Flexlife Expands Ops across South America

- Flexlife Expands Ops across South America

Tuesday, September 06, 2011
Flexlife

Flexlife has expanded its operations in Brazil to increase its capacity across South America.

The company is targeting initial revenue of approximately £4million per year, but that is expected to ramp up by 30-60% per year within two years.

As well as investing in new office accommodation in Rio de Janeiro at Rua Assembleia, Flexlife is manufacturing its ground-breaking integrity management products locally and offering a full assembly, deployment and maintenance service by staff based in the region.

The company has a suite of game-changing products to identify breaches in flexible pipes and repair them without interruption to production, a first in the 40 year history of the Oil & Gas industry.

Flexlife Chief Executive Stuart Mitchell said, "Flexlife is experiencing a period of significant growth and our new South American operation will expand our capability to offer specialised support to clients.

"Flexlife has continued to build on its reputation for offering a full subsea integrity and project management package, assisting clients to cost-effectively manage all of their subsea assets and infrastructure. We have built up high levels of expertise in deepwater markets and have a proven track record of providing a service that helps operators reduce risk in a cost-effective manner."

Leonardo Dias, Executive Manager Brazil, said, "Our aim is to establish ourselves in Brazil and also target work in Venezuela. We have recruited a team of engineering, technical and support staff who are all highly experienced in the Brazilian Oil & Gas market."

As part of a continuing global growth strategy Flexlife recently appointed Stephen Burgdorf as Vice President of Business Development for North America.

Based in Houston, Texas, he will focus on promoting Flexlife's award-winning offshore project and integrity management services to operators in the region.

A Newcastle base has also been opened in the last few months and the plans are in place to open an additional base in Angola.

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Kencana Expands Drilling Fleet

- Kencana Expands Drilling Fleet

Friday, August 26, 2011
Kencana Petroleum Berhad

Kencana announced that its wholly-owned subsidiary, Kencana Marine Drilling Sdn. Bhd., is building 2 units of Tender Assisted Drilling Rigs (TADRs).

The TADRs are currently being constructed by Kencana HL Sdn. Bhd., another wholly-owned subsidiary of Kencana Petroleum at its fabrication yard in Lumut, Perak at a cost of USD 145 million each and are expected to be completed by first quarter of calendar year 2013. The total cost of the 2 units of TADR of approximately USD 290 million will be financed by a combination of internal funds and borrowings.

The building of these rigs is in line with Kencana Petroleum Group's plan to expand its drilling business and service offerings in the upstream oil and gas services value chain. The new rig design is a further refinement to the existing TADR (KM-1). They will include enhanced safety features, heavier crane for efficient operation and lighter derrick equipment set to accommodate utilization on a wider range of drilling platform.

The TADRs when completed and in operation are expected to enhance the earnings of Kencana Petroleum Group.

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API Expands Fracking Remarks to U.S. Energy Dept.

- API Expands Fracking Remarks to U.S. Energy Dept.

Monday, August 22, 2011
Rigzone Staff
by Barbara Saunders

The federal government should not tell states how to regulate natural gas operations within their borders, the American Petroleum Institute (API) told a U.S. Department of Energy (DOE) panel in formal remarks on the panel's preliminary findings.

"While the industry and states are constantly striving to improve operations, it is important to recognize the strong foundation for shale gas operations that currently exists through robust state regulatory programs in most parts of the country," API said. "Rather than deferring on the proper role of state governments, we recommend the Subcommittee acknowledge the success that has been demonstrated through state-level programs. Regulation of oil and natural gas has been led by states since the inception of the industry and has demonstrated a high degree of capability and flexibility in adapting to changes such as those seen with unconventional gas development. States have created systems that effectively protected the environment, including ground water and drinking water sources."

Other remarks by the industry group included:

• "API supports a strong state regulatory framework for natural gas and the dedication of appropriate resources and staff to carry out the regulatory functions. The Subcommittee should defer to the states on the question of how to generate the necessary funding for regulatory programs, rather than making this determination for the states.
• "..[W]e are concerned that the Subcommittee did not engage in a gap analysis to determine whether, and to what extent, the items included in its recommendations have been or are being addressed by state and federal regulators, academia, industry or third parties. . . . A benefit-cost analysis is critical to balanced decisions related to the regulation of commercial activity.
• "API agrees that the protection of water resources is a top priority for all industry operations including hydraulic fracturing. However, water is a highly regulated commodity subject to the federal Clean Water Act as administered by the federal government and the states. A systems approach is already occurring in most local, state, and interstate jurisdictions due to the many requirements associated with water allocation and management processes. In addition, in most states, there already exists a reasonable manifest system for tracking wastes to their point of disposal. We see little additional value from requiring a manifest for the transportation of fresh water hauls since most water management agencies require reporting of these volumes already. This type of requirement should be reserved for those elements posing the greatest risks."

