Commodity Corner: Oil Follows Stocks' Lead

- Commodity Corner: Oil Follows Stocks' Lead

Wednesday, September 07, 2011
Rigzone Staff
by Matthew V. Veazey

Thanks to a German court ruling supporting bailouts in the euro-zone, world equities markets posted healthy gains Wednesday. The WTI and Brent crude oil benchmarks followed suit.

Light sweet crude oil for October delivery gained nearly four percent to end the day at $89.34 a barrel. Brent, meanwhile, climbed 2.7 percent to settle at $115.80 a barrel. Buoying stock markets on both sides of the Atlantic as well as Asia was the German Constitutional Court's rejection of an attempt to block German involvement in bailouts of other euro-zone countries.

The Dow Jones Industrial Averaged gained nearly 2.5 percent while the S&P 500 and Nasdaq rose by 2.86 percent and 3.04 percent, respectively. In Europe, the London-based FTSE 100 finished more than 3.1 percent higher and the CAC 40 in Paris gained 3.63 percent. Major exchanges in Shanghai, Tokyo, and Hong Kong posted more modest increases.

The WTI traded within a range from $86.15 to $89.74 while the Brent contract price fluctuated from $112.81 to $115.98.

Natural gas for October delivery managed to break the $4.00 mark, peaking at $4.04 per thousand cubic feet. The midweek momentum faded by the close of floor trading, however, with the front-month contract settling at $3.94 for the second straight day.

October natural gas bottomed out at $3.90 Wednesday.

The price of a gallon of gasoline gained nearly nine cents to settle at just under $2.91, also the intraday high. The price floor during Wednesday's trading was $2.82.

Oil & Gas Post

Promote Your Page Too
LINK

O&G Pay Identified at Victory Energy's Jones County Well

- O&G Pay Identified at Victory Energy's Jones County Well

Monday, July 25, 2011
Victory Energy Corp.

Victory Energy, through its partnership with Aurora Energy Partners, announced that its Tx. Jones County, Nassau #1 well has reached target depth of 5,325 feet and is now entering completion.

Mudlog and multiple drillstem tests (DSTs) indicate the presence of two oil and gas pay zones exceeding fifty feet in thickness with several others measuring between ten and twenty feet in thickness. A seventy-foot (gross) oil and gas Pennsylvanian age formation will be the focal point of this initial completion. The targeted formation is expected to produce both oil and gas.

With a successful completion, the well will be production tested to determine rate, gas-to-oil ratio and pressure. An assessment of the type and size of production facilities will be determined by testing. Due to the high gas cut encountered during drilling, a gas delivery line is already being assessed.

This multiple pay zone discovery offers the opportunity for additional development and drilling on held acreage. The company, through its partnership with Aurora Energy Partners, holds a working interest of no less than 1.5 percent and up to 2.5 percent for each acreage block acquired.

Oil & Gas Post

Promote Your Page Too
LINK

McMoran Unveils Davy Jones Find; Affirms Shallow-Water Projects' Safety

- McMoran Unveils Davy Jones Find; Affirms Shallow-Water Projects' Safety

Wednesday, June 29, 2011
Dow Jones Newswires
by Tess Stynes

McMoRan confirmed that its ultra-deep drilling programs in shallow waters of the Gulf of Mexico can be pursued safely, and unveiled more finds in its Davy Jones prospect.

The company said its exploration activities have indicated the potential for large accumulations of hydrocarbons at the deeper depths.

Its shares were up 8.6% at $18 in recent premarket trading. The stock through Tuesday's close has risen 50%.

McMoran, which focuses on such "deep gas plays" has been pinning its hopes on the Davy Jones project, which the company has said has the potential to be one of the largest on the Gulf's shelf in decades.

This month, one of its wells in the Davy Jones prospect encountered 192 net feet of potential hydrocarbons. McMoRan is evaluating development options and expects to complete the well in the second quarter of next year.

The company late this year also plans to complete and flow test another well, which it previously reported logged 200 net feet of hydrocarbon pay. McMoRan holds a 60.4% working interest and a 47.9% net revenue interest in Davy Jones.

Other working interest owners include Energy XXI (Bermuda) with a 15.8% interest, Nippon Oil Exploration USA Limited at 12%, W.A. "Tex" Moncrief, Jr. at 8.8% and a private investor with 3%.

McMoRan late last year acquired Plains Exploration & Production Co.'s shallow-water operations in the Gulf plus other assets in a deal initially valued at $818.1 million.

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

Oil & Gas Post

Promote Your Page Too