QR to Acquire Acreage in Permian, Ark-La-Tex, Mid-Continent

- QR to Acquire Acreage in Permian, Ark-La-Tex, Mid-Continent

Monday, September 12, 2011
QR Energy, LP

QR Energy, LP ( QRE) announced Monday that it has signed a definitive agreement to acquire oil and natural gas properties from its sponsor, Quantum Resources Fund (QRF) for a purchase price of $577 million. The transaction consists of the issuance by QRE to QRF of $350 million of Convertible Preferred Units and cash of $227 million from borrowings under QRE's existing bank credit facility, subject to lender approval of an increase in the facility's borrowing base. The transaction is expected to close on or about October 1, 2011, subject to third party approvals and customary closing conditions.

Transaction Highlights

-- Properties located in existing core areas: Permian Basin, Ark-La-Tex and Mid-Continent

-- Net production of 8,000 Boed expected for the fourth quarter of 2011

-- Total proved reserves of 37.1 MMBoe are 65% proved developed and 41% liquids (oil and NGLs)

-- More than 1,500 producing oil and natural gas wells

-- Inventory of low risk development opportunities

-- Reserve life (R/P) of 12.7 years

-- 77% operated by value based on standardized measure

-- Expected to be immediately accretive to Distributable Cash Flow per unit

Chief Executive Officer Alan L. Smith commented, "This acquisition from our sponsor has assets that fit our investment criteria of mature, longer life properties and more than doubles QR Energy's production and reserves. The properties are located in our existing core areas and offer an inventory of low risk development projects that will supplement our production in the years to come. We are pleased to be able to finance the transaction with a combination of equity and bank debt, and we expect the transaction to deliver significant accretion to our unitholders."

Asset Profile

QR Energy estimates that the acquisition properties contain approximately 37.1 MMBoe of proved reserves as of October 1, 2011, based on internal estimates using spot oil and natural gas prices as of September 2, 2011 ($86.48/Bbl and $3.87/MMBtu). The proved reserves are 65% proved developed and contain 41% liquids. Operations include 1,574 gross and 960 net wells on approximately 109,305 net acres concentrated in Texas, Oklahoma and New Mexico. They provide numerous low risk development opportunities.

Transaction Financing

As part of the total consideration, QR Energy will issue to QRF $350 million of Convertible Preferred Units (16.7 million units) at a par value of $21.00 per unit. For the first three years, the Convertible Preferred Units will receive a quarterly cash distribution equal to a 4.0% annual coupon on the par value of $21.00. After three years, the quarterly cash distribution will be equal to the greater of (a) $0.475 per unit or (b) the cash distribution payable on each common unit for such quarter.

QRF may convert the Convertible Preferred Units to common units on a one-to-one basis during the first two years after the issuance date following 30 consecutive trading days during which the volume-weighted average price for common units equals or exceeds $27.30 per common unit. In addition, QRF may convert the Convertible Preferred Units to common units on a one-to-one basis anytime after two years from the issuance date.

If QRF has not converted the Convertible Preferred Units to common units by the third anniversary, QR Energy may force their conversion at $21.00 provided that conversion is in the 30 calendar days following 30 consecutive trading days during which the volume-weighted average price for common units equals or exceeds (1) $30.00, provided that (a) an effective shelf registration statement covering re-sales for the converted units is in place or (2) $27.30, provided that (a) from directly above is satisfied plus (b) the arrangement for one or more investment banks to underwrite the converted unit sale following conversion (with proceeds equal to not less than $27.30 less (i) a standard underwriting discount and (ii) a customary discount not to exceed 5% of $27.30). For both (1) and (2) above, the conversion will have a value of not less than $100 million in the aggregate (provided that if less than $100 million remains outstanding, such conversion will relate to all remaining Class C Convertible Preferred Units then outstanding).

QR Energy may force conversion after the fifth anniversary at $21.00 and (a) in the 30 calendar days following 30 consecutive trading days during which the volume-weighted average price for common units equals or exceeds $27.30 and (b) subject to having an effective shelf registration statement covering re-sales for the converted units in place. The conversion will have a value of not less than $100 million in the aggregate (provided that if less than $100 million remains outstanding, such conversion will relate to all remaining Class C Convertible Preferred Units then outstanding).

The debt financing for the transaction is estimated to be approximately $234 million including estimated transaction fees, which will be funded with borrowings under the Partnership's revolving credit facility. These borrowings are subject to lender approval of a $300 million increase in QR Energy's borrowing base related to the pending acquisition of additional oil and gas properties, resulting in a total borrowing base of $630 million effective upon closing.

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Samson O&G Increases Acreage in Hawk Springs Area

- Samson O&G Increases Acreage in Hawk Springs Area

Monday, August 29, 2011
Samson O&G Ltd.

Samson O&G has been awarded, on a conditional basis, approximately 956 net acres of leasehold offered by competitive tender from the University of Wyoming. This land is part of the University's agricultural research facility. Because the acreage is within Samson's propriety 3-D seismic coverage, Samson had a significant advantage by being knowledgeable about the rock qualities in the area. Samson has also been successful in acquiring additional acreage in the State of Wyoming's lease sales as well as leasing acreage from fee owners. Accordingly, Samson has now increased its holding to 17,489 net acres in the Hawk Springs area. This holding assumes that Samson's farminee exercises its full right to earn a 25% interest within the farmin area.

