Crude Oil Price by

Oil and Gas Energy News Update

Tuesday, June 7, 2011

Oil & Gas Post - All News Report for Tuesday, June 07, 2011

Tuesday, June 07, 2011

Oil & Gas Post

Promote Your Page Too

Commodity Corner: Oil Edges Up ahead of OPEC Meeting

- Commodity Corner: Oil Edges Up ahead of OPEC Meeting

Tuesday, June 07, 2011
Rigzone Staff
by Saaniya Bangee

Oil futures gained 0.1 percent Tuesday as traders await results from this week's OPEC meeting.

Crude for July delivery gained 8 cents to settle at $99.09 a barrel. Prices dropped as low as $97.74 before rebounding in the last 90 seconds of trading. A weaker dollar helped prevent oil prices from dropping too low.

The 12-member Organization of Petroleum Exporting Countries (OPEC) will be meeting Wednesday for the first time since the political uprising in the Middle East and North Africa. Analysts anticipate that OPEC members will increase oil production in an effort to hinder rising energy prices. By increasing production, oil prices may decrease—making up for the loss of Libyan exports due to the unrest. However, as global demand increases, it may be harder for OPEC to provide additional crude later—ultimately increasing oil prices.

Due to above-average temperatures, front-month natural gas rose for the second straight day settling at a 10-month high. Natural gas gained nearly a penny, ending the trading session at $4.83 per thousand cubic feet. The heat spurs demand for air conditioning, in term boosting the need for power-plant fuel. The intraday range for natural gas was $4.764 to $4.854 Tuesday.

July gasoline settled at $2.99 a gallon, up 4.20 cents from the previous session. Prices for gasoline traded between $2.928 and $3.002 Tuesday.

Oil & Gas Post

Promote Your Page Too

Winstar Contracts Helmerich & Payne Rig for Tunisian Ops

- Winstar Contracts Helmerich & Payne Rig for Tunisian Ops

Tuesday, June 07, 2011
Winstar Resources Ltd.

Winstar has executed a contract with Helmerich & Payne to provide a 1,500 horsepower drilling rig and associated services for two firm operations with the option for two additional operations on the 100% owned and operated Chouech Essaida and/or Ech Chouech concessions in Southern Tunisia.

The two firm operations at Chouech Essaida involve repairing the Chouech Essaida #9 well (CS #9) and the twinning of Chouech Essaida #8 well (CS #8bis) to re-establish oil production from these two locations in the Triassic Chouech Essaida oil field.
The first operation, expected to take approximately two weeks and cost US $3 million, involves the remedial cementing and subsequent re-perforating of the pay zones in CS#9 to re-establish down-hole segregation between a gas/condensate zone and an oil zone, both established hydrocarbon reservoirs. This well has been off line since late 4Q 2010 and was producing approximately 500 barrels of oil equivalent per day (boepd) prior to the wellbore mechanical failure.

The second operation is to drill a twin well to the CS#8S well and will take approximately one month and cost US $7 to 8 million. This new well is expected to intersect the same two Triassic zones tested during the sidetrack operation conducted in 2010 on the original CS #8 well. The 2010 CS #8S well was on production test for 5 days at a final production rate of 730 barrels of oil per day (bopd), but the wellbore was rendered unusable due to a subsequent down-hole mechanical failure. If successful, the new CS #8bis well is anticipated to be capable of 500 to 800 bopd of production plus associated solution gas.

The review of the two additional optional operations is ongoing. Under consideration is the drilling of a new Triassic well (2,500 meters depth with an expected cost of US $7 to 8 million) and/or the drilling of a new Silurian well (4,400 meters depth with an expected cost of US $15 million) both within the Chouech Essaida Concession. Winstar expects to finance the remainder of its 2011 capital program from existing working capital, 2011 cash flow and if necessary short term bank debt.

The same H&P rig was used to drill Winstar's Chouech Essaida Silurian #1 well (CS Sil #1) in the fourth quarter of 2010. In addition, this rig has been operating continuously in Tunisia for several years drilling numerous wells to similar depths for other operators on nearby exploration permits and concessions. The rig is expected to begin moving to Chouech Essaida as soon as possible, with the CS #9 remedial work-over expected to commence later this month.

Winstar is currently producing about 1,600 boepd. Production has been impeded by mechanical issues at the Chouech Essaida and Sabria Concessions. The onset of new field operations with the arrival of the H&P rig, plus the installation of a gas plant at CS Sil #1 to enable long term production from the Silurian (anticipated plant start-up in the third quarter of 2011) could increase production to 3,000 boepd by late in the third quarter or early in the fourth quarter of 2011.

Oil & Gas Post

Promote Your Page Too

Gazprom Neft, GEPetrol Ink Cooperation Agreement

- Gazprom Neft, GEPetrol Ink Cooperation Agreement

Tuesday, June 07, 2011
Gazprom Neft

Alexander Dyukov, Chairman of the Management Board of Gazprom Neft, and Candido Nsue Okomo, Director General of GEPetrol, the national oil company of Equatorial Guinea, signed a cooperation agreement in the Kremlin. The signing of the agreement was witnessed by Russian President Dmitry Medvedev and the President of Equatorial Guinea, Teodoro Obiang Nguema Mbasogo.

The document regulates key areas of cooperation between Gazprom Neft and GEPetrol within the framework of implementing Product Sharing Agreements (PSAs) signed in 2010 for geological prospecting of blocks T and U on the Equatorial Guinea shelf. In particular, the agreement sets out the fundamental principles for managing the project and the procedures for making key decisions.

The registration of Gazprom Neft Equatorial in Equatorial Guinea is currently being finalized and, once created, the company will represent Gazprom Neft in the project for geological prospecting of blocks T and U. Analysis of the results of seismological exploration conducted in February 2011 is scheduled to be completed by the end of 2011/start of 2012.

"Projects in Equatorial Guinea enable Gazprom Neft to simultaneously achieve several objectives: creating a production center in West Africa, gaining new experience of managing international projects and broadening our shelf expertise," commented Alexander Dyukov, Chairman of the Management Board of Gazprom Neft.

Oil & Gas Post

Promote Your Page Too

Ophir Welcomes New Managing Director

- Ophir Welcomes New Managing Director

Tuesday, June 07, 2011
Ophir Energy plc

Ophir announced the appointment of Dr. Nick Cooper to the Board of Ophir as Managing Director.

Dr Cooper began his career as a geophysicist with BG and Amoco in the UK and various international locations. He then spent two
years with the energy team at Booz-Allen & Hamilton, advising on upstream and gas development projects. In 1999, Dr. Cooper
completed an MBA at INSEAD and went on to join the oil and gas team at Goldman Sachs where he held the position of Vice
President. In early 2005 he co-founded and became CFO of Salamander Energy, which has grown from start-up to a FTSE250 constituent.

Ophir’s founding Managing Director, Dr. Alan Stein, will assume the role of Deputy Chairman with a focus upon business development.

Dr. Alan Stein commented, "We are delighted to have Nick join the management team at Ophir. Following on from our recent exploration
successes in Tanzania and previous exploration successes in Equatorial Guinea this is an exciting time for the Company and I am sure Nick will be instrumental in maintaining and accelerating our growth in the months ahead."

