Quetzal to Spud Llanos Well in October

- Quetzal to Spud Llanos Well in October

Tuesday, September 13, 2011
Quetzal Energy Ltd.

Quetzal provided the following update on operations:

Block 27, Llanos Basin

As previously announced, Quetzal completed a 220 square km 3D seismic survey of Block 27 in 1Q 2011 and then followed that up with an additional 54 square km survey in 2Q 2011. Merge, analysis and interpretation of this seismic has been completed and management has identified 4 drillable prospects on the block.

On August 10, 2011, Quetzal received its blanket environmental permit paving the way to proceed with the drilling of its first well on Block 27. Construction of the location began on August 29, 2011, and the Company expects to spud this first well with a rig contracted from Saxon Energy Services in the second half of October. Once drilling begins, management expects to reach target depth of 10,000 feet in 45 days.

Prospective targets include the oil bearing intervals in the Mirador and Une Formations, with the Carbonera formation representing a secondary target.

Quetzal pays 50% of cost and has a 45.275% revenue interest in this block before payout, and a 34.25% interest following payout.

Block 21, Llanos Basin

A 95 square kilometer 3D seismic program has been completed on Block 21, and management is near completion of its analysis and interpretation. Preliminary evaluation has identified 4 potential prospects of interest on Block 21 with further detailed analysis required.

On August 3, 2011, Quetzal filed for its environmental permit on Block 21 and is awaiting approval. Under contractual commitments to the ANH, and by the terms of its farm-in agreement, Quetzal and their partner, Brownstone Ventures, must drill two wells by September 12, 2012. Assuming environmental approval is received in a timely fashion, the Company expects to commence wellsite construction in 1Q 2012, and drill two wells in 2Q 2012.

Projected well depths at Block 21 are 8,000 feet.

Quetzal pays 50% of cost and has a 45.50% revenue interest in this block before payout, and a 35% interest following payout.

Canaguaro Block

A long term production test began on May 4, 2011 with an ESP set at approximately 6,000 feet depth, approximately 8,000 feet above the producing Mirador formation. Since that time, Quetzal has averaged approximately 400 barrels of oil per day and has witnessed the water cut go from and average of 18% in May to 33% in August. Initial reservoir pressure was registered at approximately 5,850 psia in May, and management has witnessed some decline in bottom hole flowing pressure since commencement of the long term test. In late August, Quetzal shut in the Canaguay 1 well for 6 days to conduct a pressure build up test. Over that short period, well pressure returned to within 100 psia of the May pressure indicating that reservoir pressure depletion is not significant. Given that the perforations are only 30 feet above the plug back depth, management believes that sand production is likely causing a restriction in flow, and reduced bottom hole flowing pressure. The Company and its partners now plan to service the well by conducting a cleanout of the well, replacing the ESP, and placing the new ESP at a deeper depth in the well closer to the producing zone. It is management's expectation that this will lead to increased fluid production and a resultant increase in oil production as well. This work is expected to be completed by November 1 and is budgeted at a net cost to Quetzal of $250,000.

Quetzal has a 25% working interest in the Canaguaro Block and is acting as operator of the well.

Block 36

The acquisition of 109 square kilometers of 3D seismic on Block 36 has been completed and analysis and interpretation continues. Drilling of one well is required by February 2012 and the Operator, Montecz continues to evaluate options to meet activity requirements of the ANH. Quetzal pays 20% of cost and has a 18.2% revenue interest in this block before payout, with a 14% interest following payout.

Guatemala Update

As part of Quetzal's ongoing strategy to maximize shareholder value, the Company continues to evaluate strategic alternatives. The Company is actively evaluating options including selling the Guatemalan assets or soliciting third party joint venture partners to assist in developing the Guatemala blocks.

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Anglo-Turkish Genel Energy Increasing Presence in Northern Iraq

- Anglo-Turkish Genel Energy Increasing Presence in Northern Iraq

Tuesday, September 13, 2011
OilPrice.com
by Charles Kennedy

Anglo-Turkish Genel Energy, soon to be led by former BP CEO Tony Hayward, is seeking to expand its presence in northern Iraq.

Genel Energy, owned by Turkish businessman Mehmet Emin Karamehmet, is seeking a major role in the development of the vast reserves of oil in the Kurdish autonomous region of northern Iraq.

Speaking to Turkey's Hurriyet newspaper Hayward said, "The only approval we need is from the Kurdistan Regional Government, and we expect that approval to come before the end of September. All of the indications in Kurdistan show that things are only going to get better. I think this is a good time to invest in the region."

Hayward also expressed his belief that a "pragmatic realism" now dominated relations between the Kurdish regional government and Baghdad, adding that eventually, the Kurdish region will have "a significant say" in what is going to be finally approved in Iraq's expected hydrocarbons law noting, "This means (a company) can invest. "(The two governments) have agreed to revenue-sharing mechanisms. Payments are being received and I think all indicators show that things are only going to get better. There will be some bumps in the road, but the train and its direction are clear."

(Charles Kennedy is Deputy Editor of OilPrice.com. The original article appears here.)