Defender US33 #2-29H, Goshen County, Wyoming, Samson 37.5% working interest (carried)

Samson further advises that the Defender US33 #2-29H well has reached the Niobrara core point at a depth of 6,937 feet and is currently cutting 120 feet of core from the Niobrara 'A' and 'B' intervals.

This vertical pilot hole will then be drilled to an approximate total depth of 7,450 feet, at which point the hole will be logged, with both the core data and the log data used to determine the final horizontal azimuth. The vertical pilot hole will be plugged back to a kick-off point above the Niobrara. From the kick-off point, the borehole angle will be built until it is horizontal and the bit is positioned within the Niobrara "B". Then 7-inch intermediate casing will be set through the curve and the lateral will thereafter be drilled for a distance of approximately 4,300 feet within the Niobrara "B". The well will be completed using a plug and perforation process in 15-stages that is expected to involve the placement of approximately 3,000,000 pounds of proppant into the Niobrara Formation. The Defender US33 #2-29H is the first Niobrara appraisal well in Samson's Hawk Springs project.

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Magnum Hunters Acquires Acreage in Williston Basin

- Magnum Hunters Acquires Acreage in Williston Basin

Friday, August 05, 2011
Magnum Hunter Resources Corp.

Magnum Hunter's wholly owned subsidiary, Williston Hunter ND, LLC, has entered into a Purchase and Sale Agreement ("PSA") with a privately-held company ("Seller") for all of the Seller's operated working interest ownership in oil and gas mineral leases and 191 wells on approximately 15,500 gross acres located within four counties of the Williston Basin of North Dakota. Gross production from the properties is approximately 833 BOE per day. Total proved reserves attributable to the acquired properties are estimated at 2.6 million barrels of oil equivalent. Magnum Hunter presently owns an approximate 47% working interest in these oil and gas properties. Upon closing of this transaction, Magnum Hunter will own an approximate 95% working interest in these properties. The effective date of the transaction is April 1, 2011. Magnum Hunter intends to close the purchase transaction on or before August 18, 2011.

Magnum Hunter will pay to the Seller a total purchase price of $57 million, to be paid at closing in the form of $55.0 million in cash and $2.0 million in Magnum Hunter restricted common stock. The number of shares of Magnum Hunter common stock will be determined based on the volume weighted average price of the Company's common stock during the five trading days prior to closing. Magnum Hunter intends to fund the cash portion of this purchase through existing liquidity and borrowings under the Company's senior credit facility. Additionally, the Seller will retain an overriding royalty interest in certain of the properties in various amounts not to exceed 2%. No existing debt of Seller will be assumed by Williston Hunter in connection with the closing of the acquisition.

The PSA between Williston Hunter and the North Dakota based privately-held Seller was negotiated pursuant to a Settlement Agreement between Magnum Hunter and the Seller as a result of certain lawsuits pending in the United States District Court for the District of North Dakota (Northwestern Division). The agreed upon settlement between the parties will resolve all outstanding claims. The parties will file stipulations with the District Court for dismissal, with prejudice, of the two pending civil actions upon the PSA's final closing.

Management Comments

Mr. Glenn Dawson, President of Williston Hunter, commented, "We are pleased to announce this final agreement to acquire these Williston Basin properties where we have been a minority owner for years. With this 'bolt on' transaction, we will be establishing an operating base in North Dakota which has been a primary objective as we continue to grow our presence in the Williston Basin. Our game plan in 2011 is to continue our geological and engineering evaluation of these properties so that we will be in a position to prudently develop these assets beginning early next year."

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US Natural Gas Adds Acreage in W. Virginia

- US Natural Gas Adds Acreage in W. Virginia

Tuesday, August 02, 2011
US Natural Gas Corp.

US Natural Gas has acquired leases totaling approximately 250 acres and three producing natural gas wells in Wayne County, West Virginia.

The Fuller No. 691 well was drilled and completed in 1962 to a depth of 3608' with production occurring from both the Coniferous and McKenzie-Keefer formations. The Company intends on replacing the above ground completion components prior to placing the No. 691 well into production.

The McGee No. 2 well was drilled and completed in 1959 to a depth of 3610' with production occurring from the Coniferous formation. The Company will install new well head and above ground completion components prior to placing this well into production.

The McGee No. 622 well was drilled and completed in 1960 to a depth of 1869'. The well was later deepened to a depth of 3944' with production occurring from both the McKenzie-Keefer and Tuscarora Sandstone formations. The Company will swab this well of any fluids within the wellbore and then place the well into production.

The Company's projected daily combined production from the three wells is on average 60 mcf/day. At current pricing for natural gas of $4.50/mcf, the Company's conservative two year revenue estimate is $200,000.

"The addition of these three wells in Wayne County, West Virginia compliments our portfolio of producing properties in the area," stated Wayne Anderson, President of US Natural Gas Corp. "It is our goal to have all required work completed and the wells tied into our gathering system prior to mid-September with revenue generated immediately thereafter."

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American Petro-Hunter Adds Acreage in South Oklahoma

- American Petro-Hunter Adds Acreage in South Oklahoma

Wednesday, July 20, 2011
American Petro-Hunter Inc.

American Petro-Hunter has executed a Purchase and Sale Agreement which entitles American Petro-Hunter to acquire a 40% Working Interest in a minimum of 3,000 acres of lands in South-Central Oklahoma. The Company has designated the new acreage as the "South Oklahoma Project."

