Oil & Gas Post - All News Report for Tuesday, June 28, 2011

Tuesday, June 28, 2011

• Commodity Corner: Oil Up on Greek Optimism
• Inpex Gets AU Govt OK for Ichthys Project
• Samson O&G Briefs on Rodney Well Completion
• Dockwise Lands Contragt for Gorgon Project
• CGX Welcomes New Board Member
• Denbury to Take Remaining Stake, Steer Riley Ridge Project
• Drilling Started at Kea's Well in Surat Basin
• Penn Virginia Disappointed by Initial Marcellus Production Rates
• AF Group Awarded Decommissioning Work Offshore Germany
• Prosafe Enters LOI with Talisman for MSV Regalia
• Havila Shipping to Take Ownership of 5 Platform Supply Vessels
• CGGVeritas to Expand Fleet with 6 BOURBON Support Vessels
• KS Energy Secures Contract for Jackup
• N. Dakota Official: Floods Have Idled 5 Rigs, Shut Down 45 Wells
• UBS Initiates Coverage of Tesoro With $23 Target, Neutral Rating
• UBS Initiates Coverage of Western Refining With $17 Target, Neutral Rating
• Cimarex Entered Into An Agreement To Sell Its Interest In RIley Ridge Federal Unit and Gas Plant
• Moody's Cuts Toyota's Credit Rating to Aa3
• Mustang Completes Engineering Gig at Eni Nikaitchuq Facility
• Southern Union Sharing Information With Williams in Defiance of Energy Transfer
• UBS Initiates Coverage of Valero Energy with Buy Rating, $33 Price Target
• Petrobras Commences EWT Test at Aruana Area
• Consumer Confidence Falls to Lowest Level in Eight Months
• Ophir Spuds Kora-1 Well
• E. On Spins Bit at Breiflabb Prospect
• UBS Upgrades Spectra Energy to Buy, Maintains $34 Target Price
• General Electric appoints new Chief Engineer for GE Aviation
• Alamo Adds Appalachian Acreage
• MEO Acquires Interest in Indonesia
• Kulczyk Oil Notes Initial Test Results at O-9 Well
• PDC Energy Announced It Entered Into Merger Agreements
• U.S. Officially Endorses Christine Lagarde to Head IMF
• Coastal Confirms Net Pay at Buan Ban North B Field
• Red Emperor to Begin Drilling Georgia Well in Early July
• Fluor Bags EPCM Services Contract for Woodside's AU Gas Assets
• Sound Oil Passes Test at Marciano Well
• Krafla West Delivers for Statoil
• Repsol, Partners Make Discovery Offshore Brazil
• China Ministry Held First Shale Gas Block Auction Monday -Official

Oil & Gas Post

Promote Your Page Too

Commodity Corner: Oil Up on Greek Optimism

- Commodity Corner: Oil Up on Greek Optimism

Tuesday, June 28, 2011
Rigzone Staff
by Saaniya Bangee

Oil prices rallied Tuesday on a weaker dollar and optimism that Greece's debt crisis would soon be resolved.

Light, sweet crude gained 2.52 percent Tuesday, the biggest one-day gain in nearly six weeks. Despite the violent protests in Athens, investors remain confident that Greece's parliament will pass additional austerity measures. Analysts believe the vote will affect not only the neighboring countries but the entire European Union.

The euro rose against the greenback as fears eased over Greece's debt crisis. A weaker dollar makes the dollar-denominated commodity cheaper for buyers with foreign currencies. However, gains were limited due to an uncertainty in the long-term situation.

After fluctuating between $90.44 and $92.96, crude for August delivery settled at $92.89 a barrel.

In London, Brent crude settled up $2.79 to $108.78 a barrel.

Front-month natural gas advanced 9 cents ending Tuesday's trading session at $4.36 thousand cubic feet. Prices fluctuated between $4.25 and $4.38 on forecasts of above-average temperatures.

Gasoline futures settled at $2.89 a gallon ahead of the July contracts' expiration on Thursday.

Oil & Gas Post

Promote Your Page Too

Inpex Gets AU Govt OK for Ichthys Project

- Inpex Gets AU Govt OK for Ichthys Project

Tuesday, June 28, 2011
Inpex Corp.

The Australian Government's decision to grant environmental approval to the Ichthys Project is a welcome step forward and helps pave the way for a final investment decision in the fourth quarter of 2011.

INPEX President Director Australia Seiya Ito said Federal environmental approval represents a significant milestone for the project following a rigorous three year assessment process, comprehensive environmental studies and extensive engagement with the community and other stakeholders.

"We are committed to developing and operating the Ichthys Project in an environmentally and socially responsible manner and will continue to work closely with the government and community as we progress the project," Mr. Ito said.

The decision today by the Minister for Sustainability, Environment, Water, Population and Communities, the Hon. Tony Burke, follows the Northern Territory Government's announcement in May that the environmental impacts of the planned Ichthys development in Darwin can be managed within acceptable limits.

"I would like to acknowledge both the Australian and Northern Territory governments for their thorough environmental assessment process," Mr. Ito said. "The input we received from government and the community during the process resulted in improved outcomes for all stakeholders."

The proposed Ichthys Project includes a subsea production system, semi-submersible central processing facility, a floating production, storage and offtake vessel located at the Ichthys Field in the Browse Basin, approximately 200 kilometers off the northwest coast of Western Australia, and onshore gas processing facilities at Blaydin Point, Darwin, Northern Territory. An 885km subsea gas pipeline will link the offshore and onshore facilities.

Oil & Gas Post

Promote Your Page Too

Samson O&G Briefs on Rodney Well Completion

- Samson O&G Briefs on Rodney Well Completion

Tuesday, June 28, 2011
Samson O&G Ltd.

Samson O&G advised that the Rodney #1-14H has been turned to production following the successful fracture stimulation and completion. The work over rig was released on June 25th after all of the fracture isolation plugs were drilled out without incident. The maximum 24 hour measured oil rate during the drill-out operation was 1,439 BOPD.

The Rodney #1-14H well is located in Township 154N, Range 99W, Section 14 in Williams County, North Dakota.

HAWK SPRINGS PROJECT, WYOMING - DEFENDER US 33 #2-29H (37.5% WORKING INTEREST)

Operations commenced on the Defender well with the initiation of the construction of the well pad in preparation for the arrival of the Evergreen 42 drilling rig which is expected to arrive on location on July 16th with an anticipated spud of July 19th. The Defender well will be the first appraisal of the Niobrara B zone and will be fracture stimulated following the completion of a 4,500 foot horizontal.

The Defender US 33 #2-29H well is located in Township 25N, Range 63W, Section 29 in Goshen County, Wyoming.

