TAG Enters Farmout Agreement with Apache in NZ East Coast Basin

- TAG Enters Farmout Agreement with Apache in NZ East Coast Basin

Friday, September 02, 2011
TAG Oil Ltd.

TAG Oil reported that it has entered into a farmout agreement with Apache to explore and potentially develop oil and natural gas resources in the East Coast Basin of New Zealand.

Apache has agreed to conduct a multi-phased exploration, appraisal and potential development program within TAG's East Coast Basin exploration permits PEP 38348, PEP 38349 and PEP 50940. The Permits comprise in excess of one million prospective acres of onshore oil and gas opportunities located on the southeast portion of the North Island. TAG currently holds a 100% working interest in the properties.

Apache has agreed to pay for a portion of TAG's direct costs incurred to date, as well as providing TAG a full carry on three phases of operations to a maximum agreed cost in each phase. If the agreed cost is exceeded in any phase, or if additional operations are conducted, Apache will pay a majority share of any drilling or seismic costs in the specified percentages set out in the Agreement.

Each phase of operations will include an aggressive program of both 2D / 3D seismic and drilling with Apache earning an increasing interest in the Permits as follows:

• Phase 1: Apache will earn a 50% interest in 5,120 acres of the Permits after operations are conducted and by committing to Phase 2.
• Phase 2: Apache will earn a 25% interest in the Permits after operations are conducted and by committing to Phase 3.
• Phase 3: Apache will earn a 50% interest in the Permits after operations are conducted and by committing to Phase 4 operations.

Subject to certain conditions, the planned exploration work program will be conducted over the next four years. Seismic operations will start in 2011 with drilling to commence in 2012.

Apache will be the Operator for all activities undertaken pursuant to the Agreement, excluding the initial four vertical wells of the work program that TAG will operate with Apache's assistance. Apache will spend up to $100 million upon completion of Phase 3 to earn a 50% interest in the Permits. At the end of Phase 3 operations TAG will remain as operator of the Permits. If Apache commits to Phase 4 operations, all costs will then be shared equally between Apache and TAG going forward.

TAG Oil CEO, Garth Johnson, commented, "TAG Oil is excited and honored to partner with Apache in the East Coast Basin to achieve a common goal of converting the potential of the East Coast Basin to proven reserves with integrity, respect and excellence in a safe and environmentally responsible manner. We are planning an aggressive exploration program with Apache with a starting date of September 2011 to initiate seismic acquisition with drilling to begin in early 2012"

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ConocoPhillips Finds New Leaks Off China's Northern Coast

- ConocoPhillips Finds New Leaks Off China's Northern Coast



Aug 26, 2011

ConocoPhillips (NYSE:COP) has found seven new leaks off China's northern coast.

According to the State Oceanic Administration's North China Sea branch, ConocoPhillips found the new leaks near the Platform C of 19-3 Oilfeld in Bohai Bay.

Last week, the company reported nine leaks near the same platform, and is facing legal action for the spills.

ConocoPhillips (NYSE:COP) has a potential upside of 28.9% based on a current price of $64.24 and an average consensus analyst price target of $82.8.

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BP, Coast Guard Find No Sheen near Macondo

- BP, Coast Guard Find No Sheen near Macondo

Friday, August 26, 2011
BP plc

On Aug. 25, 2011, BP confirmed through a standard visual wellhead inspection that there is no release of oil from the Macondo well (MC252).

In addition, BP also conducted a visual inspection of the Macondo relief well confirming the same result.

Remotely Operated Vehicle (ROV) video inspection was conducted in the presence of representatives from the Gulf Coast Incident Management Team (GCIMT) (MC252 Unified Command) located in New Orleans. GCIMT members watching the live video feed included representatives of the US Coast Guard, the Bureau of Ocean Energy Management, Regulation and Enforcement, and representatives from the states of Louisiana, Mississippi and Florida.

The inspection was prompted by press reports that sheens of oil observed in the vicinity were from the Macondo well. The Macondo well was capped on July 15, 2010 and permanently killed by sealing the well and annulus with cement on Sept. 19, 2010. The well was later plugged and abandoned with the approval and oversight of the US government.

During the course of inspecting both wellheads, small, intermittent bubbles were observed emanating from cement ports at the base of the wellheads. These observations are consistent with testing and sampling performed last year that detected nitrogen bubbles, a residual byproduct of the nitrified foam used in setting the wells’ surface casing cement.

BP and the US Coast Guard have conducted multiple surveys of the area in recent days and found no evidence of oil sheens in the Macondo vicinity.

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$5 Billion in Claims Paid Out By BP For Gulf Coast Damage

- $5 Billion in Claims Paid Out By BP For Gulf Coast Damage



Aug 23, 2011

"BP says it has paid out $5 billion dollars of the $20 billion set aside for the recovery efforts involved in the Gulf of Mexico spill last year. The pay out is going to Gulf Coast businesses and residents for damages caused by the catastrophe.

According to a summary by the Gulf Coast Claims Facility, which took over the claims process from BP last August, has approved 38% of the 947,892 claims submitted.

The enormous majority of the claims paid have gone to five states. Residents in Florida have been paid $2 billion; more than any other state while residents of Louisiana were paid $1.5 billion. Recipients from Alabama, Mississippi and Texas round out the top five, respectively.

BP (NYSE:BP) has a potential upside of 41.3% based on a current price of $39.44 and an average consensus analyst price target of $55.74."

