TAMM O&G Briefs on Manning Program

- TAMM O&G Briefs on Manning Program

Monday, August 22, 2011
TAMM O&G Corp.

TAMM O&G have reviewed and approved the Manning heavy oil work program proposed by their farm-in partner.

On March 15, 2011 Cougar Oil and Gas Canada Inc. ("COUGF") entered into a multi-phase farm-in agreement with TAMM to define and develop TAMM's 47 section Manning area heavy oil prospect. The first phase of the farm-in consists of COUGF performing a $2.5 million work program to earn a 30% working interest in the heavy oil prospect. One of the requirements of the farm-in was for COUGF to present for TAMM's review and approval a development plan for the first $2.5 million work program. TAMM management and Board of Directors has reviewed the work program and provided COUGF with the approval to continue.

This work program will be done at no cost and no risk to TAMM and will dramatically increase the value of the Manning heavy oil project. The work program proposed by COUGF will focus on defining the Elkton and Debolt heavy oil prospects and will consist of the following operations;

• Multi-well coring program: The target formations, Elkton and Debolt, have been mapped in the Manning area as a result of the numerous deeper conventional wells drilling through the heavy oil prospects but there are very few cores to review in the Manning area. With some areas of the TAMM lands having over 30m of potential oil pay, the core data will provide the foundation of the future development research. The coring program will consist of three to five core holes being drilled to gather Elkton and Debolt samples. The cores will be collected using a preserved technique with the goal of maintaining the original fluid content, fluid distribution, rock wettability and mechanical integrity. The core locations will include the thickest parts of the Elton and Debolt reservoirs in addition to locations which are in close proximity to the eroded edge of the formations which may have improved production qualities. The core date will be used to identify the sweet spots of the Manning heavy oil prospect.
• Oil sample analysis/Reservoir study: The long term production potential of the TAMM Manning prospect will be largely dependent on analysis of the Elkton and Debolt oil samples and the completion of additional in-depth reservoir analysis. The viscosity and specific gravity of the oil samples are important indicators to evaluate the oil quality. That information along with the porosity, permeability and reservoir pressure will be used to simulate various primary and secondary production techniques including the utilization of steam and solvents. Small samples of the core will be used to evaluate the movability of the oil contained in the carbonate rock using heat, chemicals and pressure.
• Seismic purchase and review: Approximately 85 to 100Km of trade 2D seismic data will be purchased overlying the TAMM Manning prospect. The seismic will be used to confirm structure and to identify the erosional edge of the Elkton and Debolt formations. The seismic will also be used to identify any Bluesky sandstone channels which run through the property which would become a conventional heavy oil project.
• Submitting proposal to upgrade prospect from Prospective Resource to Contingent Resource: Using the information collected from the $2.5million work program TAMM will be able to apply to upgrade the quality of the Manning heavy oil prospect to a Contingent Resource. Contingent resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, but the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies. Prospective resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects.

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Leighton Olmos Flows O&G at Peeler Well

- Leighton Olmos Flows O&G at Peeler Well

Monday, August 15, 2011
Global Petroleum Ltd.

Texon has advised that the latest Leighton Olmos vertical production well, Peeler #3, has begun to flow oil and gas at the combined rate of 370 boepd from the Olmos reservoir (comprising 325 bopd and 268 mcfgpd). This is the ninth well targeting the Olmos reservoir in which Global has a 15% working interest (11.25% net revenue interest).

This is a good result as the closest three Olmos production wells, Peelers #1 and #2 and Tyler Ranch #5 tested at initial rates of 170 to 445 boepd.

The well will be connected for production to oil tanks and the gas pipeline in the next two weeks.

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Judge Strikes Down US Policy on O&G Permits

- Judge Strikes Down US Policy on O&G Permits

Monday, August 15, 2011
Dow Jones Newswires
WASHINGTON
by Ryan Tracy

A federal judge has struck down an Obama administration policy related to drilling permits on public lands, leading oil and gas companies to hope more permits in the western U.S. will be forthcoming.

But it wasn't clear Monday how the Interior Department, which processes the permits, would respond. The ruling, issued Friday by the U.S. District Court in Wyoming, rejected a policy that had required more extensive environmental review of some drilling permits.

Interior "had no authority" to adopt the policy last year "without public notice and an opportunity for comment," Judge Nancy D. Freudenthal wrote. She ruled in favor of an industry group and vacated the policy nationwide.

An Interior Department spokesman said the agency was reviewing the ruling and declined to comment further.

The ruling "holds the promise of new jobs and economic growth," said Kathleen Sgamma, director of government and public affairs for the Western Energy Alliance, which filed the suit and represents Devon and Anadarko, among others.

Permitting on U.S. land quickened under the Bush administration and hit a peak during the 2007 fiscal year, when Interior approved 7,124 permits to drill for oil and gas on federal lands. The Obama administration, by contrast, approved 4,487 such permits in 2009 and 4,090 in 2010, according to data from Interior's Bureau of Land Management, or BLM.

Some of that drop can be attributed to lower demand as a result of the economic downturn, but the industry says permits are also taking longer to obtain.