Among other things, API also protested the DOE panel's proposal to regulate air quality emissions from fracking operations separately. "Shale gas operations are already subject to a myriad of federal (Clean Air Act) and state air emissions regulations that have been in place for many years and continue to evolve," API said. "States must often obtain primacy by having programs as or more stringent than the federal requirements in meeting human health and environmental goals."

API supported the panel's recognition that shale gas provides important energy and economic contributions to the U.S.

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CCS Expands Operations with New Bakken Acquisition

- CCS Expands Operations with New Bakken Acquisition

Monday, August 01, 2011
CCS Corp.

CCS Corporation continues to expand into the United States with the acquisition of KT Hot Oil Company (KT) of Watford City, North Dakota. This is the company's second acquisition this month in the attractive Bakken region shale play and third in the United States. Financial details were not disclosed.

"KT is a well-respected organization with a long history of providing safe and reliable solutions in the basin," said John Gibson, CCS Corporation Chief Executive Officer. "This acquisition will add significant value to our current Bakken operations and builds on CCS's commitment to providing innovative energy and environmental solutions to the oil and gas industry."

KT was founded in 1995 and operates in four key segments: frac water heating, hot oiler services, fluid hauling and salt water disposal wells.

"We are very happy to join the CCS family," said Kent Norbeck, President of KT Hot Oil Company. "I feel the CCS high-performance culture matches well with KT and that we will continue offering our customers with the highest quality services."

KT's 53 employees will join the CCS team and operate under the CCS brand.

Today's acquisition of KT, in addition to last week's purchase announcement of Venture Oilfield Service Inc., further strengthens CCS Corporation's position as one of the leading providers of frac water heating and hot oil services in North Dakota.

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Nordic American Tankers Expands Fleet by 27%

- Nordic American Tankers Expands Fleet by 27%

Friday, July 29, 2011
Nordic American Tankers Ltd.

Nordic American Tankers announced that Nordic Breeze, the first of the two vessels under construction at Samsung Heavy Industries Co., Ltd., is expected to be delivered to the Company August 23, 2011. This is more than one month earlier than expected.

The second vessel, Nordic Zenith, is expected to be delivered to the Company in the latter part of October 2011 which also is well in advance of the original schedule.

Both vessels are fully financed, and no equity offering is under planning.

Following the delivery of Nordic Breeze and Nordic Zenith, the Company has increased its trading fleet by 27% during 2011, from 15 vessels in 4Q 2010 to 19 vessels in 4Q 2011 -- all suezmax vessels of about 150,000 dwt each -- thereby bolstering the dividend and earnings capacity correspondingly.

As previously advised the market, the dividend and earnings report (including the dividend amount per share) for the second quarter 2011 will be published Monday August 8, 2011 before the opening of the New York Stock Exchange. Dividend will be paid August 31, 2011 to shareholders of record August 19, 2011.

Herbjørn Hansson, the Company's Chairman & CEO, commented, "Going forward, Nordic American is continuously seeking to expand its dividend and earnings capacity through further acquisitions; when the timing is right. Nordic American has ample financial resources and a strong balance sheet. After the delivery of the two Samsung vessels our net debt will still be very small. I am pleased that we will receive the vessels from Samsung earlier than planned, which is a clear advantage."

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ConocoPhillips Expands Presence in Niobrara Play

- ConocoPhillips Expands Presence in Niobrara Play

Friday, July 29, 2011
ConocoPhillips

ConocoPhillips has entered into an agreement to acquire up to 46,000 net acres of leasehold from Lario Oil & Gas Company in the Colorado counties of Arapahoe, Adams, Elbert and Douglas. This agreement represents a significant investment by ConocoPhillips in this area south and east of the greater Denver metroplex.

"ConocoPhillips is pleased to have this opportunity to participate in the emerging Niobrara exploration and development play," said Larry Archibald, senior vice president of Exploration and Business Development at ConocoPhillips. "Building on the strong relationships developed by Lario, we look forward to working with all local stakeholders as a first step in demonstrating our commitment to act as a steward of this region's natural resources."

ConocoPhillips will become operator of the acquired leases and will begin exploration efforts as soon as possible with the acquisition of a 3-D seismic survey and drilling of test wells. The company has a long track record of safe and environmentally prudent development of unconventional plays in North America and will leverage the knowledge and expertise it has gained in plays such as the San Juan Basin, Bakken, Barnett and Eagle Ford.

"Lario Oil & Gas Company is pleased to make this significant transaction with an industry leader such as ConocoPhillips," said Mike O'Shaughnessy, President/CEO of Lario. "As demonstrated by ConocoPhillips' safe and successful history of developing unconventional plays, the project will be operated with the greatest regard for the local residents and environment, and for the benefit of all parties concerned."