Dr. Nick Cooper commented, "I am delighted to have joined Ophir at such an exciting time for the Company with its 11 well exploration and
appraisal drilling campaign coming up over the next 18 months."

Oil & Gas Post

Promote Your Page Too

Maple Board Member Resigns

- Maple Board Member Resigns

Tuesday, June 07, 2011
Maple Energy plc

Maple Energy announced the resignation of Mr. Antonio Villa Mardon from his position as an independent non-executive director of the Company's Board of Directors ("Board") with effect from June 6, 2011. Mr. Villa Mardon is resigning his position on the Board to continue to pursue his other personal business interests in Peru. The Nomination Committee of the Board will commence its search for a new independent non-executive director to replace Mr. Villa Mardon. The Company intends to announce the appointment of a new director as soon as such director has been nominated and properly installed.

Mr. Villa Mardon commented, "It has been my great pleasure to serve Maple and its shareholders, and I look forward to following the Company's progress as it executes both its strategy and business plan which I firmly believe the Company is pursuing in a very professional manner."

Nigel Christie, Chairman of the Board, also commented on Mr. Villa Mardon's retirement, "The entire Board and management would like to thank Antonio for his contribution and commitment to the Company, and we wish him well for the future."

Oil & Gas Post

Promote Your Page Too

Condor Commences Drilling at Kazakh Well

- Condor Commences Drilling at Kazakh Well

Tuesday, June 07, 2011
Condor Petroleum Inc.

Condor announced that Kiyaktysay North-3 ("KN-3") drilling operations have commenced on the Zharkamys West 1 Territory in Kazakhstan. The KN-3 well location targets the same Triassic geologic play that resulted in the recent Shoba discoveries. The KN-3 has a planned total depth of 1000 meters and is located 17 km southeast of Shoba.

Condor has also initiated field acquisition of a 1,280 sq km 3D seismic program in the southeast portion of Zharkamys, designed to image shallow Triassic plays as well as deeper Sub-Canopy and Pre-Salt plays. It is planned to have this program completed in Q4 2011, at which point 90% of Zharkamys will have coverage with high resolution 3D seismic data.

Don Streu, Condor's President and CEO commented, "Condor is continuing with our strategy of using 3D seismic to both explore and appraise multiple play types on the Territory. Condor believes implementation of this approach is one means to mitigate exploration risk while providing data necessary to progress commercial development activities."

Oil & Gas Post

Promote Your Page Too

Drillsearch: Drilling Starts at 2nd Well in Western Flank Oil Fairway Prog.

- Drillsearch: Drilling Starts at 2nd Well in Western Flank Oil Fairway Prog.

Tuesday, June 07, 2011
Drillsearch Energy Ltd.

Drillsearch announced that following the success of the Hanson—1 New Oil Field Discovery in PEL 91, Drillsearch's Western Flank Oil Fairway drilling program continues with the spudding of Snellings-1, the second well in the five well program. The Snellings-1 well spudded at 7.00am Monday, 6 June 2011. Drillsearch holds a 60% Interest in PEL 91 while Beach Energy (ASX: BPT) as operator holds 40%. The Hanson Oil discovery is estimated to contain gross recoverable oil of up to 1 million barrels. Drillsearch also holds a 60% interest in this discovery.

Snellings-1 oil exploration well is located 1500 meters north of the Hanson Oil Discovery and 1900 meters south of the Chiton Oil Field. The primary objective of the well is the Namur Sandstone which is the productive oil reservoir in both the Chiton Oil Discovery and the Hanson New Oil Field Discovery announced on May 30, 2011 along with numerous oil discoveries in the adjacent PEL 92 permit to the south of the Snellings prospect. The Birkhead Formation Sandstones, Hutton Sandstone and Poolowanna Sandstones are considered secondary targets for oil and have been proven at the Christies and Sellicks oilfields to the south and south east of Snellings-1. Drilling will be to a total depth of 1935mRT and it is expected that the drilling will take 10-14 days.

Seismic mapping of the Namur horizon indicates that the Snellings Structure has approximately 10 meters of independent structural relief and potentially encloses an area of 1.0km2. The Snellings Prospect is estimated to have up to P10 High-side Recoverable Prospective Resource potential of up to 1.0 million barrels of oil.

Details of the Snellings Prospect are set out in the attached Prospect Data Sheet and accompanying maps and seismic sections.
Snellings-1 will be drilled as a conventional vertical well with wireline logging and possible testing planned after the well reaches total depth. The main target zone is expected to be penetrated five to seven days after spud.

Mr. Brad Lingo, Managing Director noted that "following the success of the Hanson-1 Oil Discovery announced on May 30, 2011, the spudding of Snellings-1, the second well in our five well drilling program is very encouraging. We are progressing on schedule, and we look forward to providing you with further updates on the exploration work we are undertaking in the highly prospective Western Flank Oil Fairway."

Oil & Gas Post

Promote Your Page Too

DNO Boosts Production in Kurdistan

- DNO Boosts Production in Kurdistan

Tuesday, June 07, 2011

DNO reported the status of its activities in Kurdistan Region of Iraq.

Summail-1 exploration well update

The Summail-1 exploration well was spudded on April 19, 2011. The well has now been drilled ca. 25 meters into the Cretaceous interval and hydrocarbon shows were detected while drilling. An open hole test (DST) was undertaken of this top interval, and the well flowed 4 million standard cubic feet of gas per day (scf/d) through a restricted choke size (24/64 inches).

The drilling will now continue through the total Cretaceous section, which has an estimated total thickness of 800 meters, and testing will be undertaken as required. Thereafter the plan is to set casing and drill into the Jurassic and Triassic intervals.

Bastora-1A test production

The Bastora-1A well is a horizontal side-track drilled from the original Bastora-1 discovery well. A horizontal section of 660 m in length was drilled through one of the oil filled carbonate zones with the objectives of penetrating multiple fracture systems to enhance productivity and furthermore enable the well to be used in an early production concept. Testing of the well commenced by using artificial lift through installation of a down hole jet pump, and as previously reported, preliminary results indicated initial test rates of 2,000 to 2,300 bopd of crude oil of 18-19 API. The flow from the well has now stabilized at around 1,700 - 1,800 bopd and the crude oil produced is trucked to the DNO operated facilities at Tawke for export.

The forward plan is to continue flowing the Bastora-1A well in order to acquire more production and reservoir information, which will serve as an important input to the development plan to be prepared for the Bastora and Benenan oil discoveries. DNO as Operator will issue a declaration of Commercial Discovery for these two discoveries to the KRG by June 25, 2011.

Oil & Gas Post

Promote Your Page Too

Cougar O&G Notes Progress at Trout Proj.

- Cougar O&G Notes Progress at Trout Proj.

Cougar O&G Canada Inc.
Tuesday, June 07, 2011

Cougar O&G provided an update for the Corporation's Trout light oil project including the preparation of an updated drilling prospect reserve report.