The acreage covers highly prospective Mississippi Limestone targets which, through detailed sub-surface geological mapping and extensive engineering, show Mississippi targets similar and analogous to the recently discovered oil and gas reservoir now being exploited at the North Oklahoma Project. Based on the commercial success of the NOM-1H horizontal well, and the Company's recently announced development plan for the Northern project area which includes an additional 11 horizontal wells, the new South Oklahoma Project offers considerable opportunities to increase the Company's presence in this increasingly important and highly productive region. Additional lands may be acquired and added to the 3,000 acres as leasing is ongoing.

Currently, the Company and engineers have identified 5 key areas under the 3,000 acres which, if developed on 160 acre spacing, could allow future development of 18 additional locations for horizontal wells. Over the next several months, targets will be refined and prioritized with plans to spud the first well in late 4Q or early 2012. The Northern and Southern project development strategy aims for synchronized operations with new drilling commencing every other month, thus ensuring a continuous area wide drilling program throughout the next 24 to 36 months.

Company President Robert McIntosh stated, "By adding these new South Oklahoma projects to our asset base, the Company forecasts the regional drilling of up to 29 horizontal wells in the future which, based on the results we have seen to date, will give American Petro-Hunter a key presence in the emerging Mississippi play and demonstrates that growth by the drill bit is a formula for success in Oklahoma."

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Gulfport Adds Acreage in Utica Play

- Gulfport Adds Acreage in Utica Play

Monday, July 11, 2011
Gulfport Energy Corp.

Gulfport reported an increased acreage position in the Utica Shale of Eastern Ohio and resource assessment and provided an update on the TEW-E exploratory well in Thailand.

Utica Shale Leasing Update

Gulfport continues to actively expand its acreage position in the Utica Shale of Eastern Ohio. To date, Gulfport has acquired leasehold interests in approximately 35,000 gross (17,500 net) acres. Gulfport currently has commitments which could bring its position in the Utica Shale to approximately 110,000 gross (55,000 net) leasehold acres if it acquired all such committed acreage. Gulfport is also currently evaluating additional acquisitions in the Utica Shale that could potentially increase its commitments to approximately 130,000 gross (65,000 net) leasehold acres in the coming months. Gulfport will serve as operator of its acreage in the Utica Shale and currently plans to bring a rig into the play in early 2012 to begin drilling its acreage.

TEW-E Exploratory Well Update

Tatex Thailand III, a company in which Gulfport owns a 17.9% interest, concluded drilling operations on the TEW-E well in March 2011, the second exploratory well drilled by Tatex III on an approximate one-million acre concession block in Northeastern Thailand. The well was drilled to a total depth of 15,026 feet and logged over 5,000 feet of apparent possible gas saturated column. TEW-E experienced gas shows and carried a flare measuring up to 25 feet after drilling below the intermediate casing point of 9,695 feet.

As previously announced, Tatex III recently conducted a coil tubing operation meant to remove compacted debris that formed a blockage in the open-hole portion of the TEW-E wellbore. Due to the limited pumping capacity of the coil tubing unit, the operation was unsuccessful in removing the blockage. Consequently, Tatex III has scheduled a drilling rig to return to the TEW-E by September 2011 and commence operations to remove the debris and test the well.

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Alamo Adds Appalachian Acreage

- Alamo Adds Appalachian Acreage

Tuesday, June 28, 2011
Alamo Energy Corp.

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

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

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

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

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EGPI Signs LOI for Tx. Acreage

- EGPI Signs LOI for Tx. Acreage

Monday, June 27, 2011
EGPI Firecreek Inc.

EGPI Firecreek has signed a Letter of Intent with Capco Resources of Texas to acquire the Brown Snyder Oil and Gas Leases covering over 640 acres located near Abilene, Jones County, Texas.

EGPI has already begun due diligence and project evaluations with CAPCO in anticipation of the acquisition, including proposed Well Recompletion and Enhancement Work programs. The Company has set a projected date of July 31, 2011, to complete the acquisition of the Brown Snyder property and its oil and gas interests.

The final acquisition will be subject to final negotiations, documentation and requisite approvals. The Company expects to acquire working interests and half of the corresponding 75% Net Revenue Interest associated with the oil and gas leases, including oil and gas reserves and all assets located in Abilene, Texas, inclusive of all surface equipment associated with seven of the nine existing wells that are to be reworked, and participation rights in all future drilling activities.

The proposed operator, Chan West Oil Corporation, is evaluating potentials for a rework program on five to seven of the existing oil wells on the Brown Snyder leases. The wells are currently drilled at a depth of about 3,000 feet, and the rework procedures proposed will consist of fracing the zone at a shallower depth of approximately 2,500 feet where offset wells have shown success.

Dennis Alexander, CEO and Chairman, stated, "We look forward to working with the CAPCO management in order to move forward now that we have entered into a Letter of Intent. We also continue our plans for growth within our oil and gas division, through the acquisition of the Brown Snyder lease interests." He further stated, "We believe the upside potential for production activity and enhancement on this property, utilizing modern state-of-the-art techniques, will present an excellent opportunity for the Company."

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Samson O&G Acquires Additional Acreage in Bakken Play

- Samson O&G Acquires Additional Acreage in Bakken Play

Friday, June 24, 2011
Samson O&G Ltd.

