Crude Oil Price by oil-price.net

Oil and Gas Energy News Update

Thursday, September 1, 2011

Oil & Gas Post - All News Report for Thursday, September 01, 2011

Thursday, September 01, 2011


Oil & Gas Post

Promote Your Page Too
LINK

Commodity Corner: Crude Up on Weather Threat

- Commodity Corner: Crude Up on Weather Threat

Thursday, September 01, 2011
Rigzone Staff
by Saaniya Bangee

Despite shaky equities and a rising dollar, crude futures inched modestly higher Thursday on weather reports of a storm brewing in the Gulf of Mexico.

October oil added 12 cents to its final price tag, settling at $88.93 a barrel on the New York Mercantile Exchange. Oil traded as low as $88.21 a barrel after an earlier intraday peak of $89.90.

The National Hurricane Center reported an 80 percent chance that a tropical wave in the Gulf of Mexico could develop into a tropical cyclone within the next 48 hours. Oil majors such as Shell, ExxonMobil, BP, Anadarko and BP have evacuated nine platforms in the Gulf of Mexico and shut in nearly 80,000 barrels of oil production, according to the Bureau of Ocean Energy Management, Regulation and Enforcement. In addition, 127 million cubic feet per day of natural gas was also shut in.

In other forecasts, initial unemployment claims fell by 12,000 to 409,000 last week. Data reported by the Labor Department helped boost optimism about the economy.

Brent crude, which is used to price many international oil varieties, lost 56 cents to settle lower at $114.29 barrel on fresh concerns over Greece's debt problems. The intraday range for Brent was $113.89 to $115.31 a barrel on the ICE future exchange.

Natural gas for October delivery remained unchanged at $4.05 per thousand cubic feet Thursday.

Gasoline gained 1.64 cents for the first trading session for the October contract. Reformulated gasoline settled at $2.89 a gallon. Some East Coast refineries remain shut down due to Hurricane Irene. Prices fluctuated between $2.85 and $2.92 Thursday.

Oil & Gas Post

Promote Your Page Too
LINK

Libya Oil Contracts Won't Be Political Favors - NTC

- Libya Oil Contracts Won't Be Political Favors - NTC

Thursday, September 01, 2011
Dow Jones Newswires
LONDON
by James Herron

New contracts to produce oil and gas in Libya won't be awarded as political favors, but will be given to companies on merit after an open bid process, the U.K.-based coordinator and spokesman for the rebel National Transitional Council said Thursday.

"Oil contracts will be awarded on merit, not political favoritism," said Guma El-Gamaty in a telephone interview with Dow Jones Newswires. New oil contracts will be published and international companies invited to bid, he said.

French newspaper Liberation reported Thursday, citing a letter to the Emir of Qatar, that the NTC had promised "to assign 35% of [Libya's] crude oil to France in exchange for its total and permanent support of our council."

French Foreign Minister Alain Juppe told the paper he "had no knowledge" of a "formal accord" but it was "logical" that countries like France which helped the NTC take power should take part in reconstruction.

El-Gamaty declined to comment on the report.

International oil companies, including France's Total, will most likely continue to play a prominent role in Libya's oil sector because of their long experience producing oil in the country already, El-Gamaty said.

"We expect them to be bidding," he said.

French oil company Total's Chief Executive earlier said he wasn't aware of such a deal.

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

Oil & Gas Post

Promote Your Page Too
LINK

InterMoor Clinches Mooring System Offshore Vietnam

- InterMoor Clinches Mooring System Offshore Vietnam

Thursday, September 01, 2011
Aceton Group Ltd.

InterMoor, an Acteon company, was awarded a prelay mooring system by Petro Vietnam Technical Services (PTSC) for a project offshore Vietnam, announced InterMoor President Tom Fulton.

The prelaid mooring spreads were installed in July for the two offshore Vietnam locations. The moorings for each location consisted of eight conventional lines with insert wire, grounded chain and eight 12T Stevpris NG Anchors. In total, InterMoor successfully prelaid 29 anchors including 13 piggybacks in less than two weeks on both locations.

InterMoor worked in cooperation with a local Vietnam company, Thiennam Offshore Services, who chartered DOF Subsea's vessel, the Skandi Hercules, to perform the mooring installations.

The PVD 5 Tender-assisted Drilling Rig will arrive on location in October 2011 and be moored to the prelaid spread. Water depths at the locations range from 118m (387 ft.) to 135m (443 ft.).

"This is our first project offshore Vietnam and we had the full support of PTSC for the entire project duration," said Rick Luck, General Manager for InterMoor's Singapore office. "This project offers InterMoor the opportunity to further expand in this region, while continuing its focus on international growth."

Oil & Gas Post

Promote Your Page Too
LINK

Global Petroleum CEO Embarks On Appointment

- Global Petroleum CEO Embarks On Appointment

Thursday, September 01, 2011
Global Petroleum Ltd.

Global Petroleum advised that Mr. Peter Hill has commenced his appointment as Managing Director and Chief Executive Officer of the Company.

Mr. Hill's immediate focus will be to expedite the exploration of Global's highly prospective oil and gas exploration interests in offshore Namibia following completion of the acquisition of Jupiter Petroleum Limited on August 26, 2011. The Company is currently completing its review of historical seismic data with a view to participating in a new seismic survey in the coming months.

Mr. Hill will be based in the Company's office in London. Please refer to the announcement dated August 2, 2011 for further details on Mr. Hill's appointment.

Commenting on taking up his appointment, Peter Hill said, "I am delighted to be joining Global Petroleum at such a pivotal time for the Company. With production established in the USA and significant exploration opportunities in Africa, especially offshore Namibia, Global Petroleum has an active and very exciting future."

Oil & Gas Post

Promote Your Page Too
LINK

Fox Petroleum Names New President

- Fox Petroleum Names New President

Thursday, September 01, 2011
Fox Petroleum Inc.

Fox Petroleum announced that Mr. James R. Renfro has joined the company as its President effective August 30, 2011.

Mr. James R. Renfro, 51, the owner and managing member of Renfro Energy, LLC has been in the oil business for nearly thirty years. His oil and gas background includes six years with Exxon Company, USA as a petroleum engineer, one year in the Strategic Planning group of Shell Oil, and two years as an energy investment banker with EnCap Investments. Mr. Renfro served for two years as Chief Executive Officer of a small publicly traded company, Omni Oil and Gas, Inc., and has spent more than eighteen years as a private owner and operator of independent oil and gas companies located throughout Texas and Louisiana. Jim has done nearly $20 million dollars in private oil and gas transactions during the past two decades. Jim received his MBA in Finance from The University of Chicago and spent three years in New York City as an investment banker in the corporate finance department at Dean Witter Reynolds Inc./Morgan Stanley.

