DNO, RAK Petroleum Agree on Merge of RAK's Operating Units

- DNO, RAK Petroleum Agree on Merge of RAK's Operating Units

Monday, September 05, 2011
Dow Jones Newswires
STOCKHOLM
by Dominic Chopping

Norwegian oil company DNO International said Monday it has signed a definitive agreement to merge RAK Petroleum's oil and gas operating companies into the Norwegian company, completing talks that started in July of this year.

Under the proposed transaction with United Arab Emirates-based RAK Petroleum Public Company Limited, DNO will issue RAK Petroleum shares at NOK9.50 a share, valuing DNO at $1.64 billion, against a value of the RAK Petroleum assets of $250 million.

"By combining our two companies' assets and people, the enlarged DNO International will be positioned not only to extract greater value from the existing exploration and production properties but to play an even more active role in the Middle East and North Africa or MENA region," DNO Managing Director Helge Eide said in a statement.

He added that DNO is committed to further expanding its operations in the Kurdistan Region of Iraq.

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

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PPL Corp Says Susquehanna Nuclear Power Plant Operating Normally

- PPL Corp Says Susquehanna Nuclear Power Plant Operating Normally



Aug 23, 2011

The earthquake felt throughout the mid-Atlantic region has not affected regular operation at PPL Corporation's (NYSE:PPL) Susquehanna nuclear power plant near Berwick, the company announced.

Unit 1 of the plant continues to operate normally at full normal power while unit 2 had previously shut down for maintenance and remains in safe, stable conditions.

PPL is delaying the return of Unit 2 to full power as a precautionary measure.

PPL has declared an "unusual event" as a result of the earthquake. An unusual event is the lowest of four emergency classifications established by the U.S. Nuclear Regulatory Commission for nuclear power plants.

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Encore Energy Spins Off Operating Co in Tx.

- Encore Energy Spins Off Operating Co in Tx.

Tuesday, August 02, 2011
Encore Energy Inc.

Encore Energy announced plans to form an operating company in Texas.

Encore Energy, Inc., through a wholly owned subsidiary, has plans to form an operating company to supervise its drilling, completion and other future field activities in Texas.

"The purpose of this company is to work directly with contractors and oilfield service companies to supervise our future projects in Central East Texas," said Steve Stengell, Encore's President and CEO. Mr. Stengell and the other members of Encore's management team have previously served as an operator in both Texas and Oklahoma and have made several horizontal oil and natural gas discoveries in Central East Texas over the last several years.

"Horizontal drilling activity in Central East Texas remains very strong," added Stengell.

Encore is a proud member of the IPAA Independent Petroleum Association of America, Society of Petroleum Engineers and NFIB National Federation of Independent Businesses.

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Expro Opens New Operating Base in Canada

- Expro Opens New Operating Base in Canada

Wednesday, July 27, 2011
Expro International Group

Expro announced the establishment of a new, purpose-built operating base in Newfoundland, Canada.

Ground was broken on the new base in April 2011 and construction is expected to be completed in October of this year. Upon completion of construction, Expro plans to open the facility for business in November.

The new operating base will support the provision of well testing, subsea and DHV services for offshore Newfoundland. These service and product offerings will be enhanced going forward as new opportunities present themselves in the ongoing exploration and development of the offshore fields in the area.

"Expro Canada has experienced strong growth in the past few years, and the Eastern Canadian offshore is a critical part of this success as well as its future growth," said Carl Cooper, Frontier Division Manager for North America.

"Enabling this expected growth requires a purpose-built home from which our team can continue to provide world class equipment and services to the expanding industry."

When complete, the base will accommodate a team of 30 people, the majority of whom are local employees.

The new Expro facility will be located in the new Paradise Industrial Park in Paradise, Newfoundland. It will consist of a four-bay workshop with 8400 sq. ft. of warehouse area, an office annex with 6000 ft. of office space on two levels, and an acre of paved and fenced yard.

