American Eagle Energy Charges Ahead

- American Eagle Energy Charges Ahead

Friday, July 29, 2011
American Eagle Energy Inc.

American Eagle Energy provided a general operations update on the Company's projects. The Company's proposed merger with Eternal Energy Corp. continues to progress, subject to the completion of remaining, standard regulatory and administrative processes. American Eagle's individual project updates include:

Hardy Field, Saskatchewan, Canada

The first development well in the field, Hardy S HZ 1A4-16-4B4-9-4-21W2, was drilled and cased in May, 2011. Completion plans included a 29-stage fracture stimulation of the Bakken horizontal well that placed a total of 429,000 pounds of sand and 6,400 barrels of water in the 1370 meter lateral section. The well is currently being evaluated and is projected to be placed on pump in the first week of August. Additional locations are being considered for the 2011 drilling program pending the outcome of the well testing. The existing producing well, Hardy S Re 2D7-9-3D2-16-4-21W2, continues to average approximately 40 BOPD.

Spyglass Project, Divide County, ND

The Spyglass Project is a Bakken and Three Forks play in northern Divide County, North Dakota. The first closing of the sale of half of the respective working interests in the Spyglass Project by American Eagle, and its proposed merger partner Eternal Energy Corp., to a third party occurred on May 26, 2011. The first transaction netted approximately $7.165 million divided equally between American Eagle and Eternal Energy. The previously announced second closing is now scheduled for August 2, 2011, and relates to the potential sale of an undivided 50% interest in approximately 800 additional net acres for roughly $700,000. In addition, the Company will complete the closing on the sale of an undivided 50% interest in 227 net acres for approximately $200,000 from the original closing. The proceeds from both of these subsequent closings will be divided equally between American Eagle and Eternal Energy

American Eagle and Eternal Energy requested regulatory approval for six 1,280-acre spacing units in an area of the Spyglass Project in which they expect to operate. Well permitting for two company-operated horizontal wells in these spacing units has started with the intention of drilling them in late 2011.

Approximately 5,000 acres of additional leasehold has been acquired in the western portion of the Spyglass project through purchase of two land packages and ongoing leasing efforts.

American Eagle and Eternal Energy have participated in drilling of three outside-operated wells in the second quarter of 2011 that are pending completion. One of these wells, fracture stimulated in mid-July, is the second offsetting Three Forks well to yield average flowing rates above 500 BOPD. The other two are expected to be fracture stimulated in August. American Eagle and Eternal Energy have elected to participate in 4 additional wells, with working interests ranging from 4.19% to 7.03%, operated by Crescent Point Energy Corp., SM Energy Company, and Samson Resources Company that are expected to be drilled in the current quarter.

Glacier Project, Glacier & Toole Counties, MT

The American Eagle Glacier Project is located in Montana portion of the Alberta Bakken play. The Company and its two partners control Bakken/Three Forks rights in slightly over 75,000 net acres.

Two vertical evaluation wells were drilled during the second quarter of 2011.

The FX 81-3 well was drilled to evaluate the Banff, Bakken, Three Forks, Nisku and Devonian Formations by deepening an existing well in the Southwest Cut Bank Sand Unit where American Eagle and its partners, FX Energy and Big Sky Operating, own a controlling interest in approximately 10,000 net acres about 6 to 10 miles southeast of multiple vertical and horizontal wells being completed by both Rosetta Resources, Inc and Newfield Exploration Company. The 81-3 well encountered oil shows in the Banff, Bakken and Three Forks and is scheduled to be fracture stimulated in August.

The FX American Eagle Big Sky 14-29 well was drilled in May as the first earning well associated with a large farm-in block east of the Cut Bank well structurally higher on the Kevin Sunburst Dome. A core of the Bakken and Three Forks encountered excellent oil saturation within a thick section including the Middle Bakken and Three Forks. The 14-29 well is scheduled to be fracture stimulated in August.

A third vertical assessment well is currently expected to be drilled in September, 2011 to evaluate the eastern portion of the Company's leasehold. Depending upon the results of the testing of the vertical wells, one or more horizontal wells are projected to be drilled during the fourth quarter of 2011.

Benrude Project, Roosevelt County, MT

The Benrude Project is high-impact Nisku Formation development project in Montana. A contract with Dawson Geophysical was signed for a focused 3-D seismic survey designed to optimize the structural location for the proposed development well. After acquiring and analyzing the seismic data, the new well is currently expected to be drilled in early 2012.

Richard Findley, the Company's Chief Executive Officer stated, "American Eagle has made significant progress on several of our projects despite the operational constraints associated with the exceptionally wet spring and high activity levels in these areas. The drilling of our Hardy and Glacier wells represents major steps forward for both of these projects and the consummation of several acreage acquisitions bodes well for future growth potential of the Company. The non-operated production results in Spyglass provide significant confirmation of the high potential of the Spyglass Project and furthers our efforts to build solid cash-flow and reserves as we move our focus towards company-operated drilling of our higher interest wells"

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Europa Charges Ahead in Romania

- Europa Charges Ahead in Romania

Wednesday, July 20, 2011
Europa O&G Holdings plc

Europa provided an update on planned operations in Romania for the coming 6 months.

Europa has received both drilling approval and an extension to the license from the Romanian authorities in order to undertake the deepening of the Barchiz-1 exploration well, situated in the EPI-3 Brates Concession (Europa 100%). The deepening of the well is planned to test the exploration target thought to lie beneath the current 1,450m depth of the well.

Aurelian Oil & Gas, the Operator of the Brodina Concession (Europa 28.75%) in northern Romania, has advised partners that the Voitinel gas discovery appraisal well is due to spud on or around October 1, 2011. Subject to the results of this well, a further well is anticipated to be drilled to test the upside to the play in early 2012.

The 2011 seismic program in Romania is underway, with the EIII-3 Cuejdiu area (Europa 17.5%) acquisition over 70% complete. The EIII-1 Brodina program will follow on from this survey. Both of these seismic programs are concentrating on the underexplored thrustbelt oil play.

Managing Director Paul Barrett said, "these Romanian projects are coming together to create a significant amount of activity for the remainder of 2011 and we hope to exit the year with greater reserves and contingent resources."

