Treaty to Boost Production at Tx. Leases

- Treaty to Boost Production at Tx. Leases

Thursday, September 08, 2011
Treaty Energy Corp.

Treaty reported on its progress on the project to increase production on its Texas oil leases.

Stephen L. York, President and COO of Treaty Energy Corporation, stated, "We want our shareholders to know that our team has faced the hottest and driest summer in Texas since 1980. The extreme heat and dry climate have considerably affected ground conditions. These conditions have caused failures of equipment and electrical transformers which have led to a decline in the overall production on our existing wells."

Mr. York added, "However, the good news is that Treaty Energy's aggressive work-over plan has been able to offset the decline in production and has even greatly increased the production of the re-worked wells."

"Production on the first eight wells that have been re-worked increased from 8 barrels of oil per day to 26.5 barrels per day," explained Mr. York. He explained further, "Treaty Energy has also recently finished re-working an additional eleven wells, and after about a week of steady production, we are expecting to increase production to about 55 barrels of oil per day."

Treaty Energy has four other leases that are currently not producing as they require a work-over on the injector wells and electrical power lines. Work-over of these leases should be completed by the end of September and is expected to increase overall Texas production to 65 to 70 barrels of oil per day by that time.

Beyond the previously mentioned work-overs, Treaty Energy has 15 shut in wells spread over the Great Eight Leases that have been shut in for more than 12 months. Upon completion of all scheduled work-overs, the Company will then be able to more accurately evaluate the additional shut in wells and re-work them as necessary to bring them back into production.

Mr. York added, "The best estimate of Texas production on the currently owned and paid for leases will be 75 to 90 barrels of oil per day after the rework of the 15 shut in wells. Our goal by the end of 2011 is to be at 200 to 350 barrels of oil per day. This production number can vary based on the number of new wells that are expected to be drilled and completed. We expect to exceed 1,000 barrels per day by the end of June 2012. At $80 per barrel, this will translate to about $29.2 million in gross revenues annually from our Texas oil production alone."

CEO of Treaty Energy Corporation, Andrew Reid, stated, "I am pleased with the current production in Texas and noted that all re-works are being done from the bottom of the well to the top, including pressure testing of the tubing prior to re-installation in the wells. This type of work-over may initially cost more and require more time, however Treaty expects to avoid the higher operational costs that can be associated with stripper wells when using the traditional band-aid methods. Treaty's wells, once worked-over, will require much less maintenance compared to the average stripper wells."

Finally, Mr. Reid said, "We plan to release an update in the week of September 12th on the progress in Belize regarding the first well that we are expecting to drill later this month."

Oil & Gas Post

Promote Your Page Too
LINK

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."

Oil & Gas Post

Promote Your Page Too
LINK

Audit Slams Ca. Lands Panel for Failing to Collect Millions from Leases

- Audit Slams Ca. Lands Panel for Failing to Collect Millions from Leases

Wednesday, August 24, 2011
The Sacramento Bee, Calif.
by David Siders

The state is mismanaging oil and other leases on public land, failing for years to collect rent from some companies and costing California millions of dollars in lost revenue, the state auditor said Tuesday.

State Auditor Elaine Howle said in a blistering report that the State Lands Commission could have generated as much as $8.2 million in revenue from just a sample of the leases her office reviewed.

The commission "is not effectively managing its leases, and as a result it has failed to collect or generate millions of dollars in potential revenue for the state's General Fund," the report said.

Of the commission's nearly 1,000 revenue-generating leases, the report found 130 were past due on rent. In one case, Howle's office said, a marine services company remained on public land for more than 20 years without paying its $10,170 annual rent. The company itself, the report said, subleased the land and collected rent from its tenant.

Howle accused the commission of failing to adequately track the status of its leases, sometimes losing track of them. Her report said the commission failed to appraise its land as often as lease agreements allow and failed to quickly renew expired leases, missing opportunities to increase rent.

The State Lands Commission manages about 9 million acres of land granted to California by the federal government when it became a state, including tidelands and submerged lands on California's coast and rivers. Of its revenue-generating leases, the commission manages about 85 oil and gas, geothermal and mineral leases, and about 900 agricultural, commercial and other leases, according to the audit report.

The three-member commission consists of Lt. Gov. Gavin Newsom, Controller John Chiang and Finance Director Ana Matosantos.

