U.S. Trade Deficit Widens In March, But Exports Hit Record Level

U.S. Trade Deficit Widens In March, But Exports Hit Record Level



May 11, 2011

The international trade deficit in goods and services increased to $48.2 billion in March from a downwardly revised $45.4 billion in February, the Commerce Department reported today.

Economists had expected a deficit of $47.0 billion for the month. Total exports were the highest ever recorded, while imports were the highest since August of 2008.

Exports increased to $172.7 billion from $165.0 billion in February. Exports of Goods were $124.9 billion in March, up from $117.8 billion in February, while services were $47.7 billion, up from $47.2 billion.

Imports increased to $220.8 billion in March from $210.4 billion the previous month. Goods were $187.0 billion, up from $176.9 billion in February, and services were $33.8 billion, up from $33.5.

The trade gap with China actually decreased 4% to $18.1 billion, and the gap with Canada, America's largest trading partner, decreased 7% to $2.8 billion from the month prior, while the deficit with the European Union grew 30% to $9 billion.

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TGS Expands 3D Data Coverage in Moray Firth

TGS Expands 3D Data Coverage in Moray Firth

Thursday, May 12, 2011
TGS-NOPEC Geophysical Co.

TGS commences the second season of multi-client 3D seismic acquisition in the Moray Firth, offshore United Kingdom. The survey, MF11, will add over 2,500 km2 of new 3D data to the previous project area announced last June.

The M/V Oceanic Challenger will acquire the MF11 survey. Data collection is scheduled to be complete by the end of Q3 2011. Data processing will be performed by TGS and will include time processing and depth imaging deliverables.

The survey area covers open and licensed acreage north and east of the previously project, including coverage of the Halibut Horst trend and acreage around the Kildare and Buchan Fields. Upon completion of this newest 3D multi-client project, TGS will have a total of 4,700 km2 of contiguous data in the area. Data from the Moray Firth 2011 survey will be available for customers from Q2 2012. The survey is supported by industry funding.

TGS-NOPEC Geophysical Co. (TGS) provides global geoscience data products and services to the oil and gas industry for the exploration and delineation of hydrocarbon reserves.

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Survey: Energy Execs Bullish on R&D, Capex, Hiring

Survey: Energy Execs Bullish on R&D, Capex, Hiring

Thursday, May 12, 2011
KPMG LLP

Energy executives expect continued volatility in the price-per-barrel of oil for the remainder of the year, with most (64 percent) predicting crude prices to exceed $121 per barrel. The executives also foresee shale oil and gas having a transformative effect on helping to meet the world's energy needs, according to the results of the 9th Annual Energy Survey conducted by the KPMG Global Energy Institute.

In this year's KPMG energy survey, which polled 550 financial executives from global energy companies in April 2011, 32 percent think 2011 U.S. crude oil prices will peak between $121 and $130 per barrel. One-third of executives see even higher prices, with 17 percent of those predicting between $131 and $140 per barrel; nine percent between $141 and $150; and six percent expecting crude prices to exceed $151 per barrel before year end. Only 35 percent think current crude prices are near the high they expect for oil this year, predicting the peak will be between $111 and $120 per barrel.

"While we have seen some very recent declines due to selloffs, these variations reflect persistent instability, and our survey findings confirm that we may have not seen peak levels on crude. Energy leaders tell us continued volatility will be driven by underlying issues such as regulation, geopolitical concerns and supply disruptions, as well as escalating energy demand," said John Kunasek, national leader of the KPMG U.S. energy practice, and executive director for the KPMG Global Energy Institute. "But the good news is that energy executives tell us they are significantly increasing investment in a range of alternative energy sources and see shale factoring strongly into meeting the world's future energy needs."

In fact, 35 percent of the executives surveyed said their company would increase R&D investment in alternative energy projects in 2011, up considerably from 15 percent in KPMG's 2010 survey.

Alternative Energy Sources

Shale gas/oil (44 percent) was most frequently cited by executives as the alternative energy source that will win the most significant investment, with nearly two-thirds (62 percent) expecting shale oil and/or gas to continue to have a transformative impact on meeting the world's energy needs.

