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.

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ONGC Videsh Seeks Producing Assets In Politically Stable Countries

- ONGC Videsh Seeks Producing Assets In Politically Stable Countries

Tuesday, August 30, 2011
Dow Jones Newswires
NEW DELHI
by Rakesh Sharma

Oil & Natural Gas Corp. (500312.BY) is seeking producing assets in politically stable countries as it seeks to cut its geographical risks, the head of the Indian explorer's overseas investment unit said Tuesday.

"We have investments in many risky countries. We would be diversifying to more stable countries like North America," Joeman Thomas, managing director of ONGC Videsh Ltd., told reporters on the sidelines of a news conference.

The social and political upheaval in the Middle East and North Africa has drastically raised the risk profile of some prolific international basins that hold substantial hydrocarbon reserves, impacting investment plans of global oil and gas explorers, ONGC said in its annual report earlier this month.

OVL holds stakes in exploration blocks in places like Libya, Syria and Sudan, which have been hit by political unrest.

Thomas said the decision on re-adjusting the portfolio was taken about two years ago. He added that the company aims to acquire producing properties over the next two to three years as it has a mandate to source 20 million tons, or 400,000 barrels a day, of crude from overseas assets by 2020.

OVL expects its share of output from overseas assets at 8.75 million tons in the current financial year through March 2012, he said.

In March this year, India's top auditor had criticized OVL over its investments and joint ventures overseas saying that the explorer wasn't able to mitigate risks and leverage the benefits from the financial strength and expertise of the joint venture partners. The auditor said that OVL needed to improve its core competence in the evaluation of investment opportunities.

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

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Sinopec to Strengthen Investments in Upstream Assets

- Sinopec to Strengthen Investments in Upstream Assets

Monday, August 29, 2011
Dow Jones Newswires
HONG KONG
by Yvonne Lee

China Petroleum & Chemical Corp., or Sinopec, said Monday that it plans to strengthen investments in upstream oil and gas assets and unconventional resources over the next 5-10 years to further diversify its operations.

Chairman Fu Chengyu also said the company will accelerate the development of unconventional gas production, including shale gas and tight gas, in China and will disclose details of the development plan next year.

"We have 20 unconventional gas wells in China at the experimental stage. The output results are encouraging and better than expected," Fu said.

Shares of Sinopec ended up 6.7% at HK$7.49 Monday after Asia's largest refiner by capacity Sunday reported a better-than-expected 12% increase in first-half net profit to CNY41.17 billion from CNY36.80 billion a year earlier due to a stronger contribution from its oil production business, although its refining business recorded an operating loss due to rising fuel costs.

Fu said he is optimistic on the company's refining business prospects in the second half as crude prices will stay in a US $90-US $110 range.

However, he expects the global economy will be gloomy in the next 3-5 years if the U.S government launches a full-fledged third bond-buying program, commonly known as quantitative easing, or QE3.

"We hope to increase our cash level through the issuance of bonds to prepare any arising challenging," he said.

Sinopec said Sunday that it plans to raise up to CNY50 billion through the sale of domestic corporate bonds and the issuance of the convertible bonds in China.

Analysts expect Sinopec's refining margins to improve in the July-December period as crude prices eased recently, although the government price controls will still weigh.

"While the refining division is likely to continue to post a significant loss in the third quarter, we believe the second quarter was likely the peak for refining losses and the division could be close to break even in the fourth if Brent is around $107 or lower," Citigroup analyst Graham Cunningham said.

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

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Encana to Sell Barnett Shale Assets

- Encana to Sell Barnett Shale Assets

Thursday, August 25, 2011
Encana Corp.

Encana has initiated a process to divest of its North Texas natural gas producing assets in the Fort Worth Basin located in the Barnett Shale play. Scotia Waterous (USA) Inc. has been retained as advisor to assist in the process.

"The initiation of the process to sell Encana's North Texas assets is a continuation of the company's ongoing divestiture program, which is well underway and is targeting net divestitures of between US $1 billion and $2 billion for 2011. Encana continuously looks for opportunities to manage its portfolio of producing assets and improve the long-term value creation capacity of its vast resource portfolio. These North Texas assets are high-quality, relatively mature producing properties that hold strong potential for future development. The assets currently produce about 125 million cubic feet equivalent per day (MMcfe/d) and include the associated processing and pipeline facilities on about 52,000 net acres of land in the Fort Worth Basin. We would expect this divestiture to be completed in late 2011 or early 2012," said Jeff Wojahn, Encana's Executive Vice-President & President, USA Division.

"We acquired our core position in the Barnett Shale play in 2004 as a result of a corporate acquisition that was focused on building a major land and production position in the U.S. Rockies. Alongside developing this strong asset, over the years we built a suite of high-growth, early-life resource plays in the Mid-Continent, led by about 295,000 net acres of land in the Haynesville Shale play, where our production is now more than 500 MMcfe/d. In East Texas, our production is about 250 MMcfe/d and our 240,000 net acres hold strong growth potential. Our Mid-Continent resource play teams and operations, based in Dallas, will continue to be a leading contributor to Encana's long-term growth strategy," Wojahn said.

As a leading North American natural gas shale property, the Barnett Shale has provided Encana with high-quality natural gas growth and foundational knowledge which the company has applied across its U.S. and Canadian portfolio of newer resource plays. That foundational knowledge will continue to provide Encana with operational expertise as the company applies multiple advanced technologies to manage costs over the long term and pursue maximizing the margins from all of its natural gas production.