For its part, BLM has argued that its new permitting policies are more efficient because a stronger up-front review will lead to fewer lawsuits and delays down the road.

At issue in Friday's court ruling was a provision in the 2005 Energy Policy Act that allowed oil and gas companies to skip federal environmental reviews under certain circumstances -- for example, if a well was being drilled from an existing site where drilling had occurred within the previous five years.

In May 2010, Interior instructed its staff to allow such exceptions under "extraordinary circumstances." Freudenthal said that decision amounted to an "about-face" from past practice, so the agency must formally propose the change and solicit public input.

Sgamma said she hoped Interior would rescind the current policy for now. The department might also keep it in place and appeal the ruling.

"It's not like we'll start to get permits quicker here on out in the short term," Sgamma said. "We'll have to wait to see what the government does."

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

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UK O&G Industry Successfully Tests Emergency Spill Response Equipment

- UK O&G Industry Successfully Tests Emergency Spill Response Equipment

Thursday, August 11, 2011
O&G UK

The UK oil and gas industry has successfully tested its ability to deploy a well capping device in the waters west of Shetland. As part of the industry's commitment to further strengthen the UK's emergency response capabilities, the Oil Spill Prevention and Response Advisory Group (OSPRAG) has undertaken a number of initiatives to improve well engineering and oil spill response capability, including the development of a well capping device for use in UK waters to seal-off an uncontrolled subsea oil well in the unlikely event of a major well control incident.

The purpose of the recent Emergency Equipment Response Deployment (EERD) exercise was to simulate the logistical process of transporting a well capping device, loading it on to a vessel and lowering it over the side before fixing it to a specially-built simulated well on the sea floor.

The exercise was project-managed and executed by Total E&P UK on behalf of Oil & Gas UK and ran from July 16-26, 2011 at a site in block 206/4, around 75km north west of Shetland.

The various stages of the exercise included:

• Exercise site prepared by deploying a specially-built landing base to the seafloor at a depth of 300 meters to accurately simulate a subsea well.
• Remotely operated vehicles (ROVs) used to deploy subsea oil dispersant (in this instance, a non-toxic fluorescent dye).
• Heavy-duty cutting shears deployed to sever a subsea marine riser pipe. This would be done in a real-life scenario in order to clear the riser out of the way to make room for the cap to be landed.
• Capping device deployed over the side of a multi-service vessel using a crane.
• Device landed on to the well, locked on to the base and activated using ROVs.
• All equipment, including the landing base, recovered.

Oil & Gas UK's chief executive, Malcolm Webb, said, "The UK oil and gas industry has a very high level of confidence in its ability to prevent blowouts. We haven't experienced one here in over 20 years – in which time over 7,000 wells have been drilled.

"No matter how unlikely a blowout is, we recognize the importance of being prepared for low-probability, worst-case scenarios. This is why we regularly test our emergency response capabilities and why we wanted this particular exercise to be as realistic as possible.

"Its success proves we can not only quickly mobilize and deploy the capping device, but also incorporate the use of a wide variety of other related equipment, such as subsea dispersant and cutting shears, which in a real-life situation would be used as part of the same operation.

"The next stage will involve a full debrief involving all participants to identify any learning opportunities and Oil & Gas UK will share these findings throughout the industry."

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TAG Confirms O&G Discoveries in Taranaki Basin

- TAG Confirms O&G Discoveries in Taranaki Basin

Thursday, August 11, 2011
TAG Oil Ltd.

TAG Oil reported that strong test results confirm new oil and gas discoveries in the Sidewinder-2 well and the Cheal-C1 well, both located in the Taranaki Basin, New Zealand.

Lower Mt. Messenger Oil Discovery in Sidewinder-2 Well

TAG has completed isolated flow testing on oil-and-gas-bearing zones discovered in the Sidewinder-2 well. These additional productive zones were encountered in the shallower Urenui Formation and in the lower Mt. Messenger Formation, below the main Sidewinder gas zone discovery, which tested at stabilized rates of 8.8 million cubic feet per day (~1467 BOE per day).

Of particular importance are the oil-bearing sands Sidewinder-2 discovered in the lower section of the Mt. Messenger Formation (~1800m), where the Company recovered significant volumes of light oil during recent swab testing. Technical data suggests that this oil zone can produce at rates consistent with other established Mt. Messenger oil wells in the immediate area. These oil-bearing Mt. Messenger sands are interpreted to be widespread in the Sidewinder permit area and will be a primary target in future exploration wells.

TAG will proceed to commercialize oil production from the lower Mt. Messenger zone and will acquire artificial lifting equipment that will best suit the overall Sidewinder exploration and development strategy.

Also of interest in Sidewinder-2 is the gas discovered in the shallow Urenui Formation (~1400m). The Company tested clean, dry natural gas at rates ranging from 1 to 2 million cubic feet of gas per day (167- 333 BOE's per day) utilizing various choke sizes. Production from the Urenui Formation zone can be commercialized by comingling with the main Sidewinder gas zone.

TAG CEO Garth Johnson commented, "We continue to achieve excellent exploration results which indicate that TAG has potentially discovered a large oil and gas field at Sidewinder. In addition to the prolific main gas zone discovered, there are now two significant high-impact discovery zones to pursue in this acreage. This new Mt. Messenger oil discovery will add high net-back oil production to the ~5000 BOE's of behind pipe awaiting commissioning of the Sidewinder production facilities."

