Blackdog Preps to Drill Well in Alberta

- Blackdog Preps to Drill Well in Alberta

Friday, September 02, 2011
Blackdog Resources Ltd.

Blackdog is participating in the drilling of an approximate 3000 meter deep Leduc Reef Exploration well (the "Well") near Sylvan Lake, Alberta. The target was defined using extensive 3D seismic analysis and the Company believes the target is prospective for light oil.

Under the terms of a farm in agreement, Blackdog is paying 25% of all costs to testing or abandonment to earn a 15% working interest ("W.I.") in the Well and entire section of land the Well is situated on. The Company believes that a successful well could lead to the drilling of two additional wells on the same section of land.

Also under the terms of the farm in agreement, Blackdog received an option, at the Company's discretion, to participate in the drilling of a second Leduc Reef Exploration well in the Sylvan Lake area. Blackdog would pay 25% of all costs to testing or abandonment to earn a 16.25% W.I. in this well and the land it is situated on. Blackdog has a 72 hour window from the casing or abandonment of the first exploration well to exercise this option.

The first well has been spud and the Company expects to announce results during the month of September.

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Alberta Makes Concessions To Oil-Sands Producers In Parks Plan

- Alberta Makes Concessions To Oil-Sands Producers In Parks Plan

Tuesday, August 30, 2011
Dow Jones Newswires
CALGARY
by Edward Welsch

A final version of the Alberta government's land conservation plan for the oil-sands region released Monday made some concessions to oil companies after the original plan threatened to cancel parts of several oil-sands leases in order to preserve them for caribou habitat.

"What we think this plan achieves is a balance between the environment, development and the community aspect of living and working in Alberta," Sustainable Resource Development Minister Mel Knight said during a press conference.

Knight said there may still be parts of some oil-sands leases cancelled, but that the effect would be "very, very little," and the plan "is going to be quite satisfactory to most operators in the area."

The original parks plan released in April, which sets aside more than 7,000 square miles for recreational parks and wildlife including caribou, was panned by some of the oil-sands developers who were seeing parts of their leases cancelled.

However, most developers in the area, including Cenovus Energy Inc. (CVE) and Athabasca Oil Sands Corp. (ATH.T) said they had worked with the government to ensure that the parts of their leases that would be revoked were on plots that weren't economically viable.

Knight said the government worked with other companies to shift conservation land around for the final conservation plan, but he declined to provide any specific details.

Jennifer Grant, director of oil-sands research for the Canadian environmental think tank Pembina Institute, said it appeared that the government had shifted some lands around to accommodate oil-sands leases owned by Sunshine Oil Sands Ltd., a privately owned developer that was particularly hard hit under the draft plan.

Executives of Sunshine Oilsands, which is planning an initial public offering in Hong Kong later this year, weren't immediately available to comment because they were traveling in China.

"The government's efforts to accommodate industry interests are apparent in this version of the Lower Athabasca Regional Plan, with the adjustment of some protected areas," Grant said. She said more loopholes were introduced in the latest plan that allow companies to get exemptions to environmental standards.

Knight said though the plan had critics, it set aside a large portion of land for protection that wasn't there during the industry's last resource boom in the mid-2000s.
Copyright (c) 2011 Dow Jones & Company, Inc.

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Cougar O&G Bags Additional Leases in Alberta Land Sale

- Cougar O&G Bags Additional Leases in Alberta Land Sale

Monday, August 29, 2011
Cougar O&G Canada Inc.

Cougar O&G has acquired an additional 3 sections of land (1920 acres) at an Alberta Provincial Government land sale on Wednesday August 25, 2011.

These lands are on the southern boundary of lands we acquired in July of 2010 and the 3D seismic program conducted in early 2011. We believe there are extensions of reserves identified in the seismic and the Reserves Assessment and Evaluation of the new or previously unevaluated Trout Core oil properties of Cougar, released on July 14, 2011.

That review completed based on existing information in the public domain coupled with the extensive Cougar 3D seismic program placed a $77.4 million Cdn Net Present Value (NPV) discounted 10% for Proven (P1) plus Probable (P2) plus Possible (P3) and an estimated 2.7 million barrels recoverable P1+P2+P3 from the project. The report is based on a previously announced logical development plan with a 2-4 well drill program to be followed up with a 4-6 well program. Those programs are dependent upon financing.

