Tethys Pumps Oil at Tajik Well

- Tethys Pumps Oil at Tajik Well

Tuesday, September 13, 2011
Tethys Petroleum Ltd.

Tethys gave an update on its operations in the Republic of Tajikistan.

Testing operations are underway on the East Olimtoi EOL09 exploration well located south of the town of Kulob some 10 km north of the Afghan border. This well reached a total depth of 3,765 meters in the Akdzhar formation and testing operations are being undertaken on the overlying Bukhara and Alai formations.

Currently the well is flowing a mixture of completion brine and oil from the upper Alai sandstone interval, this oil being of good quality with an API gravity of approximately 36 degrees. The current section open to testing includes this upper Alai sandstone unit as well as the lower Alai limestone interval and the upper part of the Bukhara formation. The well was drilled with heavy drilling fluid (weighted with barite), which was required to control the well when it intersected the upper Alai reservoir. Barite is currently being observed in the flow lines which the company believes is also inhibiting flow at present. It is anticipated that the well will clean up in due course, however the cleanup period may take some time. The Company is currently evaluating methods of speeding up the clean up of this well including acidization or nitrogen-lifting using coiled tubing, subject to availability of equipment.

There are two further sandstone zones in the Alai formation which appear oil bearing based on wireline logs and which will be tested after a stable and representative flow rate has been achieved from the upper Alai sandstone unit. The lower part of the Bukhara interval was also tested but was found to have low permeability at this location although with the potential for production in future wells using production enhancement techniques such as hydraulic fracture stimulation. Mobilization of such equipment to Tajikistan would take a
significant amount of time, as such the company has chosen to focus on the upper zones of this particular well at this time.

The Persea 1 exploration well, located near the town of Kurgon-Teppa is progressing within the 12 1/4" hole section. This well is primarily targeting the Bukhara limestone formation in a four-way dip closed structure with the overlying Alai formation forming a potential secondary target. The planned total depth of this well is 2,700 meters and it is expected that this will be reached in October 2011.

Data collection for the gravity, gradiometry and magnetic aerial survey carried out over the 35,000 km2 Bokhtar Production Sharing Contract Area has now just been completed. This will provide additional and more aerially extensive data to complement the existing seismic acquisition with the final processed data and results expected in 4Q 2011.

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Ecopetrol Builds on Cano Sur Success

- Ecopetrol Builds on Cano Sur Success

Monday, September 12, 2011
Ecopetrol S.A.

Ecopetrol on Monday announced the initial test results of the CSE-8 ST1 exploratory well in the Puerto Gaitan jurisdiction, a municipality in the Meta Province, in areas belonging to the eastern block of the Exploration and Exploitation Cano Sur contract.

Production test to date show a stable average production of 532 barrels per day of API 13.8 grade oil, with water cut around 18.5%.

The exploratory well was designed with a deviated wellbore that allowed contact with a thicker net oil pay and a better location within the deposit. Drilling operations began on August 11, 2011 and reached an average depth of 4,594 feet in 7 days.

This new exploratory success brings to four the number of oil findings in Cano Sur Block during 2011, including Mito-1, Fauno-1 and Pinocho-1. This constitutes an important milestone in the exploration of this block, taking into account its importance for Ecopetrol's heavy crude oil growth strategy.

Results of initial tests show that this well has the highest productivity among the recently drilled wells in this region. Test were undertaken using an artificial lift system with an electric submersible pump.

This contract was signed in June 2005 with the National Hydrocarbon Agency (ANH, Agencia Nacional de Hidrocarburos). Ecopetrol is the sole operator and holder of 100% interests.

"Ecopetrol has identified a huge potential for heavy crude oil commercial production in the Llanos Basin. We are very pleased with this new discovery" said Ecopetrol's CEO Javier Gutierrez Pemberthy.

In the coming months, Ecopetrol will continue to evaluate production conditions and the performance of the deposit found, maintaining simultaneous exploratory efforts in the area of the Cano Sur Block in order to make a prompt commercial viability statement.

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Ivanhoe Makes Headway in Heavy Oil, Conventional O&G Projects

- Ivanhoe Makes Headway in Heavy Oil, Conventional O&G Project

Wednesday, August 10, 2011
Ivanhoe Energy Inc.

Ivanhoe reported financial results and operating highlights for the second quarter of 2011. Ivanhoe Energy has filed its quarterly financial report on Form 10-Q with the United States Securities and Exchange Commission and its Interim Financial Statements with the Canadian Securities Administrators for the period ended June 30, 2011.

