Exxon Mobil Back On Top As U.S.'s Valuable Company

- Exxon Mobil Back On Top As U.S.'s Valuable Company



Aug 12, 2011

After being surpassed by Apple (NASDAQ:AAPL) on Tuesday, Exxon Mobil Corp. (XOM) shares are again benefiting from a rise in the price of oil. They're up 2% Friday to $73.04, although still down for the week.

Exxon Mobil (NYSE:XOM) has a potential upside of 28% based on a current price of $72.57 and an average consensus analyst price target of $92.88.

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IEA: Recession Could Put Oil Market Back Into Surplus

- IEA: Recession Could Put Oil Market Back Into Surplus

Wednesday, August 10, 2011
Dow Jones Newswires
LONDON
by James Herron

The International Energy Agency said Wednesday that a double-dip recession could reduce energy demand enough to push global oil markets into surplus next year, although it made only small adjustments to its current forecasts despite the deepening economic gloom.

This assessment indicates that the recent plunge in international oil prices, down more than 12% at Tuesday's close compared with the start of August, could have some way further to fall if developed economies do slip back into recession.

However, given the tremendous economic uncertainty and the current finely balanced state of the oil market, the IEA warned against pre-emptive action from oil producers to defend high prices. "There is no justification at the present time for OPEC to think of substantially adjusting production downwards," said David Fyfe, head of the Oil Industry and Markets Division at the IEA.

OPEC members have so far made a "concerted effort" to keep the market well supplied, the IEA said in its monthly oil market report. Its most important member, Saudi Arabia, raised production in July to its highest level in 30 years, as it filled the gap left by lost Libyan exports, it said.

If global growth this year and next falls below 3%--a level previously said by the International Monetary Fund to be indicative of recession--oil demand could be significantly lower than current forecasts, the IEA said. Such an outcome could push the world's need for crude from the Organization of Petroleum Exporting Countries below the group's current production, it said, implying a market in surplus.

The IEA made clear this was only one possible scenario and has only slightly trimmed its current 2011 demand growth estimates despite growing signs of trouble in major consuming countries the U.S. and China. However, it also warned that these forecasts were based on the most recent IMF global growth estimates of over 4% for this year and next, which, "may ultimately prove too optimistic," in the current economic climate.

The IEA noted "serious concerns" about the U.S. outlook given weak second quarter GDP and high fuel prices. In recent days, the IEA, the U.S. Energy Information Administration and OPEC have all slashed their demand forecasts for the U.S. The IEA now expects U.S. oil demand to fall by 200,000 barrels a day, or 1%, this year.

China, the world's second major engine of oil demand, is also looking weaker. "For the first time since March 2009, China's monthly apparent demand contracted on an annual basis, falling by 1.5% in June," the IEA said. "The decline coincided with evidence that China's economy is also slowing down and that higher end-user prices are weighing upon demand."

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

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Oilex Preps for Flow Back at Cambay Well

- Oilex Preps for Flow Back at Cambay Well

Wednesday, August 10, 2011
Oilex Ltd.

Oilex advised that all eight stages of the fracture stimulation program of the horizontal section in the Cambay-76H well were pumped successfully and according to plan.

The well is currently being prepared for flow to surface to remove stimulation fluids from the formation (well clean-up phase). After the completion of the clean-up operations a flow test will be conducted.

The Cambay-76H "proof of concept" horizontal well is evaluating the production potential of the Y Zone interval of the extensive deep Eocene "tight" reservoirs in the onshore Cambay Production Sharing Contract area, Gujarat, India.