The Corporation has finished the initial interpretation and evaluation of the Trout 3D seismic that was acquired and processed earlier this year. Over 20 vertical Keg River and Granite Wash light oil targets have been identified and 15 of these targets have been selected to be included in a drilling prospect reserve evaluation report. On June 3, 2011, Cougar signed an engagement letter with an independent reserves company to review and prepare the drilling prospect report. During the initial project meeting it was confirmed the 15 selected locations will be evaluated and assigned a range of proven, probable and possible reserve estimates and risked NPV values. Cougar anticipates that this report will be finished and released by the end of June.

Mr. William Tighe, CEO and Chairman of the Board for Cougar stated, "We are happy to be able to announce the development of this independent reserve report for our Trout drilling prospects. The 3D seismic has been extremely helpful in finalizing the development plans for the Trout field and commissioning an independent report will assist us in sharing that information with the shareholders as well as a key portion of the support documentation for fund raising for the drilling program.

"In addition to the reserve report we continue to prepare for the next drilling field operations in the main Trout production area. A series of ortho-photos were prepared and are being reviewed in order to select surface locations that are accessible using the all season infrastructure in the area. Once the locations are finalized the permitting will continue with surveying and Landowner/First Nation consultation."

Oil & Gas Post

Promote Your Page Too

PetroNeft's 2011 Exploration Program to Double Reserves in Russia

- PetroNeft's 2011 Exploration Program to Double Reserves in Russia

Tuesday, June 07, 2011
PetroNeft Resources plc

PetroNeft, owner and operator of Licenses 61 and 67, Tomsk Oblast, Russian Federation, provided an update on its operations.
  • Kondrashevskoye No. 2 well successfully tests oil
  • Four additional wells completed in the Lineynoye Development Drilling Program
  • Drilling establishes interconnection between Lineynoye and West Lineynoye fields
  • New structural interpretation of Lineynoye shows thicker pays extend significantly further north
  • Facilities construction to expand capacity from 7,400 bopd to 14,800 bopd is on schedule for completion in July

License 61 Exploration / Delineation Program

PetroNeft's high impact 2011 exploration program, which has the potential to more than double our reserves, is targeting over 60 million barrels on three prospects in License 61.

The first well in the program, the Kondrashevskoye No. 2 delineation well, has been drilled and has confirmed 2.3 m of net pay in the J1 interval. This is consistent with the No. 1 well which discovered the oil field in 2008. The well tested high quality 41° API gravity crude oil at a prorated inflow rate of 32 bopd on a short open hole test (without stimulation). The well was then drilled to basement and a core taken to meet government regulations.

Neither Kondrashevskoye well has encountered the oil water contact for the field so we will now sidetrack the No. 2 well down-dip to locate the oil water contact and determine the full reserve potential of the field. This process in now underway and is expected to be completed by the end of June.

The second 2011 exploration well will be at Sibkrayevskaya, the largest prospect in the program at over 40 million barrels. Site preparation and mobilization of the rig and materials is complete and rig-up operations are well advanced. Drilling should start in late June, following completion of the Kondrashevskoye No. 2 sidetrack.

The site for the third exploration well, North Varyakhskaya No. 1, has also been prepared and the rig and materials have been moved to the site for a planned spud in August 2011 following Sibkrayevskaya.

2011 License 61 Development program - Lineynoye oil field

Production drilling continues with three additional wells successfully drilled from Pad 2, making a total of 5 thus far and the first well from Pad 3. Preliminary log and survey data for the development wells on Pads 2 and 3 are shown below, with Well 204 having the largest gross sand interval in the J1 section to date.

The primary objective for Well 203 was encountered deeper than anticipated and close to the oil-water contact for the field. The well was then side-tracked up-dip to the planned 204 location. The sidetrack well (203s) contained 2.0m of oil in the J1-1 interval with good oil saturation (65%), but the J1-2 sandstone interval was not developed in this location.

As a result of the information learned from Wells 203 and 203s, we have re-evaluated the seismic data for the Lineynoye Field. The resulting new interpretation clearly connects Pads 1 and 2 to the West Lineynoye field to the north where previously it had been thought they were separate structures. While this has positive implications for reserve and production performance from these areas of the field, the data also suggests that net pay in the planned Pad 3 wells is likely to be thinner than previously anticipated. Wells 204 and 205, which were drilled after the new structural interpretation have confirmed the revised mapping and shown that the area of thicker pays extends significantly further north than originally thought. This, together with the results of Well 334, will likely add extra wells to the Pad 2 program and reduce the number of wells to be located at Pad 3.

Due to the poor condition of the well bore in the original Lineynoye No. 1 discovery well (drilled in 1972) and the high quality reservoir characteristics at this location we have decided to drill a new production well adjacent to the L-1 location from Pad 2 at the end of the Pad 2 program. A modern well will allow effective production and drainage of this portion of the field through the use of a modern electric submersible pump and the application of hydraulic fracturing.

Production is currently about 2,500 bopd with the primary contribution coming from 7 of the 9 wells drilled last year with workovers to be carried out on the two poorest performing wells later in the year. New wells will now be tied-in but we do not anticipate significant production increases until some of the new wells can be fracture stimulated later this summer by a heli-frac crew.

License 61 Facilities Construction and Tie-in

The connection of Pads 2 and 3 to the existing central processing facility is complete and new wells being prepared for tie-in to the process facilities. Work to expand the central processing facility from 7,400 bfpd to 14,800 bfpd is expected to be completed on schedule by mid July.

2011 License 67 Exploration program

The drilling tender for the two exploration wells to be drilled in 2011 in License 67 has been completed and the contract was awarded to LLC "Tomskburneftegaz" (TBNG). In accordance with AIM Rule 13 and ESM Rule 13, the drilling contracts are deemed to be a related party transaction as Vakha Sobraliev, a Non-Executive director of the Company, is principal owner of TBNG.

The Board of Directors, with the exception of Vakha Sobraliev who is involved in the transaction as a related party, having consulted with Davy, the Company's Nominated Adviser and ESM adviser, have determined that the terms of the drilling contracts are fair and reasonable insofar as shareholders are concerned.

The two exploration wells, Cheremshanskaya No. 3 and Ledovoye No. 2a, are located close to existing all year round roads and will be drilled in the second half of the year following the License 61 exploration wells, utilizing the same drilling crew. We have already mobilized equipment and completed construction of the Cheremshanskaya site and the rig is now being mobilized by barge to a nearby river port. Construction of the site for the Ledovoye No 2a well will begin shortly and drilling will commence following completion of Cheremshanskaya No. 3.

Dennis Francis, Chief Executive Officer of PetroNeft Resources plc, commented, "We are delighted that the Kondrashevskoye No. 2 well has further proved up the Kondrashevskoye oil field and look forward to the additional data that the deviated portion of the well will provide. This oil field is one of the candidates for production drilling and tie-in during 2012.

"The development program is well underway and we have learned a lot from the drilling to date. The Lineynoye oil field extends further north and has thicker oil pays than previously thought whereas the Pad 3 area has some thinner pays. We will continue to dynamically adjust the drilling and completion program to ensure the optimum long term reserve and production outcome for Lineynoye and the surrounding discoveries."