The Sidewinder oil and gas discoveries are located in TAG Oil's Petroleum Exploration Permit 38748 (TAG 100%) in the Taranaki Basin, New Zealand.

Cheal-C1 Testing Confirms Oil Discovery

TAG also reports that testing of the Cheal-C1 exploration well confirms the oil and gas discovery in the Cheal "C" area. Cheal-C1 intercepted oil-and-gas-bearing sands in the Mt. Messenger Formation producing substantial volumes of light oil during swab testing along with clean, dry gas at rates between 1.5 million to 3 million cubic feet per day.

Artificial lifting equipment is now being acquired to establish daily oil production rates, however the Company estimates production capabilities from Cheal-C1 to be similar to TAG's Cheal-B4ST well. This well tested 360 barrels of oil + 240 thousand cubic feet of gas per day.

The Cheal-C1 well also encountered strong oil shows within a 73-meter-thick section of sandstone within the deeper Moki Formation. The Moki zone was tested but commercial flow rates were not achieved. TAG's technical interpretation indicates that Cheal-C1 penetrated a "transitional zone" where oil migrated through the contacted zone into a large structural closure, updip from the Cheal-C1 penetration. Given the extensive oil shows recorded while drilling coupled with the excellent reservoir quality interpreted from electric logs, TAG will plan a new well that will directly target the Moki Formation prospect, drilled from a more optimal location on the structure.

TAG CEO Garth Johnson said, "I'm pleased to achieve such positive results from the Cheal-C1 well, significantly expanding the Cheal development area. We expect to commercialize the Cheal-C1 discovery in conjunction with appraisal drilling included in our next drilling campaign, scheduled to start in September 2011."

The Cheal oil and gas discoveries are located in TAG Oil's Petroleum Mining Permit 38156 (TAG 100%) in the Taranaki Basin, New Zealand.

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Ivanhoe Makes Headway in Heavy Oil, Conventional O&G Projects

- Ivanhoe Makes Headway in Heavy Oil, Conventional O&G Project

Wednesday, August 10, 2011
Ivanhoe Energy Inc.

Ivanhoe reported financial results and operating highlights for the second quarter of 2011. Ivanhoe Energy has filed its quarterly financial report on Form 10-Q with the United States Securities and Exchange Commission and its Interim Financial Statements with the Canadian Securities Administrators for the period ended June 30, 2011.

Highlights

• In June the Company obtained broader and more extensive patent protection for its HTLTM intellectual property in Canada. This patent builds on and complements other issued and/or filed patents related to the core HTLTM technology and its petroleum applications. The portfolio includes the core patent, issued in the first quarter of 2011 related to the underlying HTLTM technology, which expires in 2028.
• The Company announced that heavy crude oil extracted from its IP-5B well in the Pungarayacu field in Block 20 in Ecuador was successfully upgraded to local pipeline specifications using the Company's proprietary HTL upgrading process.
• The Company issued Cdn$73.3 million of convertible unsecured subordinated debentures, maturing on June 30, 2016. A portion of the proceeds were used to repay a promissory note due to Talisman Energy Canada. The remaining balance of the funds raised will be used for ongoing capital and operating expenditures.
• Revenues were $9.5 million in the second quarter of 2011 compared to $6.1 million in the second quarter of 2010 due to a combination of stronger realized commodity prices and increased production. Higher volumes were allocated to Ivanhoe Energy for reimbursement of capital expenditures incurred at Dagang.
• In the second quarter of 2011, $6.5 million in cash flow was used in operations, consistent with $6.3 million of cash flow used in operations during the second quarter of 2010.
• The net loss for the second quarter of 2011 was $4.1 million compared to net income of $9.3 million for the second quarter of 2010, as a result of higher operating and general administrative expenses as well as lower non-cash foreign currency exchange and derivative instrument gains.
• General and administrative expenses were $11.7 million in the second quarter of 2011 compared with $9.1 million in the second quarter of 2010. The year-over-year increase stemmed from higher staff numbers associated with the Quito office build-out and our drilling operations in Sunwing, contract engineering work related to Ivanhoe's HTL technology and financing fees incurred in the recent Convertible Debentures issuance.
• The Company's cash and cash equivalents balance at June 30, 2011 was $133.3 million, which will be used to continue advancing Ivanhoe's ongoing projects in Canada, Ecuador, China and Mongolia.

"During the quarter we continued to prudently position Ivanhoe Energy to advance our heavy oil and conventional oil and gas projects," said President and Chief Operating Officer, David Dyck.

"In particular, the Company enhanced the intrinsic value of our heavy-to-light (HTL) upgrading technology by successfully testing it on Ecuadorian heavy crude and by securing patent protection to 2028 in key jurisdictions. We also put in place attractive new convertible debt financing to underwrite our operations and business development efforts."

