offers incentives to offset the U.K. tax hike on oil production, Chief Executive Amjad Bseisu said Tuesday.
Bseisu told journalists on a conference call that the firm is discussing the matter with the government, but didn't go into further detail.
EnQuest will continue to study options outside of the U.K. if the tax regime here isn't palatable, he said.
Bseisu said that one positive effect from the tax hike is that other companies are looking to sell their U.K. North Sea assets. Prices--especially where large amounts of capital are required for development --have fallen in the last few weeks, he noted.
"We will continue to look at acquisitions in the U.K. and I think we will be able to succeed in acquiring either assets or companies," the CEO said. EnQuest doesn't have any specific targets as yet, but is examining opportunities and has a lot of firepower, he added.
Bseisu said the firm has "cash flow of several hundred million and credit lines of several hundred million," and so could manage an acquisition in the half billion-to-billion dollar range quite easily.
The group's 2010 pretax profit soared to $55.8 million, from $11.0 million in 2009 and revenue rose to $583.5 million from $234.0 million, as oil and gas prices and oil and gas production levels rose significantly.
The company has raised its 2011 production target by 26% to 26,500 barrels of oil equivalent a day, after 2010 pro forma average production increased 55% to 21,074 BOE/D. Bseisu said he is confident of meeting the 2011 target organically.
EnQuest's proven-plus-probable reserves rose around 10% to 88.5 million barrels of oil equivalent.
The company has earmarked around $300 million for capital expenditure in 2011, with $250 million to go on development drilling and facilities and $50 million on exploration and appraisal. In 2010, capital expenditure was around $196.3 million on a pro forma basis.
At the end of 2010, the company had net cash of $41.4 million, after repaying $88.8 million of net debt.
Bseisu told journalists on a conference call that the firm is discussing the matter with the government, but didn't go into further detail.
EnQuest will continue to study options outside of the U.K. if the tax regime here isn't palatable, he said.
Bseisu said that one positive effect from the tax hike is that other companies are looking to sell their U.K. North Sea assets. Prices--especially where large amounts of capital are required for development --have fallen in the last few weeks, he noted.
"We will continue to look at acquisitions in the U.K. and I think we will be able to succeed in acquiring either assets or companies," the CEO said. EnQuest doesn't have any specific targets as yet, but is examining opportunities and has a lot of firepower, he added.
Bseisu said the firm has "cash flow of several hundred million and credit lines of several hundred million," and so could manage an acquisition in the half billion-to-billion dollar range quite easily.
The group's 2010 pretax profit soared to $55.8 million, from $11.0 million in 2009 and revenue rose to $583.5 million from $234.0 million, as oil and gas prices and oil and gas production levels rose significantly.
The company has raised its 2011 production target by 26% to 26,500 barrels of oil equivalent a day, after 2010 pro forma average production increased 55% to 21,074 BOE/D. Bseisu said he is confident of meeting the 2011 target organically.
EnQuest's proven-plus-probable reserves rose around 10% to 88.5 million barrels of oil equivalent.
The company has earmarked around $300 million for capital expenditure in 2011, with $250 million to go on development drilling and facilities and $50 million on exploration and appraisal. In 2010, capital expenditure was around $196.3 million on a pro forma basis.
At the end of 2010, the company had net cash of $41.4 million, after repaying $88.8 million of net debt.
TAG Oil Continues Taranaki Streak with Sidewinder Discovery
TAG Oil Continues Taranaki Streak with Sidewinder Discovery
Tuesday, April 05, 2011
Tuesday, April 05, 2011
TAG Oil Ltd.
TAG Oil reported that the Sidewinder-3 exploration well is confirmed as a light oil and gas discovery, the third discovery made in TAG Oil's 100%-controlled Petroleum Exploration Permit 38748 in the onshore Taranaki Basin, North Island, New Zealand, and the Company's fourth new oil and gas discovery in five months.
The Sidewinder-3 exploration well was drilled to a total depth of 2160 meters (7087 feet), targeting a large anomaly identified on 3-D seismic, approximately 1.1 Km to the south of the recent Sidewinder-1 and Sidewinder-2 discoveries. Sidewinder-3 encountered 15.4 meters (50 feet) of net oil-and-gas-bearing sandstones in the primary Sidewinder zone, including "free oil" observed over the shakers during the drilling operation.