Oil & Gas Post

Promote Your Page Too

Volvo Announces May Sales in China Grew 82% Year-Over-Year

- Volvo Announces May Sales in China Grew 82% Year-Over-Year

Jun 7, 2011

The Volvo Car Corp. said Tuesday its sales in China grew 82% to 4,019 vehicles in May, making the country the company's third largest market after the U.S. and Sweden.

Sales also surged in the U.S., to 7,363 cars, up 58%, and in Sweden, where sales hit 5,257 in the month.

The automaker's global sales were 41,465, an increase of 42% from May of 2010.

So far this year the company has sold 185,933 cars, a 20% increase from the same period in 2010.

Volvo cited strong demand for its 60 series, including the Volvo XC60, S60, and the V60 in announcing last week its decision to hire 600 workers and increase production at the company's plants in Sweden and in Belgium.

Oil & Gas Post

Promote Your Page Too

GM's Akerson Is Concerned About Deficit, Economy

- GM's Akerson Is Concerned About Deficit, Economy

Jun 7, 2011

Dan Akerson, the CEO of General Motors (GM), told reporters before the company's annual shareholder meeting in Detroit that he is concerned about the U.S. government's high deficit and a "jobless" economic recovery. Akerson says the government needs a plan to pay down the nearly $14T deficit, and comments that if more jobs are created, more people will buy cars and other durable goods. The company also revealed that it has eliminated half of its pension liabilities since 2009, meaning the pension fund is now 90% funded and the shortfall is less than $9 billion. The fund had been underfunded by $17.1 billion at the end of 2009 and by $11 billion as of the first quarter this year. Shares of GM are trading up over 1% to $28.87.

Oil & Gas Post

Promote Your Page Too

Sunshine Oilsands Eyes $1B IPO

- Sunshine Oilsands Eyes $1B IPO

Tuesday, June 07, 2011
Dow Jones Newswires
by Yvonne Lee & Edward Welsch

The buzz about Hong Kong's market for initial public offerings is luring Sunshine Oilsands Ltd., an early-stage Canadian oil-sands company that could lose some of its land to a preserve for caribou.

The Calgary-based company wants to raise around US $1 billion through an IPO in the fourth quarter, a person familiar with the situation said Tuesday. It plans to submit its listing application in July and has hired Holdings Ltd. to handle the share sale.

The listing plan comes as Canadian energy companies seek investments from investors in China amid rising demand for energy resources in the country. Last week, Toronto-listed Husky Energy Inc. said it is exploring a potential secondary listing of its shares on the Hong Kong stock exchange, home to the world's busiest IPO market last year and a market that is increasingly attracting companies outside the region.

Sunshine Oilsands, which was incorporated in early 2007 and isn't expected to produce any oil until next year, owns and controls 4,600 square kilometers of oil-sand leases in the Athabasca sands region in the Canadian province of Alberta.

The Athabasca region holds an estimated 170 billion barrels of a type of heavy crude oil that requires heat, steam or chemicals to extract it from sandy deposits. The oil sands make Canada the holder of the world's third-largest oil reserves, after Saudi Arabia and Venezuela.

One risk facing Sunshine is a land conservation plan unveiled by the Alberta government earlier this year that would expropriate a large section of the company's prospective oil sands land in order to preserve it as a caribou habitat. The conservation plan hasn't been finalized, and Sunshine is negotiating with the government over the scope of the conservation plan as well as potential compensation for seized land.

A Sunshine Oilsands executive wasn't immediately available for comment.

According to Sunshine's 2010 financial statement, the company lost 9.1 million Canadian dollars (US $9.2 million) last year, before accounting for future income-tax credits, and has a deficit of C$17.8 million.

China, the world's second-largest oil consumer after the U.S., has been investing aggressively in Canada's energy sector to fuel its rapidly growing economy. Chinese investment in oil sands has jumped as crude prices surged over the past year amid the global economic recovery, with prices now hovering near US $100.

Last year, state-owned Corp. bought a 9% stake in Syncrude, Canada's largest oil-sands project, for US $4.65 billion. In 2009, Co. purchased a stake in an Athabasca Oil Sands Corp. project for C$1.9 billion.

Sunshine Oilsands in March said it had raised C$230 million through investments from China Life Insurance (Overseas) Company Ltd., Bank of China Group Investment Ltd., Cross-Strait Common Development Fund Co., and several other investors.

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

Oil & Gas Post

Promote Your Page Too

BP: No Decision Taken to Sell Any of Its TNK-BP Shareholding

- BP: No Decision Taken to Sell Any of Its TNK-BP Shareholding

Tuesday, June 07, 2011
Dow Jones Newswires
by Alexis Flynn

BP said Tuesday it has no plans at present to divest any of its shareholding in TNK-BP Ltd.

BP's comments follow a report late Monday that the U.K. major was beginning preparations to sell part of its stake in the conflict-plaugued Russian venture to Rosneft in a bid to salvage a landmark cooperation deal with the Russian state oil company.

"BP has taken no decision to sell any of its shareholding in TNK-BP and there is no current intention to do so," a BP spokesman told Dow Jones Newswires.

Top BP executives notified the Russian billionaire shareholders in TNK-BP Monday that the U.K. company would soon send them a letter formally announcing the U.K. company's intention to sell down its 50% TNK-BP stake, the first step in such a sale, The Wall Street Journal reported Monday, citing people familiar with the situation.

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

Oil & Gas Post

Promote Your Page Too

Indian Offshore Companies Set Signt on Emerging Markets

- Indian Offshore Companies Set Signt on Emerging Markets

Tuesday, June 07, 2011
Knight Ridder/Tribune Business News
by Manu Balachandran, The Economic Times, India

Indian offshore companies are making substantial investments to acquire vessels to tap the oil exploration and drilling services market in emerging markets, led by Brazil, to scale up revenues in the coming years.

Domestic offshore companies led by Greatship India, Great Offshore, Essar Shipping and Global Offshore compete for contracts to be awarded by Petrobras, the world's largest deep-water and ultra-deep water oil producer. "The demand for vessels in Brazil is as much as 500 in the coming years and there is a market in excess of $30 billion, which can be tapped by Indian companies," said the MD of a leading domestic offshore player.

While 50% of the vessels deployed in Brazil are non-Brazil flag vessels, European and Asian companies have been actively pursuing the market for bigger tonnage and larger supply vessels.

Greatship India is awaiting the delivery of seven of its vessels, while Global Offshore has already planned to acquire two platform supply vessels by the next year at a cost of Rs. 500 crore. Bharati Shipyard-owned Great offshore will also look to raise its total fleet from the current 47. "While I cannot divulge the details of our further expansion plans, Great Offshore is targeting Brazil. We currently do not have any fleet in Brazil, but we are looking to enter the market in a big way, especially in the larger supply vehicles and anchor handling vessels," said PC Kapoor, MD of Great Offshore.

While parallels can be drawn between India and Brazil in terms of oil reserves in offshore, India has been lagging behind in exploration. "India's scale of operation in the offshore sector is about [th of what Brazil has and on a relative basis, this is inadequate," said Anjan Brahma, analyst at i-maritime consultancy. Sheth family-controlled Greatship India currently has a fleet size of 19 and is expected to scale up to 28 in the next two years, which is likely to be deployed in emerging markets such as Brazil and Australasia.