Commission Executive Director Curtis Fossum blamed staffing reductions. He agreed with many of the auditor's recommendations but said in a written response that the commission has endured severe staffing cuts, from 242 general fund positions in 1991 to about 63.

He called the commission staff "a relatively small, hardworking and professional group dedicated to acting in the state's best interest."

Fossum also criticized the auditor for selecting to review in depth a 35-lease sample he said is not representative.

"What is clear is that this was not a representative sample of State Lands Commission leases, but rather a subjectively selected list of leases chosen to highlight specific problem areas," Fossum wrote, adding that the report relies on examples that "distort the bigger picture of commission successes."

AT A GLANCE

State Auditor Elaine Howle said that of the State Lands Commission's nearly 1,000 revenue-generating leases, an audit found 130 were past due on rent. In one case a company remained on public land for more than 20 years without paying its $10,170 annual rent, the report said.


Copyright (c) 2011 The Sacramento Bee (Sacramento, Calif.)

Oil & Gas Post

Promote Your Page Too
LINK

ExxonMobil Seeks to Retain Julia Leases in GOM

- ExxonMobil Seeks to Retain Julia Leases in GOM

Thursday, August 18, 2011
Rigzone Staff
by Karen Boman

ExxonMobil has filed a lawsuit against the U.S. Department of the Interior (DOI) to retain three federal offshore leases that are part of the Julia unit in the deepwater Gulf of Mexico.

The company filed the suit in the U.S. District Court in Lake Charles, La., stating that DOI has retroactively applied new legal standards in canceling the leases, departed from established agency practices, and singled out ExxonMobil for unprecedented adverse treatment. ExxonMobil also said the cancellation would prevent it from producing a reservoir believed to hold billions of barrels of oil.

ExxonMobil is operator of the Julia unit on Walker Ridge Block 627, which is comprised of Walker Ridge Blocks 584, 627, 628, 540 and 583; the first three are the original leases issued to ExxonMobil’s predecessor, Mobil Exploration and Production in 1998. The two additional leases were acquired by ExxonMobil and partner Statoil at the request of the U.S. Minerals Management Services (MMS) when it applied to develop the Julia discovery. ExxonMobil holds a 50 percent title interest in each of the leases within the Julia unit. Statoil holds the remaining 50 percent interest. ExxonMobil and Statoil announced the Julia discovery in the deepwater Gulf in January 2008.

The company contends that it is allowed under the law to suspend production in their fields in recognition of the time and planning needed to tie back subsea wells to deepwater host facilities. ExxonMobil had originally filed for a suspension of production (SOP) order for the three original Julia leases in 2008, saying it needed time to determine its drilling and development program for the Julia discovery, one of several pre-Tertiary deepwater discoveries made over the past decade.

MMS told ExxonMobil it needed to include Walker Ridge Blocks 540 and 583 to promote an expedite exploration and development. The company withdrew its original SOP request with the intent of submitted a new SOP for the entire Julia unit with the additional leases. ExxonMobil and Statoil acquired the two additional leases at a cost of over $60 million days before the end of the primary term of the original Julia leases. In the meantime, it continued drilling and development plans, investing $300 million dollars on the Julia discovery and drilling two producible wells. However, MMS denied the SOP request in 2009, saying it failed to show commitment to development the discovery.

ExxonMobil said MMS did not clearly specify what ExxonMobil needed to do to receive approval of the requested SOP and supplemented its original SOP request with numerous emails and letters demonstrating its commitment to produce the Julia discovery. ExxonMobil said it also made clear that if a plan to tie-back Julia to the Jack-St. Malo host facility was deemed insufficient that it would develop the Julia discovery as a standalone alternative.

The company said that MMS had granted more than 2,200 requests for SOPs for individual leases in the Gulf from 1994 through 2008 and denied only 33 such requests, and had often granted a series of sequential SOPs for a single lease or unit, resulting in delays in production commencement for periods of longer than five years after the initial SOP was granted. ExxonMobil noted that cancellation of the leases would give DOIG the opportunity to collect millions of dollars in bonuses and royalties that it would be entitled to collect if the original Julia leases are not canceled.

Oil & Gas Post

Promote Your Page Too
LINK

US Senator Pressures Regulators to Extend Drilling Leases

- US Senator Pressures Regulators to Extend Drilling Leases

Wednesday, August 03, 2011
Dow Jones Newswires
WASHINGTON
by Tennille Tracy

Sen. David Vitter (R., La.) is trying to pressure the Obama administration into extending hundreds of oil-drilling leases in the Gulf of Mexico.