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Oil India Plans to Invest $4B in Five Years to Raise Output

- Oil India Plans to Invest $4B in Five Years to Raise Output

Tuesday, September 13, 2011
Dow Jones Newswires
NEW DELHI
by Rakesh Sharma

Oil India plans to raise its capital expenditure 73% to about INR190 billion ($4 billion) in the five years starting April 2012 as the state-run explorer seeks to sharply raise oil and gas production, its finance director said.

"We are stepping up exploration and development of our blocks in India and overseas," T.K. Ananth Kumar told Dow Jones Newswires late Monday. "We are also seeking producing assets, so we have raised our capital expenditure plans."

The company's capital expenditure in the five years ending March 2012 is likely to be about INR110 billion. It accounted for a 10th of India's total oil output of 754,000 barrels a day and 4.5% of total gas output of 52.22 billion cubic meters in the last financial year. Kumar didn't say how much the company is aiming to produce.

Oil India will mainly fund its investments through internal accruals, but may raise debt, he said.

The company, which was listed on local stock exchanges in September 2009, has cash reserves of INR130 billion, he added.

Oil India and its bigger state-run rival Oil & Natural Gas Corp. need to boost capital spending to bring new fields into production amid falling output at their aging fields. India, which imports about four-fifths of its crude oil requirements, is encouraging explorers to ramp up exploration and production to meet surging demand for energy in the world's second-fastest growing major economy.

"We have been witnessing an increase in capex by oil and gas explorers in India for the past several years as energy security is a focus. This sort of high capex is quite achievable by Oil India considering they have more than INR120 billion of cash and have been generating a cash flow of about INR40 billion per year," Alok Deshpande, analyst with Elara Securities Ltd., said.

Oil India is seeking to acquire producing oil and gas assets in Australia, Russia, Kazakhstan and Canada, Kumar said.

"We have shifted our focus to acquiring producing assets, rather than going for exploration blocks, as we already have our hands full with existing exploratory blocks. Also, we have enough cash in hand and that would be the best use of it," Kumar said.

Oil India is in talks with French explorer Etablissements Maurel et Prom to buy a stake in its Gabon assets and plans to close the deal by March, Mint newspaper reported Monday. Kumar declined to comment on the report.

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

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Cairn Updates Operations Offshore Greenland

- Cairn Updates Operations Offshore Greenland

Tuesday, September 13, 2011
Cairn Energy plc

The following operational update relates to Cairn's exploration drilling campaign offshore Greenland.

Gamma-1 Well: Eqqua Block, West Disko Area

The Gamma-1 exploration well, drilled by the Ocean Rig Corcovado drillship, located in 1,520 meters (m) of water and 294 kilometers (km) from Aasiaat, in the Eqqua Block in the West Disko area has reached total depth (TD) and preparations are under way to plug and abandon the well. The well had been targeted to test a deep water Tertiary basin floor fan located 100km down dip from the T8-1 well where biogenic and thermogenic gas had been encountered in 2010.

The Gamma-1 well intersected the prognosed basin floor fan at the anticipated depth, although no reservoir or hydrocarbon shows were encountered in the interval.

Delta-1 Well: Napariaq Block, West Disko Area

The Delta-1 exploration well, drilled by the Leiv Eiriksson semisubmersible drilling rig, located in a water depth of 293m and approximately 365km offshore Aasiaat, in the Napariaq Block is currently drilling ahead. The Delta-1 well is aiming to intersect Cretaceous sediments in a large structural closure beneath the Tertiary volcanic interval in which oil shows were encountered in the Alpha-1 well drilled in 2010. The well has so far encountered several hundred meters of Tertiary volcanic section, which is thicker than anticipated and with only minor hydrocarbon indications. A further update will be made later this month, once the well reaches TD.

AT7-1 Well: Atammik Block, South Ungava Area

Following completion of the operations on the Delta-1 Well, the Leiv Eiriksson is scheduled to move south to re-enter the AT7-1 well in the Atammik block, located in 909m of water and 198km offshore Nuuk, and drill to the planned TD.

Fifth Well: AT2 Prospect: Atammik Block, South Ungava Area

Once operations on the Gamma-1 well are complete, the Ocean Rig Corcovado is scheduled to move 597km south, to the Atammik Block, to drill the AT2 prospect as a fifth well in the 2011 exploration drilling campaign.

Further updates will be provided whenever a well is at TD and operations are complete.

Simon Thomson, Chief Executive, said, "The full results of the Gamma-1 well and the update from the Delta-1 well will be reviewed in the context of all the data gathered during the Greenland exploration campaign.

The rigs are scheduled to move south to drill the final two wells of the program on the Atammik block. We remain focused on the potential of our multi-basin position in Greenland."

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Aminex to Withdraw from Tanzania PSA

- Aminex to Withdraw from Tanzania PSA

Tuesday, September 13, 2011
Aminex plc

Aminex and Key Petroleum Ltd. ('Key') currently participate 50-50 in the West Songo-Songo Production Sharing Agreement ('PSA') in Tanzania, with Key as the operating partner. Progress has been slow to date and the work program is behind schedule, creating uncertainty about the future of the PSA. As a consequence, Aminex has agreed with Key that it will withdraw from the PSA, transferring its 50% interest to Key which will then hold 100%. In exchange, Key will relinquish its 5% interest in the new 'Nyuni Area PSA' in favor of Aminex. The West Songo-Songo transfer is being submitted to the Tanzanian authorities for formal approval but the practical aspects of the transfer will be implemented immediately.

