Hess Bids High to Extend Utica Footprint

- Hess Bids High to Extend Utica Footprint

Wednesday, September 07, 2011
Hess Corp.

Hess has entered into an agreement with CONSOL Energy Inc. to acquire a 50 percent interest in CONSOL's nearly 200,000 acres in the Utica Shale in eastern Ohio for aggregate payments of $593 million.

"We are delighted with our entry into the Utica Shale, which enables us to build a strategic acreage position in an emerging unconventional play in the United States," said John Hess, Chairman and CEO of Hess Corporation. "We believe that this acquisition offers significant potential for future growth in reserves and production with most of the land either owned in fee or held by production with high net revenue interests. We are honored to partner with CONSOL, which has a long history and an excellent safety and operating record in the Appalachian basin. We believe that together our companies will build a profitable business and deliver important economic benefits for the residents of eastern Ohio."

Hess will pay CONSOL $59 million at closing, which is expected in October, and $534 million in the form of a 50 percent drilling carry of certain CONSOL working interest obligations over a five year period. The joint exploration and development plan calls for Hess to operate approximately 80,000 acres in Jefferson, Harrison, Guernsey and Belmont counties while CONSOL will operate approximately 120,000 acres elsewhere in eastern Ohio, including Portage, Tuscarawas, Mahoning and Noble counties. Appraisal drilling is expected to commence in the fourth quarter.

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Myanmar O&G Exploration Tender Draws over 50 Bids

- Myanmar O&G Exploration Tender Draws over 50 Bids

Thursday, September 01, 2011
Dow Jones Newswires
SINGAPORE
by Cheang Chee Yew

Myanmar has received more than 50 bids for an oil and gas exploration tender, which closed last week, a government official said Thursday.

The bidders are from China, Europe, Middle East, Russia and Southeast Asia, the official, who didn't wish to be named, said.

The energy planning department is now short-listing the bidders and will invite selected firms to review the geological and geophysical data of 18 onshore blocks, mostly in central areas, the official said.

Each short-listed foreign firm is required to form a joint venture with an approved Myanmarese company to bid in the tender. Local companies participating in the tender have to register with the energy ministry by Sept. 9.

Once the review of geological and geophysical data is completed, the joint ventures can submit details on the work program and budget to the ministry.

As of April 1, 2008 the country's proven onshore and offshore crude-oil reserves were 112 million barrels and 101 million barrels respectively, Myanmar Oil and Gas Enterprise, which regulates the upstream oil and gas sector, said previously.

Proven onshore and offshore natural gas reserves totaled 0.46 trillion cubic feet and 17 trillion cubic feet respectively.

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

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BHP Billiton Bids High to Extend US Shale Footprint

- BHP Billiton Bids High to Extend US Shale Footprint

Friday, July 15, 2011
BHP Billiton plc

BHP Billiton and Petrohawk have entered into a definitive agreement for BHP Billiton to acquire Petrohawk for US $38.75 per share by means of an all-cash tender offer for all of the issued and outstanding shares of Petrohawk, representing a total equity value of approximately US $12.1 billion and a total enterprise value of approximately US $15.1 billion, including the assumption of net debt. The Petrohawk board of directors has unanimously recommended to Petrohawk shareholders that they accept the offer.

The transaction would provide BHP Billiton with operated positions in the three world class resource plays of the Eagle Ford and Haynesville shales, and the Permian Basin. Petrohawk's assets cover approximately 1,000,000 net acres in Texas and Louisiana, with estimated 2011 net production of approximately 950 million cubic feet equivalent per day (MMcfe/d), or 158 thousand barrels of oil equivalent per day (Mboe/d). At year-end 2010, Petrohawk reported proved reserves of 3.4 trillion cubic feet of natural gas equivalent (Tcfe). The company has a current non-proved resources base of 32 Tcfe for a total risked resource base of 35 Tcfe. Petrohawk reported gross assets of US $8.2 billion as at 31 March 2011 and US $390 million of profit before tax for the year ended 31 December 2010.

BHP Billiton CEO, Marius Kloppers, said the acquisition was a natural fit with BHP Billiton's strategy.

"The proposed acquisition of Petrohawk is consistent with our well defined, upstream, Tier 1 strategy and provides us with even greater exposure to the world's largest energy market, while also broadening our geographic and customer spread. Importantly, our offer and the associated substantial premium represent a unique opportunity for Petrohawk shareholders and recognize the growth opportunities embedded in its portfolio immediately.”

BHP Billiton Petroleum Chief Executive, J. Michael Yeager, said the Petrohawk acquisition would add high quality growth to the company.