"This is our third successful Sidewinder well, with each new well helping us to more accurately calibrate our 3-D data set, and further understand the geology in this lightly-explored acreage." Drew Cadenhead, TAG Oil COO commented. "Of particular interest, the Sidewinder-3 well has shown the Mt. Messenger Formation reservoir sands extend significantly to the south of the original Sidewinder discoveries, and hydrocarbons appear to have migrated into all potentially producing sands encountered to date. The size and scope of the discovery area is potentially much larger than originally anticipated, and bodes well for both near term development and future exploration."
The three Sidewinder discovery wells are part of TAG Oil's ongoing exploration drilling campaign that commenced in Petroleum Exploration Permit 38748 in February 2011 following the Sidewinder-1 discovery. Sidewinder-1 flow tested at stabilized rates of 8.5 million cubic feet of gas plus 44 barrels of oil per day for a total of 1461 barrels of oil equivalent ("BOE") per day with no water.
Garth Johnson, TAG Oil CEO commented. "Once flow testing of all new Sidewinder wells is complete, we can better assess the magnitude of these discoveries. Given the encouraging results achieved to date we are expanding the throughput capabilities of the Sidewinder Production Station to accommodate more production than we initially anticipated. Our immediate focus remains on building cash flow and reserves associated with these discoveries."
TAG Oil will immediately proceed to drill the Sidewinder-4 exploration well, which will also target the Mt. Messenger Formation sandstones approximately 1 Km to the east of the Sidewinder-1 well.
The Sidewinder-3 exploration well was drilled to a total depth of 2160 meters (7087 feet), targeting a large anomaly identified on 3-D seismic, approximately 1.1 Km to the south of the recent Sidewinder-1 and Sidewinder-2 discoveries. Sidewinder-3 encountered 15.4 meters (50 feet) of net oil-and-gas-bearing sandstones in the primary Sidewinder zone, including "free oil" observed over the shakers during the drilling operation.
"This is our third successful Sidewinder well, with each new well helping us to more accurately calibrate our 3-D data set, and further understand the geology in this lightly-explored acreage." Drew Cadenhead, TAG Oil COO commented. "Of particular interest, the Sidewinder-3 well has shown the Mt. Messenger Formation reservoir sands extend significantly to the south of the original Sidewinder discoveries, and hydrocarbons appear to have migrated into all potentially producing sands encountered to date. The size and scope of the discovery area is potentially much larger than originally anticipated, and bodes well for both near term development and future exploration."
The three Sidewinder discovery wells are part of TAG Oil's ongoing exploration drilling campaign that commenced in Petroleum Exploration Permit 38748 in February 2011 following the Sidewinder-1 discovery. Sidewinder-1 flow tested at stabilized rates of 8.5 million cubic feet of gas plus 44 barrels of oil per day for a total of 1461 barrels of oil equivalent ("BOE") per day with no water.
Garth Johnson, TAG Oil CEO commented. "Once flow testing of all new Sidewinder wells is complete, we can better assess the magnitude of these discoveries. Given the encouraging results achieved to date we are expanding the throughput capabilities of the Sidewinder Production Station to accommodate more production than we initially anticipated. Our immediate focus remains on building cash flow and reserves associated with these discoveries."
TAG Oil will immediately proceed to drill the Sidewinder-4 exploration well, which will also target the Mt. Messenger Formation sandstones approximately 1 Km to the east of the Sidewinder-1 well.
Shell to Take Reins Offshore Sicily
Shell to Take Reins Offshore Sicily
Tuesday, April 05, 2011
Northern Petroleum plc
Northern announced that Northern Petroleum (UK) Limited ("NPUK") has applied to the Italian authorities for the transfer to Shell Italia E&P S.p.A ("Shell") the role of Rappresentante Unico ("Operator") for six permits offshore west of Sicily; G.R17.NP, G.R18.NP, G.R19.NP, G.R20.NP, G.R21.NP and G.R22.NP, located in the thrust and fold belt to the west of Sicily. The transfer would enable
Shell to progress work required to apply for drilling approvals in advance of the final decision as to whether an exploration well is to be drilled in the permits. The joint venture is currently finalizing the subsurface evaluation.
Northern has acted as Operator of the permits during the 2D and 3D seismic phases of the exploration program, the costs of which were met by Shell. Under the terms of the farm-in agreement Shell holds 55% in G.R17.NP, G.R18.NP, G.R19.NP and 70% in G.R20.NP, G.R21.NP and G.R22.NP, with NPUK holding the remaining equity interest in the permits.