Executives also cited solar (31 percent), wind (25 percent), clean coal technologies (17 percent), biodiesel (10 percent), and chemically stored electricity (batteries and fuel cells) (8 percent) as alternative energy sources that would see increased R&D investment.

"What is exciting about these findings is that it demonstrates the industry's intent to explore all options," added Kunasek. "Previously, the executives have pointed to wind and solar as the main investment choices, but this year we have seen a shift. Increased production of shale gas in North America could have profound implications on the global energy sector. Even batteries and fuel cells have entered the conversation."

Higher Capital Spending

In addition to investment in alternative energy, executives surveyed by KPMG say their companies will increase investment in their businesses, predicting capital spending to increase in 2011 compared to 2010. In fact, 33 percent of executives expect capital spending to rise by more than 10 percent over last year's levels; 17 percent project an increase between five and 10 percent; and an additional 17 percent forecast an increase of up to five percent. Sixty-nine percent anticipate operating costs will go up over the next 12 months as well.

A significant portion of the additional capital spending could be allocated to increasing human resources, as many of the executives (49 percent) expect their company's workforce to expand over the next 12 months – up two percentage points from KPMG's 2010 survey. One-quarter expect the workforce to increase up to five percent; 13 percent see increases between five and 10 percent; and 11 percent think their company will expand the workforce by more than 10 percent.

"Executive expectations for capital spending and hiring are very positive indicators for the energy industry," said Regina Mayor, oil and gas sector leader for KPMG in the U.S. "After several years of lower investment, companies appear focused on transformation and innovation, despite the significant regulatory and economic risk factors they are confronting."

Offshore Exploration and Production

Interestingly, despite the amount of attention the measures received, 68 percent of executives surveyed by KPMG say the regulatory restrictions resulting from the Gulf of Mexico incident have had no impact on their companies' offshore exploration and production efforts. However, 12 percent said their companies have increased emphasis on nontraditional explorations such as shale, and 10 percent have increased onshore drilling. Eight percent say they have shut down U.S. rigs and moved to other geographies; and another eight percent say regulatory restrictions will have little impact on long-term development of offshore reserves but have improved exacting drilling practices.

KPMG will host its Ninth Annual Global Energy Conference on May 25th and 26th at the Intercontinental Hotel in Houston. The Global Energy Institute (GEI) provides an open forum where industry financial officers, risk officers, internal audit directors, and tax executives can share knowledge, gain insights, and access thought leadership about key oil and gas or power and utilities issues and emerging trends.

KPMG LLP, the audit, tax and advisory firm, is the U.S. member firm of KPMG International Cooperative ("KPMG International"). KPMG International's member firms have 138,000 professionals, including more than 7,900 partners, in 150 countries.

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Daewoo Wins Vantage Drill Ship Order

Daewoo Wins Vantage Drill Ship Order

Wednesday, May 11, 2011
Asia Pulse Pte Ltd

SEOUL, May 11 Asia Pulse - Daewoo Shipbuilding & Marine Engineering Co. (KSE:042660), South Korea's No. 2 shipbuilder, said Wednesday that it has won a deal to build a drill ship for Vantage Drilling.

Under the deal with Vantage Drilling of the U.S., Daewoo Shipbuilding will deliver the vessel used to find oil and gas wells in deep waters, by May 2013, the company said in a statement. The value of the contract was not revealed.

Daewoo Shipbuilding said it has an option to build one more drill ship.

The vessels, 238 meters long and 42 meters wide, are capable of drilling in waters up to 12,000 feet deep.

The shipbuilder said a steady rise in demand for such specialized vessels is expected due in part to a steady rise in crude oil prices that have made deep sea exploration and development more profitable.

Daewoo Shipbuilding is targeting orders valued at US$11 billion this year.

(C) 2011 Asia Pulse Pte Ltd.

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Global Energy Group Announces Kaymas Acquisition

Global Energy Group Announces Kaymas Acquisition

Wednesday, May 11, 2011
Global Energy Group

The Global Energy Group has further strengthened its offshore marine capability with the acquisition of a majority shareholding in Kaymas Electrical Engineering Ltd.

Global chairman, Roy MacGregor, said the acquisition would particularly enhance the capability of Global's offshore accommodation specialists Rigfit. Kaymas specializes in the provision of electrical services to the oil and gas, marine and heavy engineering industries.