Subsequent events

Zitong Block

Ivanhoe's wholly-owned subsidiary, Sunwing Energy, submitted the Provisional Overall Development Plan to the Joint Management Committee and PetroChina on June 30, 2011. As communicated in Ivanhoe's press release on June 15, 2011, this plan includes the acquisition of 3D seismic and the drilling of horizontal wells on the Block that will include multistage fracture stimulation. The Company is currently in discussions with PetroChina on final details of the Plan. This plan is to be conducted over the next 24 months.

Both the Yixin 2 and Zitong 1 wells have completed their respective long term built up tests and the down hole recorders have been recovered and the wells shut-in and secured. Data collected from these recorders has been delivered to contracted third-party tight gas experts to conduct detailed analysis and modeling of reservoir parameters and potential completion and stimulation techniques to assist the Company in developing exploitation programs on the Zitong Block.

Mongolia Block XVI

Sunwing is currently mobilizing the drilling equipment and supplies to N16-1E, its first exploratory drill site on Nyalga block XVI, which will be drilled on a structure approximately 32 sq km in size and to an approximate depth of 2500m. As of this date, the drilling rig is more than 75 percent assembled. Remaining minor drilling preparations will continue over the next few weeks, followed by the spud of Sunwing's first exploration well in Mongolia. Drilling of the well will take approximately 30 days, with completion and testing to be carried out as required. The Company intends to drill two wells initially, with the option to drill up to three additional wells, and remains optimistic of the potential to find oil resources in Mongolia.

Ecuador Seismic Program

As communicated in Ivanhoe's June 15, 2011 news release, Ivanhoe's wholly-owned Ecuadorian subsidiary commissioned a seismic program over the southern part of the Pungarayacu Block. The first phase of this program is now complete and analysis is still underway. Early interpretation is encouraging as it indicates deeper faulting, with the potential to trap lighter oil resources which could prove beneficial for blending purposes and overall project economics. Additionally, initial internal interpretations may also suggest an extension of the field beyond what was originally estimated.

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Samson O&G Begins 4-Well Drilling Program

- Samson O&G Begins 4-Well Drilling Program

Tuesday, August 09, 2011
Samson O&G Ltd.

Samson O&G advised that the Evergreen Rig 22 has been released from its previous well and is being mobilized to the Defender US33 #2-29H location, and will then be deployed at three additional Samson drilling locations. The initial trucks arrived Tuesday and the rig up at Defender US33 #2-29H has commenced, and it is expected that the rig will be ready for its final inspection such that drilling operations should begin late Thursday or Friday this week.

Defender US33 #2-29H, Goshen County, Wyoming, Samson 37.5% working interest

The Defender US33 #2-29H, is the first Niobrara appraisal well in Samson's Hawk Springs project. Initially, a vertical pilot well will be drilled to around 7,450' and a conventional core will be cut from the Niobrara Formation. After the orientation of the fractures has been identified from core and FMI logs, the vertical pilot borehole will be plugged back to a kick-off point above the Niobrara. From the kick-off point, the borehole angle will be built until it is horizontal and the bit is positioned within the Niobrara "B". Then 7-inch intermediate casing will be set through the curve and the lateral will thereafter be drilled for a distance of approximately 4,300' within the Niobrara "B". The well will be completed using a plug and perforation process in 15-stages that is expected to involve the placement of approximately 3,000,000 pounds of proppant into the Niobrara Formation.

Sprit of America US34 #1-29, Goshen County, Wyoming, Samson 100% working interest

The Defender well will be followed by the Spirit of America US34 #1-29. This well is the first Permian and Pennsylvanian appraisal well within the Hawk Springs project. Preparatory operations, including the well site construction and the setting of the 20-inch surface casing, have been accomplished. The Spirit of America US34 #1-29 will be drilled as an 11,000' vertical test to the Precambrian basement to evaluate multiple conventional targets; in particular, two closed structural traps in the Permian and Pennsylvanian sections.

Following the completion of the two Hawk Springs wells, the Evergreen Rig 22 will be mobilised to Montana to drill the initial two wells in the Roosevelt project.

Australia II KA6 #1-29H and Gretel 11 KA12 #1-30H, Roosevelt County, Montana, Samson 100% working interest

These wells will be the first two appraisal wells in the Roosevelt Project. Both wells will be drilled initially as vertical pilot holes to enable cores to be cut in the Bakken Formation, and then completed as a 15,500’ measured depth horizontal wells in the middle member of the Bakken Formation. The wells will then be fracture stimulated. The design of this completion is currently being undertaken but the final design will build on industry results previously achieved in the area.

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Hardy O&G Shuts-In India Well

- Hardy O&G Shuts-In India Well

Wednesday, August 03, 2011
Hardy O&G plc

Hardy O&G announced that on July 30, 2011 the PY-3 field, located in India, was shut-in.

The PY-3 oil field has been temporarily shut-in pending Management Committee approval of the award of a contract for the field's floating production system (FPS). We are working closely with all stake-holders to secure the necessary approvals and recommence production as soon as possible.

Hardy is the operator of the PY-3 field and holds an 18 percent participating interest.

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Guv Fills Up O&G Commission

- Guv Fills Up O&G Commission

Monday, August 01, 2011
The Pueblo Chieftain, Colo.
by Patrick Malone

Gov. John Hickenlooper announced eight appointments Friday to the Colorado Oil and Gas Conservation Commission. Two are reappointments.

