Cougar O&G Bags Additional Leases in Alberta Land Sale

- Cougar O&G Bags Additional Leases in Alberta Land Sale

Monday, August 29, 2011
Cougar O&G Canada Inc.

Cougar O&G has acquired an additional 3 sections of land (1920 acres) at an Alberta Provincial Government land sale on Wednesday August 25, 2011.

These lands are on the southern boundary of lands we acquired in July of 2010 and the 3D seismic program conducted in early 2011. We believe there are extensions of reserves identified in the seismic and the Reserves Assessment and Evaluation of the new or previously unevaluated Trout Core oil properties of Cougar, released on July 14, 2011.

That review completed based on existing information in the public domain coupled with the extensive Cougar 3D seismic program placed a $77.4 million Cdn Net Present Value (NPV) discounted 10% for Proven (P1) plus Probable (P2) plus Possible (P3) and an estimated 2.7 million barrels recoverable P1+P2+P3 from the project. The report is based on a previously announced logical development plan with a 2-4 well drill program to be followed up with a 4-6 well program. Those programs are dependent upon financing.

William Tighe, CEO of Cougar provided, "We are pleased with the extension of the lands acquired based on the geological analysis with extensions of structures identified in the 3D seismic. Despite challenges from the horizontal well inconclusive results due to insufficient pumping capability with the equipment currently available to properly test that well, the continued Rainbow Pipeline shut in since late April and the resulting need to truck our oil to markets in a 12hr round trip per load often in inclement weather and at discounts to contract prices, the Slave Lake area wild fires in early May, during which the focus was to keep all the wells producing, - we in addition have kept the projects moving forward wherever possible.

The drilling program, as a drill ready program which is subject to financing, is ready to move forward as soon as financing is sourced. The engineering report identifies this project has the potential to add revenue, estimated cash flow with pay outs on the capital program in the 130 day range, and add substantial proven reserves once the wells have been producing for 6 months, while continuing our goal of attaining 2000 bbl/d production from operations."

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Land Camp to Serve Influx of Eagle Ford Workers in South Texas

- Land Camp to Serve Influx of Eagle Ford Workers in South Texas

Friday, August 26, 2011
Rigzone Staff
by Karen Boman

The exploration and drilling boom in South Texas' Eagle Ford shale play has drawn hundreds of workers to the region, crowding the existing hotels and housing beyond capacity. To meet housing needs, oil service companies that including Halliburton, Weatherford and Schlumberger invited Houston-based Remote Logistics International to set up the Three Rivers Lodge, a lodging camp for oil service workers in Three Rivers, Texas, approximately 70 miles south of San Antonio.

The facility, which held its grand opening on Aug. 6, is part of Remote Logistics' offerings of support services for both the offshore oil and gas industry as well as land camp harsh remote environments. For oil service companies, offering the housing is about safety. Workers driving great distances to and from work sites, and then looking for food on the way back to their lodgings, are more exhausted and at greater risks on the road, said Hud Gibbins, who works in business development at the company and helps directly oversee the lodge.

Founded by Jenny Savage, who comes from a background in hotel and restaurant management, Remote Logistics caters to what it considers niche markets like South Texas with facilities providing housing, laundry, meals and entertainment under one roof. Remote Logistics has handled catering and housekeeping duties for onshore and offshore rigs and facilities in the Gulf of Mexico and the Middle East for five years; the company also offers remote medical services for oil and gas operations. Remote Logistic's roster of clients includes Rowan and Cal Dive International.

Though the buildings are temporary, the landscaping and facilities feel more like a ski lodge, said Gibbins. The facility offers three meals a day, prepared by a culinary staff of four-star rated chefs from across the globe. The menu includes heart healthy offerings such as a salad bar and grilled chicken to southern fried chicken, biscuits and all the pies, cakes and cookies you can eat. Workers are sent out each day with a box lunch containing sandwiches, fruit and two bottles of water.

"The lodge caters to workers ranging from the mid-20s to 40s and 50s who are away from their homes and families for 21 days at a time," said Gibbins. "Offering food, entertainment and lodging under one roof, including a movie room, wireless internet and DVD players makes them feel more at home."

The facility offers 192 beds and 48 rooms. The lodge is made up of trailers 28 feet wide by 60 feet long, but the kitchen and rec room are each doubled up to make one 56 foot by 60 foot trailer. There are two dedicated to the kitchen and dining room, two for the reception, rec room, movie room and business center/conference room, six for crew quarters and bathroom/shower, and one for the camp boss and medic's office. A company spokesperson said the lodge is already almost entirely booked and additional buildings will need to be ordered to keep up vacancy given the enormous demand.

While Three Rivers was built with oil service workers in mind, the occasional traveler in the area would be welcome and receive the same treatment. In fact, some rooms are being set aside to accommodate hunters for the upcoming deer season. Three Rivers Lodge also will serve as a flagship facility for Remote Logistics training, said Gibbins, with all workers hired by the company will undergo training at the lodge before heading to assignments overseas.

Demand for worker housing is so great in South Texas, Remote Logistics has plans to open another lodging camp by year-end near Ashterton in Dimmit County or Cuero in DeWitt County to accommodate workers. Remote Logistics is conducting demographic work to determine the site for the new camp. The company also will begin offering its catering and housekeeping services to land camps geared towards the Bakken oil play, where the surge in exploration and production activity has created a similar influx of workers into North Dakota communities that lack the hotels and housing to accommodate all the newcomers.