William Tighe, CEO of Cougar provided, "We are pleased with the extension of the lands acquired based on the geological analysis with extensions of structures identified in the 3D seismic. Despite challenges from the horizontal well inconclusive results due to insufficient pumping capability with the equipment currently available to properly test that well, the continued Rainbow Pipeline shut in since late April and the resulting need to truck our oil to markets in a 12hr round trip per load often in inclement weather and at discounts to contract prices, the Slave Lake area wild fires in early May, during which the focus was to keep all the wells producing, - we in addition have kept the projects moving forward wherever possible.

The drilling program, as a drill ready program which is subject to financing, is ready to move forward as soon as financing is sourced. The engineering report identifies this project has the potential to add revenue, estimated cash flow with pay outs on the capital program in the 130 day range, and add substantial proven reserves once the wells have been producing for 6 months, while continuing our goal of attaining 2000 bbl/d production from operations."

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Altima Enters Farm-In in Northern Alberta

- Altima Enters Farm-In in Northern Alberta

Tuesday, August 23, 2011
Altima Resources Ltd.

Altima has entered into a Farm-in and Participation Agreement whereby Altima has agreed to participate in the drilling of a 1665 meter (5460 ft.) well on the operators' lands in Northern Alberta. Altima will pay 33.75% of the costs of drilling through completion to earn a 24.80625% interest in the well and farm-in lands covering an area of 576 hectares, subject to its proportionate share of a 4.7% Gross Overriding Royalty. The farm-in well will test for oil generally present in the area. The location in the Rainbow Lake area of Northwestern Alberta has new high resolution 3D seismic support, which management expects will enhance the opportunity to encounter better than average production. Permitting has commenced, and it is anticipated the well will be spud the second week of September.

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Canadian Natural Resources Resumes Ops in Alberta

- Canadian Natural Resources Resumes Ops in Alberta

Tuesday, August 23, 2011
Canadian Natural Resources Ltd.

Canadian Natural Resources announced that Synthetic Crude Oil ("SCO") sales have recommenced from its Horizon Oil Sands operation in Northern Alberta.

On August 16, 2011, Canadian Natural successfully and safely resumed production at Horizon from the fire that occurred in the coker unit on January 6th, 2011. Production for the past four days has consistently averaged approximately 75,000 bbl/d of SCO. Ramp up to full production capacity of 110,000 bbl/d of SCO is expected in the next week. First pipeline deliveries commenced on August 18, 2011.

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Primary Executes LOI for Southern Alberta Basin Bakken Fairway Lands

- Primary Executes LOI for Southern Alberta Basin Bakken Fairway Lands

Wednesday, July 27, 2011
Primary Petroleum Corp.

Primary Petroleum has agreed to move forward in executing a non-binding Letter of Intent ("LOI") to finalize a Farmout and Joint Operating Agreement (the "Agreement") with a major U.S. based Industry Partner on its 291,000 net acres under lease and option in the Southern Alberta Basin Bakken Fairway of NW Montana.

The completion of the transaction is subject to title and environmental due diligence and final documentation. It is expected to close on or before October 3rd 2011, when specific details of the formal agreement will be disclosed. Primary's current 3D Seismic and vertical drilling program will be ongoing during the due diligence and final documentation negotiation period.

"Primary looks forward to completing this transaction and moving forward with a strong Industry Partner to delineate and prove up our acreage position in the Southern Alberta Bakken Basin in NW Montana," states Mike Marrandino, President & CEO. "The Basin continues to be de-risked by Industry on both sides of the border and Primary is looking forward to the potential of confirming economic hydrocarbons over our lands. The next couple of years will be very exciting for the Company once this transaction is completed as it will enable Primary to fulfill its business objectives of evaluating its acreage with the added technical expertise and financial strength of a strong joint venture partner."

Current Pondera-Teton Work Program

Primary also advised that its current 3D Seismic program is underway on the Dupuyer Creek prospect. It is anticipated that both the Dupuyer Creek and Marias River seismic programs will be completed by the end of August. The seismic crew will then move south to continue with our Deep Creek East and Eureka Lake programs. To-date, the Company has identified three vertical drilling locations on its existing 3D Seismic that it completed in 2008 and is underway with the well site permitting process.

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Donnybrook Farms-Out Alberta Lands to Cequence

- Donnybrook Farms-Out Alberta Lands to Cequence

Wednesday, June 22, 2011
Donnybrook Energy Inc.

