Gulf Keystone All Smiles over Shaikan Appraisal Program

- Gulf Keystone All Smiles over Shaikan Appraisal Program

Monday, September 05, 2011
Gulf Keystone Petroleum Ltd.

Gulf Keystone provided an update on its ongoing exploration and appraisal program for the Shaikan block in the Kurdistan Region of Iraq. Shaikan is a major discovery with independently audited gross oil-in-place volumes of between 4.9 billion barrels to 10.8 billion barrels calculated on the P90 to P10 basis with a mean value of 7.5 billion barrels.

Shaikan-2 Well Test Update

Further to the announcement on the new Triassic discovery with the Shaikan-2 Appraisal Well, the Company has completed a flow test in the lower section of the Kurre Chine B zone in the Upper Triassic zone of the Shaikan-2 Appraisal Well drilled approximately nine km to the south-east of the Shaikan-1 discovery well.

The Kurre Chine B flow test in Shaikan-2 achieved flow rates of 2,600 barrels of 40 degree API oil per day with associated gas of 5.4 MMcf per day through a 48/64"choke.

So far, the Company has conducted three wells tests on Shaikan-2 with the maximum aggregate flow rate in excess of 15,000 barrels of oil per day ("bopd") with up to five additional tests still to be performed as part of the ongoing Shaikan-2 testing program in the Triassic and Jurassic. The next test will be conducted on the upper section of the Kurre Chine B.

Shaikan-4 Drilling Update

The Shaikan-4 Appraisal Well, drilled six km to the west of the Shaikan-1 discovery well, is currently drilling ahead at a measured depth (MD) of 2,580 meters. Preliminary well logs through the upper Jurassic (down to the top of the Butmah formation) indicate that the net pay count on this well for the upper Jurassic reservoirs is significantly better than those achieved with either Shaikan-1 or Shaikan-2.

John Gerstenlauer, Gulf Keystone's Chief Operating Officer commented, "This latest in a series of successful Shaikan-2 well tests follows the announcement of the new Triassic discovery made with this well earlier this month. Together with the progress in the Shaikan-4 drilling operations and the oncoming spudding of Shaikan-5, it is a confirmation of Gulf Keystone's success in both drilling and proving the value of the giant Shaikan field, which is our immediate focus".

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Weather Watch: Tropical Depression Stalls Over GOM

- Weather Watch: Tropical Depression Stalls Over GOM

Friday, September 02, 2011
Rigzone Staff
by Karen Boman

Shell reported Friday that Tropical Depression #13, which has winds near 35 mph and is stalled over the Gulf of Mexico, is impairing its efforts to evacuate staff from its deepwater operations.

The company has evacuated 550 workers and is using all available resources to safely evacuate employees. The number of personnel evacuated Friday will depend on weather conditions, "and we will only transport personnel if safe to do so", the company said.

Shell has shut in the Auger, Enchilada, Brutus and the Europa subsea field. Shell's non-operated downstream infrastructure partners have proceeded in evacuating their facilities and their actions have resulted in some production shut-ins as well.

The National Hurricane Center (NHC) reports that Tropical Depression No. 13 has maximum sustained winds near 35 mph with higher gusts. NHC forecasts the depression to strengthen during the next 48 hours, with the depression possibly becoming a tropical storm later Friday.

NHC reports winds of tropical storm force are being reported on oil rigs north and east of the storm's center at elevations of a few hundred feet. The center of the cyclone is expected to approach the coast of southern Louisiana during the weekend. A tropical storm warning is in effect from Pascagoula, Miss., to Sabine Pass, Texas.

The storm system's greatest impact will be on production, as producers have moved to shut in oil and gas supply, but the tropical disturbance will not likely cause major damage to oil and gas infrastructure, said Dan Leonard, senior meteorologist at Weather Services International (WSI). The storm is expected to bring 30-40 mph winds to the Gulf production region east of the mouth of the Mississippi River, even after it makes landfall.

The tropical disturbance in the Gulf is unusual as most systems that go into the Gulf of Mexico usually develop in the Atlantic Ocean or the Caribbean Sea, said Leonard. The tropical depression, which will strengthen over the next 24 to 36 hours, will stall along the immediate Louisiana coast Sunday and Monday before moving up through Louisiana and Alabama at mid-week next week. "The system is significant in that you'll have a long duration wind event in one area for so long."

Tropical Storm Katia, which had previously strengthened to a Category 1 hurricane, is not expected to impact the Gulf of Mexico.

Enterprise Products Partners has shut in its Poseidon and Cameron Highway pipelines due to the storm in the Gulf. The two pipelines have combined actual throughput of 250,000 b/d, with a net impact of 100,000 b/d on Enterprise.

The company also has evacuated workers from its nine operated platforms at High Island Block 85, South Marsh Island 205, Garden Banks Block 72, East Cameron Block 373, Mustang Island Block A-103, Viosca Knoll Block 817, West Delta Block 68, High Island A264 and West Cameron Block 167.

The Cameron Highway Pipeline serves multiple refineries in the Texas City and Port Arthur, Texas areas; Poseidon serves refiners in the Houma, La., area. Both pipelines also connect to other pipeline systems onshore.

The company is monitoring the storm to determine when it's safe to resume operations, said company spokesperson Rick Rainey.

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Myanmar O&G Exploration Tender Draws over 50 Bids

- Myanmar O&G Exploration Tender Draws over 50 Bids

Thursday, September 01, 2011
Dow Jones Newswires
SINGAPORE
by Cheang Chee Yew

Myanmar has received more than 50 bids for an oil and gas exploration tender, which closed last week, a government official said Thursday.

The bidders are from China, Europe, Middle East, Russia and Southeast Asia, the official, who didn't wish to be named, said.