The 'Nyuni Area PSA' will replace the existing 'Nyuni-East Songo-Songo PSA', operated by Aminex's wholly-owned subsidiary, Ndovu Resources Ltd., which is now time-expired and where work obligations have been fulfilled, with two gas discoveries recorded. The new Nyuni Area PSA has already been initialed by both Aminex and the Tanzanian authorities, as previously announced, and will be formally executed by the Minister of Energy and Minerals at an appropriate time. The Nyuni Area PSA will be materially larger than the earlier one and will comprise 4 additional blocks directly to the north, as well as the area covered by the existing Nyuni-East Songo-Songo PSA. Key will retain a 5% working interest in the Kiliwani North gas development license, which was carved out from the Nyuni PSA earlier this year. Interest holdings will now be as follows:

• Nyuni Area PSA (1,690 km², including 338km² making up the 4 additional blocks)
  • Ndovu Resources (Aminex) 70%
  • RAK Gas 25%
  • Bounty Oil 5%
• Kiliwani North Development License (85 km²)
  • Ndovu Resources (Aminex) 65%
  • RAK Gas 25%
  • Bounty Oil 5%
  • Key Petroleum 5%

Aminex considers that the new acreage included in the Nyuni Area PSA will provide greater scope for establishing a new play fairway on the continental shelf which could share similarities to some of the recent deep water drilling successes.

Aminex Chairman Brian Hall commented, "Although West Songo-Songo is potentially promising acreage, we believe that our strategy of increasing our interest and acreage in the Nyuni PSA area together with our recently announced increase in our percentage interest in the Ruvuma Basin will be more effective and valuable than our existing portfolio mix."

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Oil & Gas Post - All News Report for Monday, September 12, 2011

Monday, September 12, 2011

• Commodity Corner: Oil Settles Higher on Euro Rebound
• Surge Issues Update on Valhalla South Ops
• Ford to Debut 1.0-Liter EcoBoost Engine in Europe
• Nordic Sets Private Placement for Bakken Drilling Funds
• QR to Acquire Acreage in Permian, Ark-La-Tex, Mid-Continent
• Mogul Energy Spuds Stafford Well #2
• Cooper Begins Butlers-4 Drilling
• CNOOC Contracts Drillship Energy Searcher
• Nuvia Names Hill Business Manager
• BOEMRE Names Senior Managers
• Bering Spuds Concordia Parish Well
• Ecopetrol Builds on Cano Sur Success
• La Cortez Boosts Net Production on Mirto-1
• Oceaneering Sells Ocean Legend
• Enegi Prepares Next Stage of Onshore Newfoundland Workover
• Americas Petrogas, Gran Tierra Hit Oil Pay in Argentina
• PetroMagdalene Announces Copa B-1 Discovery
• CNOOC Okays ConocoPhillips' Plans for Depressurizing and Sealing
• Fox Petroleum to Acquire Renfro, Cameron Parish Pipelines
• Weather Watch: 7 of 10 Missing Workers Rescued Alive in Gulf 
• NPD Head: Norway's New Oil Finds May Help Stem Mid-Term Output Fall
• Shell Seeks Okay for 2D Survey Offshore NW Australia
• Petrolimex Wins Laos Investment Contract
• Technip, Global Industries Agree to Merge
• Goldman Sees US As Top Oil Producer In 2017 - Report
• Iraq Energy Panel Approves Gas Deal - Oil Minister

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Mogul Energy Spuds Stafford Well #2

- Mogul Energy Spuds Stafford Well #2

Monday, September 12, 2011
Mogul Energy International, Inc.

Mogul Energy International, Inc. on Monday announced the spudding of the Stafford Well #2 on the La Ward NE Field area in Jackson County, Texas. The drilling rig moved on location over the past weekend and initiated drilling operations late Sunday afternoon.

This offset well is located 600 feet west of the Stafford Well #1, which was initially completed in March of this year. The Stafford Well #2 will be drilled to a total depth of 7,000 feet so as to further delineate the producing intervals seen in Frio formation. It is expected that the new well will be higher on structure and will have several producing intervals with greater producing rates than the Stafford Well #1.

Stafford Well #2 has 100% participation of all working interest owners that participated in Mogul's initial well in the field. Mogul has a 15% working interest in both wells #1 and #2 and is the operator for both.

President and CEO Tim Turner said, "We are very excited about the prospects for our second well in our drilling program as we strive to carry out our mandate to grow value for our shareholders and partners."

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Cooper Begins Butlers-4 Drilling

- Cooper Begins Butlers-4 Drilling

Monday, September 12, 2011
Cooper Energy Limited

Cooper Energy Limited announced that the Butlers-4 appraisal/development well in PEL92 spudded at 11:30 pm Sunday. The current operation is drilling ahead in the surface hole at 135 meters.

Butlers-4 is the third appraisal/development well on the Butlers Oil Field in the current PEL92 drilling program. Butlers-4 is targeting the Namur oil reservoir in the crestal part of the field 0.26km to the southeast of the Butlers-1 discovery well. The well will be drilled to a total depth of about 1,390 meters and is expected to take 9 days to drill and complete.