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Breitling Charges Ahead in Haynesville Play

- Breitling Charges Ahead in Haynesville Play

Tuesday, July 05, 2011
Breitling O&G Corp.

Breitling O&G issued an operational update on the company's recent activity related to the development of various oil and gas properties in its portfolio. Oil and Gas is working very hard to retain all of its viable Haynesville leases in this difficult pricing environment.

Through June 15, 2011 the company participated in 171 new wells, 21 operated and 150 non-operated. The company is running 4 rigs currently. Breitling Oil and Gas expects to drill an additional 112 wells in the second half of 2011. The company has two frac fleets on retainer and had an inventory of ten wells awaiting completion as of June 2011. Breitling Oil and Gas has leaseholds in Texas that are prospective for the Eagleford Shale; leaseholds in Colorado that are prospective for the Niobrara Shale; leaseholds in Oklahoma that are prospective for the Woodford Shale; and leaseholds in Louisiana that are prospective for the Haynesville and Bossier Shales. The company recently hydraulic fractured its fifth Eagleford well in Guadalupe County, Texas and will commence production operations on this well sometime in August 2011. The company is working in partnership with Sandridge Energy on three wells in Gaines County, Texas and is preparing to spud a well with Devon Energy in Hemphill County, Texas.

Breitling Oil and Gas is developing the Haynesville Shale on acreage in Louisiana, and has three gross wells waiting on completion. The company expects hydraulic fracturing capacity to be available in August 2011 and will start completion operations on this backlog at that time.

Breitling Oil and Gas is working in the Woodford Shale in Oklahoma. The company has six prospects it plans to drill during the second half of 2011. It expects production to commence from the field in early 2012.

Breitling Oil and Gas chief executive officer Chris Faulkner stated, "Breitling has done a great job shifting its focus to liquids during a very difficult gas commodity trading price this year." Faulkner added, "Breitling Oil and Gas is carrying very little debt, is involved in no litigation and lawsuits, has a perfect safety record and has positioned itself for triple-digit revenue growth for the foreseeable future."

The company continues driving innovation within its EnviroFrac™ program which the company started in January 2010. Breitling Oil and Gas' EnviroFrac™ calls for the elimination of any additive not critical to the successful completion of the well and determines if greener alternatives are available for all essential additives.

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Samson O&G Charges Ahead in North Dakota, Wyoming

- Samson O&G Charges Ahead in North Dakota, Wyoming

Tuesday, June 14, 2011
Samson O&G Ltd.

Samson O&G provided operational updates.

NORTH STOCKYARD FIELD, NORTH DAKOTA
EARL #1-13H (32% WORKING INTEREST)

The work over to drill out the frac plugs on the Earl #1-13H well has been completed, and a tubing string is being run into the hole so that oil and gas production can be effected on a permanent basis. During the last phase of the work over, the well was flowing whilst pressure control equipment was being used to allow tubing to be run in and out of the hole. While this is not an ideal test condition, the well flowed at an average rate of 1033 BOPD with 1.9 mmcfd of gas during this 6 day period. Cumulative oil production for the well to date is 24,680 barrels.

The Earl #1-13H well is located in Township 154N, Range 99W, Section 13 in Williams County, North Dakota.

RODNEY #1-14H (32% WORKING INTEREST)

The work over rig that has been operating on the Earl well is expected to be moved to the Rodney #1-14H well to drill out the frac plugs in that well.

The Rodney #1-14H well is located in Township 154N, Range 99W, Section 14 in Williams County, North Dakota.

HAWK SPRINGS PROJECT, WYOMING
DEFENDER US 33 #2-29H (37.5% WORKING INTEREST)

Samson is in the final phases of contracting a drilling rig to be used to drill two wells in the Hawks Springs project. The first of these wells is the Defender US 33 #2-29H. This well will be drilled as a 4,300 foot horizontal in the Niobrara B. The horizontal portion of the well will then be fracture stimulated.

The well will be fully funded by our farminee and Samson will retain a 37.5% equity in the well.

The spud of this well is expected the first week of July.

The Defender US 33 #2-29H well is located in Township 25N, Range 63W, Section 29 in Goshen County, Wyoming.

SPIRIT OF AMERICA US 34 #1-29 (100% WORKING INTEREST)

Following the drilling of the Defender well, a vertical exploration well will be drilled to test multiple targets, in the Permian and Pennsylvanian sections. Samson is currently expecting to fund this well in its entirety. The other partners in the well have indicated that they are unlikely to participate for various strategic reasons, rather than on any technical basis. The formal proposal to participate was issued to our partners last week, and they still have the remainder of the 30 day notice period in which to elect into the well.

The Spirit of America US 34 #1-29 well is located in Township 25N, Range 63W, Section 29 in Goshen County, Wyoming.

At the Pennsylvanian level the prospect is a structural trap, mapped as a fault bounded compressional fold.

Within the 3D seismic survey previously acquired by Samson, there are numerous follow ups to these targets if they prove to be productive. Both targets are productive elsewhere in the Denver-Julesburg Basin, and Samson therefore considers them attractive add-ons to the Niobrara project. Critical risks are that the 3D seismic data has yet to be tested and also that the reservoir quality in the Permo-Pennsylvanian section is somewhat of an unknown.

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Caza Charges Ahead at Texas Wells

- Caza Charges Ahead at Texas Wells

Friday, June 10, 2011
Caza O&G Inc.

Caza provided an operational update on the Company's San Jacinto, Bongo and Windham projects.

San Jacinto Property, Midland County, Texas: Caza, as operator, was able to secure a rig ahead of schedule and is currently drilling the Caza Elkins 3401 well on the San Jacinto (Wolfberry) property. The well has reached the intermediate pipe point at 4,670 feet. Caza will run electric logs and cement the 9 5/8ths inch casing prior to drilling ahead. The well should take approximately 25 more days to drill to a total depth of 11,200 feet and is targeting the Wolfberry, Strawn and Devonian formations, which produce oil in the immediate area. All subsequent wells will be drilled to approximately 10,500 feet to test the Wolfberry and Strawn formations. The Caza Elkins 3402 well will be drilled immediately following the Caza Elkins 3401 well with the same rig. The property covers approximately 480 acres with five proven undeveloped locations.