The energy planning department is now short-listing the bidders and will invite selected firms to review the geological and geophysical data of 18 onshore blocks, mostly in central areas, the official said.

Each short-listed foreign firm is required to form a joint venture with an approved Myanmarese company to bid in the tender. Local companies participating in the tender have to register with the energy ministry by Sept. 9.

Once the review of geological and geophysical data is completed, the joint ventures can submit details on the work program and budget to the ministry.

As of April 1, 2008 the country's proven onshore and offshore crude-oil reserves were 112 million barrels and 101 million barrels respectively, Myanmar Oil and Gas Enterprise, which regulates the upstream oil and gas sector, said previously.

Proven onshore and offshore natural gas reserves totaled 0.46 trillion cubic feet and 17 trillion cubic feet respectively.

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

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Jubilant Energy Joyful Over Kharsang Well Spud

- Jubilant Energy Joyful Over Kharsang Well Spud

Tuesday, August 30, 2011
Jubilant Energy N.V.

Jubilant is pleased to announce that the KPL-DX exploration well in the southern part of the Kharsang Field has been spudded on 28 August 2011. The well is targeting the hydrocarbon potential of the lower Girujan and deeper reservoirs.

The lower Girujan formation underlies the producing upper Girujan reservoirs and is expected to contain oil and gas bearing reservoir sands. The deeper reservoirs have proven to be prolific producers in nearby acreages. Success at the KPL-DX exploration well could open up new prospective deeper horizons in the Kharsang field. The management estimate of prospective resources for this exploration prospect on a gross and unrisked basis is 342 bcf of gas and 20 mmbbls of oil.

The well is located 458 metres from the existing well pad, KSG-29 to the South-South West, and will be drilled to a total depth of around 2,800 metres True Vertical Depth. The well is expected to take two months to complete and the estimated cost is approximately USD 5.7 million (approximately USD 1.4 million net to Jubilant).

GeoEnpro Petroleum Ltd., a joint venture of GeoPetrol and Jubilant Enpro (a member of the wider Jubilant Bhartia Group), is the operator of the Kharsang Field. Jubilant holds a 25% interest in the block through its subsidiary, Jubilant Energy (Kharsang) Pvt Ltd. The other members of the consortium are Oil India Ltd and GeoPetrol.

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ConocoPhillips Faces Suit in China Over 2 Oil Spills

- ConocoPhillips Faces Suit in China Over 2 Oil Spills

Thursday, August 25, 2011
International Herald Tribune
by Edward Wong

The spills at the country's largest offshore oil field, developed by ConocoPhillips and China National Offshore Oil Corp., have released about 3,200 barrels of oil and drilling fluids into the sea.

The Chinese maritime authority is preparing to sue ConocoPhillips, the American oil company, over two oil spills that took place in June and engulfed large swaths of Bohai Bay in north China, according to a report by Xinhua, the state news agency.

The report, which appeared Wednesday, said the government agency, the State Oceanic Administration, was aiming to prepare a team of lawyers by the end of the month. It cited an agency spokesman as saying that 49 Chinese law firms had applied to provide legal assistance in the lawsuit, which would demand compensation.

The two spills at Penglai 19-3, the country's largest offshore oil field, covered at least 840 square kilometers in Bohai Bay and was the biggest oil disaster in China since a pipeline explosion in Dalian in July 2010 resulted in a leak into the Yellow Sea. About 3,200 barrels of oil and drilling fluids have spilled into Bohai Bay from the June accident. Penglai is being developed by ConocoPhillips and China National Offshore Oil Corp., commonly known as Cnooc.

John Roper, a spokesman for ConocoPhillips, which is based in Houston, said in an e-mail Thursday that the company had not received any notice of litigation.

"As far as compensation goes, we will listen to any requests and follow Chinese law, but we have not received any notification of claims," he said. "Cleanup efforts are going very well. We are more than 95 percent finished with the cleanup of mineral oil-based drilling mud and expect to reach our target of being 100 percent by the end of August."

Mr. Roper added that there was no more oil sheen on the surface of the water.

The Xinhua report said the oil spills had spread to beaches in the provinces of Hebei and Liaoning and were being blamed for a slowdown in local tourism and for economic damage to aquatic farming industries. The report also said "nine new oil spill sources" had been found in the bay as of last Saturday.

Mr. Roper said those nine seeps were not from new leaks but rather were residual oil and drilling mud from the June 17 spill that were now migrating to the surface. "Divers were only able to see them once the drilling mud was cleared away from the seafloor," he said. The seeps are small, are clustered together and are releasing a total volume of fluids of one to two liters per day "that is being immediately contained and cleaned up."

In Hong Kong on Wednesday, the chairman of Cnooc, Wang Yilin, addressed the compensation issue.

"If Cnooc is ruled to pay any form of compensation, we will certainly fulfill our commitment and do the right thing," Mr. Wang said at a news briefing after the company announced its first-half earnings, according to Bloomberg News. "Cnooc is a responsible company, and we honor our long-term commitment to the country, people and the environment."

Georg Storaker, president of ConocoPhillips China, said at a news conference in Beijing on Wednesday that the spill in Bohai Bay should not be compared with the disastrous spill in 2010 in the Gulf of Mexico for which BP was blamed.

(C) 2011 International Herald Tribune. via ProQuest Information and Learning Company; All Rights Reserved

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Exxon Mobil Estimates Oil spill in Yellowstone River will Cost Over $42 Million

- Exxon Mobil Estimates Oil spill in Yellowstone River will Cost Over $42 Million



Aug 22, 2011

Exxon Mobil (NYSE:XOM) Pipeline told federal regulators that its oil pipeline spill into Montana's Yellowstone River will cost an estimated $42.6 million.