Oil & Gas Post

Promote Your Page Too
LINK

BMT Snags Decommissioning Support Gig for CNRI

- BMT Snags Decommissioning Support Gig for CNRI

Thursday, September 01, 2011
BMT Group Ltd.

BMT Cordah, subsidiary of BMT Group Ltd, has been awarded a major contract by Canadian Natural Resources International (CNRI). This project will see BMT provide vital support and guidance for the environmental aspects during two of CNRI's decommissioning projects, both of which are currently in the planning and consenting phase.

CNRI's Murchison and Ninian Northern fields located in the northern North Sea have both been in operation since the early 1980s. To ensure compliance with the requirements of key legislation and regulations set out by the UK Department of Energy and Climate Change (DECC), CNRI turned to BMT to draw upon its expertise and knowledge of decommissioning projects which includes Shelley, North West Hutton and Maureen Alpha and dates back to 1995.

As part of its support, BMT will develop the necessary documentation to inform project decisions, assess and manage environmental issues and ultimately support CNRI's decommissioning programs submission to DECC for approval. This includes: register of environmental permits, licenses and consents; decommissioning waste management strategy; assessment of energy use and gaseous emissions; drill cuttings pile management assessment; comparative assessment of pipeline and jacket decommissioning options; EIA (Environmental Impact Assessment) scoping report and subsequent Environmental Statement.

David Sell, Managing Director of BMT Cordah, commented, "The North Sea hosts almost 600 offshore platforms of which 54% are more than 15 years old. The average age of the decommissioned platforms in the North Sea to date is 17 years, indicating that decommissioning will become an increasingly significant issue in the region over the next decade. With strong experience in offshore operations, impact assessment and consenting procedures, our team of decommissioning experts are ideally placed to inform and manage the project for organizations such as CNRI."

Oil & Gas Post

Promote Your Page Too
LINK

AGR Notes New Drilling Technology and Growth Strategy

- AGR Notes New Drilling Technology and Growth Strategy

Thursday, September 01, 2011
AGR Group ASA

AGR Group is embarking on a new growth strategy that will allow it to maximize opportunities presented by today's market conditions. The strategy, announced by Skogen at Pareto, focuses on new technology and closer working relationships across divisions and markets.

AGR Group is launching a new technology which enables safer, cost-effective drilling of wells where reservoir conditions require more precise bottom-hole-pressure management. The EC-Drill® technology, which can be used off both fixed and floating rigs, is expected to enable further growth across the businesses.

Skogen's Pareto address signaled the official launch of this technology, "As a leading provider of technologies for demanding drilling and well operations, we are focused on developing new solutions which can enhance our customers' operations. With some reservoirs located a further 5,000 to 10,000 meters below the seabed, it is imperative that our equipment can handle very high pressures and temperatures."

Skogen also plans to bring the company's drilling technology and petroleum services divisions together to form 'AGR'. He continued, "In addition to EC-Drill® we have developed a range of established and market-leading technologies, including the Riserless Mud Recovery (RMR®) system.

"Previously, our drilling services division operated independently from our petroleum services division. We are now bringing them together to offer customers more choice and flexibility and to allow us to grow the company."

As Skogen turns his attention to growing 'AGR' he is seeking new opportunities for AGR's highly successful Field Operations business.

"Field Operations has grown significantly over the past few years and is today a substantial business. Going forward, we will consider how we can best further develop Field Operations. This is an attractive business and we see a range of interesting opportunities."

Oil & Gas Post

Promote Your Page Too
LINK

Weather Watch: Producers Evacuate Workers as Storms Threaten Gulf of Mexico

- Weather Watch: Producers Evacuate Workers as Storms Threaten Gulf of Mexico

Thursday, September 01, 2011
Rigzone Staff
by Karen Boman

Oil and gas exploration and production companies have begun evacuating workers from Gulf of Mexico operations and shutting in production due to the storm system that could turn into the 12th tropical cyclone of this year's hurricane season.

Shell reported it was moving forward with a plan to reduce the number of employees from most of its operations, but weather conditions are already impairing staff movement. "We are using all available resources to safely evacuate employees," said Shell. The number of evacuated personnel will depend on weather condition; personnel will only be moved if safe to do so.

Shell has taken steps to begin shutting in production, focusing on subsea fields that require specific treatments to ensure production can be restored after the storm passes. "The impacts are minimal at this point and we are monitoring Shell non-operated downstream infrastructure for further impacts to our production that may occur," Shell said.

ExxonMobil is evacuating approximately 140 employees and contractors from its Gulf Coast offshore platforms expected to be in the path of the storm. Gross production of approximately 11,000 b/d of liquids and 60 MMcf/d of natural gas has been shut in. "Our primary focus continues to be the safety of our workforce," ExxonMobil said.

BP has begun evacuations of all personnel from its operated assets in the Gulf of Mexico. On Wednesday, 500 non-essential workers had been evacuated. That activity will continue through Thursday and potentially into Friday.

BP operated assets included in this evacuation include Mad Dog, Holstein, Atlantis, Nakika, Pampano, and Thunder Horse. "We will continue monitoring weather conditions and will re-staff these facilities when it is deemed safe to do so," a BP spokesperson said.

Anadarko Petroleum Corp. reported Thursday that it had removed approximately 100 employees from and was shutting in production at all eight of its operated Gulf facilities, including Independence Hub, Constitution, Marco Polo, Red Hawk, Nansen, Boomvang, Gunnison and Neptune. "We will continue to monitor the path of the weather in the Gulf and will return our workers and restore production only when it is safe to do so," the company said in a statement.

Apache Corp. has begun moving some non-essential employees out of the Gulf ahead of the hurricane, a company spokesperson said. Chevron is closely monitoring the tropical disturbance in the Gulf of Mexico. Non-essential personnel are being evacuated and no production has been affected.

The Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) reported that personnel have been evacuated from nine production platforms as of 11:30 a.m. CDT Thursday, equivalent to 1.6 percent of the 617 manned platforms in the Gulf. None of the 62 rigs currently operating in the Gulf have been evacuated.