"We are looking at emerging markets such as Brazil and Australasia in terms of oil exploration and drilling services and subsea market. We were awarded a contract with Petrobras in collaboration with Fugro, which is estimated at a value of more than 450 crore for a five-year period," said Greatship India MD Ravi K Sheth. Smaller companies such as Global Offshore and Varun Shipping have also been in the race.

Varun Shipping recently signed a contract with Petrobras for three anchor handling towing and supply vessels. The deal was valued at Rs. 690 crore for the first four years, with another Rs. 690 crore to be paid in case of an extension.

Copyright (c) 2011, The Economic Times, India

Oil & Gas Post

Promote Your Page Too

Icon Drills Ahead at Lydia Well

- Icon Drills Ahead at Lydia Well

Tuesday, June 07, 2011
Icon Energy Ltd.

Icon announced that Lydia-12 has been drilled to a depth of 900 meters. Using a 1.8 gm/cc density cutoff a cumulative total of 8.9 meters of coal was penetrated in the well. Three drill stem tests were run to evaluate coal flow potential. All intervals indicated low permeabilities.

The Atlas Drilling Rig #2 has now moved 11 kilometers south east to the Lydia-13 location, which was spudded at 11:00am on Monday, June 6.

Lydia-13 is the last well in the four well drilling program in ATP626P designed to establish sweet spots for gas content, coal thickness and permeability.

The joint venture determined to not proceed with Lydia-12, which has now been plugged and abandoned.

Oil & Gas Post

Promote Your Page Too

Ensco Ups Revolving Credit Facilities to $1.9B

- Ensco Ups Revolving Credit Facilities to $1.9B

Tuesday, June 07, 2011
Ensco plc

Ensco has increased the commitments under its revolving credit facilities to a total of $1.9 billion. The commitment under a five-year credit facility is $1.45 billion. The commitment under a separate 364-day credit facility is $450 million.

Ensco also announced that it has increased the maximum amount of its unsecured commercial paper program from $700 million to $1.0 billion. The commercial paper program is backstopped by the revolving credit facilities.

Ensco completed its acquisition of Pride International, Inc. on 31 May 2011, as previously reported. The increased credit facilities and commercial paper program will facilitate the growth of the newly-combined company.

The notes to be offered by Ensco under the commercial paper program will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Oil & Gas Post

Promote Your Page Too

Delta Air Lines Reports Generally Higher May Traffic, Surpassing American Airlines

- Delta Air Lines Reports Generally Higher May Traffic, Surpassing American Airlines

Jun 7, 2011

Delta Air Lines (DAL) today posted its May traffic results, with system traffic up 2.2% from the year-ago month on a 2.2% increase in capacity making it the world's largest carrier by traffic, surpassing American Airlines. Load factor is still at 83.9%, which is flat with last year.

Domestic traffic also increased by 1.9% versus last year on a 0.4% increase in capacity. Load factor for domestic increased to 85.1%. International traffic is up 2.6% versus last year on a 5% capacity increase, with load factor down 2 points to 82.2%.

The higher traffic is due to the consolidation of Delta's subsidiary Northwest Airlines, which was completely integrated into Delta network in January of 2010.

DAL shares are down slightly 0.21% to $9.60.

Oil & Gas Post

Promote Your Page Too

Nido to Run Casing at Gindara Well

- Nido to Run Casing at Gindara Well

Tuesday, June 07, 2011
Nido Petroleum Ltd.

Nido, on behalf of the SC 54B Joint Venture, provided an interim update on the progress of the Gindara-1 well.

On June 7, 2011, the Gindara-1 well was preparing to run the 9 5/8" casing at the revised depth of 3,345 meters MD (3,323 meters TVDss) in the lower section of the Pagasa Formation just above the Nido Limestone primary reservoir objective. Progress since the last update has been 1,680 meters.

Whilst drilling the Pagasa Formation, the secondary Coron Clastics reservoir interval was encountered between 2,907 meters MD (2,885 meters TVDss) and 3,267.5 meters MD (3,245.5 meters TVDss), a gross thickness of 360.5 meters. This was approximately 33 meters deep to prognosis. Based on LWD logs (Logging While Drilling) the section is interpreted to be water-wet. Minor mudlog gas readings (C1 up to C4) were recorded throughout the secondary reservoir section.

The forward operation is to run and cement the 9 5/8" casing and then drill ahead into the primary Nido Limestone reservoir in the 8 ½" hole section, down to the planned Total Depth of 3,672 meters MD (3,650 meters TVDss). Running and setting the 9 5/8" casing is anticipated to take up to five days to complete.

Oil & Gas Post

Promote Your Page Too

Aminex Updates Ops at Ruvuma Basin

- Aminex Updates Ops at Ruvuma Basin

Tuesday, June 07, 2011
Aminex plc

Aminex announced plans for drilling a further exploration well in the Ruvuma Basin Production Sharing Agreement area of Tanzania. The well is designated Ntorya-1 and will be drilled in the Mtwara Block, in the southern part of the Ruvuma PSA.

Partners in the well are Tullow Oil (operator-50%), Aminex (37.5%) and Solo Oil (12.5%).

In 2010 the joint venture drilled the Likonde-1 well in the Lindi Block which forms the northern part of the Ruvuma PSA. Likonde-1 reached a total depth of 3,647 meters and intersected two sandstone intervals with a combined thickness of over 250 meters (820 feet), containing evidence of residual oil and gas. Likonde-1 was terminated due to high gas influx.

Ntorya-1 well will be drilled about 14 kilometers to the south of Likonde-1, to a planned total depth of 2020 meters, targeting the same high quality Lower Tertiary reservoir sands encountered in the Likonde-1 well. Seismic interpretation places the sands at Ntorya-1 structurally up-dip relative to Likonde-1. Aminex estimates that the well has a probability of success for the discovery of hydrocarbons of approximately 20%, with a mean recoverable resource potential of 100 million barrels oil equivalent.

The Tanzanian authorities have now formally approved the drilling of Nyorya-1 and a rig has been secured. Spud date is likely to be September-October this year.

Aminex chairman Brian Hall commented, "The Ruvuma basin is a significant frontier exploration area which has witnessed important discoveries offshore in the last two years, in neighboring Mozambique and most recently with BG's discovery in a deep water license directly adjoining the Ruvuma PSA. The Ruvuma PSA covers a large, mainly onshore area which has only been lightly explored to date and we welcome the approval of the Tanzanian authorities to the Ntorya-1 location which will enable an exciting drilling program to continue."

Oil & Gas Post

Promote Your Page Too

Sound Oil Farms-In to Montemarciano Permit

- Sound Oil Farms-In to Montemarciano Permit

Tuesday, June 07, 2011
Sound Oil plc

Sound Oil announced that, through its majority held subsidiary Apennine, it has concluded a Farm-In Agreement with Servizi & Assistenza Ricerche Petrolifere spa (SARP) to acquire an interest in the Montemarciano Permit located in Ancona Province, central Italy. The permit is currently operated by SARP with 100% working interest.