The July 1 pipeline break near Laurel spilled about 42,000 gallons, or 1,000 barrels, of crude oil into the scenic waterway.

Exxon Mobil's cost estimate includes $40 million for emergency response work and $2.5 million for damage to public and private property. The company valued the lost oil at $100,000.

The company announced last week that the clean up might continue for several more months.

Exxon Mobil (NYSE:XOM) has a potential upside of 30.6% based on a current price of $70.78 and an average consensus analyst price target of $92.46.

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OPEC Shaves Oil Demand Outlook, Sees 'Dark Clouds' over Econ

- OPEC Shaves Oil Demand Outlook, Sees 'Dark Clouds' over Econ

Tuesday, August 09, 2011
Dow Jones Newswires
LONDON
by Benoit Faucon

OPEC Tuesday trimmed its global oil demand growth forecast for 2011 and warned it could cut the outlook further, signaling that mounting economic woes are biting into the world's crude consumption.

In its monthly report, the Organization of Petroleum Exporting Countries reduced the global demand growth forecast for this year by 150,000 barrels of oil a day--the deepest such cut this year--on a downgrade in its U.S. economic growth outlook and weakening Chinese prospects.

"Dark clouds over the economy are already impacting the market's direction," OPEC said. "The potential for consequent deterioration in market stability requires higher vigilance and close monitoring of developments over the coming months."

Global oil demand will still rise by 1.2 million barrels a day, and the downgrade represents only a fraction of the 88.14 million barrels a day OPEC expects to be consumed this year worldwide.

OPEC warned that were higher oil prices to persist or the most industrialized economies to suffer further setbacks, it might trim the forecast by another 200,000 barrels a day. OPEC produces more than one in three barrels consumed worldwide each day.

Coming hard on the heels of a drop in oil prices by over 10% since early August, the downgrade could give ammunition to an Iran-led group that has fought higher oil output. A June OPEC meeting in Vienna ended in acrimony after a Saudi Arabia-led group failed to persuade OPEC that an anticipated surge in oil demand this year merited an output increase.

OPEC Tuesday cut its U.S. economic growth forecast to 1.8% in 2011 from 2.5% previously. U.S. oil consumption data for May showed the largest decline observed since January 2010 and demand contraction in industrialized countries was expected to continue.

OPEC also said demand in China--the engine of oil consumption growth in recent years-has been losing steam. The country's factory sector grew in June at its slowest pace in 28 months, OPEC said.

OPEC estimated demand for its own crude remained unchanged for 2011 and is still up 200,000 barrels compared to last year, as the global demand downgrade is offset by lower-than-expected non-OPEC supply. The OPEC oil demand outlook, however, was cut by 100,000 barrels a day for next year.

But the group's data also still points to a supply gap of 811,000 barrels a day in the second half of this year, according to a Dow Jones calculation of the difference between current oil output and OPEC's demand forecast for the coming period.

But the crystal ball will roll into the consumers' camp with the U.S. Energy Information Administration expected to release its own report later Tuesday, followed by the International Energy Agency Wednesday.

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

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Oil-Drilling Safety Bill Stalls Amid Fight over Oil Royalties

- Oil-Drilling Safety Bill Stalls Amid Fight over Oil Royalties

Friday, July 22, 2011
Dow Jones Newswires
WASHINGTON
by Tennille Tracy

A group of mostly Republican lawmakers blocked a key vote on legislation to strengthen oil-drilling safety Thursday after efforts to use the bill to steer billions of dollars of oil royalties to coastal states like Alaska and Louisiana appeared likely to fail.

The move postpones an important committee-level vote on offshore safety legislation that has been in the works for more than a year, following the Deepwater Horizon oil spill in 2010.

The delay gives more time to behind-the-scenes deal makers to work out a compromise on so-called revenue-sharing proposals, which would direct nearly 40% of royalty revenue away from the federal government and to the coastal states.

But the delay also raises questions about the fate of the offshore drilling safety legislation and the ability of lawmakers to move that bill to the floor of the Senate.

Events unfolded Thursday at the Senate Energy and Natural Resources Committee, which was scheduled to hold a much-anticipated vote on legislation that steps up enforcement of drilling safety standards and strengthens drilling safety provisions.

Heading into the vote, two coastal senators--Sens. Mary Landrieu (D., La.) and Lisa Murkowski (R., Alaska)--were actively recruiting support for an amendment that would steer 37.5% of oil royalties, which are currently collected by the federal government, to coastal states.

With the federal government reporting more than $5 billion in offshore royalty revenue in 2010, such a move would be a big win for coastal state governments. Landrieu has supported such a proposal for years, arguing that coastal states are entitled to some of the royalty revenue that comes from all production off their shores.

An existing law allows Gulf Coast states to collect 37.5% of royalty revenue on some leases, starting in 2017.

Because Landrieu and Murkowski need the support of at least some Democrats to attach the revenue-sharing amendment to the drilling safety bill, they decided in 11th-hour deal-making to create a fund to promote clean energy. In doing so, they hoped to attract the support of some Democrats, a Republican aide said.

But when a measure to create such a fund failed in the committee Thursday, the chance of success for the revenue-sharing plan decreased substantially. Several Republicans then walked out of the committee room, leaving the committee without enough members to hold a vote and effectively blocking any further action.

The fate of the offshore-drilling safety legislation is now uncertain, said Sen. Jeff Bingaman, a Democrat from New Mexico who chairs the energy committee. When asked by a reporter whether the bill could be revived, Bingaman shook his head and said, "I don't know."

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

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Newfield All Smiles over Uteland Butte HZ Play

- Newfield All Smiles over Uteland Butte HZ Play

Wednesday, July 20, 2011
Newfield Exploration Co.

