Crude Oil Price by oil-price.net

Oil and Gas Energy News Update

Tuesday, September 6, 2011

Oil & Gas Post - All News Report for Tuesday, September 06, 2011

Tuesday, September 06, 2011


Oil & Gas Post

Promote Your Page Too
LINK

Commodity Corner: Oil Edges Lower on Econ Woes

- Commodity Corner: Oil Edges Lower on Econ Woes

Tuesday, September 06, 2011
Rigzone Staff
by Saaniya Bangee

Light, sweet oil edged lower Tuesday on lingering concerns about the global economy.

Oil futures traded 43 cents lower at $86.02 a barrel on the New York Mercantile Exchange.

Concerns that the European debt crisis might worsen pushed prices and equities lower Tuesday. Traders worry that the economic plague could spread to neighboring countries.

Prices fell as low as $83.20 a barrel in intraday trading as U.S. stock indexes plummeted for a third consecutive session. They peaked at $86.50. Earlier today, the Dow Jones Industrial Average fell 308 points but rebounded after the Greek government indicated swifter economic reforms.

Traders are waiting to take cues from President Obama and the Federal Reserve's speech later this week.

Brent crude, which is used to price many international oil varieties, gained $2.81 Tuesday to settle at $112.89 a barrel. Brent took its cues from production problems in the North Sea and a continued absence of Libyan oil in the market.

Likewise, natural gas for October delivery added 6.6 cents to settle at $3.94 per thousand cubic feet. Prices fluctuated between $3.85 and $3.95 Tuesday.

The U.S. National Hurricane Center reported that a new weather system west-southwest of the Cape Verde Islands had a 90 percent chance of becoming a cyclone in the next 48 hours.

After trading between $2.77 and $2.84, front-month gasoline lost 1.7 cents to settle down at $2.82 a gallon.

Oil & Gas Post

Promote Your Page Too
LINK

BP Announces North Sea Development

- BP Announces North Sea Development



Sep 6, 2011

BP (NYSE:BP) announced an agreement to invest up to $1.1 billion to progress a project to develop the Kinnoul reservoir in the central North Sea.

Kinnoul contains 45 million barrels of oil equivalent which will be connected to BP's Andrew platform and enable production to be extended to 2020 and beyond. Production from Kinnoul is forecast to peak at 45,000 barrels per day.

BP (NYSE:BP) has a potential upside of 54.2% based on a current price of $35.9 and an average consensus analyst price target of $55.37.

Oil & Gas Post

Promote Your Page Too
LINK

Chevron Strikes Oil in Deepwater GOM

- Chevron Strikes Oil in Deepwater GOM

Tuesday, September 06, 2011
Chevron Corp.

Chevron announced a new oil discovery at the Moccasin prospect in the deepwater U.S. Gulf of Mexico.

The Keathley Canyon Block 736 Well No. 1 encountered more than 380 feet of net pay in the Lower Tertiary Wilcox Sands. The well is located approximately 216 miles off the Louisiana coast in 6,759 feet of water and was drilled to a depth of 31,545 feet.

"The Moccasin discovery underscores the importance of the deepwater Gulf of Mexico as a source of domestic energy for the United States and as a focus area for Chevron's worldwide exploration portfolio," said George Kirkland, vice chairman, Chevron Corporation. "Moccasin is an important addition to our queue of high-quality opportunities around the globe."

Chevron began drilling the Moccasin well in March 2010. That activity was stopped in June 2010 when the U.S. government imposed a moratorium on deepwater drilling in the Gulf of Mexico. Drilling resumed in March 2011 after the U.S. Bureau of Ocean Energy Management, Regulation and Enforcement approved Chevron's revised drilling permit application.

The well results are still being evaluated, and additional work will be needed to determine the extent of the resource. Chevron, with a 43.75 percent working interest in the prospect, was the operator of the Moccasin discovery well. Other Moccasin owners are BP, with 43.75 percent, and Samson Offshore Company, with 12.5 percent.

Chevron is one of the largest leaseholders in the Gulf of Mexico and is currently developing the $7.5 billion Jack/St. Malo and the $4.1 billion Big Foot projects.

Oil & Gas Post

Promote Your Page Too
LINK

GE Bags Causeway Development Deal

- GE Bags Causeway Development Deal

Tuesday, September 06, 2011
GE O&G

Reinforcing its position as a leading supplier of subsea technology for North Sea oilfield projects, GE Oil & Gas announced at Offshore Europe 2011 that it will provide subsea production equipment to Valiant Causeway Ltd. for the development of the Causeway Field.

GE will supply two subsea production trees, one subsea water injection tree system, rental tooling and installation services for the project, located in the northern sector of the North Sea. The equipment will be manufactured at GE Oil & Gas facilities in Aberdeen, Scotland.