Mr MacGregor said: "We have worked with Kaymas on many inspection, repair and maintenance projects over the years and have built up a great relationship. We are delighted this excellent company has decided to join the group.

"The specialist services Kaymas provide will bring a new dimension to what we are able to offer clients."

Kaymas managing director, Mike Sunderland, said: "We are very pleased to be joining the Global Energy Group, having worked with them on many occasions in the past.

"Becoming part of a large, highly successful and ambitious company like Global significantly strengthens our own capability and we are very much looking forward to continuing to grow our business as part of the group."

Mr Sunderland will be based in Global's Aberdeen facilities, working alongside Rigfit's managing director Brian Knowles, and a new office is also planned for Invergordon Service Base.

Kaymas currently employ a staff of around 70, all of whom are being retained following the acquisition. A privately owned company, based in Scotland and operating around the world, the Global Energy Group specializes in construction and maintenance of assets across a broad range of energy industry sectors.

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KMG EP Pulls Out of Iraq Field Development Talks

KMG EP Pulls Out of Iraq Field Development Talks

Wednesday, May 11, 2011
Knight Ridder/Tribune Business News
by A.Maratov, Trend News Agency, Baku, Azerbaijan

The National Company KazMunaiGas Exploration Production (KMG EP ) has informed the Oil and Gas Ministry of Iraq and the company Korea Gas Corporation (KOGAS) of its withdrawal from participation in the Akkas Field Development project negotiations in Iraq, the company reported.

In October 2010 KMG EP, together with KOGAS (the "Consortium"), won a tender for development of Iraq's Akkas gas field. The Consortium has held negotiations with the Government of Iraq with the objective of signing a contract to develop the Akkas field. "Unfortunately, the talks have failed to resolve all issues which emerged at a late stage and it has not been possible to develop a consensus document that would fully meet the interests of all parties," the report reads.

KMG EP would like to stress that it still believes Iraq to be an attractive area for investment. The Company appreciates the work done on this project by its partners from the Government of Iraq and KOGAS and would like to thank them for their efforts and regrets that it has not been possible for KMG EP to proceed.

KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2010 was 13.3mt (an average of 270kbopd) of crude oil, including the Company's share in Kazgermunai, CCEL, PKI and NBK. The total volume of proved and probable reserves, as at the end of 2010 was 232mt (1.7bn bbl), including shares in the associates -- about 2.2bln barrels.

Copyright (c) 2011, Trend News Agency, Baku, Azerbaijan. Distributed by McClatchy-Tribune Information Services.

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Ivanhoe Updates Financial Results, Projects

Ivanhoe Updates Financial Results, Projects

Wednesday, May 11, 201
Ivanhoe Energy

Ivanhoe Energy Inc. today reported financial results and operating highlights for the first quarter of 2011 and key highlights and activities to date. Ivanhoe Energy has filed its quarterly financial report on Form 10-Q with the Securities and Exchange Commission and its Interim Financial Statements with the Canadian Securities Administrators for the period ended March 31, 2011. All figures reported are in US dollars unless otherwise noted, and reflect the Company's move to the IFRS accounting standard.

Highlights

• Announced a second deep gas discovery on the Zitong Block in the Sichuan basin in China with the successful drilling of Zitong 1.

• Confirmed positive test results from Ivanhoe's two most recent wells drilled on the Zitong Block. Both the Yixin 2 and Zitong 1 wells were flow tested during the quarter and prepared for vertical fracture stimulation tests scheduled subsequent to the end of the first quarter.

• Increased reserves and resources assigned to the Tamarack Project near Fort McMurray, Alberta by 18%. GLJ Petroleum Consultants of Calgary (GLJ) assigned estimated probable plus possible bitumen (3P)

American Petro-Hunter Brings Okla. Wells on Production

American Petro-Hunter Brings Okla. Wells on Production

Wednesday, May 11, 2011
American Petro-Hunter Inc.

American Petro-Hunter, Inc. has brought both of its newest wells on pump at two separate North Oklahoma Project locations.

Pump equipment has been successfully installed at the NOS122 well site and has begun a test phase.

Prior to installation, the well "free-flowed" oil to the test tank.