In an announcement Wednesday, Vitter said he would block the nomination of a top official to the U.S. Interior Department until the department extends drilling leases set to expire this year.

Vitter contends the Interior Department adopted policies in the wake of the Deepwater Horizon oil spill that hampered drilling activity. As a result, he says companies should be allowed to operate for more time on their existing leases.

Vitter says there are more than 300 offshore leases in the Gulf of Mexico that are set to expire this year.

"If these leases are allowed to expire, they will revert to the federal government, killing jobs and cutting off potential revenue from exploration and production," Vitter said in a statement.

A spokesman for the Interior Department called the senator's move "perplexing" because the department has already taken steps to grant lease extensions. In June, for example, the Interior Department outlined a basic set of the criteria under which it would grant extensions.

"Sen. Vitter's request is perplexing, and we expect that he will lift his hold since we took action on this a month-and-a-half ago," spokesman Adam Fletcher said.

Vitter has been one of the most vocal critics of the administration's decision to impose a temporary ban on deepwater drilling in the wake of the oil spill. He has also complained about the pace of new permitting in the months since the ban was lifted in October.

Earlier this year, Vitter blocked the nomination of Daniel Ashe as director of the Fish and Wildlife Service until the Interior Department issued 15 deepwater exploration well permits. Vitter has since lifted his hold and Ashe has been confirmed to the post.

This time around, the senator is putting a hold on the nomination of Rebecca Wodder to become the assistant secretary for fish, wildlife and parks at the Interior Department.

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

Oil & Gas Post

Promote Your Page Too
LINK

Leni Farms-In Trinidad Leases

- Leni Farms-In Trinidad Leases

Monday, July 25, 2011
Leni Gas & Oil plc

Leni Gas & Oil announced an agreement to farm-in to the Advance Oil Company (Trinidad) Limited ("Advance") North Moruga area leases. LGO plans to work-over existing producing wells and drill up to nine (9) new wells on the leases.

The Heads of Agreement with Advance sets out the framework for a full farm-in agreement and joint operating agreement by which LGO will:

• take over operatorship of the Advance leases,
• reactivate production from the existing wells on the leases,
• drill a minimum of three (3) exploration and up to six (6) development wells,
• obtain an immediate 33% interest in net production revenues,
• on conclusion of the farm-in work program, and depending on the number of wells drilled, earn between 33% and 49% interest in the Advance leases.

A signature bonus of TT$250,000 (US $39,000) has been paid to Advance and gives LGO exclusivity to conclude the definitive agreements and assignment of interests envisaged under the Heads of Agreement.

Advance, have held the North Moruga leases for a number of years, during which they have integrated all existing geological and production data and have already drilled three (3) exploration wells. Importantly, they have also acquired the environmental baseline data necessary to facilitate the permitting of further new wells. The leases cover an area of 1,223 acres and lie less than 5 kilometers east of the West Moruga Field which has produced 25 mmbbls of oil and 3.5 kilometers west of the Innis, Antilles and Trinity Fields which have produced approximately 15 mmbbls of oil.

Short-term production potential from the existing wells is estimated to be of the order of 120 bopd and LGO has agreed to spend up to TT$300,000 (US $47,000) during 2011 to raise the production to at least that level.

The definitive agreements require approval and a formal assignment of interests by the Trinidad and Tobago Ministry of Energy and Energy Affairs. These agreements are anticipated to take up to 90 days to obtain. The first new well will be drilled as soon as practical after interest assignment, likely to be in late 2011.

Neil Ritson, Chief Executive Officer commented, "This is the first of a number of new opportunities that LGO is negotiating in Trinidad as we seek to significantly increase our operations there. The Advance leases lie in a highly prospective, but under-explored, part of the Southern Basin and the combination of existing proven reserves and several undrilled structures is especially attractive."

Oil & Gas Post

Promote Your Page Too
LINK

Synergy Sells Leases in Denver-Julesburg Basin

- Synergy Sells Leases in Denver-Julesburg Basin

Thursday, July 21, 2011
Synergy Resources Corp.

Synergy has sold certain mineral interests in 2,400 gross acres (1,355 net) in the Denver-Julesburg Basin for a total purchase price of $3,386,350 to an independent oil and natural gas company.