A sale of Encana's North Texas assets would be subject to receiving an acceptable bid, the approval of the companies' boards of directors, normal closing conditions as well as regulatory approvals.

On other fronts, Encana is actively engaged with a number of parties in a competitive process to divest of midstream and producing assets in the U.S. and Canada that no longer fit with its development plans. The company is also in discussions with a number of potential partners looking to make third-party investments aimed at accelerating the value recognition of Encana's enormous resource potential on its undeveloped lands. Proceeds from these transactions are expected to supplement cash flow generation and strengthen the company's balance sheet, providing financial flexibility going into 2012.

Tremendous resource potential across Encana lands

Across North America, Encana has about 7 million net acres of undeveloped land holding tremendous resource potential. Based on an independent assessment of Encana's proved reserves and low estimate economic contingent resources, as of December 31, 2010, this natural gas inventory would last approximately 30 years based on 2010 annualized production.

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PGI, Fossil to Begin Drilling Kentucky Assets in Sept.

- PGI, Fossil to Begin Drilling Kentucky Assets in Sept.

Wednesday, August 24, 2011
PGI Energy Inc.

PGI through its joint venture with Fossil Energy as operator enters into E&P in Kentucky. PGI and Fossil will begin drilling in the beginning of September and will post videos and photos of the drilling activity. We expect to complete the proven wells within 90 days and begin receiving revenues. PGI Energy owns 40% of the project leases which was purchased for an undisclosed amount. PGI will receive 75% of the Net 80% NRI from the monthly production until payout of PGI contribution, and then drop to 50 Net WI. Specific details of the field will be posted to our company website. "We are excited to have closed on this asset purchase and look forward to receiving revenues from this production," said Robert Gandy, Senior Underwriter for PGI Energy.

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Noble Energy Pays $3.4 Billion For 50% Stake in Consol's Marcellus Assets

- Noble Energy Pays $3.4 Billion For 50% Stake in Consol's Marcellus Assets



Aug 18, 2011

Noble Energy (NYSE:NBL) agreed to pay $3.4 billion to Consol Energy (NYSE:CNX) for a 50% interest in Consol's Marcellus Shale assets.

The two companies will create a joint venture to develop Consol's 663,350 acres in the region.

In early trading, Consol rose $1.80, or 4.24%, to $42.22. In spite of the deal between Consol and Noble, most companies with property in the Marcellus region are declining along with the broader market.

Noble Energy (NYSE:NBL) has a potential upside of 33.4% based on a current price of $83.39 and an average consensus analyst price target of $111.25.

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Lexaria Purchases Producing Oil Assets in Mississippi

- Lexaria Purchases Producing Oil Assets in Mississippi

Friday, August 12, 2011
Lexaria Corp.

Lexaria has acquired certain producing oil assets within its core operating area in Wilkinson County, Mississippi.

Lexaria has purchased all of the 10% gross working interest held by Brinx Resources Ltd, in the Belmont Lake Oil Field and in other oil and gas assets in the area. As a result of this acquisition, Lexaria now owns between 42% and 50% gross working interest in the four producing oil wells at Belmont Lake, and 42% in any future development wells to be drilled therein. At the current time, plans are to drill two more PUD development wells at Belmont Lake this season, subject to a number of conditions.

Basic terms for the acquisition of the 10% gross working interest in the Belmont Lake Oil Field and assorted other nearby oil and gas assets, are a purchase price of $400,000 of which $200,000 is paid, and another $200,000 payment is due by November 12, 2011; and the issuance of 800,000 shares of restricted common stock of Lexaria Corp.

"This acquisition will produce an immediate increase in our oil revenue, and an increase in our proved oil reserves," said Chris Bunka, President of Lexaria Corp. "It is sensible for us to increase our ownership in the Belmont Lake oil field where we have built a wealth of knowledge and experience in recent years, as we prepare to leverage that knowledge."

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Cabot to Sell Assets in Rocky Mountain

- Cabot to Sell Assets in Rocky Mountain

Thursday, July 28, 2011
Cabot O&G Corp.

Cabot O&G announced new milestones in its Marcellus operation, well successes in its Eagle Ford position, a discovery in its Marmaton effort in Oklahoma, and an agreement to sell its Rocky Mountain natural gas assets – primarily the Green River basin assets of Wyoming. Additionally, the Company increased its production guidance for the remainder of the year.

Rocky Mountain Sale

The Company has signed a Purchase and Sale Agreement under which it is selling all of its producing assets and acreage in Wyoming, Colorado and Utah to an undisclosed third party for total consideration of $285 million, subject to normal and customary closing adjustments. Cabot will remove approximately 170 Bcfe of booked reserves and about 27 Mmcfe in daily production from its portfolio on the effective date of this sale. "We have not allocated capital to these assets since early 2009, and we have no near-term plans for new investments due to other opportunities in our portfolio," said Dan O. Dinges, Chairman, President and Chief Executive Officer. "For this reason, when the opportunity arose to monetize and effectively accelerate the cash flows from these assets, we agreed with the thought to redeploy non-valued capital into our Marcellus activity and our oil initiatives."

The transaction has an effective date of September 1, 2011, is scheduled to close in early October 2011 and excludes the Company's prospective oil shale acreage in both Montana and Nevada. "To that end, we are still evaluating our first Heath Shale well in Montana," said Dinges.