Samson O&G has agreed to acquire up to 90,000 net acres of oil and gas leases in the Fort Peck Indian Reservation in, Roosevelt County, Montana, from Fort Peck Energy Company LLC (FPEC) for an undisclosed price.

Samson's new Roosevelt Project is being acquired in three tranches:

Tranche 1 is a 20,000 acre block to be acquired immediately upon closing that includes a two well drilling obligation. Tranche 2 is an option to acquire an additional 20,000 acres upon the completion of the initial two wells in Tranche 1. Tranche 3 is a 50,000 acre area covered by an Area of Mutual Interest where Samson and FPEC have agreed to jointly acquire additional leases.

Samson plans to fund its acquisition costs and the drilling of the initial two appraisal wells from its existing cash resources. While Samson's ultimate ownership interest in the three Tranches will vary, depending on FPEC's future decisions whether to back in to an interest in the acquired acreage, Samson will hold at least a 66.66% working interest (53.34% net revenue interest) in all of the acquired acreage.

The Roosevelt Project is located in a technically attractive, but largely undrilled part of the Williston Basin. After exhaustive study, Samson's technical staff has concluded that the area is part of the Bakken continuous oil accumulation with adequate porosity and oil saturation for commercial production. Samson is not alone in reaching such a conclusion as the acreage block is surrounded by leases held by other well-known energy industry participants.

The initial two well drilling program will be initiated as soon as practicable, with a target spud date of September 1st for the first well. Drilling of the second well would be expected immediately following the completion of the first well. Both wells are planned to be drilled as 4,500 foot laterals in the middle Bakken formation and then fracture stimulated using a multi stage, external casing packer completion technique.

Samson has contracted with Halliburton's Consulting and Project Management business line to provide well construction planning, and drilling and completion supervision for the initial two wells. This agreement builds on the existing relationship with Halliburton developed through Samson's Hawk Springs project and brings the considerable expertise of the largest service provider of fracture stimulation completions to Samson's new Roosevelt Project.

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Goodrich Adds Acreage in Tuscaloosa Play

- Goodrich Adds Acreage in Tuscaloosa Play

Monday, June 13, 2011
Goodrich Petroleum Corp.

Goodrich has purchased leases totaling approximately 74,000 net acres in the Tuscaloosa Marine Shale oil trend in Louisiana and Mississippi. The Company paid approximately $13 million, or an average of $175 per net acre for the acreage.

The Company anticipates development to commence in the first quarter of 2012.

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Linc Expands US Acreage with Tx., La. Acquisitions

- Linc Expands US Acreage with Tx., La. Acquisitions

Monday, June 06, 2011
Linc Energy Ltd.

Linc announced that its wholly-owned subsidiary, Linc Gulf Coast Petroleum Inc., has acquired 14 producing oil fields (consisting of 156 leases covering approximately 13,400 acres) from ERG Resources LLC., for a price of US $236 million. The acquisition secures immediate oil production of approximately 3,300 barrels per day (BOPD), and a significant CO2 enhanced oil recovery (EOR) opportunity.

The 14 oil fields purchased from ERG Resources are located in Texas and Louisiana and are within the Gulf Coast Onshore and Inland Waters Regions and include all related infrastructure such as pipelines, tank batteries and processing facilities. All of the fields are either salt domes or faulted four-way closures related to deep-seated salt movement. Independent reports commissioned by Linc Energy indicate that the fields have the potential to increase recoverable oil by up to 24 million barrels by optimisation of current production and additional drilling operations.

Cumulative production for the 14 fields is estimated to be over 700 million barrels of oil to date with a regional recovery factor of approximately 40%, indicating a significant potential to achieve substantial increases in production from Enhanced Oil Recovery (CO2 flooding).

All of the acquired fields in the asset package are 100% operated by ERG Resources, with ERG Resources also holding 100% of the working interest in the majority of the fields.

A significant factor regarding this acquisition is that ERG Resources has to date only advanced significant development into one area, the Barbers Hill salt dome, achieving some excellent results. There are 6 more salt domes in the asset package that Linc Energy can assess to drill and expand with similar techniques to those that ERG Resources has utilized on the Barbers Hill field.

Texas oil fields

12 of the fields are located along the Texas Gulf Coast and Texas inland waters areas. The majority of the value at this stage is attributed to 5 of the 12 fields, being Barbers Hill, High Island, Port Neches, Atkinson Island and Cedar Point. Linc Energy anticipates additional value being attributed to the remaining assets once further evaluation has been completed.

Louisiana oil fields

Portions of the Leeville Field and the Black Bayou fields are part of the ERG Resources assets in Louisiana. The majority of the immediate opportunity in Louisiana is in the 100% owned and operated Black Bayou field. This field is one area that Linc Energy plans to aggressively drill in the coming 12 to 24 months to build production.