Newfield Exploration provided a comprehensive update on its Uinta Basin oil development programs. The update follows the May 2011 closing of two acreage acquisitions for approximately $300 million. Combined, the two transactions added approximately 70,000 net acres. Newfield today owns interest in approximately 250,000 net acres in the Uinta Basin where its average working interest is more than 70%. Multiple oil-productive geologic targets exist across the acreage and an active drilling campaign is underway.

"We have a proven growth history in the Uinta Basin," said Lee K. Boothby, Newfield's Chairman, President and CEO. "We have been growing our oil production and reserves in the region since our entry in 2004. It's clearly an oil play where we have a competitive advantage. We drill 'best in class' wells, operate substantially all of our operations and have the personnel in place today to increase our activities cost effectively. We plan to aggressively develop our 6,000-plus well inventory of oil locations."

"We are excited about the potential of our new Uteland Butte horizontal oil play, as well as the early successes in our Wasatch development. These two new oil plays provide some of the highest return projects in our drilling portfolio today. We will optimize our drilling programs and continue to grow our domestic oil production in 2012. Over the last two years, we have effectively demonstrated our ability to shift people and capital to projects that yield both growth and returns."

For 2012, Newfield plans to increase its operated rig count in the Uinta Basin from an historic five-rig count to at least eight rigs. The Company expects 2012 Uinta Basin daily production will grow at least 25% over 2011. The increased play options combined with fewer permitting constraints will allow Newfield to significantly increase its future growth in production and reserves from the basin.

The Company's net resource potential in the Uinta is estimated today at more than 700 million barrels of oil (MMBO) equivalent. In addition to the shallow Green River oil play, Newfield today provided results from recent drilling in deeper oil objectives prevalent throughout the Company's acreage. A table summarizing the plays and their net resource potential is included within this release.

Uteland Butte

Recent transactions have added acreage north of the Company's traditional area of drilling -- Monument Butte. This area is referred to as the "Central Basin." Uteland Butte is a new horizontal oil play being developed by Newfield from 6,000' – 9,000' (total vertical depth, or TVD) and is prevalent across Monument Butte and the Central Basin – or approximately 80% of Newfield's total acreage in the basin. Portions of the play are geopressured and are expected to result in higher production rates and estimated ultimate recovery (EUR).

During the last year, Newfield has drilled six horizontal wells in the play. All of the wells to date have been drilled in the Monument Butte field. Initial gross 24-hour production rates from the Company's most recent wells have averaged 24-hour initial production (IP) of approximately 500 barrels of oil equivalent per day (BOEPD), or more than six times the IP rate of a traditional, vertical Green River well.

Based on an estimated inventory of at least 1,800 locations (160-acre spacing), Newfield's net resource potential associated with the Uteland Butte formation is nearly 300 MMBO equivalent. The Company estimates that the wells will have an average gross EUR of approximately 300,000 BO equivalent and can be drilled and completed on average for approximately $2.8 million.

Newfield plans to complete an additional four horizontal wells in the Uteland Butte play in the second half of 2011. In 2012, the Company plans to drill more than 30 horizontal wells in the play.

Wasatch

The Wasatch formation is being developed throughout the Central Basin and is prospective at depths of 9,000' – 11,000' TVD. This is a southerly extension of the giant Altamont Bluebell field which has cumulative production to date of more than 400 MMBO equivalent. Over the last year, eight vertical wells have been drilled on Newfield's acreage. Recent vertical wells have average gross 24-hour IP rates of more than 1,000 BOEPD.

Newfield estimates that the net resource potential for this play is more than 45 MMBO equivalent. To date, the Company has identified approximately 380 locations (320-acre spacing) with expected average EURs of more than 260,000 BO equivalent. Gross completed well costs vary by geologic depth and are estimated to range from $1.2 – $3.3 million. The Company believes significant upside exists with future application of horizontal drilling and completion technology and through increased drilling density, which could double the expected net resource potential.

The Company expects to complete an additional 25 wells in the Wasatch in the second half of 2011. In 2012, Newfield expects to drill at least 50 wells in this play.

Green River

Newfield has been actively developing the shallow Green River formation since entering the Uinta Basin in 2004. Approximately 2,100 wells have been drilled to date on the Company's acreage. Newfield's Green River oil play is economically productive across at least 165,000 net acres.

The Company estimates that more than 4,000 undrilled locations remain to ultimately develop the Monument Butte field on 20-acre spacing and the Central Basin acreage on 40-acre spacing. Substantially all of the Company's acreage at Monument Butte is located on acreage under Bureau of Land Management jurisdiction. At the current pace of drilling activity, this equates to more than a 10-year inventory. To date, Newfield has drilled more than 300 wells on the Central Basin acreage and, with additional data, believes the area could be prospective for future waterflood and 20-acre development. Current resource estimates do not include the potential for 20-acre spacing or secondary recovery in the Central Basin.

Newfield estimates that the Green River formation has net remaining resource potential of approximately 360 MMBO equivalent (includes developed and undeveloped waterflood potential only in Monument Butte). At year-end 2010, Newfield had proved reserves in the Green River formation of approximately 140 MMBO equivalent.

Gross production from the Uinta Basin has grown from approximately 7,000 BOPD to approximately 22,000 BOPD today. Green River wells are today being drilled and completed in four to five days for approximately $930,000 gross. The wells have a gross EUR of approximately 75,000 BO equivalent. Since the Company's 2004 entry into the Monument Butte field, expected recovery of oil in place has increased from about eight percent to 16% or more. Newfield expects to drill about 300 wells in the shallow Green River in 2011. For 2012, Newfield expects to drill 250 – 300 wells as additional resources are allocated toward the new Uteland Butte and Wasatch plays.