The Rocky Mountain deal, the East Texas joint venture/asset sales and some small miscellaneous sales activity are expected to provide Cabot with over $340 million in proceeds during 2011. This reinforces Cabot's commitment to fiscal discipline. "These transactions provide us the opportunity to add to our acreage position in liquid-rich areas of Texas and Oklahoma, as well as enhance the opportunity to drill a few more wells in the Marcellus in Pennsylvania," commented Dinges. "Only a portion of the expected proceeds are earmarked for 2011 expenditures currently, so my expectation is for debt to be reduced year over year – 2010 to 2011 – and for our program to deliver significant reserve and production growth even after these sales."

Operations

In the Marcellus, the wells continue to perform with exceptional success. Recently the Company completed a three-well pad, which resulted in all three wells reporting a 24-hour initial production rate of over 20 Mmcf per day. The corresponding 30-day production rate averaged over 17 Mmcf per day per well, or 52 Mmcf per day in total.

"Our acreage continues to provide consistently outstanding results," stated Dinges. "It is our plan to allocate a portion of our sales proceeds to drill more pad sites, to assist in the replacement of the sold Rocky Mountain production."

Additionally in the Marcellus, the Company now has two wells that have produced over 4 Bcf, one in 12 months, the other in 16 months; eight other wells that have produced over 3 Bcf; and overall field production now totals above 135 Bcf since the project commenced. At the time of this release, production from the Marcellus is a restricted rate of 420 to 430 Mmcf per day, nearly all of which is from 81 horizontal wells.

In the Eagle Ford during the second quarter, four horizontal oil wells were placed in production. The average 24-hour initial production rate for each of the four completed wells was 721 barrels per day equivalent. "Our Eagle Ford plan for the year is for 25 to 30 net wells," said Dinges. "Right now we have drilled 16 wells, have two wells drilling and have six in the queue for completions."

Earlier this year, the Company tested a new oil concept in the Marmaton oil shale located in the Texas and Oklahoma panhandles. The result was a 24-hour initial production level of 646 barrels of oil equivalent (592 Bopd, 325 Mcf per day) from a 10-stage completion in a 4,000' lateral. Additionally the completed well cost was just over $4.0 million, including some science work. "We remained quiet about this well as we wanted to add acreage," commented Dinges. "We now have over 32,000 net acres in the play, plan to participate as a non-operator in six wells and, depending on rig availability, may use some of our asset sale proceeds to drill another operated well here later in the year. Clearly a 10-stage completed well with initial production competitive with the Eagle Ford play and at a lower cost is an attractive place to allocate capital."

"I have been pleased with our 2011 effort as we continue to make great strides in our operations that have allowed another increase in production guidance, even with the Rocky Mountains sale," said Dinges. "We are building great momentum for 2012 where, based on moderate commodity prices, an early review of our program shows a cash flow positive investment year even after funding what is expected to be a record level organic investment effort."

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Chevron Sells Union Oil Cook Inlet Assets to Independent

- Chevron Sells Union Oil Cook Inlet Assets to Independent

Thursday, July 21, 2011
Knight Ridder/Tribune Business News
by Lisa Demer, Anchorage Daily News, Alaska

Chevron, the biggest oil and gas operator in Cook Inlet, is selling its assets there to an independent company, Hilcorp Alaska LLC.

Chevron and Hilcorp announced Tuesday that Chevron's subsidiary, Union Oil Co. of California, is selling contracts and interests in the Granite Point, Middle Ground Shoals, Trading Bay and MacArthur River fields.

The sale to Hilcorp also covers Chevron's interests in 10 offshore platforms, onshore gas fields, two gas storage facilities and two pipeline companies.

Terms were not disclosed. The companies said the deal should close by the end of the year, after it clears regulatory steps. Chevron plans to maintain its interests in Alaska's North Slope fields and the trans-Alaska oil pipeline.

The current net production for Chevron in Cook Inlet is 3,900 barrels of oil and 85 million cubic feet of natural gas per day, the company said.

A state senator from Kenai said the changeover should be good for Cook Inlet production. An environmentalist said he wanted to look into whether the new player has the will and the ability to invest in Cook Inlet's crumbling infrastructure.

Hilcorp is one of the biggest privately held oil and natural gas exploration and production companies in the United States, but it is dwarfed by big producers like Exxon Mobil, BP and Conoco Phillips.

"The standard pattern is the majors come in and pick the low-hanging fruit, and then the independents and juniors come in and mop up," said Bob Shavelson, executive director of the environmental advocacy group Cook Inletkeeper. "The biggest question is: Do they have the assets to deal with aging infrastructure in Cook Inlet?"

Some of the platforms date back to the post-statehood era of the late 1960s, and there are serious maintenance and corrosion issues, Shavelson said.

Sen. Tom Wagoner, R-Kenai, said he didn't think Hilcorp would be making the deal if it wasn't ready to invest.

"They have looked at the assets. They know what's here in Cook Inlet," said Wagoner, who got a call from Hilcorp about the sale Tuesday.

Hilcorp may be better situated for upgrading and expanding than Chevron, which has numerous projects around the world competing for its investment dollars, the senator said.

Hilcorp, headquartered in Houston, Texas, operates in nine areas including the Gulf Coast and the Rockies. It has more than 700 employees and is actively growing. It's been recognized for a progressive corporate culture. Last year, the Houston Chronicle ranked Hilcorp the No. 1 midsize workplace.