Under the terms of the Agreement, Apennine will pay SARP €215,000 ($290,000) as a contribution to past expenditures and fund the 100% cost of the Casa Tiberi-1 exploration well up to €800,000 ($1,080,000) to earn a 75% working interest in the permit and the Operatorship.

The well will be drilled to 700m to evaluate potential gas-bearing sands in the Lower Pliocene Cellino Formation. Fugro-Robertson Limited (FRL) has prepared a Competent Person's Report on the prospect and identify Base Case (P50) prospective resources of 5.7 Bscf, with High Case (P10) prospective resources of 14.9 Bscf. The geological chance of success is calculated at 35%. On a success case basis the potential value (NPV10) of the project is assessed to be $11.6 million for the Base Case and $37.1 million for the High Case.

All necessary approvals to drill the well from the relevant authorities have already been received by SARP. Work on the construction of the Casa Tiberi wellsite will commence as soon as land access is finalized. It is anticipated that the well will be drilled in 3Q-4Q this year.

Commenting on the above, Gerry Orbell, Chairman of Sound Oil said, "This deal gives us an early opportunity to drill a very low cost well to explore for gas resources which if successful in the P50 case should provide near term cash flow and in the high case will have a considerable impact on our assets base. The well will be drilled as an addition to the existing operations program, using funds previously raised by the Company earlier in 2011."

Oil & Gas Post

Promote Your Page Too

Breitling Spuds Well in Hardemann County

- Breitling Spuds Well in Hardemann County

Tuesday, June 07, 2011
Breitling O&G Corp.

Breitling has spud the Breitling-Stepp prospect in Hardemann County, Texas on May 28, 2011.

The Stepp NE well is scheduled to be drilled to a depth of approximately 8600' or to a depth sufficient to test the Mississippian Chappel reef. The Prospect is located 7 miles southeast of the Quanah townsite. The Mississippian-aged rock is a fractured, often vugular limestone which tends to be highly dolomitized.

Management anticipates the well will reach total depth in about 18 days. Well completion and testing should begin during the last week of June.

Breitling Oil and Gas CEO Chris Faulkner stated, "We are excited to continue our drilling efforts in Hardeman County with the Breitling-Stepp #1." Faulkner added, "The Mississippian Chappel has produced some great wells for us in the area and we feel confident that our 3D-seismic shoot has found another interesting anomaly within our acreage position here."

An additional 4 wells can be drilled if commercial production is found in the initial test well. Breitling has current oil and gas exploration projects all over the United States.

Oil & Gas Post

Promote Your Page Too

Ford Predicts 50% Global Sales Growth by 2015

- Ford Predicts 50% Global Sales Growth by 2015

Jun 7, 2011

Ford Motor Company (NYSE:F) said on Tuesday that it expects global sales to rise 50% by 2015 to 8 million vehicles annually, driven by rapid expansion in Asia and Africa as well as strong growth in sales of small cars.

Last year, Ford sold 5.3 million vehicles globally, predominantly in the U.S. and in European markets.

In contrast, the company's share in China, now the largest motor vehicle market by volume, is just 2.4%, while rival GM's share is 10%.

Ford is building a new plant in the city of Chongqing, China, with joint venture Changan Ford Mazda Automobile Co, and plans to set up a new engine plant there as well.

The company currently sells the Focus compact and Fiesta subcompact in China, but it plans to introduce 15 models and double the number of dealerships in the country to 680 by 2015.

Oil & Gas Post

Promote Your Page Too

OGX Anticipates 730,000 boepd by 2015

- OGX Anticipates 730,000 boepd by 2015

Tuesday, June 07, 2011

OGX announced the Company's business plan for the Campos and Parnaíba discoveries.

"Following OGX's discoveries and successful appraisal campaign in the Campos and Parnaíba basins, we are pleased to announce our business plan for the development and production of OGX's resources portfolio. The pro-forma liquidity of approximately US $5.1 billion of cash and cash equivalents that we have on hand will enable us to reach stable positive cash flows in 2014 and secure an estimated production of 730,000 boepd by the end of 2015," commented Paulo Mendonça, OGX's General Executive Officer and Exploration Officer. "We remain confident in our ability to continue executing our exploration and production plan in the coming years, while efficiently managing our cost base," added Mr. Mendonça.

In order to fund its exploration and production activities, OGX raised approximately US $8 billion, including US $1.3 billion through an equity private placement in 2007, an additional US $4.1 billion in the 2008 initial public offering (IPO), and a further US $2.563 billion through the senior unsecured notes offering announced on May 26, 2011.

Since its IPO, OGX has made the following important achievements in executing its business plan:
  • A significant increase in its portfolio's potential resources from 4.8 to 10.8 billion boe;
  • The drilling of 52 wells in the past 20 months with an overall success rate exceeding 90%;
  • An increase in the number of concessions from 21 to 34, of which 29 are located in Brazil and five in Colombia;
  • The expansion of the Company's concession acreage from approximately 7,000 km2 to 41,000 km2; and
  • A growth in the current number of employees to more than 250, while leveraging a total workforce of over 6,100 professionals.

As a result of the Company's financial discipline, OGX has maintained strong liquidity throughout all of its exploratory activities, with cash and cash equivalents of US $2.5 billion as of March 31, 2011. OGX expects that this level of liquidity, plus the US $2.563 billion of proceeds from the debt offering and its operating cash flows from production, will enable the Company to fully fund its production development of the discoveries already made and to reach stable positive free cash flows in 2014.

OGX's successful exploratory campaign has been followed by an intensive appraisal campaign in order to gather more information on the accumulations discovered and optimize the execution of the development plans, which were based on 4.2 billion boe already discovered in the Campos and Parnaíba Basins. Since the beginning of 2011, OGX has focused increasingly on the drilling of wells primarily in the contingent resource and delineation areas with the intent of converting 3C contingent resources into 2C and 1C, and ultimately into reserves.

In the Campos Basin, production will begin in the first project (Waimea complex) in October 2011, with anticipated production of up to 20,000 barrels per day (bpd) from the OGX-26 well. The second project (Waikiki complex) production is expected to begin in the fourth quarter of 2013. In 2013, the Company expects to have three Floating Production Storage Offloading "FPSOs" (OSX-1, OSX-2 and OSX-3) and two Wellhead Platforms "WHPs" (WHP-1 and WHP-2) in place with a total of ten horizontal production wells on-stream in these two projects.

The Company will adopt the best practices in the oil and gas industry in its production in order to avoid reservoir damage. OGX expects to achieve 150,000 bpd of production from the Campos Basin in 2013 in these two production complexes from 10 horizontal wells producing an average of 15,000 bpd each.

In addition to these three FPSOs, OSX has acquired two very large crude oil carriers (VLCCs), which will be converted into two FPSOs (OSX-4 and OSX-5). These equipment will be leased to OGX, with delivery expected in 2014. It is anticipated that both of these FPSOs will have approximately 1.3 million barrels of storage capacity and approximately 100,000 bpd of installed oil processing capacity.