The leases are undeveloped and are located in Weld and Morgan Counties, Colorado. Use of proceeds from the sale will be directed toward further developing the Company's core oil and liquid-rich natural gas properties in the DJ-Basin's Wattenberg Field.

William Scaff, Vice President of Synergy said, "As a relatively small DJ-Basin player, we are continuing to seek new ways to maintain our strategic assets, expand our drilling program and maintain a strong balance sheet. The sale of select undeveloped acreage in Weld and Morgan Counties accomplishes these objectives. We divested a very small portion of our acreage position for proceeds of $3,386,350 and retained an overriding royalty interest on these properties. At the same time, we continue our disciplined approach towards the growth of the company."

Oil & Gas Post

Promote Your Page Too
LINK

Oilsands Quest Receives 15-Year Leases for Axe Lake

- Oilsands Quest Receives 15-Year Leases for Axe Lake

Friday, July 15, 2011
Oilsands Quest Inc.

Oilsands Quest has received approval from the Government of Saskatchewan to convert portions of the Axe Lake permits to 15-year leases. These leases, the first oil sands leases in Saskatchewan, are one of the key elements the Company needs in place to proceed to development of a commercial oil sands production facility.

"These leases mark a key milestone in our path forward," said Garth Wong, Chief Executive Officer of Oilsands Quest. "In the past, some potential investors have expressed concern about the short term permits under which the Axe Lake lands were held. The 15-year leases will give us the certainty of land tenure we need to underpin commercial development at Axe Lake. The Government of Saskatchewan has demonstrated its commitment to oil sands exploration and development, and we appreciate its confidence that Oilsands Quest will be able to deliver on the value of these assets both for our investors and for the people of Saskatchewan."

The two leases, OSA00001 and 0SA00002 will be governed under the terms of the Petroleum and Natural Gas Regulations, 1969 and will expire on March 31, 2027.

Oil & Gas Post

Promote Your Page Too
LINK

Northwest Territories Oil Exploration Leases Fetch $558MM

- Northwest Territories Oil Exploration Leases Fetch $558MM

Tuesday, July 05, 2011
Dow Jones Newswires
CALGARY
by Edward Welsch

Oil companies bid C$536 million (US $558 million) for oil exploration leases in Canada's Northwest Territories, a Canadian government development agency said, with Husky Energy making the largest bid.

Calgary-based Husky, Canada's fifth-largest energy company, bid C$376 million for two oil exploration leases in the Mackenzie Valley, just south of the Arctic Circle. Houston-based ConocoPhillips bid C$67 million, while Shell and ExxonMobil-controlled Imperial Oil each bid C$43 million.

"These lands represent a strategic opportunity for us," Husky spokeswoman Colleen McConnell said. "Expanding into frontier areas is something we continue to look at."

Husky had previously made oil and natural gas discoveries in the Mackenzie Valley region in 2005 and 2006 with its partners in the Stewart and Summmit Creek prospects, which are still under development.

The bids represent the amount Husky and the others intend to spend on exploration on the leases during the first five years of the nine-year leases.

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

Oil & Gas Post

Promote Your Page Too
LINK

Alaska To Offer Nearly 15 Million Acres for Oil, Gas Drilling Leases

- Alaska To Offer Nearly 15 Million Acres for Oil, Gas Drilling Leases

Thursday, June 30, 2011
Dow Jones Newswires
WASHINGTON
by Tennille Tracy

The state of Alaska plans to offer nearly 15 million acres of state-owned land and waters for oil-drilling leases, saying the areas contain billions of barrels of oil.

The lease sale will be held Oct. 26, 2011, the state said Thursday.

The sale will involve 2 million acres in the Beaufort Sea, 5.1 million acres on the North Slope and 7.6 million acres in the North Slope foothills.

Roughly 3 billion to 6 billion barrels of undiscovered oil exists in the state- and Alaska Native-owned lands between the National Petroleum Reserve and Arctic National Wildlife Refuge, the state said.

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

Oil & Gas Post

Promote Your Page Too
LINK

Connacher O&G to Sell Halfway Creek Leases

- Connacher O&G to Sell Halfway Creek Leases

Wednesday, June 22, 2011
Connacher O&G Ltd.

Connacher O&G announced that in conjunction with Alberta Oil Sands ("AOS"), has engaged RBC Rundle to assist in the sale of a 100 percent working interest (held 50 percent by Connacher and 50 percent by AOS) in 38.5 contiguous sections (24,640 acres) of oil sands leases located at Halfway Creek, in the heart of the Athabasca oil sands region in northeast Alberta.