BOEMRE estimated that approximately 5.7 percent of current Gulf oil production, or 79,989 b/d, has been shut in, and approximately 2.4 percent of Gulf natural gas production, or 127 MMcf/d, has been shut in. BOEMRE's survey information is based on seven companies' reports as of 11:30 a.m. CDT Thursday.

The National Hurricane Center (NHC) is monitoring a broad area of low pressure in the central Gulf of Mexico 200 miles south of the Louisiana coast that is producing a large area of cloudiness, thunderstorms and gusty winds over the eastern and central Gulf. NHC forecasts upper-level winds to become more conducive for development, and the system could become a tropical depression during the next day or so.

NHC said the system has an 80 percent chance of becoming a tropical cyclone, which would be named Lee, according to the NHC website, as it moves slowly to the northwest. A National Oceanic and Atmospheric Administration hurricane hunter aircraft is scheduled to investigate the area later this afternoon. "Interests along the entire northern Gulf of Mexico coast should monitor the storm's progress," NHC said.

NHC also is tracking Hurricane Katia, which is churning across the Atlantic Ocean towards the U.S. Currently a Category 1 hurricane with maximum sustained winds or near 75 mph, Katia is expected to strengthen over the next 48 hours, and could become a major hurricane by the weekend.

Oil & Gas Post

Promote Your Page Too
LINK

Gasco to Start Drilling Uinta Wells in October

- Gasco to Start Drilling Uinta Wells in October

Thursday, September 01, 2011
Gasco Energy Inc.

Gasco provided an interim operations update on its Riverbend Project in Utah's Uinta Basin.

Green River Oil Well Permits Received

Gasco recently received the necessary federal drilling permits for two oil wells that will be drilled to test the productive potential of the Green River Formation at approximately 5,500 feet proposed total vertical depth. The Company plans to commence building the locations next week and anticipates spudding the wells within the first two weeks of October 2011.

Gasco is operator of both wells with a 100% working interest. The wells, the Federal 23-30-G-9-19 (76.8% NRI) and the Federal 34-19G-9-19 (80% NRI), will be drilled in succession with a recently contracted 1,000 horse-power drilling rig which the Company has secured under a two-well contract. Gasco anticipates that completions for both wells will follow shortly after both wells have been drilled with first production to occur in November 2011.

Current commodity prices feature strong potential per-well economics for the Green River play. Gasco estimates that the cost to drill and complete a Green River well is approximately $800,000, with per-well estimated ultimate recoveries of 50,000 barrels of oil. The current differentials to West Texas Intermediate for Uinta Basin Black Wax, adjusted for transportation and quality, are approximately $16 per barrel.

"Despite the permitting delays, we are pleased to commence operations on the two-well Green River program," said King Grant, Gasco's President and CEO. "We have selected high-graded locations which benefit from existing well logs from gas wells that were previously drilled by Gasco. By proving the productive potential of the Green River Formation, we believe we can begin to de-risk approximately 11,000 net acres which we believe are prospective for crude oil in this part of the Uinta Basin."

Oil & Gas Post

Promote Your Page Too
LINK

Gulf Shores Reports Bakken Oil Discovery in Saskatchewan

- Gulf Shores Reports Bakken Oil Discovery in Saskatchewan

Thursday, September 01, 2011
Gulf Shores Resources Ltd.

Gulf Shores reported that the 3-34-14-33W1 well in the Coothill area of Southeast Saskatchewan has been drilled and is being cased as a new Bakken oil discovery.

Gulf Shores Resources Ltd. is paying 60% of the cost of the well to earn a 39% working interest in 160 acres with an option on an additional contiguous 320 acres under the same terms.

The rig will now move to the 9-16-15-32W1 location in the Welwyn area west of the Rocanville Field in Southeast Saskatchewan.

Oil & Gas Post

Promote Your Page Too
LINK

Entek Updates Activities in Niobrara Shale Oil Proj.

- Entek Updates Activities in Niobrara Shale Oil Proj.

Thursday, September 01, 2011
Entek Energy Ltd.

Entek provided an update on the Niobrara Shale Oil Project Appraisal Program in the Green River Basin.

Battle Mountain 14-10L – The Frontier (secondary objective) has been successfully fracture stimulated. Limited testing has been performed before completion and testing operations start on the lowest of the Niobrara Benches in the well. Test results suggest the discovery of an oil prone sweet-spot in the Frontier Formation which is part of the Mowry Shale Resource Play. The play has been a secondary target across the Company's acreage since it tested hydrocarbons at an initial rate of 1.2 MMCFD and 10 BOPD in the Focus Ranch 12-1 well and since has shown significant oil and gas shows in each well where penetrated across the acreage.

Test results suggest that the 14 ft perforated zone in the Battle Mountain 14-10 well will be capable of around 20 BOPD and over 100 MCFD. It is most likely that the production from the Frontier will be comingled with production from the Niobrara once planned completion and testing operations in the well are complete. In the future the Frontier, like the Niobrara, is likely to become a candidate for horizontal drilling. The Company will provide an update as the appraisal program continues on the potential of the Frontier and Mowry Shale Resource Play across its acreage position.

The completion program for the Niobrara (primary objective), which includes fracture stimulation and testing, will be initiated this week with fracture stimulation planned around September 15.

Slater Dome (SD) Federal 24-9DL – The well has successfully reached its total depth of 8,300 ft after penetrating both the Niobrara and Frontier Formations. The well had significant oil and gas shows while drilling and was prepared for logging, with good hole condition reported. While pulling out of hole to run wireline logs a drill string connection mechanically failed. Operations are continuing to remove the drill string from the hole prior to logging.

C&C Cattle 18-8 – Location preparation is complete. It is anticipated that the rig will be mobilized from the 24-9 location to the 18-8 location over the next week. An additional rig is on standby to mobilize to the 18-8 location if operations on the 24-9 well take longer than expected.

Oil & Gas Post

Promote Your Page Too
LINK

Saratoga Commences Production at Main Pass 46 Field

- Saratoga Commences Production at Main Pass 46 Field

Thursday, September 01, 2011
Saratoga Resources Inc.

Saratoga has successfully completed and commenced production from its Catina and Four Corners wells in Main Pass 46 Field.