• Report date: August 9, 2011
• Status: Prepare for flow back and clean-up operations
• Past Week's Operations:
  • Completed eight stage fracture stimulation program
  • Completed micro-seismic and pressure data acquisition
  • Preparations for well clean-up operations
• Objective: Cambay Eocene "tight" reservoir Y Zone
• Total Depth: 2,740 meters including 610 meters horizontal section

The participating interests in the Cambay PSC are:

• Oilex Ltd (Operator) 30%
• Oilex NL Holdings (India) Limited 15%
• Gujarat State Petroleum Corporation Ltd 55%

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Prep Work Back On Track at Imperial's SWDF

- Prep Work Back On Track at Imperial's SWDF

Tuesday, August 02, 2011
Imperial Resources Inc.

Imperial Resources announced that preparation work for bringing its Green Tide Salt Water Disposal Facility ("SWDF") back on line is on schedule.

• Green Tide has contracted a drilling consultant with over 30 years relevant experience to advise on drilling and completion operations;
• Appropriate contractors are being engaged for mud logging, directional work, casing the well, verifying good cement bonds, and all other necessary experts are scheduled to be on hand ready for rig arrival;
• Electrical power to the facility should be restored during the course of this week at which point the computer system that manages the surface plant will be tested and upgraded. During this period the pumps will be de-pickled and a number of the transfer pump actuators are likely to be upgraded. This and any other necessary work will be carried out in parallel with the wellbore deepening to ensure that the facility is brought back on line as soon as is practically possible;
• A marketing plan is being developed and sales staff identified so that Green Tide may commence disposal sales operations as soon as drilling operations on the well are completed.

The drilling rig is expected to arrive over the course of the next three weeks after release from prior commitments elsewhere.

The aim is to deepen the Green Tide SWDF well from 3,100 to 8,500 feet to establish the well around 400 feet to 600 feet into the Ellenburger formation. Casing will then be cemented between about 7,500 and 8,500 feet and the well drilled ahead to ideally create about 2,000 feet of open hole exposure in the Ellenburger so as to maximize disposal capacity. Subject to success, commercial operations will commence immediately targeting full disposal capacity of 15,000 barrels per day as quickly as possible. At full capacity, the Company believes the Green Tide SWDF has the potential to generate significant cash flow at relatively low operating costs.

The Green Tide SWDF

The Green Tide SWDF is conveniently located for the disposal of large volumes of salt water generated from essential fracture stimulation operations on Barnett Shale gas wells. There are approximately 6,000 such Barnett wells within 20 miles of the SWDF.

Imperial plans to reopen Green Tide to dispose of up to 15,000 barrels of salt water a day. The Company's acquisition and development of the low run-time Green Tide assets and disposal permit is expected to save in excess of $5,000,000, compared to a new build cost.

Green Tide is one of two key projects identified as transformational for Imperial (the other being the Company's Oklahoma project).

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Production at Block S-1 in Yemen Back Online

- Production at Block S-1 in Yemen Back Online

Monday, July 18, 2011
TransGlobe Energy Corporation

TransGlobe Energy Corporation announced the repair of the Yemen export pipeline to the Red Sea and resumption of production at Block S-1.

Block S-1, Yemen (25% non-operated working interest)

TransGlobe was advised on July 16th that the export pipeline from Marib to the Ras Issa facility on the Red Sea was repaired on July 15th. The operator of Block S-1 began shipping sales crude oil on July 16th and commenced production from the An Nagyah field. The operator is currently ramping up production from the field and is producing approximately 8,300 Bopd Gross (2,075 Bopd to TransGlobe) this morning. Block S-1 produces a high quality (43 API) sweet crude oil and typically receives Brent pricing.

Block S-1 production (approximately 2,300 Bopd to TransGlobe) was shut in since March 17th, 2011 due to damage to the export pipeline.

The Company will provide updated Guidance for 2011 with the second Quarter financial results which are scheduled for release on Monday, August 8th.

TransGlobe Energy Corporation is a Calgary-based, growth-oriented oil and gas exploration and development company focused on the Middle East/North Africa region with production operations in the Arab Republic of Egypt and the Republic of Yemen. TransGlobe's common shares trade on the Toronto Stock Exchange under the symbol TGL and on the NASDAQ Exchange under the symbol TGA.

