Hess Boosts Utica Position with $750MM Acquisition

- Hess Boosts Utica Position with $750MM Acquisition

Thursday, September 08, 2011
Hess Corp.

Hess has acquired Marquette Exploration LLC and other leases in Ohio's Utica Shale, boosting its acreage position by 85,000 net acres at a cost of approximately $750 million.

The leases, in which Hess will have a 100 percent working interest, are in Jefferson, Harrison and Belmont counties. Appraisal activities on this acreage are planned to commence in the fourth quarter. Together with the previously announced joint venture with CONSOL Energy, the transactions provide Hess with approximately 185,000 net acres in the Utica Shale play.

"With these transactions, we have built a strategic acreage position in the Utica Shale, allowing us to strengthen our portfolio of unconventional resources in high quality assets, leverage our operating expertise and create significant potential for future growth in reserves and production," said John Hess, Chairman and CEO of Hess Corporation.

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Hess Bids High to Extend Utica Footprint

- Hess Bids High to Extend Utica Footprint

Wednesday, September 07, 2011
Hess Corp.

Hess has entered into an agreement with CONSOL Energy Inc. to acquire a 50 percent interest in CONSOL's nearly 200,000 acres in the Utica Shale in eastern Ohio for aggregate payments of $593 million.

"We are delighted with our entry into the Utica Shale, which enables us to build a strategic acreage position in an emerging unconventional play in the United States," said John Hess, Chairman and CEO of Hess Corporation. "We believe that this acquisition offers significant potential for future growth in reserves and production with most of the land either owned in fee or held by production with high net revenue interests. We are honored to partner with CONSOL, which has a long history and an excellent safety and operating record in the Appalachian basin. We believe that together our companies will build a profitable business and deliver important economic benefits for the residents of eastern Ohio."

Hess will pay CONSOL $59 million at closing, which is expected in October, and $534 million in the form of a 50 percent drilling carry of certain CONSOL working interest obligations over a five year period. The joint exploration and development plan calls for Hess to operate approximately 80,000 acres in Jefferson, Harrison, Guernsey and Belmont counties while CONSOL will operate approximately 120,000 acres elsewhere in eastern Ohio, including Portage, Tuscarawas, Mahoning and Noble counties. Appraisal drilling is expected to commence in the fourth quarter.

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Ithaca Finalizes Acquisition of Cook Stake from Hess

- Ithaca Finalizes Acquisition of Cook Stake from Hess

Friday, August 26, 2011
Ithaca Energy Inc.

Ithaca announced that further to announcements on April 4, 2011 and May 16, 2011, the Company has completed the transaction to acquire a 28.46% non-operated interest in the Cook oil field ("Cook") from Hess Limited ("Hess"). At completion of the transaction, Ithaca paid an adjusted cash consideration of US $57 million and transferred to Hess a 10% interest in three Southern North Sea exploration blocks. The transaction has been funded from the Company's existing cash reserves.

At completion, Ithaca is also entitled to an oil inventory of approximately 185,000 barrels. This inventory is anticipated to be lifted and sold in Q4 2011. The adjusted consideration does not reflect this anticipated cash receipt.

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Hess' Second-Quarter Net Surges 62% On High Oil Prices

- Hess' Second-Quarter Net Surges 62% On High Oil Prices

Wednesday, July 27, 2011
Dow Jones Newswires
by Tess Stynes & Ryan Dezember

Hess' second-quarter earnings soared 62% thanks to sharply higher oil prices and despite a wider loss for its marketing and refining operations.

Hess' performance in recent quarters has been boosted by high oil prices, as well as improved demand for gasoline and diesel products. However, its marketing and refining business has continued to lag.

Hess reported a profit of $607 million, or $1.78 a share, up from $375 million, or $1.15 a share, a year earlier. Revenue climbed 27% to $9.81 billion.

Analysts polled by Thomson Reuters most recently forecast earnings of $1.94 a share on revenue of $10.08 billion.

Pearce Hammond, an analyst with Houston investment bank Simmons & Co., said that Hess' trading losses as well as those from its refining joint venture with Venezuela's state oil company were "major disappointments." Overall, the results "will likely weigh on the stock today," Hammond wrote in a note to clients.

Shares recently traded 3.13% lower at $70.80.

Earnings at the exploration-and-production segment, which accounts for most of Hess' profit, surged 53% despite lower production. Average prices, excluding hedging impacts, jumped 46% for oil and 6.5% for natural gas.