The Butlers oil field is currently producing approximately 1,400 barrels of oil per day from the Namur reservoir from the Butlers-1 well with Butlers-2 and Butlers-3 yet to be completed. It is expected that Butlers-4 will accelerate production as well as draining previously unaccessed reserves. The Butlers surface facilities will be upgraded to handle the increased production. Oil production from Butlers is exported via the pipeline to Tantanna and then exported to Moomba.

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CNOOC Contracts Drillship Energy Searcher

- CNOOC Contracts Drillship Energy Searcher

Monday, September 12, 2011
Northern Offshore, Ltd.

Northern Offshore, Ltd. on Sunday announced that CNOOC Palung Aru Ltd. ("CNOOC") has awarded a contract for the drillship Energy Searcher. The contract is for one well offshore Indonesia and has an expected duration of from 60-90 days, including travel time from and back to Singapore. Commencement is expected during October 2011. The estimated contract value for the program is from US$18-25 million, including mobilization fees.

Gary W. Casswell, Northern Offshore's president and CEO, said, "We are pleased with CNOOC's award of this contract for the Energy Searcher, and look forward to a successful drilling program. We remain optimistic of increasing activity in the region and are ready to get the rig back to work following its major shipyard and equipment refurbishment project."

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BOEMRE Names Senior Managers

- BOEMRE Names Senior Managers

Monday, September 12, 2011
Bureau of Ocean Energy Management, Regulation and

Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) Director Michael R. Bromwich on Monday announced several key appointments to high-level positions in the two new, independent agencies that will carry out the offshore energy management and enforcement functions currently under the jurisdiction of BOEMRE. The Bureau of Ocean Energy Management (BOEM) and the Bureau of Safety and Environmental Enforcement (BSEE) will begin operating on October 1, 2011.

"I am pleased to announce my selection of a group of exceptionally qualified individuals," said Director Bromwich. "Throughout the recruitment process, we have looked for leaders who are technically skilled and experienced, and who can lead our ongoing efforts to enhance the safety of offshore exploration and production. The new leadership represents a combination of talented people from inside the agency with an exceptionally well-qualified group of people recruited from outside the agency."

BOEM will be responsible for managing development of the nation's offshore resources in an environmentally and economically responsible way. Functions will include: Leasing, Plan Administration, Environmental Studies, National Environmental Policy Act Analysis, Resource Evaluation, Economic Analysis and the Renewable Energy Program.

Some of the key leaders for BOEM will include:

• Dr. Walter D. Cruickshank, who will serve as the BOEM Deputy Director. Dr. Cruickshank has more than 25 years of experience at the Department of Interior. He most recently served as the BOEMRE Deputy Director. He earned a Bachelor of Arts in Geological Sciences from Cornell University and Doctorate in Mineral Economics from the Pennsylvania State University.
• Renee Orr, who will serve as BOEM's Strategic Resources Chief in BOEM. She has more than 23 years of experience with the Department of the Interior. Ms. Orr has overseen the staff implementation teams that have been at the core of the bureau's reorganization effort, and previously served as Chief of Leasing where she was responsible for the development and completion of several 5-Year Oil and Gas Leasing Programs. She earned Bachelor of Arts degrees in Economics and History from Metropolitan State College in Denver.
• Maureen Bornholdt, who will serve as the BOEM Renewables Chief. Ms. Bornholdt has more than 27 years of experience with the Department of the Interior. She most recently served as the Project Manager for BOEMRE's Offshore Renewable Energy Program. Ms. Bornholdt earned a Bachelor of Science in Public Administration from George Mason University.
• Ellen G. Aronson, who will serve as the BOEM Pacific Region Director. Ms. Aronson has over 33 years of experience with the Department of the Interior. She most recently served as the BOEMRE Pacific Region Director. Ms. Aronson earned a Bachelor of Arts in Liberal Arts from Sara Lawrence College and a Master's of Urban and Regional Planning from the University of Southern California.
• Dr. James Kendall, who will serve as the BOEM Alaska Region Director. Dr. Kendall has over 27 years of experience with the Department of the Interior. He most recently served as the BOEMRE Alaska Region Director. Dr. Kendall earned a bachelor's degree in biology from Old Dominion University, Ph.D. in oceanography from Texas A&M University, and a Post-doctoral Fellowship in Marine Biology from the Hebrew University of Jerusalem, Israel. He is also a graduate of the Federal Executive Institute, Charlottesville, Virginia, and the Senior Executive Fellows Program of the John F. Kennedy School of Government at Harvard University.
• John Rodi, who has been the Deputy Regional Director of BOEMRE's Gulf of Mexico Region since November 2007 and will serve as the BOEM Gulf of Mexico Acting Regional Director until a permanent Regional Director is selected. Mr. Rodi has more than 40 years of federal service with five different agencies. Mr. Rodi has both Bachelor and Master Degrees in Economics from Tulane University and the University of New Orleans, respectively.

BSEE will enforce safety and environmental regulations. Functions will include: All field operations including Permitting and Research, Inspections, Offshore Regulatory Programs, Oil Spill Response, and newly formed Training and Environmental Compliance functions.