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Colombia Aims to Put Caribbean Oil Exploration Back On Track

- Colombia Aims to Put Caribbean Oil Exploration Back On Track

Wednesday, June 01, 2011
Dow Jones Newswires
by Dan Molinski

Colombia hopes it can resolve before the end of the year environmental issues that have delayed an offshore oil exploration plan in the Caribbean Sea by Spanish oil major Repsol and Colombia's state-controlled Ecopetrol.

Armando Zamora, the head of Colombia's oil licensing agency ANH, told reporters Wednesday that it and the two oil companies hope to reach an agreement with community leaders on the Colombia-owned island of San Andres that would allow for exploration contracts to be signed for the Cayos 1 and Cayos 5 blocks.

Nonetheless, the Colombian government official warned that without final consent from the San Andres island community--which is concerned about the effects on coral reefs and the fishing community--oil exploration in the area west of Nicaragua might prove impossible.

"We're aspiring for a deal to be reached during this year," Zamora said. "But both we the government and the companies don't want to force anything on the island communities. If in the end the communities say 'no,' then it's going to be very difficult" to continue with exploration plans.

The two oil blocks were awarded to Repsol and Ecopetrol last year in a drilling round aimed at boosting production in Colombia's already-booming oil sector. Crude oil output in Colombia reached a record 903,000 barrels a day in April and the government hopes production will reach 1 million barrels a day by the end of 2011.

Colombia has been hoping the waters it owns near San Andres, far from mainland Colombia, could allow it to become an offshore oil driller for the first time. Drilling near mainland Colombia has so far proven to be more gas-prone than oil-prone, although exploration efforts continue in several areas, including the Tayrona block held jointly by Repsol, Ecopetrol and Brazil's state-run company, Petrbras.

An official at Repsol in Bogota confirmed Wednesday that it hasn't yet signed a contract for either the Cayos 1 block or the Cayos 5 block, and he said that until that were to happen the company can't make any comments.

The oil blocks are located in the Seaflower Biosphere Reserve, a marine protected area that reportedly contains 76% of Colombia's coral reefs and is a nesting site for sea turtles. For more than a decade the reserve has been part of the United Nation's network of biosphere reserves.

The plan to begin exploration in the two oil blocks was suspended earlier this year after local groups filed a lawsuit against ANH for awarding the blocks within a protected area before consulting first with fishermen and others in the area that could be affected.

Zamora said the ANH hopes to convince the communities over the coming months that oil exploration would be done in an environmentally friendly fashion, and that the projects could bring jobs and improve the economies for the island of San Andres and Old Providence, a smaller island that is part of the same archipelago and is also owned by Colombia.

The Colombian official said it is too early to estimate how much oil might exist in the area.

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

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Commodity Corner: Oil Bounces Back

Commodity Corner: Oil Bounces Back

Monday, May 09, 2011
Rigzone Staff
by Matthew Veazey

Crude oil for June delivery settled above $100 Monday—$102.55 a barrel, to be exact.

Sensing a buying opportunity after last week's 14.7-percent decline in oil futures, investors helped to give oil a $5.37 day-on-day bounce. Monday's rally stems in part from expectations that the overall supply and demand fundamentals for oil will become less elastic by early 2012.

Oil peaked at $103.40 and bottomed out at $97.42 Monday.

Also surging Monday was the front-month price for gasoline, which gained 17 cents to settle at $3.28 a gallon. Propelling gasoline were fears that an increasingly swollen Mississippi River will curb production from refineries along the waterway. Widespread, potentially record-breaking spring flooding is threatening cities and towns along the river from the Midwest to the Deep South.

June gasoline traded within a range from $3.10 to $3.31.

Natural gas for June delivery lost 8.5 cents to end the day at $4.15 per thousand cubic feet. Gas, which has fallen as temperatures moderate in the Midwest and Northeast, fluctuated from $4.15 to $4.30 Monday.

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