Key terms of the Agreement

The key terms of the Asset Purchase Agreement between Linc Energy and ERG Resources are as follows:

• The purchase price of the assets is US $236 million (subject to completion adjustments and necessary consents from parties holding a "first right of refusal" over approximately 4,300 acres of the acquired oil fields).
• The assets purchased consist primarily of oil & gas leases, property interests (including all related infrastructure such as pipelines, tank batteries and processing facilities) and 410 wells upon the Texas and Louisiana oil fields which are held directly by ERG Resources or by three wholly-owned subsidiaries of ERG Resources. Linc Energy will acquire the assets held by ERG Resources and will acquire 100% of the equity interests in the ERG Resources subsidiaries.
• The total area of these leases is approximately 13,400 acres held across 156 oil & gas leases with 410 wells of which 177 wells are currently producing.
• Completion of the transaction and operational handover is scheduled for 1 August 2011.

To support this acquisition and future expansion plans in the USA Gulf Coast region, Linc Energy will be opening a new office in Houston, Texas prior to the transaction completion date. At completion, Linc Energy will become the employer of most of the experienced team of professionals (approximately 25 staff), covering both field and office operations, who are currently employed by ERG Resources. These arrangements will ensure continuity of operations on the oil fields immediately on handover.

Funding

While Linc Energy can fund this acquisition from cash, the Company has mandated RBS (The Royal Bank of Scotland) to complete the financing to support both the ERG Resources asset acquisition and the first year of capital expenditure upon the ERG Resources (Gulf Coast) and the Rancher (Wyoming) assets to support Linc Energy's development plans. This debt financing will have minimal recourse to Linc Energy and the financing process is well underway. Under the current financing proposal, Linc Energy will provide approximately 25% of the capital.

Peter Bond, Chief Executive Officer of Linc Energy, said, "This acquisition is the next big necessary step that Linc Energy has taken to meet its two key business targets over the coming 12 to 18 months. The first of these targets is to achieve in excess of 20,000 barrels per day of oil production by the end of 2012, with at least 10,000 barrels of production by the end of 2011. The second key target for the Company, supported directly by achieving this first target, is to develop very profitable, solid cash flows from operations."

"Linc Energy has a number of excellent assets and will continue to acquire more. These assets will be systematically developed over the coming years, but to support the Company's long-term strategic plans, Linc Energy needs to focus on developing strong operational revenues that can support our growth. The reality is, Linc Energy can gain a permit to drill an oil well in days or at most a few weeks; we can then drill those oil wells similarly within weeks, meaning the time difference from project commitment to cash flow can literally be a few months. If I dare compare that timetable with the years of effort it takes to gain a permit on a coal mine or a GTL facility, you get the picture pretty quickly why it's necessary for the Company to be dynamic in its approach and to focus upon our immediate entrepreneurial targets and produce strong cash flows."

"Linc Energy's strategic plans have resulted in the Company gradually re-focusing its energies over the past several months, shifting its long term focus into three distinct areas covering our short, medium and long term goals. We are building the Company on 3 distinct fronts in Oil & Gas, Coal & Clean Coal and Clean Fuel & Clean Energy. On the Oil & Gas front, we are pursuing oil production assets that yield immediate revenue and profits. We are targeting assets that have the potential to increase production initially with aggressive drilling and workover campaigns, whilst also providing excellent long term opportunity to multiply our returns with Enhanced Oil Recovery from CO2 flooding that in some cases can last 10 to 20 years. This philosophy positions Linc Energy to obtain solid cash returns in the short term and yet keep those assets profitable and growing for many years to come."

"This ERG Resources asset package is a great example of what I'm saying. First, we already have good daily oil production of approximately 3,300 barrels per day, which is currently cash flow positive. Secondly there is a clear drilling and workover plan in place which is anticipated to effectively double this production to over 6,300 barrels per day in the next 12 to 18 months, improving cash flows and increasing the value of the assets."

"Finally, Linc Energy expects to use about 75% debt funding to purchase the ERG Resources assets. I've always run Linc Energy as a low to no debt company. However, my philosophy with ERG Resources and assets like them is that you borrow on cash flow positive assets that have the capability to comfortably pay their own debt down, minimizing the risk, whilst leveraging the upside opportunity. Simply put, because Linc Energy is buying cash flow positive oil production assets which we believe can easily cover their respective debt arrangements; and because we expect to increase oil production in the short-term from these oil assets, we can lower real cost and risk of funding. Combine all of this with the strong Australian dollar and suddenly it makes perfect sense to debt fund these assets."

"Personally, I strongly believe that Linc Energy can grow to greater than 100,000 barrels of oil per day production within the next 5 years, and I'm pleased to say this ERG Resources acquisition is the first BIG step towards that very goal, whilst also ticking another Linc Energy milestone. As always I look forward to updating you on the journey ahead. There will be a lot to keep up with, because there is now a lot of traction in the business," Mr Bond said.

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Carrizo Adds Eagle Ford Acreage

- Carrizo Adds Eagle Ford Acreage

Monday, June 06, 2011
Carrizo O&G Inc.

Carrizo O&G provided the following update on selected Company operations.

Expansion of Eagle Ford Shale Acreage Position and Acceleration of Drilling Schedule

Carrizo has recently entered into firm agreements to acquire over 13,000 net acres of Eagle Ford Shale mineral interests, bringing its total net Eagle Ford land position to approximately 33,000 acres. These newly acquired acres are located in the condensate trend in La Salle County, Texas. The up-front cash cost associated with these acquisitions is approximately $1,650 per acre. The remainder of the lease acquisition costs will be in the form of a drilling carry that will fund certain of our partners' share of development costs, where applicable, in the acreage and will be dependent on the timing and density of development drilling on the properties.