Oil & Gas Post

Promote Your Page Too

Dockwise Lands Contragt for Gorgon Project

- Dockwise Lands Contragt for Gorgon Project

Tuesday, June 28, 2011
Dockwise Ltd.

Dockwise Ltd. announced 11 awards totaling USD 42 million, all for execution in 2Q and 3Q 2011. The USD 42 million comprises contracts for transportation of dredging equipment to Spain and Uruguay, a Power Barge and jackup barges to the Dominican Republic and Egypt, jackup rigs to Gabon, Mexico and Trinidad, a semi-submersible to Vietnam and three contracts pertaining to the transportation of multiple barges and tugs to Brazil and Colombia.

Moreover, it can now be confirmed that one of the intended awards - briefly referred to in our 1Q 2011 release and at that time included in the backlog additions on an anonymous basis - has been converted into a firm contract for the Gorgon project. Dockwise was awarded a contract on the Chevron-operated Gorgon Project on Barrow Island, off the coast of Western Australia. The contract will start in early 2012 and encompasses the transport of onshore LNG modules. Dockwise's Mighty Servant III has been assigned to the Gorgon Project.
The value of the contract is approximately USD 26.7 million.

André Goedée, Chief Executive Officer of Dockwise, commented, "Operating activity remained subdued in the second quarter of 2011, reflecting industry-wide conditions. However, compared to the first quarter, Dockwise noted a further upturn in inquiries and bookings for spot market projects be it still on low cycle pricing levels. We continue to be actively engaged in tendering for longer term projects. In that respect the Gorgon award is considered another important ingredient in improving our long-term backlog."

The Gorgon Project is operated by an Australian subsidiary of Chevron and is a joint venture of the Australian subsidiaries of Chevron (approximately 47 percent), ExxonMobil (25 percent) and Shell (25 percent), Osaka Gas (1.25 percent), Tokyo Gas (one percent) and Chubu Electric Power (0.417 percent). Dockwise will publish 2Q and interim 2011 results on August 19, 2011.

Oil & Gas Post

Promote Your Page Too

CGX Welcomes New Board Member

- CGX Welcomes New Board Member

Tuesday, June 28, 2011
CGX Energy Inc.

CGX announced that Mr. David Christian has been appointed to the Company's Board of Directors.

Mr. Christian has had an impressive 30-year career in the international E&P industry. He is a lawyer registered with the Texas and Oklahoma Bar Associations, providing strategic and operational consulting for domestic and international petroleum Companies. Until its takeover in 2006, he was the Vice President, Land and Negotiations for Kerr-McGee Oil & Gas Corporation. With the American Petroleum Institute, he has been a member of the Executive Committee for Exploration Access; with the American Association of Professional Landmen he has been a member of the Outer Continental Shelf Committee; and with the Association of International Petroleum Negotiators, a member of its Board of Directors. Mr. Christian graduated with a Bachelor of Science in Mechanical Engineering from the Arizona State University and a Juris Doctorate from the University of Tulsa.

"David's knowledge as a lawyer and experience as an officer of a major international oil and gas company will be invaluable in guiding our management team in our interactions with industry partners and our host government in Guyana. We look forward to his participation on our Board," stated Kerry Sully, Chairman of CGX.

"I am extremely pleased to join the Board of CGX. CGX has an exciting portfolio of oil and gas opportunities and I look forward to contributing to the success of the Company," said David.

Oil & Gas Post

Promote Your Page Too

Denbury to Take Remaining Stake, Steer Riley Ridge Project

- Denbury to Take Remaining Stake, Steer Riley Ridge Project

Tuesday, June 28, 2011
Denbury Resources Inc.

Denbury has entered into an agreement to acquire the 57.5% working interest it does not already own in the Riley Ridge Federal Unit located in southwestern Wyoming, and an approximate 33% working interest in an additional +/-28,000 acres of mineral leases adjoining the Riley Ridge Unit. The total purchase price is estimated at $191 million assuming full payout of purchase price contingencies, plus capital incurred between April 1, 2011, the effective date of the purchase, and closing. The acquisition is expected to close in late July and is subject to satisfactory completion of customary due diligence review.

Transaction Highlights

• The acquisition includes a 57.5% working interest in the 9,700+ acre Riley Ridge Federal Unit and an approximate 33% working interest in an additional +/- 28,000 acres of mineral leases adjoining the Riley Ridge Unit. Denbury will become the operator of both projects. The Company currently estimates that the Riley Ridge Federal Unit contains proved reserves of 250 billion cubic feet (Bcf) of natural gas, 8.9 Bcf of helium (He) and approximately 1.4 trillion cubic feet (Tcf) of carbon dioxide (CO2), net to the interest to be acquired. The additional +/- 28,000 acres is estimated to contain additional probable reserves of 250 to 300 Bcf of natural gas, 9.5 to 11.5 Bcf of helium and 1.0 to 1.2 Tcf of CO2, net to the interest to be acquired.
• Total proved plus probable CO2 reserves in the Riley Ridge Unit and adjoining acreage in which the Company has an interest is estimated at approximately 6.1 Tcf (100% working interest), of which the Company's interest is estimated at approximately 4.5 Tcf after completion of this acquisition.
• The Riley Ridge Unit and the adjoining acreage is located in the prolific LaBarge Field, from which natural gas, helium and CO2 are currently being produced and sold, which is also the same reservoir from which the Riley Ridge Unit will produce.
• First production of natural gas and helium is expected to occur during the 4th quarter of 2011.
• The development costs associated with the incremental interest in the Riley Ridge Unit are expected to add approximately $50 million to the Company's 2011 capital spending, depending upon how much capital is spent between the April 1 effective date and closing.
• Current operations include the completion of the producing wells and completion of the construction of the natural gas and helium processing facilities that will separate the natural gas and helium from the full well stream, which consists of approximately 65% CO2, 19% natural gas, 5% hydrogen sulfide (H2S), 0.6% He, and the remainder other gases. Initially the operational plans include the re-injection of the CO2 and H2S into the producing formation until a planned CO2 pipeline can be built to the field.
• This acquisition results in Denbury becoming the operator of the project and owning 100% of the working interest in the Riley Ridge Unit. In addition to owning and operating the Riley Ridge Unit, the Company is also acquiring operations and working interests in an adjoining 28,000 acres of which the Company previously only acquired CO2 rights. The Company has initiated the engineering and design of the CO2 capture facility for the Riley Ridge Unit, which is estimated to initially capture up to 130 MMcf/d of CO2. In addition to designing the CO2 capture facility for Riley Ridge the Company expects to begin preparing the development plan for the adjoining acreage, which when fully developed is expected to add an additional 450 to 500 MMcf/d of CO2 (100% working interest), or an estimated total CO2 production from this asset of 580 to 630 MMcf/d (100% working interest). The development plan to achieve these rates may take up to 10 years.
• The purchase price of $191 million consist of a $176 million payment at closing and a $15 million contingent payment to be paid at the time the gas processing facility is operational and meeting specific performance conditions. The existing operator is committed to maintaining and committing the existing development and construction teams to the project until such time as the specific performance conditions are met in order to provide continuity through start-up of the gas processing facility.
• Over the past 15 months, Denbury has been actively securing new sources of CO2 volumes and, with its new acquisition of Riley Ridge and the adjoining acreage, currently believes it has more CO2 than it needs to develop its existing CO2 enhanced oil recovery assets in the Rocky Mountains. These estimated CO2 volumes consist of the following:
  • Riley Ridge ultimate planned capacity - 580 to 630 MMcf/d (Own and Operate)
  • Lost Cabin – 50 MMcf/d (under contract from ConocoPhillips)
  • LaBarge – 50 MMcf/d (under contract from ExxonMobil)
  • Proposed DKRW facility - 200 MMcf/d (under contract from DKRW)
• The Company plans to fund the acquisition through borrowings on its existing bank credit facility.