The State Lease 20436 #1 Catina well began production on August 29, 2011 with a gross initial production (IP) rate of 1145 barrels of oil per day (bopd) and 606 thousand cubic feet of gas per day (MCFPD), or 1246 barrels of oil equivalent per day (boepd), through a 12/64 inch choke with flowing tubing pressure (FTP) of 2650 psi. Current gross production rates are 656 bopd and 498 MCFPD (gross 739 boepd, net 576 boepd), on a 12/64 inch choke with 2900 psi FTP. Saratoga expects production to exceed pre-drill stabilized estimates of net 470 boepd with 88% oil versus gas. Saratoga has laid new flowlines to connect the well to the Company's Main Pass 46 facility.

Saratoga also completed the 6100' Sand in the State Lease 20034 #1 Four Corners well, which began production on August 16, 2011 with a gross IP rate of 1.7 million cubic feet of gas per day (MMCFPD), or 283 boepd, with no fluid through a 10/64 inch choke with 2250 psi FTP. The well tested on August 25, 2011 at gross 1.864 MMCFPD (gross 311 boepd, net 235 boepd) on a 12/64 inch choke with 2400 psi FTP.

Saratoga's President, Andy Clifford, said, "We are excited to have such an excellent start to our renewed development drilling program with the Catina and Four Corners wells meeting expectations." Mr. Clifford added, "We are also excited by the addition of Butch Scelfo to our team as Manager of Drilling and Well Operations. Butch has over 30 years experience in the oil and gas industry with various independent operators, including Maxus, Meridian, Stone and PXP. He has significant experience drilling in Louisiana state waters. This is an exciting phase of development growth for the Company and we are glad to have Butch on board."

Oil & Gas Post

Promote Your Page Too
LINK

Integrys Energy Group Announces Two Acquisitions

- Integrys Energy Group Announces Two Acquisitions



Sep 1, 2011

Integrys Energy Group (NYSE:TEG) announced the acquisition of two operating businesses involved in the compressed natural gas fueling business, Pinnacle CNG Systems and Trillium USA, previously owned by Wagner & Brown, Ltd.

Charlie Schrock, Integrys Chairman, President and Chief Executive Officer said, "Expansion into this business is consistent with our mission of providing customers with the best value in energy and related services. Our decision to enter this market is in response to customer needs, and this is complementary to our existing skill sets in regulated and nonregulated natural gas and electric services."

Integrys Energy has a potential upside of 2.4% based on a current price of $49.79 and an average consensus analyst price target of $51.

Oil & Gas Post

Promote Your Page Too
LINK

GM Reports Sales In August Were Up

 - GM Reports Sales In August Were Up



Sep 1, 2011

General Motors (NYSE:GM) reported that U.S. August sales were up to 18% to 218,479 units.

The company also said that the month-end dealer inventory in the United States was 556,884 units, including 212,520 full-size pick up trucks and it's on track to meet its target of ending 2011 with a full-size pick up inventory of 200,000 units.

General Motors (NYSE:GM) has a potential upside of 75.6% based on a current price of $23.41 and an average consensus analyst price target of $41.12.

Oil & Gas Post

Promote Your Page Too
LINK

Reef Resources to Ramp Production at Ausable #5 Well

- Reef Resources to Ramp Production at Ausable #5 Well

Thursday, September 01, 2011
Reef Resources Ltd.

Reef Resources plans to install a hydraulic venturi downhole pump in the Ausable # 5 well. This proven oilfield technology, replacing conventional bottomhole pumps with venturi units, is currently being installed and tested on the Ausable #1 well. The hydraulic unit is designed to operate efficiently with the light oil and condensate currently being produced from the Ausable reef and will provide optimum production flow rates. It is anticipated that the hydraulic pumping units will also be installed in Ausable # 2 and Ausable # 4 over the course of the next two months.

Following the installation of the venturi pump in Ausable # 5 the Company will be in a position to accurately report production flow rate in addition to production potential with the previously announced Enhanced Oil Recovery (EOR) and cyclic natural gas liquids (NGL's) program. Under the EOR program, reservoir analysis and design work to date indicates re-pressurization of the reservoir will have a significant positive impact on overall field production and recovery factors. Results and updates of the Company's optimization program and implementation of the cyclic gas EOR program will be released once fully operational.

Reef also announced that two of the three frac tools from the Ausable #2 horizontal well have been successfully recovered. Approximately 75% of the productive zone is now open. Additional fishing operations are not viewed as cost effective and the Company will be moving forward with wellbore clean up and flow testing. A further announcement will be made once the well is on stream.

Arnie Hansen stated, "We continue to view Ausable # 5 very positively and the Company's engineering and operations team is working diligently to increase production by implementation of the venturi pumping system followed by the re-pressurization of the reef and commissioning of the EOR and NGL program. There are numerous analogous fields where these types of optimization efforts have successfully yielded significant increases in production once in operation."

Oil & Gas Post

Promote Your Page Too
LINK

Canacol Awarded Contract by Ecopetrol for Colombian Field

- Canacol Awarded Contract by Ecopetrol for Colombian Field

Thursday, September 01, 2011
Canacol Energy Ltd.

Canacol announced that Canacol Energy Colombia S.A., a subsidiary of the Corporation, has been awarded a contract by Ecopetrol S.A. for a 100% working interest in the associated gas and gas liquids stream from the Rancho Hermoso Field, located in the Llanos Basin of Colombia. Under the terms of the contract, awarded to Canacol by Ecopetrol S.A. on August 31, 2011, the Corporation will purchase the produced gas from Ecopetrol S.A. at a price of US $6.50 per thousand British Thermal Units (US $15.48 per thousand standard cubic feet per day), which includes the associated liquids, those being naphtha, propane and butane. The gas is very liquids rich, with 1 million standard cubic feet per day (mmscfpd) yielding approximately 160 barrels of naphtha, 126 barrels of propane, and 118 barrels of butane per day. In Colombia naphtha, propane, and butane all sell at a premium to West Texas Intermediate. The contract will be effective on January 1, 2012, and the Corporation anticipates adding approximately 2,300 net barrels per day of naphtha, propane and butane to its existing oil production stream from the approximately 5.7 mmscfpd of gas production forecast for January 2012.

Charle Gamba, President and CEO of the Corporation, commented "We are very pleased to have been awarded this contract for the associated gas at Rancho Hermoso, which will add a very healthy amount of liquids production to our oil production stream in Colombia. The Corporation will also be able to book proven, probable and possible reserves associated with the associated gas and gas liquids under the terms of the contract. Meanwhile, the Corporation has spudded the first of four new development wells to be drilled in the field during the remainder of 2011."