Donnybrook reported that it has finalized an agreement with Cequence whereby Cequence will cash equalize into certain lands totaling 5 sections that Donnybrook currently holds 100% at Simonette, Alberta.

In return, Cequence, as operator, will commit to the drilling of a Test Well on a nearby jointly held section (50% Donnybrook/50% Cequence) with Cequence paying 70% of the drill and complete costs to earn a 50% working interest at tie-in point. Donnybrook will pay 30% of the drill and complete cost to retain a 50% working interest in the subject well which is expected to spud on or around August 1, 2011.

Initially, the Test Well will be drilled as a strat test into the Montney formation and if successful it will then be drilled horizontally for approximately 1,400 meters.

This well will be the first of three Montney horizontal multi-stage frac locations contemplated to be drilled between August and December of 2011 on Donnybrook's 50% lands at Simonette.

At Bigstone, Alberta, Donnybrook, as operator, has received the license for the drilling of its Montney horizontal well (25% BPO/50% APO) with a horizontal length of approximately 1,400 meters. Donnybrook has begun well site construction and the well is expected to spud early in the third quarter of 2011. The well is located within five miles of a recently announced liquids rich natural gas two mile horizontal Montney well that after clean-up reportedly flowed on test over the last day at an average rate of 13.1 MMCF of natural gas and 650 barrels of crude oil and NGLs per day (2,800 boe per day). Donnybrook and its partners hold 7 contiguous sections of Triassic Montney P&NG rights at Bigstone.

The wet spring weather in the area of Donnybrook's operations has delayed the Company's ability to access the DEI Hz 13-27 well at Resthaven which was drilled in the first quarter of 2011 and completed in April. The DEI Hz 13-27 well in which Donnybrook has a 70% working interest is still pending tie-in to the Conoco Phillips plant which will occur as soon as conditions permit. Once the well is tied-in it will be flowed back for an in-line production test. It is reasonable to expect that this may occur by mid July 2011.

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FX, American Eagle to Explore Alberta Bakken in NW Montana

FX, American Eagle to Explore Alberta Bakken in NW Montana

Monday, May 09, 2011
FX Energy, Inc.

FX Energy, Inc. on Monday announced the signing of an agreement with American Eagle Energy, Inc., and Big Sky Operating LLC, to jointly explore approximately 75,000 acres in the Alberta Bakken in Northwest Montana. FX Energy's 10,000 acre field in the Southwest Cut Bank Sand Unit will be included in the joint exploration program and the Company will own a one-third interest in the overall project.

The companies plan to drill a minimum of three vertical wells to evaluate the potential of the acreage over the next several months. If the tests confirm the potential that the companies believe exists in the project area, the wells will be drilled horizontally and fracked. The drilling contractor for the wells will be the Company's wholly owned subsidiary FX Drilling Company.

"Since our partners were among the first movers in the Williston Basin Bakken play, their technical expertise is a valuable addition to the joint venture. We expect to drill and test several wells this year and if successful, our acreage position is sufficiently large to accommodate a continuous drilling program for years to come," said Andy Pierce VP of Operations for FX Energy.

FX Energy is an independent oil and gas exploration and production company with production in the US and Poland. The Company's main exploration activity is focused on Poland's Permian Basin where the gas-bearing Rotliegend sandstone is a direct analog to the Southern Gas Basin offshore England.

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Cougar O&G Acquires Assets in Alberta

Cougar O&G Acquires Assets in Alberta

Thursday, April 28, 2011
Cougar O&G Canada Inc.

Cougar O&G has closed the acquisition of several operated and non-operated oil and natural gas properties ("Properties") in Alberta.
Cougar acquired the Properties from a private company. The Properties include the following assets:

• 4 producing non-operated CBM gas wellsand associated gathering and production facilities located in Central Alberta with a net production of approximately 25 BOEPD.
• 3 suspended Cardium oil wells located in central Alberta with the potential to reactivate 2 of the wells this summer for an estimated net production of 25bbl per day. The wells are also located in an area that has recently proven successful for horizontal Cardium oil development.
• 5 standing natural gas wells in central and southern Alberta. These wells require additional workover and/or tie-in work and will be evaluated for development, farmout or divestiture.
• 3200 net acres of mineral rights adjacent to Cougar's oil producing Alexander property. These mineral rights include all P&NG rights and will be evaluated for oil production potential.