Infrastructure Investments

Newfield is investing approximately $75 million into field infrastructure projects in 2011 – nearly matching the Company's cumulative investment in infrastructure from 2004-10. As development drilling has moved northeast and into deeper geologic horizons, the gas:oil ratio has increased. As a result, additional compression and enhanced gathering infrastructure is now required to accommodate the increased gas production. Once fully operational, the new facilities will allow for increased oil production from these areas. The Company expects to invest about $100 million into infrastructure projects in 2012 to accommodate long-term oil growth objectives from the Uinta Basin.

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GeoPark All Smiles over 2Q Operations

- GeoPark All Smiles over 2Q Operations

Thursday, July 07, 2011
Geopark Holdings Ltd.

GeoPark provided an operations update for the Second Quarter 2011. Financial results for the interim period ended June 30, 2011 will be released during September 2011.

Summary

During 2011, GeoPark is carrying out an aggressive 26-30 well drilling and investment program with expectations of achieving its sixth successive year of continuous performance growth. Currently, GeoPark's assets and operations include:

• Six petroleum blocks (operated by GeoPark) in Chile and Argentina covering a gross area of approximately 3.8 million acres - with a balanced portfolio of production, development and high-impact exploration opportunities.
• Proved and probable (2P) reserves of 49.6 million barrels of oil equivalent (boe).
• Current oil and gas production of approximately 8,000 barrels of oil equivalent per day (boepd).
• Fully-funded 2011 work program of US $80-90 million with three rigs in operation.
• Cash of approximately US $150 million and a strategic partnership with LG International from Korea to support new project acquisitions.
• Proven technical and management team built for expansion.

Drilling Performance

• Drilling operations resumed in late February 2011 on the Fell Block in Chile after the late arrival of a drilling rig and since that time GeoPark has drilled or is currently completing the drilling of nine wells - of which six have been completed, with four being put on production, and three wells are remaining to be completed and tested.
• Results of new wells are summarized below:

Well	Geological Formation	Depth (Meters)	Principal Hydrocarbon	Current Status	Approximate Production
Nika Sur 2 (Fell Block)	Springhill	2,983	Gas/Oil	Suspended	--
Monte Aymond 35 (Fell Block)	Springhill	2,404	Gas	On Production	8.8 mmscfd gas 100 bpd condensate
Copihue 1 (Fell Block)	Springhill	2,472	Gas	On Production	8.1 mmscfd gas 160 bpd condensate
Williche 1 (Fell Block)	Springhill	3,074	Gas/Oil	Waiting on Further Evaluation	--
Monte Aymond 36 (Fell Block)	Springhill	2,551	Oil	On Production	12 bopd
Konawentru 1 (Fell Block)	Tobifera	3,030	Oil	On Production	2,000 bopd
Alakaluf 10 (Fell Block)	Springhill	2,296	Oil	On Completion	Testing Beginning
Municion Oeste 2 (Fell Block)	Springhill	--	Gas/Oil	Drilling	Not Yet Reached Objective
Renoval 1 (Tranquilo Block)	Morro Chico	--	Gas	Drilling	Not Yet Reached Objective

Recent wells to be noted include the Konawentru 1 well which had an initial short term test in excess of 2,000 bpd of oil from the Tobifera formation (a non-conventional volcanic clastic formation underlying the Springhill) and the Williche 1 well which had an inconclusive well test with only minor hydrocarbons recovered and is now under further evaluation.

• Renoval 1, the first well to be drilled on the Tranquilo Block in Chile, has reached total depth of 3,027 meters and is now being logged and completed. Renoval 1 is targeting a 715 bcf (unrisked mean resources) prospect.

Seismic Operations

• Seismic data acquisition on the Tranquilo and Otway Blocks continued throughout the first half of 2011 - with 293 km of 2D seismic and 165 km2 of 3D seismic being shot in total. Additional seismic will be carried out in Otway during 4Q11.
• Geophysical processing and interpretation of these surveys are now underway to develop additional drilling prospects on these high potential blocks.

Production Performance

• GeoPark's oil and gas production increased to approximately 8,000 barrels of oil per day equivalent (boepd) at the end of June led by the drilling results detailed above -- with an average for the first half of 2011 of approximately 6,400 boepd. For the first half of the year, oil production averaged approximately 1,600 bpd of oil and gas production averaged 29 mmscfd of gas.
• GeoPark continued to invest in surface facilities to commercialize its drilling successes on the Fell Block and render its operations more efficient by continuing implementation of its performance management processes.

Strategic Developments and New Project

• GeoPark closed the sale of a 10% stake in its Chilean upstream business to LG International for US $70 million in May 2011. This development cements the strategic relationship between GeoPark and LGI, demonstrates the value of the business GeoPark has built in Chile and creates a strong foundation for a significant expansion of GeoPark's footprint in Latin America.
• As part of its partnership with LGI to acquire a portfolio of upstream assets throughout Latin America, GeoPark has been actively reviewing a range of asset and corporate opportunities, from a risk-reward and shareholder value creation perspective, in Chile, Colombia, Peru, Brazil and Argentina.
• Consistent with its objective of building access to multiple capital markets, GeoPark is evaluating the possibility of a full listing on the Santiago Stock Exchange in Chile.

Commenting, James Park, Chief Executive Officer, said, "We are pleased with our continuing progress and improvement during the Second Quarter, including the impactful Konawentru discovery, and look forward to further results throughout the remainder of the year from our active drilling program. Importantly, GeoPark has now positioned itself with, and provided funding for, three exciting growth platforms: 1. steady low risk organic growth from the Fell Block; 2. high-impact exploration opportunities from the Tranquilo and Otway Blocks; and 3. new project acquisitions in Latin America."