The Corporation anticipates awarding a contract for the construction of a gas and liquids separation facility in mid-September, 2011, which will be ready to receive the gas and associated liquids on January 1, 2012. The remaining dry gas will be utilized to generate electricity in the field, thereby lowering operating cost associated with the purchase of diesel, which is currently being used to generate electricity in the field.

The Corporation also announced that the spud of the Rancho Hermoso 11 development well on August 29, 2011, approximately 1 month behind schedule due to a delay in obtaining the environmental license for the well. All of the relevant licenses for the remaining wells to be drilled in the field have been obtained.

Oil & Gas Post

Promote Your Page Too
LINK

Range Energy Takes New Name

- Range Energy Takes New Name

Thursday, September 01, 2011
Range Energy Resources Inc.

Range Energy Resources has changed its name to Hawkstone Energy Corp. and at open of market on Thursday, September 1, 2011, its common shares will commence trading on the Canadian National Stock Exchange (CNSX) under the name Hawkstone Energy Corp. under the new trading symbol "HEC".

The new ISIN for common shares of Hawkstone Energy Corp. is CA 42034P1062.

Oil & Gas Post

Promote Your Page Too
LINK

Buccaneer to Acquire Transocean Jackup

- Buccaneer to Acquire Transocean Jackup

Thursday, September 01, 2011
Buccaneer Energy Ltd.

Buccaneer advised that its subsidiary Kenai Offshore Ventures, LLC ("KOV") has executed a binding Purchase Agreement with Transocean to acquire the GSF Adriatic XI offshore jackup rig ("Rig"). The total purchase price is US $68.5 million.

Settlement of the purchase is scheduled to take place between 30 September 2011 and 25 October 2011. Upon settlement, the Rig will immediately be transported to an Asian based shipyard to undergo modifications to enable operations in the Cook Inlet, Alaska. KOV is in the process of finalizing modification and mobilization budgets.

It is anticipated that the Rig will arrive in the Cook Inlet for the 2012 drilling season in April / May 2012.

Buccaneer anticipates contracting day to day operation of the Rig out to an established rig operator, additionally senior members of Buccaneer’s existing management team have direct jackup rig operating experience.

GSF Adriatic XI Jackup Rig

The GSF Adriatic XI jackup rig is a Marathon LeTourneau 116-C jackup rig. It was first constructed in 1982. The Rig was upgraded in 2004.

The Rig has been "cold-stacked" in Malaysia since September 2009 due to a lack of drilling commitments. KOV and its advisors have already completed two inspections of the Rig whilst cold stacked and consider the Rig to be in good condition.

Shipyard work to be undertaken in the second half of 2011 and early 2012 to the Rig include:
  • Bringing the Rig back into operation after being cold-stacked;
  • Improvements to the accommodation quarters; and
  • Modifications to "winterize" the Rig for Alaskan conditions.

The work will not include any significant structural work.

The Company will give weekly drilling updates commencing Wednesday 7 September.

GSF Adriatic XI Capabilities

The GSF Adriatic XI jackup rig was selected through a global search process. Its existing capabilities make it suitable for most water depths that exist in the Cook Inlet and northern Alaskan waters.

These capabilities include:
  • Operate in water depths up to 300 feet;
  • Constructed of -10o Celsius rated steel allowing it to work safely in the wide environmental envelope that exists in the Arctic including the Chukchi and Beaufort Sea which are located offshore the North Slope;
  • Two (2) sets of blow out protectors ("BOPs"), both 10,000 and 15,000 PSI, giving it capacity to drill high pressure horizons that exist in the Cook Inlet;
  • Cantilever beam extensions that enhance its ability to work over existing platforms in the Cook Inlet to undertake drilling and repair operations; and
  • Four (4) cranes and a high variable deck load rating of 8,300 KLBS which enable it to operate with extra equipment and materials onboard should support services be limited.

Initial Work Program

Buccaneer will have the first right of refusal with KOV to utilize the Rig until 31 December 2014 and Buccaneer will commit to drill a minimum of 4 wells in the Cook Inlet using the Rig.

The first well to be drilled by the Adriatic XI will be located on Buccaneer's 100% owned Southern Cross project where Netherland, Sewell & Associates have estimated Proven & Probable (2P) Reserve of 12.7 MMBOE and additional P50 Resource of 14.7 MMBOE.

The Southern Cross project is in approximately 50 feet of water with no unusual technical hurdles to drill and develop. Southern Cross is within 5 miles of four significant oil and gas fields with a combined production of 1.1 Billion BO and over 550 BCF of gas.

Buccaneer's initial test will offset several wells on its leasehold that tested oil and gas but were never produced. Buccaneer's first well is approximately 300 feet from the Pan Am 17595 # 3 (circa 1960's) which tested 230 feet oil and 1080 feet of mud cut oil from the Lower Tyonek and 165 feet of oil from the Hemlock.

It will also be structurally high to the Pan Am 17595 # 2 (circa 1960's) which tested the Lower Hemlock and recovered gas to the surface followed by fluid from which 990 feet of clean oil was recovered. Other wells on the lease tested gas from the Upper Tyonek. Buccaneer's well will be within the demonstrated hydrocarbon column for this area.

Financing

KOV anticipates that the total budget to acquire, modify and mobilize the Rig to the Cook Inlet will be approximately US $86.5 million.
KOV expects the funding to be sourced from:
  • Kenai Offshore Ventures, LLC ("KOV") $6.85 MM
  • Alaska Industrial Development and Export Authority (“AIDEA”) $24.0 - $30.0 MM
  • Senior Debt Facility $50.0 - $56.0 MM

Buccaneer Energy owns a 50% direct interest in KOV with its 50% joint venture partner being Singaporean based Ezion Holdings Limited ("Ezion") with each funding an equal 50% of the required US $6.85 million deposit.

The Joint Ownership Agreement ("JOA") with AIDEA was executed with AIDEA on the 2 June 2011. Under the JOA, AIDEA will invest US $24.0 - US $30.0 million in the form of Preferred Interest in KOV subject to a series of conditions precedents ("CPs") being met.

In addition, KOV has separately received a credit approved term sheet from an Asian based international bank to provide a Senior Debt Facility of between US $50 – US $56 million. Final loan documentation is now in the process of being finalized.

KOV anticipates satisfaction of all CP's for both the Senior Debt Facility and AIDEA by late September 2011. The total amount of finance being sourced under the Senior Debt facility and AIDEA will not exceed in aggregate US $80.0 million. Further details of the financing terms will be announced upon the completion of the acquisition.