The gas production ramp-up in the Parnaíba Basin is expected to begin in the second half of 2012. OGX has one project covering two accumulations in the PN-T-68 block, which is 46.7% owned by OGX, and is expected to achieve gross production of 5.7 million m3 of natural gas per day (approximately 200 million ft3 of natural gas per day), or approximately 36,000 barrels of oil equivalent per day (boepd) in 2013 (approximately 15,000 boepd net to OGX).

The Company anticipates that the Campos and Parnaíba current discoveries will be sufficient to support a production level of over 730,000 boepd. Considering OGX's estimated total potential resources portfolio of 10.8 billion boe, the Company forecasts that additional potential projects will enable it to reach a production level plateau of approximately 1.4 million boepd from 19 onwards. By 2019, when it is expected that OGX will utilize a total of 19 FPSOs, 24 WHPs and 5 TLWPs of offshore production equipment to reach the production levels depicted in the graph attached.

"We are excited to begin our production this year in the Campos Basin, having already secured the necessary equipment, staff and funding to produce the already discovered accumulations. In addition to our efforts in the Campos Basin, in April we submitted to the ANP our declaration of commerciality for two accumulations in the Parnaíba Basin, where we currently expect production to begin in the second half of 2012," commented Reinaldo Belotti, OGX's Production Officer. "At the same time, we continue to plan proactively for the long-term development of our diversified portfolio," added Mr. Belotti.

Campos Basin Development and Production

The general development concept for the Campos Basin shallow waters envisions that each development well will be dry-completed in a WHP producing to an FPSO. Given the significant number of OGX's discoveries and their similarities, the Company benefits from an accelerated procurement process through the use of FPSO flex production units which enable the processing of different oil qualities. In order to expedite the drilling process and accelerate production ramp-up, OGX has a strategy of pre-drilling an average of five horizontal wells per accumulation prior to the arrival of the WHPs using semi-submersible rigs. The remaining development wells in each accumulation will be drilled through the WHPs upon their arrival. The connection from the WHP to the FPSO will be made through a subsea flow line package, including production, electrical, gas lift, service, water injection and test lines.

OGX has thus far discovered several oil accumulations in the Campos Basin. From these accumulations, the Company expects to produce 4.1 billion barrels. To develop these accumulations, OGX expects to use 12 FPSOs and 11 WHPs.

For these accumulations, the Company anticipates a projected average field life capital expenditure of approximately US $2 per barrel and projected operating expenditure lower than US $16 per barrel.

Project 1 – Waimea Production Complex

This project is located at the BM-C-41 block, which is 100% owned by OGX, at a water depth of 140 meters and approximately 80 kilometers from shore. OGX expects to have three FPSOs and two WHPs operating at the Waimea complex, and production is expected to be achieved through a total of 42 development wells, including 28 production and 14 injection wells. In 2013, OGX expects to have the FPSOs OSX-1 and OSX-2, as well as the WHP-1 (all of which have already been secured), already under operation. The Company has acquired all of the necessary production equipment to be used in the initial production at the Waimea complex, including wet christmas trees and flexible lines. OGX anticipates the production for OSX-1 in the Waimea complex to come from three subsea production wells. Additionally, two subsea injection wells will be directly connected to this FPSO. The Company forecasts the average productivity from the horizontal wells in the Waimea complex to be in the range of 10,000 - 20,000 bpd.

Production is expected to begin in October 2011 through an extended well test (EWT) at the OGX-26 horizontal well. Until the expected arrivals of the WHP-1 in the first quarter of 2013 and the OSX-2 in the second quarter of 2013, the Company intends to produce from three horizontal subsea wells and from four pre-drilled horizontal production wells during 2012 and 2013. OGX expects OSX-2 to begin operations in the third quarter of 2013. In 2013, the Company expects to have 180,000 bpd of installed capacity and seven horizontal production wells on-stream, with three wells producing for OSX-1 and four wells producing for OSX-2.

Project 2 – Waikiki Production Complex

This project is located in BM-C-39 and BM-C-40 blocks, both of which are 100% owned by OGX, and is located at a water depth of 110 meters and approximately 90 kilometers from shore. OGX expects to have one FPSO and one WHP operating at this project, and production is expected to take place through a total of 22 development wells, including 14 production wells and eight injection wells. The Company expects to allocate to this project the OSX-3 and the WHP-2, which have already been secured, and anticipates an average productivity from the horizontal wells in the Waikiki complex in the range of 15,000-20,000 bpd.

Production in the Waikiki complex is expected to begin in the fourth quarter of 2013. In order to ensure a strong production ramp-up, OGX intends to pre-drill five horizontal production wells during 2012 and 2013, prior to the anticipated arrivals of the WHP-2 in the second quarter of 2013 and OSX-3 in the third quarter of 2013. The Company expects the OSX-3 to arrive and commence operations in the fourth quarter of 2013 and, as a result, by 2013 expects to have 100,000 bpd of installed capacity and three horizontal production wells on-stream producing to OSX-3.

Campos Basin Typical Development Project

Given the similarities between OGX's discoveries in the Campos Basin, the Company has established a replicable conceptual development project that should be considered as a reference for our future projects in the basin.

For OGX's replicable project in the Campos Basin, the Company has considered the following assumptions:
  • A location that is approximately 80 kilometers from shore in shallow waters ranging from 100-150 meters in depth;
  • A recoverable volume of 500 million bbl;
  • Due to the low gas-to-oil ratio, all of the produced gas will be used to generate energy on the platform;
  • Development through one FPSO of 100,000 bbl per day and one WHP with a drilling package on top and a drilling capacity for 30 wells (with the utilization of 25 wells);
  • Production through 16 horizontal production wells and nine injection wells, all to be completed from the WHP; and
  • Pre-drilling of five horizontal production wells from a semi-submersible rig prior to the drilling of the remaining 20 wells from the WHP.

The estimated capital expenditures unit cost for OGX's replicable project is approximately US $2 per barrel based on: (i) average drilling cost of a semisubmersible pre-drilled well will be approximately US $50 million; (ii) average cost of a WHP drilled well will be of approximately US $20 million; (ii) drilling time of 75 days for all wells; (iv) average of US $15 million per completion on the WHP; (v) completion time of approximately 30 days after the drilling of the wells; (vi) average of US $65 million for a package of subsea flow lines, including production, electrical, gas lift, service, water injection and test lines.

The estimated operating expenditures unit cost for OGX's replicable project is lower than US $16 per barrel based on: (i) one leased FPSO, constructed with high local content, at an estimated average day rate of approximately US $350,000; (ii) one leased WHP at an estimated average day rate of US $160,000; (iii) operating and maintenance of these equipment, mostly relating to the operation of the FPSO, at an estimated average day rate of approximately US $85,000; (iv) variable unit costs that are estimated at US $3.50 per barrel; and (v) expected abandonment cost that is estimated at US $100 million.

Once the development concept is in place, OGX expects each project to achieve a production plateau in three quarters, to maintain this plateau for an additional four years, and to have a 20 to 22 year production decline period following the plateau years.