Caza has a 100% working interest before completion and an 85% working interest after completion in the first well with a 63.75% net revenue interest. In all subsequent wells on the San Jacinto property, Caza will have a 75% working interest and a 56.25% net revenue interest.

Bongo Property, Wharton County, Texas: The O.B. Ranch #2 appraisal well, which is a direct offset to the O.B. Ranch #1 discovery well is drilling ahead and is currently on schedule. Intermediate casing was set at 7,600 feet, and the well is currently drilling at 8,811 feet. The Company is pleased to announce that log data has confirmed the presence of natural gas in the Frio formation at approximately 5,530 feet. The well is targeting the Eocene, Cook Mountain interval between 12,400 and 12,900 feet, which is the stratigraphic interval producing in the O.B. Ranch #1 well, with an anticipated total depth of 13,500 feet. Data from this well will be integrated into Caza's ongoing seismic modelling effort in Wharton County, Texas, which will be used to better understand the potential size of the Cook Mountain anomaly at Bongo, as well as other potential targets in the area.

The Company has also completed remedial operations on the O.B. Ranch #1 well. Since completing the operations, the well is producing in line with Company expectations at average daily rates of 92 barrels of oil, 674 thousand cubic feet of natural gas and 37 barrels of water.

Caza has a 45.28% working interest and a 33.51% net revenue interest in the Bongo property and wells.

Windham Property, Upton County, Texas: The Caza 158 #3 well on the Windham property has reached its target depth of 9,824 feet, and Caza has elected to participate in the operator's proposal to complete the well. The operator intends to perforate and fracture stimulate all potentially productive intervals seen on the logs simultaneously within the wellbore, which include the Spraberry/Wolfcamp, Penn and Strawn formations. The Caza 158 #3 will be the fourth well drilled and completed on this property. The Caza 158 #1, 158 #2 and 162 #1 wells are currently at various stages in their respective fracture stimulation programs, but are all producing oil and natural gas.

Caza currently has a 25.0% working interest and an 18.75% net revenue interest in the Windham property and wells.

W. Michael Ford, Chief Executive Officer commented, "We are pleased with the status of our ongoing operations at San Jacinto, Bongo and Windham with all three projects progressing on, or ahead of, schedule. The Company is pursuing a balanced strategy of growing both our production and reserve base in order to build further shareholder value, and these projects should provide continued growth in both these areas along with increased revenues. I look forward to updating the market on the progress of these projects, as well as others, in due course."

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Statoil Charges Ahead at Fast-Track Proj. Visund South

- Statoil Charges Ahead at Fast-Track Proj. Visund South

Friday, May 27, 2011
Statoil

Statoil's first fast-track –project – Visund South – is moving ahead as planned. The seabed template has commenced its journey out to the field located south of Gullfaks in the North Sea.

"We submitted the plan for development and operation of Visund South in January. Now, four months later, we've built the first seabed template for the first fast-track project. We've come a long way towards cutting the time from discovery to production in half," said Kjetel Digre, who is responsible for project implementation in Technology, Projects & Drilling.

The Visund South seabed template was placed on a barge at Grenland Group's yard in Tønsberg last week. It will be installed on the field between the Gullfaks C and Visund platforms in June.

Visund South is expected to come on stream in 2012.

The template is the first to have been built from a standard catalog for subsea equipment.

This will form the basis for the continuing development and use of the standard catalog in the fast-track portfolio.

"We've been working closely with the supplier industry to develop standard equipment for this part of our field development portfolio. This means that we can start to build equipment more quickly and develop smaller finds more efficiently," said Halfdan Knudsen, who heads up the fast-track portfolio on the NCS.

It has taken less than a year to build the Visund South structure from the signing of the contract for subsea equipment with FMC.

Subsea 7 will carry out the actual installation on the seabed.

Visund South field installation will take place at the same time as that on the Marulk development, which Statoil is carrying out on behalf of operator Eni. This will mean increased efficiency and cost savings for both projects.

Statoil's high health, safety and environment (HSE) standards are fully integrated at all fast-track project development stages.

"HSE integration at all fast-track development stages is crucial to our success. I believe that all of our efforts to standardize and industrialize field developments through the fast-track process will bring us a predictability that will impact safety in a positive way," said Digre.

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Gulf Keystone Charges Ahead in Kurdistan Exploration

- Gulf Keystone Charges Ahead in Kurdistan Exploration

Monday, May 23, 2011
Gulf Keystone Petroleum Ltd.

Gulf Keystone provided an update on its activities in the Kurdistan Region of Iraq.

Shaikan-2

Further to the Company's announcement on March 22, 2011, the Shaikan-2 deep appraisal well has now drilled to a depth of 2,655 meters. The well is now in the top most section of the Triassic age formations and the Company is running casing.

Further to the announced testing of the Sargelu/Alan section, which achieved the stabilized flow rate of 8,064 bopd, logs and cores have now been obtained in the Mus and Butmah Jurassic sections.

Four cores totaling almost 30 meters have been recovered from the Mus formation, 23 meters of which had excellent oil shows. An open hole test resulted in a significant flow, although a reliable oil measurement could not be obtained due to technical limitations of the down hole tools. A similar zone on Shaikan-1 achieved 2,250 bopd.

Five cores totaling almost 47 meters have also been recovered from the Butmah formation, 26 meters of which had excellent oil shows. A similar zone on Shaikan-1 achieved 4,650 bopd on test.

This combination of core, log and flow test data indicates extensive oil columns and an impressive similarity between the Jurassic section in Shaikan-2 and the same formations in Shaikan-1 (which achieved a cumulative test rate of over 20,000 bopd from various geological horizons).

The forward plan is to drill through the Triassic section and possibly into the Permian.

After drilling of the well is complete cased hole flow tests in the Jurassic may be undertaken, a practice which worked well on Shaikan-1 during the summer of 2010. This would allow an optimized testing program to be designed which will benefit from all of the information gathered during drilling of the well and equipment to be sourced which will overcome the current technical limitations of the open hole test tools. A similar approach may also be undertaken in the deeper zones but does not preclude earlier open hole testing.