Some of the key leaders for BSEE will include:

• Charles Barbee, who will serve as the BSEE Chief of the Environmental Enforcement Division. Mr. Barbee has more than 20 years of experience with the U.S. Coast Guard. Most recently, he was the Coast Guard's program manager for both marine investigations and environmental crime. During his career, Mr. Barbee has specialized in oil spill contingency planning, pollution investigation and response, marine inspections and marine casualty investigations. He graduated and received his commission from the U.S. Coast Guard Academy and earned a Master's Degree in Organizational Management from the University of Phoenix.
• Chris Barry, who will serve as the BSEE Director of the National Offshore Training Center. Mr. Barry currently serves as Chief of National Training and Leadership for the Federal Emergency Management Agency in the National Preparedness Directorate. He earned a Bachelor of Arts (dual) degree in Art History and Special Education and a Master of Instructional Systems Design.
• David Moore, who will serve as the BSEE Oil Spill Response Supervisor. Mr. Moore has more than 14 years of experience with the Department of the Interior. He most recently served as the Coordinator of BOEMRE's Oil Spill Program. He earned a Master of Engineering degree from Tulane University and a Master of Urban and Regional Planning degree from the University of New Orleans.
• Bob Brown, who will serve as the BSEE Associate Director for Administration. Mr. Brown has more than 30 years of experience at the Department of the Interior, Small Business Administration and U.S. Navy. He most recently served as the BOEMRE Associate Director for Administration and Budget and Chief Information Officer. Mr. Brown earned a Bachelor of Arts degree from Seton Hall University and pursued post-graduate studies in History at Georgetown University.
• Lars Herbst, who will serve as the BSEE Gulf of Mexico Regional Director. Mr. Herbst has over 27 years of experience with the Department of the Interior. He most recently served as the Gulf of Mexico Regional Director for BOEMRE. He is a registered professional engineer in the State of Louisiana and earned a Bachelor of Science in Petroleum Engineering from Louisiana State University.
• Jaron E. Ming, who will serve as the BSEE Pacific Region Director. Mr. Ming most recently served as the Pacific Region's Lead Leasing Specialist. He previously served as the Senior Policy Advisor to the Regional Director. He started his career in the federal government as a Presidential Management Fellow. Mr. Ming earned a Bachelor of Arts degree from Georgetown University, a Master of Arts degree in Marine Affairs and Policy from the University of Miami's Rosenstiel School of Marine and Atmospheric Science, and a Juris Doctorate degree from the University of Miami School of Law.
• Mark Fesmire, who will serve as the BSEE Alaska Region Director. Mr. Fesmire most recently served in the New Mexico Energy Minerals and Natural Resources Department, where he has was the Director of the state oil and gas regulatory agency and Chairman of the Oil and Gas Commission for the past seven years. Prior to attending New Mexico State University where he received bachelor's degrees in Geological and Civil Engineering, Mr. Fesmire worked in the offshore oil fields of the Gulf of Mexico. After 12 years as a petroleum engineer, he completed Law School at the Texas Tech University School of Law. He is a Registered Professional Petroleum Engineer and Licensed Attorney.

BSEE is currently accepting applications for the Deputy Director position.

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La Cortez Boosts Net Production on Mirto-1

- La Cortez Boosts Net Production on Mirto-1

Monday, September 12, 2011
La Cortez Energy, Inc.

La Cortez Energy, Inc. on Monday provided the following operational update on the work-over activity conducted on the Mirto-1 well.

Maranta Block – Mirto Field

As previously announced, the work-over on the Mirto-1 well was initiated on August 8th, 2011, with the objective to initiate a long-term production test on the Villeta N sand, which is the same zone that is producing in the Mirto-2 well. The work-over operation was completed on August 23rd, and the well was immediately put on production with the following initial results during the period from August 23rd to September 10th: Average gross production before royalties was 334 bopd of 15 degree API oil, with an average Base Sediment and Water (BS&W) of 1.5%. The well is producing by Electro Submersible Pump (ESP), and is stabilizing at 820 psi (flowing pressure at the ESP inlet) which is the expected pressure needed to maintain current production levels. Production on September 10th increased to 343 bopd (gross before royalties) with an average (BS&W) of 0.5%, indicating a continuous reduction in the water cut as expected for this particular reservoir. The well will be placed on long-term production testing with the purpose of monitoring production behavior as well as to gather additional technical data.

The Mirto-2 well continues producing with an average rate of 484 bopd for the year (gross before royalties), and with an average BS&W of 0.7%. The well continues producing from the Villeta N sand with flow pressure stable at 1065 psi, indicating the potential to increase the ESP frequency in order to maintain production levels closer to 500 bopd.

Current production from the Mirto-1 and Mirto-2 wells is 756 bopd gross before royalties, or 151 bopd net (before royalties) to the company, an increase of more than 50% over the year to date average.

Andres Gutierrez, President and CEO of La Cortez, commented on the announcement, "We are very pleased with the initial results obtained from the work-over on the Mirto-1 N sand. The additional production represents a significant increase in net production to the company, and will give us the opportunity to further assess the results of the work-over, and work closely with Emerald Energy Plc. (the operator of the block) to finalize plans for future exploration activity on the block as well as to determine the production potential from the Villeta formation - U sand in the Mirto field."