Tuesday, April 05, 2011
Northern Petroleum plc
Northern announced that Northern Petroleum (UK) Limited ("NPUK") has applied to the Italian authorities for the transfer to Shell Italia E&P S.p.A ("Shell") the role of Rappresentante Unico ("Operator") for six permits offshore west of Sicily; G.R17.NP, G.R18.NP, G.R19.NP, G.R20.NP, G.R21.NP and G.R22.NP, located in the thrust and fold belt to the west of Sicily. The transfer would enable
Shell to progress work required to apply for drilling approvals in advance of the final decision as to whether an exploration well is to be drilled in the permits. The joint venture is currently finalizing the subsurface evaluation.
Northern has acted as Operator of the permits during the 2D and 3D seismic phases of the exploration program, the costs of which were met by Shell. Under the terms of the farm-in agreement Shell holds 55% in G.R17.NP, G.R18.NP, G.R19.NP and 70% in G.R20.NP, G.R21.NP and G.R22.NP, with NPUK holding the remaining equity interest in the permits.
Dominion Receives Block Extension Offshore Tanzania
Dominion Receives Block Extension Offshore Tanzania
Tuesday, April 05, 2011
Dominion Petroleum Ltd.
Dominion has been granted a 1 year extension to the Initial Exploration Period for its deepwater Block 7 by the United Republic of Tanzania's Ministry of Energy and Minerals.
The extension to the current period removes any obligation for the company to relinquish any portion of Block 7 until May of next year, providing Dominion with much more time to more fully evaluate the acreage before a mandatory 50% relinquishment at the close of the Initial Period.
Late last year, Dominion acquired a 3-D seismic survey on Block 7 and is presently processing these data in full while interpreting the "Fast Track" volume; the survey was initially focused on the Alpha prospect.
However, the "Fast Track" volume has led to the identification of numerous other prospects of similar scale to Alpha and final processing for the survey is likely to be completed in early May. The company may acquire new 2D, or additional 3D, data this year in the block to mature some of the additional leads and prospects identified since last year's competent persons report (CPR).
A competent persons report (CPR) prepared, in September 2010, by Energy Resource Consultants Ltd confirmed a mean prospective resource of 7Tcf of natural gas, or 1.1 billion barrels of oil, for the Alpha prospect alone. The 3D and recent drilling results in the area have positively impacted the prospectivity of Block 7 in a material way.
In granting the extension, the Ministry noted Dominion's good working track record in Tanzania. The additional time means that Dominion can continue to assess the whole of block, and possibly acquire more data, to better decide how to proceed toward drilling.
Andrew Cochran, Chief Executive of Dominion Petroleum, commented, "We thank the Government of Tanzania for granting us this extension. It is a validation of the technical work we have done to date and reflects the huge scale in terms of prospectivity that Block 7 represents.
"The extension of the license will allow us to better formulate plans on a drilling program for our deepwater East Africa portfolio in 2012. As the area becomes more and more competitive by the day our position becomes more and more strategic."
Tuesday, April 05, 2011
Dominion Petroleum Ltd.
Dominion has been granted a 1 year extension to the Initial Exploration Period for its deepwater Block 7 by the United Republic of Tanzania's Ministry of Energy and Minerals.
The extension to the current period removes any obligation for the company to relinquish any portion of Block 7 until May of next year, providing Dominion with much more time to more fully evaluate the acreage before a mandatory 50% relinquishment at the close of the Initial Period.
Late last year, Dominion acquired a 3-D seismic survey on Block 7 and is presently processing these data in full while interpreting the "Fast Track" volume; the survey was initially focused on the Alpha prospect.
However, the "Fast Track" volume has led to the identification of numerous other prospects of similar scale to Alpha and final processing for the survey is likely to be completed in early May. The company may acquire new 2D, or additional 3D, data this year in the block to mature some of the additional leads and prospects identified since last year's competent persons report (CPR).
A competent persons report (CPR) prepared, in September 2010, by Energy Resource Consultants Ltd confirmed a mean prospective resource of 7Tcf of natural gas, or 1.1 billion barrels of oil, for the Alpha prospect alone. The 3D and recent drilling results in the area have positively impacted the prospectivity of Block 7 in a material way.
In granting the extension, the Ministry noted Dominion's good working track record in Tanzania. The additional time means that Dominion can continue to assess the whole of block, and possibly acquire more data, to better decide how to proceed toward drilling.
Andrew Cochran, Chief Executive of Dominion Petroleum, commented, "We thank the Government of Tanzania for granting us this extension. It is a validation of the technical work we have done to date and reflects the huge scale in terms of prospectivity that Block 7 represents.