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ION Expands AfricaSPAN Seismic Program

- ION Expands AfricaSPAN Seismic Program

Monday, July 18, 2011
ION Geophysical Corporation

ION Geophysical Corporation has successfully acquired 8,700 km of regional seismic data offshore Tanzania, Mozambique, and Comoros, adding to the 14,000 km of data the company previously acquired in the region in the first two phases of its East AfricaSPAN program.

Several recent large discoveries offshore Mozambique and southern Tanzania have created tremendous interest in the East Africa margin for oil exploration. This third phase of ION's East AfricaSPAN program provides the basis for an improved understanding of the hydrocarbon potential in this highly prospective region.

Ken Williamson, Senior Vice President of ION's Integrated Seismic Solutions group, commented, "Recent development activities in East Africa, particularly in Kenya and Tanzania, were initiated as a result of geologic insights provided by the first two phases of our East AfricaSPAN program. This additional dataset will provide important ties to the Southern petroleum provinces of East Africa in Mozambique and southern Tanzania, and help shape ideas for exploration in the rest of the margin."

East AfricaSPAN III was acquired using long offsets and a specially designed source optimized for deep penetration and imaging. The data will be processed using ION's GX Technology group's latest proprietary processing and imaging technologies. Pre-stack time migration (PSTM) results will be available in November 2011, with pre-stack depth migration (PSDM) results available December 2011.

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Atikwa Expands Roncott Development Potential

- Atikwa Expands Roncott Development Potential

Monday, July 18, 2011
Atikwa Resources Inc.

Atikwa Resources Inc. has significantly expanded the development potential of its Roncott property through a rolling option farm-in on 22 sections of land contiguous to its producing 7-27 well and the existing Roncott Field. Atikwa will pay 100% of the costs associated with the drilling of one vertical well to earn the right to participate in a rolling option on a 50/50 basis. The rolling option is designed to earn two sections of land for every additional well drilled.

The Company's 7-27 well is currently the best producing vertical well in the pool with stabilized production of approximately 20 barrels per day over the last year. Based on industry data, management believes that a horizontal well drilled into a similar quality Bakken reservoir could produce from five to seven times that of a vertical well. President Sean Kehoe stated: "We are very excited about finally being able to move forward with this play. We have been working for over a year with a number of entities in an effort to build a larger position in and around our successful 7-27 test well and the main pool. We now have enough running room in a Bakken pool that has a history of producing oil economically from vertical wells, due to that fact, this should be an exciting horizontal candidate."

The Roncott field in Saskatchewan was discovered in 1956 as a Bakken formation field that was capable of producing economic, 40 degree API oil, from conventional vertical wells. Government data estimates that there is 10 million barrels of oil in place, however over the life of the pool industry has only extracted about 8% of that or 800,000 barrels of oil from essentially four vertical wells. It is that remaining 9.2 million barrels that the Company plans to target and potentially expand with a horizontal drilling program.

Vertical wells in this pool will qualify for a 50,000 bbl royalty incentive volume with horizontal wells qualifying for 100,000 bbl under the same incentive; consequently the Company will only pay a 2.5% Crown royalty, during this period. The low royalties and the lighter quality crude oil, combine to give favorable cash netbacks for production.

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Endeavour Expands Marcellus Shale Footprint

- Endeavour Expands Marcellus Shale Footprint

Monday, July 18, 2011
Endeavour International Corporation

Endeavour International Corporation has entered into purchase and sale agreements with SM Energy Company and certain other minority owners to acquire the leasehold and producing interests held by SM Energy and its partners in the Marcellus shale in north central Pennsylvania, as well as a pipeline and related facilities for aggregate consideration of $110 million. The transaction provides Endeavour with significant production and reserve potential on acreage that is adjacent to the Company's existing Marcellus acreage and is readily available for development in one of the most economically attractive shale gas plays in the United States.

The assets include the following:

Approximately 50,000 net acres of leasehold with 100 percent operated working interests in McKean and Potter counties; Current production from three existing wells of approximately three to four million cubic feet of natural gas per day, including the Potato Creek #3H well that initially flowed 11 million cubic feet of gas per day and is expected to recover in excess of 4 billion cubic feet of gas;
100 percent ownership of Potato Creek LLC, which owns a midstream gathering system and related facilities in southern McKean County, including a 10-mile 16" trunkline connected and flowing to Tennessee Gas Pipeline's 24" mainline; and Proprietary and fully processed 3-D seismic survey covering the entire Potato Creek lease block.