As at December 31, 2010, in aggregate, the Halfway Creek leases have been assigned 154.5 million barrels of best estimate contingent resources and 47.7 million barrels of best estimate prospective resources based on an independent reserve and resource report prepared by GLJ Petroleum Consultants Ltd. ("GLJ"). To date, a total of 32 core holes have been drilled on the Halfway Creek lands and the lease block has been covered by 2-D seismic. Connacher is disposing of its interest in the Halfway Creek leases to allow the company to continue to focus on its Great Divide assets as its core oil sands region. As evaluated by GLJ in a report as at December 31, 2010, Great Divide has the potential for greater than 55,000 bbl/d of bitumen production, based on estimates of proved plus probable plus possible reserves.

Assuming successful completion of the disposition process, the transaction would further fortify Connacher's liquidity position. The disposition is consistent with the company's previously announced five-point strategy for 2011, which includes asset rationalization, production optimization, streamlining its balance sheet, accelerating its evaluation of its conventional resource plays and accelerating the development of its Great Divide oil sands assets through a process to conclude a joint venture.

Oil & Gas Post

Promote Your Page Too

Gas Permits, Leases Accumulate in Beaver County

- Gas Permits, Leases Accumulate in Beaver County

Tuesday, June 21, 2011
Knight Ridder/Tribune Business News
by Bill Utterback, Beaver County Times, Pa.

While five months have passed since a natural gas well was last drilled in Beaver County, gas-related paperwork continues to accumulate.

The Pennsylvania Department of Environmental Protection has issued 10 drilling permits for Beaver County sites through the first six months of 2011, including one in May and six in June, according to the DEP online records.

Rolling Acres management received four drilling permits, three this month, for property in South Beaver Township, according to DEP records. All four of the permits are for horizontal natural gas wells to be developed by Chesapeake Appalachia.

Permits were also issued this year for one property in Economy (two permits for the site, both for gas and oil drilling, to be developed by Airdale Oil & Gas); and four Ohioville properties (including two gas permits and two combined gas/oil permits, to be developed by Chesapeake Appalachia).

Of 15 DEP drilling permits issued for Beaver County sites over the past 18 months, only one, located in South Beaver, has been developed.

Permits granted to two sites in Franklin Township and one in Independence Township in 2010 have likely expired because, according to DEP spokesman John Repetz, they must be used within a year.

A permit was issued to a Hanover Township site on Nov. 3, 2010.

Keith Hohenshel, council president in Industry, said borough council was approached by Chesapeake Appalachia representatives recently about the potential of developing a well on Engle Road, but no formal application has been made to the borough.

"It was nothing set in cement," Hohelshel said. "They still have some work to do. They can't do anything until they get a permit (from the borough)."

But Chesapeake Appalachia is continuing to lease gas rights in Beaver County. The company has filed 1,770 documents with the Beaver County Recorder of Deeds office in 2011, an average of more than 10 per day. Chesapeake Appalachia filed 138 documents in the first 17 days of June.

Copyright (c) 2011, Beaver County Times, Pa.

Oil & Gas Post

Promote Your Page Too

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

Oil & Gas Post

Promote Your Page Too

Treaty Purchases 2 Producing Leases in Tx.

Treaty Purchases 2 Producing Leases in Tx.

Wednesday, April 20, 2011
Treaty Energy Corp.

Treaty Energy has acquired two additional leases in Texas, the SHOTWELL W. F. and the SHOTWELL "C" leases.

Treaty indicated that production on these leases is currently 4.18 barrels of oil per day. These leases require no work over and were purchased for their current production value, but more important to Treaty Energy is the additional 30 virgin well drilling sites which will be added to the list of wells that Treaty's new Failing 1500 CF Drilling Rig will start drilling when permits are granted to do so. Private financing to fund the drilling had been arranged prior to the acquisition of the Failing Drilling Rig.

Stephen L. York, Treaty Energy's Vice President of Acquisitions and Operations, stated, "These leases are two of the most advanced small leases in the Country. Scientific evaluations have been done as an experiment to see what can be achieved with a maximum effort and scientific approach. Fluid levels have been 'shot,' water flooding plains logged, and geology available."

Mr. York stated further, "The upside to this acquisition is that Treaty now has an additional 138 acres to drill on, which represents 30 or more virgin well sites."

