ConocoPhillips To Establish Bohai Bay Fund

- ConocoPhillips To Establish Bohai Bay Fund



Sep 7, 2011

ConocoPhillips (NYSE:COP) announced on Wednesday that it will establish a fund related to the incidents at the Peng Lai field in Bohai Bay, China.

This fund will be designed to address ConcoPhillips' responsibilities in accordance with relevant laws of China and to benefit the general environment in Boahi Bay.

ConocoPhillips (NYSE:COP) has a potential upside of 26% based on a current price of $65.7 and an average consensus analyst price target of $82.8.

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ConocoPhillips Completes Shutdown of Bohai Bay Oilfield

- ConocoPhillips Completes Shutdown of Bohai Bay Oilfield



Sep 6, 2011

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

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

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

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ConocoPhillips Says Bohai Bay Cleanup Almost Complete

- ConocoPhillips Says Bohai Bay Cleanup Almost Complete



Aug 19, 2011

ConocoPhillips China (NYSE:COP) says the cleanup from the oil spills in China's Bohai Bay is nearly complete, with minimal impact to the environment.

The company said it "sincerely regrets" the incidents in Bohai Bay and "accepts its responsibilities.

ConocoPhillips (NYSE:COP) has a potential upside of 29.8% based on a current price of $63.79 and an average consensus analyst price target of $82.8.

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ConocoPhillips China Resumes Some Production at Bohai Bay Oil Field

- ConocoPhillips China Resumes Some Production at Bohai Bay Oil Field

Thursday, August 18, 2011
Dow Jones Newswires
BEIJING
by Wayne Ma

ConocoPhillips China said Thursday that it has restarted production at 14 production and water-injection wells at its Penglai 19-3 oil field in Bohai Bay.

The company has received approval from China's State Oceanic Administration to resume production after the wells were shut on July 13 because of an oil spill, it said in a statement on its website.

"Flowing these wells reduces the overall pressure in the subsurface formation, which will assure that the seeps stop and the fault, which was previously activated, naturally seals," the company said.

ConocoPhillips expects to have the oil spill cleaned up by the end of August, it added.

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

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CNOOC: Additional OBM Identified at Bohai Bay

- CNOOC: Additional OBM Identified at Bohai Bay

Friday, August 12, 2011
CNOOC Ltd.

CNOOC announced that, according to the latest statement by ConocoPhillips China Inc (COPC), the Operator of Penglai 19-3 oil field, more oil-based drilling mud (OBM) on the sea floor was identified. This addition brings the revised volume of OBM on the seabed to 400 cubic meters (2,500 barrels). The volume of oil released to the sea surface remains at 114 cubic meters (717 barrels). The total volume of fluids spilled from the incident amounts to 514 cubic meters (3,217 barrels) of oil and OBM and exceeds 240 cubic meters (1,500 barrels) as originally estimated by the Operator.

After the incident occurred, COPC has deployed substantial resources for oil recovery and cleanup work. According to COPC, its response personnel has recovered 269 cubic meters (1,700 barrels) of OBM from the seabed near the Penglai 19-3 C platform, and approximately 70 cubic meters (440 barrels) of oil/water mix from the sea surface to date.

As the non-operator, the Company has also fully utilized its resources and personnel to assist COPC on shoreline protection activities with 111 people walking approximately 3,289 kilometers of shoreline and 19 vehicles patrolled approximately 48,645 kilometers of shoreline along the Bohai Bay area by August 11.

In order to meet the requirements set by the State Oceanic Administration, the Company will continue to urge and assist COPC to stop the leaks and complete the cleanup work by the end of August, so as to minimize the impact of the oil spill incident on the marine environment.

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ConocoPhillips Updates Bohai Bay Cleanup

- ConocoPhillips Updates Bohai Bay Cleanup

Wednesday, July 13, 2011
ConocoPhillips

ConocoPhillips provided additional information in regards to the oil spill incidents that occurred in Bohai Bay, People's Republic of China on June 4th and June 17th 2011, and the ongoing clean up and containment program that is underway.