Wagoner said he hopes Cook Inlet workers hold onto their jobs.

"Those are the people I worry about," Wagoner said. "Those platforms -- those are a lot of jobs in Cook Inlet. Most of those people are my neighbors."

The Hilcorp acquisition comes after the federal government announced there's far more oil and natural gas in Cook Inlet than previously thought.

Copyright (c) 2011, Anchorage Daily News, Alaska

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Vanguard to Purchase Remaining Encore Assets for $998MM

- Vanguard to Purchase Remaining Encore Assets for $998MM

Monday, July 11, 2011
Encore Energy Partners LP

Vanguard Natural Resources and Encore Energy announced the execution of a definitive agreement that would result in a merger whereby Encore would become a wholly-owned subsidiary of Vanguard's operating company, Vanguard Natural Gas, LLC, through a unit-for-unit exchange. Under the terms of the definitive agreement, Encore's public unitholders would receive 0.75 Vanguard common units in exchange for each Encore common unit they own at closing, representing a premium of approximately 4.4% based on the closing prices of Encore common units and Vanguard common units on March 24, 2011, the last trading day before Vanguard announced its initial proposal to acquire all of the common units of Encore owned by the public and an approximately 51% premium over the December 31, 2010 purchase price paid to Denbury for 45.6% of the Encore common units. The transaction would result in approximately 18.4 million additional common units being issued by Vanguard. The deal is valued at an approx. $998 million. The terms of the definitive agreement were unanimously approved by the members of the Encore Conflicts Committee, who negotiated the terms on behalf of Encore and is comprised solely of independent directors. In addition, Jefferies & Company, Inc., has issued a fairness opinion to the Encore Conflicts Committee stating that they believe the exchange ratio is fair, from a financial point of view, to the unaffiliated unitholders of Encore. The members of the Vanguard Conflicts Committee, which is also comprised solely of independent directors, negotiated the terms on behalf of Vanguard and also voted unanimously in favor of the merger. In addition, RBC Capital Markets has issued a fairness opinion to the Vanguard Conflicts Committee stating that they believe the exchange ratio is fair, from a financial point of view, to Vanguard.

"We are pleased to announce our agreement to combine these two companies in a transaction that would simplify our commercial activities and organizational structure as well as lower our overall cost of capital," said Scott W. Smith, president and chief executive officer of Vanguard.

The merger is expected to provide benefits to current Vanguard unitholders by, among other things:

• streamlining Vanguard's organizational structure, which enhances transparency for investors, while also reducing operating complexity and the company's overall cost of capital;
• creating an enterprise of significantly increased size and scale, improved overall operating reach and greater cash flow stability;
• realizing meaningful cost synergies primarily from eliminating public company expenses associated with Encore;
• expanding geographic reach and diversification from an operational and employee perspective, which should improve Vanguard's ability to compete more aggressively for future acquisitions; and
• maintaining Vanguard's strong credit profile and liquidity position by completing the merger on the basis of an all-equity, unit-for-unit exchange.

"We fully support the combination of these two successful companies," said John Jackson, chairman of the Encore Conflicts Committee. "We believe Encore's public unitholders will benefit from Vanguard's future growth potential."

The merger is expected to benefit Encore's public unitholders by, among other things:

• providing Encore unitholders with a premium of approximately 4.4% through the exchange of 0.75 Vanguard common units for each Encore common unit based on the closing prices of Encore and Vanguard common units on March 24, 2011, the last trading day before Vanguard announced its initial proposal to acquire all of the common units of Encore owned by the public and an approximately 51% premium over the December 31, 2010 purchase price Vanguard paid to Denbury Resources, Inc. for 45.6% of the Encore common units;
• eliminating the administrative services agreement, which currently requires Encore to pay an annual fee of approximately $6.5 million to its general partner in connection with providing certain administrative services;
• providing Encore unitholders with ownership in a much larger and more diverse entity with an enterprise value of approximately $2.0 billion that has a stronger balance sheet and is capable of pursuing significantly larger and more meaningful growth opportunities; and
• providing Encore unitholders with an opportunity to benefit from potential future unit price appreciation and increased cash distributions through ownership of Vanguard common units.

The completion of the merger is subject to approval by a majority of the outstanding Encore common units. Vanguard's operating company, Vanguard Natural Gas, LLC, already owns Encore's general partner and approximately 45.6% of the Encore outstanding common units and has also executed the definitive agreement between Vanguard and Encore. The completion of the merger is also subject to the approval of the issuance of additional Vanguard common units in connection with the merger by the affirmative vote of a majority of the votes cast by Vanguard unitholders. Completion of the merger, assuming the requisite unitholder votes are obtained and subject to other customary terms and conditions, is expected to occur during the fourth quarter of 2011. Distributions will continue to be paid by each company pursuant to their own cash distribution policies while the merger is pending.

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PetroVietnam Mulls Buying ConocoPhillips Offshore Vietnam Assets

- PetroVietnam Mulls Buying ConocoPhillips Offshore Vietnam Assets

Friday, July 08, 2011
Dow Jones Newswires
HANOI
by Vu Trong Khanh

State-run Vietnam Oil and Gas Group, or PetroVietnam and its partners are considering buying ConocoPhillips' stakes in three oil and gas projects off the coast of Vietnam, PetroVietnam said.