Phil Rykhoek, CEO of Denbury, commented, "This acquisition combined with our contracts for CO2 from third parties, provides us with the necessary volumes of CO2 to develop our current Rocky Mountain CO2 EOR projects, plus additional volumes which can be used for future projects. With this acquisition, we will control this strategic asset, our 'Jackson Dome' of the Rockies. In one sense, Riley Ridge is even better than Jackson Dome as the projected methane and helium sales should pay for its development and the cost to extract and compress the CO2. We are about to begin construction on our first CO2 pipeline in this area, the Greencore line from Lost Cabin to Bell Creek. We should have our first tertiary oil production from this region in the next couple of years, most likely first from the recently acquired Grieve Field joint venture, followed soon thereafter by Bell Creek. We have come a long way in the Rockies in the last fifteen months and look forward to continued success in this region."

Oil & Gas Post

Promote Your Page Too

Drilling Started at Kea's Well in Surat Basin

- Drilling Started at Kea's Well in Surat Basin

Tuesday, June 28, 2011
Kea Petroleum plc

Kea Petroleum announced that the Hoadleys-1 exploration well in the ATP837P license area in Australia's onshore Surat Basin was spudded on June 25, 2011, and has already run and set surface casing to 254m.

It is anticipated that the well will be drilled to a total depth of 2,200m by late July 2011, and will test for oil in the Lower Evergreen and Precipice Sands. Both of these targets are producers in the nearby Moonie oil field.

In the event of success Kea's gross median reserve estimate is approximately one million barrels, with a potential upside of up to several million barrels.

Oil & Gas Post

Promote Your Page Too

Penn Virginia Disappointed by Initial Marcellus Production Rates

- Penn Virginia Disappointed by Initial Marcellus Production Rates

Tuesday, June 28, 2011
Penn Virginia Corp.

Penn Virginia updated its activities in the Marcellus Shale.

Peak 24-hour production rates from our first three Marcellus horizontal wells, the Risser #A-1H, Risser #A-2H and Dunn #A-1H, were approximately 3.1, 2.8 and 4.0 million cubic feet (MMcf) per day, with an average rate over a 72-hour test period of 2.1, 1.7 and 2.7 MMcf per day, respectively. These three test wells are located in the central portion of our approximately 35,000 net acre position in Potter and Tioga Counties, Pennsylvania. Pipeline construction is in progress with sales expected to begin by early August. One additional well in the western portion of our acreage is currently waiting on completion. During the second half of 2011, we plan to test, initially with vertical wells, the eastern portion of our acreage, comprised of approximately 20,000 net acres.

H. Baird Whitehead, President and Chief Executive Officer, stated, "The Marcellus Shale test wells had initial production rates which fell short of our expectations. We will monitor longer term production once these wells are turned into the pipeline and determine if the reserves can support a development program in this immediate area. As important, we will begin testing our eastern acreage position during the second half of the year."

Oil & Gas Post

Promote Your Page Too

AF Group Awarded Decommissioning Work Offshore Germany

- AF Group Awarded Decommissioning Work Offshore Germany

Tuesday, June 28, 2011
AF Group

The AF Group has been awarded a Letter of Intent with Statoil, on behalf of Gassco as operator, regarding removal and recycling of the Norpipe H7-platform.

The platform is located at the German continental shelf of the North Sea, and has been a part of the pipeline which exports gas to Europe. The Letter of Intent covers planning, engineering, removal and demolition of the installation. The Letter of Intent also includes an option to decommission a similar platform, B11.

Environmental Base Vats on the west coast of Norway will be used as decommissioning site. The site is Europe's most modern decommissioning facility for decommissioned offshore installations.

The contract value is approx. NOK 420 million, excl. abovementioned option works. A condition for the contract is a final decision by the ownership Gassled on the implementation of the removal project.

The work will start immediately, and is planned to conclude by the end of 2016.

"The AF Group has built up expertise and capacity to handle removal and recycling of obsolete petroleum installations. It is therefore a recognition that Statoil, on behalf of Gassco, has chosen us for this mission. The work lays the foundation for further growth within our environmental business in the North Sea," said Pål Egil Rønn, CEO of the AF Group.

Oil & Gas Post

Promote Your Page Too

Prosafe Enters LOI with Talisman for MSV Regalia

- Prosafe Enters LOI with Talisman for MSV Regalia

Tuesday, June 28, 2011
Prosafe SE

Prosafe has been awarded a Letter of Intent ("LOI") by Talisman Energy for a 107 day contract using the MSV Regalia for accommodation support at the Yme facility in the Norwegian sector of the North Sea. On site operations are planned to commence early November 2011.

Total value of the contract for the firm period linked to the LOI is about USD 34 million.

Oil & Gas Post

Promote Your Page Too

Havila Shipping to Take Ownership of 5 Platform Supply Vessels

- Havila Shipping to Take Ownership of 5 Platform Supply Vessels

Tuesday, June 28, 2011
Havila Shipping ASA

Havila Shipping has entered into an agreement with its controlling shareholder Havila AS and Havila AS' wholly-owned subsidiary Havvåg AS for the purpose of transferring Havila AS' indirect ownership interests in the five platform supply vessels MV Havila Fortune, MV Havila Aurora, MV Havila Borg, MV Havila Commander and MV Havila Crusader (the "PSVs") to the Company (the "Transaction").

The transfer of the ownership interest in the PSVs to the Company will be carried out through a transfer of the shares in subsidiaries of Havila AS and interests in Havila PSV DIS as contribution in kind against the issue of shares in the Company.

