Karoon Lines Up Semisub Transocean Legend

- Karoon Lines Up Semisub Transocean Legend

Thursday, September 08, 2011
Karoon Gas Australia Ltd.

A drilling contract has been signed with Sedco Forex on Sept. 8 securing the Transocean Legend semi-submersible drilling rig to complete the planned Phase-2 Browse Basin exploration drilling program in the WA-314-P, WA-315-P and WA-398-P permits jointly held by ConocoPhillips and Karoon Gas. The contract comprises five firm wells (fulfilling permit commitments) with options for three additional wells (5-8 wells). Drilling is expected to commence in the fourth quarter of 2011 and is estimated to run for eighteen months to two years ConnocoPhillips is the operator of the jointly held WA-314-P, WA-315-P and WA-398-P Browse Basin permits containing the previously announced Poseidon and Kronos gas discoveries.

The five to eight well drilling program will target the Poseidon trend as well as surrounding prospects, including one prospect in WA-314-P late in the program.

The first well will be be Boreas-1, a crestal well in WA-315-P on a large tilted fault block east of the Poseidon-1 fault block. The results of the drilling campaign will allow the size and quality of the hydrocarbon accumulations within the exploration permits to be determined in preparation for a development decision. Karoon believes that the additional new prospects identified are of sufficient size that, if successful, would result in a meaningful increase in the capacity and economics of an eventual LNG project.

Pursuant to the 2006 Farm-in Agreement between Karoon and ConocoPhillips (Browse Basin) Pty Ltd, ConocoPhillips will be funding 80% of the drilling and testing costs for the initial $125 million of expenditure within WA-315-P.

Based on current forecasted costs Karoon will have sufficient capital at its disposal to complete all drilling activities for the planned program. Karoon is currently well advanced in the process of completing the farmout of its Santos Basin and Peruvian assets, and expects to have reduced financial exposure to both drilling campaigns. A list of potential farm-in partners will be shortlisted in the near future and negotiations are continuing.

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Chevron Lines Up Atwood Semisub

- Chevron Lines Up Atwood Semisub

Tuesday, August 16, 2011
Atwood Oceanics Inc.

Atwood Oceanics announced that one of its subsidiaries has been awarded a six month contract by Chevron Australia Pty. Ltd. for the Atwood Eagle. With this contract, the firm contractual commitments for the Atwood Eagle are expected to extend through July 2012. The day rate will be approximately $370,000.

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Seadrill Lines Up Semi-Tender for 2013 Delivery

- Seadrill Lines Up Semi-Tender for 2013 Delivery

Thursday, June 09, 2011
Seadrill Ltd.

Seadrill has entered into an agreement with Keppel FELS Limited in Singapore to build a new semi-submersible self-erecting tender rig (semi-tender). Total project price for the rig is estimated at below US $200 million (including the drilling equipment set, project management, spares, capitalized interest and operation preparation).

The new rig is scheduled for delivery in the second quarter 2013 and will be based on a similar design and specification as the semi-tender West Jaya, which was delivered from the Keppel FELS yard in March this year and is contracted for a minimum of two years. Similar to previous semi-tenders, the new unit is suited for harsher environment and deepwater drilling operations in combination with floating wellhead platforms such as Tension Leg Platforms and Spars.

The new unit is based on the KFELS SSDT 3600E design and adds to the seven semi-tenders that Keppel has earlier built for Seadrill since the launch of the design in 1994. The unit will feature a crane capacity of 250 tones, four mud pumps and accommodation for 160 people.

Alf C Thorkildsen, Chief Executive Officer of Seadrill Management AS said, "We are pleased to announce the addition of a new semi-tender to our existing fleet of 19 tender rigs. The tender rig business has delivered excellent operational results as well as outstanding economics over the last decade. Based on the continued strength of the offshore drilling market we continue to see strong growth and earnings potential for our business. The new semi-tender has a favorable construction price and an equipment specification list that will meet our customers' future needs. We have had very good experience with the Keppel FELS yard and this design and we are confident that the new unit will be delivered on time and within budget once again."