"The reason why the firm [ConocoPhillips] is selling the stakes might be it is restructuring itself," PetroVietnam Director General Phung Dinh Thuc said in a statement on the website of PV Oil, a PetroVietnam unit. He didn't identify the partners.

ConocoPhillips' assets in Vietnam are valued at up to $1.5 billion, PV Oil said in the statement.

The remarks come at a time when ConocoPhillips is expected to give investors an update on its three-year restructuring plan presented in late 2009 and expanded this year. The plan includes selling up to $17 billion in assets. Conoco Senior Vice President of Planning and Strategy Alan Hirshberg has said in a May the company was looking at leaving countries where it has a small presence.

ConocoPhillips, the third-largest U.S. oil company by market value after ExxonMobil and Chevron, has a 23.3% stake in a group of five fields in Block 15-1, where oil production started in 2003, a 36% stake in Rang Dong Field in Block 15-2 in the Cuu Long basin and a 16.3% stake in the Nam Con Son Gas Pipeline project, it said.

ConocoPhillips spokesman John McLemore declined to comment saying the company's policy is not to discuss market speculation.

As host country, Vietnam has priority rights for any such purchase, Thuc said.

These oil fields are located 180 kilometers southeast of Ho Chi Minh City, in undisputed areas close to Vietnam's big Bach Ho field.

Thuc was quoted in the statement as saying oil production at the fields might have entered a "complicated stage," in an apparent reference to technical--rather than political--complexities.

Thuc referred to an increasingly bitter dispute between Vietnam and China over sovereignty of the South China Sea, or East Sea as it is known in Vietnam, but didn't directly link the dispute to the possible acquisition.

"PetroVietnam reiterates that Vietnam's sovereignty has been acknowledged by the international community, and therefore, it will not change its exploration and production plan in the East Sea," Thuc was quoted as saying.

The Vietnam-China sovereignty row heated up sharply recently when Hanoi accused Chinese vessels of harassing fisherman and cutting the cables of a vessel doing seismic oil exploration work in late May.

"The group will continue to use its Binh Minh 02 for seismic surveys in Vietnam's continental shelf, and will coordinate with related ministries and agencies to protect the operations of the ship," according to the statement. Binh Minh 02 is name of the ship which had its seismic cables cut.

"Our current conduct in the East Sea is being calm, to both contribute to the country's economy and to actively protect the nation's sovereignty in the sea," Thuc said.

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

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

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

Tuesday, June 28, 2011
Fluor Corp.

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

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

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

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

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

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Rocksource Sells U.S. Assets

- Rocksource Sells U.S. Assets

Friday, June 24, 2011
Rocksource ASA

Rocksource announced that its US subsidiaries have sold the U.S. onshore producing fields to a Texas-based oil and gas company. The transaction also terminates potential arbitration proceedings from the former owners of the US subsidiary Sandhawk Energy LLC, as described in Rocksource's Annual Report for 2010.

The US onshore assets, which in Rocksource's 1Q 2011 financial report were recorded as "assets classified as held for sale" in the consolidated statements of financial position, consist of gas producing fields in San Jacinto and Polk Counties, Texas and are owned through Rocksource's subsidiaries Rocksource Energy Corporation (REC) and Sandhawk Energy LLC (SHK). The fields are on a natural decline and have earlier been classified as non-core by Rocksource. The sale of these assets is in line with the Company's strategy to focus on drilling high potential, EM positive, exploration wells.

The US onshore assets were important in the build-up phase of Rocksource, providing cash flow to assist the Company growing its core business. Due to declining production coupled with a significant drop in US gas prices, the US assets have become increasingly marginal to Rocksource. The net proceeds from the sale are approximately USD 3.5 million and the sale will only have a marginal effect in the profit and loss statement.

Rocksource has a NOK 200 million bond maturing in May 2012 which has security in the U.S. onshore and other assets. The net proceeds from the sale will be used to make a partial early redemption of the bond.

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Encore, Vanguard Purchase Permian Basin Assets

- Encore, Vanguard Purchase Permian Basin Assets

Thursday, June 23, 2011
Encore Energy Partners LP

Encore has entered into a definitive agreement to acquire an undivided fifty percent interest in producing oil and gas assets in the Permian Basin of West Texas for a net purchase price of $42.5 million from a private seller. The other fifty percent interest in the assets is being acquired by Vanguard Natural Resources for $42.5 . Vanguard is the general partner of ENP. The interests to be acquired by ENP have estimated total net proved reserves of 2.74 million barrels of oil equivalent, of which approximately 70% are oil and natural gas liquids reserves. The properties being acquired are 100% proved developed. At closing of this transaction, net production to ENP attributable to the assets being acquired should be approximately 500 Boe/d. The effective date of the acquisition is May 1, 2011 and the Company anticipates closing this acquisition on or before August 1, 2011.

Scott W. Smith, President and Chief Executive Officer, commented, "This acquisition is an excellent MLP type asset and is a great addition to our Permian Basin portfolio. This acquisition was done jointly with Vanguard Natural Resources, LLC pursuant to the Business Opportunity Policy in place between the two companies. These assets are expected to generate very stable cash flows and production for the next several years. Upon execution of the purchase and sale agreement for this transaction, we entered into hedges covering a substantial portion of the estimated production from this acquisition for the next several years."

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JEDI to Snaps Up Eagle Ford Assets

- JEDI to Snaps Up Eagle Ford Assets

Monday, June 20, 2011
JGC Corp.