Havila AS' ownership interests in the PSVs are primarily held by private limited companies, wholly- or partly-owned subsidiaries of Havila AS, which in turn hold ownership interests in the partnerships owning the PSVs, provided, however, that Havila AS holds some interests directly in Havila PSV DIS (the "SPVs").

Following completion of the Agreement, the Company will, indirectly, be the owner of 40% in MV Havila Crusader and MV Havila Commander, 49% in MV Havila Borg and 50% in MV Havila Aurora and MV Havila Fortune. MV Havila Aurora, MV Havila Borg and MV Havila Fortune are currently managed by the Company (commercial and technical management), while MV Havila Commander and MV Havila Crusader are on 8-year bareboat charters to the Company. All PSVs are currently operational and on contracts of variable lengths, with remaining duration between two months and five years, offering a balanced market exposure.

The acquisition of a controlling stake in the two PSVs currently leased, MV Havila Commander and MV Havila Crusader is expected to improve earnings significantly through a reduction of net leasing costs, which is currently approximately NOK 100 million annually, and improving the overall financial structure of the Company through replacing leasing with traditional financing.

The acquisition of three additional PSVs, MV Havila Aurora, MV Havila Borg and MV Havila Fortune, is also considered favourable as the Company already operates all of these PSVs, with solid operating performance. These PSVs have remaining contract durations of approximately two months, one year and five years (plus options), respectively, providing Havila Shipping with growth at a favourable
entry point for expansion in the supply market, and at the same providing balanced contract mix.

The financing of all PSVs will be continued under new ownership.

As part of the transactions, the Company will cancel the Total Return Swap on approximately 1.05 million shares. The reason for this, is that the Company having such financial exposure to its own share price is outside the key business scope of the Company.

The SPVs and the PSVs

The Company's acquisition of ownership interests in the PSVs will be carried out through the transfer of Havila AS' shares and interests in the following companies:

• Havship I AS - MV Havila Fortune
  • The Company will acquire 100% of the shares of Havship I AS ("Havship I"), which in turn holds 50% of the outstanding ownership interests in P/R Havship DA, a Norwegian partnership with apportioned liability and business registration number 993 442 003 ("PR Havship I").
  • PR Havship I owns the PSV MV Havila Fortune. MV Havila Fortune is a PSV MT6009 MkII (3,205 dwt), which was built in 2008. It is on contract with Maritime Logistic Services AS until August 2011, and has an option for 3 further wells.
  • The board of directors of Havship I comprises Per Sævik as chairman and sole board member and Njål Sævik as deputy board member. Per Sævik is also the general manager. There are no employees in Havship I.
• Havila Aurora AS - MV Havila Aurora
  • The Company will acquire 100% of the shares of Havila Aurora AS ("Havila Aurora"), which in turn holds 50% of the outstanding ownership interests in P/R Havship II DA, a Norwegian partnership with apportioned liability and business registration number 894 084 782 ("PR Havship II").
  • PR Havship II owns the PSV MV Havila Aurora. MV Havila Aurora is a PSV MT6009 MkII (3,205 dwt), which was built in 2009. It is on contract with Total until March 2016, with an additional option for 2 years.
  • The board of directors of Havila Aurora consists of Per Sævik (chairman), Njål Sævik, Hege Sævik Rabben and Vegard Sævik. Per Sævik is also the general manager. There are no employees in Havila Aurora.
• Havila Borg AS - MV Havila Borg
  • The Company will acquire 100% of the shares of Havila Borg AS ("Havila Borg"), which in turn holds 49% of the outstanding ownership interest in P/R Havship III DA, a Norwegian partnership with apportioned liability and business registration number 994 760 890 ("PR Havship III").
  • PR Havship III owns the PSV MV Havila Borg. MV Havila Borg is a PSV Havyard 832 (4,000 dwt), which was built in 2009. It is on contract with Shell until July 2012 with a 1 year option.
  • The board of directors of Havila Borg consists of Per Sævik (chairman), Njål Sævik and Kjell Rabben. Njål Sævik is also the general manager. There are no employees in Havila Borg.
• Havila PSV AS and Havila PSV DIS - MV Havila Commander and MV Havila Crusader.
  • The Company will acquire 37%, and indirectly (through its wholly owned subsidiary Havila PSV AS ("HPSV AS")) an additional 3%, of the outstanding ownership interest in Havila PSV DIS, a Norwegian silent partnership ("HPSV").
  • HPSV controls the PSVs MV Havila Commander and MV Havila Crusader. MV Havila Commander and MV Havila Crusader are both PSV VS485 (4,900 dwt), which were built in 2010. MV Havila Commander is on contract with ConocoPhilips until mid July 2011, then three months with Maersk Oil & Gas and MV Havila Crusader is on contract with Talisman until November 2011 with two six-month options.
  • The boards of directors of HPSV AS and HPSV consist of Svein Sandvik (chairman), Njål Sævik and Richard Jansen. There are no employees in any of these companies.

PR Havship I, PR Havship II, PR Havship III and HPSV are jointly referred to as the "Partnerships".

Further, the Company intends to increase its ownership in the PSVs to 100% of MV Havila Fortune, Havila Aurora and Havila Borg and 74% of the ownership interests in Havila PSV DIS (MV Havila Commander and MV Havila Crusader) through an acquisition from the third party owners of Partnerships against cash consideration, provided, however, that Mavi VX shall transfer its shares in the partnerships owning MV Havila Aurora, MV Havila Borg and MV Havila Fortune to Havila Shipping as contribution-in-kind against shares in Havila Shipping. The calculation in these acquisitions shall be calculated on the same basis as the consideration in this Transaction.

[No agreements have been, or will be, entered into in connection with the Agreement for the benefit of the parties' board members or management.]

The consideration and settlement

The consideration in the Transaction comprises the aggregate value of the shares transferred to Havila Shipping, which for each of the SPVs is calculated on the basis of (i) the market value of the PSVs as of December 31, 2010 (based on shipbroker valuations as of March 31, 2011, and for MV Havila Commander and MV Havila Crusader also reflecting the Company's purchase options starting in
2012), (ii) value adjusted equity related to the other assets and liabilities in the relevant Partnerships as of December 31, 2010, and (iii) the net profit excluding depreciations of the relevant Partnership in the period from January 1, 2011 to July 19, 2011. The purchase price will comprise the total value of each Partnership adjusted for the percentage of ownership interests not transferred to Havila Shipping.

Based on the above and an agreed total value for the 5 PSVs in the amount of NOK 1,503 million on a 100% basis, the aggregate value of the shares transferred to Havila Shipping is expected to amount to NOK 149.7 million, which is subject to adjustments for the actual net profit in the period up to July 19, 2011.