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McDermott Names New Chief Operating Officer

- McDermott Names New Chief Operating Officer

Thursday, June 30, 2011
McDermott International

McDermott International, Inc. announced today that John T. ("Jack") McCormack has been appointed Executive Vice President, Chief Operating Officer of McDermott International, Inc. effective June 30, 2011.

"Jack has been instrumental in leading our Asia Pacific and Middle East operations to exceptional performance," said Stephen M. Johnson, McDermott's Chairman, President and Chief Executive Officer. "Jack has been with McDermott since 2003 and has extensive experience in the capture and execution of major engineering and construction projects. His performance and background make him uniquely qualified for this position."

McCormack will succeed McDermott's current Chief Operating Officer John T. Nesser who previously indicated his intention to retire from McDermott in 2011.

"John Nesser's service to McDermott's employees, customers and shareholders has been nothing less than extraordinary. In John's nearly 13 years of service he has led both the Legal & Administrative functions as well as served as our Chief Operating Officer. He has created significant value for shareholders in each. I know of few executives in our industry that have the business knowledge, intellectual capability and personal integrity that John possesses. I wish John every success in his retirement," said Johnson.

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Pan Orient Highlights Operating Results for 2010 Year-End

Pan Orient Highlights Operating Results for 2010 Year-End

Thursday, April 14, 2011
Pan Orient Energy Corp.

Pan Orient provided highlights of its 2010 year end and fourth quarter consolidated financial and operating results, and provided an outlook for 2011. Please note that all amounts are in Canadian dollars unless otherwise stated and BOPD refers to barrels of oil per day net to Pan Orient.

 

2010 HIGHLIGHTS

• Funds flow from operations of $59.0 million ($1.22 per share) and net income attributable to common shareholders of $20.6 million ($0.43 per share) for 2010.
• Total 2010 capital programs in Thailand, Indonesia and Canada of $61.3 million were financed 96% by after tax funds flow from operations and 4% from working capital.
• Capital expenditures were $43.4 million in Thailand, $17.0 million in Indonesia and $0.9 million in Canada.
• Average 2010 oil sales in Thailand of 3,884 BOPD with 4,056 BOPD for the fourth quarter of 2010.
• Strong generation of after tax funds flow from Thailand operations with $17.7 million for the fourth quarter of 2010 ($47.46 per barrel) and $58.2 million for 2010 ($41.05 per barrel).
• Drilling of 25 exploration and appraisal wells in Thailand during 2010 with 10 wells at the Wichian Buri Extension Field ("WBEXT"), five wells at Bo Rang, seven wells at Na Sanun East, two wells at Concession L33, and one well at Concession L53.
• Discovery of the WBEXT field in Concession L44 (Pan Orient operator and 60% ownership) resulted in a new 12.45 square kilometer production license, 382,051 barrels of oil sales in the second half of 2010, and 8.2 million barrels of proven plus probable reserves were assigned at year-end.
• Drilling of two exploration wells in Concession L33 (Pan Orient operator and 60% ownership) resulted in the first discovery of hydrocarbons at commercial rates in Concession L33, a new 11.94 square kilometer production license, oil sales of 25,039 barrels commencing in November 2010, and 2.8 million barrels of proven plus probable reserves were assigned at year-end.
• At Concession L53 (Pan Orient operator and 100% ownership) a production license of 2 square kilometers was granted to Pan Orient, first oil sales from Concession L53 commenced in August 2010, and 1.4 million barrels of proven plus probable reserves were assigned at year-end.
• Thailand proved plus probable reserves of 31.9 million barrels at December 31, 2010 with 12.4 million barrels of new oil field discoveries in 2010 offset by a 15.7 million barrel downward revision of previously assigned reserves mainly at the Na Sanun Central and NSE-F1 fields in Concession L44/43. The net present value of proved and probable reserves after tax (using forecast prices and discounted at 10%) of Cdn$509 million, representing $9.00 per Pan Orient share based on the current 56.5 million Pan Orient shares outstanding.
• At December 31, 2010 Pan Orient had $31.4 million of working capital and long-term deposits, and no long-term debt.
• Subsequent to the year-end, Pan Orient closed a bought deal financing on March 8, 2011 with the issuance of 7,557,264 shares at a price of $6.55 per share for proceeds of $46.7 million net of expenses.