On April 25. 2011 Cougar received notification that the ERCB had approved the transfer of the operated wellbores included in the acquisition of the Properties. Payment for the Properties included Cougar assuming the abandonment liability for the Properties and forgiving an outstanding Accounts Receivable from the private company.

Mr. William Tighe, CEO and Chairman of the Board for Cougar stated, "We are delighted that this asset acquisition has closed. The acquisition did not have a debt or equity cost to the Corporation and it had an immediate strategic value. It provides access to a defined Cardium horizontal oil prospect, a profitable CBM natural gas production field with a long reserve life and an undeveloped land base close to our Alexander oil prospect.

"In the Trout production area, the horizontal well continues to steadily improve as the drilling fluid lost to the formation is recovered. The reservoir pressure is increasing and the fluid level in the wellbore continues to increase. A temporary hydraulic pump jack was installed on the well just prior to breakup and once the lease conditions dry up we hope to replace that with an electric submersible pump which will result in the higher production rate required to properly evaluate the well.

"The geological and geophysical work continues regarding the evaluation of the new Trout 3D seismic data shot in January and within the next two weeks we plan to kick off the permitting of a Q3 multiwell oil drilling program."

Alberta Star Drills First Blackfoot Well

Alberta Star Drills First Blackfoot Well

Thursday, April 14, 2011
Alberta Star Development Corp.

Alberta Star has drilled, cased and completed the first well of its Blackfoot Phase 1- three well (1.0 net well to the Company) drilling program on the Blackfoot heavy oil property in Lloydminster, Alberta. The well is located at 3D-11-050-02-W4 and is currently producing and the Company expects that once the well has stabilized, production rates will be comparable to that of surrounding heavy oil wells. The remaining two Blackfoot Phase 1 wells on adjacent sections, are expected to be spudded after spring break-up. The Blackfoot Phase 1 - three well program is scheduled to include drilling and completing three in-fill heavy oil wells at the following locations: 3D-11-050-02-W4 (drilled, completed and on initial production), C6-24-050-02-W4 (pending) and C7-14-050-02-W4 (pending). Once completed, Blackfoot Phase 1 - three well program will increase the number of Lloydminster heavy oil wells that the Company has an interest in, to seventeen. The Company will have a 33.33% working interest in the Blackfoot Phase 1 - three well program wells.

Alberta Will Tighten Oil-Sands Regulation

Alberta Will Tighten Oil-Sands Regulation

Wednesday, April 06, 2011
The Wall Street Journal

by  Edward Welsch

The Alberta government said Tuesday it intends to set new environmental standards -- including outlining specific benchmarks for water contamination -- for areas affected by Canada's vast and growing oil-sands production in the western part of the country.

The provincial government also said it would set aside more than 7,700 square miles of land in the region for conservation. The move will require the cancellation of 10 oil-sands leases
The government didn't provide the names of the companies that would see their leases canceled under the new regional development plan for the Lower Athabasca region.

The government said that producing projects wouldn't be affected, only projects under development. That means that output won't be immediately affected. The companies would be compensated for their costs in purchasing and developing the leases.

Canada largely delegates regulation of its oil and natural-gas industry to the provincial level, so the new regulations signal significant new regulatory oversight for an industry that's been growing quickly in recent years. Alberta has been a big promoter of oil-sands development, and officials in both the U.S. and Canada have touted the industry's potential to ramp up output to feed American demand.

The oil-sands industry already accounts for about half of the 1.9 million barrels a day of oil that is exported to the U.S. Output is widely expected to double in size during this decade. But that growth rate partly depends upon the industry's ability to defend its environmental record.

Environmental groups have attacked the industry on several fronts, including criticism of the surface damage caused by strip mining and tailing ponds involved in some oil-sands production and the industry's higher greenhouse-gas emissions, compared to more conventional methods of extracting oil from the ground.

Last month, the Canadian government proposed a plan to revamp environmental monitoring for oil sands in response to criticism of the current system.

Part of the plan announced Tuesday will be benchmarks for assessing whether nearby water is being contaminated by the production cycle. The targets are expected to be roughly in line with water-contamination limits set by the U.S. Environmental Protection Agency, the government said. If those limits are breached, further review will be mandated.

The government said it would soon begin a 60-day consultation period with stakeholders and communities, and expected the new regulations to be in force by 2013. A time-line for implementation of the new monitoring system is expected by June.