The subscription price for each share issued to Havila AS against contribution in kind will be equal to the subscription price in the Company's contemplated private placement announced on June 27, 2011. The indicative price range in the private placement is between NOK 52.50 and NOK 57.50, and the final subscription price will be determined by the Board of Directors after completion of the book-building period, expected to end on July 1, 2011.

The number of shares to be issued to Havila AS as consideration for the contribution-in-kind with an aggregate value of NOK 149.7 million and a subscription price at the mid-point of the price range (i.e. NOK 55), is 2,721,203 shares.

The shares will be issued by the Board of Directors pursuant to its authorization to increase the share capital of the Company granted by the general meeting held on April 28, 2011.

Oil & Gas Post

Promote Your Page Too

CGGVeritas to Expand Fleet with 6 BOURBON Support Vessels

- CGGVeritas to Expand Fleet with 6 BOURBON Support Vessels

Tuesday, June 28, 2011
CGGVeritas

CGGVeritas has signed a five-year marine charter agreement with BOURBON for six new support vessels to assist its seismic operations. The new vessels will be delivered starting at the end of 2012.

Jean-Georges Malcor, CEO of CGGVeritas, said, "This agreement to charter vessels to support our seismic acquisition operations is another step in our ambitious plan to improve the performance of our fleet and streamline the number of our maritime partners. CGGVeritas will benefit from the expertise of the BOURBON group and its commitment to the highest standards of operating quality and safety worldwide."

"We are delighted to have been chosen by CGGVeritas, which comes as further confirmation of BOURBON's capacity to adapt to meet the needs of its clients," announced Christian Lefèvre, CEO of BOURBON. "At the same time, this agreement emphasizes BOURBON's recognized expertise in the design and management of marine service vessels. The construction of a new segment of vessels for our fleet fits perfectly with the investments we are making under the BOURBON 2015 strategic plan."

The chartered vessels will support CGGVeritas seismic vessels during their survey operations around the world, by providing them with the requisite ancillary services including refueling, crew change, food and equipment delivery, storage, assistance, and support during in-sea maintenance operations. In addition, their unique hybrid propulsion will offer exceptional operational flexibility and low energy consumption.

Oil & Gas Post

Promote Your Page Too

KS Energy Secures Contract for Jackup

- KS Energy Secures Contract for Jackup

Tuesday, June 28, 2011
KS Energy Ltd.

KS Energy announced that its wholly-owned subsidiary, Atlantic Rotterdam Limited, has secured a 1 plus 1 year bareboat charter contract worth up to Euro12 million (including the 1 year option) for its Jackup Offshore Accommodation rig Atlantic Rotterdam. The Rig will be deployed for Shell in the UK sector of the North Sea and is expected to commence work on August 1, 2011.

Oil & Gas Post

Promote Your Page Too

N. Dakota Official: Floods Have Idled 5 Rigs, Shut Down 45 Wells

- N. Dakota Official: Floods Have Idled 5 Rigs, Shut Down 45 Wells

Tuesday, June 28, 2011
Dow Jones Newswires
HOUSTON
by Angel Gonzalez

Bad weather, flooding and road restrictions are disrupting oil production in North Dakota, shutting down the transportation by rail of 50,000 barrels a day of crude, a state official said.

"No one was prepared to deal with floods that are breaking records set 130 years ago," said Lynn D. Helms, director of the North Dakota Industrial Commission's Department of Mineral Resources said in an e-mail sent late Monday. Helms said the temporary shutdown of the rail transportation will last until it can be re-routed west, but didn't give an estimate as to when that might occur.

The weather has forced the shut in of 45 wells and idled five drilling rigs and is delaying the arrival of service crews to 500 wells waiting to be fractured, Helms said.

North Dakota sits atop the Bakken Shale, one of the richest deposits of oil in the U.S.--but one that requires intensive fracturing activity to yield crude. Last year, it produced an average of about 307,000 barrels of oil per day.

Michael Marino, an analyst with the investment bank Stephens, said moving drilling supplies in and crude out of the oil patch is the main problem in the Bakken.

"Overall the biggest impact has been on the (exploration and production companies)trying to get oil out of the region because service companies have been able to work around issues to some extent," he said.

Bad weather and flooding have affected not only energy production, but also the agricultural sector and have severely damaged several cities, including Minot, in the western part of the state, where many residents had to evacuate.

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

Oil & Gas Post

Promote Your Page Too

UBS Initiates Coverage of Tesoro With $23 Target, Neutral Rating

- UBS Initiates Coverage of Tesoro With $23 Target, Neutral Rating



Jun 28, 2011

UBS initiated coverage of Tesoro Corp (NYSE:TSO) today with a neutral rating and a $23 price target for the company.

Shares of Tesoro are trading up 2.17% at $21.63.

Tesoro has a potential upside of 35.3% based on a current price of $21.63 and an average consensus analyst price target of $29.27.

Tesoro is currently below its 50-day moving average (MA) of $23.86 and should find support at its 200-day MA of $20.02.

Oil & Gas Post

Promote Your Page Too

UBS Initiates Coverage of Western Refining With $17 Target, Neutral Rating

- UBS Initiates Coverage of Western Refining With $17 Target, Neutral Rating



Jun 28, 2011

UBS initiated coverage of Western Refining (NYSE:WNR) today with a $17 price target and a neutral rating on the company.

Shares of Western Refining are trading up 3.13% at $17.12.

Western Refining has a potential upside of 23.2% based on a current price of $17.12 and an average consensus analyst price target of $21.1.

Western Refining is currently above its 50-day moving average (MA) of $16.38 and above its 200-day of $12.42.

Oil & Gas Post

Promote Your Page Too

Cimarex Entered Into An Agreement To Sell Its Interest In RIley Ridge Federal Unit and Gas Plant

- Cimarex Entered Into An Agreement To Sell Its Interest In RIley Ridge Federal Unit and Gas Plant



Jun 28, 2011

Cimarex (NYSE:XEC) announced that it entered into an agreement to sell for $191 million its 57.5% operated working interest in the Riley Ridge Federal Unit and gas plant located in southwestern Wyoming. The sale is expected to close in July and is subject to satisfactory completion of customary due diligence.

The sale does not impact the company's expected 2011 production estimates, as the plant was not expected to come online until later this year.

Cimarex Energy has a potential upside of 39.2% based on a current price of $86.76 and an average consensus analyst price target of $120.73.

Oil & Gas Post

Promote Your Page Too

Moody's Cuts Toyota's Credit Rating to Aa3

- Moody's Cuts Toyota's Credit Rating to Aa3



Jun 28, 2011

Moody's Investors Service cut Toyota's credit rating one level to Aa3 today, the rating service's fourth highest rating.

The agency cited the company's slow slog towards profit recovery in the face of shrinking market share, a historically very strong yen, and high raw material prices.