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Iraq Energy Panel Approves Gas Deal - Oil Minister

- Iraq Energy Panel Approves Gas Deal - Oil Minister

Monday, September 12, 2011
Dow Jones Newswires
AMMAN
by Hassan Hafidh

A top Iraqi government energy committee has approved a deal with Royal Dutch Shell PLC (RDSA) to capture and exploit gas from its giant southern oil fields, the country's oil minister said Sunday.

The Iraqi oil ministry struck a deal in July with Shell and Japan's Mitsubishi Corp. (8058.TO, MSBHY) to develop gas production in southern Iraq. To become valid the deal needs approval from the Baghdad government.

"It was agreed upon by the energy committee and was sent to the cabinet for approval," Abdul Kareem Luaiby told Dow Jones Newswires on the sidelines of an Iraqi energy meeting in Amman, Jordan.

The committee is chaired by the deputy prime minister for energy affairs, Hussein al-Shahristani, and its members include the ministers of oil, electricity and finance.

Luaiby declined to say when exactly the cabinet would approve the deal. The agreement must first be examined by the cabinet's legal and specialized offices, he said.

The 25-year venture calls for an investment of $17.2 billion to create the Basra Gas Company. Baghdad would have a 51% stake, Shell 44% and Mitsubishi 5%.

Some $12.8 billion would be spent on infrastructure and $4.4 billion on construction of a liquefied-natural-gas facility.

Under the agreement, the company must first meet local demand but can export any gas not used by Iraq's fuel-starved power plants. The planned LNG terminal would handle the export of 600 million cubic feet a day.

Baghdad would contribute $5.236 billion to the venture, including some $1.524 billion in existing infrastructure. Shell and Mitsubishi need to contribute nearly $7 billion, and the remaining money will be financed through the venture's returns, according to the summary submitted by Iraq's oil ministry to the country's parliament.

The venture would process associated gas produced from three supergiant Iraqi fields--Rumaila, West Qurna phase 1 and Zubair--all in Basra governorate.

"We are committed to supply the venture with 1.6 billion cubic feet a day from these fields," Luaiby said.

The joint venture would sell produced gas to Iraq's state-owned South Gas Company, at international standard pricing.

Iraq estimates it should make around $31.1 billion over the 25 years of the project from taxes, fees and raw gas sales to the joint venture, the document said.

An Iraqi oil expert, who asked not to be named, however, said Iraq would make nearly $100 billion from the venture because the gas would substitute for the oil currently used to fuel Iraq's power stations.

Iraq would tax Shell and Mitsubishi profits at 35%, he said. The expert said Shell and Mitsubishi will make a 7% profit on the whole venture.

Iraq has natural-gas reserves totaling 112.6 trillion cubic feet, the 10th largest in the world. But it produces only around 1.5 billion cubic feet a day, because of a lack of infrastructure.

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

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Oil & Gas Post - All News Report for Friday, September 09, 2011

Friday, September 09, 2011

• Commodity Corner: Oil Falls as Euro Weakens
• API: Obama's Jobs Plan a 'Missed Opportunity'
• Cabot: Minimal Impact on Pa. Operations from Flooding
• Editorial: A Jobs Plan that Really Works
• East Texas, Haynesville Production Stable Despite Wildfires
• Cargotec Enters Vietnamese Market with Mooring Contract
• BOEMRE Issues Final Update on Lee Evacuations
• Abraxas Announces New CFO
• VAALCO Acquires Bakken Interest in Montana
• Salamander Farms Into Gulf of Thailand Block
• Reliance Industries Confident of Unlocking Field Potential with BP
• ADX Increases Stake in Kerkouane Permit
• Kilgore Acquires Additional Klondike Interest
• CAPP Unveils Hydraulic Fracturing Guidelines
• Total Hits Gas Pay in Caspian
• Tullow Reports French Guiana Discovery
• PA Resources Kicks Off Lille John Drilling
• African Petroleum Finds Drilling Success Off Liberia

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Salamander Farms Into Gulf of Thailand Block

- Salamander Farms Into Gulf of Thailand Block

Friday, September 09, 2011
Salamander Energy

Salamander Energy plc announced that its fully owned subsidiary, Salamander Energy (Bualuang) Ltd has agreed to farm-in to Block G4/50 in the Gulf of Thailand, earning equity in the acreage from Mitsui Oil Exploration Co Ltd (“MOECO”). Following the completion of the transaction, Salamander will hold a 100% working interest in and operatorship of the acreage, while MOECO will retain certain commercial options in the case of a future discovery. Block G4/50 is located in the western Gulf of Thailand and surrounds the Company’s B8/38 licence that contains the Bualuang oil field and Bualuang East Terrace oil discovery. The farm-in is subject to Thai government and regulatory approval.