In order to further accelerate our Eagle Ford Shale activity, our remaining Barnett Shale rig (H&P 332) has been relocated to South Texas and is now on location drilling the Ivey Ranch 10H in Dimmit County. Current plans call for this rig to remain in the Eagle Ford until it is replaced by a new purpose-built rig currently scheduled for arrival in December 2011, at which time the H&P #332 rig will return to its drilling schedule in the Barnett. Given the current backlog of wells waiting on completion in the Barnett Shale, the Company believes this rig move should have no impact on estimated 2011 Barnett production.

The Company's newest rig, a purpose-built H&P Flex 3S, just arrived in the Eagle Ford and is drilling on our recently acquired RPG project in northwestern McMullen County. The Company currently has three rigs drilling on its Eagle Ford properties. Although we expect the number of Eagle Ford wells drilled during 2011 to increase above projections due to this rig relocation, uncertainty associated with the timing of well completions and initiation of oil sales precludes the Company from increasing its previous guidance for 2011 oil production until a frac schedule is finalized. The three wells waiting on completion located on the Mumme lease in LaSalle County are scheduled for fracture stimulation later this month as previously announced.

• In the Niobrara Formation in Weld and Morgan Counties, Colorado
  • Carrizo's fourth Niobrara well, the Orlando Hill 26-44-8-61, recently reached total depth and is being prepared for completion, currently scheduled to begin by the end of June
  • The Niobrara rig is being moved to its next location to drill the Nelson 17-44-9-60
  • The Company intends to maintain a one rig Niobrara drilling program for the remainder of the year
• In the Marcellus Shale in northeast Pennsylvania
  • Carrizo now has 8 gross wells drilled waiting on completion in Susquehanna and Wyoming Counties
  • Stimulation and completion of the back-log of drilled wells is scheduled to begin in July
  • First gas sales from Susquehanna County are expected to begin in August following completion of the Laser Pipeline
• The Huntington Development Project in the North Sea
  • The ENSCO jack-up is on location over the Huntington Field and has completed setting surface casing for all planned production wells
  • The Project's pace of development, including work on the FPSO, the Sevan Voyager, continues to be on schedule to allow for first oil production by the end of the first quarter of 2012
• Current Production and Second Quarter 2011 Realized Hedging Gains
  • The recent connection of a seven well pad in the Barnett Shale helped elevate the current total Company production rate to approximately 133,000 mcfe/day
  • The oil component of the daily rate is approximately 1,700 bbls/d
  • Net realized oil and gas hedging gains for the second quarter of 2011 are expected to be in the range of $3.5 to $3.7 million

Management Comment

Carrizo's President and CEO, S. P. "Chip" Johnson, IV, commented on recent developments, "Nearly simultaneous with the close of the sale of our non-core Barnett Shale properties on April 17th for approximately $104 million, we were able to reach final agreements for several Eagle Ford Shale lease purchases. Our ability to reinvest much of the capital raised so quickly in such a high return area bodes well for our future cash flow growth. We were able to defer much of the cost for the new Eagle Ford land so that additional payments in the form of drilling carries better coincide with future cash flows. We expect that the final lease purchase price for these acres will fall below $5,500 per acre on a present value basis. We need more clarity as to our probable frac schedule for the additional Eagle Ford wells we will be drilling before we update production guidance, but we believe we may be able to do this by the time of our second quarter conference call."

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Lundin Adds Acreage Offshore Malaysia

- Lundin Adds Acreage Offshore Malaysia

Friday, June 03, 2011
Lundin Petroleum AB

Lundin announced that its wholly owned subsidiary, Lundin Malaysia B.V. has entered into an agreement with Petronas Carigali Sdn Bhd to farm-in to Block PM307 offshore Peninsula Malaysia. Under the agreement, Lundin Petroleum acquires a 75 percent interest and operatorship. Petronas Carigali Sdn Bhd holds the remaining 25 percent interest in the Block.

Block PM307 covers an area of approximately 6,126 km2 and contains a proven oil discovery.

Work commitments include 500 km2 of 3D seismic, an appraisal well on the discovery and an exploration well.

Lundin Petroleum now operates a total of 6 Blocks in Malaysia divided into 2 core areas. The Peninsula Malaysia core area consists of PM307, PM308A and PM308B which are contiguous. The Sabah core area consists of SB303, SB307 and SB308 which are also contiguous blocks.

Ashley Heppenstall, President and CEO of Lundin Petroleum commented, "The signing of this Block marks a further important step forward in Lundin Petroleum’s pursuit of organic growth opportunities in Malaysia and South East Asia. We are particularly encouraged by the recent announcement made by the Malaysian Government regarding fiscal incentives for small fields that when implemented could accelerate commercialization of the proven discovery that exists within the Block."

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American Standard Enters LOI for Shale Acreage

- American Standard Enters LOI for Shale Acreage

Thursday, June 02, 2011
American Standard Energy Corp.