Moody's said another downgrade was possible because Toyota's ratings "incorporate one notch of support from the country's banks and government, which are themselves under review for possible downgrade."

The company's May production levels still reflect the complete devastation wrought on the company, and the country, by the March 11 earthquake and tsunami, as worldwide production was still down 49.3% from a year ago.

Toyota said its production is up to 90% of normal levels now, and it plans to bring that number nearer to 100% in July.

Shares of Toyota Motor are trading up 0.4% at $80.06.

Toyota Motor has a potential upside of 15.4% based on a current price of $80.06 and an average consensus analyst price target of $92.4.

Oil & Gas Post

Promote Your Page Too

Mustang Completes Engineering Gig at Eni Nikaitchuq Facility

- Mustang Completes Engineering Gig at Eni Nikaitchuq Facility

Mustang, a Wood Group company, provided the detail engineering, design and procurement services for two processing modules for the new Eni Nikaitchuq processing facility on the North Slope of Alaska, 60 miles west of Prudhoe Bay. The facility, which began oil production in late January 2011, has a treatment capacity of 40,000 BPD oil, 41,000 BPD produced water, 56,000 BPD source water and 6.1 MMscfd gas. In addition, the facility has a water injection capacity of up to 90,000 BPD water. Nikaitchuq is Eni's first operated development in Alaska.

Weighing approximately 4,000 tons each, the process and utilities modules were built in Louisiana and transported on barges through the Panama Canal to Alaska. The facility was designed to process 16-19 API oil with up to 2% sand content, to operate in –50°F arctic temperatures, to comply with the International Building Code, and to have minimal impact on the environment. These facilities allow Eni to ship sales-quality crude oil through the Trans-Alaska oil pipeline.

Mustang also provided detailed engineering for the integrated control and safety systems for the facility.

Oil & Gas Post

Promote Your Page Too

Southern Union Sharing Information With Williams in Defiance of Energy Transfer

- Southern Union Sharing Information With Williams in Defiance of Energy Transfer



Jun 28, 2011

Southern Union Co (NYSE:SUG) has begun the process of providing takeover suitor Williams Cos. (NYSE:WMB) with confidential business information, according to a filing today with the SEC.

That's despite a warning from the company's original acquisition partner Energy Transfer Equity (NYSE:ETE) that doing so would be in violation of their signed agreement.

Williams offered $4.9 billion, all in cash, for Southern Union last week.

While Energy Transfer maintains that its $4.2 billion offer is still superior due to its deferred tax structure, things aren't looking good for the company.

Shares of The Williams Cos are trading up 2.33% at $29.47.

Oil & Gas Post

Promote Your Page Too

UBS Initiates Coverage of Valero Energy with Buy Rating, $33 Price Target

- UBS Initiates Coverage of Valero Energy with Buy Rating, $33 Price Target



Jun 28, 2011

UBS initiated coverage of Valero Energy Corp (NYSE:VLO) today with a buy rating and a $33 price target for the company.

Shares of Valero Energy are trading up 2.32% at $24.25.

Valero Energy (NYSE:VLO) has a potential upside of 41.3% based on a current price of $24.25 and an average consensus analyst price target of $34.27.

Oil & Gas Post

Promote Your Page Too

Petrobras Commences EWT Test at Aruana Area

- Petrobras Commences EWT Test at Aruana Area

Tuesday, June 28, 2011
Petrobras

Petrobras has started producing oil in the Aruanã area, in the post-salt layer of the southern area of Campos Basin, through well 1-RJS-661, located in Block C-M-401. The FPSO Cidade de Rio das Ostras, which operates in the area, will produce up to 12 thousand barrels of oil per day, limited to the capacity of equipment used.

The test of well 1-RJS-661 belongs to the Discovery Assessment Plan (PAD), approved by Petroleum Agency (ANP) for the subsequent development of the area. The exploratory block C-M-401 is located between Pampo and Espardarte fields, in water depths ranging from 350 to 1,500 meters. The formation tests, which were carried out after the drilling of well 1-RJS-661, in March, 2009, evidenced the occurrence of 27 °API oil and recoverable volumes of approximately 280 million barrels of oil.

The EWT of Aruanã will be accomplished during approximately six months. The findings of the tests will aid the studies in order to better characterize the reservoir-rock, fluids and productive potential of oil accumulations in the block.

Oil & Gas Post

Promote Your Page Too

Consumer Confidence Falls to Lowest Level in Eight Months

- Consumer Confidence Falls to Lowest Level in Eight Months



Jun 28, 2011

The Conference Board's Consumer Confidence Index declined again in June, down to 58.5 from an upwardly revised 61.7 in May, its lowest level in eight months.

Economists had been expecting a much smaller drop to 60.5. The Present Situation Index fell to 37.6 from 39.3, and The Expectations Index decline to 72.4 from 76.7.

Lynn Franco, Director of The Conference Board Consumer Research Center said, "This month's decline in consumer confidence was driven by a less favorable assessment of current conditions and continued pessimism about the short-term outlook. Consumers rated both current business and labor market conditions less favorably than in May, and fewer consumers than last month foresee conditions improving over the next six months. Inflation fears eased considerably in June, but concerns about income prospects increased. Given the combination of uneasiness about the economic outlook and future earnings, consumers are likely to continue weighing their spending decisions quite carefully."

Consumers were pessimistic about the job market over the next six months, as just 14.2% now anticipate more jobs over the next six months, down from 16.7% last month, while the number of people expecting fewer jobs remained unchanged at 20.3%.

Oil & Gas Post

Promote Your Page Too

Ophir Spuds Kora-1 Well

- Ophir Spuds Kora-1 Well

Tuesday, June 28, 2011
Rocksource ASA

Rocksource announced that drilling of the Kora-1 well has commenced on the AGC Profond PSC, offshore Senegal and Guinea Bissau.

The AGC Profond PSC covers the deepwater area (9,838 sqkm) that is jointly administered by Senegal and Guinea Bissau. The AGC Profond PSC partnership consists of Ophir Energy plc (Operator, 44.2 percent), Noble Energy (30 percent) First Australian Resources (8.8 percent), L'Entreprise AGC S.A. (12 percent) and Rocksource AGC Profond AS (5 percent).

Oil & Gas Post

Promote Your Page Too

E. On Spins Bit at Breiflabb Prospect

- E. On Spins Bit at Breiflabb Prospect

Tuesday, June 28, 2011
Rocksource ASA

Rocksource announced that the drilling rig Borgland Dolphin has commenced drilling on the Breiflabb prospect in PL 416 in the Norwegian part of the North Sea.

The PL 416 partnership consists of E.ON Ruhrgas (Operator and 50 percent working interest), Det norske oljeselskap (15 percent) and Rocksource (35 percent).