Key Points:

G4/50, at over 11,650 sq km, is one of the largest blocks of prospective acreage offshore Thailand. The block surrounds the Salamander-operated B8/38 licence in the western Gulf of Thailand

It consolidates Salamander’s acreage position in an area where it has extensive operating experience and geological knowledge

Major programme of 3D seismic in 2H 2011 will be followed by a multiple well exploration programme

As part of the farm-in agreement MOECO will retain certain commercial options in the case of a future discovery

Exploration expenditures incurred in G4/50 are deductible against tax payable on production revenue from the Bualuang oil field in B8/38

James Menzies, Chief Executive, Salamander Energy, said:

“We are delighted to secure a very substantial area of prospective acreage surrounding our Bualuang operations. Block G4/50 has been of growing interest to Salamander as our geological and subsurface understanding of the immediate play has developed. The region remains under-explored to date and we are looking forward to implementing our work programme, starting with an extensive 3D seismic campaign of over 2,900 sq. km on G4/50 in the fourth quarter of this year.”

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Oil & Gas Post - All News Report for Thursday, September 08, 2011

Thursday, September 08, 2011

• Volkswagen Halts Planned Merger with Porsche
• GAO: Water Supply Poses Obstacle to Green River Oil Shale Dev't
• UK Govt, Oil Industry Attempt to Resolve North Sea Tax Issue
• GOM Outlook Brighter as Noble Plans 2012 GOM Plans
• Rocksource Spins Bit at Phoenix Prospect
• Karoon Lines Up Semisub Transocean Legend
• Dart Commences Drilling Ops at China Daijing Proj.
• Noble to Drill Cyprus A Prospect in 4Q
• Treaty to Boost Production at Tx. Leases
• Clough DORIS, Ichthys Execute Binding Contract
• RBG Clinches Apache Contract Extension in North Sea
• Gould: Oilfield Services Spending Likely to Increase
• Weather Watch: BP Evacuates Nonessential Personnel from GOM Platforms
• Hess Boosts Utica Position with $750MM Acquisition
• South Africa Awaits Shale Gas Assessment Outcome
• Apache Gets Environmental Nod for Julimar, Brunello Fields
• Solo Oil Ups Stake in Tanzania Ruvuma Basin
• Elko: Luna Spud Date Anticipated Early December
• Sefton Makes Headway in California, Kansas
• Technip Lands EPC Gig for Satah Full Field Development
• Statoil On Track with Mariner Project
• Reliance, BP Finalize $7.2B Acquisition

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Oil & Gas Post - All News Report for Wednesday, September 07, 2011

Wednesday, September 07, 2011

• Commodity Corner: Oil Follows Stocks' Lead
• BP Appeals Russian Court Ruling That Permitted Office Search
• Industry Professionals Optimistic about N. Sea Future
• MWCC's First Non-Member Gets Permit Approval
• Tethys Posts Initial Logging Results from Kalypso Well
• GE Selected for Centrica's Projects in N. Sea, Irish Sea
• Viking Moorings Inks 2-Year Agreement with Deep Sea Anchors
• Swire Oilfield Services Sets Up Shop in Aberdeen
• Cobalt Names COO
• Schlumberger Offers Intervention Services through SERVCO
• All Evacuated Personnel nearly Returned - BOEMRE
• API: Policy Shift Could Create 1.4 Million New Jobs
• Computer Model May Be Able to Predict Pipeline Fractures
• US Lawmaker Pushes For Drilling In Alaska Refuge
• Russia Can Double Oil Reserves By Tapping Arctic Potential -Lukoil Exec.
• FuelCell Reported Q3 Results, Top Line Up 65% YoY
• Hess Bids High to Extend Utica Footprint
• ConocoPhillips To Establish Bohai Bay Fund
• BP Unleashes Additional Reserves at Mad Dog Field
• SOCO Spuds Well Offshore Congo-Brazzaville
• Eastern African Energy Riches Attract Interest
• Premier Oil Granted Drilling Permit in North Sea
• Coastal's Bua Ban North A-05 Encounters Net Pay
• Brinx, Partners Complete Development Oil Well in Oklahoma
• Wood Group Lands Engineering Gig at BP's Quad 204 Proj.
• Northern Starts Extended Well Test at Markwells Wood
• Oilex Notes Progress in Cambay Clean-Up Ops
• FOGL Briefs Interim Results for 1H11

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Eastern African Energy Riches Attract Interest

- Eastern African Energy Riches Attract Interest

Wednesday, September 07, 2011
OilPrice.com
by Joao Peixe

Energy deposits located in east African nations and their offshore coastlines are increasingly drawing foreign investor interest.

Recent surveys have led analysts to estimate that Mozambique has over 6 trillion cubic feet of recoverable natural gas reserves while neighboring Tanzania's natural gas reserves could exceed 7.5 trillion cubic feet.

Petroleum Development Consultants managing director David Aron noted, "The interesting question is whether there will be a (natural gas) liquefaction plant in both Tanzania and Mozambique or whether a single shared location could be developed," adding that Mozambique's natural gas from its Pande and Temane onshore fields could be exported to neighboring South Africa while Tanzanian natural gas, produced from its offshore fields, would be used primarily for power generation, allowing it to reduce its imported energy costs, Nairobi's The East African reported.

Both Tanzania and Mozambique are currently plagued by indigenous energy shortages, which lead to electrical blackouts.

Tanzania, East Africa's second- biggest economy, before its natural gas fields begin production, is seeking to relieve its electricity shortages in the interim by promoting geothermal energy. Tanzanian Energy and Minerals Deputy Minister Adam Malima said, "We are moving toward more environmentally friendly sources of energy as our demand increases. We are looking to the private sector to see if there is interest in geothermal development."