Sheikh Adi-1

The Sheikh Adi-1 exploration well has reached the Triassic and has cut a core in the Kurre Chine A at a depth of 3,293 meters. The core of the Kurre Chine A contains good oil shows and a flow test is to be undertaken shortly.

Prior to reaching the Triassic, logs and cores were obtained in the Jurassic sections, which show hydrocarbon saturations and where 45 meters of net pay have been calculated. Gulf Keystone obtained the following from the Jurassic net pay zones of interest:

• A core totaling almost 13 meters was recovered from the Barsarin/ Sargelu Jurassic section which had moderate oil shows. A test of this zone of interest recovered oil but no reliable flow rate measurement could be obtained due to limited permeability.
• A core of just over 12 meters was also obtained in the Butmah containing good oil shows.

In addition, log data indicates movable oil in the Sargelu/ Alan (obtained in sections deeper than the test zone), Mus and Butmah, all of which would be the target of a future potential test program.

This recent Sheikh Adi-1 well data, along with early results of the 3D seismic interpretation, indicates that the natural fracture system that makes the wells in the Jurassic intervals at Shaikan such prolific oil producers, is significantly less extensive on the footwall of the Sheikh Adi structure. The main significance of this is that the wells in this part of the structure, which are likely to flow oil at low rates, may benefit from acid treatment and artificial fracturing in order to improve well productivity. The Company has already demonstrated with Shaikan-1 and Shaikan-3 that small scale acid treatments can lead to significantly improved production rates.

Similar to Shaikan-2 an extensive cased hole testing program is currently being considered for the Jurassic section of Sheikh Adi-1 after drilling of the well is complete, which may include limited artificial fracturing, depending on equipment availability. This would allow an optimized testing program to be designed which will benefit from all of the information gathered during drilling of the well and equipment to be sourced which will overcome the current technical limitations of the open hole test tools. A similar approach may also be undertaken in the deeper zones but does not preclude earlier open hole testing (as currently being progressed in the Kurre Chine A).

Gulf Keystone analysis indicates that due to the intense flexure of the Sheikh Adi structure a more extensive natural fracture system is likely to be found on the other side of a major reverse fault, to the north of the current well location. A well into this area is being considered.

Shaikan-4

Shaikan-4, second deep appraisal well, 6 kilometers to the north-west of the Shaikan-1 discovery well, is targeted to drill to the top of the Permian. The drilling rig is currently 98% rigged up at the well site, and is expected to spud before the end of May.

Bekhme-1

Bekhme-1, second exploration well on the Akri-Bijeel block operated by Kalegran Ltd. (a 100% subsidiary of MOL), is drilling ahead with 12.25 inch hole at a depth of 1,776 meters, in the upper sections of the Jurassic.

Oil Export

Following a request from the Ministry of Natural Resources of the Kurdistan Regional Government ("KRG"), the Company is preparing to export up to 5,000 barrels of oil per day (bopd) from its Extended Well Test ("EWT") facility at Shaikan. A number of operational, commercial and legal preparations are required in order to be able to implement this request which the Company is currently undertaking. Commencement of the export of oil is still subject to final approval of the KRG.

John Gerstenlauer, Gulf Keystone's Chief Operating Officer commented, "We will soon have four exploration/appraisal wells underway in Kurdistan with further wells expected to spud before the end of the summer. The Company's steady progress in the Shaikan-2 and Sheikh Adi-1 drilling is highly encouraging and we look forward to obtaining more results from these two wells soon. The Company views the recent announcement by the Kurdistan Regional Government confirming release of the first oil export payment to the KRG as an extremely positive development for all the oil producers in the Kurdistan Region of Iraq. This is especially good news for Gulf Keystone since we are preparing to meet the KRG's request to begin oil export at an initial volume of up to 5,000 bopd of crude."

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Voyager O&G Charges Ahead in 2011

- Voyager O&G Charges Ahead in 2011

Tuesday, May 17, 2011
Voyager O&G Inc.

Voyager O&G provided an operational update regarding acreage and drilling activity in the Williston Basin Bakken and Three Forks and the D-J Basin Niobrara plays.

Williston Basin Bakken and Three Forks

In 2011 Voyager has acquired 4,123 net mineral acres at an average price of $1,239 per acre in the Williston Basin targeting the Bakken and Three Forks formations.

Voyager controls approximately 28,000 net acres targeting the Bakken and Three Forks as of May 15, 2011. We anticipate that the industry will eventually drill as many as six wells per 1,280 acre unit which would equate up to 131 net wells on our current leasehold. Most of the newly acquired acreage is located in Richland County, Montana where Brigham Exploration announced the Johnson 30-19 #1H discovery. The Johnson well was reported to produce 2,962 barrels of oil equivalent "BOE" during its early 24-hour peak flow back period.

D-J Basin Niobrara

In 2010 Voyager acquired approximately 24,000 net mineral acres for $315 per acre with operating partner Slawson Exploration. Currently, Voyager owns 14,200 net acres targeting the Niobrara formation. In 2010 and 2011, Slawson and Voyager have drilled six wells. The Bushwacker 1-24H had geo-steering issues and has not produced. The Moonshine #1-36H had a high IP of 650 barrels per day and is currently on pump producing 25 barrels of oil per day. The Outlaw #16-11-66H was completed and is currently producing 5 barrels of oil per day. The Joker #1-36H is currently producing approximately 150 barrels of oil per day. The Smuggler #1-16H was recently completed and is still experiencing flowback. Smuggler's approximate daily production is currently 60 barrels of oil per day at an early flowback stage. The Birds of Prey #36-10-61H was completed recently. Slawson is cleaning the wellbore and testing the well. While the results of the three most recent wells are promising, further drilling in the short term is undetermined.

2011 Drilling and Production Guidance

Voyager has participated in approximately 40 gross wells in 2011, bringing the total well count to 58 wells targeting the Bakken/Three Forks formations. Voyager has also spud 3 gross Niobrara wells in 2011 targeting the Niobrara formation. Currently, Voyager has approximately 1.80 net Bakken/Three Forks wells drilling, completing or producing and 2.5 net Niobrara wells producing or completing. Voyager expects to participate in 70 gross wells and 6.0 net wells in 2011. Based on our current and forecasted drilling activity, Voyager expects to average 700 barrels of oil equivalent "BOE" per day by the end of 2011. The drilling and production guidance is in line with previous estimates.