 

2010 OPERATING RESULTS

• Total 2010 capital programs in Thailand, Indonesia and Canada of $61.3 million were financed 96% by the $59.0 million in after tax funds flow from operations and 4% from working capital. Capital expenditures were $43.4 million in Thailand, $17.0 million in Indonesia and $0.9 million in Canada.
• Active 2010 drilling program in Thailand with the drilling of 25 wells (15.4 net wells) focused on exploration and appraisal wells to add new reserves and new development drilling opportunities for 2011. Six wells (4.0 net) were drilled in the fourth quarter of 2010, with five appraisal or exploration wells at the WBEXT field in Concession L44, and the L53-C well in Concession L53 (which spudded on December 30, 2010). Total capital expenditures in Thailand were $11.7 million in the fourth quarter of 2010 and a total of $43.4 million in 2010.
• Pan Orient drilled 22 wells in Concession L44 (Pan Orient operator and 60% ownership) during 2010 resulting in 12 producing wells and 5 wells which are waiting for workovers or sidetracking operations to evaluate different potential reservoirs.
• The WBEXT field was discovered in the third quarter of 2010 and a total of 10 exploration or appraisal wells were drilling during the year with capital expenditures for drilling of $14.7 million, and resulted in 382,051 barrels of oil sales. A production license of 12.45 square kilometers was granted for the portion of the field in Concession L44 by the Thailand Department of Mineral Fuels in February 2011. Proved and probable oil reserves assigned at December 31, 2010 were 8.2 million barrels from volcanic and sandstone reservoirs (with 5.3 million barrels assigned to reserves in Concession L44 and 2.9 million barrels assigned to reserves in Concession L33).
• Five wells were drilled at the Bo Rang fields during the first half of 2010 with capital expenditures for drilling of $5.8 million to further appraise and develop this field which was discovered in 2009. Oil sales in 2010 from the four producing wells resulting from this drilling program were 226,504 barrels.
• Seven wells were drilled at Na Sanun East in the Central and NSE-F1 fields during the first half of 2010 to continue appraisal of these fields and to evaluate further exploration potential. The program resulted in three producing wells, the NSE-G3 well which will be sidetracked to test a deeper volcanic objective, the NSE-F4 well which is being evaluated for a potential workover, and two wells not capable of production. Capital expenditures related to this drilling program were $10.7 million and oil sales in 2010 were 69,952 barrels.
• The two exploration wells drilled in Concession L33 (Pan Orient operator and 60% ownership) during the third quarter of 2010 resulted in the first discovery of hydrocarbons at commercial rates in Concession L33. Oil sales commenced in November 2010 with a production license of 11.94 square kilometers for the L33 field being granted by the Thailand Department of Mineral Fuels. Total capital expenditures during 2010 for drilling were $1.9 million and resulted in 25,039 barrels of oil sales and proved and probable oil reserves assigned at December 31, 2010 of 2.8 million barrels.
• Production in Concession L53 (100% ownership by Pan Orient) commenced in August 2010 with the L53-A well being placed back on-stream after Pan Orient received formal approval by the Thailand Department of Mineral Fuels for the 2.0 square kilometers L53-A Production License around the L53-A exploration well. Oil sales were 28,676 barrels in 2010, with 8,097 barrels (88 BOPD) in the fourth quarter of 2010. This new core area of operations west of Bangkok began production during 2010 and revenue from oil sales was used to fund the start-up of operations. This area has active operations in 2011 with a workover of the L53-A well to produce from additional sandstone zones, and drilling of new wells at L53-C (spudded December 30, 2010), L53-B and L53-A1. Proved and probable oil reserves assigned at December 31, 2010 were 1.4 million barrels from sandstone reservoirs.
• The independent reserves evaluation conducted by Gaffney, Cline & Associates (Consultants) Pte. Ltd. of Singapore ("Gaffney Cline") for the Thailand assets at December 31, 2010 assigned proved plus probable reserves of 31.9 million barrels at December 31, 2010, a 13% decrease from 36.7 million barrels at December 31, 2009. Proved plus probable reserves at December 31, 2010 include 12.4 million barrels of new oil field discoveries in 2010 at the Wichian Buri Extension field ("WBEXT") in Concessions L44/43 & L33/43, the L33 field in Concession L33/43, and the L53A field in Concession L53/48 offset by a 15.7 million barrel downward revision of previously assigned reserves mainly at the Na Sanun Central and NSE-F1 fields in Concession L44/43.
• The net present value of proved and probable reserves after tax for the four concessions in Thailand, using forecast prices and discounted at 10%, is Cdn$509 million, an increase of 11% over the prior year and representing $9.00 per Pan Orient share, based on the current 56.5 million Pan Orient shares outstanding.
• Average Thailand oil sales in 2010 were 3,884 BOPD and 4,056 BOPD for the fourth quarter of 2010. Pan Orient continued to experience significant fluctuations in production levels in 2010 from volcanic reservoirs which can be initially very prolific before they achieve a stabilized production level and water cut.
• Oil sales averaged 2,246 BOPD in the first quarter of 2011 reflecting the temporary shut-in of WBEXT-1, WBEXT-1A and WBEXT-1B wells starting in December 2010 at the expiry of their respective 90 day production test periods, and reduced oil production of the WBEXT-1C well as a result of water incursion as outlined in the press releases of January 6th and February 9th, 2011. The WBEXT production license was granted on February 24, 2011 and the three temporarily shut-in wells were brought on-stream at reduced rates to minimize the water cut.
• The oil sands project at Sawn Lake, Alberta operated by Andora Energy Corporation (which is owned 53.4% by Pan Orient) as at December 31, 2010 was evaluated by Sproule Associates Ltd. ("Sproule"). The contingent resource volumes estimated in the Sproule report are considered contingent until such time as commercial recovery has been demonstrated, regulatory approvals have been obtained and the company has committed to proceed with commercial development. Contingent Resources are further classified as "High", "Best" and "Low" in accordance with the level of certainty.