On June 4 seepage on the seabed was observed along a naturally occurring fault near the ConocoPhillips-operated Peng Lai B Platform. The majority of seepage has been stopped following prudent adjustment of certain production activities. A containment device was designed and constructed and put in place as a precaution should the seep occur from the main source again. Trace amounts of oil, estimated to be no more than liters per day, continue to seep out intermittently near the original seep location and occasionally cause minor surface sheens. Booms are deployed around the immediate surface area and are containing and collecting any such oil.

In a second incident, oil and gas bubbles were observed on the surface June 17 near another platform (C Platform) during drilling operations. The platform is about two miles away from the seabed seep near Platform B. Expert teams were immediately mobilized to contain the release. A cementing procedure successfully stopped the release within 48 hours, and the well was stabilized, plugged and abandoned. Trace amounts of bubbles are occasionally observed from the sea floor, and these bubbles continue to be monitored. Absorbent boom is in place in appropriate locations. Final clean up operations are ongoing.

ConocoPhillips responded quickly to both events and mobilized extensive clean-up equipment, facilities and personnel, including substantial resources made available by our co-venturer China National Offshore Oil Corporation ("CNOOC"). Relevant authorities were promptly notified, along with CNOOC. Almost 3,000 meters of absorbent and inflatable booms were deployed to contain the oil sheen, and 33 vessels (workboats, fishing boats and tugs) supported clean-up activities. ConocoPhillips is appreciative of the support provided by CNOOC during the containment and cleanup effort and to the State Oceanic Administration (“SOA”) for their guidance during these unfortunate events.

ConocoPhillips' current estimates of the aggregate amount of fluid spilled from the two incidents ranges from between 1,500 barrels (240 cubic meters) to 2,000 barrels (320 cubic meters) of oil and oil-based drilling fluids. The company is working with independent experts to validate the total spill quantity. During these incidents, no oil sheen reached the shoreline, and there were no injuries to personnel.

On July 13th, the SOA instructed ConocoPhillips to suspend production from Platforms B and C, and this order was complied with immediately. This shut in will result in a temporary reduction of approximately 17,000 barrels of oil per day net after royalties to ConocoPhillips. According to the SOA order, this temporary shut in will be in effect until the risks of another spill are eliminated. While the detailed causes of these incidents are still under investigation, ConocoPhillips will continue to work diligently and safely to finalize clean up activities and will be implementing additional reservoir management and field operating procedures to eliminate risks of additional releases.

ConocoPhillips will work closely with SOA and CNOOC to minimize the impact to the environment. Working safely and in an environmentally prudent manner is always the top priority to ConocoPhillips.

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ConocoPhillips Signs PSC for Exploration in Bay of Bengal

- ConocoPhillips Signs PSC for Exploration in Bay of Bengal

Thursday, June 16, 2011
ConocoPhillips

ConocoPhillips has signed a Production Sharing Contract (PSC) with the Government of Bangladesh and Petrobangla covering two blocks in the deepwater area of the Bay of Bengal, representing ConocoPhillips' first investment in the People's Republic of Bangladesh. ConocoPhillips holds 100 percent of the working interest in the PSC.

"ConocoPhillips is pleased to become part of the Bangladesh oil and gas community," said Larry Archibald, senior vice-president, Exploration and Business Development. "We fully expect that this contract signing will be the first step in a long and successful relationship between ConocoPhillips, Petrobangla and the Government of Bangladesh."

Blocks DS-08-10 and DS-08-11 cover a total area of 5158 sq. km., (1.27 million acres), and are located in water depth of 1000-1500 meters (3,300-5,000 feet) approximately 280 kilometers (175 miles) from the port city of Chittagong. The area awarded under the PSC is in the Bangladesh portion of the Bay of Bengal, the largest submarine fan in the world.

The deepwater area of Bangladesh is virtually unexplored, and ConocoPhillips' exploration efforts in Blocks DS-08-10 and DS-08-11 will begin as soon as possible with the acquisition of a large 2D seismic survey.

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Southern Bay Preps for Fracking Ops at Fayette Well

- Southern Bay Preps for Fracking Ops at Fayette Well

Friday, June 10, 2011
ureka Energy Ltd.

Eureka provided an update on drilling at the Blackjack Springs Unit 1H, the first well at its Pan de Azucar Eagle Ford Shale project in Fayette County, on-shore Texas USA. As per the latest Operator reports, the well has successfully reached a Total Depth of 16,680 ft, and has been subsequently cased and cemented in preparation for fracking operations.