"We are committed to commence production in the second half of 2012, and installation of the subsea tree system is planned to begin in May of 2012," said Bryan Atchison, project manager of Valiant Causeway. "This is a very aggressive schedule and a close working relationship has been established between GE and Valiant to ensure that we are able to meet all of the project requirements."

The Causeway Field is being developed using subsea production technology with a tie-back to the existing North Cormorant Platform. The reservoir development strategy is to maintain production with the use of electrical submersible pumps (ESPs) and water injection. The Causeway Field will comprise one oil-producing well, one contingent oil-producing well and one water-injection well.

"This contract demonstrates GE's strong position and ability to provide reliable technology that is designed to facilitate the installation process," said Matt Corbin, regional leader—United Kingdom and continental Europe for GE Oil & Gas. "Our subsea tree systems are based on extensive field experience and feature well-proven interfaces with the power cables and dual ESPs to be installed in the wells."

Oil & Gas Post

Promote Your Page Too
LINK

Ithaca Selects GE O&G for Stella Development

- Ithaca Selects GE O&G for Stella Development

Tuesday, September 06, 2011
GE O&G

GE O&G subsea systems and services have been selected by Ithaca Energy (UK) Ltd. for the Stella oil and gas field development project in the Central North Sea, GE reported Tuesday at Offshore Europe 2011.

Under a contract of $17 million, GE will supply an integrated package of "S" Series shallow water vertical tree (SVXT) systems, controls and SG1 wellheads to be installed using a jack-up rig.

Phase 1 for the Stella project will be four trees for the planned development wells with a possible additional tree for a further well in the area.

The SVXT systems are based upon GE Oil & Gas latest design of the shallow water structured product subsea tree system, smaller and lighter than any traditional shallow water tree system on the market. The SVXT system has been developed for ease of installation, minimal ROV dependency, reduction on weather influenced installation operations due to smart tools, higher load carrying capacities and increased pressure envelopes.

"Our ability to meet the engineering challenges of this project regarding temperature, riser analysis clarifications, pressure ratings and gas lift requirements was a key to receiving this contract," said Matt Corbin, regional leader—United Kingdom and continental Europe for GE Oil & Gas. "The agreement also builds on the good working relationship we established with Ithaca in a previous project."

The scope of the GE contract includes S Series SVXTs, SG1 drill-through wellhead systems and a full services support package comprising rental tools and manpower.

The equipment will be engineered and manufactured at GE's facilities in the United Kingdom with the equipment scheduled for shipment in the fourth quarter of 2012.

Oil & Gas Post

Promote Your Page Too
LINK

Africa Oil, Denovo to Close Transaction in Few Weeks

- Africa Oil, Denovo to Close Transaction in Few Weeks

Tuesday, September 06, 2011
Africa Oil Corp.

Africa Oil provided an update to its previously announced proposed transaction with Denovo Capital whereby Denovo will acquire all the issued and outstanding shares of Canmex Holdings (Bermuda) I Ltd., Africa Oil's wholly-owned subsidiary.

The TSX Venture Exchange approved the filing of Denovo's filing statement dated August 29, 2011 relating to the Transaction and the Filing Statement was filed on SEDAR on September 1, 2011. Denovo has made its initial submission to the Exchange but has not received conditional approval of the Transaction. Africa Oil and Denovo expect to be in a position to close the Transaction in the next few weeks.

Following the completion of the Transaction, Denovo will, among other things, have consolidated its issued and outstanding common shares on the basis of one post-consolidation common share for every 0.65 pre-consolidation common shares, continued into the Province of British Columbia under the Business Corporations Act (British Columbia) and changed its name to "Horn Petroleum Corporation". For further information regarding the Transaction, please see Denovo's press release dated August 11, 2011.

In connection with the Transaction, Africa Oil announced the results of an independent evaluation of the prospective resources held by Canmex in the Dharoor Valley and Nugaal Valley Blocks in Puntland (Somalia) ("Resource Report"). The Resource Report, effective June 30, 2011, was prepared for Denovo by Petrotech Engineering Ltd. ("Petrotech") and in accordance with the current guidelines outlined in the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities. A copy of the Resource Report may also be found under Denovo's profile on SEDAR.

The Resource Report indicates that gross best estimate prospective resource in the Dharoor Valley and Nugaal Valley Blocks, including both prospects and leads, are in excess of 5.2 billion barrels of oil. A summary of Canmex's gross and net share of the unrisked prospective resources (prospects) and the net present values from the profit oil revenue less the un-recoverable amount of funds from the production operation; discounted at 0, 5, 10, 15 and 20% before and after income tax are presented in the table below. The net cash flow is calculated at forecast prices and escalated costs on the prospective resources, to all future time and after deduction of the capital costs, royalties and before and after deduction of income tax. All cash flow data is in U.S. dollars.