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Delta Air Lines Reports Generally Higher May Traffic, Surpassing American Airlines

- Delta Air Lines Reports Generally Higher May Traffic, Surpassing American Airlines



Jun 7, 2011

Delta Air Lines (DAL) today posted its May traffic results, with system traffic up 2.2% from the year-ago month on a 2.2% increase in capacity making it the world's largest carrier by traffic, surpassing American Airlines. Load factor is still at 83.9%, which is flat with last year.

Domestic traffic also increased by 1.9% versus last year on a 0.4% increase in capacity. Load factor for domestic increased to 85.1%. International traffic is up 2.6% versus last year on a 5% capacity increase, with load factor down 2 points to 82.2%.

The higher traffic is due to the consolidation of Delta's subsidiary Northwest Airlines, which was completely integrated into Delta network in January of 2010.

DAL shares are down slightly 0.21% to $9.60.

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PTTEP Lines Up Seadrill Jackup Offshore Thailand

- PTTEP Lines Up Seadrill Jackup Offshore Thailand

Tuesday, May 31, 2011
Seadrill Ltd.

Seadrill has been awarded a new contract by PTTEP in Thailand for the jackup rig West Leda. The assignment is for a firm period of nine months and with an option to extend for a further six months. The contract value for the firm period is approximately US $35 million. Commencement of the operations under the new contract is scheduled for late second quarter 2011, in direct continuation of the rig's existing contract.

Alf C Thorkildsen, Chief Executive Officer in Seadrill Management AS, said, "We are pleased to secure a new contract for one of our jack-ups in the South East Asia region. We consider this as an excellent opportunity to further strengthening our relationship with PTTEP, one of our key customers. Representing a total contract value of US $35 million, this assignment improves the earnings visibility for our jack-ups."

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Salamander Lines Up Vantage Rig Offshore Vietnam

- Salamander Lines Up Vantage Rig Offshore Vietnam

Friday, May 20, 2011
Salamander Energy plc

Salamander issued the following Interim Management Statement for the period from January 1, 2011 to May 18, 2011.

Highlights

• 2011 average production forecast maintained at 22-23,000 boepd
• Active E&A campaign during the period as part of a 13 well 2011 program
  • Drilling on the Dao Raung structure found significant gas column, follow-up drilling is underway
  • Technical analysis of Angklung-1 ongoing in advance of follow-up well in 4Q
  • 2D and 3D Seismic surveys completed on SE Sangatta confirming continuation of Angklung trend, in advance of well in 4Q
• Producing assets performance in line with expectations, development drilling underway at Bualuang oil field
• Reserves upgrade at Bualuang field: Ultimately recoverable proved & probable reserves increased 7 MMbo to 33.5 MMbo
• Contract signed for construction of Bualuang Bravo Platform
• Completion of new debt facility imminent

Exploration and Appraisal

Thailand

The Group completed one appraisal well during the period, the Dao Ruang-2 well in block L15/50, Northeast Thailand, while progressing its analysis of a follow up location on the Dao Ruang structure ahead of drilling during the current year. The well intersected a number of the targeted fracture zones with associated gas shows. Gas was seen all the way to TD, without any water, demonstrating a significant gas column in the Dao Ruang structure. An openhole DST was undertaken but only sub-commercial flow rates were recorded indicating a low permeability formation with a limited open, connected fracture network at the Dao Ruang-2 location. The Dao Ruang-3 well spudded at the end of April and is targeting an independent fault network in the Dao Ruang structure where it is hoped the well will encounter an open fracture network.

Offshore in block B8/38 in the the Gulf of Thailand, development drilling on the Bualuang platform is underway and the East Terrace prospect will be tested as part of this program. Exploration drilling elsewhere in the B8/38 block will follow the completion of development drilling.

Indonesia

The Group has been continuing its technical analysis of the Angklung-1 discovery well and the existing 3D seismic data in order to better understand and map the play systems in the Northern Kutei area. This analysis will assist in identifying the location of the follow up wells in the Bontang PSC planned for 4Q 2011, which will be aimed at appraising the gas play and exploring the oil play.

