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Oil and Gas Energy News Update

Friday, April 8, 2011

Commodity Corner: Oil Hits Another High

Commodity Corner: Oil Hits Another High

Friday, April 08, 2011
Rigzone Staff

Oil Companies to Invest $1.38B in Ecuador

Oil Companies to Invest $1.38B in Ecuador

Friday, April 08, 2011
Dow Jones Newswires

Basic Energy Services Off 31-Month High on Strong Utilization

Basic Energy Services Off 31-Month High on Strong Utilization



Basic Energy Services (BAS) is up after it said late Thursday utilization at its well servicing segment rose 17 percentage points to 70% for March, while truck hours at the fluid services segment increased 19%. These two units accounted for 60% of the company's revenue in Q4.

Earlier, shares reached a 31-month high of $27.90.

Statoil Secures Second GOM Drilling Permit

Statoil Secures Second GOM Drilling Permit

Friday, April 08, 2011
BOEMRE

The Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) approved a deepwater permit for the drilling of a tenth well that complies with rigorous new safety standards implemented in the wake of the Deepwater Horizon explosion and resulting oil spill. This includes satisfying the requirement to demonstrate the capacity to contain a subsea blowout. The approved permit is a revised permit to drill a new well for Statoil Gulf of Mexico LLC Well #1 in Walker Ridge Block 969 in 7,813 feet water depth, approximately 219 miles off the Louisiana shoreline, south of Houma, Louisiana.

"This permit allows the drilling of the tenth deepwater well since industry demonstrated in mid-February that it had the capacity to handle subsea blowouts and spills," said BOEMRE Director Michael R. Bromwich. "Permit applications that satisfy our more rigorous safety and environmental standards and that demonstrate the necessary containment capabilities will be approved; those that do not will be rejected. That has been our approach and will continue to be our approach."

Statoil's Well #1 is a new well. The operator had a rig under contract and an approved permit to drill a new well when activities were halted due to the temporary drilling suspensions imposed following the Deepwater Horizon oil spill.

As part of its approval process, the Bureau reviewed Statoil's containment capability available for the specific well proposed in the permit application. Statoil has contracted with the Marine Well Containment Company (MWCC) to use MWCC's capping stack to stop the flow of oil should a blowout occur. The capabilities of the capping stack meet the requirements that are specific to the characteristics of the proposed well.

BOEMRE has worked diligently to help industry adapt to and comply with new, rigorous safety practices. These standards ensure that oil and gas development continues, while also incorporating key lessons learned from the Deepwater Horizon oil spill. This new permit meets the new safety regulations and information requirements in Notices to Lessees N06 and N10, and the Interim Final Safety Rule.

Murphy Oil climbs after receiving deepwater drilling permit

Murphy Oil climbs after receiving deepwater drilling permit



The Interior Department yesterday granted a deepwater drilling permit to Murphy Oil (MUR) for a sidetrack well, according to a press release issued by the Interior Department's Bureau of Ocean Energy Management, Regulation and Enforcement. A sidetrack well is drilled to a new geologic target or a new location within the original target from the existing wellbore.

The company had a rig on location when drilling preparation activities were halted due to the temporary drilling suspensions imposed following the Deepwater Horizon oil spill. In early afternoon trading, Murphy gained $2.41, or 3.21%, to $77.48.

Eagleford Enters San Miguel Farmout

Eagleford Enters San Miguel Farmout

Friday, April 08, 2011
Eagleford Energy Inc.
 
Eagleford has entered into a Farmout Agreement from surface to the base of the San Miguel formation on the Matthews Lease located in Zavala County, Texas. Under the Farmout, the farmee may spend up to $1,050,000 on exploration and development of the San Miguel formation to earn a maximum of 42.50% working interest (31.875% net revenue interest).

Under the terms of the Farmout, the farmee may earn an initial 25% of the Company's working interest in the San Miguel by paying 100% of the costs to drill, complete, equip and perform an injection on a vertical test well to a depth of approximately 3,500 feet (the "Initial Test Well").

After the performance of the Initial Test Well, the farmee may increase its working interest to 50% of the Company's working interest by spending the entire $1,050,000 on additional operations on the San Miguel in a good faith effort to produce hydrocarbons.

The Company's Matthews and Murphy Leases are situated in northeast Zavala County, Texas, and is part of the Maverick Basin of Southwest Texas, downdip from the United States Geological Studies north boundary of the Smackover-Austin-Eagle Ford total petroleum system. This area is often referred to as the oil window of the present Eagle Ford shale play.