Oil & Gas Post

Promote Your Page Too
LINK

2H Offshore Adds to Management Team

- 2H Offshore Adds to Management Team

Tuesday, September 06, 2011
Aceton Group Ltd.

2H Offshore announced two new appointments. Tim Eyles becomes the managing director of the 2H Offshore group of companies. He will also continue to share the running of 2H Offshore's engineering office in Woking, UK.

At the same time, David Walters, joint leader of the company's Houston, USA, office, has been added to the 2H Offshore global management team as a principal director.

Eyles and Walters joined 2H Offshore in 1998 and 1997 respectively, both directly after graduating from the University of Surrey, UK.

Oil & Gas Post

Promote Your Page Too
LINK

Flexlife Expands Ops across South America

- Flexlife Expands Ops across South America

Tuesday, September 06, 2011
Flexlife

Flexlife has expanded its operations in Brazil to increase its capacity across South America.

The company is targeting initial revenue of approximately £4million per year, but that is expected to ramp up by 30-60% per year within two years.

As well as investing in new office accommodation in Rio de Janeiro at Rua Assembleia, Flexlife is manufacturing its ground-breaking integrity management products locally and offering a full assembly, deployment and maintenance service by staff based in the region.

The company has a suite of game-changing products to identify breaches in flexible pipes and repair them without interruption to production, a first in the 40 year history of the Oil & Gas industry.

Flexlife Chief Executive Stuart Mitchell said, "Flexlife is experiencing a period of significant growth and our new South American operation will expand our capability to offer specialised support to clients.

"Flexlife has continued to build on its reputation for offering a full subsea integrity and project management package, assisting clients to cost-effectively manage all of their subsea assets and infrastructure. We have built up high levels of expertise in deepwater markets and have a proven track record of providing a service that helps operators reduce risk in a cost-effective manner."

Leonardo Dias, Executive Manager Brazil, said, "Our aim is to establish ourselves in Brazil and also target work in Venezuela. We have recruited a team of engineering, technical and support staff who are all highly experienced in the Brazilian Oil & Gas market."

As part of a continuing global growth strategy Flexlife recently appointed Stephen Burgdorf as Vice President of Business Development for North America.

Based in Houston, Texas, he will focus on promoting Flexlife's award-winning offshore project and integrity management services to operators in the region.

A Newcastle base has also been opened in the last few months and the plans are in place to open an additional base in Angola.

Oil & Gas Post

Promote Your Page Too
LINK

Europa Appoints Director

- Europa Appoints Director

Tuesday, September 06, 2011
Europa O&G Holdings plc

Europa announced the appointment of Hugh Mackay as a director of the Company.

As announced on August 11, 2011, Mr. Mackay will take up his position as Chief Executive Officer with effect from October 10, 2011. In order that he can participate in key decisions of the Company fully until that date, the Board has decided to appoint Mr. Mackay as a non-executive director in the meantime.

Europa announced the appointment of Hugh Mackay as a director of the Company.

As announced on August 11, 2011, Mr. Mackay will take up his position as Chief Executive Officer with effect from October 10, 2011. In order that he can participate in key decisions of the Company fully until that date, the Board has decided to appoint Mr. Mackay as a non-executive director in the meantime.

Oil & Gas Post

Promote Your Page Too
LINK

RBG Names New CNNS Operations Director

- RBG Names New CNNS Operations Director

Tuesday, September 06, 2011
RBG

RBG has appointed John Kelly to the newly created role of Central and Northern North Sea (CNNS) operations director.

Mr. Kelly is responsible for leading operational activity across the CNNS (UK) region and ensuring RBG delivers a quality service, whilst maintaining the highest HSEQ standards. The role provides an enhanced operational focus for both onshore and offshore activity throughout the CNNS, which is a significant growth area for RBG.

With more than 25 years experience in the oil and gas industry, Mr. Kelly joins RBG from Wood Group PSN where he previously served as international operations manager. He has a wide range of experience in operational and project management positions and has delivered major projects across the UKCS, Cameroon and Algeria.

Dave Workman, CEO, RBG, said, "I am very pleased to welcome John to the management team. The wealth of experience he brings, from working both in the UK and abroad, will be invaluable in ensuring our CNNS operations continue to achieve the highest standards in safety, quality and service delivery.

"The CNNS is a significant growth area for RBG and we have experienced heightened demand for our integrated services in the past few years. I am confident John's operational and project management expertise and knowledge will serve the company well as we increase our activity across the region."

Mr. Kelly, said, "Joining RBG at this time is an exciting opportunity and the acquisition by Stork Technical Services will open up new opportunities for us. We are looking to significantly increase our activity across the CNNS and I look forward to working with the UK operations team to delivering the highest possible operational standards to our current and future clients."