"The extension of the license will allow us to better formulate plans on a drilling program for our deepwater East Africa portfolio in 2012. As the area becomes more and more competitive by the day our position becomes more and more strategic."
Cue Commences Seismic Surveys in Taranaki Basin
Cue Commences Seismic Surveys in Taranaki Basin
Tuesday, April 05, 2011
Cue Energy Resources Ltd.
Cue announced that acquisition of the Te Whatu and Pungarehu 2D Seismic Surveys has commenced in permits PEP 51313 and PEP 51149 in the Taranaki Basin of New Zealand.
The Te Whatu survey comprises 636 km of 2D seismic data and is being acquired with the Seabird Exploration vessel M/V Aquila Explorer. The survey acquisition is expected to take approximately 14 days to record subject to weather.
The Pungarehu survey comprises 150 km of conventional 2D marine data, 29 km of conventional land data and 60 km of shallow water "transition zone" data. The survey acquisition is expected to take approximately 14 days to record subject to weather.
Participants in PEP 51313 are:
Tuesday, April 05, 2011
Cue Energy Resources Ltd.
Cue announced that acquisition of the Te Whatu and Pungarehu 2D Seismic Surveys has commenced in permits PEP 51313 and PEP 51149 in the Taranaki Basin of New Zealand.
The Te Whatu survey comprises 636 km of 2D seismic data and is being acquired with the Seabird Exploration vessel M/V Aquila Explorer. The survey acquisition is expected to take approximately 14 days to record subject to weather.
The Pungarehu survey comprises 150 km of conventional 2D marine data, 29 km of conventional land data and 60 km of shallow water "transition zone" data. The survey acquisition is expected to take approximately 14 days to record subject to weather.
Participants in PEP 51313 are:
- Cue Taranaki Pty Ltd 20%
- Todd Exploration Limited 50% (Operator)
- Horizon Oil (New Zealand) Limited 30%
- Cue Taranaki Pty Ltd 20%
- Todd Exploration Limited 61.425% (Operator)
- AGL Energy Limited 18.575%
ShaMaran Kicks Offs Kurdistan Drilling Ops
ShaMaran Kicks Offs Kurdistan Drilling Ops
Tuesday, April 05, 2011
ShaMaran Petroleum Corp.
ShaMaran announced that drilling of the Pulkhana-9 appraisal/development well in the Pulkhana oilfield commenced on April 3, 2011.
The Company has contracted an alternative drilling rig (Sakson 101) to the originally agreed Sakson PR3 rig as there was a delay in the release of the Sakson PR3 rig by the previous operator. The Pulkhana-9 well is designed to appraise the proven Euphrates/Jaddala and Shiranish oil reservoirs as well as appraise possible upside in the Jeribe and Lower Jaddala formations. The well is planned to be drilled to a total depth ("TD") of 2700m and is estimated to take approximately 90 days.
ShaMaran is currently tendering for a workover rig for the planned third quarter workover of Pulkhana-8 and at the same time progressing with a feasibility study and design for the Pulkhana Early Production Facility ("EPF") which is planned to be installed by the end of the year. ShaMaran has also received Ministry of Natural Resources ("MNR") approval for an additional appraisal well, Pulkhana-10.
ShaMaran also provided the following operational updates.
Arbat: Following completion of seismic interpretation the Company has received MNR approval for the location of the first commitment exploration well (designated Arbat-A). Tendering and preparations are underway to enable drilling to commence in the fourth quarter of this year.
Atrush: The Atrush-1 well reached a revised extended TD of 3400m on January 21, 2011 and has entered into an extensive testing programme. Well test results will be reported shortly by General Exploration Partners, Inc ("GEP"), once testing operations are concluded. The well is being operated by GEP. ShaMaran, through its wholly owned subsidiary, ShaMaran Ventures BV, holds a one third interest in GEP.
Block K 42: The Company has completed its obligations under the "Block K 42 Option Agreement" with the Kurdistan Regional Government of Iraq ("KRG") and intends to apply to the KRG to convert the Option Agreement into a Production Sharing Contract.
Tuesday, April 05, 2011
ShaMaran Petroleum Corp.
ShaMaran announced that drilling of the Pulkhana-9 appraisal/development well in the Pulkhana oilfield commenced on April 3, 2011.
The Company has contracted an alternative drilling rig (Sakson 101) to the originally agreed Sakson PR3 rig as there was a delay in the release of the Sakson PR3 rig by the previous operator. The Pulkhana-9 well is designed to appraise the proven Euphrates/Jaddala and Shiranish oil reservoirs as well as appraise possible upside in the Jeribe and Lower Jaddala formations. The well is planned to be drilled to a total depth ("TD") of 2700m and is estimated to take approximately 90 days.