Positive Outlook for Eagle Ford Development

Eagle Ford exploration and development activity has created positive economic output for South Texas, an area of the state that traditionally has had higher unemployment and lower income per household compared to other portions of the state, said Dr. Dominique Halaby, former director of the University of Texas at San Antonio's Center for Community and Business Research, who worked on a study of the Eagle Ford's economic impact on South Texas that was released earlier this year.

Since the Eagle Ford boom began, unemployment in South Texas has declined, going against the national trend of rising unemployment, and creating wealth for ranchers and farmers who have faced difficult financial times in the past, said Halaby, now a professor at Georgia Southern University, at the North American Prospect Expo in Houston earlier this month.

In 2020, Eagle Ford shale activity is expected to account to about $11.6 billion in gross state product, $21.6 billion in total economic output and support nearly 67,900 full-time jobs in the region.

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Oil Futures Land At Lowest In Almost 9 Months

- Oil Futures Land At Lowest In Almost 9 Months



Aug 8, 2011

Crude-oil futures on Monday settled at their lowest since late November as fear gripped markets following Standard & Poor's announcement late Friday to cut the U.S. debt ratings.

Crude for September delivery tumbled $5.57, or 6.4%, to $81.31 a barrel on the New York Mercantile Exchange -- the biggest one-day drop for a most-active oil contract since early May.

Oil had fallen 9.2% the previous week.

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Rowan Parts with Land Drilling Division

- Rowan Parts with Land Drilling Division

Wednesday, July 20, 2011
Rowan Companies Inc.

Rowan has entered into a purchase and sale agreement (the "Agreement") with Ensign United States Drilling (S.W.) Inc., a subsidiary of Ensign Energy Services Inc.("Ensign"), to sell Rowan's land drilling division for $510 million in cash, plus working capital of approximately $30 million. The Agreement is subject only to regulatory approval, which the Company expects to obtain within 60 days.

Matt Ralls, President and Chief Executive Officer, commented, "We are pleased to enter into this agreement with Ensign, as we continue to execute our stated strategy to separate non-core businesses. We expect that our after-tax proceeds, estimated at approximately $370 million, will be redeployed into our offshore drilling business and recently announced deepwater expansion. We believe our high-specification land rig fleet will be a strong addition to Ensign's global fleet of over 300 land rigs, and that our land division employees will have significant opportunities with such a large and well-respected operation. I want to personally thank all of the land division employees for their dedication and service over the years as part of the Rowan family, and wish them the best in their careers with Ensign."

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Commission Leases Land to Oil Company

- Commission Leases Land to Oil Company

Thursday, June 09, 2011
Knight Ridder/Tribune Business News
by Josh Mitchell, Wyoming Tribune-Eagle, Cheyenne

The Laramie County Commission on Tuesday leased county-owned mineral rights for oil development.

Pacer Energy Acquisitions of Gillette is leasing the 9.7 acres on Chalk Bluff Road, south of Cheyenne, from the county for $500 an acre for five years.

The county also may lease more than 800 acres of mineral rights at the Archer Complex east of Cheyenne to the same company.

Pacer Energy is a third-party land broker acting on behalf of Texas-based Anadarko Petroleum.

For the Chalk Bluff Road lease, the county will get 18.75 percent of the royalties from any minerals extracted.

"The parcel is located near an area where we currently have ongoing operations," Anadarko spokesman Brian Cain said. "Land acquisition is a normal part of early-stage oil and natural-gas exploration."

The county owns 50 percent of the mineral rights under the property, county attorney Mark Voss said.

That means the county will get 18.75 of the royalties on 50 percent of the minerals extracted.

Voss and County Commission Chairwoman Diane Humphrey both said they do not know who owns the other half of the mineral rights.

Pacer has offered the same lease rate and royalty percentage for the Archer land as well, Humphrey said.

The county owns 100 percent of the mineral rights the Archer property, which totals 875 acres.

Humphrey said she is pleased with the amount of money the county is getting for the Chalk Bluff Road lease. She said a royalty of 18.75 percent is "almost unheard of."

It could take two to three years to see revenue from royalties, Commissioner Gay Woodhouse said.

The Chalk Bluff Road land is unlikely to generate hundreds of thousands of dollars in royalties because it is a small parcel, Humphrey said.

But the county could make significant money if it leases the Archer property and it pays off.

At $500 an acre, the lease itself at Archer would generate over $400,000. In addition, the county would make money from the mineral royalties.

The commission will advertise the property to other oil production companies as well to get the best deal, Humphrey said.

Since it is taxpayer-owned land, the county has an obligation to get the most money it can from the property, Humphrey said.

Voss said the county will solicit offers for the Archer mineral lease until June 17.

Money made off the oil leases could help build a new fairgrounds at the Archer Complex, Humphrey said. Also, it could go toward county employees and road construction.

Voss said it is unusual for the county to own mineral rights as it usually only has surface interests.

In Wyoming, there can be two owners to a piece of property -- the surface owner and the mineral owner. For the most part, the county only owns the surface rights to property.

It is unclear how many acres of mineral rights the county owns.

Woodhouse supports the leasing.

"I am in favor of getting the money we can for the leases," she said. "It's a good source of revenue."

Some of the revenue could help complete the indoor shooting range at the Archer Complex, Woodhouse said. She added that there remains about $700,000 worth of work to finish the project.

Copyright (c) 2011, Wyoming Tribune-Eagle, Cheyenne

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