Oil & Gas Post

Promote Your Page Too
LINK

Sunoco Announced It Plans To Exit Refining Business

- Sunoco Announced It Plans To Exit Refining Business



Sep 6, 2011

Sunoco (NYSE:SUN) announced that it plans to exit its refining business and has begun a process to sell its refineries located in Philadelphia and Marcus Hook, Pennsylvania. The company also announced it is conducting a comprehensive strategic review of the company to determine the best way to deliver value to shareholders.

Lynn L. Elsenhans, Sunoco's chairman and chief executive officer said, "We have made progress in increasing the efficiency of our refineries over the last several years, but given the unacceptable financial performance of these assets, it is clear that it is in the best interests of shareholders to exit this business and focus on our profitable retail and logistics businesses which have higher returns, growth potential, and provide steady, ratable cash flow."

Sunoco has a potential upside of 27% based on a current price of $36.11 and an average consensus analyst price target of $45.86.

Oil & Gas Post

Promote Your Page Too
LINK

Halliburton: 'Phenomenal' Opportunities for Global Pressure Pumping Growth

- Halliburton: 'Phenomenal' Opportunities for Global Pressure Pumping Growth

Tuesday, September 06, 2011
Dow Jones Newswires
HOUSTON
by Ryan Dezember

Halliburton Chief Executive David Lesar said Tuesday there are "fantastic and phenomenal opportunities" for oilfield service companies to expand shale drilling beyond North America, but that growth may come slowly.

"There is a lot to be excited about in the shale plays, but there are obstacles that need to be overcome and that's good because I don't think the industry today could serve a number of increasing shale plays outside the U.S.," Lesar told investors during a webcast presentation in New York.

Halliburton and other oilfield service companies have profited greatly in recent years as North American producers rush to unlock troves of oil and natural gas from deeply buried rock formations, called shales.

Demand for pressure pumping, which enables producers to crack open shales to release oil and gas, has outstripped Halliburton and its competitors' ability to provide the service, for example. In the last ten years pressure pumping has leap-frogged land drilling, offshore construction and offshore drilling to become the largest segment of the oilfield services industry, Lesar said.

While North America holds an estimated 15% of worldwide shale reserves, it has about 80% of global pressure pumping capacity.

"Even then we cannot keep up with the demand," Lesar said. "The challenge is going to be getting ramped up to address the shale opportunities outside the U.S."

Lesar said Australia, Poland and Argentina each have great potential for significant shale development, but that Australia is the only market that currently has the necessary geology, regulatory environment, pricing and infrastructure. Poland, he said, is lacking in oilfield infrastructure and in Argentina, where Halliburton recently completed South America's first shale well for Apache, government regulated natural gas prices are too low.

"Shale gas could develop very quickly in Argentina, but only at the right price and we're not there yet," Lesar said.

Global demand for natural gas should foster overseas shale development, though. Lesar said Halliburton expects worldwide demand for natural gas to rise 52% by 2030, three times the growth rate of oil demand.

Halliburton also forecasts increasing demand for deep-water drilling services. Lesar said the company is mobilizing for 31 jobs around the world, many in regions new to Halliburton, including Tanzania, Vietnam and Brunei.

Mobilizing for such jobs "doesn't come cheap," he said. "The up-front costs will weigh heavily on our margins and have weighed heavily on our Eastern Hemisphere margins, but I can tell you, this investment will pay off in the future."

Much of the work is being ordered by national oil companies, who are less likely than they have been in the past to share their resources with international oil companies, instead turning to service companies to help them extract their reserves, Lesar said. Four of Halliburton's top ten customers are now national oil companies, he said.

Lesar also said that Halliburton's pending purchase of Multi-Chem Group LLC., a deal that was announced earlier Tuesday, will give Halliburton the fourth largest production and completion chemical maker. Expected to close in the fourth quarter, the acquisition will also help Halliburton become less reliant on its peers' productions.

"It's been frustrating pumping competitors chemicals through our equipment," Lesar said.

Terms of the acquisition were not disclosed.

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

Oil & Gas Post

Promote Your Page Too
LINK

BOEMRE: Additional Personnel Redeployed at GOM

- BOEMRE: Additional Personnel Redeployed at GOM

Tuesday, September 06, 2011
BOEMRE

Offshore oil and gas operators in the Gulf of Mexico are re-boarding platforms and rigs following Tropical Storm Lee. The Bureau of Ocean Energy Management, Regulation, and Enforcement (BOEMRE) Hurricane Response Team is monitoring the operators' activities. The team will continue to work with offshore operators and other state and federal agencies until operations return to normal.