In the marketing and refining business, losses widened in the refining-and-trading segments, while marketing income strengthened by 65%.

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

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Falcon Finalizes Beetaloo Basin Transaction with Hess

- Falcon Finalizes Beetaloo Basin Transaction with Hess

Wednesday, July 13, 2011
Falcon O&G Ltd.

Falcon O&G announced that the Beetaloo Basin Evaluation and Participation Agreement between Falcon Oil & Gas Australia Limited ("Falcon Australia") and Hess Australia (Beetaloo) Pty Limited ("Hess Australia") dated April 28, 2011 (the "Agreement") is now in effect and the seismic survey phase of the project will begin once the necessary regulatory permits are finalized.

On closing (July 13, 2011) Hess Australia made a US $17.5 million payment to Falcon Australia. Hess Oil and Gas Holdings Inc. ("Hess") also paid Falcon US $2.5 million and Falcon issued Hess a warrant exercisable for 10,000,000 common shares in the capital of Falcon ("Common Share") at a price of CDN $0.19 per Common Share for a period from November 14, 2011 until January 13, 2015. Upon receipt of all necessary regulatory permits, Hess Australia will commence the process of acquiring seismic data over Exploration Permits 76, 98 and 117 in the Beetaloo Basin, Northern Territory, Australia (the "Agreement Area"). After completion, processing and interpretation of the seismic data, Hess Australia may elect to acquire 62.5 percent ownership in the Agreement Area and continue to the next phase of the work program which includes conducting a five well program to explore and appraise the Agreement Area, beginning in 2012.

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Paradise Well Sings for Hess Offshore Ghana

- Paradise Well Sings for Hess Offshore Ghana

Tuesday, June 07, 2011
Hess Corp.

Hess has filed a Notice of Discovery with the Minister for Energy of Ghana for the Paradise-1 exploration well in the Deepwater Tano / Cape Three Points license, offshore Ghana. The well encountered an estimated 490 net feet of oil and gas condensate pay over three separate intervals.

The well was drilled to a total depth of 16,436 feet in a water depth of 6,038 feet. Hess is the operator and has a 90 percent interest in the license, with Ghana National Petroleum Corporation (GNPC) holding the remaining 10 percent.

Hess will evaluate the well results and work with GNPC and the government of Ghana to plan future appraisal drilling.

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Hess Declares Quarterly Dividend

- Hess Declares Quarterly Dividend

Thursday, June 02, 2011
Hess Corp.

Hess declared a regular quarterly dividend of 10 cents per share payable on the Common Stock of the Corporation on June 30, 2011 to holders of record at the close of business on June 16, 2011.

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Mustang Services Lassoed for Hess' Expansion at Tioga Facility

- Mustang Services Lassoed for Hess' Expansion at Tioga Facility

Tuesday, May 24, 2011
John Wood Group plc

Mustang, a Wood Group company, has been awarded detailed design and procurement services by Hess Corporation for the expansion of its Tioga natural gas plant in the Bakken oil play in northwestern North Dakota. The project will expand the facility's capacity from approximately 110 MMSFD gas to 250 MMSCFD. The cryogenic gas plant will be designed for ethane recovery, full fractionation and sales of natural gas liquids (NGL).

Mustang Executive Vice President, A.J. Cortez, stated, "We are pleased that Hess has chosen Mustang to deliver our services for this significant onshore facility. We highly value our relationship with Hess and the fact that they look to us to provide both onshore and offshore oil and gas facilities."

Mustang has previously completed engineering design for Hess on their Elon/Okume project offshore West Africa, and all three facility expansions as part of Hess' ROZ/WBD project in west Texas and New Mexico, including the Seminole Gas Processing Plant. The Tioga project team is expected to peak at 150 personnel expending approximately 300,000 manhours. Engineering design services are expected to be completed in the 2nd quarter 2012.

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TWMA Wins Bakken Contract from Hess, Plans Major Expansion

TWMA Wins Bakken Contract from Hess, Plans Major Expansion

Wednesday, May 04, 2011
TWMA

Oil and gas environmental waste management contractor TWMA has been awarded a multi-million dollar contract by Hess Corporation to process, recover and recycle drilling wastes from their onshore drilling program in North Dakota, USA.

UK-headquartered TWMA will mobilise the market leading TCC RotoTruck processing equipment this month to process drilling wastes at multiple rig locations in the oil-rich Bakken shale, North Dakota.