Highlights

• In June the Company obtained broader and more extensive patent protection for its HTLTM intellectual property in Canada. This patent builds on and complements other issued and/or filed patents related to the core HTLTM technology and its petroleum applications. The portfolio includes the core patent, issued in the first quarter of 2011 related to the underlying HTLTM technology, which expires in 2028.
• The Company announced that heavy crude oil extracted from its IP-5B well in the Pungarayacu field in Block 20 in Ecuador was successfully upgraded to local pipeline specifications using the Company's proprietary HTL upgrading process.
• The Company issued Cdn$73.3 million of convertible unsecured subordinated debentures, maturing on June 30, 2016. A portion of the proceeds were used to repay a promissory note due to Talisman Energy Canada. The remaining balance of the funds raised will be used for ongoing capital and operating expenditures.
• Revenues were $9.5 million in the second quarter of 2011 compared to $6.1 million in the second quarter of 2010 due to a combination of stronger realized commodity prices and increased production. Higher volumes were allocated to Ivanhoe Energy for reimbursement of capital expenditures incurred at Dagang.
• In the second quarter of 2011, $6.5 million in cash flow was used in operations, consistent with $6.3 million of cash flow used in operations during the second quarter of 2010.
• The net loss for the second quarter of 2011 was $4.1 million compared to net income of $9.3 million for the second quarter of 2010, as a result of higher operating and general administrative expenses as well as lower non-cash foreign currency exchange and derivative instrument gains.
• General and administrative expenses were $11.7 million in the second quarter of 2011 compared with $9.1 million in the second quarter of 2010. The year-over-year increase stemmed from higher staff numbers associated with the Quito office build-out and our drilling operations in Sunwing, contract engineering work related to Ivanhoe's HTL technology and financing fees incurred in the recent Convertible Debentures issuance.
• The Company's cash and cash equivalents balance at June 30, 2011 was $133.3 million, which will be used to continue advancing Ivanhoe's ongoing projects in Canada, Ecuador, China and Mongolia.

"During the quarter we continued to prudently position Ivanhoe Energy to advance our heavy oil and conventional oil and gas projects," said President and Chief Operating Officer, David Dyck.

"In particular, the Company enhanced the intrinsic value of our heavy-to-light (HTL) upgrading technology by successfully testing it on Ecuadorian heavy crude and by securing patent protection to 2028 in key jurisdictions. We also put in place attractive new convertible debt financing to underwrite our operations and business development efforts."

Subsequent events

Zitong Block

Ivanhoe's wholly-owned subsidiary, Sunwing Energy, submitted the Provisional Overall Development Plan to the Joint Management Committee and PetroChina on June 30, 2011. As communicated in Ivanhoe's press release on June 15, 2011, this plan includes the acquisition of 3D seismic and the drilling of horizontal wells on the Block that will include multistage fracture stimulation. The Company is currently in discussions with PetroChina on final details of the Plan. This plan is to be conducted over the next 24 months.

Both the Yixin 2 and Zitong 1 wells have completed their respective long term built up tests and the down hole recorders have been recovered and the wells shut-in and secured. Data collected from these recorders has been delivered to contracted third-party tight gas experts to conduct detailed analysis and modeling of reservoir parameters and potential completion and stimulation techniques to assist the Company in developing exploitation programs on the Zitong Block.

Mongolia Block XVI

Sunwing is currently mobilizing the drilling equipment and supplies to N16-1E, its first exploratory drill site on Nyalga block XVI, which will be drilled on a structure approximately 32 sq km in size and to an approximate depth of 2500m. As of this date, the drilling rig is more than 75 percent assembled. Remaining minor drilling preparations will continue over the next few weeks, followed by the spud of Sunwing's first exploration well in Mongolia. Drilling of the well will take approximately 30 days, with completion and testing to be carried out as required. The Company intends to drill two wells initially, with the option to drill up to three additional wells, and remains optimistic of the potential to find oil resources in Mongolia.

Ecuador Seismic Program

As communicated in Ivanhoe's June 15, 2011 news release, Ivanhoe's wholly-owned Ecuadorian subsidiary commissioned a seismic program over the southern part of the Pungarayacu Block. The first phase of this program is now complete and analysis is still underway. Early interpretation is encouraging as it indicates deeper faulting, with the potential to trap lighter oil resources which could prove beneficial for blending purposes and overall project economics. Additionally, initial internal interpretations may also suggest an extension of the field beyond what was originally estimated.

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White House announces oil savings standards for heavy duty trucks, buses

- White House announces oil savings standards for heavy duty trucks, buses



Aug 9, 2011

The Obama administration announced new fuel efficiency and greenhouse gas pollution standards for work trucks, buses, and other heavy duty vehicles that it said will save American businesses who operate and own these commercial vehicles approximately $50B in fuel costs over the life of the program. Under the guidelines, trucks and buses built in 2014 through 2018 will reduce oil consumption by a projected 530M barrels and greenhouse gas pollution by approximately 270M metric tons.