Based on data from offshore operator reports submitted as of 11:30 a.m. CDT Tuesday, personnel have been evacuated from a total of 131 production platforms, equivalent to 21.2 percent of the 617 manned platforms in the Gulf of Mexico. Production platforms are the structures located offshore from which oil and natural gas are produced. Unlike drilling rigs, which typically move from location to location, production facilities remain in the same location throughout a project's duration.

Personnel have been evacuated from 12 rigs, equivalent to 17.1 percent of the 70 rigs currently operating in the Gulf. Rigs can include several types of self-contained offshore drilling facilities including jackup rigs, submersibles and semisubmersibles.

As part of the evacuation process, personnel activate the applicable shut-in procedure, which can frequently be accomplished from a remote location. This involves closing the sub-surface safety valves located below the surface of the ocean floor to prevent the release of oil or gas. During the recent hurricane seasons, the shut-in valves functioned 100 percent of the time, efficiently shutting in production from wells on the Outer Continental Shelf and protecting the marine and coastal environments. Shutting-in oil and gas production is a standard procedure conducted by industry for safety and environmental reasons.

From operator reports, it is estimated that approximately 60.5 percent of the current oil production in the Gulf of Mexico has been shut-in. It is also estimated that approximately 41.6 percent of the natural gas production in the Gulf of Mexico has been shut-in. The production percentages are calculated using information submitted by offshore operators in daily reports. Shut-in production information included in these reports is based on the amount of oil and gas the operator expected to produce that day. The shut-in production figures therefore are estimates, which BOEMRE compares to historical production reports to ensure the estimates follow a logical pattern.

After the storm has passed, facilities will be inspected. Once all standard checks have been completed, production from undamaged facilities will be brought back on line immediately. Facilities sustaining damage may take longer to bring back on line. BOEMRE will continue to update the evacuation and shut-in statistics at 1:00 p.m. CDT each day as appropriate.

Oil & Gas Post

Promote Your Page Too
LINK

Foreign Companies Apply for Czech Shale Gas Exploration Permits

- Foreign Companies Apply for Czech Shale Gas Exploration Permits

Tuesday, September 06, 2011
OilPrice.com
by Joao Peixe

Following the lead of neighboring Poland, where shale gas exploration is already under way, foreign and local companies have applied for exploration permits in the Czech Republic.

Current applicants for the exploration permits include Basgas Energia Czech, a unit of the Australian-based exploration company Basgas and the Czech unit of British company Cuadrilla Morava, along with domestic oil and gas company Moravske Naftove Doly, Hospodarske Noviny newspaper reported.

Local Cuadrilla representative Stanislav Benada expects to hear from the Czech authorities about the applications in the autumn, but added that discussions with environmental officials regarding other possible exploration areas near the capital Prague indicated substantial resistance, commenting, "We are prepared to work with local authorities and hold meetings to explain the extraction process" before concluding that as yet no exploratory drilling has been approved and commenced, no one currently had an idea what shale gas reserves might be exploitable in the Czech Republic.

The Environment Ministry expanded on Beneda's observation, telling the media, "In the Czech Republic until now there has been no consideration of extracting natural gas from shale stone, and reserves of this type have not been found (or systematically searched for) or technically and economically evaluated."

(Joao Peixe is Deputy Editor of OilPrice.com. The original article appears here.)

Oil & Gas Post

Promote Your Page Too
LINK

Cooper, Beach Make New Oil Field Discovery

- Cooper, Beach Make New Oil Field Discovery

Tuesday, September 06, 2011
Cooper Energy Ltd.

Cooper Energy announced that Germein-1 in PEL92 has made a new oil field discovery.

Wireline logs have confirmed that Germein-1 discovered a 2.5 meters net oil column in the Namur Sandstone formation. The recoverable volumes will be estimated after the productive performance of the well has been observed.

Germein-1 has been suspended as a future PEL92 production well that will be tied into the PEL92 production system.

The rig will be moved to Butlers-4 well location. Butlers-4 is an appraisal/development well on the Butlers Oil Field. Further information on Butlers-4 well will be made at the appropriate time.

Joint Venture Participants are Cooper Energy (25%) and Beach Energy (75% and Operator).

Oil & Gas Post

Promote Your Page Too
LINK

Activities Underway at Strike's US Projects

- Activities Underway at Strike's US Projects

Tuesday, September 06, 2011
Strike Energy Ltd.

Following Strike's successful $16.8 million capital raising the Company is well positioned to accelerate our USA exploration program.

Activities are now underway on two of the Company's key projects. In the event of success, each has the potential to significantly increase the value of Strike's USA business.

WILCOX SLOPE, St Landry Canyon Project, onshore Louisiana

Strike has a 10% working interest in the St Landry Canyon Project, onshore Louisiana. The 37,000 acre project area contains a number of prospects and is onshore and on trend from McMoRan's Davy Jones discovery, which is estimated to contain up to 6.7 Tcfe of gas and liquids.