OMV, Partners Get MED Nod for Seismic Acquisition at GSB

OMV, Partners Get MED Nod for Seismic Acquisition at GSB

Friday, April 08, 2011
OMV NZ Ltd.
OMV New Zealand and its Joint Venture partners have confirmed that applications to modify the current work commitments to include the acquisition of 3D seismic data and/or drilling in their Great South Basin exploration permits were approved by MED on March 25, 2011.
The number of commitments in each permit remains the same, as does the decision date for confirmation of the commitments.

"Allowing for either drilling and/or 3D seismic acquisition during the next phase of work gives us greater flexibility as we work through our next steps," Managing Director for OMV New Zealand, Dr Wayne Kirk explained.

"It’s important to note that very little was known about the Great South Basin geology when OMV and its Joint Venture partners were awarded the permits in July 2007."
Since then, the Joint Venture has acquired 16,000 km of 2D seismic data in 2008, plus an additional 2,600 km of 2D seismic data in 2010.

"We’ve now evaluated this data and believe that there are a number of prospective areas which may benefit from 3D seismic definition prior to drilling."

Dr Kirk reiterated that the Joint Venture continues working towards the July 10th decision date, but no final decisions over drilling, 3D seismic or individual license continuations have been made.

If the decision is made to commit to further work, the activity must occur by July 10th 2012.
The Great South Basin permits 50119, 50120 and 50121 are held by OMV NZ Ltd (Operator, 36%), PTTEP NZ Ltd (36%) and Mitsui E & P Australia Pty Ltd (28%).

Harvest Natural Resources Updates 1Q11 Ops

Harvest Natural Resources Updates 1Q11 Ops

Friday, April 08, 2011
Harvest Natural Resources Ltd.

Harvest Natural Resources provided an operational update of its first quarter domestic and international exploration and production activity.
  • Venezuela
    • During the first three months of 2011, Petrodelta drilled and completed four wells and produced approximately 2.6 million barrels of oil (MMBO) for a daily average of approximately 28,700 barrels of oil per day (BOPD), an increase of 32 percent over the same period in 2010;
    • Petrodelta's current production rate is approximately 29,800 BOPD;
    • Petrodelta's first well in the untested Isleno field, ILM-8, was drilled and completed in March 2011 and was tested at 1,800 BOPD. Based on this successful test, Petrodelta will likely drill several additional wells in the Isleno field this year.
  • United States
    • On March 22, 2011, Harvest announced it entered into a definitive agreement with an affiliate of Newfield Exploration Company to sell all of the Company's oil and gas assets in Utah's Uinta Basin for $215 million in cash. The sale has an effective date of March 1, 2011, and closing is expected to occur in May 2011.
  • Indonesia
    • On January 5, 2011, Harvest exercised its right of first refusal to acquire an additional 10 percent equity in the Budong Budong Block PSC bringing its working interest in the block to 64.4 percent.
    • The Lariang LG-1 well was spud on January 6, 2011 in the Budong Budong Block.
    • The well was drilled to a total depth of 5,311 feet and encountered multiple hydrocarbon shows and overpressure in Miocene formations requiring up to 16.5 pound per gallon mud. After encountering difficulty in controlling the well due to high pressures, the well was plugged and abandoned on April 6, 2011.
    • The test confirmed the presence of hydrocarbons as well as the existence of an effective trap and seal in the Lariang sub-basin.
    • The rig is preparing to move to the KD-1 location in the adjacent Karama sub-basin.
  • Gabon
    • The Company plans to spud the first exploration well, the Ruche Marin-A, in late April 2011. Harvest is the operator and will drill the exploration well using Transocean's Sedneth 701 semi-submersible drilling unit.
  • Oman
    • Well planning and procurement of long lead items is planned for the second quarter of 2011 in anticipation of spudding the first of the two exploratory wells in late 2011.
Harvest President and Chief Executive Officer, James A. Edmiston, said, "As expected, 2011 is shaping up to be an exciting year with multiple catalysts for growth to be tested in the coming months. Already, we have seen Petrodelta initiate first production from the Isleno field giving our Venezuelan business another field development opportunity in addition to the Temblador and El Salto field developments."

Edmiston continued, "We remain encouraged by our initial drilling on the Budong Budong Block in Indonesia. Although we were not able to test the primary Eocene target due to high formation pressure and safety reasons, the well confirmed the existence of hydrocarbons within the secondary Miocene target and the effectiveness of the trap and seal given the high pressure gradients. We are now turning our attention to the KD-l well, 50 miles from the LG location, which will test the larger of the two initial structures on the Budong Budong Block to be tested. In Gabon, we will spud the Ruche Marin well later this month with results expected before the end of the second quarter of 2011. In Oman, we are getting underway with well planning and procurement to allow for drilling late this year."