The waste management agreement is a one-year contract with two one-year extension options.

The firm will create up to 100 jobs in the US over the next 12 months following the new deal with Hess and other recently secured agreements in the region, which includes its first contract in South America with another major operator

To accommodate expansion TWMA will move to a larger base in Houston with engineering facilities to support maintenance and service of equipment operating across the Americas.

The TCC RotoTruck is a pioneering technology solution designed to dispose of hydrocarbon-contaminated drilling wastes in a clean and environmentally friendly manner. It has revolutionized the handling of onshore drill cuttings worldwide.

The TCC RotoTruck is a compact, light and mobile version of TWMA's industry leading TCC RotoMill offshore unit, which is recognized by the UK Government Department of Energy & Climate Change (DECC) as "best available technology'' for treating drilling waste. The mobile truck-mounted unit separates hydrocarbon-contaminated drill cuttings into their constituent parts of water, solids and oil for reuse or recycling.

The technology treats drilling wastes at the source which reduces the volume of wastes and provides major safety and environmental benefits for operators. It also provides significant cost savings through simplified logistics and recovery of valuable drilling fluids through the process, which are then recycled. The technology has an impressive track record worldwide, particularly across the Americas where units have been operating since TWMA entered the US market in 2008. Game-changing technology such as the TCC RotoTruck is driving a step change in the way US operators choose to manage onshore drilling wastes.

US-based Ian Nicolson, vice president of business development Americas, said: "We are delighted to be awarded this contract by Hess to support their onshore drilling programs in North Dakota. There is a lot of interest in our TCC RotoTruck in the US especially since we are the only company in the world offering this type of fully integrated service to the region. We have a field proven track record of improving environmental performance for operators and clients."

He continued: "Our operational cost-advantage is achieved by maximizing the productivity of the equipment and reducing waste transportation costs. We estimate that the annual cost saving to our client for this project is a substantial value."

Greg Manry, onshore Americas drilling manager of Hess, said: "TWMA has unique technology that can help us continue to improve our performance and minimize our environmental footprint. We look forward to working with TWMA and building a long term working relationship with their team of waste management experts."

TWMA is leading the industry in designing, manufacturing and operating technologies that reduce the global environmental impact of onshore and offshore drilling operations. The firm's Americas base is in Houston, Texas. TWMA was formed in 2000 and it employs around 300 people at its bases in the UK, Norway, Americas, North Africa and Middle East.

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Falcon Announces Beetaloo Deal with Hess

Falcon Announces Beetaloo Deal with Hess

Monday, May 02, 2011
Falcon Oil & Gas Ltd.

Falcon Oil & Gas Ltd. ( "Falcon"), an international oil and gas exploration and production company, announced Monday that Falcon Oil & Gas Australia Ltd ("Falcon Australia"), Falcon's 73 percent owned subsidiary, has signed a Participation Agreement with Hess Australia (Beetaloo) Pty Ltd ("Hess"), an affiliate of Hess Corporation, for the acquisition of an interest in onshore Exploration Permits 76, 98 and 117 in the Beetaloo Basin, Northern Territory, Australia (the "Agreement Area").

The terms of the agreement remain as outlined in the Letter of Intent between the two companies announced on February 22, 2011. In brief, and subject to certain regulatory approvals and standard conditions, Hess will earn a 62.5 percent working interest in approximately 25,200 square kilometers (6,227,500 acres) by making a payment to Falcon Australia, acquiring warrants in Falcon Oil & Gas Ltd., conducting an extensive seismic program, and drilling five wells to explore and appraise the Agreement Area. Hess has the right to withdraw from the project following the seismic evaluation and again following the drilling phase, in which event the entire interest would transfer back to Falcon Australia. In addition to its 37.5 percent working interest in the joint acreage, Falcon Australia will retain 100 percent ownership in the entirety of EP99 and 405 square kilometers (100,000 acres) in EP98.

The seismic survey is anticipated to commence once necessary government and land users' approvals are obtained. Falcon Australia will also carry out its work planned for the Shenandoah-1 well, commencing with re-opening and casing the existing wellbore planned for the third quarter 2011, followed by a comprehensive testing program.