Previous swab tests resulted in high gravity oil of 100% oil cut with no water from 6 feet of pay.

Initial test results look excellent and American Petro-Hunter is anticipating a strong producer.

The well will continue to be evaluated over a period of weeks in order to identify initial production rates and ultimately to determine stable production rates projected over time. The tank battery and full production facilities are under construction.

The Company has a minimum of 3 additional offsets to the NOS122 for future development and site engineering has been designed to accommodate future production requirements.

The second location to go on pump this week was at the NOS227 well site. Following a "multi-stage surge frack," where multiple injections of liquefied frack sand "proppants" were forced under high pressure into the Mississippi pay zone, the stimulation processsuccessfully fractured the limestone reservoir allowing for an anticipated increase in the flow of oil.

In readiness for commercial production, the pumping unit, rods and tubing have already been installed at NOS227.

Over the next 12-15 days the frack load will be pumped off allowing the oil to commence flowing freely.

American Petro-Hunter has a 50% interest in both wells and production from the NOS122 and NOS227 will be sold alongside output from the No. 1 and NOJ26 wells to Sunoco, the regional purchaser.

The latest achievements will increase the Company's revenue advantage to 4 producing wells in Oklahoma and two in Kansas.


About American Petro-Hunter, Inc.

The Company is a goal-oriented exploration and production (E&P) Company aiming to become an intermediate level oil and gas producer within 12 months. The Company is in production at the Poston Project in Trego County, Kansas and the North Oklahoma Project.

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Toyota Posts Weak Q4, Net Profit Down 77%, Revenue Down 12% YoY

Toyota Posts Weak Q4, Net Profit Down 77%, Revenue Down 12% YoY



May 11, 2011

Toyota Motor Co (NYSE:TM) reported a net profit early this morning of $314 million, down 77% from the $1.39 billion the company reported in Q4 of 2010. Revenue for the quarter was down 12% year-over-year to $57.5 billion, falling short of the consensus estimate for $63.4 billion.

Toyota Motor has a potential upside of 14% based on a current price of $81.02 and an average consensus analyst price target of $92.4.

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ADX: Tunisian Govt Agrees to Extend Chorbane Permit

ADX: Tunisian Govt Agrees to Extend Chorbane Permit

Wednesday, May 11, 2011
ADX Energy Limited

ADX Energy Limited on Wednesday announced that the Tunisian authorities (Comite Consultatif des Hydrocarbures) have agreed to the extension of the current exploration period for the Chorbane permit by one year to the 12th of July 2012.

The Chorbane exploration permit contains the Sidi Dhaher prospect. All site preparations to drill the Sidi Dhaher exploration well have been completed and a ready to drill status has been achieved.

The Tunisian authorities (Ministry of Industry and Technology) have informed the Company during recent meetings in Tunis that the drilling of the Sidi Dhaher well is a priority and the required level of government authority supervision to ensure safe mobilization and efficient drilling operations will be provided. ADX anticipates that the appropriate measures for road clearance, traffic control and road safety will be available shortly.

ADX will continue to prepare for the drilling of the Sidi Dhaher well and provide a further update when a scheduled mobilization date is determined.

The Sidi Dhaher prospect is located in the 2,428km2 large Chorbane Exploration Permit onshore central Tunisia near the port city of Sfax. It is surrounded by several producing oil fields and extensive oil and gas infrastructure.

Participant interests in the Sidi Dhaher -1 well will be as follows;

• ADX Energy Ltd 40% Operator
• Gulfsands Petroleum Plc 40%*
• XState Resources Ltd 10%*
• Verus Investments Limited 10%*

(*The respective participant interests in the Sidi Dhaher well and the Chorbane Permit are based on the completion of all farmin obligations.)

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BP Clears Hurdle to Acquire Brazil Blocks from Devon

BP Clears Hurdle to Acquire Brazil Blocks from Devon

Wednesday, May 11, 2011
BP plc

BP on Tuesday announced it has received final approval to complete the purchase of ten exploration and production blocks in Brazil from Devon Energy.

The regulatory approvals from the Brazilian National Petroleum, Natural Gas and Biofuels Agency (ANP) were the last required to conclude the agreement announced in March last year. It is expected formal completion of the acquisition will take place shortly.