2011 Capital Expenditures

In 2011, Voyager expects to spend $42 million in drilling capital expenditures targeting the Bakken and Three Forks in the Williston Basin. Voyager expects to devote the additional capital to strategic acreage acquisition targeting the Bakken and Three Forks using cash-on-hand of approximately $41 million and cash flow from operations.

Management Comment

J.R. Reger, Chief Executive Officer of Voyager Oil & Gas commented, "We are expanding our acreage in the Williston Basin and expect to achieve our acreage goals for 2011. The increase in drilling activity, especially in Montana, will also help us achieve our drilling goals. Voyager will continue to execute on our strategy of acquiring Williston acreage for its accretive value and convert to production while maintaining low overhead."

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Cabot Charges Ahead in US Shale Plays

Cabot Charges Ahead in US Shale Plays

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

Cabot O&G announced continued achievement of milestones in the Marcellus, drilling success in the Eagle Ford and agreements in principle for its Haynesville joint venture effort. "We continue to build momentum in our two areas of focus for 2011," said Dan O. Dinges, Chairman, President and Chief Executive Officer. "Additionally, we have streamlined our east Texas operation with arrangements that are accretive to Cabot."

North Region

In the Marcellus, the Company ended the quarter producing at a curtailed rate of 320 Mmcf gross per day. This represents a production increase since year-end of 90 Mmcf per day as the benefits of the Lathrop expansion began to show up in production.

Contributing to these totals was the completion of several multi-well pads that were turned in line, albeit at curtailed rates. Cabot's first six-well pad added 51 Mmcf gross per day, although infrastructure limits are restricting its full productive capacity. A two-well pad with 29 completion stages is producing 36 Mmcf gross per day. "The productivity we have seen repeatedly for the last 18 months provides a great deal of confidence in our program," commented Dinges. "Tempering this excitement is the 'blocking and tackling' in the trenches to get the infrastructure in place timely to exploit these results."

In regards to the infrastructure build-out, all seven compressors at Lathrop are installed, and the Company is working on additional dehydration and more piping to reach full functionality. This effort will afford Cabot 450 Mmcf per day of takeaway capacity from this station and together with the Teel station provides a total of 550 Mmcf per day of capacity. "In conjunction with this growing capacity of Lathrop, we have identified and secured markets throughout the summer that will allow us to utilize a portion of this additional capacity," stated Dinges. "However, we will still have excess production capacity until the Springville pipeline to Transco becomes operational, which is scheduled during the third quarter."

To highlight the productivity of Cabot's Marcellus acreage, last week Cabot achieved 100 Bcf of cumulative production in Susquehanna – a feat that took just under three years. At the current production rate, it will take less than one year to achieve the next 100 Bcf of cumulative production.

In other North Region news, the Pennsylvania Department of Environmental Protection (PaDEP) has requested the industry to stop disposing of frac flowback fluids at certain approved sites. "We fully support this action by the PaDEP and the Pennsylvania administration," said Dinges. "Since late 2009, we have been recycling 100 percent of our frac fluid returns. We are committed to performing all our operations using best practices and endorse continuing improvements in those practices to minimize impact on the environment and communities in which we operate."

"Additionally, we converted our drilling operation to utilize a closed loop system by the fourth quarter of 2010. This eliminates the need for open pits at drill sites and significantly enhances our fluid management capabilities," added Dinges.

South Region

In the Eagle Ford shale, the Company added three more successful operated completions with 24-hour initial production rates ranging from 345 to 958 barrels of oil per day equivalent. "This range of results highlights the variability as we continue to evaluate completion techniques in the early stages of development in this play," stated Dinges. "Presently we have three more wells drilled, cased and in the queue for completion in our Buckhorn area."

At the Haynesville area, Cabot has signed two deals with industry peers that provide the Company with a carried interest in the initial well for 24 units. In the third deal, Cabot has elected to sell several non-operated units producing 4 Mmcf per day. This deal is signed and under the normal due diligence evaluation. Closing is scheduled for early May with approximately $50 to $55 million in proceeds expected from all these transactions.

"We are pleased with the joint venture outcome as we accomplished our goal of being carried by selling one-third of our acreage and eliminating the need for near term capital allocation in this area," said Dinges.

Noble Energy 1Q Earnings Fall on Charges

Noble Energy 1Q Earnings Fall on Charges

Thursday, April 28, 2011
Noble Energy Inc.

Noble reported first quarter 2011 net income of $14 million, or $0.08 per share diluted, on revenues of $899 million. The Company's first quarter 2010 net income was $237 million, or $1.34 per share diluted, on revenues of $733 million. First quarter 2011 net income includes items that are not typically considered by analysts in published estimates. Excluding the impact of these items, which were primarily unrealized commodity derivative losses and a rig standby charge in the deepwater Gulf of Mexico, first quarter 2011 adjusted net income was $240 million, or $1.35 per share diluted. Adjusted net income for the first quarter of 2010 was $138 million, or $0.78 per share diluted.

Discretionary cash flow for the first quarter 2011 was $576 million, compared to $447 million for the similar quarter in 2010. Net cash provided by operating activities was $484 million, and capital expenditures were $545 million.

Key highlights for the first quarter 2011 include:

• Increased sales volumes 9 percent versus the first quarter 2010 to 215 thousand barrels of oil equivalent per day (MBoe/d)
• Drilled 12 additional horizontal Niobrara wells in the DJ basin, 9 of which were located in the Wattenberg field
• Received industry's first drilling permit post-moratorium to resume deepwater Gulf of Mexico drilling at the Santiago prospect
• Finalized field development drilling and well completions at the Aseng oil project offshore Equatorial Guinea
• Completed seismic acquisition of 3D data offshore Nicaragua and 2D data offshore France
• Issued $850 million of 30-year unsecured notes and enhanced liquidity position to over $3.5 billion between cash and available credit

Charles D. Davidson, Noble Energy's Chairman and CEO, commented, "Noble Energy's first quarter has delivered a great start to 2011. With high liquid volumes and pricing, combined with good cost control, the business generated very strong cash flow. Our balance sheet was further fortified with a successful debt offering, and as a result, the Company is in a very strong position. Operationally, we remain focused on delivering production and cash flow growth from our base of discovered resources and major project developments. We are excited to have active investment programs ongoing in all four of our core areas, including development of our major projects, as well as exploration, appraisal, and development drilling underway throughout our global portfolio."