Following the completion of the transaction, Endeavour's leasehold interests in the Marcellus Shale will total approximately 93,000 gross (68,000 net) acres. A new 7-year lease will be issued at closing on the key 21,000 net acre Potato Creek block that requires only five wells to be drilled in the first three years. Minimal capital is required over the next three years to hold all acreage in McKean County, including the key Potato Creek leasehold. The transaction is expected to close within 60 days and is expected to be financed with proceeds from the issuance of convertible debt securities.

"This acquisition represents a significant step forward in the growth of our domestic onshore business in a play that offers some of the highest returns in the United States today," said William L. Transier, chairman, chief executive officer and president. "The acreage is located on trend with several major industry developments and complements our existing acreage position in Cameron County immediately to the south. Our development model indicates recoverable natural gas potential from 1.0 to 1.3 trillion cubic feet with more than 300 identified drilling locations on our McKean and Cameron County leasehold. As operator of these assets, including the gathering infrastructure, we have the opportunity to accelerate our development plans in an effort to realize the value of our investment while expanding our position in this three county area."

Operational and Financial Update

Bacchus Update

The Rowan Gorilla VII rig has arrived at the Bacchus field and has commenced drilling operations for the three planned development wells. The Bacchus development is located in the Central UK North Sea and Endeavour has a 30% working interest in the field.

Senior Term Loan

In support of the Company's growth plans, Cyan Partners and certain lenders under the Senior Term Loan have amended the terms of the Company's Senior Term Loan and agreed to expand the facility by $75 million. Endeavour intends to use this additional capital to accelerate its development activities throughout the Company, particularly its Greater Rochelle development and its expanded position in Pennsylvania following the Marcellus acquisition.

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FET Expands Capabilities with SVP Products Purchase

- FET Expands Capabilities with SVP Products Purchase

Friday, July 08, 2011
Forum Energy Technologies Inc.

Forum Energy Technologies (FET) announced the acquisition of SVP Products. The company sells Forum's Wood Flowline and Phoinix product lines, including swivels, plug valves, relief valves, chokes, pup joints and manifold trailers from three facilities in North, East and West Texas. SVP also performs critical repair and recertification services of these products from its locations as well as from its fleet of mobile units. SVP's customer relationships and service capabilities strengthen Forum's Production and Infrastructure division, which provides completion products, engineered process and production systems, measurement and monitoring systems, construction and field services, and a full range of valve and other flow control products. Terms of the transaction were not disclosed.

Cris Gaut, FET's chairman and chief executive officer, explained the importance of the acquisition. "SVP significantly expands the sales channel and service capabilities for our completion products offering and complements our Wood Flowline and Phoinix completion product offerings. SVP has an excellent reputation in the marketplace for customer service, knowledge and dependability. We are very pleased to partner with Jay Nabors, SVP's founder, and the team at SVP. Our goal is to help expand SVP's business to serve clients across the North American shale plays."

Jay Nabors, President of SVP, commented on becoming part of Forum. "Forum is building a great company with a compelling offering to our pressure pumping customers. We are pleased to become part of an energetic, growing organization."

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Energy Law Firm Expands Attorney Roster

- Energy Law Firm Expands Attorney Roster

Thursday, June 30, 2011
Burleson LLP

With the addition of 25 attorneys to its offices in Houston, San Antonio, and Pittsburgh, Burleson LLP has broadened its regional and national footprint, further strengthening its ability to provide the widest range of legal services to companies and financial institutions in the oil and gas industry.

“Energy work has always been a major priority for our firm, but the surge of activity in shale plays has been critical in shaping our overall strategic direction,” said Rick Burleson, managing partner. “Our focus on growth – in terms of capabilities, attorneys, and physical office space – has extended our reach significantly, enabling us to work on some of the largest and most important transactions happening in the industry.”

The latest wave of expansion includes:

San Antonio. The firm added eight new attorneys and two partners to its San Antonio location to support litigation and oil and gas title matters for companies operating in the Eagle Ford Shale. The office, which now includes 17 lawyers, has moved to the Weston Center on the River Walk, where nearly 10,000 square feet of space has been leased on the seventh floor of the building located at 112 East Pecan St.

Pittsburgh. Eight lawyers and a partner have joined the Pittsburgh office, reinforcing the firm’s transactional and litigation practice areas for companies with interests in the Marcellus and Utica Shale. Since opening in September 2009, the location has grown from four to 26 attorneys.

Houston. Six new lawyers have been hired in Houston, where Burleson recently moved into new offices in the downtown Pennzoil Building, virtually doubling its square footage. The Houston location now occupies 20,407 square feet on the 11th floor of the building’s North Tower at 700 Milam.

With this growth, the firm’s portfolio of work in shale formations now includes clients in the Marcellus, Bakken, Barnett, Eagle Ford, Fayetteville, Haynesville, Utica, and Woodford plays, as well as those with a presence in the Permian Basin.