The report assigned Sawn Lake "Best Case" contingent resources of 114.4 million barrels attributed to the 53.4% ownership interest of Pan Orient in Andora. The net present value of the "Best Case" (discounted at 10% before income tax using forecast prices) attributed to Sawn Lake contingent resources is $222 million to the 53.4% ownership interest of Pan Orient in Andora. The Net present value of the "Best Case" (discounted at 10% after income tax using forecast prices) attributed to Sawn Lake contingent resources is $136 million to the 53.4% ownership interest of Pan Orient in Andora.

• Capital expenditures in Indonesia were $1.6 million for the fourth quarter and a total of $17.0 million for 2010.

At the Batu Gajah PSC in 2010 (onshore Sumatra - POE 97% working interest and operator) there was completion of the 500 line kilometre 2D seismic program, the associated seismic data processing and mapping, permitting and initial field work related to the 2011 three well exploration program. The Tuba Obi Utara-1 well started drilling in March 2011 and will be followed immediately by the SE Tiung-1 and Betano-1 wells. Capital expenditures in 2010 related to the Batu Gajah PSC were $8.3 million.
At the Citarum PSC in 2010 (onshore Java - Pan Orient 77% working interest and operator) there was completion of the 2D seismic program and the associated seismic data processing and mapping. Targets have been selected for a three well exploration program that is scheduled for commencement of drilling late in the third quarter or early in the fourth quarter of 2011. Capital expenditures in 2010 related to the Citarum PSC were $8.3 million.

Antrim Reports Year-End 2010 Financial, Operating Results

Antrim Reports Year-End 2010 Financial, Operating Results

Wednesday, March 30, 2011

Antrim Energy Inc.

Antrim released its 2010 year-end financial and operating results. The results include a summary and evaluation of reserves that have been independently assessed by McDaniel & Associates Consultants Ltd. in accordance with the standards specified by National Instrument 51-101.

All financial figures are audited and in US dollars except for quarterly figures which are unaudited.