Mr. Ian McCubbing, Chairman of Eureka stated that, "We are very pleased to have reached this key milestone with the well, and look forward to the fracking operations being undertaken which will provide us with important productivity information in the Pan de Azucar acreage. This is a significant step in the Company's appraisal and development strategy for what is its first exploration activity outside of the Sugarloaf AMI."

The well which was drilled by the Operator, Southern Bay Operating, LLC, a wholly-owned subsidiary of GeoResources Inc., achieved a horizontal section of approximately 6320 ft., and was drilled through the main target zone of the Eagle Ford Shale in accordance with the drilling plan.

The fracture stimulation operations are expected to be undertaken within the next few weeks, immediately after the Operator has completed fracture stimulation operations on its two Flatonia wells located less than 10km south west of Eureka's Pan de Azucar area.

The Blackjack Springs Drilling Unit is a 916 acre pooled unit to which Eureka has contributed 86 acres for its 9.4% working interest. The unit is immediately adjacent to the remaining 675 acres (EKA WI 100%) that make up the balance of the Pan de Azucar project.

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Southern Bay Starts Drilling in Fayette County

Southern Bay Starts Drilling in Fayette County

Friday, April 29, 2011
Eureka Energy Ltd.

Eureka announced the spudding of Blackjack Springs Unit #1H, the first well at its Pan de Azucar Eagle Ford Shale project in Fayette County, on-shore Texas USA.

As of April 27, 2011 local time, the operator, Southern Bay advised that the well had reached a depth of 2,080 ft and was drilling ahead. The well is planned to target the Eagle Ford Shale at a vertical depth of approximately 10,500 feet with a horizontal of around 6,000 feet.

The Blackjack Springs Drilling Unit is a 916 acre pooled unit to which Eureka has contributed 86 acres for its 9.4% working interest. The unit is immediately adjacent to the remaining 675 acres (EKA WI 100%) that make up the balance of the Pan de Azucar project.
The operator, Southern Bay, is a wholly owned subsidiary of GeoResources Inc.

CNOOC: FPSO Malfunction Halts Oilfields in Bohai Bay

CNOOC: FPSO Malfunction Halts Oilfields in Bohai Bay

Friday, April 22, 2011
CNOOC Ltd.

CNOOC announced that a malfunction occurred on the single point mooring system of the Floating, Production, Storage and Offloading (FPSO) vessel Haiyangshiyou 102 serving in the Bohai Bay due to rough sea conditions. Operations were immediately shut down at the affected oilfields.

Till now, the Haiyangshiyou 102 FPSO has been safely secured and tugged to safe area. There were no injuries during the process and no oil spill was found. The Company is actively working on the recovery plan to resume production as early as possible.

The oilfields affected this time include Bozhong (BZ) 28-2 S, BZ 28-2 SN, BZ 34-1N and BZ 29-4. All of these four fields are owned and operated by the Company. The total production capacity was approximately 39,000 barrels per day.

The Company maintains appropriate insurance coverage of the operations related to the oilfields.

Phoenix Spuds Well in Atchafalaya Bay

Phoenix Spuds Well in Atchafalaya Bay

Friday, April 08, 2011

Petsec Energy Ltd.

Petsec advised that the Marathon #2 well has been spud in the shallow waters of the Atchafalaya Bay along the Louisiana Gulf Coast, USA. Phoenix Exploration is the operator and the well has spud on 5th April using the Parker 54B drilling rig.

The second Marathon well is a follow up to the successful #1 well which was brought into production in late 2010 and is consistently producing at rates of over 20 million cubic feet of gas and 120 barrels of condensate per day.

The 21,000 feet (6,500 meters) Marathon #2 well is situated in approximately 8 feet (2.4 meters) water depth and is located approximately 900 meters from the #1 well location. The #2 well is designed to serve as a development well for the field as well as to test deeper exploratory reserve potential on the Marathon structure. Drilling operations are expected to take 121 days to reach total depth, log and case. Petsec's estimated net cost to drill, log and case is US $1.3 million.

• Participating working interests in the well are:
  • Petsec Energy Ltd 8%
  • Phoenix Exploration Company LP (operator) 65%
  • Private Companies 27%