About Burleson LLP
Burleson LLP has earned a reputation as the energy law firm the energy industry goes to. It has grown significantly in recent years with over 85 attorneys and offices in Houston, San Antonio, and Pittsburgh, Pennsylvania. Serving clients in the upstream and midstream segments, the firm provides counsel to oil and gas producers, transportation companies, storage and processing businesses, and energy service providers. Burleson’s far-reaching experience includes mergers, acquisitions, and divestitures; finance; private equity; venture capital; securities; corporate governance and compliance; patents and intellectual property; title review; real estate; litigation; and bankruptcy/restructuring, land use, and environmental law. For further information, visit www.burlesonllp.com.

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Fountain Quail Expands Ops into Eagle Ford Play

- Fountain Quail Expands Ops into Eagle Ford Play

Friday, June 24, 2011
Aqua-Pure Ventures Inc.

Fountain Quail, a wholly owned subsidiary of Aqua-Pure Ventures, announced it will expand operations into the Eagle Ford Shale in South Texas through a subcontracting agreement with NAC Services, LLC, an affiliate of Noise Attenuation Construction Services. Terms of the agreement were not released.

Fountain Quail will initially send two Nomad units to NAC's water purification treatment center in Kenedy, Texas, to recycle wastewater generated during the process of extracting oil and natural gas from the Eagle Ford Shale. The Company expects to employ approximately 15 workers at the new facility, which will have the capacity to recycle roughly 5,000 barrels of flowback and produced water per day. The agreement calls for an initial term of five years, with the option to renew for another five-year term.

"We have been eyeing the Eagle Ford for some time, looking for the right opportunity to expand into this emerging shale play," said Jake Halldorson, chief executive officer of Calgary-based Aqua-Pure Ventures, the premier recycler of industrial wastewater in North America. "We're pleased to have negotiated a mutually beneficial relationship with NAC, and we look forward to bringing our industry-leading recycling technologies to a region where preserving fresh water resources is paramount."

Fountain Quail has developed and refined its patented, industry-leading technology for recycling flowback and produced water over the past seven years in North Texas' Barnett Shale. During that time, the Company has recycled more than 14 million barrels of shale gas wastewater that would otherwise have been injected into disposal wells and permanently removed from the hydrological cycle. The company's technology is also currently being utilized in the Marcellus Shale.

"We contracted with Fountain Quail because they provide the most advanced, cost-effective recycling technology in the industry," said Mando Gutierrez of Noise Attenuation Construction (NAC), LLC of Weatherford, TX. "The need for their services in the Eagle Ford is already great, and expected to grow exponentially over the months ahead."

In addition to recycling wastewater into distilled or treated water for re-use in hydraulic fracturing operations, Fountain Quail and NAC will sell the concentrated brine and other byproducts of the recycling process.

Aqua-Pure is currently evaluating opportunities to expand into additional shale plays across North America later this year.

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Trinidad Drilling Expands Rig Fleet

- Trinidad Drilling Expands Rig Fleet

Thursday, June 09, 2011
Trinidad Drilling Ltd.

Trinidad Drilling announced the acquisition of four drilling rigs that, following enhancements, will be added to its US drilling operations.

"We were able to purchase these rigs at a very attractive price and following their upgrades, they will be a good fit with our fleet of deep, technically advanced equipment," said Lyle Whitmarsh, Trinidad's

President and Chief Executive Officer. "The design and style of these rigs will work well in today's drilling environment, and by applying our drilling automation and electrical expertise to the rigs, we will be able to add efficient, high performing equipment to our fleet at a relatively inexpensive cost."

The total cost of the rigs is expected to be US $44 million, including the initial purchase price and subsequent upgrades. Following their enhancement, the rigs will be highly automated, 1,500 horsepower, AC triple rigs with a depth capacity of 20,000 feet (6,096 meters). The first rig is expected to be operational by the end of the third quarter of 2011 and the remainder will be ready by the end of the year.

The forecast annual EBITDA for these four rigs is expected to more than offset any EBITDA associated with the service rigs recently sold. In addition, the land rigs generate a stronger return on capital and align with the Company's strategy to narrow its focus towards contract drilling.

Following the completion of the 2011 and 2012 rig build program, Trinidad will have a total of 129 drilling rigs with 56 rigs in Canada, 70 rigs in the US and 3 rigs in Mexico.

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Linc Expands US Acreage with Tx., La. Acquisitions

- Linc Expands US Acreage with Tx., La. Acquisitions

Monday, June 06, 2011
Linc Energy Ltd.

Linc announced that its wholly-owned subsidiary, Linc Gulf Coast Petroleum Inc., has acquired 14 producing oil fields (consisting of 156 leases covering approximately 13,400 acres) from ERG Resources LLC., for a price of US $236 million. The acquisition secures immediate oil production of approximately 3,300 barrels per day (BOPD), and a significant CO2 enhanced oil recovery (EOR) opportunity.