In closing Edmiston added, "The sale of our Utah properties provides the Company with the capital to reduce debt, strengthen its balance sheet and fully fund its growth activities well beyond 2011. This year's exploration program combined with our ongoing strategic evaluation offers our shareholders multiple catalysts for growth throughout the year."

 

VENEZUELA

During the three months ended March 31, 2011, Petrodelta produced approximately 2.6 MMBO for a daily average of 28,700 BOPD, an increase of 32 percent over the same period in 2010 and an increase of 9 percent over the previous quarter. Petrodelta also sold 0.5 billion cubic feet (BCF) of natural gas for a daily average of 5.2 million cubic feet per day (MMCFD), a decrease of 29 percent over the same period in 2010 and an increase of 13 percent over the previous quarter.

During the first quarter of 2011, Petrodelta drilled and completed four wells, three of which were development wells drilled in the Uracoa, El Salto and Temblador fields, and the fourth was the first appraisal well drilled in the untested Isleno field. Currently, Petrodelta is operating two drilling rigs and one workover rig and is continuing with infrastructure enhancement projects in El Salto and Temblador.

Petrodelta's first well in the untested Isleno field, ILM-8, was drilled and completed in mid-March 2011 and was tested at 1,800 BOPD with 2 percent water. The horizontal well was completed in the Lower Oficina Sand of the northern fault block. With an oil gravity of 15.5 API, this crude is of similar quality to that being produced in the Uracoa field, just seven kilometers to the north.

The current production of approximately 1,600 BOPD is being trucked to the Uracoa field, but plans are underway to build a pipeline connection between Isleno and the UM2 main production facility at Uracoa field.

Petrodelta's production target for the year 2011 is projected to be approximately 36,000 BOPD. The 2011 Petrodelta capital budget is expected to be approximately $224 million with a significant portion of that total related to infrastructure costs to support the further development of the Temblador and El Salto fields. This program should be self-funding at a WTI oil price of $70 per barrel in 2011. Petrodelta expects to drill 28 oil wells, two water injector wells and one gas injector well, and the drilling program includes utilizing two rigs to drill both development and appraisal wells for both increasing production capacity and appraising the substantial resource base.

 

UNITED STATES- Antelope Project - Utah

On March 22, 2011, Harvest announced it has entered into a definitive agreement with an affiliate of Newfield Exploration Company to sell all of the Company's oil and gas assets in Utah's Uinta Basin for $215 million in cash. The sale has an effective date of March 1, 2011.

The net proceeds from the sale are estimated to be $205 million after deduction for transaction related costs. Closing is expected to occur in May 2011 and the final sales price is subject to customary adjustments at closing. Land related due diligence and operational transition activities are in progress and on schedule.

The oil and gas assets are located in Harvest's Antelope project area in the Uinta Basin of Utah and consist of approximately 69,000 gross acres (47,600 net acres), seven operated oil wells and 15 non-operated oil wells. Harvest owns a working interest of approximately 70 percent in the Uinta assets. The transaction includes wells operated by both Harvest and Newfield.

This transaction is part of the Company's ongoing process of exploring strategic alternatives announced in September of 2010.

 

EXPLORATION DRILLING ACTIVITIES

Budong Budong PSC - Indonesia

The Lariang LG-1 well, the first of two planned exploration wells, was spud on January 6, 2011 in the Budong Budong Block, West Sulawesi. The well has been drilled to a depth of 5,311 feet and has encountered multiple oil and gas shows within the secondary Miocene objective. Wireline logs and samples of reservoir fluids have confirmed the presence of hydrocarbons, trap and seal thus greatly de-risking the exploration potential of the license. The high formation pressures and control difficulties required the use of more casing strings at shallower depths than were originally planned. At a depth of 5,300 feet, losses of heavy drilling mud into the formation were encountered which, when coupled with the very high formation pressures, led to the decision to discontinue operations and plug and abandon the well for safety reasons. The primary Eocene targets had not yet been reached, as the well was planned for a total measured depth of approximately 7,200 feet.

The drilling rig is currently mobilizing to drill the second exploratory well on the block, the Karama KD-1 prospect, which is located approximately 50 miles south of the LG-1 well.

The KD-1 well will be drilled to a total depth of about 8,100 feet.