The blocks acquired will give BP a diverse and broad deepwater exploration acreage position offshore Brazil with interests in eight license blocks in the Campos and Camamu-Almada basins in water depths ranging from 330 to 9,100 feet (100-2,780 meters), as well as two onshore licenses in the Parnaiba basin. The Campos basin blocks include four discoveries — Xerelete, pre-salt Wahoo, Itaipu and Fragata — and the Polvo field, which is currently producing around 25,000 barrels of oil per day.

"We are pleased to receive the approvals. The completion of this acquisition delivers a material position in some of Brazil's most important hydrocarbon basins and reinforces the group's strategy of securing strong exploration positions in such basins and working with strong national champions," said BP group chief executive Bob Dudley. "We believe these blocks add distinctive value to our asset base, and offer significant long-term growth potential."

"It is exciting to participate in the development of the oil industry in such an important country as Brazil and the Devon acquisition provides us with an excellent growth platform," said Guillermo Quintero, BP Brazil Regional President.

Last month BP completed the acquisition of the majority control of Brazilian producer of ethanol and sugar Companhia Nacional de Acucar e Alcool (CNAA). BP paid approximately $ 680 million to acquire 83% of the shares and refinance 100% of the company's long-term debt. BP will now be responsible for operating two ethanol plants located in Ituiutaba (Minas Gerais) and Itumbiara (Goias), with current capacity of processing 5 million tons of sugar cane per year.

The blocks are part of the transaction between BP and Devon Energy announced in March 2010. Most of Devon's employees in Brazil are expected to join BP. The transaction is a corporate share sale whereby BP will obtain ownership of Devon Energy do Brasil Ltda., the Devon entity that owns interests in the blocks.

The acquisition gives BP interests in one currently producing field (Polvo) and 4 existing discoveries (Xerelete, Itaipu, Wahoo and Fragata). BP becomes operator of the Polvo field, and of blocks BM-C-32 (containing the Itaipu discovery) and BM-C-34 (consisting of C-M-471 and C-M-473, and containing the Fragata discovery) in the Campos Basin; Block BM-CAL-13 in the Camamu-Almada Basin; and onshore Block BT-PN-2 in the Parnaiba Basin.

BP also gains non-operating interests in blocks BM-C-30 (containing the Wahoo discovery), BM-C-35 and the Xerelete discovery (formerly the BC-2 block), all in the Campos Basin; as well as onshore Block BT-PN-3 in Parnaiba Basin.

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Keppel FELS Wins Twin Jack-up Rig Order

Keppel FELS Wins Twin Jack-up Rig Order

Wednesday, May 11, 2011
Gulf Drilling International Ltd.

Gulf Drilling International Ltd. (q.s.c.) (GDI) of Qatar has awarded contracts to Keppel FELS Limited (Keppel FELS) to build two high-specification KFELS B Class Bigfoot jack-up rigs from returning customer, worth about US$393 million.

These latest contracts follow closely after Keppel FELS was awarded a new-build jack-up rig contract by one of GDI's Shareholders, Japan Drilling Company, in March this year.

Scheduled for delivery in the third quarters of 2013 and 2014, the two latest rigs mark GDI's first new orders in six years, and will increase the company's jackup fleet count to seven units.

Mr. Tong Chong Heong, Chief Executive Officer of Keppel Offshore & Marine Ltd (Keppel O&M) said, "We are pleased to work with GDI again, having successfully delivered two KFELS B Class jack-up rigs to them previously. On top of its newbuilding contracts with Keppel FELS, GDI also sends its rigs for repairs and upgrades at Nakilat-Keppel Offshore & Marine, our joint venture shipyard with Qatar Gas Transport Company.

"Our Near Market, Near Customer strategy enables us to develop a keen understanding of our customers' businesses and tailor products and services to meet their needs. Repeat customers are a vindication of the quality and reliability that Keppel O&M provides, and the effectiveness of its proprietary designs. We look forward to supporting GDI as they expand their offshore fleet and presence in the Middle East."

Customized to GDI's requirements, the new jackup rigs will be designed to operate in the higher ambient temperature of the Middle East. The KFELS B Class Bigfoot is equipped with larger spud cans for reduced bearing pressure and expands its operational coverage in more places, especially areas where soft soil is predominant. GDI's new rigs also feature an enhanced leg design for added robustness.