Republicans criticized the omission of representation from the Eastern Plains, but expressed optimism that Hickenlooper's appointees will be more friendly to the oil and gas industry than the commission was under former Gov. Bill Ritter.

"There is no representation on there from Eastern Colorado," said Rep. Jon Becker, R-Fort Morgan, whose district includes parts of Southeastern Colorado. "Without representation from Eastern Colorado, we leave out a whole region of the state that is very important to oil and gas. The governor overlooked that. He should have made at least one appointment from the Eastern Plains. There are plenty of qualified people there to serve on this commission," Becker said.

Hickenlooper has often said he supports common-sense changes to regulation of the oil and gas industry in Colorado. A favorite example of the governor's is the water-treatment rule that many ranchers and gas companies agree creates unnecessary expense for drilling operations in the Raton Basin near Trinidad.

Becker said he is optimistic the new commission will tackle regulations with an eye on spurring business and be more mindful of the economic impact of its decisions than the commission was under Ritter.

Environmental groups said they will keep a watchful eye on the new commission.

"Gov. Hickenlooper has repeatedly said he would 'strike the right balance' in overseeing the oil and gas industry," said Elise Jones, executive director of the Colorado Environmental Coalition. "The jury is still very much out as to whether this set of appointments meets that important standard or whether instead the balance has shifted away from protecting Colorado's air, water, wildlife and communities from the impact of drilling."

Hickenlooper said he feels assured that his mix of appointees will address the competing interests of business and the environment.

"Different voices and a united spirit of collaboration are key to the success of the commission," the governor said. "We are confident this group will serve the industry, land owners and the environment well as it navigates through issues that are important to both the state's economy and the protection of Colorado's beautiful landscapes."

Hickenlooper appointed eight new commissions to replace those whose terms expired July 1. The appointees are subject to Senate confirmation. Their four-year terms expire July 1, 2015.

Copyright (c) 2011, The Pueblo Chieftain, Colo.

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Canadian Quantum Acquires Interest in Indian O&G Canada Permit

- Canadian Quantum Acquires Interest in Indian O&G Canada Permit

Tuesday, July 26, 2011
Canadian Quantum Energy Corp.

Canadian Quantum has acquired a 50% interest in an Indian Oil and Gas Canada Permit with Sundance Energy Corporation acquiring the other 50%. The acquisition covers all available P+NG rights underlying the Alexander First Nations Reserve, located in Central Alberta. The Alexander First Nation Permit is comprised of 6,946.17 gross hectares (17,365 gross acres) or approximately 27 sections of land. Sundance, as operator, is in the process of configuring an extensive 3D seismic program that will be shot as soon as possible. The Alexander First Nation lands have the potential for multi-zone light oil and natural gas production at relatively shallow depths with existing infrastructure in the area.

Canadian Quantum's President and CEO, Douglas Brett stated "We are excited to have acquired such a large land position in an area where another oil and gas company has recently announced a discovery well from a zone that we have mapped as being potential on the Alexander First Nation lands."

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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.

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O&G Industry Wants Water Ban Overturned

- O&G Industry Wants Water Ban Overturned

Friday, July 22, 2011
Knight Ridder/Tribune Business News
by Brian Bowling, The Pittsburgh Tribune-Review

The Pennsylvania oil and gas industry is asking a federal judge to overturn a federal ban on using surface and groundwater in the Allegheny National Forest to conduct hydraulic fracturing at Marcellus shale well sites there.

If the companies are forced to truck in municipal water, that will increase the lifetime operating cost of each well by about $1.5 million to $2 million, the industry motion says.

Erie attorney Matthew Wolford, one of the lawyers representing the industry, said the motion cites both Pennsylvania common law and the language of the deeds for some of the wells.

In the case of the two wells mentioned in the motion, the deeds for the mineral rights specifically mention that the mineral rights owners can use surrounding water for oil and gas drilling, he said. Even without that language, the state's common law gives mineral owners reasonable access to water, he said.

"In Pennsylvania, people don't own the water," he said. "Water is usable by a property owner for various things."

The motion filed in Erie federal court asks U.S. District Judge Sean McLaughlin to find the U.S. Forest Service in contempt of his Dec. 15, 2009, order requiring the agency to promptly process drilling proposals from companies.

A 1980 federal court decision requires companies to give the agency 60 days notice before they start drilling.

Under Pennsylvania law, the federal government -- as the surface property owner -- doesn't have the right to block the mineral owner's access to the minerals, but the 1980 decision and McLaughlin's 2009 decision give the agency some limited control on how the gas companies drill inside the national forest.

Instead of complying with the judge's order, the Forest Service has lengthened the amount of time it takes to process proposals and has "engaged in a pattern of interference with the lawful efforts of (gas industry) members," the lawsuit says.

A spokesman for the Forest Service couldn't be reached for comment. Wyn Hornbuckle, a spokesman for the Justice Department, declined comment. The Justice Department is representing the federal agency in the lawsuit.

Copyright (c) 2011, The Pittsburgh Tribune-Review

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Strategic O&G Appoints New President

- Strategic O&G Appoints New President

Wednesday, July 20, 2011
Strategic O&G Ltd.