"Petrohawk has a focused portfolio of three world class onshore natural gas and liquids rich shale assets. With over a decade of significant investment and volume growth ahead, this transaction would build on our recent acquisition of the Fayetteville shale in Arkansas and provides the potential to more than double our existing resource base. Following completion of the Petrohawk transaction, BHP Billiton Petroleum will be on track to deliver a compound annual production growth rate of more than 10 per cent for the remainder of the decade as we accelerate our shale development program and leverage our strategic capability in the deep water.

"Importantly, BHP Billiton would retain Petrohawk's sizable U.S. based workforce, which has been at the forefront of the technological innovation that brought about the economic viability of U.S. shales. We look forward to extending our dedication to safeguarding the environment and the communities where we operate and continuing our commitment to safe and responsible operating practices across all of our shale gas plays, including the world-class assets that Petrohawk would bring to our portfolio."

Petrohawk CEO, Floyd Wilson, stated, "We believe these premium oil and natural gas assets would benefit significantly by residing within a larger entity that can employ more capital intensity to accelerate their realized value. We are excited to see this transaction completed and to be part of the BHP Billiton organization."

The tender offer is expected to commence by July 25, 2011. The acquisition is subject to the terms and conditions set forth in the merger agreement, including a condition that at least a majority of the outstanding Petrohawk shares are tendered, that the waiting period under the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, has expired or been terminated and that clearance is obtained from the Committee on Foreign Investment in the United States, and other customary conditions. If the tender offer is completed, un-tendered shares of Petrohawk will be converted into the right to receive the same US $38.75 per share price paid in the tender offer. The transaction is to be financed from existing cash resources and a new credit facility and is not subject to any financing contingency. The transaction is expected to close in the third quarter of 2011.

BHP Billiton has engaged Barclays Capital and Scotia Waterous as financial advisors in connection with this Offer. Its legal advisors are Sullivan & Cromwell LLP and Morgan, Lewis & Bockius LLP in the United States. Barclays Capital will act as Dealer Manager for the offer. Petrohawk has engaged Goldman Sachs as its financial advisor in connection to this Offer. Its legal advisor is Simpson Thacher & Bartlett LLP.

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Nova Scotia Calls For Deepwater Bids

- Nova Scotia Calls For Deepwater Bids

Thursday, June 30, 2011
CNSOPB

The Canada - Nova Scotia Offshore Petroleum Board (CNSOPB) has issued Call for Bids NS11-1. The Call consists of eight deep water parcels offshore Nova Scotia, some of which were nominated by industry. Bids must be received by Tuesday, January 10, 2012, 4:00 p.m. Atlantic Time. The Board will only accept bids from companies that have experience in the drilling of exploration wells in water depths greater than 800 meters in the past ten years.

“This Call for Bids includes deepwater parcels located in a largely unexplored area of Nova Scotia’s offshore,” says Stuart Pinks, Board CEO. “The Offshore Energy Technical Research Association’s (OETR) Play Fairway Analysis provides strong evidence that this area could have significant oil potential. The parcels are located in a geological region that contains many large undrilled structures that could trap oil or gas.”

The Board has made detailed geoscientific assessments and regulatory information associated with the parcels available on its website.

The successful bidder(s) will be awarded an Exploration Licence (EL) subject to federal and provincial Ministerial approval.

The CNSOPB is preparing a Strategic Environmental Assessment (SEA) for exploration activities in areas identified in this Call for Bids which will include two public comment periods; one on the scope of the assessment and the other public comment period on the draft SEA report. The SEA will identify any environmental issues that a successful bidder would need to address when performing a project-specific environmental assessment which is required before any activity can begin.

In addition, the public is invited to submit written comments to the Board on the lands included in this Call for Bids. Written submissions must be received by Tuesday, December 20, 2011, 4:00 p.m. Atlantic Time. Such submissions will be considered by the Board before an Exploration Licence is issued.

Written submissions from the public should be sent to:

Director, Resources & Rights, Canada - Nova Scotia Offshore Petroleum Board
1791 Barrington Street
6th Floor, TD Centre
Halifax, Nova Scotia
B3J 3K9
or via e-mail at callforbids@cnsopb.ns.ca.

Further information about the Call for Bids can be found on the Board’s web site at www.cnsopb.ns.ca.

The Canada-Nova Scotia Offshore Petroleum Board is the independent joint agency of the Governments of Canada and Nova Scotia responsible for the regulation of petroleum activities and resources offshore Nova Scotia.

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Petrobangla to Invite Int'l Gas Block Bids in July

- Petrobangla to Invite Int'l Gas Block Bids in July

Tuesday, May 31, 2011
Asia Pulse Pte Ltd.

