SBM Offshore Clinches LOI for FPSO Lease Offshore Brazil

- SBM Offshore Clinches LOI for FPSO Lease Offshore Brazil

Thursday, August 11, 2011
SBM Offshore

SBM Offshore announced that one of its Affiliates and Queiroz Galvao Oleo e Gas S.A. (QGOG), have received two Letters Of Intent (LOI), one from GUARA BV and one from BM-S-9 Consortium, established by the companies Petrobras (Operator, 45%), BG E&P Brasil (30%), and Repsol Sinopec Brasil S.A. (25%) for a twenty year charter and operation of an FPSO for the Guará Norte development in the pre-salt area, offshore Brazil.

The Guará Norte field is located in block BM-S-9 in the Santos basin at approximately 300 kilometers offshore and 2,300 meters water depth. The FPSO will include topside facilities to process 150,000 bpd of production fluids, associated gas treatment for 6,000,000 Sm3/d with compression and carbon dioxide removal, hydrogen sulphide removal, and a water injection facility for 180,000 bpd.

It is the intention that the unit will be owned and operated by a consortium in which SBM Offshore's shareholding will not be less than 49.5% and not exceed 62.25%.

The project schedule foresees delivery of the FPSO in 35 months from LOI.

The non-discounted total of the revenues payable under this contract to the consortium, excluding escalation and bonus, amounts to approximately US $4.5 billion.

Oil & Gas Post

Promote Your Page Too
LINK

Primary Executes LOI for Southern Alberta Basin Bakken Fairway Lands

- Primary Executes LOI for Southern Alberta Basin Bakken Fairway Lands

Wednesday, July 27, 2011
Primary Petroleum Corp.

Primary Petroleum has agreed to move forward in executing a non-binding Letter of Intent ("LOI") to finalize a Farmout and Joint Operating Agreement (the "Agreement") with a major U.S. based Industry Partner on its 291,000 net acres under lease and option in the Southern Alberta Basin Bakken Fairway of NW Montana.

The completion of the transaction is subject to title and environmental due diligence and final documentation. It is expected to close on or before October 3rd 2011, when specific details of the formal agreement will be disclosed. Primary's current 3D Seismic and vertical drilling program will be ongoing during the due diligence and final documentation negotiation period.

"Primary looks forward to completing this transaction and moving forward with a strong Industry Partner to delineate and prove up our acreage position in the Southern Alberta Bakken Basin in NW Montana," states Mike Marrandino, President & CEO. "The Basin continues to be de-risked by Industry on both sides of the border and Primary is looking forward to the potential of confirming economic hydrocarbons over our lands. The next couple of years will be very exciting for the Company once this transaction is completed as it will enable Primary to fulfill its business objectives of evaluating its acreage with the added technical expertise and financial strength of a strong joint venture partner."

Current Pondera-Teton Work Program

Primary also advised that its current 3D Seismic program is underway on the Dupuyer Creek prospect. It is anticipated that both the Dupuyer Creek and Marias River seismic programs will be completed by the end of August. The seismic crew will then move south to continue with our Deep Creek East and Eureka Lake programs. To-date, the Company has identified three vertical drilling locations on its existing 3D Seismic that it completed in 2008 and is underway with the well site permitting process.

Oil & Gas Post

Promote Your Page Too

Magellan, Vaalco Sign LOI for Bakken Development in Montana

- Magellan, Vaalco Sign LOI for Bakken Development in Montana

Monday, July 18, 2011
Magellan Petroleum Corporation

Magellan Petroleum Corporation signed a letter of intent (LOI) with Vaalco Energy Inc. to begin work on developing the Bakken formation and deeper horizons within the East Poplar Unit and Northwest Poplar Field in Roosevelt County, Montana (Poplar).

The LOI terms remain subject to closing on a definitive Purchase and Sale Agreement ("PSA"). The LOI contemplates a farm-out to VAALCO of an operating working interest in all of the approximately 23,000 net acres of oil, gas and mineral leases covering the Bakken and deeper formations at Poplar.