Strategic O&G announced that Mr. Gurpreet Singh Sawhney has been appointed President of the Company. Mr. Sawhney is a professional engineer with over 18 years of experience in the oil industry. Mr. Sawhney has been the Vice-President Business Development with Strategic Oil & Gas Ltd. since March 1, 2009. As President of the Company, Mr. Sawhney will be reporting directly to Arn Schoch, CEO and Chairman of the Board.

From 1993 to 1996, Mr. Sawhney worked with PanCanadian Petroleum Ltd., as a reservoir simulation specialist, before leaving to found and manage Reservoir Modelling & Management Ltd. (Res Mod Man) a consultancy group providing reservoir management services to numerous domestic and international clients, including Pan-Canadian Petroleum, Norcen Energy, Husky Energy, Vermilion Energy, Anadarko Petroleum, British Gas, Verenex Energy, Capitol Energy, Highpine Oil and Gas, Daylight Energy and Wave Energy. Mr. Sawhney has worked on over 100 oil and gas field development projects. Mr. Sawhney has assisted with successful projects like the Wayburn CO2 Flood, the Dixonville Montney Waterflood and the Lower Shaunavon Horizontal Well Resource play.

Mr. Sawhney holds a B.Eng. degree in Chemical Engineering from Panjab University, India, and an M.Sc. and an MBA, both from the University of Calgary, Canada.

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GE O&G Names New CEO

- GE O&G Names New CEO

Wednesday, July 13, 2011
GE Energy

GE Energy, which has grown from $29 billion in revenue to over $40 billion since 2006, announced that Dan Heintzelman, currently CEO of GE Energy Services, has been named CEO of GE Oil & Gas. Heintzelman succeeds Claudi Santiago, who has served as CEO of GE Oil & Gas for the last 12 years and is retiring from GE in December.

"Claudi Santiago has led GE Oil & Gas during a period when it became a global leader in its industry," said GE Chairman and CEO Jeff Immelt. "Claudi's strategy of investing wisely in core technology and expanding into areas to provide more complete solutions for our customers proved to be the right one for GE and investors."

Immelt also stated, "Dan Heintzelman is exactly the right leader to succeed Claudi at Oil & Gas. Dan is one of GE's most experienced business leaders and brings a unique mix of operational excellence and customer focus to the role."

Steve Bolze, CEO of GE Power & Water, will now lead an expanded portfolio with the addition of Power Generation Services (formerly part of Energy Services) to the Power & Water business. With both the equipment and services businesses under his leadership, Bolze will lead a global organization that delivers full lifecycle solutions for power generation customers.

Dan Janki, currently GE Energy's chief financial officer, has been named CEO of the newly formed business within Energy, GE Energy Management. This business will consist of technology solutions for the delivery, management, conversion and optimization of electrical power for customers across multiple energy-intensive industries. Janki will be succeeded as Energy chief financial officer by Lynn Calpeter, currently chief financial officer for NBC Universal.

John Krenicki, GE vice chairman and CEO of GE Energy, said, "We have built an Energy business that is broader, deeper and more diverse than at any time in its 100+ year history. Just in the last few months, we've announced $11 billion of acquisitions, significantly expanding our portfolio, global footprint and capabilities. We have an opportunity right now to take advantage of the breadth and scale of our capabilities and ultimately deliver better solutions for our customers. And we are fortunate to have the bench strength in our leadership team to support this mission."

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Samson O&G Projects 'Active' Drilling Program in 2H11

- Samson O&G Projects 'Active' Drilling Program in 2H11

Monday, July 11, 2011
Samson O&G Ltd.

Samson O&G has recently acquired a substantial project which expands its position in the Bakken Formation. This Roosevelt Project, along with the appraisal of the Niobrara Formation in Wyoming, and three conventional plays in the Hawk Springs project area, means that Samson will have an active drilling schedule in the second half of 2011. The combined drilling program, and the estimated cost and timing of the wells, is set out in the following table. Samson will fund this program from its existing cash resources.

As a result, Samson currently projects that it will exit the end of the calendar year with an estimated cash balance of US $32 million. This estimated cash balance takes into account existing operating cash flows, projected general and administrative expenditures, land acquisition costs, current forecasts of commodity prices and the capital expenditures noted below. However, the forecast includes no cash flow from any of these new wells during the year.

Samson's drilling program is expected to deliver appraisal results in three key areas:

• The Hawk Springs Niobrara will be the first well to be drilled and fracture stimulated in the Niobrara 'B' zone.
• Multiple conventional targets in the Hawk Springs project are planned, where considerable potential is observed from the 3-D data at both the Permian and Pennsylvanian stratigraphic levels.
• The Roosevelt Project Bakken wells will be the first ever drilling in this area and will therefore will be key tests for this project.

Defender US 33 #2-29H – Hawk Springs Project - Wyoming

This well will be the first appraisal of the Niobrara 'B' zone and is the first well to be drilled and funded 100% by Halliburton under their farmin agreement. It will be fracture stimulated following the completion of a 4,300' horizontal.