Bangladesh's state-owned oil and gas firm Petrobangla may get the final nod sometime next in June and begin international bidding for the country's gas blocks in July, Energy Ministry officials have said.

According to the officials, the preparation is progressing at an accelerated pace targeting the middle of the year to invite international oil companies (IOCs) in the Bidding Round 2011.

This will be the fourth international bidding after the last caretaker government had invited the third round bidding in 2008.

Energy Ministry officials said the nagging gas crisis has prompted the government to go for hurried international bidding.

An official said the Petrobangla has already prepared a map for the whole bidding area covering both the offshore and onshore areas of the country.

As per the bidding plan, the country's total area has been divided into 68 gas blocks but the bidding will be held for only 31 blocks - 23 onshore areas and eight offshore areas. During the third round bidding, the country's total area was divided into 57 gas blocks.

An Energy Ministry official said the bidding will be kept confined only within the onshore and shallow-water block areas where no dispute exists.

He said the blocks located in deep sea areas have been left out of the bidding as some of them have disputes of overlapping with neighbors.

The disputed areas now await a settlement in the UNCLOS, a UN agency responsible to deal with the maritime boundary dispute for settlement.

Petrobangla officials said they have already sent an initial plan to the Energy Division for scrutiny and necessary observation.

"Upon receiving the Energy Division's observations, we will prepare the final draft for the bidding and also other relevant documentations, including some promotional packages for the interested investors," a top official of Petrobangla told UNB.

"Petrobangla will then place the bidding plan to an inter-ministerial meeting to be convened by the Energy Ministry," he said. "When we receive the nod from that meeting, we would go for the bidding."

The official felt that the remaining process will take about a month and the bidding will finally be floated in July.

He said in the coming round of bidding, there will be some changes in the context of global scenario of hydrocarbon and petroleum business.

(C) 2011 Asia Pulse Pte Ltd.

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Shell, Maersk Offer Bids for Offshore Danish Project

- Shell, Maersk Offer Bids for Offshore Danish Project

Thursday, May 26, 2011
IndigoPool

Shell and Maersk Oil as the operator (the Partners) are jointly offering up to 60% interest in the Elly and Luke development project located near the existing Tyra gathering, treating and transportation infrastructure. The Partners are in the advanced stages of planning for the combined development of the Elly and Luke discoveries that will deliver hydrocarbons into the Danish and Dutch gas transmission systems. The Luke and Elly fields are expected to yield mean recoverable gas resources of 180 BCF, with upside estimated at 430 BCF. In addition, exploration prospects in the licenses have potential mean recoverable gas resources estimated at 140 BCF with an upside of 422 BCF.

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Chevron Bids High to Extend Footprint in Norwegian Sea

Chevron Bids High to Extend Footprint in Norwegian Sea

Tuesday, April 19, 2011
Chevron Corp.
by SubseaIQ

Chevron Upstream Europe has successfully bid for the exploration rights in four blocks awarded in the Norwegian 21st Licensing Round.

The blocks are located in the Outer Vøring Basin in the Norwegian Sea, approximately 335 miles (540 kilometers) west of the coast of Bodø, in 6824 feet (2080 meters) of water. Chevron Norge AS has been appointed as the operator with a 40 percent equity in Production License PL598 comprising the blocks 6601/6 and 9 and 6602/4 and 7. The other participants in the blocks are ExxonMobil Exploration & Production Norway AS with 30 percent equity interest, Idemitsu Petroleum Norge AS with 10 percent equity interest and Petoro AS with 20 percent equity interest.

"Chevron is committed to building a focused portfolio of key exploration prospects worldwide," said Guy Hollingsworth, President of Chevron Europe, Eurasia and Middle East. "We view the deep waters of the Norwegian Sea as an area of significant resource potential and this acquisition advances our strategy of pursuing attractive and high-impact growth opportunities." Hollingsworth added, "This is Chevron's second award in the deep water of the Norwegian Sea and as operator, we look forward to working with our partners and bringing our technical expertise and capabilities to this high-potential area."

"Rick Cohagan, Managing Director of Chevron Upstream Europe said, "We are very pleased with the partnership which will complement the strengths of the four companies – Chevron's exploration experience from the West of Shetland and ExxonMobil, Petoro and Idemitsu's significant regional knowledge and long-term operational experience in the Norwegian Sea. We appreciate the strengthened license criteria imposed by the Ministry of Petroleum and Energy in Norway deep water operations and we will continue to apply Chevron's safety standards in all aspects of our operations."