VAALCO has agreed to acquire 65% in return for cash consideration and for bearing 100% of the cost to drill three wells by the end of 2012. Parties would then move forward together as 65% / 35% owners respectively to further develop the prospects.

Magellan will retain its current ownership for all formations above the Bakken, including the currently producing Charles and Tyler formations where all Poplar proved and probable reserves are located.

William Hastings, President and CEO commented, "After conducting evaluation drilling, coring, and petrography work, we remain very encouraged about a number of prospective horizons at Poplar. Our new partnership with VAALCO is another step, with a strong and experienced partner, toward monetizing this asset and accelerating near-term development and production, not only from the Bakken but also from the Three Forks, Red River and associated deeper formations there in Montana. Given existing oil and gas infrastructure, our summer recompletion/infill program, our shallow gas plans, and, now, our Bakken partnership, we will continue efforts to add value, and perhaps extend, our position in Montana.

Magellan is a US-based energy company principally engaged in the acquisition, exploration, development and production of crude oil and "stranded" natural gas. Magellan's strategy involves the exploitation of already discovered oil and natural gas properties worldwide into non-traditional, growing markets. The company's properties and exploration acreage are located primarily in Australia, the United Kingdom, and the United States.

Oil & Gas Post

Promote Your Page Too
LINK

SeaBird Secures LOI for 2D/3D Surveys in Far East

- SeaBird Secures LOI for 2D/3D Surveys in Far East

Tuesday, July 05, 2011
SeaBird Exploration plc

SeaBird provided a contract update regarding its business activities.

After completing half of her multi client survey in the Gulf of Mexico mid April, Osprey Explorer, will from mid July continue her multi-client survey following dry dock and standby waiting on environmental and other governmental approvals. This survey will be completed end August. Management expects cost recovery during the survey period including standby time with potential uplift following sales of survey data in the second half of 2011. She will then immediately mobilize for her previously reported survey in South America until early December 2011.

After completion of her current survey in South Africa around mid July, Northern Explorer will immediately mobilize for West Africa following an award for a survey with expected completion end September 2011 and thereafter commence a short survey through to end October.

SeaBird has received Letter of Awards for 2 further contracts for 2D/3D surveys in Far East, with expected completion January 2012.

These contracts have a combined value of about US $25-30 million. In addition, the harrier Explorer is continuing on her long term charter with PGS to mid September 2011.

CEO, Tim Isden, commented, "We are encouraged by the increase in volume and continuity in the 2D and low end 3D market. In addition we experience slightly firmer rates. SeaBird has a high quality fleet and an excellent reputation with clients, and this brings a higher expectation of awards. To date in 2011, SeaBird has reported contracts worth around US $70 million with potential MC sales uplift above that figure."

Oil & Gas Post

Promote Your Page Too
LINK

Prosafe Enters LOI with Talisman for MSV Regalia

- Prosafe Enters LOI with Talisman for MSV Regalia

Tuesday, June 28, 2011
Prosafe SE

Prosafe has been awarded a Letter of Intent ("LOI") by Talisman Energy for a 107 day contract using the MSV Regalia for accommodation support at the Yme facility in the Norwegian sector of the North Sea. On site operations are planned to commence early November 2011.

Total value of the contract for the firm period linked to the LOI is about USD 34 million.

Oil & Gas Post

Promote Your Page Too

EGPI Signs LOI for Tx. Acreage

- EGPI Signs LOI for Tx. Acreage

Monday, June 27, 2011
EGPI Firecreek Inc.

EGPI Firecreek has signed a Letter of Intent with Capco Resources of Texas to acquire the Brown Snyder Oil and Gas Leases covering over 640 acres located near Abilene, Jones County, Texas.

EGPI has already begun due diligence and project evaluations with CAPCO in anticipation of the acquisition, including proposed Well Recompletion and Enhancement Work programs. The Company has set a projected date of July 31, 2011, to complete the acquisition of the Brown Snyder property and its oil and gas interests.