Saad Sherida Al-Kaabi, Chairman of GDI, said: "The two new hi-tech premium jack-up rigs under order from KFELS will be welcome additions to GDI's fleet. They will serve as the cornerstone of an expansion plan that is geared to increasing GDI's share of the Qatar drilling market. GDI is driven to become a key provider of drilling rig services and to be the drilling contractor of choice in Qatar. Our commitment to both safety and performance is unwavering and these new rigs will enhance our ability to perform safely, efficiently and cost effectively. We look forward to receiving a high quality product from KFELS and to continuing our association with them."

Mr Ibrahim J. Al-Othman, Chief Executive Officer of GDI, said, "GDI has become the leader of Qatar's drilling market in a matter of just six years. The decision to select KFELS was carefully considered after taking into account factors such as rig design, rig equipment, experience in building jack-up rigs, reliability, timing, cost and post construction support. We believe they produce a technically superior rig and we are very pleased to be adding two more of their rigs to our fleet."

"Keppel FELS is our trusted partner as they have proven themselves time and again with high quality projects delivered safely, on time and within budget. We have a win-win relationship with them and the new rigs will enable GDI to expand its premium rig fleet to meet needs of our customers in the Arabian Gulf promptly and reliably."

GDI has been pleased with the KFELS' rig design, workmanship and ability to stay on schedule. Their reputation as being one of the premier builders of jack-up rigs worldwide is well deserved and GDI is expecting the new rigs once again to be of the highest quality. Each rig will have a full 15,000 psi BOP system, 75' cantilever outreach and be able to accommodate 150 persons.

GDI is a world-class drilling service provider offering safe, efficient and innovative drilling services. On May 18, 2004 GDI, was established as the first onshore and offshore oil and gas drilling company in Qatar. GDI was formed as a joint venture between Qatar Petroleum (QP 60%), Qatar's national oil corporation, and Japan Drilling Co., Ltd. (JDC 40%), a Japanese drilling company with more than 40 years of offshore experience. The paid-up capital was US$ 103.2 million.

In July 2007, QP acquired another 25% of JDC shares raising their ownership in GDI to 70%. On 12th February 2008, the shares of QP were transferred to Gulf International Services (q.s.c.) (GIS) which became a public shareholding company on 26th May 2008 and is listed on the Qatar Exchange. GIS now holds 70% of the shares of GDI.

GDI is a growth-oriented company. GDI's rig fleet has grown to nine rigs and its workforce to 830 employees. It currently operates a fleet consisting of five offshore jack-up rigs and four land rigs. GDI is already the owner of two jack-up rigs built by KFELS, the Al-Khor, delivered in December 2006 and the Al-Zubarah, delivered in February 2008.

GDI's rig fleet has grown to nine rigs and its workforce to 830 employees. It currently operates a fleet consisting of five offshore jack-up rigs and four land rigs. GDI is already the owner of two jack-up rigs built by KFELS, the Al-Khor, delivered in December 2006 and the Al-Zubarah, delivered in February 2008.

Keppel FELS is a subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), a wholly owned company of Keppel Corporation Limited. Keppel O&M is a leader in offshore rig design, repair and construction, ship repair and conversion and specialized shipbuilding. Its near market, near customer strategy is bolstered by a global network of 20 yards and offices in the Asia Pacific, Gulf of Mexico, Brazil, the Caspian Sea, Middle East and the North Sea regions.

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Sino Gas & Energy Begins Linxing PSC Well Testing

Sino Gas & Energy Begins Linxing PSC Well Testing

Wednesday, May 11, 2011
Sino Gas & Energy Holdings Limited

Sino Gas & Energy Holdings Limited, an Australian company developing unconventional gas assets within the Ordos Basin, Shanxi Province China, has confirmed the commencement of its 2011 well testing program on the Linxing Production Sharing Contract (PSC).

Following a competitive tendering process, Sino Gas has now signed the 2011 testing contract for the Linxing PSC with CCDC Changqing (CCDC), a subsidiary of PetroChina. Sino Gas used CCDC extensively in its 2010 well testing campaign.