 

Dussafu Project - Gabon ("Dussafu PSC")

The Dussafu PSC partners and the Republic of Gabon, represented by the Ministry of Mines, Energy, Petroleum and Hydraulic Resources, entered into the second exploration phase of the Dussafu PSC with an effective date of May 28, 2007. It has been agreed that the second three-year exploration phase will be extended until May 27, 2012, at which time the partners can elect to enter a third exploration phase. Harvest expects to spud the Ruche Marin-A exploration well late April 2011 utilizing the Transocean Sedneth 701 semi-submersible drilling unit on a one well contract. The Company will take possession of the rig mid-April 2011. All critical materials required for drilling the well have been purchased and received.
Harvest has established an operational and logistics base in Port Gentil, Gabon.

The Ruche Marin-A well will be drilled in a water depth of 380 feet to test multiple stacked pre-salt targets to a planned total measured depth of approximately 10,100 feet.

 

Block 64 Gas License - Oman ("Block 64 EPSA")

Block 64 EPSA, also known as Al Ghubar or Qarn Alam, is a newly-created block designated for exploration and production of non-associated gas and condensate which the Oman Ministry of Oil and Gas carved out of the Block 6 Concession operated by Petroleum Development of Oman ("PDO"). The 955,600 acre block is located in the gas and condensate rich Ghaba Salt Basin in close proximity to the Barik, Saih Rawl and Saih Nihayda gas and condensate fields. Harvest has an obligation to drill two wells over a three-year period ending in May 2012 with a funding commitment of $22.0 million. To date, multiple existing 3-D seismic databases have been reprocessed and integrated, and detailed geological and geophysical interpretation is underway to refine the prospects and define drilling locations. Well planning and procurement of long lead items is expected to begin in the second quarter of 2011 in anticipation of spudding the first of the two exploratory wells in late 2011.

Trans Energy Completes Frac Ops at Marcellus Well

Trans Energy Completes Frac Ops at Marcellus Well

Friday, April 08, 2011
Trans Energy Inc.
Trans Energy has turned the Keaton #1H horizontal Marcellus well into a sales line on Monday, April 4.

The Company also announced that it completed the 15 stage hydraulic fracture stimulation on the Groves #1H horizontal Marcellus well in Marshall County, WV, and is currently drilling out the frac plugs and will then run production tubing in the well. The Company expects the Groves #1H to be turned into a sales line by April 22.

The Company also announced that, on March 31, 2011, it completed the sale of 2,950 net acres in its operating areas to its joint development partner, Republic Energy Ventures LLC, for $14,012,500. The Company used $5,000,000 to pay down its existing senior bank indebtedness and the balance for working capital. As part of this transaction, the Company has reached an agreement with its senior secured lender, CIT Capital USA, Inc. ("CIT") for an extension of its existing bank loan until March 31, 2012.

John G. Corp, President of Trans Energy, said, "With the success of our drilling activities in the Marcellus shale we are pleased to have this working capital to complete the funding of our recent drilling activities and to have reached an agreement with CIT for an extension of our senior credit facility. We continue to develop our acreage position in the Marcellus shale and look forward to starting our 2011 drilling program."

American Standard Welcomes Directors to Board

American Standard Welcomes Directors to Board

Friday, April 08, 2011
American Standard Energy Corp.
American Standard announced the appointment of Scott David and William Killian to the Company's Board of Directors as Independent Directors. Messrs. David and Killian bring decades of diverse professional experience to the Board and its committees.

Mr. David has twenty years of experience in the downstream oil industry with Shell Oil Company. With Shell Oil Company he has led large and complex joint venture formation projects and asset portfolio restructuring activities. Mr. David has held management roles in several capacities during his employment at Shell Oil including in Joint Ventures, Business Acquisitions, and Strategy and Portfolio Manager. Mr. David has also served as Member Representative on the Board of several Shell Retail Joint Venture affiliates.

Mr. David holds a Bachelor's of Business Administration in Finance as well as a minor in Information Systems (ISY) from Baylor University. He also holds a Master of Business Administration with a concentration in Finance from St. Mary's University.

Mr. David will also serve on the Nominating and Corporate Governance Committee, the Audit Committee and the Fairness Evaluation Sub-Committee.

William "Bill" Killian's professional managerial experience spans over fifteen years primarily in the waste management industry. Mr. Killian began in the solid waste management industry as Operations Manager before being promoted to General Manager of Laidlaw/Allied Waste in the mid-1990s. His professional roles have included managing hundreds of employees, finance, safety programs, marketing, obtaining financing as well as overseeing and focusing on expanding market share and growth in a competitive market. Mr. Killian currently serves as General Manager of Texas Jack Waste Holdings in Corpus Christi, Texas.

Mr. Killian shall serve on the Compensation Committee and the Nominating and Corporate Governance Committee.