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Clough, SapuraCrest In Talks over Construction Business

- Clough, SapuraCrest In Talks over Construction Business

Wednesday, July 06, 2011
Clough Ltd.

Clough confirmed that it is currently in discussions with SapuraCrest Petroleum Berhad (SapuraCrest) regarding its Marine Construction business. These discussions may result in a sale transaction, cooperation and/or other business arrangement.

While the parties continue to make good progress with their discussions, no binding arrangements have been entered into and there is no assurance that any transaction

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Woodside Strikes Over A$1 Billion Deal With Landowners Over Browse

- Woodside Strikes Over A$1 Billion Deal With Landowners Over Browse

Thursday, June 30, 2011
Dow Jones Newswires
SYDNEY
by Ross Kelly

Woodside Petroleum Ltd. (WPL.AU) said Thursday that it has signed an agreement with landowners allowing it to develop the massive Browse gas export project in Western Australia state.

Woodside said the agreement with the Goolarabooloo Jabirr Jabirr native title claim group includes initiatives worth over A$1 billion, such as education, training and employment programs, support for indigenous businesses and payments when project milestones are met.

The Browse joint venture also includes Royal Dutch Shell PLC (RDSB.LN), Chevron Corp. (CVX), BHP Billiton Ltd. (BHP.AU) and BP PLC. (BP.LN).

It's planning to give final approval to the development, estimated by analysts to cost more than $30 billion, by mid-2012.

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

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Madagascar Oil Resolves Dispute over Tsimiroro Block; Updates Ops

- Madagascar Oil Resolves Dispute over Tsimiroro Block; Updates Ops

Friday, June 24, 2011
Madagascar Oil Ltd.

Madagascar Oil announced that the dispute with the Government of Madagascar in connection with the Tsimiroro Block has now been resolved. The Company also highlighted certain key operational highlights prior to its Full Year Results due to be announced on June 30, 2011.

Highlights

• Tsimiroro (Block 3104):
  • Uncertainty over the status of the Tsimiroro PSC has ended and validity of the PSC has been acknowledged by the Government of Madagascar
  • The 2011-2012 work program and budget have been approved
  • The right for MOIL to exercise its option for a two year extension to the PSC in August 2012 has been acknowledged, allowing certainty in extending the contract term to August 2014
  • OMNIS has acknowledged a delay due to the force majeure event that would be addressed at the end of the contract term if necessary
  • Significant operational progress was made in 2010, including 18 successful wells out of 24 new wells drilled and the completion of 430km of Electrical Resitivity Tomography
  • Activity for the installation of the Tsimiroro steam flood pilot facility will be ramped up immediately to progress to a start date expected in 3Q 2012
  • Netherland, Sewell & Associates Inc. is currently revising the 965 million barrels Contingent Original Oil-in-Place estimate to take into account the updated data acquired in 2010. The updated report is expected in July 2011
• Bemolanga (Block 3102):
  • The 2010 drilling program at Bemolanga completed 86 core wells and continued to support the estimate that the MOIL share of the gross mine resources is 470 million barrels Contingent Petroleum-initially-in-Place
  • Mining project postponed as current economics do not justify proceeding with this project at the present time.
  • Shift in work program focus to pursuit of conventional hydrocarbon potential on the Bemolanga block
  • MOIL and partner Total granted one year extension of the current PSC exploration phase, with provision for further two years
  • The amount of MOIL's carried interest reduced to $80MM from $100MM (gross) in revised JOA with $10 million remaining
• Exploration (Blocks 3105, 3106, 3107):
  • Discussions with the Government of Madagascar regarding the approval of the 2011-2012 work programs for exploration blocks and resolution of outstanding issues on these blocks are set to continue early July 2011
  • GORE micro-seepage survey collected across 880km²on the Exploration Blocks is currently under detailed analysis and will lead to further analysis of at least three drilling leads
• Corporate / Financial
  • Trading in Madagascar Oil's shares to resume 27 June 2011
  • MOIL has $59 million cash on hand to deliver the approved work plan designed to increase resources and prove commerciality of the Tsimiroro asset through a steam flood pilot, and for the additional work required to develop drillable prospects on the three Exploration Blocks

Commenting on the announcement, Laurie Hunter, Chief Executive Officer, said, "We are pleased to have resolved the issues that have led to the suspension in trading of our shares. The last six months have highlighted risks associated with operating in frontier petroleum provinces, but we believe that our recent constructive dialogue with the Government of Madagascar has served to reaffirm our historical compliance under our contracts, the amount of work that we have already completed to date, and our clear and well funded plans for future development to bring online the country's first commercial oil production."

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Noreco In Dispute with Dong over $400MM Rig Repairs

- Noreco In Dispute with Dong over $400MM Rig Repairs

Wednesday, June 15, 2011
Dow Jones Newswires
by Katarina Gustafsson

Norwegian Energy Co., known as Noreco, said Wednesday it is in dispute with Danish power firm Dong Energy over a DKK2 billion ($400 million) repair bill for a jointly owned oil rig in the Danish North Sea.

Noreco said it won't participate in, nor finance, the project proposed by Dong.

"Dong sent out (a press release) without informing us," Noreco spokesman Jan Petter Stiff said.

"We are not obliged to participate."

Noreco says their license agreement with Dong requires Noreco's consent for projects of this kind. Dong's solution to the damaged rig is "technically immature," it said.

The Norwegian firm said it has an alternative solution for the rig and will be talking to Dong about the matter.

Noreco and Dong each have a 50% ownership of the rig in the Siri license area of the North Sea, with Dong as the operator. Oil production was halted there in August 2009 after cracks were discovered in part of the sub-sea structure. Production resumed in January 2010 after temporary safety measures were put in place.