Treaty Energy's CEO and Chairman, Andrew V. Reid, stated, "I am very pleased with the progress Steve is making on the development of Treaty Energy's rapidly growing base of leases and production of oil in Texas."

Treaty indicated that it will follow with an SEC Form 8-K on a timely basis, which will include all aspects of this purchase.

House Panel Votes to Force More Oil Leases in U.S. Waters

House Panel Votes to Force More Oil Leases in U.S. Waters

Thursday, April 14, 2011
Dow Jones Newswires
by Ryan Tracy

A bill requiring the U.S. to open areas off the Virginia coast and in the Gulf of Mexico to oil and gas exploration cleared a key hurdle in the U.S. House Wednesday. The House Natural Resources Committee voted to approve the leasing measure, paving the way for a vote by the full House next month. Earlier Wednesday, the committee also voted to establish a 60-day maximum for the Interior Department to approve or deny offshore drilling permits. If Interior took longer, the permit would be deemed approved.

The bills are part of an effort by House Republicans to support domestic oil and gas production, which they have stepped up in recent months in the face of rising gasoline prices. Democrats have pushed back, saying that Congress should focus on providing incentives for non-traditional energy sources and reducing energy consumption.

All but two Democrats voted against the bills on offshore leasing. The bills' prospects are less certain in the Senate, where Democrats hold a majority.

One proposal approved Wednesday would override a decision last year from the Obama administration not to open the U.S. Atlantic Coast to offshore drilling. It directs the Interior Department to lease areas off the Virginia coast within one year after the bill becomes law.

The bills would also direct Interior to move forward with three new leases in the Gulf, declaring previous environmental reviews of those areas to be sufficient. The administration has delayed its Gulf leasing plans and is conducting new environmental reviews following the Deepwater Horizon disaster nearly one year ago.

"What we're attempting to do is provide some certainty to those who would give us American-made energy," said Rep. Doc Hastings (R., Wash.), chairman of the Natural Resources Committee, and a main sponsor of the bills.

During debate on the proposals, Rep. Rush Holt (D., N.J.) argued that Interior shouldn't move forward with new leases without a new environmental analysis based on lessons learned from the Deepwater Horizon. He said previous reviews had been "very clearly and woefully flawed." Rep. Doug Lamborn (R., Colo.) countered that further environmental reviews would take place as companies apply for permission to explore and drill new wells. Hastings noted that the legislation approved Wednesday requires Interior to conduct a safety review for each drilling permit. Still, Democrats criticized their counterparts for not taking up a bill that would implement recommendations of a presidential commission that studied last year's oil spill. Congress hasn't yet sent the president a bill in response to the disaster, which began with the explosion on a rig leased by BP on April 20.

A proposal to add safety regulations to the House bills, offered Wednesday by Rep. Ed Markey (D., Mass.), was voted down by the Republican majority. "This amendment would micromanage and dictate thorough safety standards" that should be established by the Interior Department, Lamborn said. The majority also rejected a host of proposals from lawmakers in coastal states designed to restrict exploration in the Pacific and Atlantic Oceans.

The legislation would also extend by one year leases impacted by the Obama administration's moratorium on drilling after the Deepwater Horizon disaster. The provision would apply to wells that weren't producing before April 30. It was added to the bill Wednesday in an amendment offered by Rep. Bill Flores (R., Texas).

Lawmakers briefly considered inserting a provision to require oil and natural gas facilities to use only equipment and materials produced in the U.S, but Rep. John Garamendi (D., Calif.) withdrew the amendment after other lawmakers said it was too inflexible. Some Republicans seemed open to the concept, however, and Garamendi said he might offer a different version at a later date.

Also Wednesday, the committee voted to require Interior to open up more resource-rich areas to exploration as part of its next five-year leasing plan. The full Republican-controlled House is expected vote on the bills next month.

Cos Lining Up Leases for Marcellus Shale Properties

Cos Lining Up Leases for Marcellus Shale Properties

Monday, April 11, 2011
Knight Ridder/Tribune Business News
by Bill Utterback, Beaver County Times, Pa.

The race to find natural gas in the Marcellus shale shelf below Beaver County has become a paper chase.

Since Jan. 1, nearly 1,100 properties have been leased by two gas-producing firms, according to the Beaver County Recorder of Deeds records.

Only one new well has been drilled in 2011, and only three well-drilling permits have been issued, according to state Department of Environmental Protection records.