Scott Feldhacker, CEO of American Standard Energy Corp., stated, "We are elated to have the opportunity to add these individuals to our Board of Directors. Each brings over 20 years of experience, running organizations and serving the oil and gas industry at its highest levels. Bringing the highest level of professionalism to our organization, the addition of Scott David and Bill Killian completes our Board of Directors with a majority of Independent Directors."

Messrs. David and Killian join Scott Feldhacker, Richard MacQueen, Randall Capps, James R. Leeton, Jr., and Chairman Robert Thompson on the Board.

CGGVeritas Briefs on Vessel Fleet

CGGVeritas Briefs on Vessel Fleet

Friday, April 08, 2011
CGG Veritas
CGGVeritas provided its vessel utilization and its fleet allocation updates for the first quarter of 2011.
Vessel utilization for the first quarter 2011:
  • The vessel availability rate1 was 81% including 13% for the on-going upgrades of the Master and the Endeavour as part of our performance plan. This compares to a 84% availability rate in the fourth quarter of 2010 and a 90% rate in the first quarter of 2010.
  • The vessel production rate2 was 80% following operational interruptions that resulted from maritime incidents and piracy risks which led to stand-by, additional transit and non-planned shipyards. This compares to a 92% production rate in the fourth quarter of 2010 and a 92% rate in the first quarter of 2010.
Fleet allocation update for the first quarter 2011:
  • During the first quarter of 2011, our 3D vessels were allocated 94% to contract and 6% to multi-client programs.
Multi-client sales for the first quarter 2011:
  • Following very strong seasonal sales in the fourth quarter of 2010, multi-client sales were low this quarter.

Schlumberger Debuts Telemetry-Enabled Slickline Platform

Schlumberger Debuts Telemetry-Enabled Slickline Platform

Friday, April 08, 2011
Schlumberger Ltd.
Schlumberger announced the launch of LIVE digital slickline services. At their core is a slickline cable engineered to deliver two-way digital communication. Coupled with an extensive suite of purpose-built downhole modules, LIVE technology enables tool and well information to be measured and transmitted to surface in real time.

"LIVE digital slickline services enable oil and gas producers to manage well intervention and workover programs with increased knowledge, accuracy and certainty when running slickline," said Claude Durocher, vice president, Schlumberger Slickline Services, which now integrates the Geoservices slickline organization. "While maintaining the benefits of standard slickline simplicity, digital slickline provides a new level of real-time precision and control to an expanded range of services, delivering an increased level of quality, safety and efficiency."
In parallel with LIVE slickline, a number of purpose-built downhole tools have been developed with all data available at surface in real time.

Basic tool measurements include toolstring shock, deviation, movement and head tension. Additional measurements of gamma ray and casing collar location (CCL) enable precise depth correlation relative to reservoir or completion architecture. The option of borehole pressure and temperature measurements is also available.

A surface-controlled interactive jar and tool release device brings precision to any slickline jarring and fishing operation. To complete the digital slickline platform, additional tools have been developed, capitalizing on telemetry functionality and control capabilities. These allow electro-hydraulic explosive-free tool setting, surface-activated perforation control, and complete production logging to be carried out safely and efficiently.

More than 450 field operations have been performed to date in North America, Europe, Africa and Asia in a wide range of well types, fluids and deviations, including borehole temperatures up to 275 deg F, pressures up to 8000 psi and depths down to 16,000 feet.

Crude For May Delivery Approaches $112 A Barrel

Crude For May Delivery Approaches $112 A Barrel



Light crude for May delivery approached the $112 a barrel level, while Brent crude futures rose $1.74 to $124 a barrel.

Buying momentum has continued as hopes fade for a quick resolution of conflicts in Libya. Last week, crude-oil futures traded at $106 a barrel and prices have only climbed since then.

The weakening of the U.S. dollar and uncertainty over a possible U.S. government shutdown helped crude-oil prices increase.

Tudor Pickering Holt analysts said, "Middle East tensions driving further crude-oil gains from these elevated levels will make us incrementally more nervous about energy demand, the economy and inflation."

Niko Drills Ahead at Qara Dagh Well

Niko Drills Ahead at Qara Dagh Well

Friday, April 08, 2011
Groundstar Resources Ltd.
Groundstar provided the following update on the drilling progress of the Qara Dagh - 1 exploration well in Kurdistan, Iraq.

Since the last update on January 14, 2011, the well has drilled to 3,558 meters measured depth ("MD"). Over the past several days, a 7 inch liner has been set and cemented at 3,558 meters in the upper Shiranish formation prior to drilling ahead.