The 14 oil fields purchased from ERG Resources are located in Texas and Louisiana and are within the Gulf Coast Onshore and Inland Waters Regions and include all related infrastructure such as pipelines, tank batteries and processing facilities. All of the fields are either salt domes or faulted four-way closures related to deep-seated salt movement. Independent reports commissioned by Linc Energy indicate that the fields have the potential to increase recoverable oil by up to 24 million barrels by optimisation of current production and additional drilling operations.

Cumulative production for the 14 fields is estimated to be over 700 million barrels of oil to date with a regional recovery factor of approximately 40%, indicating a significant potential to achieve substantial increases in production from Enhanced Oil Recovery (CO2 flooding).

All of the acquired fields in the asset package are 100% operated by ERG Resources, with ERG Resources also holding 100% of the working interest in the majority of the fields.

A significant factor regarding this acquisition is that ERG Resources has to date only advanced significant development into one area, the Barbers Hill salt dome, achieving some excellent results. There are 6 more salt domes in the asset package that Linc Energy can assess to drill and expand with similar techniques to those that ERG Resources has utilized on the Barbers Hill field.

Texas oil fields

12 of the fields are located along the Texas Gulf Coast and Texas inland waters areas. The majority of the value at this stage is attributed to 5 of the 12 fields, being Barbers Hill, High Island, Port Neches, Atkinson Island and Cedar Point. Linc Energy anticipates additional value being attributed to the remaining assets once further evaluation has been completed.

Louisiana oil fields

Portions of the Leeville Field and the Black Bayou fields are part of the ERG Resources assets in Louisiana. The majority of the immediate opportunity in Louisiana is in the 100% owned and operated Black Bayou field. This field is one area that Linc Energy plans to aggressively drill in the coming 12 to 24 months to build production.

Key terms of the Agreement

The key terms of the Asset Purchase Agreement between Linc Energy and ERG Resources are as follows:

• The purchase price of the assets is US $236 million (subject to completion adjustments and necessary consents from parties holding a "first right of refusal" over approximately 4,300 acres of the acquired oil fields).
• The assets purchased consist primarily of oil & gas leases, property interests (including all related infrastructure such as pipelines, tank batteries and processing facilities) and 410 wells upon the Texas and Louisiana oil fields which are held directly by ERG Resources or by three wholly-owned subsidiaries of ERG Resources. Linc Energy will acquire the assets held by ERG Resources and will acquire 100% of the equity interests in the ERG Resources subsidiaries.
• The total area of these leases is approximately 13,400 acres held across 156 oil & gas leases with 410 wells of which 177 wells are currently producing.
• Completion of the transaction and operational handover is scheduled for 1 August 2011.

To support this acquisition and future expansion plans in the USA Gulf Coast region, Linc Energy will be opening a new office in Houston, Texas prior to the transaction completion date. At completion, Linc Energy will become the employer of most of the experienced team of professionals (approximately 25 staff), covering both field and office operations, who are currently employed by ERG Resources. These arrangements will ensure continuity of operations on the oil fields immediately on handover.

Funding

While Linc Energy can fund this acquisition from cash, the Company has mandated RBS (The Royal Bank of Scotland) to complete the financing to support both the ERG Resources asset acquisition and the first year of capital expenditure upon the ERG Resources (Gulf Coast) and the Rancher (Wyoming) assets to support Linc Energy's development plans. This debt financing will have minimal recourse to Linc Energy and the financing process is well underway. Under the current financing proposal, Linc Energy will provide approximately 25% of the capital.

Peter Bond, Chief Executive Officer of Linc Energy, said, "This acquisition is the next big necessary step that Linc Energy has taken to meet its two key business targets over the coming 12 to 18 months. The first of these targets is to achieve in excess of 20,000 barrels per day of oil production by the end of 2012, with at least 10,000 barrels of production by the end of 2011. The second key target for the Company, supported directly by achieving this first target, is to develop very profitable, solid cash flows from operations."

"Linc Energy has a number of excellent assets and will continue to acquire more. These assets will be systematically developed over the coming years, but to support the Company's long-term strategic plans, Linc Energy needs to focus on developing strong operational revenues that can support our growth. The reality is, Linc Energy can gain a permit to drill an oil well in days or at most a few weeks; we can then drill those oil wells similarly within weeks, meaning the time difference from project commitment to cash flow can literally be a few months. If I dare compare that timetable with the years of effort it takes to gain a permit on a coal mine or a GTL facility, you get the picture pretty quickly why it's necessary for the Company to be dynamic in its approach and to focus upon our immediate entrepreneurial targets and produce strong cash flows."