2010 Highlights:

• Conditional sale and farm-out terms agreed for the UK North Sea Causeway and Fyne Development properties
• Multiple exploration targets identified on Antrim's UK North Sea 25th Round licenses
• Two new UK North Sea licenses awarded in the 26th Seaward Licensing Round
• Terms agreed for Antrim's carried interest through the seismic phase on the Pemba-Zanzibar License in Tanzania
• Argentina 2010 drilling program completed - eight wells cased for production
• Average gas price in Argentina increased 20% to $1.84 per mcf over 2009

2011 Highlights:

• Antrim raised $48.5 million in net proceeds from equity financing to drill exploration targets on the UK North Sea 25th Round licenses
• Current cash position of $75 million and no bank debt

Antrim completed 2010 with a healthy cash position of $25.7 million, no bank debt and proved plus probable reserves of 34.9 million barrels of oil equivalent ("boe"), approximately 6.2% lower than in 2009. Production in Argentina decreased slightly to 1,783 barrels of oil equivalent per day ("boepd") from 1,840 boepd in 2009. Production decreased due to the sale of the Puesto Guardian property in February 2010, partially offset by production from new wells drilled in Tierra del Fuego.

In the United Kingdom, total proved plus probable reserves were 27.7 million boe (net to Antrim) as at December 31, 2010, the same as in 2009. Fyne and Dandy total proved plus probable reserves at December 31, 2010 remained at 17.5 million boe, unchanged from 2009. Two exploration wells are planned for the latter part of 2011 in licences adjacent to Fyne (the "Greater Fyne Area"). The Fyne and Dandy fields represent 50.2% of the Company's total proved plus probable reserves as at December 31, 2010. Causeway total proved plus probable reserves remained at 10.2 million boe (net to Antrim).

In October 2010, Antrim signed an Earn In Agreement ("EIA") with Premier Oil UK Limited ("Premier") to jointly explore development options for Fyne and the Greater Fyne Area located in the UK Central North Sea. Under the terms of the EIA, Premier paid initial consideration of $2 million to Antrim for an option to acquire a 39.9% interest in the UK Continental Shelf ("UKCS") License P077 Block 21/28a (the "Fyne License).

In return, Antrim will receive up to $50 million, less the initial consideration, towards its remaining working interest share of development costs of the Fyne Field. The option to farm-in has not yet been exercised. The UK reserves previously described do not reflect the impact of this transaction as it has not yet closed.

In March 2010, Antrim signed a Conditional Letter Agreement ("CLA") with Valiant Petroleum plc ("Valiant") to sell a 30% interest in UKCS Licenses P201 Block 211/22a South East Area and P1383 Block 211/23d (the "Causeway Licenses"). In return, Antrim will receive up to $21.75 million towards their remaining working interest share of development costs of the Causeway Field. The UK reserves previously described do not reflect the impact of this sale as the transaction has not yet closed.

In Argentina, total proved plus probable reserves in Tierra del Fuego decreased by 22.6% to 7.1 million boe as at December 31, 2010 compared to 9.24 million boe in 2009 (net to Antrim). This reduction was due to 2010 production and the impact of remapping of undeveloped drilling locations in the Los Flamencos gas field following the 2010 drilling campaign.

In Tierra del Fuego, a ten well (net 2.5) development drilling program designed to increase gas and NGL production from the Los Flamencos gas field, commenced in late February 2010 and was completed in December 2010. Eight of the ten wells have been cased as producers and three have been tied in as of December 31, 2010. The remaining five cased wells are expected to be completed and placed on production by the end of the second quarter of 2011.

In December 2010, Antrim signed an agreement with Ras Al Khaimah Gas Tanzania Limited ("RAK Gas") and NOR Energy AS whereby Antrim replaced its previous right to be carried for 30% through the pre-drilling exploration phase of the Pemba-Zanzibar Production Sharing agreement ("P-Z PSA") with a 20% carried interest through the pre-drilling phase and an additional 10% right to participate in the P-Z PSA to be exercised up to 180 days following receipt of the initial drilling results. The carried interests (up to 30%) are to be repaid from future production.