American Standard has entered into four non-binding Letters of Intent (LOI) to acquire acreage in its three primary areas of operations: the Bakken of North Dakota and the Eagle Ford and Permian Basin plays of Texas and New Mexico. An LOI was signed for each of the following:

• Bakken: ASEN has entered into an LOI to purchase approximately 15,000 acres in the Bakken shale play of North Dakota. This acquisition would increase the Company's total acreage in the Bakken to approximately 48,000 net acres. The agreement covers acreage in the heart of the play being mostly in Mountrail, Burke, Williams McKenzie and Divide Counties. A significant portion also lies in the newest "hot spot" of the Bakken being Stark and Dunn counties.
• Eagle Ford: ASEN has agreed to a transaction that when completed will increase its acreage holdings in the Eagle Ford oil window from 10% Working Interest in 12,000 net acres (two rigs presently running with 8 wells in various stages of development) to a total of over 20,000 net acres. The average well on ASEC holdings has come in at Initial Production (IP) flowing daily rates in excess of 1,000 BOE. Upon completion of these acquisitions ASEN will have positions in LaSalle, Wilson, Gonzales and Maverick Counties.
• Permian Basin:
  • Wolfcamp Shale: West Texas: ASEN entered into an agreement to purchase 100% Working Interest in over 12,800 acres of the "Wolf camp Horizontal Play" (10,000 acres of which are Held By Production). This position is in the fairway of Crockett and Reagan Counties. The acreage is contiguous to the recent University of Texas leases auctioned in April for over $2,700 per acre by companies such as Pioneer, El Paso, Devon, EOG and Conoco Phillips.
  • Avalon, Wolf-Bone Play: South Eastern New Mexico. A tentative agreement has been reached whereby ASEN will acquire various non-operated working interests in over 65,000 gross acres (approximately 14,400 net acres). The leases are located in Eddy and Lea Counties including two 100 % Working Interest Sections on the Texas side being immediately to the south in Loving, Reeves and Culberson Counties. All of the acreage included in the agreement is Held By Production. Operators of the wells will be Apache, Yates Petroleum, Heyco, Oxy, COG, XOG, Nadel and Gusman, Mewbourne, Nearberg, Chesapeake, Devon and BP.

Recent entry of major oil companies and large independents in these plays has made it difficult for other companies to compete. However, upon completion of these acquisitions with its strategic partner, ASEN will be in a position to participate in a larger number of leases, which not only reduces risk but provides ASEN with more drilling opportunities normally available to a company of similar size.

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Rockbridge Buys Acreage in Pembina

- Rockbridge Buys Acreage in Pembina

Wednesday, May 25, 2011
Rockbridge Resources Inc.

RockBridge announced that in addition to a deal struck with EnCana Corporation in the first quarter of this year to acquire rights to the NW quarter of section 28-48-3W5, the Company has now also acquired the NE quarter of section 28-48-3W5 at a crown land sale. The net working interest for RockBridge in the entirety of section 28-48-3W5 will now be 37.5%. The Company is also pursuing additional acquisitions and land swaps in its two core Pembina Cardium properties to rationalize and maximize future drilling locations and reserves capture. For example the above acquisition has added two horizontal drilling locations to the company's inventor increasing it from 20 to 22. The Company has been approached by nearby parties to farm-in on our acreage; however, to date no transaction has been consummated.

RockBridge President and CEO, Richard J. Wolfli, stated, "We are consolidating and rationalizing our southern Pembina Cardium lands to maximize the exploitation schemes and the total reserves we can exploit and prove on the acreage. This is important in crystallizing value for the resource in future drilling or farm-out opportunities."

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RWE Dea Divests Acreage in Norwegian Sea

- RWE Dea Divests Acreage in Norwegian Sea

Wednesday, May 25, 2011
RWE Dea AG

RWE Dea Norge AS, a wholly-owned subsidiary of the German upstream company RWE Dea, has entered an agreement with Marathon Petroleum Norge AS and with Lundin Norway AS to farm-down a total of 60 percent in production license 330 in the northern Norwegian Sea.

"We are pleased to join forces with two experienced and highly qualified partners in a license regarded as important and promising in our asset portfolio. We have spent significant time and resources to improve the seismic imaging in the demanding and unexplored Utgard High area. These efforts now show encouraging results," said Hugo Sandal, Managing Director of RWE Dea Norge AS.

The agreement is effective of January 1st 2011, and is subject to Norwegian governmental approval.

After completing a transaction in agreement with Hess Norge in 2010, RWE Dea Norge AS continues as the operator of PL330 with a 40 percent share, and Marathon Petroleum Norge AS and Lundin Norway AS as partners with 30 percent each.

The farm-down is part of RWE Dea's strategy of a balanced portfolio in its core regions. Norway plays an important role in the company's strategic target to boost its annual gas and oil production to more than 70 million barrel of oil equivalents by 2016. In Norway, RWE Dea Norge holds a solid license portfolio and is the operator of the recent and promising discoveries Zidane in the Norwegian Sea and Titan in the North Sea. In 2011, RWE Dea Norge has already been awarded five new licenses and is currently participating in 25 production licenses on the Norwegian Continental Shelf.

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Treaty Adds Acreage in Tx.

- Treaty Adds Acreage in Tx.

Monday, May 23, 2011
Treaty Energy Corp.

Treaty Energy has acquired eight oil & gas leases in Texas, adding another 1347 acres to Texas lease holdings.

Stephen L. York, Treaty Energy's President and Chief Operating Officer, stated, "With this new addition, Treaty now has a total of 1787 acres under lease in Texas that are spread over 13 leases. We will provide the terms of this latest acquisition via a Form 8-K filing this week."

Mr. York adds, "Treaty will assume operational control of these leases through the Company owned operating subsidiary, C & C Petroleum Management, LLC, in early June after all appropriate documents are filed with the RRC of the State of Texas."