Total sales volumes for the first quarter 2011 averaged 215 MBoe/d. Approximately 40 percent of the Company's sales volumes were liquids, with 31 percent international natural gas, and the remainder U.S. natural gas. Production volumes were 216 MBoe/d.

The Company's international sales volumes were 101 MBoe/d, a 25 percent increase versus the first quarter 2010. Lower facility maintenance downtime and higher liquid liftings in Equatorial Guinea resulted in a 15 MBoe/d increase. Natural gas sales in Israel were up 61 percent to 140 million cubic feet per day (MMcf/d), with the higher volumes attributable to increased overall demand for natural gas in power generation, as well as the impact of lower competing imports. In the North Sea, strong performance and additional deliverability at Dumbarton and Lochranza accounted for increased oil volumes. The Company's 2010 volumes included 30 MMcf/d of natural gas in Ecuador, where the Company's production sharing contract was terminated in late 2010.

Noble Energy's U.S. volumes were 114 MBoe/d for the first quarter of 2011. Winter storms reduced the Company's onshore U.S. volumes in the first quarter 2011 by nearly 2 MBoe/d on average. In addition, U.S. volumes do not include the approximately 6 MBoe/d of Mid-continent and Illinois basin oil assets which were sold in the third quarter 2010. In the DJ basin, first quarter 2011 volumes averaged over 56 MBoe/d, up 12 percent from the first quarter 2010. The increase is primarily attributed to ongoing vertical and horizontal drilling at Wattenberg, as well as the impact of the asset acquisition that closed in the first quarter last year. The Company experienced natural declines in various onshore natural gas plays and the deepwater Gulf of Mexico versus the first quarter last year.

Global crude oil pricing averaged $97.15 per barrel for the first quarter 2011, up 31 percent from the same period last year. Natural gas realizations in the U.S. averaged $4.07 per thousand cubic feet (Mcf), down from $5.46 per Mcf in the first quarter 2010. In Israel, natural gas realizations continue to benefit from strong global liquid markets, with pricing averaging $4.19 per Mcf. Natural gas liquid pricing in the U.S. averaged $47.80 per barrel, or 52 percent of the Company's average U.S. crude oil realization.

Total production costs per barrel of oil equivalent (Boe), including lease operating expenses, production and ad valorem taxes, and transportation were down 6 percent from the first quarter of 2010 to $7.34 per Boe. Lease operating expense was $4.75 per Boe and depreciation, depletion, and amortization was $11.42 per Boe. The Company's mix of production, with higher volumes in low-cost areas such as Equatorial Guinea and Israel, contributed to lower per unit rates versus the first quarter last year.

Exploration expense for the first quarter 2011 included $26 million of seismic expenditures, including data acquisitions in the DJ basin, offshore Nicaragua and offshore France. General and administrative expenses were up primarily related to increased staffing for the development of the Company's major development projects. The Company's adjusted effective tax rate and deferred portion were both 34 percent for the first quarter 2011.

Other operating income/expense includes an $18 million rig standby charge incurred as a result of the time required to obtain deepwater Gulf of Mexico drilling permits post the moratorium. Included in other income/expense for the first quarter 2011 is a $10 million deferred compensation charge relating to the quarterly value change of Noble Energy stock held in a benefit program.

Credo Charges Ahead with 'Aggressive Drilling Program'

Credo Charges Ahead with 'Aggressive Drilling Program'

Tuesday, April 26, 2011

Credo Petroleum Corp.

Credo updated its drilling activities.

Marlis E. Smith, Jr., President and Chief Executive Officer, stated, "Credo is continuing to execute the most aggressive drilling program in the Company's history which is projected to drill 57 wells in fiscal year 2011, a 67% increase compared to last year. In addition, the average working interest retained by Credo is 47% in 2011, up 52% over last year. This report includes initial results from our new oil drilling play in southwest Nebraska where well tests and drilling data indicate that we have hit the first three out of four wells. We also continue to be excited about our Bakken, Kansas and Texas Panhandle drilling programs. We expect these diversified, Mid-Continent oil drilling plays to add substantial production and reserves during 2011."

FIRST OIL PRODUCTION ESTABLISHED IN NEBRASKA

Credo has established its first oil production in the State of Nebraska with the successful re-entry of an abandoned well in the southwestern portion of the state. For proprietary business reasons, the name and location of the well is being withheld at this time. The well tested at an initial rate of approximately 50 barrels of oil per day. Oil is being produced from a previously bypassed Lansing Kansas City interval at 4,000'. The Company believes there is potential to conduct offset drilling to the new discovery. Credo owns a 70% working interest and is the operator.

Also in southwestern Nebraska, Credo has set production casing and commenced completion operations on a second re-entry well which the Company also believes contains bypassed Lansing Kansas City production and reserves. Credo owns a 70% working interest and is the operator.

The Company has drilled and set pipe on another well which electric logs and drilling data indicate is productive. Completion operations will begin shortly. Credo owns a 70% working interest and is the operator.

A third re-entry well is currently drilling. Results from the new wells will be released in the near future.

Credo has assembled approximately 40,000 net acres in Nebraska, and is continuing an aggressive shallow oil prospect generation program to extend the Company's Kansas exploration success into Nebraska on the Central Kansas Uplift. Prospects are generated utilizing a combination of detailed subsurface geology with advanced 3-D seismic technology to identify highly economic shallow oil targets.