(Joao Peixe is Deputy Editor of OilPrice.com. The original article appears here.)

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Oil & Gas Post - All News Report for Tuesday, September 06, 2011

Tuesday, September 06, 2011

• Commodity Corner: Oil Edges Lower on Econ Woes
• BP Announces North Sea Development
• Chevron Strikes Oil in Deepwater GOM
• GE Bags Causeway Development Deal
• Ithaca Selects GE O&G for Stella Development
• Africa Oil, Denovo to Close Transaction in Few Weeks
• 2H Offshore Adds to Management Team
• Flexlife Expands Ops across South America
• Europa Appoints Director
• RBG Names New CNNS Operations Director
• Sunoco Announced It Plans To Exit Refining Business
• Halliburton: 'Phenomenal' Opportunities for Global Pressure Pumping Growth
• BOEMRE: Additional Personnel Redeployed at GOM
• Foreign Companies Apply for Czech Shale Gas Exploration Permits
• Cooper, Beach Make New Oil Field Discovery
• Activities Underway at Strike's US Projects
• CNPC Wins Bid for Afghan Blocks
• Imperial Reaches TD at Green Tide SWDF
• UK Govt Reveals Device to Cap Underwater Oil Blowout
• Technip Scores Maersk Gig in North Sea
• Lufkin Industries Announced It Signed Agreement To Acquire All Assets Of Quinn's Oilfield Supply Ltd
• ConocoPhillips Completes Shutdown of Bohai Bay Oilfield
• BP Gets Govt OK for Kinnoull Field Development
• Frontera Commences Drilling Ops at Georgia Field
• TGS, Fugro Team Up in Greenland Survey

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BOEMRE: Operators Evacuate Ops in GOM

- BOEMRE - Operators Evacuate Ops in GOM

Monday, September 05, 2011
BOEMRE

Offshore oil and gas operators in the Gulf of Mexico are evacuating platforms and rigs in the path of Tropical Storm Lee. The Bureau of Ocean Energy Management, Regulation, and Enforcement (BOEMRE) Hurricane Response Team is monitoring the operators' activities. The team will continue to work with offshore operators and other state and federal agencies until operations return to normal and the storm is no longer a threat to Gulf of Mexico oil and gas activities.

Based on data from offshore operator reports submitted as of 11:30 a.m. CDT Sunday, personnel have been evacuated from a total of 239 production platforms, equivalent to 38.7 percent of the 617 manned platforms in the Gulf of Mexico. Production platforms are the structures located offshore from which oil and natural gas are produced. Unlike drilling rigs, which typically move from location to location, production facilities remain in the same location throughout a project's duration

Personnel have been evacuated from 25 rigs, equivalent to 35.7 percent of the 70 rigs currently operating in the Gulf. Rigs can include several types of self-contained offshore drilling facilities including jackup rigs, submersibles and semisubmersibles.

As part of the evacuation process, personnel activate the applicable shut-in procedure, which can frequently be accomplished from a remote location. This involves closing the sub-surface safety valves located below the surface of the ocean floor to prevent the release of oil or gas. During the recent hurricane seasons, the shut-in valves functioned 100 percent of the time, efficiently shutting in production from wells on the Outer Continental Shelf and protecting the marine and coastal environments. Shutting-in oil and gas production is a standard procedure conducted by industry for safety and environmental reasons.

From operator reports, it is estimated that approximately 60.2 percent of the current oil production in the Gulf of Mexico has been shut-in. It is also estimated that approximately 44.3 percent of the natural gas production in the Gulf of Mexico has been shut-in. The production percentages are calculated using information submitted by offshore operators in daily reports. Shut-in production information included in these reports is based on the amount of oil and gas the operator expected to produce that day. The shut-in production figures therefore are estimates, which BOEMRE compares to historical production reports to ensure the estimates follow a logical pattern.

After the hurricane has passed, facilities will be inspected. Once all standard checks have been completed, production from undamaged facilities will be brought back on line immediately. Facilities sustaining damage may take longer to bring back on line. BOEMRE will continue to update the evacuation and shut-in statistics at 1:00 p.m. CDT each day as appropriate.

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Dow Chemical Awarded $12.8 Million by Department of Energy To Develop Photovoltaics

- Dow Chemical Awarded $12.8 Million by Department of Energy To Develop Photovoltaics



Sep 2, 2011

As part of the U.S. Department of Energy's SunShot initiative, Dow Solar, a business unit of The Dow Chemical Company (NYSE:DOW), has been awarded a $12.8 million, 3-year grant to fund a program to dramatically reduce the cost of building integrated solar products. The program's goal to ensure that solar power is a viable source for the nation's power needs and economic growth, and accelerate widespread solar adoption.

The Department of Energy grant will help fund a $22.4 million program that brings together leaders from across the entire value chain, including solar solutions providers, national laboratories, universities, leading electronics companies and national home builders to create a new solar technology that reduces the total installation costs and provide reliable, low cost solar energy to residential consumers.

Dow Chemical (NYSE:DOW) has a potential upside of 53.4% based on a current price of $26.83 and an average consensus analyst price target of $41.15.

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