Parnaíba Basin Development and Production

For OGX's onshore natural gas discoveries, the development concept includes vertical wells connected to a gathering system that will transport the gas to a gas processing unit through connection lines. Since the gas from the Company's initial discoveries has demonstrated characteristics of dry gas, the gas processing unit will be designed accordingly, making it simpler and less costly than a typical facility.

Project 1 – Gavião Azul and Gavião Real Fields

Project 1 is expected to begin producing gas in the second half of 2012, and OGX intends to ramp up production to achieve a gross flat production rate of 5.7 million m³ per day by 2013, which will correspond to a total production of 1.1 Tcf of gas. The Company plans to develop production with vertical wells connected to a gathering system that will take the gas to a dry gas treatment facility. This treatment facility is expected to be directly connected to the gas thermal power plants that are expected to be constructed by OGX's affiliate, MPX, which holds a 23.3% stake in these concessions.

Twenty months after the Parnaíba Basin concessions were granted, OGX declared to the National Petroleum Agency ("ANP") the commerciality of two accumulations (Califórnia and São José) in the PN-T-68 block, each of which are 46.7% owned by OGX. The Company expects Project 1 to include 23 production wells, some with re-completion during the production period, with a total estimated cost of US $340 million (including re-completion costs) and an estimated drilling and completion time of 55 days. The facilities involved in the development are estimated to cost approximately US $110 million, including a gathering system (lines and manifolds), a production facility for dry gas, and a very short pipeline.

The Company estimates the average operating cost for the field life to be less than US $0.30/1,000 ft3 (including operation and maintenance of production facilities, lines, gas pipelines, wells and gas variable costs). OGX anticipates that there will be 18 production wells on-stream in 2013.

Oil & Gas Post

Promote Your Page Too

Eni Commits to Additional Exploration, Development in Egypt

- Eni Commits to Additional Exploration, Development in Egypt

Tuesday, June 07, 2011
Eni S.p.A.

The Egyptian Minister of Petroleum Abdallah Ghorab and Eni COO Claudio Descalzi met in Cairo to support the renewed commitment of Eni towards exploration and development activities in Egypt, highlighting the importance of such commitment for both Egpc and Eni.

The additional activities will take place in the Western Desert, in the Mediterranean and in the Sinai, and will cover both development, through the drilling of additional wells and the acceleration of production from new discoveries, and exploration, by drilling 12 exploratory wells.

With these activities Eni's investments in Egypt for the current and subsequent years will amount to approximately US $3 billion. Eni will also sponsor a training plan for national staff working in the Petrobel and Agiba joint ventures with Egpc, with a commitment of US $4.5 million. Furthermore, in accordance with the Ministry of Petroleum, Eni will support the Sinai community with social activities.

Eni is the first international operator in Egypt with total operated production of round 500 thousand boe/day.

Oil & Gas Post

Promote Your Page Too

Blake Receives Contract in the Gulf of Mexico

- Blake Receives Contract in the Gulf of Mexico

Tuesday, June 07, 2011
Blake International USA Rigs

Blake International recently received a three-well contract for the rig Blake 1006, a 1000 horsepower self-erecting platform rig. W&T Offshore, Inc. is scheduled to commence mobilization to South Timbalier 316 in mid-July 2011. The rig is being made ready at Blake International's 44-acre yard and fabrication facility in Houma, Louisiana.

Blake International USA Rigs is a privately-held offshore drilling contractor with a fleet of nine platform rigs that work in both the Mexican and U.S. waters of the Gulf of Mexico.

Oil & Gas Post

Promote Your Page Too

General Motors' CEO Rallying for Higher Gas Taxes

- General Motors' CEO Rallying for Higher Gas Taxes

Jun 7, 2011

General Motors (NYSE:GM) CEO Dan Akerson recently spoke about the need for the federal government to boost the gast tax by as much as $1 per gallon in order to push consumers toward more fuel efficient vehicles. Akerson also believes the government will get rid of its remaining 26% stake in the company in the next six to 12 months.

Oil & Gas Post

Promote Your Page Too

Navistar Reports Mixed Q2, Tightened Guidance Shows Upside vs. Estimates

- Navistar Reports Mixed Q2, Tightened Guidance Shows Upside vs. Estimates

Jun 7, 2011

Navistar International Corporation (NYSE:NAV) reported Q2 EPS of $1.02 today, falling short of the consensus estimate for $1.17 per share. Revenues for the quarter grew 22.3% year-over-year to $3.35 billion, above the consensus estimate for $3.30 billion.

Daniel C. Ustian, Navistar chairman, president and chief executive officer said, "The second quarter results represent good earnings and strong cash flow from operations while building to deliver to our 2011 and beyond objectives. We continue to see increasing customer acceptance of all our engine and vehicle families, confirming we have the right strategy in place and that we will deliver full year results toward the higher side of our previous guidance."

For the full year, the company tightened its guidance, and now sees 2011 EPS of $5.50 to $6.00, vs. the consensus estimate for $5.46 per share.

Oil & Gas Post

Promote Your Page Too

Paradise Well Sings for Hess Offshore Ghana

- Paradise Well Sings for Hess Offshore Ghana

Tuesday, June 07, 2011
Hess Corp.

Hess has filed a Notice of Discovery with the Minister for Energy of Ghana for the Paradise-1 exploration well in the Deepwater Tano / Cape Three Points license, offshore Ghana. The well encountered an estimated 490 net feet of oil and gas condensate pay over three separate intervals.

The well was drilled to a total depth of 16,436 feet in a water depth of 6,038 feet. Hess is the operator and has a 90 percent interest in the license, with Ghana National Petroleum Corporation (GNPC) holding the remaining 10 percent.

Hess will evaluate the well results and work with GNPC and the government of Ghana to plan future appraisal drilling.

Oil & Gas Post

Promote Your Page Too

Statoil Discovers Gas in North Sea

- Statoil Discovers Gas in North Sea

Tuesday, June 07, 2011
Norwegian Petroleum Directorate

Statoil, operator of production license 050B, is in the process of completing the drilling of wildcat well 34/10-53 A. The well has been drilled about five kilometers west of the Gullfaks Sør field, in the northern part of the North Sea.

The well is a sidetrack from wildcat well 34/10-53 S, where a gas/condensate discovery was made earlier this year.

The purpose of the well was to prove petroleum in Middle Jurassic reservoir rocks (the Brent group).

Gas was encountered in an approx. 170-meter column in the upper part of the Brent group (the Tarbert formation). The well was not formation tested, but data collection and sampling was carried out. Preliminary estimates of the size of the discovery range between 0.4 and 1.2 million standard cubic meters (Sm3) of recoverable oil equivalents. The licensees are considering tie-in of the discovery to existing infrastructure in the Gullfaks area.

Production license 050B was awarded as a supplement to the third licensing round in 1978. The well was drilled to a vertical depth of 3959 meters below sea level and terminated in the Dunlin group in Middle Jurassic rocks.

Water depth at the site is 136 meters. The well will now be permanently plugged and abandoned.

Well 34/10-53 A was drilled by the Deepsea Atlantic drilling facility. The rig will now continue drilling for Statoil Petroleum AS in the southern part of the Gullfaks Sør field in production license 050.

Oil & Gas Post

Promote Your Page Too