ShaMaran is currently tendering for a workover rig for the planned third quarter workover of Pulkhana-8 and at the same time progressing with a feasibility study and design for the Pulkhana Early Production Facility ("EPF") which is planned to be installed by the end of the year. ShaMaran has also received Ministry of Natural Resources ("MNR") approval for an additional appraisal well, Pulkhana-10.
ShaMaran also provided the following operational updates.
Arbat: Following completion of seismic interpretation the Company has received MNR approval for the location of the first commitment exploration well (designated Arbat-A). Tendering and preparations are underway to enable drilling to commence in the fourth quarter of this year.
Atrush: The Atrush-1 well reached a revised extended TD of 3400m on January 21, 2011 and has entered into an extensive testing programme. Well test results will be reported shortly by General Exploration Partners, Inc ("GEP"), once testing operations are concluded. The well is being operated by GEP. ShaMaran, through its wholly owned subsidiary, ShaMaran Ventures BV, holds a one third interest in GEP.
Block K 42: The Company has completed its obligations under the "Block K 42 Option Agreement" with the Kurdistan Regional Government of Iraq ("KRG") and intends to apply to the KRG to convert the Option Agreement into a Production Sharing Contract.
Technip Lands EPIC Contract for Clipper South Development
Technip Lands EPIC Contract for Clipper South Development
Tuesday, April 05, 2011
Tuesday, April 05, 2011
Technip
Technip was awarded a full EPIC contract by RWE Dea, for the Clipper South gas field development in the North Sea. The field is located 70 kilometers North-east of the Bacton gas terminal in 25 meters of water.
The contract covers full project management, detailed pipeline design, installation and tie-in of a 15.5 kilometer 12" production line and 3" methanol piggyback line from the new Clipper South platform to the existing LOGGS (Lincolnshire Offshore Gas Gathering system) platform.
The contract builds on past experience with RWE: in 2008 Technip provided pipelay and umbilical installation for the Topaz field development, located in the Southern gas basin.
Technip's operating center in Aberdeen (Scotland) will execute this contract, which is scheduled to be completed in the fourth quarter of 2011. Genesis – a Technip Group company providing upstream oil and gas consultancy services – will also play a part in executing the contract through the provision of detailed pipeline design. Vessels from the Technip fleet will be used for the offshore installation campaign.
The contract covers full project management, detailed pipeline design, installation and tie-in of a 15.5 kilometer 12" production line and 3" methanol piggyback line from the new Clipper South platform to the existing LOGGS (Lincolnshire Offshore Gas Gathering system) platform.
The contract builds on past experience with RWE: in 2008 Technip provided pipelay and umbilical installation for the Topaz field development, located in the Southern gas basin.
Technip's operating center in Aberdeen (Scotland) will execute this contract, which is scheduled to be completed in the fourth quarter of 2011. Genesis – a Technip Group company providing upstream oil and gas consultancy services – will also play a part in executing the contract through the provision of detailed pipeline design. Vessels from the Technip fleet will be used for the offshore installation campaign.
Leed Halts Production at GOM Platforms
Leed Halts Production at GOM Platforms
Tuesday, April 05, 2011
Tuesday, April 05, 2011
Leni Gas & Oil plc
Leni Gas & Oil announced potential short-term impacts following the recent announcements by Leed Petroleum plc ("Leed").
Leed has notified the Company that with immediate effect it has temporarily suspended production from the Eugene Island -184 ("EI-184") and Ship Shoal-201 ("SS-201") platforms where LGO has interests in the Gulf of Mexico. This follows the decision of Leed's Board of Directors to cease business operations at the end of March. LGO holds net royalty interests in the EI-184 development ranging from 2.50540% to 6.04167% and receives a 0.4714% overriding royalty interest from SS-201. Leed has indicated that these suspensions are expected to be temporary and will be reviewed once their principle creditor, UniCredit Bank AG ("UniCredit"), has appointed a receiver.
Production from EI-184 has been seriously constrained during 2011 awaiting the planned recompletion of the A-8 well and consequently the present shut-in has only marginal impact on the Company's financial projections for 2011. The longer term impact is considered to be a deferral of production which is expected to be restored with reserves recovered at a later date.
The Company continues to monitor the situation closely and has notified Leed and UniCredit of its wish to see production operations restored without delay.