Commentary

Director of Buccaneer Energy, Dean Gallegos said, "This is another major milestone for Buccaneer.

"In order to drill the first well at its 100% owned Southern Cross Project in April/May 2012 a jackup rig was required. Since no suitable rig was available forming KOV and sourcing the funding has been a priority for the Company. Netherland, Sewell & Associates has estimated 73.3 MMBOE in combined 2P Reserves and P50 Resources to the Company's two offshore Cook Inlet projects.

"The acquisition of the Adriatic XI jackup rig begins the process of unlocking the substantial value in the Company’s offshore Alaskan projects.”

Oil & Gas Post

Promote Your Page Too
LINK

Cooper Begins Drilling Well South of Butlers Field

- Cooper Begins Drilling Well South of Butlers Field

Thursday, September 01, 2011
Cooper Energy Ltd.

Cooper announced that the Germein-1 exploration well in PEL 92 spudded at 0330 hours Wednesday August 31, 2011. The surface hole has been drilled to 600 meters and preparations are currently underway to run the 9⅝” surface casing.

Germein-1 is located 1.9 km south of the Butlers oil field. The well's primary objective is the Namur Sandstone, which is the oil reservoir in the nearby oil fields. The Germein prospect is estimated to contain 0.211 million barrels of Prospective Resources (P50). The well will be drilled to a total depth of about 1,410 meters and is expected to take about 10 days to drill and evaluate.

Oil & Gas Post

Promote Your Page Too
LINK

Northern Offshore Secures New Contract for Jackup Energy Enhancer

- Northern Offshore Secures New Contract for Jackup Energy Enhancer

Thursday, September 01, 2011
Northern Offshore Ltd.

Northern Offshore announced that its subsidiary, Northern Offshore U.K. Limited, was awarded a contract from Maersk for the jackup Energy Enhancer. The award is subject to approval by the Danish Energy Authority. The contract, for operations in the Danish Sector of the North Sea, has an initial duration of one year and is scheduled to commence in early 2012. Maersk has options to extend the contract for up to three further years. The contract value for the initial term is US $35.7 million.

Gary W. Casswell, Northern Offshore's president and CEO, said "We are very pleased with this contract award as it provides us with the opportunity to further strengthen our long-term relationship with Maersk. This award, in conjunction with our Energy Endeavour contract announced in February, secures our second rig in Denmark and represents an improving market in the North Sea for this rig class, as we have expected."

Oil & Gas Post

Promote Your Page Too
LINK

GSP Extends Drilling Fleet with 2 New Jackups

- GSP Extends Drilling Fleet with 2 New Jackups

Thursday, September 01, 2011
Grup Servicii Petroliere

GSP announced its drilling fleet has been extended up to seven offshore mobile drilling rigs and a modular one. GSP Britannia (ex. Britannia) and GSP Fortuna (ex. G.H. Galloway) entered GSP's fleet in August.

GSP Fortuna is an ABS class three legged independent leg cantilever jackup rig reaching the maximum drilling depth of 25.000 ft and the maximum water depth of 300 ft. GSP Britannia is an ABS class four legged independent leg cantilever jackup rig reaching the maximum drilling dept of 20.000 ft and the maximum water depth of 200 ft.

GSP Britannia will support the company's Decommissioning and Plug and Abandon services in the North Sea. GSP provides cost effective, safe and efficient P&A services for the North Sea. Decommissioning has become a highly demanded service as more and more offshore fields are reaching the end of their lives.

GSP is the single source decommissioning solution providing a full range of engineering and decommissioning services as well as turnkey solutions with focus on safety and environmental preservation. Our company's expertise is sustained in this by the most rigorous HSE standards, which GSP uses in all its projects worldwide.

GSP also operates an extended and modern fleet of construction and heavy lift vessels as well as a large variety of offshore support vessels, SAT diving & ROVs to fully answer the offshore integrated services market demands worldwide.

Oil & Gas Post

Promote Your Page Too
LINK

Myanmar O&G Exploration Tender Draws over 50 Bids

- Myanmar O&G Exploration Tender Draws over 50 Bids

Thursday, September 01, 2011
Dow Jones Newswires
SINGAPORE
by Cheang Chee Yew

Myanmar has received more than 50 bids for an oil and gas exploration tender, which closed last week, a government official said Thursday.

The bidders are from China, Europe, Middle East, Russia and Southeast Asia, the official, who didn't wish to be named, said.

The energy planning department is now short-listing the bidders and will invite selected firms to review the geological and geophysical data of 18 onshore blocks, mostly in central areas, the official said.

Each short-listed foreign firm is required to form a joint venture with an approved Myanmarese company to bid in the tender. Local companies participating in the tender have to register with the energy ministry by Sept. 9.

Once the review of geological and geophysical data is completed, the joint ventures can submit details on the work program and budget to the ministry.

As of April 1, 2008 the country's proven onshore and offshore crude-oil reserves were 112 million barrels and 101 million barrels respectively, Myanmar Oil and Gas Enterprise, which regulates the upstream oil and gas sector, said previously.

Proven onshore and offshore natural gas reserves totaled 0.46 trillion cubic feet and 17 trillion cubic feet respectively.

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

Oil & Gas Post

Promote Your Page Too
LINK

San Leon to Spud Polish Exploration Well

- San Leon to Spud Polish Exploration Well

Thursday, September 01, 2011
San Leon Energy plc

San Leon announced that all the drilling equipment for the Belvedere-1 exploration well has now arrived on site and drilling is ready to commence. The Belvedere-1 well is located in the Nida concession, which is 100% owned by San Leon, covering some 280,000 acres and is on trend with significant oil production in Poland. The Company plans to drill two exploration wells on the concession, this month, targeting multiple one to two million barrel prospects. The Belvedere-1 is expected to spud on Monday, September 5, 2011.

Oisin Fanning, Chairman of San Leon, commented, "We are delighted to be spudding our first conventional well on the Nida Trough on Monday. This is an important concession for San Leon and has the potential to provide the company with near term revenue.

"This is a very busy and exciting time for the Company as we are not only drilling these conventional wells, but with our partner Talisman we are also scheduled to be drilling the first wells on our Baltic Basin acreage later this month."