Falcon Oil & Gas Ltd. is an international oil and gas exploration and production company, headquartered in Denver, Colorado, incorporated in British Columbia, Canada, and trading on the TSX Venture Exchange under the symbol "FO." The company specializes in the business of unconventional and conventional oil and gas exploration and production and holds interests in prospective properties in Australia, Hungary, and South Africa. The company is focused on discovering, acquiring, and maturing a globally diversified portfolio of drilling opportunities with a goal of maximizing shareholder value through strategic relationships.

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Hess Reports Strong Q1, Beats EPS By $0.87, Revs Up 21% YoY

Hess Reports Strong Q1, Beats EPS By $0.87, Revs Up 21% YoY



Apr 27, 2011

Hess Corporation (NYSE:HES) reported Q1 EPS of $2.74 today, beating the consensus estimate for $1.87 per share. Revenues for the quarter were up 21% year-over-year to $10.22 billion, beating the consensus estimate for $9.45 billion.

Hess has a potential upside of 19.9% based on a current price of $80.67 and an average consensus analyst price target of $96.7.

Ithaca Acquires North Sea Assets from Hess

Ithaca Acquires North Sea Assets from Hess

Monday, April 04, 2011

Ithaca Energy Inc.

Ithaca has entered into an agreement to acquire a 28.46% non-operated interest in the Cook oil field and a 7.41% non-operated interest in the Maclure oil field ("Maclure") from Hess Limited ("Hess") for a consideration of US $74.5 million and the transfer from Ithaca to Hess of a 10% interest in each of exploration Blocks 42/25b, 43/16a and 43/21c ("the SNS blocks") in the Southern North Sea (the "Acquisition").

Cook, operated by Shell, lies in Block 21/20a in the Central North Sea. Gross average production from the field for 2010 was 7,940 barrels of oil equivalent per day ("boepd") of mainly oil (2,260 boepd net to Hess interest).

Maclure, operated by BP, is located in Block 9/19 in the Northern North Sea. The field produces mainly oil; gross average production from the field for 2010 was 5,857 boepd (434 boepd net to Hess interest).

Maclure production is temporarily suspended. Production is routed through the third party owned Gryphon Floating Production Storage and Offloading vessel (the "FPSO"), which broke some of its moorings in February 2011. The operator of the FPSO is taking measures to investigate and repair the mooring system.

The acquisition of Maclure is subject to preemption within 30 days of notification of the transaction by other parties in the Maclure field.

The Company has commissioned Sproule International Ltd ("Sproule") to provide a Reserves Audit Opinion on Cook and Maclure. The opinion from Sproule is anticipated in approximately 40 days from this announcement and, on receipt, the Company expects to make a further, more detailed announcement including information on reserves and other potential upsides associated with the Acquisition together with details, if any, of preemption by any Maclure parties. Following completion of the transaction, Ithaca plans to engage Sproule to undertake a further comprehensive evaluation of the new assets in accordance with the Canadian Oil and Gas Evaluation

Handbook ("COGEH") reserves definitions and evaluation practices and procedures as specified by National Instrument 51-101 ("NI 51-101").

Terms of the Acquisition

The Acquisition will be effected through a sale and purchase agreement ("SPA") between Ithaca Energy (UK) Limited, as the purchaser, and Hess Limited, as the seller. The SPA contains customary provisions for a transaction of this nature in the oil and gas sector and is subject to DECC and co-venturer approvals.

The Acquisition is expected to complete in Q3 2011 with an effective date of January 1, 2011.

Financing of the Acquisition

The Acquisition will be funded from existing cash. Evaluation of the Acquisition with Lloyds Bank Corporate Markets (previously referred to as 'HBOS') indicates that the Acquisition should support an increase in Ithaca's debt capacity of approximately US $45 million. In line with previous announcements on the Company's debt facilities, the overall size of the Company's debt facility is reasonably anticipated to increase from US $140 million to US $185 million. The Company has not drawn from this facility.

Iain McKendrick, CEO, commented, "This acquisition strengthens the Company's portfolio of producing oil assets and diversifies Ithaca's existing UK North Sea production base, whilst keeping decommissioning liabilities to a minimum. Significant non-operated interests, particularly in the Cook field, are highly strategic for the Company. It permits the Company to focus on extracting value from its existing operated portfolio, whilst being underpinned by additional non-operated production and cash flow being generated though the acquisition. Final negotiations to crystallize the transaction were conducted after the recent changes to the UK Fiscal system. Once again this demonstrates our capability to be opportunistic, execute accretive deals and build value for our shareholders".