Leed has notified the Company that with immediate effect it has temporarily suspended production from the Eugene Island -184 ("EI-184") and Ship Shoal-201 ("SS-201") platforms where LGO has interests in the Gulf of Mexico. This follows the decision of Leed's Board of Directors to cease business operations at the end of March. LGO holds net royalty interests in the EI-184 development ranging from 2.50540% to 6.04167% and receives a 0.4714% overriding royalty interest from SS-201. Leed has indicated that these suspensions are expected to be temporary and will be reviewed once their principle creditor, UniCredit Bank AG ("UniCredit"), has appointed a receiver.
Production from EI-184 has been seriously constrained during 2011 awaiting the planned recompletion of the A-8 well and consequently the present shut-in has only marginal impact on the Company's financial projections for 2011. The longer term impact is considered to be a deferral of production which is expected to be restored with reserves recovered at a later date.
The Company continues to monitor the situation closely and has notified Leed and UniCredit of its wish to see production operations restored without delay.
Wood Group Awarded Services Agreement for Brownfield Project
Wood Group Awarded Services Agreement for Brownfield Project
Tuesday, April 05, 2011
Tuesday, April 05, 2011
Wood Group
Wood Group has been awarded a non-exclusive major services agreement by Woodside Energy Limited for brownfield project delivery for a number of Woodside's onshore and offshore facilities.
The services comprise a wide range of engineering, from studies and concept, through to design and implementation for Woodside's Production Project Group (PPG). The contract has an initial three-year term with three one-year extension options.
This award builds on Wood Group's recent success in November 2010 when the Group secured a separate three-year engineering services agreement with Woodside's Projects Development Group.
"We are delighted to have been awarded this contract by Woodside, as it provides the opportunity to further expand our delivery of engineering and implementation services to Woodside, the largest oil and gas operator in Western Australia," said Les Thomas, Board director responsible for Wood Group's Production Facilities business. "These awards further endorse Wood Group's strategic intent for continued expansion in Australia."
The services comprise a wide range of engineering, from studies and concept, through to design and implementation for Woodside's Production Project Group (PPG). The contract has an initial three-year term with three one-year extension options.
This award builds on Wood Group's recent success in November 2010 when the Group secured a separate three-year engineering services agreement with Woodside's Projects Development Group.
"We are delighted to have been awarded this contract by Woodside, as it provides the opportunity to further expand our delivery of engineering and implementation services to Woodside, the largest oil and gas operator in Western Australia," said Les Thomas, Board director responsible for Wood Group's Production Facilities business. "These awards further endorse Wood Group's strategic intent for continued expansion in Australia."
Matra Commences Production in Russia
Matra Commences Production in Russia
Tuesday, April 05, 2011
Tuesday, April 05, 2011
Matra Petroleum plc
Matra announced that production has commenced from both existing wells in the Sokolovskoe Field, Russia.
Neither well has yet stabilized and as expected both will require acid stimulation and/or pump installation to maximize production rates. Well -13 is currently producing approximately 65 bopd and well-12 approximately 100-150bopd, although both well rates are fluctuating significantly and have not yet unloaded residual mud and completion fluids from the wellbore. In total over 2,000 bbls of oil have been produced from the wells and oil sales are being made on a regular basis.
Attempts to stabilize flow rates are being made before conducting the pressure surveys which will enable us to estimate the capability of the wells after acidization and/or pump installation. It is notable that neither well has yet produced any formation water.
Pressure surveys and analysis will occur during the next two weeks and a plan to maximize production rates will follow.
The weather in Orenburg has been a little unusual this year with some late heavy snowfalls which have delayed demobilization of the side-track rig. The main thaw has now begun and heavy load transportation will be limited during April whilst the snow melts and clears.
Matra's Managing Director, Peter Hind commented, "Well-12 side-track is producing at broadly similar rates to the original hole prior to acidising and the data from forthcoming pressure surveys should allow us to confirm the potential to improve production substantially. Whilst it is not possible to comment on ultimate production rates at this stage, the original well demonstrated an eight-to-ten fold improvement after acid.
"It is encouraging that the water appears to have been isolated, by remedial cementation, in well-13 and it was anticipated that this procedure would also damage the oil reservoir.
Pressure data acquisition will again allow us to estimate likely rate improvements.
"We are currently planning to mobilize a coiled tubing unit to the well sites to ensure the proper clean up and to undertake acidization as appropriate. This work will commence once the road restrictions associated with the annual thaw are removed. Until that time data acquisition and oil production/sales will continue."