Oil & Gas Post

Promote Your Page Too
LINK

TGS Scores Seismic Survey in Utica Shale

- TGS Scores Seismic Survey in Utica Shale

Thursday, September 01, 2011
TGS-NOPEC Geophysical Co. ASA

TGS has awarded the acquisition of a 307 mi2 (795 km2) multi-client 3D project located onshore United States. The new seismic program, Firestone 3D, is designed to illuminate the Utica Shale play in Northeast Ohio and aid in the development of this unconventional play. Tidelands Geophysical Services is expected to begin acquisition on the project in 1Q 2012. Data acquisition is anticipated to take seven months.

The Utica Shale is a geologic formation located a few thousand feet below the Marcellus Shale that is characterized by a western oil phase, a central wet gas and an eastern dry gas phase. The new seismic survey is located over the wet gas/liquids rich portion of the Utica Shale. Many see the Utica Shale play as analogous to the prolific Eagle Ford Shale in Texas. The Utica Shale is thicker and more geographically extensive than the Marcellus Shale Trend and has already proven its ability to support commercial production.

"The use of 3D multi-client seismic by oil and gas companies in the development of the unconventional plays in the onshore United States has grown substantially in recent years. We have carefully watched the development of this market and are excited to expand our existing onshore library to include this 3D seismic data," said Robert Hobbs, CEO of TGS. "TGS continues to be successful in diversifying its multi-client library both by product as well as geography," continued Hobbs.

This multi-client program is supported by industry pre-funding.

Oil & Gas Post

Promote Your Page Too
LINK 

Atwood Semisubs Win Apache Work in AU

- Atwood Semisubs Win Apache Work in AU

Thursday, September 01, 2011
Atwood Oceanics Inc.

Atwood Oceanics announced that one of its subsidiaries has been awarded two contracts by Apache Energy Ltd for work in Australia for the Atwood Eagle and the Atwood Falcon with durations of 18 months and 30 months, respectively. With these contracts, Atwood's total revenue backlog increases from approximately $990 million to $1.55 billion.

The Atwood Eagle is expected to commence its contract in July 2012 in direct continuation of its prior contract. The Atwood Falcon will undergo approximately 90 days of planned maintenance and contract preparation work prior to transiting to Australia to commence operations expected in May 2012. The firm contractual commitments for the Atwood Eagle and the Atwood Falcon are expected to extend to January 2014 and November 2014, respectively.

"We are very pleased to be providing deepwater drilling services to Apache with these two longer-term agreements," commented Rob Saltiel, Atwood President & CEO. "Atwood has been active in Australia for over 35 years, and we look forward to increasing our presence further in this growing and strategic market."

Oil & Gas Post

Promote Your Page Too
LINK

Sub-Commercial Discovery Disappoints Salamander Offshore Vietnam

- Sub-Commercial Discovery Disappoints Salamander Offshore Vietnam

Thursday, September 01, 2011
Salamander Energy plc

Salamander announced the completion of the Cat Ba-1X ("101-CB-1X") exploration well in Block 101-100/04, offshore northern Vietnam. Block 101-100/04 was the subject of a farm out as announced on May 31, 2011.

The 101-CB-1X well was drilled to a total depth of 1,724 meters. The well encountered 38 meters of net hydrocarbon pay in Tertiary clastics, the secondary objective of the well. The pay section comprises a series of gas-bearing sandstones underlain by an oil-bearing reservoir. A full suite of wire-line logs and pressure data were recorded over the reservoir sections and samples of oil and gas were recovered.

These data show that the Tertiary reservoirs are of good quality, however pressure data and seismic mapping indicates the in-place resource volumes encountered by the well are probably below levels needed for commercial development.

No oil shows were observed and only low levels of gas were recorded while drilling the primary objective, the Palaeozoic 'buried hills' play. Subsequent wire-line logging did not reveal any zones of interest. The Cat Ba-1X well has subsequently been plugged and abandoned as a sub-commercial discovery.

James Menzies, Chief Executive, Salamander Energy, said, "While a sub-commercial find is disappointing, we have an active drilling program into 2012 which sees a mix of exploration, appraisal and development around our three primary areas of focus. These are proven regional plays, where we believe we can create significant value."

Oil & Gas Post

Promote Your Page Too
LINK

Noble to Build 4th High-Spec Newbuild This Year

- Noble to Build 4th High-Spec Newbuild This Year

Thursday, September 01, 2011
Noble Corp.

Noble announced that a subsidiary has exercised its option with Hyundai Heavy Industries Co. Ltd. ("HHI") for the construction of an additional ultra-deepwater drillship, the fourth such drillship to be ordered this year subject to the parties executing an agreed form of construction contract, which is expected to occur within the next several weeks. The additional ultra-deepwater drillship, to be named at a later date, will be constructed on a fixed price basis at HHI's shipyard in Ulsan, Korea, with expected delivery from the shipyard during the second half of 2014. Following shipyard delivery, the unit is expected to undergo the customary 90-120 day period for mobilization and acceptance prior to being ready to commence a contract. The rig is uncontracted at this time.

The delivered cost of the new drillship is expected to be $630 million and includes the turnkey construction contract, Company furnished equipment, project management and spares, but excludes capitalized interest. The construction contract contains favorable payment terms that incentivize on-time delivery.

"We continue to see an increase in deepwater demand, both near and longer-term," said David W. Williams, Chairman, President and Chief Executive Officer, Noble Corporation. "This view is bolstered not only by geologic successes in the traditional regions offshore the U.S. Gulf of Mexico and Brazil, but also by emerging regions offshore West Africa, Indonesia, the Black Sea, India and eastern Africa. With the addition of this fourth HHI newbuild drillship, by 2014 Noble will have one of the newest, most versatile and technologically advanced floater fleets in the industry with a total of 28 units, 16 of which will be dynamically positioned."

The new drillship announced Wednesday is based on a Hyundai Gusto P10000 hull design and is designed for operations in waters of up to 12,000 feet, but will be delivered fully equipped to operate in up to 10,000 feet of water. The unit will be equipped with DP-3 station keeping, the ability to handle two complete BOP systems, and multiple parallel activity features that improve well construction and overall project efficiencies, including a heave compensated construction crane to facilitate deployment of subsea production equipment. The drillship will also have accommodations for up to 210 personnel, in addition to a number of other operational enhancements beyond the shipyard's base specifications.

Oil & Gas Post

Promote Your Page Too
LINK

Ukraine, Shell Sign Shale Gas Exploration Deal

- Ukraine, Shell Sign Shale Gas Exploration Deal

Thursday, September 01, 2011
Dow Jones Newswires
KIEV

Ukraine Thursday awarded its first shale gas exploration contract to the Anglo-Dutch giant Shell in a deal worth up to $800 million, Ukraine's state gas exploration company said.