JGC Energy Development ("JEDI"), a wholly-owned subsidiary of JGC, signed a purchase and sales agreement on June 14th to acquire 10% ownership of the Eagle Ford Shale oil window assets, located in south Texas, from TriTech I, LLC ("TriTech"). JEDI is headquartered in Houston, Texas.

The ownership of the assets is scheduled to be transferred from TriTech to JEDI by the end of July, on completion of due diligence. Chesapeake, operator and 50% owner of the assets, is a leading company in the exploitation of unconventional resources, and has established a predominant position in various unconventional plays such as Eagle Ford Shale, Anadarko Basin, Permian Basin, Niobrara Shale and Utica Shale.

With the advancement of development technologies, United States production of shale gas has been skyrocketing, and shale oil is also being produced and developed in full swing in the Bakken Shale region extending from the northern United States up into Canada. Eagle Ford has also been yielding shale oil, and many oil companies have been ramping up the development of the region. The area acquired by JGC consists of approximately 63,000 acres (approximately 253 square kilometers), on which Chesapeake holds 50% and other American oil company holds 40%, while the 10% formerly held by TriTech will be transferred to JGC.

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Delta to Sell Remaining Assets to Wapiti

- Delta to Sell Remaining Assets to Wapiti

Friday, June 17, 2011
Delta Petroleum Corp.

Delta Petroleum has entered into a Purchase and Sale Agreement (PSA) with Wapiti to sell its remaining non-operated interests in various non-core assets for $43.2 million. The transaction is expected to close by the end of June.

The non-operated, non-core assets to be sold to Wapiti consist of Delta's remaining working interests in the fields of the DJ Basin and Texas. The working interests being sold in this transaction constitute the non-operated portions of these fields that were retained by Delta when Delta sold properties to Wapiti in August of 2010.

Carl Lakey, Delta's CEO, commented, "As we discussed on our last conference call, the expected proceeds from the sale of these non-core assets will allow us to fund current and future drilling activity in the Vega Area and reduce our senior secured debt balances. Our borrowing base with Macquarie will decrease by $22 million to $33 million as a result of the sale. The sale of the remaining non-core assets makes Delta essentially a pure Piceance Basin company. The Vega Area has been and will remain the focus of the Company's capital and efforts."

Macquarie Capital (USA) Inc. and Evercore Group, L.L.C. acted as financial advisors to Delta in connection with this transaction.

The Company also announced that it has recently finished completion activities on the 2C well and is transitioning to flow-back activities.

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Weatherford Plans to Sell Up To $1B in Assets -Wells Fargo

- Weatherford Plans to Sell Up To $1B in Assets -Wells Fargo

Wednesday, June 15, 2011
Dow Jones Newswires
HOUSTON
by Ryan Dezember

Weatherford plans to sell between $500 million and $1 billion worth of assets, according to analysts with Wells Fargo Securities, who said company officials briefed them on the plan in a recent meeting.

The divestitures would be of "mostly non-oilfield subsidiaries Weatherford has accumulated through its myriad acquisitions over the years," the analysts wrote in a client note.

Weatherford officials were not immediately available to respond to requests for comment.

Shares of Weatherford were up 0.28%, or 5 cents, at $17.66 in midday trading.

In selling the assets, the company's goals "are to free up both capital and managerial attention currently dedicated to these businesses," the analysts wrote.

Oilfield-service profits have risen rapidly from the recession as producers raced to exploit North America's unconventional onshore reserves amidst high oil prices. Weatherford's earnings, however, have lagged behind competitors Halliburton, Schlumberger, and Baker Hughes.

The Wells Fargo analysts said their meeting with Weatherford officials in Houston on Monday was one of several in which the executives are meeting with investors and "working on rebuilding the company's credibility."

In early March, Weatherford disclosed errors in its tax accounting for 2007 through 2010, which forced the company to adjust previously reported earnings. The March 2 disclosure pushed shares, which had been trading near a 52-week high, down 12.6%.

Late last month, in a rare rebuke, shareholders voted against the company's executive compensation plan in an advisory say-on-pay tally.

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

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Aux Sable Affiliate Adds Key Assets in Bakken Area

- Aux Sable Affiliate Adds Key Assets in Bakken Area

Friday, June 03, 2011
Aux Sable Liquid Products L.P.

Aux Sable Liquid Products Enbridge, Veresen and Williams Partners announced that Sable, an affiliate of Aux Sable, has executed an agreement with a wholly owned subsidiary of EOG to purchase and operate the Stanley Condensate Recovery Plant and the Prairie Rose Pipeline. The Prairie Rose Pipeline connects the Stanley Plant to the Alliance Pipeline, which delivers high energy dense phase gas to Aux Sable's Channahon, Illinois Plant for processing. The purchase agreement calls for the US $185 million transaction to close in July 2011.

The Stanley Plant commenced operation in February 2010 and will have a capacity of 80 MMcf per day when a current expansion is completed in June 2011. The plant removes the heavier hydrocarbon compounds while leaving the majority of the natural gas liquids in the rich gas delivered into the Prairie Rose Pipeline.

Bakken Shale

The 12-inch diameter, 83-mile Prairie Rose Pipeline also commenced operation in February 2010 and gathers gas from the Stanley Plant and other sources for delivery into the Alliance Pipeline system at Bantry, North Dakota. The pipeline has an estimated capacity of 110 MMcf per day and can be easily expanded to meet additional demand.