Neither well has yet stabilized and as expected both will require acid stimulation and/or pump installation to maximize production rates. Well -13 is currently producing approximately 65 bopd and well-12 approximately 100-150bopd, although both well rates are fluctuating significantly and have not yet unloaded residual mud and completion fluids from the wellbore. In total over 2,000 bbls of oil have been produced from the wells and oil sales are being made on a regular basis.
Attempts to stabilize flow rates are being made before conducting the pressure surveys which will enable us to estimate the capability of the wells after acidization and/or pump installation. It is notable that neither well has yet produced any formation water.
Pressure surveys and analysis will occur during the next two weeks and a plan to maximize production rates will follow.
The weather in Orenburg has been a little unusual this year with some late heavy snowfalls which have delayed demobilization of the side-track rig. The main thaw has now begun and heavy load transportation will be limited during April whilst the snow melts and clears.
Matra's Managing Director, Peter Hind commented, "Well-12 side-track is producing at broadly similar rates to the original hole prior to acidising and the data from forthcoming pressure surveys should allow us to confirm the potential to improve production substantially. Whilst it is not possible to comment on ultimate production rates at this stage, the original well demonstrated an eight-to-ten fold improvement after acid.
"It is encouraging that the water appears to have been isolated, by remedial cementation, in well-13 and it was anticipated that this procedure would also damage the oil reservoir.
Pressure data acquisition will again allow us to estimate likely rate improvements.
"We are currently planning to mobilize a coiled tubing unit to the well sites to ensure the proper clean up and to undertake acidization as appropriate. This work will commence once the road restrictions associated with the annual thaw are removed. Until that time data acquisition and oil production/sales will continue."
Greka Drilling Adds 25 Rigs to Fleet
Greka Drilling Adds 25 Rigs to Fleet
Tuesday, April 05, 2011
Tuesday, April 05, 2011
Greka Drilling Ltd.
Greka Drilling announced the order of 25 specialized Coal Bed Methane ("CBM") drilling rigs with an additional 125 on option. This will increase the Greka Drilling fleet from seven to thirty-two rigs.
Greka has entered into a contractual agreement with Drillmec, a wholly owned subsidiary of the Trevi Group for the construction and delivery of the rigs. The first rig will be ready for shipment in July and is expected to be commissioned on site in September, followed by an additional four rigs every month from November until the initial order of twenty-five is complete. Once the deliveries begin, one rig is to be commissioned per week until
completion of the current confirmed order. The purchase price for the initial 25 rigs is US $39.25 million (excluding ancillary equipment). The contract contains an option for an additional 125 rigs and provides the flexibility to order larger capacity rigs at the discretion of Greka Drilling. The option is contracted on the same terms as the initial order, adjusted for inflation.
All of the new drilling rigs will be dedicated to production drilling at Shizhuang South (GSS) in Shanxi Province, China, through a recently awarded contract from Green Dragon Gas to drill in excess of 100 wells (vertical and horizontal) in the initial phase.
Greka Drilling will enhance the capability of its existing Schramm rigs currently configured to drill vertical wells to SIS which will take the current number of rigs drilling SIS wells by year-end to 16, accounting for some of the new deliveries. Conversion of the existing Schramm rigs is expected to be completed by July. The Company will outsource some of its contracted simpler vertical wells to third party contractors so as to complete the targeted SIS wells by year-end.
It is expected that following the delivery of the new Drillmec rigs which will be dedicated to production drilling at GSS, the current Schramm rigs will move to exploration drilling in the other blocks operated by Green Dragon and other potential customers throughout China.
The focus on production drilling will also enable Greka Drilling to increase profitability via improved rig utilization rates. The production drilling process is substantially quicker than exploration drilling, where the Company's drilling fleet is dedicated to drilling in several unique locations collecting geological data and sub-surface knowledge.
The improved efficiencies in production drilling come from lower average drilling and mobilization/demobilization times and economies of scale derived from all of the rigs operating in the same area with a common drilling objective. The production drilling fleet is to be controlled via digital feeds to the Company's central SCADA operation control center in Zhengzhou, where the skilled supervision team controls the execution and performance.
Greka Drilling has a significant first mover advantage in the application of specialist Surface to Inseam (SIS) horizontal drilling methodology in the exploitation of CBM in China. Greka has developed its SIS methodology through continuous SIS drilling since March 2008.