Spirit of America US 34 #1-29 - Hawk Springs Project-Wyoming

This well will be drilled as an 11,000' vertical test down to the Precambrian basement to test multiple conventional targets in the Permian and Pennsylvanian sections.

State 24-63 #10-1H – Hawk Springs Project-Wyoming

This well will be drilled as an 11,447' measured depth horizontal well in the Codell Sandstone (which lies directly beneath the Niobrara Formation). Upon completion of the well in the Codell sandstone, the fracture stimulation job is expected to fracture the Niobrara Formation.

Australia II 12 KA 6– Roosevelt Project – Fort Peck Reservation, Montana

This well will be the first appraisal well in the Roosevelt Project and will be drilled as a 15,500' measured depth horizontal well in the middle member of the Bakken Formation.

Constellation US 20 State #1-36H – Hawk Springs Project-Wyoming

This well will be Samson's second Niobrara well and is located outside the Halliburton/Mountain Energy Joint Venture area. It will be fracture stimulated following the completion of a 4200' horizontal.

State 24-63 #14-1H – Hawk Springs Project- Wyoming

This well will be drilled as an 11,272' measured depth horizontal well in the Codell sandstone. Upon completion of the well in the Codell sandstone, the fracture stimulation job is expected to fracture the Niobrara Formation.

Diamondback #1 – Onshore Gulf Coast Basin, Texas

This 8,900' well will test an amplitude anomaly in the Oligocene Frio Formation on the flank of the Big Hill salt dome in Jefferson County, Texas.

Australia IV 12 KA– Roosevelt Project – Fort Peck Reservation, Montana

This well will be the second commitment well in the Roosevelt Project and will be drilled as a 15,200’ measured depth horizontal well in the middle member of the Bakken Formation.

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Iran: Will Spend $18B on O&G Fields in South through 2015

- Iran: Will Spend $18B on O&G Fields in South through 2015

Monday, July 11, 2011
Dow Jones Newswires
LONDON
by Benoit Faucon

Iran will invest $18 billion in the development of its oil and gas fields in the hydrocarbon-rich south of the country in a 5-year development plan ending 2015, its deputy oil minister in charge of planning was quoted as saying Sunday.

The remarks comes as Iran is moving forward with projects to develop its oil and gas capacity despite international sanctions.

Speaking to Iran's oil ministry website Shana, Mohsen Khojastemehr said the plan included a $3 billion investment planned for the current Iranian year, which ends March 2012.

"Many plans are being implemented to accelerate development of shared oil and gas fields while the ministry aims to increase oil production in the oil-rich region of the south to 3 million barrels a day," the official told Shana.

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

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Victoria O&G Updates Ops at West Medvezhye

- Victoria O&G Updates Ops at West Medvezhye

Thursday, July 07, 2011
Victoria O&G plc

Victoria O&G provided an update on its appraisal and delineation program in the West Medvezhye, (West Med) oil, gas and condensate license area in Russia.

West Med Regional Background

VOG's wholly owned subsidiary, ZAO SeverGas-Invest (SGI), holds a 20-year Exploitation License for West Med covering 1,224 km2. The block is located in the Yamal Peninsula in the Nenets region of Siberia and was independently assessed in 2006 by DeGolyer and MacNaughton (D&M) to have total prospective resources of approximately 1.1 billion barrels of oil equivalent (boe). West Med is located in one of the most prolific oil and gas producing areas of the world and is adjacent to Gazprom's giant Medvezhye field that has already produced over 70 trillion cubic feet of gas.

In total, D&M identified 25 leads and prospects and the Company's first discovery in West Med, Well 103, was based on a prospect defined by D&M. The discovery has C1 and C2 reserves, independently assessed, under the Russian classification convention of 14.4 million boe as approved by the Russian Ministry of Natural resources.

West Med Appraisal Update

While VOG's principal focus has been the development and commencement of gas and condensate production at Logbaba in Cameroon which is scheduled for 4Q 2011, SGI's technical team and consultants Blackwatch Petroleum Services (Blackwatch) have been utilizing this time to acquire data and to carry out integrated multi-discipline studies in West Med.

This work has involved integration of new data with previous seismic and well data to screen and firm up the prospects and leads identified by D&M.

Passive Seismic and Gas Tomography Surveys

New data acquired in 2010 included 155 passive seismic points recorded by GeoDynamics Research S.r.l. (GDR) and 289 km lines of gas tomography data recorded by Exotrad Limited. The surveys identified direct hydrocarbon indications in six areas covering a total of 79 km2 in the opinion of GDR and VOG.

Preliminary internal volumetric estimates by the Company, based on these passive seismic areas and regional well and seismic data for reservoir properties, indicate hydrocarbons initially in-place estimated at 400 mmboe by SGI and Blackwatch.

The features are all part of previously identified prospects by D&M, based on conventional seismic, and the volumes were incorporated into the overall assessment of 1.1 billion boe Un-risked Prospective Resource potential for the West Med Block.

Conventional Seismic work

Further to these positive results, in February 2011, the Company commissioned a seismic reprocessing and geological modelling study to be carried out by a Russian geoscience consulting institute, Mineral. The first phase of the technical work, which included reprocessing of 845 km of 2D seismic, was completed in June 2011.