FIVE NEW NORTH DAKOTA BAKKEN WELLS COMING ON LINE

The Company has recently added five new horizontal Bakken wells to its growing list of Bakken producers on the Fort Berthold Reservation, bringing the total to eight wells. While Credo's working interests in the new wells are small, ranging from 1% to 3%, its share of initial production from the four wells is about 140 BOEPD (barrels of oil equivalent per day). Three of the five wells have been completed and had excellent initial production rates of over 1,500 BOEPD. The fourth new producer, the Enerplus Ethan Hall, reported an initial production rate of 3,732 BOEPD. This marks the highest initial rate of any Credo Bakken well drilled to date and ranks among the highest rates among all Bakken wells. In addition to the four new producers, one new well is in its final stages of completion for production.

Credo's 2011 North Dakota Bakken drilling schedule includes six wells where its interest will range from 12% to 20%. These wells will be drilled in the same area as the Company's small working interest Bakken producers and are expected to achieve similar results. They will be operated by large independents and a major oil company.

"Initial production rates and long term well performance continue to improve on the Reservation," Smith said. "As drilling and production have ramped up on the Reservation, it has become one of the 'hot spots' for Bakken horizontal drilling."

TEXAS PANHANDLE HORIZONTAL OIL PLAY GAINING MOMENTUM

Next month Credo will commence drilling its third horizontal Tonkawa well in Lipscomb County, Texas. The 7,500-foot vertical depth James Lee 74-2H is projected to have a 4,400 foot horizontal lateral. Credo owns a 35% working interest. The new well will be drilled on the 320 acre spacing unit adjacent to the Bussard Cameron 74-1H. The Bussard Cameron is still cleaning up as frac fluid recovery continues. The well exhibited good quality sand and very encouraging shows, and its oil cut continues to increase. Credo owns a 32% working interest in the well.

Credo's first horizontal Tonkawa well, the Bill 141H, located approximately one mile from the Bussard-Cameron, was drilled last year and is currently producing approximately 200 BOE per day. Credo owns a 22% working interest in the well.

The Company owns an average 33% interest in about 3,000 gross acres in Lipscomb and Hemphill Counties, Texas. In addition to its two new horizontal wells, the Company operates 12 vertical wells producing from various formations at depths of 7,000 to 11,500 feet. The Company believes that its Texas Panhandle acreage also has excellent Cleveland horizontal potential.

MANAGEMENT COMMENT

Marlis E. Smith, Jr., Chief Executive Officer stated, "We are off to a good start in Nebraska with three indicated producers out of four wells drilled. I am confident that the excellent results we have achieved in Kansas can be extended to the adjoining, oil-bearing formations in Nebraska. Also, our large working interests (50% and greater) will be quite impactful to Credo in this excellent oil price environment.

"I am also pleased with our progress in the Texas Panhandle and North Dakota Bakken horizontal oil drilling plays. Credo is beginning to build critical mass with the drilling of our third horizontal Tonkawa well in the Texas Panhandle, along with our upcoming, larger-interest North Dakota Bakken wells. These projects will have a major positive influence on 2011 production and reserves."

Kodiak Charges Ahead in Three Forks, Bakken Development

Kodiak Charges Ahead in Three Forks, Bakken Development

Tuesday, April 19, 2011
Kodiak O&G Corp.

Kodiak O&G provided an interim corporate update.

Interim Operations Update

Kodiak currently operates a two-rig-drilling program in the Williston Basin and anticipates taking delivery of a third rig within the next two weeks. The Company is currently negotiating to contract a fourth rig for delivery in the fourth quarter of 2011. Additionally, Kodiak controls a 40% to 50% working interest in wells being drilled by a non-operated drilling rig as part of its Dunn County, N.D. area of mutual interest with ExxonMobil.

Bakken/Three Forks Development: McKenzie County, N.D. (37,000 gross and 27,000 net acres) - Bakken producer records initial production (IP) rate of 3,042 BOE/d

The Koala #9-5-6-5H well [Kodiak operated – 95% working interest (WI) /78% net revenue interest (NRI)], an 8,967-foot horizontal lateral, was successfully completed in 24 stages in the middle Bakken Formation. During a 24-hour period, the well recorded production of 2,526 barrels of oil (BO) and 3.10 million cubic feet of natural gas (MMcf), or 3,042 barrels of oil equivalent (BOE). Kodiak completed the 24-hour production test utilizing an average 38/64" choke with average flowing casing pressure of 1,800 psi. Since coming online, the well had cumulative production of 7,340 BO and 7.5 MMcf, or 8,590 BOE in the first five days of production while continuing to recover frac load during well flowback.

Three Forks producer records IP rate of 2,327 BOE/d

The first well completed on the pad, the Koala #9-5-6-12H3 [Kodiak operated – 95% WI/78% NRI], a 9,171-foot horizontal lateral, was successfully completed in 22 stages in the Three Forks Formation. During a 24-hour period, the well recorded production of 1,919 BO and 2.45 MMcf, or 2,327 BOE. Kodiak completed the 24-hour production test utilizing a 36/64" choke with average flowing casing pressure of 1,400 psi. Since coming online, the well had cumulative production of 8,251 BO and 10.57 MMcf, or 10,012 BOE in the first nine days of production while recovering the frac load during well flowback. Koala #9-5-6-12H3 production was temporarily curtailed due to surface facility constraints while completion work on the second well on the pad, the Koala #9-5-6-5H, was completed.

The Three Forks well, the Koala #9-5-6-12H3, was drilled 700 feet from the Bakken well, the Koala #9-5-6-5H, in an ongoing effort to evaluate communication between the middle Bakken and the Three Forks Formation. By successfully completing the Koala #9-5-6-12H3 well, Kodiak now demonstrates the productive potential of the Three Forks Formation as an oil-prone reservoir system on this part of its McKenzie County core operating area.

The Company currently has one well, the Koala #3-2-11-14H, awaiting completion in McKenzie County as part of a two-well pad, and is drilling ahead on the Koala #3-2-11-13H well [both Kodiak operated – 50% WI/41% NRI]. These two well bores are being drilled approximately 1,300 feet apart in the middle Bakken in an effort to test well bore density within the drilling unit. These wells are projected to be completed in the second quarter 2011. Once the well is down, the rig will be moved to drill the Koala #2-25-36-15H [Kodiak operated – 66% WI/53% NRI], the first well of a two-well pad.