In the SE Sangatta PSC, adjacent to the Bontang PSC, the Group completed 2D and 3D seismic surveys during 1Q. The results of these surveys are now being interpreted, with early indications of a number of prospects on trend with the Angklung discovery, confirming the continuation of the prospective trend into the SE Sangatta license. A well on this license is planned for 4Q 2011.

In the Tarakan Basin the HPS-1 land rig has commenced mobilization to the South Sebuku-2 well site and is expected to spud during May 2011.

Vietnam

The Aquamarine Driller jackup rig has been contracted to drill the Cat Ba prospect, offshore North Vietnam. This well is expected to spud in July 2011.

Production and Development

The Group's producing assets have performed broadly to plan. During 1Q 2011 production averaged 19,434 bopd. The Group reiterates its average production forecast for 2011 of 22-23,000 bopd. The current development drilling program on the Bualuang oil field, Gulf of Thailand, incorporating six development wells, will drive increased volumes in the second half of the year.
During the first quarter the Group announced a reserves upgrade on the Bualuang field adding a further 7 MMbo of proved and probable (2P) reserves which take the ultimately recoverable 2P reserves on the Bualuang field to 33.5 MMbo. It has also awarded the contract for the Bravo Wellhead Platform, to be delivered and installed in mid-2012. This will be a 16 slot platform and further development drilling from the Bravo platform in H2 2012 will see production from the Bualuang field increase to 15,000 bopd in 2013.
A Gas Sales Agreement for the Kerendan gas field, Bangkanai PSC, Onshore Kalimantan has been agreed and is awaiting signature. This will see the commercialization of circa 135 Bcf of gas at a price in excess of $4.50 per Mcf.

Balance Sheet

The Group is in an advanced stage of negotiation and expects imminently to announce agreement on a new debt facility. It will be a $325 million senior and junior reserves based lending facility that will replace the existing senior, junior and acquisition bridge facilities in addition to providing additional liquidity.

At March 31, 2011, total Group debt, including the $100 million convertible bond, was $273 million, total available funds were $103 million, and net debt (including the convertible bond) was $170 million.

Directorate Change

As announced on 3 May Nick Cooper, Chief Financial Officer, will be leaving the Company to join Ophir Energy as Chief Executive Officer with effect from 31st May. The Company has begun a search for a successor and anticipates an orderly transition. A further announcement will be made in due course.

Outlook

Through a combination of higher than expected commodity prices, a growing production base and the expected refinancing of its debt facility the Group's solid financial position has been further strengthened. Operationally the focus is on delivering the 2011 exploration and appraisal program that combines a mixture of low risk, high value wells with higher impact drilling in both Vietnam and Indonesia with the Angklung follow up wells in Bontang and SE Sangatta PSCs.

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Delta Reports Better Than Expected Q1, Loses $0.38 Per Share

Delta Reports Better Than Expected Q1, Loses $0.38 Per Share



Apr 26, 2011

Delta Air Lines (NYSE:DAL) reported a Q1 loss of $0.38, a narrower loss than the $0.50 per share consensus estimate. Revenue was up 13% year-over-year to $7.7 billion, beating the consensus estimate for $7.6 billion.

Richard Anderson, Delta's chief executive officer said, "Fuel is the biggest challenge facing this industry and Delta is actively reducing capacity, implementing fare actions, hedging our fuel needs and attacking our cost structure in order to offset fuel's impact on our earnings. These actions would not be possible without the dedication and determination of Delta people worldwide, who are working every day to build the best airline in the world for our shareholders, our employees and our customers."

Fred. Olsen Lines Up Semisub for Offshore Brazil Drilling

Fred. Olsen Lines Up Semisub for Offshore Brazil Drilling

Tuesday, April 26, 2011

Fred. Olsen Energy ASA

Dolphin Drilling, a subsidiary of Fred. Olsen Energy, has entered into a Letter of Intent for the provision of the semi-submersible Blackford Dolphin for the drilling of one well offshore Brazil. Commencement is scheduled late in the fourth quarter 2011, with an estimated duration of total 135 days of which some 118 days will be in continuation of the existing Reliance contract. Total contract value is approximately USD 47 million. The contract remains subject to final contract agreement, partner and management approval which are anticipated to be closed within end May.