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Hyundai Heavy Secures $1.12B Drillship Order for Rowan

- Hyundai Heavy Secures $1.12B Drillship Order for Rowan

Wednesday, June 01, 2011
Hyundai Heavy Industries Co. Ltd.

Hyundai Heavy said it clinched a $1.12 billion order to build two drillships for drilling contractor Rowan Companies Inc. on May 31. This contract also includes an option exercisable by Rowan to order an additional same class drillship.

The vessels, measuring 229 meters in length and 36 meters in width, are rated for operations in water 12,000 ft (3,657 m) deep. They are scheduled to be delivered by the second half of 2013.

Winning this order brings Hyundai Heavy's total drillship new orders this year to 9, worth USD 5 billion with options to build three more drillships. This is the most drillships of any shipbuilder in the world.

The drillships will be equipped with a thruster canister, saving time in maintenance and operating costs. A thruster canister is housing for the thruster, which helps keep the ship in position while it is drilling. Ships with a canister do not need to be drydocked for maintenance as the thruster can be lifted onto the ship when work needs to be carried out.

Drillships Hyundai Heavy builds use the drillship-specific Gusto P10000 design making the best use of vessel space for drilling. The design helps stabilize the drillship while operating and uses less fuel by making thrusters operate less. A position controlling system, a computer propulsion system, and seven blowout preventers will also be installed in the drillships to enhance safety.

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Hyundai Heavy Lands $600MM Order for LNG Carriers

- Hyundai Heavy Lands $600MM Order for LNG Carriers

Tuesday, May 31, 2011
Hyundai Heavy Industries Co. Ltd.

Hyundai Heavy won a US $600 million order to build two 155,000 m3 LNG carriers, including an option for another same class vessel, from Greece-based Dynagas Ltd.

These membrane-type LNG carriers are due for delivery in the second half of 2013. They will feature the Dual Fuel Diesel Engine System which allows the ship to run on oil fuel or natural gas. Due to tightening global regulations on carbon emissions, increasing demand for LNG as an alternative energy source after Japanese nuclear crisis, and price competitiveness of LNG in comparison with oil prices, Hyundai Heavy expects to see more liquefied natural gas carrier orders in the future.

As a part of the Company's long term strategy for the expected increase in demand for LNG carriers and LNG FPSOs, Hyundai Heavy has been actively developing a special welding system that can work on the thick aluminum plates used for the LNG tanks.

Winning this order brings Hyundai Heavy's total new orders in shipbuilding and offshore & engineering divisions so far this year to 42 ships worth of $10.5 billion, or 53% of the new order target of $19.8 billion.

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BP Kicks Off Ugnu Test on North Slope

BP Kicks Off Ugnu Test on North Slope

Monday, May 09, 2011
Alaska Journal of Commerce
by Tim Bradner

BP has started up the first of four North Slope wells in a $100 million project to test heavy oil production technologies in the Ugnu formation.

The Ugnu is a large accumulation of heavy oil, with about 23 billion barrels of oil-in-place estimated, that overlies existing conventional oil fields on the North Slope. Ugnu oil was produced in am experimental test well drilled by BP two years ago, BP spokesman Steve Rinehart said.

The oil is thick and flows with difficulty. It measured 12 degrees API in the test well done by BP previously, Rinehart said.

API is an American Petroleum Institute index for oil quality.

Heavy oil from Ugnu is seen by BP and others as one of three unconventional sources of oil production that could supplement declining conventional oil production on the North Slope.

The others are production of viscous oil, also a lower quality oil that is about 19 degrees API and which lies in deeper formations than the shallow Ugnu accumulation. Viscous oil is being produced now.

A third potential type of unconventional oil that could be produced is shale oil production from the large layers of shale on the North Slope that are the source rocks for the conventional oil fields now producing. Independent oil and gas company Great Bear Petroleum will drill a well in 2012 to test whether shale can be produced from North Slope shale rock.

The major challenge in producing oil from Ugnu is the thickness of the oil and its temperature, which is about 70 degrees Fahrenheit in the shallow formation. The oil lies just below the permafrost that under the North Slope -- the wells will produce from depths of about 3,800 feet to 4,400 feet -- and the oil, thick and cool, will have be made to flow upward through the 2,000 feet of frozen permafrost to the surface.

Rinehart said BP will test two production procedures in its project. One is a technique called cold heavy oil production with sand, or CHOPS, that is now being used in Alberta to produce from oil sands. A second method involves producing the oil from horizontal production wells drilled laterally through the oil-bearing rock, a technique now common on the North Slope.

The first well, now producing about 350 barrels per day, is a horizontal well that was drilled 3,800 feet vertically and 3,500 horizontally, with 1,500 feet "perforated" for production, Rinehart said.