The final acquisition will be subject to final negotiations, documentation and requisite approvals. The Company expects to acquire working interests and half of the corresponding 75% Net Revenue Interest associated with the oil and gas leases, including oil and gas reserves and all assets located in Abilene, Texas, inclusive of all surface equipment associated with seven of the nine existing wells that are to be reworked, and participation rights in all future drilling activities.

The proposed operator, Chan West Oil Corporation, is evaluating potentials for a rework program on five to seven of the existing oil wells on the Brown Snyder leases. The wells are currently drilled at a depth of about 3,000 feet, and the rework procedures proposed will consist of fracing the zone at a shallower depth of approximately 2,500 feet where offset wells have shown success.

Dennis Alexander, CEO and Chairman, stated, "We look forward to working with the CAPCO management in order to move forward now that we have entered into a Letter of Intent. We also continue our plans for growth within our oil and gas division, through the acquisition of the Brown Snyder lease interests." He further stated, "We believe the upside potential for production activity and enhancement on this property, utilizing modern state-of-the-art techniques, will present an excellent opportunity for the Company."

Oil & Gas Post

Promote Your Page Too

Statoil Signs LOI for New Sandsli Building

- Statoil Signs LOI for New Sandsli Building

Friday, June 24, 2011
Statoil

Statoil has signed a letter of intent with Skanska for the construction of the new office building at Sandsli in Bergen.

The work on the office building and adjacent infrastructure will start in early August, with completion scheduled for the first half of 2014.

"Our goal is to establish a joint workplace where we ensure optimal cooperation and knowledge sharing, so that our core activities are well equipped to further develop Statoil in the region. The new building will encompass all aspects of our business, and we can hardly wait until it is finished," said Jannicke Nilsson, Statoil's location manager in Bergen.

Around 60% of Statoil's activities on the Norwegian continental shelf are operated from Bergen, in addition to a significant amount of research work.

New Sandsli

When the project is complete in 2014, Sandsliveien will have a whole new look. In addition to the office building, the project will include construction of a new shared reception area and canteen, a new parking garage, new exercise facilities and a new outdoor area. A total of 55,000 square metres of new area will be built during the next three years.

"This is an important milestone for Statoil, and we look forward to working with Skanska on this project. For us, HSE and high-quality work will top the agenda," said Statoil's asset owner in Global Business Services, Svein Harald Storli.

Better infrastructure

The infrastructure in the area will also be upgraded with measures including a walkway between Sandslihaugen and Sandsliveien, as well as a new roundabout and entrance to Sandsliveien. Skanska was also awarded these activities under a separate contract.

"We are confident that the employees will like the changes slated for Sandsli, and we plan to keep them up-to-date throughout the project. A dedicated user project has also been established to ensure that the new office building will accommodate the needs of the organisation," said Storli.

Oil & Gas Post

Promote Your Page Too

American Standard Enters LOI for Shale Acreage

- American Standard Enters LOI for Shale Acreage

Thursday, June 02, 2011
American Standard Energy Corp.

American Standard has entered into four non-binding Letters of Intent (LOI) to acquire acreage in its three primary areas of operations: the Bakken of North Dakota and the Eagle Ford and Permian Basin plays of Texas and New Mexico. An LOI was signed for each of the following:

• Bakken: ASEN has entered into an LOI to purchase approximately 15,000 acres in the Bakken shale play of North Dakota. This acquisition would increase the Company's total acreage in the Bakken to approximately 48,000 net acres. The agreement covers acreage in the heart of the play being mostly in Mountrail, Burke, Williams McKenzie and Divide Counties. A significant portion also lies in the newest "hot spot" of the Bakken being Stark and Dunn counties.
• Eagle Ford: ASEN has agreed to a transaction that when completed will increase its acreage holdings in the Eagle Ford oil window from 10% Working Interest in 12,000 net acres (two rigs presently running with 8 wells in various stages of development) to a total of over 20,000 net acres. The average well on ASEC holdings has come in at Initial Production (IP) flowing daily rates in excess of 1,000 BOE. Upon completion of these acquisitions ASEN will have positions in LaSalle, Wilson, Gonzales and Maverick Counties.
• Permian Basin:
  • Wolfcamp Shale: West Texas: ASEN entered into an agreement to purchase 100% Working Interest in over 12,800 acres of the "Wolf camp Horizontal Play" (10,000 acres of which are Held By Production). This position is in the fairway of Crockett and Reagan Counties. The acreage is contiguous to the recent University of Texas leases auctioned in April for over $2,700 per acre by companies such as Pioneer, El Paso, Devon, EOG and Conoco Phillips.
  • Avalon, Wolf-Bone Play: South Eastern New Mexico. A tentative agreement has been reached whereby ASEN will acquire various non-operated working interests in over 65,000 gross acres (approximately 14,400 net acres). The leases are located in Eddy and Lea Counties including two 100 % Working Interest Sections on the Texas side being immediately to the south in Loving, Reeves and Culberson Counties. All of the acreage included in the agreement is Held By Production. Operators of the wells will be Apache, Yates Petroleum, Heyco, Oxy, COG, XOG, Nadel and Gusman, Mewbourne, Nearberg, Chesapeake, Devon and BP.

Recent entry of major oil companies and large independents in these plays has made it difficult for other companies to compete. However, upon completion of these acquisitions with its strategic partner, ASEN will be in a position to participate in a larger number of leases, which not only reduces risk but provides ASEN with more drilling opportunities normally available to a company of similar size.

Oil & Gas Post

Promote Your Page Too

Gold Oil Inks LOI for Seismic Survey Offshore Peru

- Gold Oil Inks LOI for Seismic Survey Offshore Peru

Thursday, May 26, 2011
Gold Oil plc

Gold Oil has signed a Letter of Intent with BGP Geoexplorer PTE Ltd with regard to the acquisition of a marine 3D seismic survey over Block Z34 offshore Peru. The survey is for a total of 500 sq km over the southern part of the license area. As previously announced, the Peruvian Ministry of Energy and Mines has recently approved the environmental permit (PMA) covering Block Z34 for shooting a maximum of 808 sq km of 3D seismic offshore. This initial survey comprises the first phase of 3D seismic over the license and a further (approx. 1,100 sq km) will be required to evaluate the northern area of this large and prospective block.

The vessel, the BGP Pioneer, is currently alongside Las Palmas de Gran Canaria and will mobilize shortly to the operations area. Steaming time to Peru will be approximately 20 days and it is expected, therefore, that the vessel will commence operations, after local clearances, around early July 2011. Total acquisition time is expected to be approximately 30 days from commencement of operations.

Richard Mew, Chief Executive commented, "I am very pleased that we have been able to make such quick progress following our recent placing and gaining environmental permits, in getting a high quality seismic contractor to begin our 3D survey. We expect to finalize the contract terms and to start operations early July. The pace of activity on this key asset has accelerated rapidly in recent months and we fully intend to move as quickly as we can to explore in detail this highly prospective block."

Oil & Gas Post

Promote Your Page Too

First Meadows Signs LOI in Belize

- First Meadows Signs LOI in Belize

Monday, May 23, 2011
New World O&G plc

New World O&G announced that its intermediary First Meadows has signed a non-binding letter of intent granting First Meadows (on behalf of the Company) a 45 day exclusivity period in which to undertake due diligence on two oil concessions totaling 560 sq km, located in the productive Petén Basin in Northwest Belize ('the LOI'). The LOI is non-binding save for granting First Meadows a 45 day exclusivity period in which to undertake due diligence on behalf of the Company, following which First Meadows has the right to transfer its rights under the LOI to the Company. Any potential investment by the Company would be in accordance with the Company's investing policy as set out in its Admission Document.