The first target to be tested is the West Plumb Bob Prospect which is estimated to have a resource potential of 360 Bcfe including 15 million barrels of condensate (P50 case) and up to 680 Bcfe (P10 case).

The AD Kennison #1 well on the West Plumb Bob Prospect spudded on August 31 and has a planned total depth of 18,100 feet (5,517 meters). Drilling is expected to take 100 to 120 days. Strike has already funded its share of the well's dry hole cost.

EAGLE FORD SHALE, Eagle Landing Joint Venture, Texas

Strike has a 27.5% working interest in Eagle Landing Joint Venture, which has been building a lease hold position within the Eagle Ford Shale trend in Texas. The Eagle Ford Shale has rapidly emerged as one of the USA's most sought after unconventional gas and liquids plays.

The Joint Venture has now increased its lease position to 22,764 acres (6,260 acres net to Strike). Recently reported production rates from Eagle Ford Shale wells adjacent to Strike's acreage have confirmed the extension of the Eagle Ford productive trend. The Joint Venture is planning to further evaluate the acreage through a drilling program over the next six months.

Oil & Gas Post

Promote Your Page Too
LINK

CNPC Wins Bid for Afghan Blocks

- CNPC Wins Bid for Afghan Blocks

Tuesday, September 06, 2011
Tethys Petroleum Ltd.

Tethys announced that it understands that the Chinese State Oil Company, CNPC, has won the tender for the Kashkari, Bazarkhami and Zamarudsay blocks in Northern Afghanistan which Tethys was also bidding for.

As a commercial oil and gas company Tethys could not offer the same terms as CNPC which, in Tethys' view, would make the project non-commercial. Tethys still believes there is good oil and gas potential in Afghanistan and will evaluate any other future opportunities there.

Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republics of Tajikistan, Kazakhstan and Uzbekistan. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.

Oil & Gas Post

Promote Your Page Too
LINK

Imperial Reaches TD at Green Tide SWDF

- Imperial Reaches TD at Green Tide SWDF

Tuesday, September 06, 2011
Imperial Resources Inc.

Imperial announced that its Green Tide Salt water Disposal Facility ("SWDF") well has now reached a total depth of 8,594 feet, having successfully penetrated the target Ellenburger formation by approximately 1,700 feet. Drilling with the 6-3/4 inch bit has now been completed and the well has been logged.

The well will now be cased to 7,500 feet and the casing cemented in place from a depth of 7,500 feet back up to 5,700 feet. Once casing has been completed the Company intends to drill an additional 350 to 650 feet using a 4-3/4 inch bit targeting several high porosity strands within the Ellenburger formation to maximise potential disposal capacity. The goal is to create between 1,450 feet to 1,750 feet of open hole cutting through known high porosity zones below the casing string.

Additional work will commence on the surface equipment during the course of this week so that once all work on the wellbore has been completed the SWDF can be restored to commercial operations. Subject to completion the SWDF will open for business with the intention of reaching its full disposal capacity of 15,000 barrels per day as soon as possible. At full capacity the Company believes the Green Tide SWDF has the potential to generate significant cash flow at relatively low operating costs.

Oil & Gas Post

Promote Your Page Too
LINK

UK Govt Reveals Device to Cap Underwater Oil Blowout

- UK Govt Reveals Device to Cap Underwater Oil Blowout

Tuesday, September 06, 2011
Dow Jones Newswires
LONDON

The U.K. government will later Tuesday reveal a device designed to cap an underwater oil well in the event of a major incident so as to minimize environmental damage, the Oil Spill Prevention and Response Advisory Group said.

The device was designed in response to BP PLC's (BP) oil spill in the Gulf of Mexico in April 2010. The cap works by shutting in and holding pressure on an uncontrolled well and uses a choke and a series of valves to stop the flow of oil into the water.

The device can be deployed in water as deep as 10,000 feet and was designed specifically for use in wells in the U.K. continental shelf.

"The successful completion and availability of this cap marks a significant step forward in industry preparedness and significantly bolsters our capability to deal with a major loss of well control," said James House, chair of the Oil Spill Prevention and Response Advisory Group.

The device allows a quick response and is essential for minimizing potential pollution in the water, even though the U.K hasn't had a major loss of well control in 20 years of offshore operations, House said.

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

Oil & Gas Post

Promote Your Page Too
LINK

Technip Scores Maersk Gig in North Sea

- Technip Scores Maersk Gig in North Sea

Tuesday, September 06, 2011
Technip

Technip was awarded an installation contract, worth approximately €40 million, by Maersk Oil North Sea UK Limited for the Gryphon Area Reinstatement Program – GARP, located about 320 kilometers North-East of Aberdeen in 110 meters of water.