Dong said in a statement earlier Wednesday that it would make full and permanent repairs to the platform and estimated the costs at DKK2 billion. The firm said the work should be completed in 2012.

An Oslo-based analyst noted Noreco is short of cash after posting a NOK295 million ($54 million) net loss for the first quarter. As its share price plummeted, the company was forced to reassure markets last week that it has enough working cash to keep afloat.

"There is a large risk of an equity issue. They don't have a lot of money," the analyst said.

Dong Energy wasn't immediately able to comment.

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

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US Challenged over Approval of Shell Gulf Drilling Plan

- US Challenged over Approval of Shell Gulf Drilling Plan

Friday, June 10, 2011
Dow Jones Newswires
WASHINGTON (Dow Jones Newswires)
by Ryan Tracy

Environmental groups Thursday sued the Obama administration over its approval of a Shell plan to drill for oil deep under the Gulf of Mexico.

The suit was the opening salvo in what could be a lengthy legal fight over U.S. drilling policy following the resumption of oil and gas exploration after the Deepwater Horizon disaster. It came a day after ExxonMobil announced one of the largest oil discoveries ever in the Gulf, signaling that as oil companies use newly issued federal permits to return to the area after last year's oil spill, they are also likely to face more legal battles.

"Before new deepwater Gulf drilling occurs, the government must make a realistic assessment of the risk to the Gulf's ecosystem, its communities, and the many jobs that depend on tourism, fishing and recreation. It has utterly failed to do so here," said David Guest, an attorney with Earthjustice, which filed the suit on behalf of the Sierra Club, the Gulf Restoration Network and the Florida Wildlife Federation.

The groups alleged that federal regulators violated environmental laws when they approved Shell's plan to drill eight wells about 72 miles off the Louisiana coast last month and asked the Eleventh Circuit of the U.S. Court of Appeals in Atlanta to nix the approval.

The review of Shell's proposal was conducted under a new regulatory regime that was instituted after Deepwater Horizon and designed to improve safety and strengthen environmental protection. It found no evidence that the plan would significantly affect the quality of the "human environment."

The environmental groups say the government underestimated the likelihood of a major oil spill and failed to account for weaknesses in the company's plan to contain or prevent a blowout like the one that occurred in the Gulf last year.

A spokeswoman for the Bureau of Ocean Energy Management, Regulation, and Enforcement, which approved Shell's plan, declined to comment.

Shell spokeswoman Kayla Macke said in an email that Thursday's legal filings "fail to take into account the comprehensive nature of the approved exploration plan," which "reflects numerous improvements to enhance safety and to protect the environment."

"We will fully assist the government in defending this plan," Macke said.

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

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Indonesia Official: BP to Invest $10B More over 10 Years

- Indonesia Official: BP to Invest $10B More over 10 Years

Friday, May 27, 2011
Dow Jones Newswires
by Joko Hariyanto

BP is committed to investing $10 billion more in Indonesia over the next 10 years, Gita Wirjawan, Indonesia's investment agency chief, said Friday.

"They will soon start exploration in Kalimantan and further develop the Tangguh project in Papua," Wirjawan told reporters.

BP Chief Executive Robert Dudley confirmed the commitment after a meeting with Indonesian President Susilo Bambang Yudhoyono.

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

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BP Remains Hopeful over Russian Arctic Deal

- BP Remains Hopeful over Russian Arctic Deal

Tuesday, May 17, 2011
Deutsche Presse-Agentur (dpa)

BP's plans for a major Arctic oil exploration deal with Russian state oil group Rosneft suffered a major setback Tuesday following the failure of a massive share swap transaction agreed in January, the oil company said in London.

Talks to broker a settlement with TNK-BP, the company's existing Russian partner, which had blocked the deal, ended without agreement, meaning that BP missed a midnight deadline set by Rosneft to get the deal back on track.

BP said in a statement that discussions would continue between all parties.

The announcement is the latest twist in a protracted saga that started in January when BP and Rosneft announced a share swap of 8 billion pounds (13 billion dollars) that included exploration rights for the Kara Sea in the Arctic.

The deal was subsequently scuppered after TNK-BP successfully claimed it breached an earlier agreement that TNK-BP had to be included in deals undertaken by BP in Russia.

The latest talks reportedly involved a 18.5 billion-pound buyout of TNK-BP, which is owned by a consortium of Russian billionaires called Alfa Access Renova (AAR).

BP said Tuesday it was still hopeful a deal could be struck, adding it would intensify its efforts to ensure TNK-BP's continued success.

"In recent months, BP has conducted detailed negotiations with AAR and Rosneft to seek a reasonable and businesslike solution that would allow the agreements to proceed to the satisfaction of all parties."

"Such a solution has not been found at this time, although talks will continue," it said in a statement.

Copyright 2011 dpa Deutsche Presse-Agentur GmbH

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India, RIL in Proxy Fight Over KG-D6 Output Decline - Bernstein

India, RIL in Proxy Fight Over KG-D6 Output Decline - Bernstein

Thursday, May 05, 2011
Asia Pulse Pte Ltd

India's Reliance Industries wants a hike in the price of natural gas to resume drilling in the KG-D6 fields, which have seen a sharp drop in output due to drilling of less wells than committed, investment research group Sanford C Bernstein & Co said.

"We believe that RIL doesn't believe it is worth its while to invest additional capital in drilling wells when the price at the beach remains at US$4.20" per million British thermal units, Neil Beveridge, a Hong Kong-based analyst for Bernstein, said in a report on Thursday.