Bakken/Three Forks Development: Dunn County, N.D. (56,000 gross and 34,000 net acres) - Drilling and Completion Activity

Kodiak currently has two gross wells (1.0 net) which are expected to be completed in the second quarter 2011. Additionally, Kodiak has drilled and is awaiting completion of three gross wells (1.95 net wells) off of an existing four-well pad, and is currently drilling the final well from the pad, the Skunk Creek (SC) #2-24-25-16H [Kodiak operated – 97% WI/79% NRI]. Completion operations are projected to commence on this four-well pad in the third quarter 2011. Once drilling is completed on the four-well pad, the rig will move to the SC #12-10-11-9H well [Kodiak operated – 97% WI/79% NRI], the first of a two-well pad.

On its non-operated portion of lands in Dunn County, Kodiak has participated in the drilling of two gross wells (1.0 net well) that are currently waiting on completion. Two additional wells are currently being drilled from a two-well pad in which Kodiak has a 50% and 44% WI (41% and 36% NRI).

In conjunction with its first quarter 2011 operational and financial results news release expected to be issued after the close of trading on May 5, 2011, the Company intends to furnish a comprehensive operations update, including its per-well tabular data that includes working interest, net revenue interest, lateral length and 30/60/90/180 and 360-day production rates.

Dedicated Fracture Stimulation Team

The Company has formally executed a two-year agreement with its pressure-pumping service company whereby Kodiak will have a dedicated crew for 14 days per month, reconciled on a quarterly basis, commencing in the third quarter 2011.

Management Comment

Commenting on ongoing operations, Kodiak's President and CEO Lynn A. Peterson said, "Our drilling and completion operations in both McKenzie and Dunn counties continue to move forward. We are very pleased with the results from the two-well pad in McKenzie County, our first two operated wells in this area. The well results are important in that we have now demonstrated the productive potential in the Koala project area for both the middle Bakken and Three Forks Formations. Equally important is that we have drilled these high-working-interest wells in a manner that will allow us to evaluate communication between the two formations, as we obtain additional production history.

"The execution of a formal agreement with our pumping service company should provide continued improvement in the timing of our well completions. Utilization of pad drilling allows for successive completions improving our efficiencies through reduced time for equipment mobilization and demobilization between wells. We look forward to expanding this agreement to include more days as we move into the second half of the year and bring our fourth drilling rig under contract."

Borrowing Base Re-determined at $75 Million

Kodiak also announced that is has completed its semi-annual re-determination of its borrowing base under its $200 million senior secured revolving line of credit facility with Wells Fargo Bank, N.A. As a result, the Company's borrowing base has been increased to $75 million from the previously available $50 million. There are currently no borrowings under the facility and Kodiak is in compliance with the financial covenants under the credit facility.

"The increase in our borrowing base is reflective of our continued success in the Williston Basin," said James Henderson, Kodiak's Chief Financial Officer. "Our cash balances, operating cash flow and expanded revolving line of credit provide the Company with liquidity and balance sheet flexibility as we execute on growth-oriented development drilling in 2011 and into 2012."

Sefton Expects Improved Flow Rates at Tapia, Charges Ahead in Ks.

Sefton Expects Improved Flow Rates at Tapia, Charges Ahead in Ks.

Wednesday, April 06, 2011

Sefton Resources Inc.

Sefton updated on trading for its oil production assets in California and gas infrastructure assets in Kansas.

 

California

Sefton's 100% owned subsidiary TEG Oil & Gas USA, Inc ("TEG USA") is the operator of its operations in California at Tapia and Eureka Canyon.

As was announced on March 1, 2011, TEG USA commenced its pilot steam flood operations at the Hartje #10 well in March and is currently injecting steam at about 35% capacity which will be increased to approximately 75% to 80% capacity (normal operating levels) over the coming weeks. At that point, approximately 700 to 780 bbl of steam will be injected per day into the center of the oilfield.

TEG USA averaged approximately 123 bbl per day during March, which is regarded as the baseline primary oil production level and it is anticipated with the injection of steam into the Hartje #10 well this will rise as it did for the pilot cyclic steam program last year.
Local California oil is currently posting at a 4% premium to NYMEX futures, rather than the more typical 7%-9% deficit. This spread has averaged a positive $4.20, for a posting of just over $107/bbl average for the month of March.

The preparatory work for the steam flood sensitivity geologic modeling will be completed in early April ready for Dr. Farouk Ali to commence his steam flood modeling work, which will last several weeks and is expected to be completed in May 2011.

 

Kansas

Sefton's Assets in Kansas are in Leavenworth County, including the Vanguard pipeline and the recently acquired LAGGS pipeline, and Anderson County, being the Waverly facility. Additional assets along the LAGGS pipeline are currently undergoing due diligence and are expected to close by 30 April 2011.

 

Leavenworth County

Repairs to all of the 8" and the bulk of the 6" and 4" segments of the Vanguard Pipeline system have been completed and tested. Strategically, the 8" portion of the system is the most critical segment of the system and this segment will see the first volumes in 2011 with initial revenue from the Company's 100% owned subsidiary, TEG Midcontinent Inc and a third party expected to accelerate during the coming year
Testing and activation of the LAGGS pipeline have begun. Three areas for repair have been identified. The repairs will be made in the order of their operational importance.

It is anticipated that later in 2011 the two systems, Vanguard and LAGGS, will be connected together and, as a result, it will be possible to move gas to market at two separate points and to two separate markets. This will give Sefton the possibility of moving gas to the higher return market from month to month.

 

Anderson County

The Waverly facility consists of over 10 miles of pipeline, fifteen well bores, two salt water disposal wells and a dehydration facility capable of processing 10 million cubic feet of gas per day. The Waverly facility has an inactive tap with Post Rock (an interstate pipeline company) at the dehydration facility. Reactivation of the tap is expected to take place in early 2012.

Jim Ellerton, Acting Chairman and CEO of Sefton Resources said, "The Company is progressing well - we expect improved flow rates at Tapia and the prospect of still further increases once we can implement the recommendations of Dr. Farouk Ali's report. At the same time, we have continued to make progress in Kansas and this will continue further in the coming months so that we can activate the assets as soon as is possible. We are cash generative, profitable and actively increasing our investor profile and believe this will position us well for the future."