Further drilling in the Shiranish and the Kometan formations is anticipated to a depth of 4,200 meters MD. Increased fluorescence and gas readings were observed.

The interval from 2,522 meters MD to 3,558 meters MD has been logged. Preliminary analysis by Niko Resources, the operator indicates possible prospective pay of up to 143 meters in the lower Tanjero and upper Shiranish formations. The top of the Shiranish formation has been interpreted to be at 3,420 meters.

The operator, Niko, has applied for a one year extension to the first phase of the first exploration period. The Qara Dagh Block is located in the prolific Zagros foldbelt that extends from southern Turkey across northern Iraq and into southwest Iran, which contain giant and supergiant accumulations of hydrocarbons. The large surface structure on the block known as Qara Dagh is a prominent anticline that rises as high as 600 meters above adjacent valley floors. This block, which is 65 kilometers by 5 kilometers, is located 60 kilometers southeast of the Taq Taq oilfield and 60 kilometers east of the giant Kirkuk oilfield, and is adjacent to a Heritage block with a recent oil discovery. Groundstar has a 6% beneficial interest in the Qara Dagh Block.

UK Oil Tax Hike to Benefit Smaller Acquisitive N. Sea Producers

UK Oil Tax Hike to Benefit Smaller Acquisitive N. Sea Producers

Friday, April 08, 2011
Dow Jones Newswires

Phoenix Spuds Well in Atchafalaya Bay

Phoenix Spuds Well in Atchafalaya Bay

Friday, April 08, 2011
Petsec Energy Ltd.
Petsec advised that the Marathon #2 well has been spud in the shallow waters of the Atchafalaya Bay along the Louisiana Gulf Coast, USA. Phoenix Exploration is the operator and the well has spud on 5th April using the Parker 54B drilling rig.

The second Marathon well is a follow up to the successful #1 well which was brought into production in late 2010 and is consistently producing at rates of over 20 million cubic feet of gas and 120 barrels of condensate per day.

The 21,000 feet (6,500 meters) Marathon #2 well is situated in approximately 8 feet (2.4 meters) water depth and is located approximately 900 meters from the #1 well location. The #2 well is designed to serve as a development well for the field as well as to test deeper exploratory reserve potential on the Marathon structure. Drilling operations are expected to take 121 days to reach total depth, log and case. Petsec's estimated net cost to drill, log and case is US $1.3 million.
  • Participating working interests in the well are:
    • Petsec Energy Ltd 8%
    • Phoenix Exploration Company LP (operator) 65%
    • Private Companies 27%

Drilling Commenced at Butlers Appraisal Well

Drilling Commenced at Butlers Appraisal Well

Friday, April 08, 2011
Cooper Energy
Cooper reported that the Butlers-2 appraisal/development well in PEL92 spudded at Friday, April 8, 2011. The current operation is drilling the surface hole.

Butlers-2 is the first appraisal/development well on the Butlers Oil Field and the third well in the current drilling program and follows the recent successes at Parsons-3 and Parsons-4.
Butlers-2 is targeting the Namur oil reservoir and is to be located 0.95km to the northeast of the Butlers-1 discovery well.

The well will be drilled to a total depth of about 1,360 meters and is expected to take 9 days to drill and complete.

The Butlers oil field is currently producing nearly 1,400 barrels of oil per day from the Butlers-1 discovery well in the Namur reservoir. It is expected that additional Butlers development wells will more efficiently develop the field and will accelerate production.

The drilling will be accompanied by an upgrade of the Butlers surface facilities to handle the increased production. Oil production from Butlers is exported via the pipeline to Tantanna.

Magnum Acquires Marcellus O&G Properties

Magnum Acquires Marcellus O&G Properties

Friday, April 08, 2011
Magnum Hunter Resources Corp.
Magnum announced that its wholly-owned subsidiary, Triad Hunter, has executed a definitive agreement and closed on the acquisition of oil and gas properties and leasehold mineral interests located in Wetzel County, West Virginia (the "Marcellus Assets") for a cash purchase price of $20.0 Million.

Magnum Hunter funded the purchase price consideration with existing working capital. Aggregate consideration is subject to certain post closing adjustments based on title, indemnities and other specific matters. The seller is a privately-held independent E&P company.

Mr. Gary C. Evans, Chairman and Chief Executive Officer of Magnum Hunter, commented, "Today's acquisition announcement represents another 'bolt on' acquisition in one of our Company's three liquids rich unconventional resource play regions.

We consider the Marcellus Assets acquired to be accretive to shareholders and will further expand our footprint in West Virginia.