Oil & Gas Post

Promote Your Page Too

UBS Upgrades Spectra Energy to Buy, Maintains $34 Target Price

- UBS Upgrades Spectra Energy to Buy, Maintains $34 Target Price



Jun 28, 2011

UBS upgraded Spectra Energy Partners LP (NYSE:SE) to buy from neutral today and maintained its $34 target price for the stock.

The bank cited valuation, as a 6% slide year-to-date provides an attractive entry point. The slide is due in part to a recent equity raise to fund its Big Sandy Pipeline purchase.

The company has a proven strategy and visible distribution growth, with ample distribution coverage, and a track record of successful acquisitions as well as organic growth initiatives, according to UBS.

Spectra Energy has a potential upside of 12.9% based on a current price of $26.68 and an average consensus analyst price target of $30.11.

Oil & Gas Post

Promote Your Page Too

General Electric appoints new Chief Engineer for GE Aviation

- General Electric appoints new Chief Engineer for GE Aviation



Jun 28, 2011

Gary D. Mercer, 52, has been named VP and Chief Engineer for GE Aviation (NYSE:GE). Mercer will provide leadership for flight safety and airworthiness, serving as the key interface with our external customers that govern flight safety and certification processes. Mercer has been with GE for 26 years. He began his career with Aviation as a Design Engineer for Military and Commercial Structures before moving to GE Energy where he held several key leadership positions including Senior General Manager Engineering for Oil & Gas and Renewables before rejoining the Aviation business in 2011.

Oil & Gas Post

Promote Your Page Too

Alamo Adds Appalachian Acreage

- Alamo Adds Appalachian Acreage

Tuesday, June 28, 2011
Alamo Energy Corp.

Alamo announced the acquisition of approximately 2,500 acres in Knox County, Kentucky.

The acquisition falls inline with Alamo's strategy of becoming a significant player in the Appalachian basin. The new acreage is located contiguous to existing acreage and infrastructure allowing for new wells to be tied into Alamo's 23-mile pipeline that has a capacity of up to 9,000,000 cubic feet per day.

Utilizing Alamo's in-house drilling company, we believe that the new acreage will allow for an additional 125 wells targeting the Devonian Shale and Big Lime formations based on 20-acre spacing.

Allan Millmaker, Chief Executive Officer, commented, "While our strategy is to expand aggressively in the Appalachian basin, we are always looking to maximize returns. The new acreage will allow us to take advantage of potential cost savings not only at the drilling and completion stage but also when on production because of the proximity to existing Alamo infrastructure."

Oil & Gas Post

Promote Your Page Too

MEO Acquires Interest in Indonesia

- MEO Acquires Interest in Indonesia

Tuesday, June 28, 2011
MEO Australia Ltd.

MEO Australia announced the expansion of its business portfolio by acquiring all of the shares in Transworld Seruway Exploration Limited (TSEL) which is the holder of a 100% participating interest in the offshore Seruway PSC, from Transworld Exploration Limited (TEL). Initial consideration for this acquisition is US $5.0 million cash. In the event of successful oil or gas development from the PSC, the acquisition arrangements provide for past cost recovery and net profit interest payments to TEL to be paid out of production revenue.

The Seruway PSC currently covers an area of 3,635 km2 and contains two gas discoveries (Gurame and Kuala Langsa) together with a number of exploration opportunities. The PSC is located close to the Arun LNG plant which has near term unfilled capacity. Under the acquisition arrangements, MEO has committed to acquire a 700km2 3D seismic survey and drill one exploration well in the PSC before the end of 2012. The PSC expires on December 11, 2014 and will be operated out of the Indonesian office that MEO acquired as part of the transaction.

Oil & Gas Post

Promote Your Page Too

Kulczyk Oil Notes Initial Test Results at O-9 Well

- Kulczyk Oil Notes Initial Test Results at O-9 Well

Tuesday, June 28, 2011
Kulczyk Oil Ventures Inc.

Kulczyk Oil updated its activities at the Olgovskoye-9 well.

Highlights 

• a secondary target in the Lower Bashkirian reservoir section (the R37 unit) tested at a maximum rate of 1,200 thousand cubic feet per day ("Mcf/d") of gas through a 6mm choke and a stabilized rate of 762Mcf/d through a 5mm choke
• the successful testing of the R37 unit amounts to a new discovery as no reserves or resources have been previously attributed to the units within the Lower Bashkirian reservoir
• primary targets in the Middle Bashkirian section of the well are now ready for testing

R37 Reservoir Unit Discovery

The testing of the O-9 well started with a 5.5 meter thick reservoir unit in the Lower Bashkirian reservoir at a depth of approximately 2,560 meters(the R37 unit). While the R37 unit was a secondary target, it is interpreted to be present across the Olgovskoye license area. Consequently a successful test has material implications for Kulczyk Oil Ventures Inc. (the "Company" or "KOV")as no reserves or resources are currently attributed to this reservoir unit or other similar Lower Bashkirian units within the Olgovskoye license.

A 2 meter section of the R37 unit was perforated and tested over two periods of time. The first test (Test #1) flowed at a rate of 1,200 Mcf/d of gas through a 6mm choke and during Test #2 the R37 unit flowed at a stabilized rate of 762Mcf/d of gas through a 5mm choke. This is the first time that commercial rates of gas have been produced from the Lower Bashkirian reservoir section lying below the main producing horizons of the Olgovskoye field. The Company currently believes that the Lower Bashkirian reservoir section is composed of more than 7 reservoir units running across the Olgovskoye license area. While the Company believes that generally speaking the units in the Lower Bashkirian reservoir will require some form of stimulation to produce commercial rates of gas, it is notable that the R37 unit flowed commercial rates of gas without any form of stimulation and this successful test opens up a potential new resource base for the Company.

The Company's preliminary internal estimate of new Reserves for the R37 unit zone is more than 4 billion cubic feet ("Bcf"). RPS Energy plc, the Company's independent engineering consulting firm, has not assigned any Reserves or Resources to the Lower Bashkirian reservoir section of the Olgovskoye field area in past reports.

Progress of Testing Operations

The Company will now carry on testing of the primary Middle Bashkirian targets which produce elsewhere in the Olgovskoye Field. Testing will proceed shortly and is expected to be completed by the end of July.

The O-9 Well

The O-9 well is located approximately 1.2 kilometers to the northwest of the O-8 well. The O-9 well commenced drilling on March 5th and reached a total depth ("TD") of 2,638meters on April 4, 2011. The well was designed to test gas-bearing reservoirs in the Middle Bashkirian and further develop the gas production capability of the Olgovskoye Field.