Randeep Grewal, Chairman and Chief Executive of Greka Drilling Ltd, commented, "We are delighted to have concluded this vital decision and contract. Our selection process has been rigorous and the final contract awarded is testament to the strict standards and demands by which we have modeled our exponentially growing business. Greka Drilling worked very closely with Drillmec to design the rigs to a unique specification which met our particular needs rather than acquiring a generic design which will provide the maximum efficiency in capital deployed and operational functionality in the field. We have been pleased with the flexibility demonstrated by Drillmec through the process to date and look forward to a long term mutually rewarding relationship with the Trevi Group.
Importantly the new fleet has characteristics that are totally new to China and which will pioneer the approach to drilling CBM wells. Currently Greka Drilling's existing fleet drills to measured depths of 1500 meters with crews of five. The new Drillmec fleet with the available options can take us to measured depths of 5000 meters with crews of two in a fully automated and centrally controlled fleet. This will allow us to drill for customers focused on unconventional gas including CBM and shale.
The acquisition of these advanced next generation rigs will also increase utilization rates significantly for the Company, enhancing efficiency. It will also enable Greka to continue to play a core role in China's strategy to explore and exploit its large market needed unconventional gas resources in full."
Greka has entered into a contractual agreement with Drillmec, a wholly owned subsidiary of the Trevi Group for the construction and delivery of the rigs. The first rig will be ready for shipment in July and is expected to be commissioned on site in September, followed by an additional four rigs every month from November until the initial order of twenty-five is complete. Once the deliveries begin, one rig is to be commissioned per week until
completion of the current confirmed order. The purchase price for the initial 25 rigs is US $39.25 million (excluding ancillary equipment). The contract contains an option for an additional 125 rigs and provides the flexibility to order larger capacity rigs at the discretion of Greka Drilling. The option is contracted on the same terms as the initial order, adjusted for inflation.
All of the new drilling rigs will be dedicated to production drilling at Shizhuang South (GSS) in Shanxi Province, China, through a recently awarded contract from Green Dragon Gas to drill in excess of 100 wells (vertical and horizontal) in the initial phase.
Greka Drilling will enhance the capability of its existing Schramm rigs currently configured to drill vertical wells to SIS which will take the current number of rigs drilling SIS wells by year-end to 16, accounting for some of the new deliveries. Conversion of the existing Schramm rigs is expected to be completed by July. The Company will outsource some of its contracted simpler vertical wells to third party contractors so as to complete the targeted SIS wells by year-end.
It is expected that following the delivery of the new Drillmec rigs which will be dedicated to production drilling at GSS, the current Schramm rigs will move to exploration drilling in the other blocks operated by Green Dragon and other potential customers throughout China.
The focus on production drilling will also enable Greka Drilling to increase profitability via improved rig utilization rates. The production drilling process is substantially quicker than exploration drilling, where the Company's drilling fleet is dedicated to drilling in several unique locations collecting geological data and sub-surface knowledge.
The improved efficiencies in production drilling come from lower average drilling and mobilization/demobilization times and economies of scale derived from all of the rigs operating in the same area with a common drilling objective. The production drilling fleet is to be controlled via digital feeds to the Company's central SCADA operation control center in Zhengzhou, where the skilled supervision team controls the execution and performance.
Greka Drilling has a significant first mover advantage in the application of specialist Surface to Inseam (SIS) horizontal drilling methodology in the exploitation of CBM in China. Greka has developed its SIS methodology through continuous SIS drilling since March 2008.
Randeep Grewal, Chairman and Chief Executive of Greka Drilling Ltd, commented, "We are delighted to have concluded this vital decision and contract. Our selection process has been rigorous and the final contract awarded is testament to the strict standards and demands by which we have modeled our exponentially growing business. Greka Drilling worked very closely with Drillmec to design the rigs to a unique specification which met our particular needs rather than acquiring a generic design which will provide the maximum efficiency in capital deployed and operational functionality in the field. We have been pleased with the flexibility demonstrated by Drillmec through the process to date and look forward to a long term mutually rewarding relationship with the Trevi Group.
Importantly the new fleet has characteristics that are totally new to China and which will pioneer the approach to drilling CBM wells. Currently Greka Drilling's existing fleet drills to measured depths of 1500 meters with crews of five. The new Drillmec fleet with the available options can take us to measured depths of 5000 meters with crews of two in a fully automated and centrally controlled fleet. This will allow us to drill for customers focused on unconventional gas including CBM and shale.
The acquisition of these advanced next generation rigs will also increase utilization rates significantly for the Company, enhancing efficiency. It will also enable Greka to continue to play a core role in China's strategy to explore and exploit its large market needed unconventional gas resources in full."
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