Overview:

• The LOI provides a 45 day exclusivity period to conduct due diligence on two concessions - Blue Creek and Gallon Jug, both named under one 560 sq km Production Sharing Agreement ('PSA'), located onshore Belize in the Petén Basin.
• The Company has engaged RPS Energy to undertake a competent person's report in the form of a letter of opinion ('CPR') to assist New World in determining the prospectivity of the PSA.
• Upon completion of the CPR and subject to the satisfactory completion of due diligence, it is intended that definitive transaction documents will be agreed in the form of a Farm-out and Operating Agreement with the Company being named as Operator, followed by the Company being named on the PSA for both concessions.
• The LOI contemplates (subject to due diligence including the CPR being satisfactory) a staged investment in 2D seismic, initially of US $500,000 but up to a total of US $2 million at the Company's discretion, followed by the right to acquire further interests on the basis of an agreed drilling program if the Company then decides to take the opportunity further.

New World CEO William Kelleher said, "We are delighted that this opportunity has materialized for us so quickly. As per the Company's stated investment policy, we are initially focused on opportunities in Central America, with particular emphasis on the highly prospective Petén Basin, Belize, where the Board believes that significant opportunities exist. This Project falls within our investment criteria and is particularly exciting as it is located in very close proximity to recent commercial discoveries."

Oil & Gas Post

Promote Your Page Too

Gulf Island Fabrication Signs LOI for GOM Hull Fabrication Proj.

Gulf Island Fabrication Signs LOI for GOM Hull Fabrication Proj.

Friday, April 29, 2011
Gulf Island Fabrication Inc.

Gulf Island Fabrication announced that through its subsidiary Gulf Marine Fabricators, it has signed a Letter of Award for the fabrication of a hull for a Williams deep-water Gulf of Mexico project. Revenue and man-hour backlog is included in the Company's consolidated backlog reported when the Company announced its earnings results for the quarter ended March 31, 2011.

SBM Offshore Secures LOI for EPCI Supply

SBM Offshore Secures LOI for EPCI Supply

Wednesday, March 30, 2011

SBM Offshore N.V.

SBM Offshore has executed a Letter of Intent (LOI) with OSX 2 Leasing BV, an indirect subsidiary of OSX Brasil and part of the EBX Group. This LOI will permit SBM to start project activities, including early engineering and procurement up to $25MM, relating to the future conversion, supply and installation of a floating production, storage and offloading vessel to OSX (FPSO OSX-2). The full EPCI contract for FPSO OSX-2 is expected to be executed within a month.

FPSO OSX-2 will be chartered by OSX to its customer OGX Petróleo e Gás Ltda. (OGX), also a company of the EBX Group, and will be deployed on oil fields in the Campos basin offshore Brazil. First oil is targeted by 3Q 2013.

Aker Solutions Awarded LOI for Fossekall-Dompap Project Development

Aker Solutions Awarded LOI for Fossekall-Dompap Project Development

Wednesday, March 30, 2011
Aker Solutions

Aker Solutions has been awarded a letter of intent (LOI) by Statoil for the engineering, procurement and construction of a subsea production system for the Fossekall-Dompap project on the Norwegian continental shelf. Aker Solutions estimates the contract value to be approximately NOK 1 billion.

Scope of work includes three template-manifold structures, 11 subsea trees, a control system and a tie-in system. The contract also contains several options for other field developments on the Norwegian continental shelf which Statoil may exercise.

"We are honored to be so deeply involved in this innovative fast track project. Our goal is to deliver optimum standardized technologies in order to satisfy our customers' requirements. We look forward to working with Statoil on these new frontiers, which offers further growth potential opportunities," said Mads Andersen, executive vice president of Aker Solutions' subsea business area.

Management, engineering and procurement of the subsea production system will be primarily performed at Aker Solutions' headquarters in Oslo, Norway. Fabrication of the subsea trees will be completed at the Tranby manufacturing center, Norway, production of the template-manifolds will be carried out at the Egersund yard,Norway, and the control system from Aberdeen, UK. Final deliveries will be made in 2Q 2013.

Fossekall-Dompap is a fast track project located north of the Norne field, 200 kilometers west from Sandessjoen and occupies blocks 6608/10 and 6608/11 in a water depth of approximately 380 meters.