This contract covers installation of 15 dynamic risers, 2 dynamic and 2 static umbilicals, 11 flexible flowlines as well as subsea equipment.

Technip's operating center in Aberdeen, Scotland will execute the contract, which is scheduled to be completed in the second semester of 2012. Vessels from the Technip fleet will be used for the campaign, including Skandi Arctic and Wellservicer.

Oil & Gas Post

Promote Your Page Too
LINK

Lufkin Industries Announced It Signed Agreement To Acquire All Assets Of Quinn's Oilfield Supply Ltd

- Lufkin Industries Announced It Signed Agreement To Acquire All Assets Of Quinn's Oilfield Supply Ltd



Sep 6, 2011

Lufkin Industries (NASDAQ:LUFK) announced it has signed an Asset Purchase Agreement to acquire substantially all of the assets of Quinn's Oilfield Supply Ltd., including certain affiliates, for about $303 million in cash subject to certain adjustments.

John F. Glick, President and Chief Executive Officer of Lufkin, stated, "The acquisition of Quinn's continues our strategy of expanding our product portfolio in artificial lift systems, while at the same time extending our sales and service network in the increasingly active oil provinces of the United States and Western Canada. The integration of Lufkin's surface beam pump unit with Quinn's downhole rod pump will enhance Lufkin's ability to package complementary products and allow us to better optimize the rod lift system to the benefit of our customers. Quinn's is well positioned to benefit from the large increase in unconventional oil plays as oil shale wells generally transition to artificial lift approximately 18 to 24 months after completion. Quinn's downhole rod pumps and PCPs are also a clear fit with our Automation strategy of integrating downhole devices and instrumentation to monitor and control production."

Lufkin Industries has a potential upside of 62.3% based on a current price of $58.83 and an average consensus analyst price target of $95.5.

Oil & Gas Post

Promote Your Page Too
LINK

ConocoPhillips Completes Shutdown of Bohai Bay Oilfield

- ConocoPhillips Completes Shutdown of Bohai Bay Oilfield



Sep 6, 2011

ConocoPhillips China (NYSE:COP) has completed the shutdown of its Bohai oilfield operations, as ordered by China marine authority.

The company says it will continue to work with CNNOC (NYSE:CEO), which holds a 51% stake of in the oil field, to develop a plan to reduce reservoir pressure to ensure the safety of the field

ConocoPhillips (NYSE:COP) has a potential upside of 24.6% based on a current price of $66.44 and an average consensus analyst price target of $82.8.

Oil & Gas Post

Promote Your Page Too
LINK

BP Gets Govt OK for Kinnoull Field Development

- BP Gets Govt OK for Kinnoull Field Development

Tuesday, September 06, 2011
BP plc

On behalf of its co-venturers BP announced an agreement to invest up to £700 million to progress a project to develop the Kinnoull reservoir in the central North Sea.

Kinnoull is the largest of three reservoirs that are being developed as part of the Andrew Area developments project, and contains 45 million barrels of oil equivalent. The reservoir will be connected to BP's Andrew platform and enable production to be extended to 2020 and beyond.

Production from Kinnoull is forecast to peak at 45,000 barrels per day and be exported via the existing Forties pipeline system to Kinneil and the CATS pipeline system to Teesside.

Trevor Garlick, Regional President for BP's North Sea business said, "The Kinnoull project is a further demonstration of BP's vision to sustain a material and high quality business in the North Sea region. It is also a showcase for the outstanding subsea expertise that exists within the UK. At its peak the project will create employment for over 1,000 people in the UK."

Charles Hendry, Minister of state for Energy and Climate Change said, "I am pleased to see that BP is taking forward the development of the Kinnoull field. With around 90% of the development involving UK firms, this is a real big win for our domestic supply chain and shows that the thriving North Sea oil and gas sector continues to deliver economic benefit. I hope major global players continue to harness the expertise of UK companies as new developments come forward."

In order to access the new reservoir, the project will install a new subsea system and caisson onto the Andrew platform. The backbone of the subsea system will be 4 subsea bundles with a total length of 28 km - the longest bundle system in the world - which will carry the fluids to the Andrew platform for processing. The bundle system is being fabricated by Subsea 7 at its facility in Wick, Scotland.

To accept the new Kinnoull production fluids, and to facilitate the production from the Lower Cretaceous reservoir below the Andrew reservoir, the Andrew platform will undergo major modifications including the addition of a 750 ton process module. Construction will be completed over 2 years, with the flotel Borgholm Dolphin on location throughout. The Andrew platform is expected to be shut down for 18 months during this campaign during which time operational work will also be undertaken to maintain the efficiency and integrity of the existing Andrew platform facilities.

The new facilities are scheduled to commence production in 2013.