The second well is planned to begin production in May, he said. It will be a CHOPS well, Rinehart said, where a progressive cavity pump, an auger device, is installed in the well to create enough pressure to draw sand out of the formation to create fissures allowing the heavy oil to flow.

A progressive cavity pump also is installed in the horizontal well now producing to aid production, he said.

One of the problems in producing heavy oil, and also the somewhat higher-quality viscous oil, is sand that is produced up the well along with the crude oil. As oil is withdrawn from the weak rock that holds the heavy and viscous oil, sand is broken loose and flows with the oil into the well, where it can cause damage to the wells and the surface facilities that process the oil.

Companies producing viscous oil, including BP, have found ways to allow the sand to flow without causing damage, and to separate it from the oil at the surface.

In the heavy oil project a specially built processing facility separates and stores the sand until it can be trucked to an underground disposal well to inject the sand back underground.

Rinehart said the heavy oil also must be heated before it is pumped on by pipeline to Pump Station 1 of the Trans-Alaska Pipeline System, where it is mixed with other, conventional crude oil for shipment south.

"Our goal here is data collection, but we are also processing and selling the oil we produce," Rinehart said. The test production project is on S Pad in the Milne Point field.

"The project is going well so far. There is a lot of oil in place but there are a lot of production challenges. We need to ensure we can produce it on a sustainable basis. Once we understand the engineering and physics, we can have a conversation about the economics," Rinehart said.

BP's plan is for the test production program to be run for three to five years, Rinehart said. By then enough data will be in-hand to make a judgment on possible commercial production.

Copyright (c) 2011, Alaska Journal of Commerce, Anchorage. Distributed by McClatchy-Tribune Information Services.

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Tethys Oil Reports Heavy Oil Discovery in Oman

Tethys Oil Reports Heavy Oil Discovery in Oman

Wednesday, April 06, 2011

Tethys Oil AB

Tethys Oil reported that work on well SE-7 on Block 4 onshore the Sultanate of Oman has been completed. The well encountered several intervals of heavy oil, but no flows were established. The rig has moved to Block 3 to drill the Farha South-7 well.

SE-7 successfully reached a total depth of 1,890 meters, where the main target was to test the presence of oil in the Khufai section in the southern part of the Saiwan East structure. The well identified a more than 90 meter thick column of intermittent heavy oil saturation in the upper parts of the Khufai. A limited test program was run, using a wireline MDT tool, but no flows were established. As expected heavy oil was also encountered in the shallower Buah, Miqrat and Amin formations. SE-7 has been temporarily suspended for possible testing and further study.

The rig has been moved to drill the Farha South-7 well ("FS-7") on Block 3, an appraisal well designed to test for the presence of oil in the Lower Al Bashir section nearby the Farha South-3 well, in the Farha South field. The drill site is located 425 meters southwest of FS-3, drilled in early 2009.

Tethys has a 30 percent interest in Blocks 3 and 4. Partners are Mitsui E&P Middle East B.V. with 20 percent and the operator CC Energy Development S.A.L. (Oman branch) holding the remaining 50 percent.

SpaceX's Next Rocket to be most powerful in the world

SpaceX's Next Rocket to be most powerful in the world



SpaceX's millionaire founder says his company has the "next big thing" in rockets by putting massive payloads into orbit for much less money than its competitors. And maybe to the moon and Mars as well.

The Falcon Heavy rocket has been on the drawing boards for years — but today's announcement by Elon Musk, SpaceX's chief executive officer and chief technology officer, signaled that the concept was on its way from the drawing boards to the launch pad.

Musk told reporters at the National Press Club in Washington that the first Falcon Heavy could be delivered to the launch pad as early as the end of next year, with the launch coming during 2013. Musk said the first demonstration would take place at Vandenberg Air Force Base in California. The price tag for a Falcon Heavy launch? An estimated at $80 million to $125 million, compared with up to $187 million for an Atlas 5 and roughly $1 billion for a shuttle mission. In the short term, the rocket would be offered as an alternative to the Atlas 5 or the Delta 4 for the U.S. military's Evolved Expendable Launch Vehicle program.

Pride Extends Option for Construction with Samsung Heavy

Pride Extends Option for Construction with Samsung Heavy

Friday, April 01, 2011

Pride International Inc.

Pride has reached agreement with Samsung Heavy Industries, Ltd. to extend Pride's option for the construction of a sixth ultra-deepwater drillship by 30 days. The extension of the option period does not impact the estimated unit construction cost or delivery schedule determined in December 2010, upon the order by Pride of a fifth ultra-deepwater drillship. The option may be exercised by the company on or before April 30, 2011, unless further extended on mutually agreed terms.