"This acquisition represents a significant step forward in the pursuit of our strategic growth objectives in the Bakken area, as it provides key infrastructure assets that will lead to increased deliveries of liquids-rich natural gas to our Channahon facilities," said W.J. (Bill) McAdam, President and Chief Executive Officer of Aux Sable. "With this acquisition, Aux Sable will be able to directly engage in and expand its role as a provider of value-added gathering and processing of natural gas and natural gas liquids from the Bakken play."

"As the largest crude oil producer in the North Dakota Bakken, EOG constructed these facilities when there was little infrastructure in the basin. We believe the time is right to sell these assets to an organization that specializes in gathering and processing, allowing us to focus on our core exploration and production activities in the region. We are pleased that Aux Sable recognized the value of both the Stanley Plant and the Prairie Rose Pipeline and are confident that under their management these facilities will benefit all operators in this part of North Dakota," said Ray L. Ingle, President of EOG's Pecan Pipeline (North Dakota), Inc. subsidiary.

Each of Aux Sable and Sable NGL is owned by Enbridge Inc. (42.7% equity interest), Veresen Inc. (42.7% equity interest) and Williams Partners (14.6% equity interest). Enbridge Inc. and Veresen Inc. each own a 50% interest in the Alliance Pipeline.

"We are pleased with this investment in that it bolsters our already strong position in the Bakken, one of the most prolific energy plays in North America," said Al Monaco, President, Gas Pipelines, Green Energy and International, Enbridge Inc. "The Pecan natural gas infrastructure increases the accessibility of the Alliance gas pipeline to Bakken-area producers and draws additional liquids-rich gas to the Aux Sable NGL fractionation plant near Chicago. The investment complements Enbridge's existing Bakken liquids pipeline systems in North Dakota and Saskatchewan. We look forward to working with producers to maximize the value of their resources in this region."

"This transaction demonstrates Veresen's commitment to execute on our strategic plans by expanding our services and presence in liquids-rich resource plays," said Stephen White, President and CEO of Veresen Inc. "The Pecan assets allow us to leverage our existing infrastructure investments, including Aux Sable and Alliance, and enhance our capacity to provide high-value services both to producers and end users."

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Petronas Purchases $1.1B Stake in BC Shale Assets

- Petronas Purchases $1.1B Stake in BC Shale Assets

Thursday, June 02, 2011
Progress Energy Resources Corp.

Progress Energy has executed a binding framework agreement to create a strategic partnership with the Malaysian national oil company, Petronas, to develop a portion of Progress' Montney shale assets in the Foothills of northeast British Columbia. Progress will sell 50 percent of its working interest in its Altares, Lily and Kahta properties (the "North Montney Joint Venture") to Petronas for $1.1B (CDN $1.07 billion). The agreement also reflects the desire by both parties to explore additional opportunities to develop liquefied natural gas (LNG) export capacity in British Columbia.

"This is a breakthrough transaction for Progress: the partnership we are launching will enable us to accelerate our growth strategy," said Michael Culbert, President and Chief Executive Officer of Progress. "We are very pleased to form this long-term partnership with Petronas. They share our belief that our North Montney shale assets are a world-class resource that deserves significant investment. We look forward to benefitting from Petronas' significant global expertise including their leadership in developing infrastructure and accessing LNG markets. As well as enhancing Progress shareholder value, this partnership will also generate substantial economic benefits for local communities and the province of British Columbia, while leveraging the environmental benefits of Canada's abundant and clean-burning natural gas resources globally."

Under the terms of the framework agreement, Petronas will pay 25 percent of the total consideration (CDN $267.5 million) in cash at closing and 75 percent of the total consideration in the form of a capital carry whereby Petronas will pay 75 percent of Progress' share of future capital expenditures in the North Montney Joint Venture over the next five years to a total of CDN $802.5 million. The Transaction provides Progress with the capital required to accelerate the development of its unconventional assets and unlock the value underlying the Company's vast Montney land holdings.

In addition to the above Transaction, Petronas and Progress will establish an LNG export joint venture (the "LNG Export Joint Venture") to be 80 percent and 20 percent owned, respectively. The LNG Export Joint Venture will launch a feasibility study to evaluate building and operating a new LNG export facility on the West Coast of British Columbia. PETRONAS would be the operator of this facility, and Petronas and Progress would jointly market the LNG utilizing Petronas' well-established and extensive network of customers in the largest LNG markets globally.

"Canada is poised to take a larger role on the world's energy stage. Developing new export options for Canadian natural gas producers is a logical step in connecting our vast resources with growing Asian demand for environmentally responsible energy sources like natural gas," said Mr. Culbert. "We look forward to working with West Coast British Columbia communities as we pursue this opportunity to build a new facility that will add value to British Columbia's natural resources while creating considerable long-term local economic benefits."

In connection with the LNG Export Joint Venture, Petronas will provide a standby equity financing commitment of up to $600 million, for Progress' capital requirements arising from the North Montney and LNG Export joint ventures from which Progress can draw down at the time of a successful LNG final investment decision.

The North Montney Joint Venture comprises 149,910 working interest acres in which Petronas will acquire a 50 percent interest and Progress will be the operator. The North Montney Joint Venture lands represent approximately 20 percent of Progress' rights in its northeast British Columbia Foothills land holdings, which total approximately 700,000 net acres. Progress holds approximately 900,000 net acres of Montney rights over its entire British Columbia and Alberta land base, making it one of the largest Montney land rights holders. The joint venture properties include five wells with minimal production at this time.