On March 17, 2011, Antrim issued 48,191,700 common shares at a price of Cdn $1.07 per common share for gross proceeds of Cdn $51.6 million (net proceeds Cdn $48.5 million) which included 6,191,700 common shares issued to the underwriters pursuant to the 98.3% exercise of the over-allotment option.

Net proceeds from the equity financing will be used for exploration of the Greater Fyne Area including the "West Teal" Fulmar Prospect at 11,500 feet drilling depth, which contains a discovery well drilled by a previous operator in 1991 that was subsequently abandoned after encountering mechanical problems, and the "Carra" Tay Prospect at 5,000 feet drilling depth.
On March 28, 2011, Antrim announced that it had signed a Letter of Award ("LOA") with AGR Peak Management Limited to drill two wells (the West Teal and Carra Prospects) commencing in the third quarter of 2011. The LOA is for a minimum duration of 50 days.

Reserves Summary

Oil and gas revenue of $12.5 million for the year ended December 31, 2010 decreased from $13.0 million in 2009. Revenue decreased as a result of lower oil production partially offset by higher gas production and by higher oil and gas prices received. Antrim generated cash flow from operations of $1.5 million in 2010 compared to a cash flow from operations deficiency of $1.1 million in 2009. Cash flow increased due to lower operating and general and administrative costs and higher interest and other income offset by lower revenue.

Net production to Antrim in 2010 was 1,783 boepd compared to 1,840 boepd for 2009. For the three month periods ended December 31, 2010 and 2009, net production was 1,757 and 1,990 boepd respectively. Production decreased due to the sale of the Puesto Guardian property in February 2010 partially offset by production from new wells drilled in Tierra del Fuego. All of Antrim's production is based in Argentina.

Expenditures on petroleum and natural gas properties in 2010 were $6.7 million compared to $4.8 million in 2009. The 2010 capital expenditures are net of $2 million received from Premier for the Fyne option. Capital expenditures in 2010 related to the drilling program in Argentina and ongoing development costs on the UK properties.

2011 Outlook

Antrim expects to have a Field Development Plan for Causeway submitted and approved in 2011 for an anticipated production startup in the middle of 2012. Production startup from the Fyne Field is anticipated in the middle of 2013.

In 2011, Antrim will use its strong financial position to take a leading role in the exploration of the Greater Fyne Area. The drilling program is scheduled to begin in the third quarter with a well drilled and tested on the West Teal Prospect (Antrim 100%). The well is expected to take 55 days to drill and test and cost approximately $30 million.

An additional exploration well in the Greater Fyne Area is expected to be drilled on the Carra Prospect. The well is expected to take 19 days to drill, at an estimated cost of $12 million.
An East Fyne appraisal well is scheduled to be drilled on the Fyne Field. This well is intended to de-risk the eastern extent of the Fyne Field and extend the submission deadline of the FDP for Fyne to June 25, 2012.

In Argentina, Antrim's focus will be on the recently acquired Cerro de Los Leones License (Antrim 50.1% and operator) in the Neuquen Basin. A 3-D seismic program is planned to be shot to support the drilling of at least one exploration well on the license in 2011. Cash flow from Antrim's expected 1,800 boepd from Tierra del Fuego will be used to support this exploration program and any new in-country opportunities.

In East Africa, Antrim holds an option to participate up to 30% working interest in an exploration program on the Tanzanian Pemba-Zanzibar License. This region has recently experienced a significant increase in exploration activity, with several major discoveries announced by consortiums led by Anadarko and British Gas. The Pemba-Zanzibar License has been in an effective force majeure for several years. Antrim expects this impasse could be resolved with the recently announced agreement signed with RAK Gas LLC, a UAE-based exploration and production company with interests elsewhere in Tanzania.

Antrim also considers other global exploration opportunities and views its bilateral strategy of balancing longer term and capital-intensive investments in the UK North Sea with shorter investment cycle on-shore exploration and production opportunities as central to its corporate development.