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Rep. Gardner Bill to Help Oil Cos Drill Off The Coast of Alaska Slate

- Rep. Gardner Bill to Help Oil Cos Drill Off The Coast of Alaska Slate

Monday, June 20, 2011
Greely Tribune, Colorado
by Nate A. Miller, Greeley Tribune, Colo.

U.S. Rep. Cory Gardner is the driving force behind legislation slated for a vote in the House this week that would make it easier for oil companies to drill off the coast of Alaska.

"Energy security and job creation is very important to me," the Republican said. "This bill accomplishes both goals."

The bill, H.R. 2021, would streamline the process for air permits on deep-water drilling operations off the coast of the U.S., with the exception of the Gulf of Mexico, which is controlled by the Department of the Interior. It also would require the Environmental Protection Agency to make a ruling on permit requests within six months.

Fort Collins resident Gary Wockner, who is the Colorado program director of Clean Water Action, said the bill is misguided.

"This bill will increase polluters' profits at the expense of public health and the environment," he said.

While it may seem strange for a Colorado congressman to take up the cause of offshore oil drilling in Alaska, Gardner, who serves on the House Energy and Commerce Committee, said it's a good fit.

"We need an all-of-the-above energy policy in this country that lessens our dependence on Middle Eastern oil," he said. "Whether it's natural gas produced in Weld County or oil produced in our deep-water reserves. We need to be doing everything we can to help reduce the price of gasoline and to help ween ourselves off of Middle East oil."

Gardner said permits to drill off the coast of Alaska have become stuck between the EPA and the Environmental Appeals Board, which the EPA created to address administrative appeals involving the major environmental statutes the EPA administers.

"Congress said these permits had to be approved or denied within a limited time frame. The EPA created a bureaucracy without Congress that has delayed some of these permits by as much as six years," he said. "It's the EPA end-run around Congress that's hurting our energy independence."

Gardner's legislation would remove the duplication created by the EPA and appeals board permitting process.

In testimony last month before the subcommittee on Energy and Power of the House Committee on Energy and Commerce, EPA assistant administrator for air and radiation Regina McCarthy said the appeals board ensures all parties are heard and often actually makes the process more efficient.

"Rather than adding a step, the board usually serves as a cheaper, faster, more expert substitute for judicial review," she said. She used the example of a group of subsistence fisherman concerned that an EPA permit didn't address their concerns about air pollution. "They would not be required to hire a lawyer; they could attend oral arguments via video conference; and they would know that their concerns were being heard by experts."

She also said offshore drilling operations can have very real impact on air quality, and it's important to ensure effective, efficient oversight of the operations.

Gardner said the permitting process gives ample time for public comment without the added bureaucracy of the appeals board. He said the permits can be held up even when there aren't health concerns. He gave the example of a Royal Dutch Shell permit for Alaska drilling which he said the EPA held up for six years, even though EPA head Lisa P. Jackson said health concerns weren't an issue.

Gardner estimates the measure, if it becomes law, would create 50,000 jobs across the country -- including some in Colorado -- and help ease the pressure at the pump for drivers by allowing more than 1 million barrels of oil a day to be pumped from Alaska.

Wockner said Gardner should focus on energy solutions Colorado has to offer.

"Rep. Gardner should be worrying about clean energy jobs in northern Colorado, not polluters' profits in Alaska," he said.

Copyright (c) 2011, Greeley Tribune, Colo.

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Exxonmobil to Start Exploration Offshore Vietnam Next Month

Exxonmobil to Start Exploration Offshore Vietnam Next Month

Thursday, March 31, 2011
Asia Pulse Pte. Ltd.

ExxoMobil will start its first exploratory drilling off the central coast of Vietnam late next month.

The decision was agreed upon at a city on March 29 between leaders of the People's Committee of Da Nang City and representatives from ExxonMobil Exploration and Production Vietnam Ltd.

The drilling will be conducted at block 119 on the continental shell offshore Quang Ngai Province and Da Nang City. Phung Tan Viet, Vice chairman of the Da Nang People's Committee, asked the company to strictly guarantee technical requirements to avoid environmental pollution. The two sides also discussed plans to ensure safety during oil-rigs construction.

Viet also ordered the city's Department of Agriculture and Rural Development to inform fishermen not to use the exploration area during the 40 days of drilling.

According to reports from state-owned Vietnam Oil and Gas Group PetroVietnam, Vietnam's crude oil reserve in 2010 was estimated at 4.4 billion barrels. The crude oil and gas exploration output in 2010 reached 15.1 million metric tonnes and 9.4 billion metric tonnes, respectively.

Strike Preps for Testing at Sadie Well

Strike Preps for Testing at Sadie Well

Thursday, March 31, 2011
Strike Energy Ltd.

Strike advised that production casing has been set in preparation for testing at the Sadie-1 well at the onshore Homeplace prospect in the Gulf Coast, Texas, USA.

Gas shows encountered while drilling and subsequent wireline logging indicate potential gas pay intervals in the main Wilcox Formation objective.

The current plan is to test the well direct to sales. Options to tie into nearby pipelines are currently being investigated. It is anticipated that pipeline installation and scheduling of fraccing equipment will enable testing to commence in two to three months.

The Homeplace prospect in the Wilcox Formation, in which Strike holds a 40% working interest, has a prospective gas resource of 15-20 billion cubic feet (Bcf). The prospect has the potential to more than double the Company’s growing gas and condensate reserves.