The closing of the transaction is subject to the execution of definitive agreements and receipt of regulatory approval. BMO Capital Markets acted as exclusive financial advisor to Progress on this transaction.

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Marathon Oil to Purchase Eagle Ford Assets for $3.5B

- Marathon Oil to Purchase Eagle Ford Assets for $3.5B

Wednesday, June 01, 2011
Marathon Oil Corp.

Marathon has reached a definitive agreement with Hilcorp Resources Holdings, LP to purchase its assets in the core of the Eagle Ford shale formation in Texas in a transaction valued at $3.5 billion subject to closing adjustments, customary terms and conditions, and Hart-Scott-Rodino approval. Hilcorp Resources Holdings is a partnership between affiliates of Hilcorp Energy Company and Kohlberg Kravis Roberts & Co. LP. Along with other transactions expected to close by the end of 2011, Marathon's Eagle Ford acreage position is expected to more than double to 285,000 net acres. The Hilcorp transaction is expected to close Nov. 1, 2011 with an effective date of May 1, 2011.

Hilcorp acreage acquisition highlights:

• Approximately 141,000 net acres (217,000 gross) primarily in Atascosa, Karnes, Gonzales and DeWitt counties in Texas
• Potential opportunity to acquire approximately 14,000 additional net acres through tag-along rights and other leasing
• Approximately 90 percent operated with 65 percent average working interest
• As of May 1 there were 36 wells producing approximately 7,000 net (17,000 gross) barrels of oil equivalent (boe) per day, of which 80 percent is liquids (three-fourths of which is crude oil and condensate)
  • 10 additional wells drilled and awaiting completion
  • Six rigs currently operating and two dedicated hydraulic fracturing crews
  • Year-end production expected to be approximately 12,000 net boe per day
• Total net risked resource potential of 400 - 500 million boe with upside potential from additional downspacing and other stacked pay potential
• Potential to book up to 100 million boe of proved reserves by the end of 2011
• Production expected to increase to approximately 80,000 net boe per day by 2016

"Marathon has captured a top-five acreage position in the core of the premier resource play in the U.S. since first entering the Eagle Ford in November 2010. This transaction enhances our already strong North America position focused on unconventional, liquids-rich resource plays that provide low-risk, scalable and profitable growth," said Clarence P. Cazalot Jr., Marathon president and CEO. "This and other projects under development serve as a catalyst for Marathon to increase our projected Upstream production growth to 5 - 7 percent on a compound average annual growth rate (CAGR) during the period 2010 - 2016.

"In addition to establishing our position in the highest value oil and condensate core area of the Eagle Ford shale, these assets will deliver immediate production and reserve additions, an active Company-operated drilling program, significant resource potential, as well as solid economic returns and profitability that are immediately accretive to earnings and operating cash flow, and expected to be self-funding by 2014.

"With our technical expertise and best-in-class drilling, along with our project execution skills, we are poised to maximize profitable reserve and production growth across our liquids-rich resource plays, particularly in the Eagle Ford. Importantly, our financial flexibility enables us to pursue this growth while maintaining a strong balance sheet," Cazalot said.

Marathon will use cash on hand and cash generated from operations to fund the transaction. With an anticipated fourth quarter closing, the Company's Upstream capital, investment and exploration spending for 2011 (excluding acquisitions) is not anticipated to increase materially as a result of this transaction.

Increased Production Growth Across North America

In addition to the six rigs currently under contract related to this acquisition and two in Marathon's other Eagle Ford acreage, Marathon has five drilling rigs on order and expects to be operating at least 20 drilling rigs in the Eagle Ford within 12 months of closing this transaction. As a result, the Company expects to grow production from its total Eagle Ford acreage position to a peak of approximately 100,000 net boe per day by 2016. A summary of the total Eagle Ford acreage listed by county is included below.

County	Net Acres
Wilson	98,000
Atascosa	47,000
Karnes	46,000
Gonzales	34,000
Frio	22,000
DeWitt	11,000
Bee	10,000
Lavaca	9,000
Live Oak	6,000
McMullen	2,000
Total	285,000

This acquisition brings Marathon's holdings to nearly 1 million net acres across North American liquids-rich resource plays in the Eagle Ford, North Dakota Bakken, Oklahoma Anadarko Woodford, the emerging Niobrara in Colorado and Wyoming, and an in-situ position in Alberta Canada - with plans to continue to grow acreage and increase drilling activity in each of the U.S. basins. Within 12 months of closing this transaction, Marathon expects to be operating 35 - 40 rigs across the U.S. This drilling activity, along with a potential phased development of the Company's Birchwood in-situ acreage, provides a defined growth trajectory to achieve production from the Company's unconventional portfolio of approximately 175,000 net boe per day in the 2016 - 2017 timeframe.

The legal advisor to Marathon for this transaction is Baker Botts and the financial advisor is Barclays Capital. The legal advisor to Hilcorp Energy for this transaction is Andrews Kurth LLP and the legal advisor to KKR is Simpson, Thacher & Bartlett, LLP. Jefferies & Company, Inc. served as exclusive financial advisor to Hilcorp Resources Holdings for this transaction.

All production growth targets listed in this release are based on current estimates and exclude additional acquisitions or divestitures.

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