Re-interpretation of the reprocessed seismic data has now commenced and will incorporate the passive seismic and gas tomography results. The results of Mineral's work are scheduled to be considered in a workshop in Tyumen, Russia in July 2011.

West Med Appraisal / Development Planning

In addition to the subsurface technical studies, development studies have commenced for commercialization of the large prospective resources and exploitation of the Well 103 discovery. These include but are not limited to the following:

Drilling & Well Engineering

Studies have commenced on well design and engineering for future appraisal and development well drilling planned for 4Q 2012. The company is in discussions with international and Russian service companies and has compiled initial budgetary estimates for the wells and drill pads.

These studies conclude that the wells may be drilled in clusters of 3 to 10 to significantly reduce location preparation and access cost. This will have a marked impact on development economics.

Surface Production Facilities & Infrastructure

Conceptual design work has commenced to establish costs and schedules for oil, gas and condensate production facilities and supporting infrastructure. The gathering and distribution network design and engineering will be phased with facilities design, starting with fast track development of the Well 103 discovery.

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Legend O&G Begins Drilling Program in Kansas

- Legend O&G Begins Drilling Program in Kansas

Wednesday, July 06, 2011
Legend O&G Ltd.

Legend O&G has drilled the first two wells of a three well program to develop its producing leases in Piqua, Kansas. The wells were drilled to a total depth of approximately 825 feet. It is anticipated the Company will commence the drilling of its third well in this development program within the next week and may consider drilling additional wells on these leases before year-end.

"Oil prices remain strong and the geological review of the leases indicate this development program can be commercially successful on the Orth-Gillespie, Gillespie South and Cress leases on the south part of our holdings at Piqua, Kansas," said Legend's President, Marshall Diamond-Goldberg.

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GE O&G Wins Gig at Chevron's Big Foot Field

- GE O&G Wins Gig at Chevron's Big Foot Field

Wednesday, July 06, 2011
GE O&G

GE O&G' Drilling & Production business has received a contract of approximately $45 million to supply and service the industry's largest tension leg platform (TLP) marine riser Tensioner Systems to Chevron for deployment in its Big Foot oil and gas field in the deepwater Gulf of Mexico.

A TLP is a vertically moored floating structure suited for use in a wide range of water depths. GE is making key design modifications to develop 'push-up' style marine riser Tensioner equipment to enable the Chevron Big Foot oil and gas field TLP to deal with the challenging wave and current movement conditions of deepwater applications. To date, TLPs have been successfully deployed in water depths approaching 5,000 feet. The GE-Chevron Big Foot unit will be the first to operate in depths of 5,200 feet.

Manuel Terranova, senior vice president—global regions and sales, Drilling & Production, GE Oil & Gas said, "For this deepwater application, we are utilizing innovative technology to deliver customized 'push-up' style TLP Tensioners that offer Chevron an efficient and reliable solution for their challenging deepwater requirements. We are pleased to be supporting this important Chevron project which will contribute to the stability of future U.S. energy supply."

The Big Foot TLP will be Chevron's sixth operated facility in the deepwater Gulf of Mexico and will be located approximately 225 miles south of New Orleans. The TLP will include an on-board drilling rig and will have a production capacity of 75,000 barrels of oil and 25 million cubic feet of natural gas per day. Installation of the TLP is scheduled to begin in November 2012 and first oil is expected in 2014.

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GE O&G Awarded Chevron Contract for Jack/St. Malo Fields

- GE O&G Awarded Chevron Contract for Jack/St. Malo Fields

Tuesday, July 05, 2011
GE O&G

GE O&G will supply three customized aeroderivative gas turbine-generator modules to provide reliable electric power for a new Chevron floating production unit that will produce oil and gas from the Jack/St. Malo fields in the Gulf of Mexico, approximately 280 miles south of New Orleans and at a water depth of approximately 7,000 feet.

GE will provide three LM2500+G4 gas turbine generator modules, each mounted on a three-point support base plate, designed with marine corrosion-resistant materials to overcome footprint restrictions and withstand pitch, roll and acceleration forces anticipated for a floating production unit operating in deep waters.

Marco Caccavale, North America region leader—turbomachinery, GE Oil & Gas said, "We are delighted to have been selected by Chevron for this important Gulf of Mexico project. To optimize reliable performance and efficiency and mitigate the considerable footprint restrictions offshore, we have design-engineered three unique modular solutions featuring GE aeroderivative gas turbine technology at their core. This topside, offshore project reflects GE's ability to supply mission-critical equipment across key segments of the oil and gas value chain and builds on our track record of supplying fixed and floating projects worldwide, including for projects offshore Angola, Brazil, China and Norway."

The LM2500+G4 gas turbines will be manufactured by GE Aero Energy in Evendale, Ohio, while the generator package assembly and testing will take place at GE Oil & Gas' facilities in Massa, Italy. Shipment of the equipment is scheduled to start in December of 2011, with commercial startup planned by early 2013.

Chevron's initial development of the Jack and St. Malo fields will be comprised of three subsea centers tied back to a hub production facility with an initial capacity of 170,000 barrels of oil and 42.5 million cubic feet of natural gas per day.

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