Triad Hunter previously acquired the 50% operated interest associated with these properties in December 2010. Beginning with our entry into the Appalachia with our first acquisition (Triad Hunter) in February 2010, the Company's overall presence in the Appalachian Basin has been steadily increasing.

We plan to continue to be one of the most active drillers in northwestern West Virginia. Furthermore, we have made the financial commitments in the midstream area of gathering and processing to realize the greatest value possible from each molecule of natural gas produced. The Marcellus Assets acquired with this transaction are within close proximity to our Eureka Hunter pipeline system and planned expansions to this system currently in progress."

Carnarvon Boosts Reservoirs in Thai Concessions

Carnarvon Boosts Reservoirs in Thai Concessions

Friday, April 08, 2011
Carnarvon Petroleum Ltd.
Carnarvon announced the results of an independent reserves evaluation of its Thailand concessions as at December 31, 2010.

Carnarvon has a 40% equity interest in the SW1, L33/43 and L44/43 on-shore concessions (Pan Orient Energy Corp. 60%). The reserves estimates data has been certified by international energy consultants Gaffney, Cline and Associates (GCA).

At the end of the calendar year, proved and probable reserves at Carnarvon's Thailand concessions totaled 20.4 million barrels. This comprised proved reserves of 4.7 million barrels plus probable reserves of 15.7 million barrels.

The estimates include new oil field discoveries in 2010 in the Wichian Buri Extension (WBExt) field within the L44/43 concession and the L33 field in the L33/43 concession. The increase in reserves in these fields was offset by a downward revision of previously announced reserves in the NSE Central and NSE-F1 fields within the L44/43 concession. Carnarvon indicated the potential for the downward revision at these two reservoirs in October 2010.
The net present value of proved and probable reserves after tax for the three concessions in Thailand, using forecast oil prices and discounted at 10%, is A$307 million, representing A$0.45 per Carnarvon share, based on the current 687.8 million shares outstanding and an exchange rate of A$1.00 / US $1.04.

CEO Comment

Carnarvon CEO Ted Jacobson said, "These reserves estimates provide us with a much better understanding of this series of oil fields and give us greater confidence in the assessment of remaining oil.

"These are important assets for Carnarvon; they provides us with important cash flow and exploration and appraisal upside whilst enabling us to continuing to focus on upside via exploration and acquisitions in other regions.

"While we expected the revisions in reserves for the NSE Central and NSE-F1 reservoirs, the greater percentage of more conventional sandstone reservoirs means a longer, more consistent and predictable production for Carnarvon moving forward once these sandstone reservoirs have been fully developed.

"We have a long future in this range of assets and are excited about the broader opportunities for Carnarvon that the long term positive cash flows can achieve," said Mr Jacobson.

Texon Turns on Taps at Leighton Olmos Well

Texon Turns on Taps at Leighton Olmos Well

Friday, April 08, 2011
Global Petroleum Ltd.
Texon has advised that that the eighth Leighton Olmos well in which Global has an interest, Peeler #2, has begun to flow oil and gas at the gross rate of 252 boepd from the Olmos reservoir (comprising 192 bopd and 360 mcf of gas per day).

Texon advise that Peeler #2 will be connected to oil tanks and a gas sales pipeline in the next two weeks.

Global has a 15% working interest (11.25% net revenue interest) in the well.

Toyota and Nissan to resume production at 50% of planned volumes

Toyota and Nissan to resume production at 50% of planned volumes



Toyota (TM) and Nissan (NSANY) will each resume production at all of their factories in Japan from mid-to-late April, though output will be at 50% of planned volume. Toyota will restart manufacturing of its entire line-up at its 17 Japan plants from April 18, while Nissan will open its engine plant in Fukushima Prefecture on April 18. Output at all of their facilities in Japan will remain "well below" full capacity for an indefinite period, both companies say.

Chevron Rekindles Old Texas Flame

Chevron Rekindles Old Texas Flame

Friday, April 08, 2011
Dow Jones Newswires

BP, Rosneft Deal Injunction Upheld by Arbitrators

BP, Rosneft Deal Injunction Upheld by Arbitrators

Friday, April 08, 2011
Dow Jones Newswires

Statoil's Sleipner Delineation Delivers Gas Pay

Statoil's Sleipner Delineation Delivers Gas Pay

Friday, April 08, 2011
Norwegian Petroleum Directorate
Statoil, operator of the Sleipner Vest field in production licenses 29 and 46, has completed the delineation of the gas/condensate discovery 15/9-B-1 (Beta Vest).