Sino Gas Managing Director, Stephen Lyons, said he was very pleased with the appointment of CCDC, which highlights our continued cooperation with established Chinese service companies.

"CCDC are a full service downhole company that performed safely and very effectively for Sino Gas in 2010 delivering 7 successful tests. They also had extensive input into the test program designs and this will continue during 2011.

The testing contract is initially for 2011 but can be extended with additional tests being added as required," said Mr Lyons.

Testing equipment will now be prepared and mobilized to the TB09 Gas Discovery Well for a test scheduled around the end of May 2011.

Prospective zone in TB09 to be stimulated

The TB09 Gas Discovery Well was drilled to TD late in Q4, 2010 with electronic wireline logging confirming the presence of gas in multiple zones.

The test to be carried out will be on one of the upper zones that exhibited promising log and core testing results and is expected to generate commercial gas flows that will be converted to CNG for transport and sale in the Company's Pilot.

As with Sino Gas's previous well tests, the TB09 test will initially involve a perforation of the zone followed by a flow test to measure gas flow and formation pressure data. Following the flow test it is intended that the zone will be hydraulically fracture stimulated to increase gas flow.

Assuming a successful test on TB09, the well will form part of the Company's Pilot development that is expected to include multiple wells during 2011 with gas sales increasing significantly as this program proceeds.

Other activities, including those on the Sanjiaobei PSC, will be confirmed as they are approved and scheduled.

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BHP Farms into Offshore Palawan Block

BHP Farms into Offshore Palawan Block

Wednesday, May 11, 2011
Otto Energy Ltd.

Otto Energy Ltd announced Wednesday that BHP Billiton has exercised the option to farm-in to Service Contract 55 (SC55).

Subject to joint venture and regulatory approval, BHP Billiton will earn up to 60% participating interest and assume operatorship of the block by reimbursing Otto's past costs and funding one offshore deepwater well by 2012, with an option to drill a second well in a subsequent phase by 2013. Otto Energy will retain a 33.18% interest following BHP Billiton's farm-in.

The farm-in option held by BHP Billiton was granted in January 2010, and Otto has worked over the past 16 months to acquire, process and interpret approximately 1,800 km2 of 3D seismic data in the block.

The extensive 3D seismic data indicates the presence of an active petroleum system coupled with a series of large to very large Nido Carbonate structures that supplement the Hawkeye prospect.

Otto's Managing Director Paul Moore said, "We are looking forward to continuing to work with BHP Billiton in Service Contract 55 as we move into the drilling phase of exploration activities. The past 16 months has been a very busy period for Otto as we have acquired, processed and interpreted a large volume of seismic data to identify a portfolio of significant oil and gas prospects. We have benefited from the co-operation shown by our joint venture partner, Trans-Asia, and also BHP Billiton."

"We now look forward to participating in this exciting offshore deepwater exploration program which will provide exposure for Otto's shareholders to material exploration in highly prospective, large structure opportunities."

Otto will submit the required assignment documents to the joint venture partner and the Philippine Department of Energy for approval of the transfer of participating interest to BHP Billiton.

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Vantage Adds to Jackup Backlog with Thailand Contract

Vantage Adds to Jackup Backlog with Thailand Contract

Wednesday, May 11, 2011
Vantage Drilling Co.

Vantage Drilling Co. announced Wednesday that it has received a letter of award for an 18-month drilling program in Thailand for the Emerald Driller.

The contract will commence in continuity with the completion of the Emerald Driller's current contract. Estimated revenues to be generated over the initial term of the contract are approximately $72 million.

Paul Bragg, President and Chief Executive Officer, commented, "We are pleased to add significant additional backlog to the jackup fleet, with Emerald Driller continuing work in Thailand."

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with an owned fleet of four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs and the ultra-deepwater drillship, the Platinum Explorer, as well as an additional ultra-deepwater drillship, Tungsten Explorer, now under construction Vantage's primary business is to contract drilling units, related equipment and work crews primarily on a dayrate basis to drill oil and natural gas wells. Vantage also provides construction supervision services for, and will operate and manage, drilling units owned by others. Through its fleet of seven owned and managed drilling units, Vantage is a provider of offshore contract drilling services globally to major, national and large independent oil and natural gas companies.

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