BP owns 77.06%, with other interests as follows: Eni (16.67%); Summit (6.27%)


Oil & Gas Post

Promote Your Page Too
LINK

Frontera Commences Drilling Ops at Georgia Field

- Frontera Commences Drilling Ops at Georgia Field

Tuesday, September 06, 2011
Frontera Resources Corp.

Frontera announced commencement of new drilling operations at the Mtsare Khevi Field within its Shallow Fields Production Unit, Block 12, in the country of Georgia.

Site preparation and mobilization of drilling equipment were completed in late August and drilling is currently underway at the Mtsare Khevi #31 development well location. The #31 well is the first of a planned twenty well program over the next twenty four months designed to exploit multiple Upper Pliocene sandstone reservoirs situated at a depth of approximately 300 meters. In addition, efforts are underway to implement a pump optimization program designed to enhance production from existing oil wells within the field. Planning is also progressing related to a previously disclosed infrastructure project designed to initiate gas sales from currently shut-in gas wells within the field.

The Mtsare Khevi Field, which Frontera operates with 100% interest, is located in the western portion of the Shallow Fields Production Unit and currently delivers approximately 90 barrels of oil per day from its shallow reservoirs. Twenty new well locations have been identified for ongoing low-cost drilling, targeting both oil and gas reservoirs and providing for reservoir pressure support through three proposed water injection wells.

The independent engineering firm of Netherland, Sewell & Associates "NSA" places a "Best Estimate" for gross original oil-in-place for the Mtsare Khevi Field of 14.9 million barrels, with a "low"-to-"high" range of 11.3-19.7 million barrels; and a "Best Estimate" for associated recoverable gross contingent and unrisked prospective oil resources of 2.1 million barrels, with a "low"-to-"high" range of 1.4-3.2 million barrels. This assessment is generally consistent with Frontera's internal estimates.

For gas, NSA places a "Best Estimate" for gross original gas-in-place for the Mtsare Khevi Field of 2.6 billion cubic feet, with a "low"-to-"high" range of 2.1-3.1 billion cubic feet; and a "Best Estimate" for associated gross contingent and unrisked prospective resources of 1.5 billion cubic feet, with "low"-to-"high" range of 1.2-1.9 billion cubic feet. Frontera's internal estimates reflect additional resource potential along the northwest trend of the field's fault block, which NSA have not yet been asked to evaluate.

The Shallow Fields Production Unit is located in the central portion of Block 12 and represents what the Company believes to be an extensive trend of low-cost, low-risk oil and gas resources. The unit contains a number of known oil fields; Mirzaani, Mtsare Khevi, Nazarlebi and Patara Shiraki, representing undeveloped or under-developed fields that have additional associated exploitation potential. The unit also contains an inventory of "look-alike" exploration prospects, the Kakabeti, Lambalo, Mkralihevi, Mlashiskhevi-Oleskhevi and Tsitsmatiani prospects, each of which contains Soviet-era wells that had hydrocarbon shows while drilling, but were never placed on production or adequately appraised. Reservoir objectives are the well-known, regional clastic reservoirs of Pliocene and Miocene age, situated at depths from 10 meters to 1,500 meters.

Further to the successful completion of the recently announced equity financing package, the new drilling campaign at Mtsare Khevi Field is part of an overall plan whereby Frontera intends to increase production from its portfolio within Block 12 from 225b/d to c.5,000b/d over the next two years,

Steve C. Nicandros, Chairman and Chief Executive Officer, commented, "The commencement of drilling operations, which began in August at the Mtsare Khevi Field, represents the launch of an exciting and extensive drilling campaign at this undeveloped, low-cost asset. Like the other assets within the Shallow Fields Production Unit, this field represents near term value realization and reserve additions for our company."

Oil & Gas Post

Promote Your Page Too
LINK

TGS, Fugro Team Up in Greenland Survey

- TGS, Fugro Team Up in Greenland Survey

Tuesday, September 06, 2011
TGS-NOPEC Geophysical Co. ASA

TGS has commenced a new 1,000 km multi-client 2D survey in Northeast Greenland in partnership with Fugro.

This survey will enable customers to prepare for the announced Greenland Licensing Round in 2012/2013 and will significantly add to a data set that TGS has been growing since 2008 in this promising region. After this year's data acquisition, TGS will be able to offer approximately 4,500 km of new multi-client 2D data, a large volume of reprocessed multi-client 2D data and full coverage of aeromagnetic/gravity data over the basins that are to be included in the planned licensing round.

The new seismic data is being acquired by the M/V Akademik Shatskiy supported by the ice breaker M/V Fennicia and is scheduled to complete during 4Q 2011. Data processing will be performed by TGS and data will be available to clients during 1Q 2012.

Oil & Gas Post

Promote Your Page Too
LINK