"In case of successful exploration work and the start of intense project development, Shell's total investment under the agreement may come to $800 million," Ukrgazvydobuvannya said in a statement issued after the signing.

Ukraine is widely believed to be one of Europe's largest holders of the new energy resource, with estimated reserves up to 1.5 trillion cubic meters, according to industry analysts.

No official estimate has been made and there is no confirmed figure of how much shale gas might be hidden in the six blocks awarded to Shell near northeastern city of Kharkiv.

Ukraine lacks the advanced technology necessary to produce the hard-to-recover resource and is also holding negotiations with such Western majors as the U.S. firms Chevron and ExxonMobil.

The former Soviet republic has few other natural resources and relies on Russia for most of its gas imports.

But it has been trying to lower its energy dependence on its neighbor since a price dispute temporarily cut Russian gas flows in January 2009 and is now focusing on other sources of energy that include coal.

"The agreement with Shell will be one of the first examples of Ukraine's successful cooperation in hydrocarbons development with an international energy company," Ukrgazvydobuvannya chief Yuriy Borysov said.

Ukrgazvydobuvannya said Shell would be operating in Ukraine through a joint venture but offered no other immediate details.

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

Oil & Gas Post

Promote Your Page Too
LINK

Watson: Energy Renaissance Possible with Right Regulatory, Tax Policies

- Watson: Energy Renaissance Possible with Right Regulatory, Tax Policies

Thursday, September 01, 2011
Rigzone Staff
by Karen Boman

Chevron Chairman and CEO John S. Watson said Wednesday that the U.S. is within reach of an energy renaissance that would unlock U.S. energy resources and generate economic growth if a rational, robust and comprehensive energy policy in the U.S. can be established.

"Such a policy would prepare us for rising demand, expand safe and responsible production at home and promote energy efficiency across the country," Watson told attendees at the Greater Houston Partnership luncheon in Houston. This policy also would encourage alternative sources, not by mandates and subsidies, but by allowing the market to identify the best new fuels and bring them up to commercial scale.

"Make no mistake – this is not the kind of energy policy we have today," Watson said. "To the extent that we have an energy policy, it is paralyzed by a fundamental contradiction. On one hand, there is wide consensus in America that we should strive for energy security. Whether we can be truly energy independent is debatable, but we can certainly do much more to enhance our country's energy security."

At the same time, the U.S. government has declared the Outer Continental Shelf on the east and west coasts off limits to new development, and regulatory agencies have put a strong collar on development pace in the U.S. Gulf of Mexico and Alaska.

Watson said the company is seeing progress with the Bureau of Ocean Energy Management, Regulatory and Enforcement's (BOEMRE) permitting process. While it has taken time for BOEMRE to decide on the standards for permitting and time for the energy industry to understand, Watson believes the permitting process will accelerate going forward. Still, exploration and production in the Gulf of Mexico "is still far short of where we should be."

Watson agrees with President Obama that the U.S. should support vigorous development of Brazil's oil and gas industry – where Chevron has partnered with Brazil's state energy company Petrobras for two major offshore Brazilian projects – but noted that "we have an even bigger opportunity to build a stronger oil and gas industry in the United States, with results like job creation, revenue growth and economic expansion directly benefiting U.S. citizens."

While Chevron has made significant investment in U.S. unconventional gas plays with its acquisition Atlas Energy, the company remains bullish on conventional oil and gas assets, including conventional assets in California and the deepwater Gulf of Mexico. The company has sanctioned $14 billion in deepwater U.S. Gulf projects despite the moratorium resulting from the Macondo incident in 2010.

Chevron will continue to make its headquarters in California, but is expanding its presence in Houston, with the recent acquisitions of buildings on Smith Street and Louisiana Street downtown. The most recent acquisition, the former YMCA building site, will give Chevron three buildings in the downtown area.

"I always like visiting Texas," Watson said. "It's a chance to catch up with business friends who have moved here from the West Coast. I've even heard a new saying out there: If you want to find a happy California businessperson, just visit Texas." However, the company's 130 year-plus history in California, along with its refineries, substantial retail station presence, employees and access to Silicon Valley technology in the state, offer compelling reasons for the company to stay, a company spokesperson said.

The company employs 10,000 workers in Houston, triple the number of workers it had here in 2001. Chevron's current employees in Houston include 7,000 full-time employees and 3,000 contract workers. Watson noted that Texas understands that energy must play a vital role in any economic growth scenario. "A strong oil and gas industry certainly makes a difference for Texas, but it's every bit as important to the future of our whole country," said Watson, adding that the energy industry has still been hiring, investing and generating tax revenues during the recession.

The company continues to recruit on college campuses, but also is hiring large numbers of experienced workers. Petrotech workers, including engineers and scientists, are in high demand both in the U.S. and worldwide, and Chevron has been scrambling to find these workers. Watson wouldn't give an exact number for how many new workers it would hire, but noted that the company has twice increased the number of new employees it would add to its roster this year. Chevron typically hires around 5,000 petrotech workers worldwide per year. Chevron has hired a number of former nuclear industry employees for its refining operations, and would welcome former NASA employees. "We need to continue hiring good people wherever we can," Watson said.

Watson said he agrees with U.S. Energy Secretary Chu's leadership on enabling public-private partnerships such as Chevron's research partnership with Los Alamos National Laboratory in New Mexico, where work to develop wireless technology for use in onshore and offshore oil and gas production from declassified military technology is underway. In June, Chevron announced a second strategic partnership with NASA's Jet Propulsion Lab in California to jointly develop technology that can benefit energy production. "If we're going to make step-changes in technology, our national laboratories are a great place to start."

Watson estimated that Chevron will make more than $7 billion in capital investments in the U.S. and $26 billion worldwide. Watson said Chevron's existing global portfolio of oil and gas assets puts the company is a position in which it does not have to make acquisitions; however, the company will continue to look for opportunities with the right fit, including opportunities in Russia. The company's current Russian operations include its interests in the Caspian Sea pipeline. "We see more opportunities in Russia, which has welcomed Western companies and their technology in recent years."

Watson anticipates further consolidation among U.S. onshore producers with shale gas assets. "While these companies went door-to-door, farm-to-farm, ranch-to-ranch putting together large acreage positions, a high business standard is needed to develop these opportunities, and larger companies are in a good position to develop these assets."

Oil & Gas Post

Promote Your Page Too
LINK