The O-9 well was the second new well drilled in the Olgovskoye field since the Company acquired its interest in KUB-Gas in June 2010. It is part of a larger development program on the KUB-Gas assets through 2011. Olgovskoye-8, the first new well drilled, reached a TD of 2,780 meters in early January and encountered numerous gas zones. Testing of the O-8 will commence later in the third quarter after the testing of the O-9 well has been completed.

Dr. Trent Rehill, Vice President Geosciences of KOV stated that "the Company is very pleased with the initial test results of the O-9 well and is excited about the potential for growth in our gas reserves and production from units in the Lower Bashkirian reservoir".

Oil & Gas Post

Promote Your Page Too

PDC Energy Announced It Entered Into Merger Agreements

- PDC Energy Announced It Entered Into Merger Agreements



Jun 28, 2011

PDC Energy (NASDAQ:PETD) announced it has entered into merger agreements pursuant to which it intends to acquire five limited partnerships for which the company serves as the Managing General Partner. Four of the limited partnerships were formed in 2003 and one was formed in 2002.

The company will acquire all limited partnership units if the proposed mergers are approved and other customary conditions to closing are satisfied.

PDC Energy expects the total cost to consummate all five mergers will be about $29.5 million.

Oil & Gas Post

Promote Your Page Too

U.S. Officially Endorses Christine Lagarde to Head IMF

- U.S. Officially Endorses Christine Lagarde to Head IMF



Jun 28, 2011

The U.S. government officially endorsed French Finance Minister Christine Lagarde to be the next chief of the International Monetary Fund today, just hours before a meeting of the fund's board.

Treasury Secretary Tim Geithner said in a statement, "Minister Lagarde's exceptional talent and broad experience will provide invaluable leadership for this indispensable institution at a critical time for the global economy. We are encouraged by the broad support she has secured among the Fund's membership, including from the emerging economies."

The decision seals Ms. Lagarde's appointment, as she now has explicit support from nations representing half of the IMF's votes.

Lagarde had virtually sealed the position already, having secured support from many European nations early on, and winning endorsements from key emerging countries such as Indonesia and Egypt, as well as several other Africa nations.

Her only serious competition, Mexican Central Bank chief Agustin Carstens, won endorsements from several emerging countries in Latin America. He won official support from 3 nations with board seats; Mexico, Canada, and Australia, which together represent 12% of the board.

Oil & Gas Post

Promote Your Page Too

Coastal Confirms Net Pay at Buan Ban North B Field

- Coastal Confirms Net Pay at Buan Ban North B Field

Tuesday, June 28, 2011
Coastal Energy Co.

Coastal Energy announced the results of two wells drilled at the Bua Ban North B field, offshore Thailand.

The Bua Ban North B-08 well was drilled to a total depth of 5,900 feet TVD and encountered 92 feet of net pay with 28 percent porosity and 25 percent water saturation in the Miocene interval. The B-08 well was drilled on the easternmost fault block of the field and successfully appraised the discovery made by the B-03 well. As a result of the B-08 drilling, the lowest known oil was moved 140 feet lower in this fault block.

The B-07 well was drilled as a water injection well and to establish the oil water contact in the field. The B-07 encountered the oil water contact at 3,824 feet, which was in line with the prognosis based upon previous drilling results. Pressure and log data from the B-08 well indicate that the oil water contact may be deeper on the eastern side of the field.

Randy Bartley, Chief Executive Officer of Coastal Energy, commented, "The results of the B-07 and B-08 wells serve as further confirmation of the Miocene trend in the Songkhla basin. Updated mapping based on drilling results indicates that the structural closure at Bua Ban North B is approximately 2,800 acres in size. The positive appraisal of the eastern fault block has major implications for the extension of this field as it has significantly increased the prospectivity along the major eastern Miocene fault which extends over three kilometers between Bua Ban North A & B.

"The drilling rig is going to mobilize to the Songkhla H prospect next, which is a commitment well outside of the two established production areas on G5/43. We will proceed with the installation of the mobile offshore production unit to begin production at Bua Ban North B once the rig is off location."

Oil & Gas Post

Promote Your Page Too

Red Emperor to Begin Drilling Georgia Well in Early July

- Red Emperor to Begin Drilling Georgia Well in Early July

Tuesday, June 28, 2011
Red Emperor Resources NL

Red Emperor provided the following update on activities in Georgia with respect to the drilling of its first exploration well.

The exploration drilling rig and associated equipment that will be used for the Company's two well exploration program arrived at the port of Poti in Georgia recently and is now on site being erected with a scheduled spudding date of early July. A total of 40-50 personnel will be conducting the drilling program on a 24 hour basis.

This Mukhiani well is targeting the Vani 3 prospect which has a best estimate of oil in place in excess of +115mbbls (with 23MMbls attributable to Red Emperor's 20% interest). This prospect was also the subject of the geochemical helium survey completed by Actual Geology earlier this year with the results identifying a positive presence of helium anomalies across the prospect that indicate the presence of a working hydrocarbon system.

The Mukhiani well is targeting a depth of approximately 3,500m and is expected to reach target depth within 45-55 days, and is the first of a two well highly prospective exploration drilling program to be completed by the Company this year.

Oil & Gas Post

Promote Your Page Too

Fluor Bags EPCM Services Contract for Woodside's AU Gas Assets

- Fluor Bags EPCM Services Contract for Woodside's AU Gas Assets

Tuesday, June 28, 2011
Fluor Corp.

Fluor has finalized a major services agreement with Woodside Energy Limited to provide engineering, procurement and construction management (EPCM) services for Woodside's operating assets. Fluor's initial contract term is for three years, with the option of three one-year extensions available. The undisclosed value will be booked in the second quarter of 2011.

The contract allows Fluor to perform sustaining capital projects for Woodside's Production Projects Group. The EPCM scope of services includes all activities that may be undertaken throughout the project life cycle. The engineering services will be performed in Fluor's Perth, Australia, office with implementation and construction related work at the respective Woodside asset.

"Fluor looks forward to delivering engineering and support services to the rapidly growing liquefied natural gas industry," said Kirk Grimes, president of Fluor's Global Services Group. "This opportunity allows us to expand our range of services to Woodside, for whom we are currently providing engineering and design services at the Browse Basin off the coast of Australia."

"This is the culmination of a relationship-building process our account team began with Woodside two years ago," said Bill Wasilewski, vice president of Fluor's Global Services Group. "The agreement enables us to leverage the expertise of Fluor's oil and gas business with our ongoing operations and maintenance services expertise."

Through its Fluor Offshore Solutions unit, Fluor is currently providing front-end engineering and design (FEED) to Woodside for the Browse LNG Development, which is located about 425 kilometers north of Broome off the northwest coast of Australia.

Oil & Gas Post

Promote Your Page Too