"Linc Energy's strategic plans have resulted in the Company gradually re-focusing its energies over the past several months, shifting its long term focus into three distinct areas covering our short, medium and long term goals. We are building the Company on 3 distinct fronts in Oil & Gas, Coal & Clean Coal and Clean Fuel & Clean Energy. On the Oil & Gas front, we are pursuing oil production assets that yield immediate revenue and profits. We are targeting assets that have the potential to increase production initially with aggressive drilling and workover campaigns, whilst also providing excellent long term opportunity to multiply our returns with Enhanced Oil Recovery from CO2 flooding that in some cases can last 10 to 20 years. This philosophy positions Linc Energy to obtain solid cash returns in the short term and yet keep those assets profitable and growing for many years to come."

"This ERG Resources asset package is a great example of what I'm saying. First, we already have good daily oil production of approximately 3,300 barrels per day, which is currently cash flow positive. Secondly there is a clear drilling and workover plan in place which is anticipated to effectively double this production to over 6,300 barrels per day in the next 12 to 18 months, improving cash flows and increasing the value of the assets."

"Finally, Linc Energy expects to use about 75% debt funding to purchase the ERG Resources assets. I've always run Linc Energy as a low to no debt company. However, my philosophy with ERG Resources and assets like them is that you borrow on cash flow positive assets that have the capability to comfortably pay their own debt down, minimizing the risk, whilst leveraging the upside opportunity. Simply put, because Linc Energy is buying cash flow positive oil production assets which we believe can easily cover their respective debt arrangements; and because we expect to increase oil production in the short-term from these oil assets, we can lower real cost and risk of funding. Combine all of this with the strong Australian dollar and suddenly it makes perfect sense to debt fund these assets."

"Personally, I strongly believe that Linc Energy can grow to greater than 100,000 barrels of oil per day production within the next 5 years, and I'm pleased to say this ERG Resources acquisition is the first BIG step towards that very goal, whilst also ticking another Linc Energy milestone. As always I look forward to updating you on the journey ahead. There will be a lot to keep up with, because there is now a lot of traction in the business," Mr Bond said.

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Forum Expands Completions Products Position

Forum Expands Completions Products Position

Friday, May 06, 2011
Forum Energy Technologies, Inc.

Forum Energy Technologies, Inc. (FET) announced Thursday the acquisition of Phoinix Global LLC, a leading provider of high pressure flow control equipment and products utilized in hydraulic fracturing and flow back of oil and gas wells.

The company provides a complete product line including fluid ends, plug valves, relief valves, chokes, manifolds, manifold trailers and iron transport trucks from its facility in Alice, Texas. Phoinix's products and services strengthen Forum's Production and Infrastructure division, which provides completion products, engineered process and production systems, measurement and monitoring systems, construction and field services, and a full range of valve and other flow control products. Terms of the transaction were not disclosed.

Cris Gaut, FET's chairman and chief executive officer, explained the importance of the acquisition. "Phoinix Global significantly expands our completion products offering and complements our existing Wood Flowline product offering. Phoinix Global has an excellent reputation in the marketplace for customer service, engineering capability and reliability. We are very pleased to partner with the founders of Phoinix, Wade Pinkston, Scott Reeves, Kirk Baxter, and John Farias. Our goal is to help expand Phoinix' business to serve clients across the North American shale plays."

Wade Pinkston, President of Phoinix Global, commented on becoming a part of Forum. "FET is building a great company, and we are pleased to become part of an energetic, growing organization."
Forum Energy Technologies Inc., headquartered in Houston TX., is a global provider of manufactured equipment and applied products to the energy industry. FET's over 2,200 employees provide the products and technologies essential to solving the increasingly complex challenges of the oil and gas industry.

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Enserveco Expands Niobara Presence

Enserveco Expands Niobara Presence

Tuesday, May 03, 2011
ENSERVCO

ENSERVCO Corp., a provider of well-site services to the domestic onshore oil and gas industry, on Tuesoday announced it is expanding its presence in the active Niobrara Shale region of the Central United States, and has executed a lease on a new operations facility in Cheyenne, Wyo.

The Cheyenne site is being established to address growing demand in the northern portion of the Niobrara, where several current customers are accelerating horizontal drilling programs and making significant investments in new leases, infrastructure and personnel.

"This expansion parallels the geographic growth of our customers," said Mike Herman, chairman and CEO. "Between our facilities in Greeley, Colo. and our new Cheyenne site, we have established a major presence in what is becoming one of the nation's most active onshore exploration and production regions."

The Cheyenne facility will initially serve more than a dozen customers, including Chesapeake, Anadarko, Whiting and Exxon Mobil. The 5,400 sq. ft. facility, which is expected to be operational by Aug. 1, will sit on roughly four acres, and will stage a fleet of service vehicles that will include hot oiling, frac heating, acidizing and water hauling trucks, as well as well-site construction equipment.