The discovery was proven during the autumn of 2009 in Middle Jurassic reservoir rocks (the Hugin formation) about 1.5 kilometers west of the Sleipner Vest field and four kilometers from the Sleipner B platform. The 15/9-B-1 discovery well was drilled to the south on the top of the Beta Vest structure and there was uncertainty regarding the distribution of petroleum north and west on the structure. Before the appraisal wells were drilled, the operator's resource estimate for the discovery was between six and ten million standard cubic meters (Sm3) of recoverable oil equivalents.

The purpose of the wells was to delineate the 15/9-B-1 discovery. Three appraisal wells, 15/9-B-8, -8A and -8D, were drilled about two kilometers north of the discovery well. B-8, which was drilled at the bottom of the structure, encountered a 29-mete oil column and a 12-meter gas column in the Hugin formation. B-8A, deeper in the structure, was water-filled. B-8D, towards the top of the structure, encountered a 117-meter gas column in the Hugin formation. Two appraisal wells, 15/9-B-8B and -8C, were drilled in the southern end of the structure near the 15/9-B-1 discovery well. B-8B, near the top of the structure, encountered a 53-meter gas column in the Hugin formation, while B-8C, further down on the structure, was water-filled.

None of the wells were formation-tested, but data acquisition and sampling were conducted. The preliminary size of the discovery has been estimated at 13 million Sm3 recoverable oil equivalents. The gas has a gas/condensate ratio of about 2000 Sm3/Sm3 and a CO2-content of at least 14 per cent, which is higher than in the Sleipner Vest field. The discovery is being prepared for production via the Sleipner Vest field.

Production licenses 29 and 46 were awarded in the 2nd and 3rd licensing rounds in 1969 and 1976, respectively. 15/9-B-8 was drilled to a vertical and measured depth of 4000 and 6692 meters below sea level, respectively, and was terminated in the Skagerrak formation in the Upper Triassic. 15/9-B-8A, -8B, -8C and -8D were drilled to vertical depths of 3899, 3701, 3856 and 3700 meters, respectively, as well as measured depths of 7418, 6417, 7107 and 5724 meters below sea level respectively, and were all terminated in the Hugin formation. Water depth at the site is 108 meters. Four of the wells have been plugged and abandoned, while 15/9-B-8D at the top of the Beta Vest structure will be a development well.

The wells were drilled by the West Epsilon drilling facility, which is connected to the Sleipner B platform. Over the course of the spring, the rig will be demobilized and prepared for drilling development wells at the Gudrun field where Statoil Petroleum AS is the operator.

ATP Gets Go-Ahead to Complete Drilling at GOM Green Canyon Block

ATP Gets Go-Ahead to Complete Drilling at GOM Green Canyon Block

Friday, April 08, 2011
ATP O&G Corp.
ATP has received a permit to complete the previously drilled #2 well at Green Canyon (GC) Block 300 (Clipper) in the deepwater Gulf of Mexico.

"We are pleased that the BOEMRE is confident in ATP's commitment to safe and environmentally sound operations," stated T. Paul Bulmahn, ATP's Chairman and CEO. "The Gulf of Mexico is where we refined our deepwater expertise and we are looking forward to generating further production growth."

The GC 300 #2 well, located in 3,454 feet of water, was sidetracked and encountered a gas reservoir between 15,590 and 15,721 feet total vertical depth in 2006. ATP plans to commence well operations with Diamond Offshore's Ocean Victory in 2011. ATP operates GC 300 with a 55% working interest.

Seadrill Semisub Finally Heads West

Seadrill Semisub Finally Heads West

Friday, April 08, 2011
Seadrill Ltd.
Seadrill has through its affiliate Sea Dragon de Mexico settled the final agreement with Pemex for the provision of the ultra-deepwater semi-submersible drilling rig West Pegasus (previously Seadragon I). The five-year assignment in Mexico has a fixed operating dayrate for the first two years, and the dayrate will be adjusted annually thereafter based on market conditions. Estimated contract value is approximately US $850 million (excluding mobilization fee) assuming a constant dayrate over the five year term.

West Pegasus was recently delivered from the Jurong Shipyard in Singapore and proceeded for mobilization to Mexico on April 1. Commencement of operations is scheduled for the third quarter 2011.

Alf C Thorkildsen, Chief Executive Officer of Seadrill Management said, "This is Seadrill's first assignment for Pemex, and it presents an exciting opportunity to develop a strong relationship with one of the largest national oil companies in the world, as well as strengthening our position in the Gulf of Mexico. This contract further underlines the value of our recent acquisition of the Seadragon units, adding significant earnings visibility at what we believe is competitive terms and conditions."