Gas output from the Dhirubhai-1 and 3 fields in the KG-D6 block had steadily risen to 53 million standard cubic meters per day in March last year, but have dropped to below 42 mmscmd now instead of rising to the projected level of 61 mmscmd.

Another 8 mmscmd is produced from the MA field in the same block, taking the total output from KG-D6 to about 50 mmscmd.

The fall in output due to drilling of less wells had earned RIL the ire of the government and the regulator DGH.

While the DGH is pressing RIL to drill more wells outside the main channel that is currently producing, the government is pressuring RIL by directing it to supply gas to priority sectors like fertilizer and power and cut off sales to refineries and petrochemical plants, including its own.

"We believe that this is a proxy fight between the government and RIL," Bernstein Research said.

"Lower production output is primarily a function of the hiatus in development drilling," it said. "While it seems likely that the reservoir is more complex than originally anticipated, performance on a per well basis has not been too dissimilar to the original field development plan.

"Instead, the lower number of development wells drilled (18 versus 22 planned) is primarily the reason for the under-performance," it said.

Bernstein said completion of Phase - I drilling plus initiation of Phase-II drilling, when the total number of wells could reach up to 50, would restore output growth.

"We believe that the natural rate of the decline in production for the KG-D6 wells is around 20 percent annually, or around 5 percent per quarter, not substantially different from similar fields around the world," it said.

"In case RIL doesn't take any more action on the drilling of wells and connecting those to the reservoir and continues operating with 18 wells, we expect the production to reach a level of around 37-38 mmscmd by FY'2013," Bernstein said.

The government has asked the company to drill 11 wells by the fiscal-end to take the total number to 31 as had been planned when RIL won approval for investing $8.8 billion, S.K. Srivastava, the director general of the country's oil regulator, had said earlier this week.

RIL will submit a drilling plan in two weeks, he had said on May 2.

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State Ponders Penalties over Drilling Site Mishap

State Ponders Penalties over Drilling Site Mishap

Monday, April 25, 2011
Pittsburgh Post-Gazette
by Laura Olson

As workers on a Bradford County drilling site continued to prepare the now-stable well for a final protective seal, state environmental officials took a step toward assessing penalties for the accident.

Well-control specialists spent most of the day relieving pressure within the Chesapeake Energy well, a procedure that both company and Department of Environmental Protection officials said was not unusual. Those efforts were suspended late Friday afternoon, as rain began to fall, according to Chesapeake.

Company spokesman Rory Sweeney said they made "slow progress" toward completely plugging the well Friday, noting that no additional wastewater or gas had escaped since those leaks were stemmed Thursday evening.

Procedures to relieve well pressure are "something that is expected at this stage in the process" and raised no immediate concerns, DEP spokesman Dan Spadoni said.

Once the final seal is in place, Chesapeake can begin an investigation of why the well blew out during hydraulic fracturing late Tuesday night. That wellhead malfunction resulted in thousands of gallons of fracking wastewater spewing back to the surface, with some trickling into a tributary to Towanda Creek.

The well was continuing to leak wastewater Wednesday afternoon, when workers were able to put the briny fracking fluid in containers on the well pad. Neither the DEP nor company officials have estimated how much wastewater entered the tributary, though initial Chesapeake testing showed "minimal, if any" impacts on the waterway.

Incident reports posted on the Pennsylvania Emergency Management Agency's website stated that "approximately 30,000 gallons of fresh water leaked out of a gas well and into a secondary containment area in Leroy Township." A report issued Thursday also states that there are "no life safety or environmental concerns" from the accident.

A PEMA spokesman did not return a request Friday for additional information.

Chesapeake said it would account for the spilled wastewater as the investigation gets under way. "We're not done here when the well is finally sealed," Mr. Sweeney said.

For DEP officials, who have been involved in the accident response, the next investigatory steps are under way. The agency issued a notice of violation to Chesapeake on Friday, Mr. Spadoni said.

In the notice, the DEP asked the company to submit an analysis of what caused the equipment failure. The notice also stated that Chesapeake was expected to "be in a stand-down mode on hydraulic fracturing" as officials review what happened.

The company said it halted all post-drilling activities, which include hydraulic fracturing, "in order to conduct thorough inspections of wellheads used in completion operations throughout the Marcellus Shale."

But environmental advocates from PennFuture called on DEP Acting Secretary Michael Krancer to shut down all Chesapeake sites until the agency conducts its review.

Two Bradford County lawyers representing local residents who say they have contamination-related ailments made a similar plea Friday.

Mr. Spadoni said the DEP would "evaluate the information that is provided to us by Chesapeake" and decide what additional steps may be necessary.

Technip Beams over Contract Win for Sunrise Energy Proj.

Technip Beams over Contract Win for Sunrise Energy Proj.

Friday, April 22, 2011
Technip

Technip's wholly-owned subsidiary, KTI Corporation, was awarded a purchase order by Snamprogetti Canada to design and supply ten Once Through Steam Generation (OTSG) units for the first phase of the Sunrise Energy Project. The OTSG units are an integral part of the Steam-Assisted Gravity Drainage (SAGD) process being applied at Sunrise for the extraction of bitumen.

Sunrise is a SAGD Oil Sands Project being constructed approximately 60 kilometers northeast of Fort McMurray, Alberta, Canada and operated by Husky Energy. Upon completion of Phase 1 of the project, the facility is expected to produce approximately 60,000 barrels per day of bitumen.

Snamprogetti Canada is the prime contractor for engineering, procurement and construction of the Central Plant Facility for Sunrise Phase 1 where the OTSGs will be used.

KTI's engineering center in Houston, Texas will execute the OTSG contract. Final fabrication and assembly of the OTSGs will occur in Tofield, Alberta. Final delivery and completion of these units is scheduled for the second half of 2012.