Herman said, "Our growing workload in this region is significantly extending our busy season, as fluid heating needs in the northern Niobrara typically cover 10 months of the year. This is more than double the length of our heating season in the Marcellus Shale."

Through its two operating subsidiaries, Heat Waves Hot Oil Service and Dillco Fluid Service, ENSERVCO has emerged as one of the energy service industry's leading providers of hot oiling, acidizing, frac heating and fluid management services. The Company owns and operates a fleet of more than 200 specialized trucks, trailers, frac tanks and related well-site equipment. ENSERVCO operates in Colorado, Kansas, New Mexico, Oklahoma, Pennsylvania, Texas, Utah and Wyoming. ENSERVCO became a public company in July 2010 when it merged with Aspen Exploration Corporation, which is now doing business under the trade name ENSERVCO Corp.

Lundin Expands Presence in Barents Sea

Lundin Expands Presence in Barents Sea

Friday, April 15, 2011
Lundin Petroleum AB

Lundin has been awarded a new exploration license interest in the 21st Norwegian Licensing Round. The awarded license, PL609 is located in the Barents Sea.

Lundin Norway will be the operator of PL609 with 40 percent interest. The partnership comprises RWE Dea Norge AS and Idemitsu Petroleum Norge AS, each with 30 percent interest.

PL609 covers an area of 1,180 km2, and is located immediately east of license PL532 where Statoil recently made a significant oil discovery on the Skrugard prospect (7220/8-1).

Lundin Norway AS has a strong acreage position in the area with four operated licenses and one partner-operated license in addition to the new award. Lundin Norway will drill a well on the Skalle prospect, well 7120/3-2, scheduled to be spudded in the second quarter 2011.

BPD Zenith Expands Business

BPD Zenith Expands Business

Monday, April 04, 2011
BPD Zenith

BPD Zenith is expanding its business with the launch of new premises in Aberdeen.
The company specializes in the provision and support of IBM's Maximo Enterprise Asset Management (EAM) software, which is used by many North Sea operators to manage their maintenance and engineering operations. The new office is at Original House on Craigshaw Road where seven new and existing staff will be based.

BPD Zenith is headquartered in Carlisle and has driven its Aberdeen expansion plans forward on the back of a successful financial year, which saw the firm record a turnover of £2.5million – almost 40% more than figures recorded for the previous year.

George Lightfoot, managing director of BPD Zenith, said, "We are delighted to expand our presence in Aberdeen. Over the past few years we have been developing and growing our client base in the North east and we felt the time was right to open an office.

"We recognize the significant opportunities that the Aberdeen oil and gas sector presents as more North Sea assets are acquired by lower cost operators, many of whom are already our clients. To date, we have provided Maximo software implementation and customization services to support 25 successful asset transitions in the North Sea.

"We pride ourselves on providing a high level of expertise in the maintenance sector, which has enabled us to develop software solutions that can be tailored to suit the needs of individual clients.
"We are particularly looking forward to working with companies operating in the energy sector and intend to use our unique positioning as a company that specializes in EAM with a presence in Aberdeen to offer clients on site, local expertise, training and support with their asset management systems."

HWCG Expands Deepwater Capabilities

HWCG Expands Deepwater Capabilities

Wednesday, March 30, 2011
The Helix Well Containment Group

The Helix Well Containment Group (HWCG) announced it will substantially increase its subsea well containment capabilities this year by expanding its ability to control and contain a release in water depths up to 10,000 feet.

HWCG is a consortium of 22 deepwater operators in the Gulf of Mexico that has come together with the common goal of expanding capabilities to quickly and comprehensively respond to such an incident to protect employees, communities and the environment. HWCG's current system is capable of facilitating control and containment of spills in water depths up to 5,600 feet and will utilize Helix Energy Solutions Group's Q4000, the intervention vessel effectively used during the Deepwater Horizon response.

The system features a 10,000 psig capping stack.

By April 8, 2011, the system is expected to have increased containment capacity and capabilities for water depths up to 8,000 feet, as well as capture and processing capabilities of 55,000 barrels of oil per day and 95 million cubic feet of natural gas per day. In the coming weeks, HWCG will also add a 15,000 psig capping stack.

Full operational capability for water depths of up to 10,000 feet is anticipated mid-summer 2011.

"Our enhanced response and containment capabilities would exceed the depth of any well currently drilled or planned by the consortium's 22 members and would allow operators to control capping and containment stacks at the greater depths," said Roger Scheuermann, commercial director for HWCG.

Building upon equipment effectively used in the Deepwater Horizon response, HWCG has signed an agreement with Helix Energy Solutions Group to provide the primary components of the response. Additionally, HWCG has agreements in place with more than 30 service providers who will provide additional services, products and personnel, if needed.