This new acquisition generally consists of the following:

• Eight separate leases totaling 1347 acres.
• Thirteen fully equipped and producing wells.
• Eighteen shut-in wells to be put back on line.
• Twelve injection wells.
• Four water supply wells.
• Eight individual tank batteries consisting of seventeen storage tanks, eight oil/water separators (two less than six months old) six water pumping stations, miscellaneous tubing, pipe, and casings.
• Current production of oil about 20 BOPD.

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Chevron to Add Marcellus Acreage

Chevron to Add Marcellus Acreage

Wednesday, May 04, 2011
Chevron Corp.

Chevron Corp. announced Wednesday that it has agreed to acquire oil and gas assets, primarily 228,000 net leasehold acres, in the Marcellus Shale from Chief Oil & Gas LLC and Tug Hill, Inc. Terms of the transaction, which is expected to close before the end of the second quarter, were not disclosed.

George Kirkland, vice chairman, Chevron Corporation, said, "This opportunity is aligned with our strategy to acquire early-in-life assets with long-term organic growth potential. Over the last year, Chevron has acquired nearly five million net acres of shale gas assets in the United States, Canada, Poland and Romania."

"This expansion of our shale gas portfolio gives us additional high-quality resources with strong growth potential, as well as proximity to and synergy with existing operations," said Gary Luquette, president of Chevron North America Exploration and Production Company.

The acreage, which is principally located in southern Pennsylvania, will give Chevron an estimated five trillion cubic feet of additional natural gas resource in its Marcellus Shale operations.

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Magnum Hunter Acquires Williston 'Bolt On' Acreage

Magnum Hunter Acquires Williston 'Bolt On' Acreage

Tuesday, May 03, 2011
Magnum Hunter Resources Corp.

Magnum Hunter Resources Corp. announced Tuesday that the Company's recently acquired wholly owned subsidiary, NuLoch Resources Inc, along with certain of NuLoch's existing joint venture partners, have acquired 16,800 gross acres (5,000 net acres) in a "Bolt On" acquisition located in Burke County, North Dakota.

The acquired acreage is in close proximity to a producing Sanish well, the Gustafson #29-32, where NuLoch owns an 18.6% working interest. As previously announced by NuLoch, the Gustafson #29-32 had a peak 24 hour initial production rate of 937 Boe per day from the Sanish formation.

Management Comments

Glenn Dawson, President of NuLoch, commented, "Leveraging the success of the Gustafson #29-32 well into a now much expanded acreage position in Burke County, North Dakota where we own a larger working interest (up to 30%) is an extremely positive strategic move for our Company. NuLoch has now increased the Company's net acreage position by 75% in this region alone; including one mostly contiguous block of 11,700 net acres to NuLoch's working interest ownership position. We are currently in the process of permitting production spacing units for purposes of drilling wells with two mile horizontal laterals. Today, NuLoch has drilled two wells in Burke County, North Dakota and has an additional six wells planned for the remainder of fiscal year 2011. This type of 'Bolt On' acreage acquisition adjacent to our recent success allows us to continue to maximize our presence in this region of the Williston Basin."

Magnum Hunter Resources Corp. is an independent oil and gas company engaged in the acquisition, development and production of oil and natural gas, primarily in the states of West Virginia, North Dakota, and Texas. The Company is presently active in three of the most prolific shale resource plays in the United States, namely the Marcellus Shale, Eagle Ford Shale and Williston Basin/Bakken Shale.

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W&T Offshore to Add Acreage in West Tx. Permian Basin

W&T Offshore to Add Acreage in West Tx. Permian Basin

Tuesday, April 26, 2011
W&T Offshore Inc.

W&T Offshore has entered into a purchase and sale agreement with private sellers to acquire approximately 21,900 gross leasehold acres (21,500 net acres) in the West Texas Permian Basin for a purchase price of $366 million, subject to adjustments and an effective date of January 1, 2011. The reserves are over 91% oil and natural gas liquids. At January 1, 2011, estimates of proved reserves to be acquired are approximately 27 million barrel equivalents (164 Bcfe); and, estimates of proved and probable reserves to be acquired are approximately 53 million barrel equivalents (318 Bcfe) (both using a 6 to 1 Mcf to barrel equivalency). The current wells produce around 2,800 barrel equivalents per day. Since the effective date of the proposed acquisition, production has increased from about 1,900 barrel equivalents. The sellers have three active rigs drilling in the field and ongoing completions are being made on the new wells. We expect to keep at least three rigs working in the field throughout the remainder of 2011. Accordingly, we would expect daily production to increase.

There is significant upside potential in the acquisition with hundreds of proved undeveloped and probable well locations. Capital expenditures associated with planned development activities for these properties for the rest of 2011 are currently estimated at $35 to $40 million. The closing, which is subject to customary closing conditions and normal closing price adjustments, including effective date adjustments, is anticipated in the second quarter and will be funded from cash on hand and borrowings under our revolving bank credit facility.

Tracy W. Krohn, Chairman and Chief Executive Officer, commented, "The acquisition of the Permian Basin oil properties will allow us to continue with our goals of a steadier growth pattern coupled with good cash flow and positive full cycle economics. We believe that there are many more attractive acquisition opportunities for us both onshore and offshore."