Overall, Beaver County has produced nearly 1,800 leases with natural gas firms and two operating wells, one struck in Marion Township in 2009 and the other struck near Lime Kiln Road in South Beaver Township in January.

The ratio of wells to leases could soon increase.

"There's no question the natural gas is there ... and the extractable amount may be greater than the original estimates," Kent Moors, a gas and energy analyst with Duquesne University's Institute for Energy and the Environment, said.

"They'll come to get the gas," Thomas Anderson, a geologist and natural gas specialist with the University of Pittsburgh. "They may not get to all those properties, but they get to a lot of them."

Moors said that "information" and a depressed natural gas market may have temporarily quieted production in Beaver County.

"There are a couple of things going on ... there's been a difference of opinion as to where the sweet spots are," Moor said, adding that as more information about Pennsylvania's potential is gathered, more firms are transferring resources from other parts of the country to Pennsylvania.

The Chesapeake Appalachia firm, headquartered in Tulsa, now holds lease agreements for more than 1,300 Beaver County properties, more than 1,000 of them acquired since Jan. 1, more than 75 since April 1.

In 2011, Chesapeake has entered lease agreements for property in Big Beaver, Brighton Township, Center Township, Chippewa Township, Darlington Township, Greene Township, Hanover Township, Hookstown, Industry and Potter Township, according to the recorder of deeds records.

Range Resources, based in Fort Worth, has nearly 500 lease agreements in Beaver County, 57 of them acquired in 2011. Range Resources has signed property deals in Big Beaver, Brighton Township, Daugherty Township, Franklin Township, Hanover Township, Independence Township, Marion Township, Raccoon Township and New Sewickley Township in 2011.

Together, the two firms have reserved properties in 17 Beaver County communities in less than four months.

Range Resources has acquired leases on 153 properties in Allegheny County since Jan. 1, including 47 in Findlay Township, 41 in North Fayette Township and 25 in Moon Township.

"It could be that (firms) have been busy (drilling) in other areas. They have their hands full right now," Anderson said. "They're doing a ton of drilling in Washington County right now, but that doesn't mean that the natural gas in Beaver County isn't very, very attractive to them."

Bills Requiring US Action on Oil Leases, Permits Gain Support

Bills Requiring US Action on Oil Leases, Permits Gain Support

Friday, April 01, 2011
Dow Jones Newswires

by  Ryan Tracy

A proposal to require the Obama administration to sell offshore oil leases and act on drilling permits within a set time frame gained more supporters Thursday, with Senate Republicans introducing legislation to do so a day after House Republicans backed the idea.

The bills announced by Senate Republicans also took a far broader approach than the House proposals and included a grab bag of initiatives. The Senate bills would open up the Arctic National Wildlife Refuge in Alaska for drilling and direct royalty monies on those lands to "renewable energy development," according to a summary of the legislation distributed by the office of Sen. David Vitter (R., La.).

They would direct the Environmental Protection Agency to reissue a permit to a much-debated coal mine project operated by Arch Coal Inc. (ACI) in West Virginia, direct the State Department to issue permits for TransCanada Corp.'s (TRP) proposed pipeline connecting producers extracting oil from sands in Alberta, Canada, to the central U.S., and prevent the administration from considering greenhouse gases linked to climate change if the administration moves to protect endangered fish or wildlife.

The set of bills announced Thursday by Vitter, John Barrasso (R., Wyo.), and 26 other senators would also require the administration to conduct lease sales in the outer continental shelf, including in the Gulf of Mexico and Virginia.

The bills would require the Interior Department, which oversees offshore oil and gas drilling, to act on permits within 40 days, including a 10-day period for the applicant to respond to possible problems. The House Republicans' bill would require action within 60 days, depending on the application.

The bills have support from many Republicans, but at least one has expressed concern that they outline too rigid a framework.

Sen. Lisa Murkowski, (R., Alaska), the ranking Republican on the Senate Energy Committee, which oversees the Interior Department, told reporters Wednesday that she had "reservations" about rigid timetables for permitting and leasing.

"I think it's important to understand that not all permits may be equal and all leases are not equal," Murkowski said, explaining that permits and leases in less explored areas in Alaska might take longer than permits in "well-established" areas in the Gulf.
"If what we are doing is putting in place a more efficient permitting process, I'm all over it, but I think you need to give yourself a little bit of leeway in the event that it's not a 'one size fits all' type of approach," Murkowski said.