Anglo-Turkish Genel Energy Increasing Presence in Northern Iraq

- Anglo-Turkish Genel Energy Increasing Presence in Northern Iraq

Tuesday, September 13, 2011
OilPrice.com
by Charles Kennedy

Anglo-Turkish Genel Energy, soon to be led by former BP CEO Tony Hayward, is seeking to expand its presence in northern Iraq.

Genel Energy, owned by Turkish businessman Mehmet Emin Karamehmet, is seeking a major role in the development of the vast reserves of oil in the Kurdish autonomous region of northern Iraq.

Speaking to Turkey's Hurriyet newspaper Hayward said, "The only approval we need is from the Kurdistan Regional Government, and we expect that approval to come before the end of September. All of the indications in Kurdistan show that things are only going to get better. I think this is a good time to invest in the region."

Hayward also expressed his belief that a "pragmatic realism" now dominated relations between the Kurdish regional government and Baghdad, adding that eventually, the Kurdish region will have "a significant say" in what is going to be finally approved in Iraq's expected hydrocarbons law noting, "This means (a company) can invest. "(The two governments) have agreed to revenue-sharing mechanisms. Payments are being received and I think all indicators show that things are only going to get better. There will be some bumps in the road, but the train and its direction are clear."

(Charles Kennedy is Deputy Editor of OilPrice.com. The original article appears here.)

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GTI Boosts Marcellus Presence with Pittsburgh Office

- GTI Boosts Marcellus Presence with Pittsburgh Office

Tuesday, August 09, 2011
Gas Technology Institute

Gas Technology Institute (GTI) on Wednesday announced the opening of the organization's newest office in Pittsburgh, PA. Headquartered in the Chicago suburb of Des Plaines, IL, GTI has field offices across the country, and the new office in Pittsburgh represents GTI's local commitment to the natural gas industry in the Marcellus Shale fairway and the surrounding region.

GTI's continued growth in this region will be achieved by generating effective technology development and services based on customer needs, and through partnering to develop technology, create collaborative opportunities and achieve strategic business results. The efforts led by the Pittsburgh Office will advance the development of innovative solutions to the region's most pressing challenges.

"We're excited about establishing a stronger presence in this important region," says David Carroll, President and CEO of GTI. "We are committed to the future of natural gas and see tremendous opportunity for growth in the shale market where GTI has performed analysis since the 1980s. Our new office location will help us provide the continued high-level customer service and technology developments that will help meet today's complex energy and environmental challenges."

The Director of the Pittsburgh office is Patrick Findle, who has worked for GTI earlier in his career and has returned to help establish a strategic beachhead for business growth. He brings many years of technology business development in the natural gas industry that will help GTI build industry relationships and facilitate new business.

Notes Findle, "Along with growing global demand for natural gas, there is a correlating demand for new technologies to enable and ensure its responsible production, distribution, and use. The opening of the Pittsburgh Office is evidence of GTI's commitment to become a valued resource and partner to the natural gas industry as it transforms this region."

The GTI PA office can be found at 800 Old Pond Road, Suite 706 B, Bridgeville, PA 15017; 412-319-7249.

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Seadrill Strengthens Mid East Presence with KJO Deal

- Seadrill Strengthens Mid East Presence with KJO Deal

Tuesday, August 09, 2011
Seadrill Ltd.

Seadrill has been awarded two new contracts by KJO (AL-Khafji Joint Operations) in the joint development zone between the Kingdom of Saudi Arabia and Kuwait for the jackup rigs West Triton and Offshore Resolute. The assignments which will commence in direct continuation of their current contracts in Southeast Asia are each for a firm period of 3 years plus the time required to mobilize to the Arabian Gulf. Each contract also includes an option for KJO to extend the term for a further 1 year.

Alf C. Thorkildsen, Chief Executive Officer in Seadrill Management AS said, "These new contracts will strengthen the relationship with KJO, one of the key customers in the Arabian Gulf. In addition, relocating two rigs for term work and at attractive market rates serves our strategic desire to increase our long term presence in this active oil and gas region."

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KCA Deutag Furthers Presence in S. East Asia with GTB Acquisition

- KCA Deutag Furthers Presence in S. East Asia with GTB Acquisition

Friday, August 05, 2011
KCA Deutag

KCA Deutag announced it has acquired Global Tender Barges Pte Ltd (GTB) by increasing its shareholding from 10 to 100%.

GTB based in Singapore owns three self-erect tender barges, the Global Emerald, Global Jade and Global Sapphire, which KCA Deutag has operated on behalf of GTB, since early 2008, under a management services agreement providing drilling operations, maintenance, procurement and other services connected with the offshore operations.

The transaction will contribute to KCA Deutag approximately US $115 million of annual revenues with substantial EBITDA and will further strengthen the financial profile of KCA Deutag.

The Global Emerald is currently on contract to Brunei Shell Petroleum until 1Q 2012 and the Global Sapphire to Petronas, Malaysia until 2014. The Global Jade has recently demobilized from a long term contract with Total in Indonesia and is bid on a number of long term contracts. The company is finalizing negotiations with one client and expects to be in a position to announce further contract awards in the coming few weeks.

The acquisition increases the scale of KCA Deutag's mobile offshore drilling units (MODU's) division, supplementing its three owned jackups and its other management contract on Triumph Drilling's self-erect tender rig, the Searex IX. It further strengthens KCA DEUTAG's presence in the strategic South East Asia and Mexican markets.

Holger Temmen, KCA Deutag's Chief Executive Officer commented, "This deal is a natural evolution for KCA Deutag, to acquire the remaining 90% equity, in assets that we have operated successfully on behalf of GTB for the last three and a half years. The three rigs have an excellent order backlog and bidding activity in the barge sector remains high, with a number of exciting long term opportunities in South East Asia and West Africa that may also justify investing in newbuild units. We are particularly pleased to be strengthening our relationship with three strategically important clients with whom we already have existing operations.

"South East Asia is attracting very large investments from our major oil company clients and provides exciting growth opportunities for companies in the oilfield services sector. KCA Deutag wish to substantially grow its presence in the region, both in the offshore, land drilling and engineering sectors. In addition to our barge activities, we currently operate our land rig T201 for Brunei Shell Petroleum and are currently executing a Front End Engineering Study for the drilling facilities on Woodside's Browse Field development offshore Western Australia for which we also hope to compete for the long term operations and maintenance contract."

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ConocoPhillips Expands Presence in Niobrara Play

- ConocoPhillips Expands Presence in Niobrara Play

Friday, July 29, 2011
ConocoPhillips

ConocoPhillips has entered into an agreement to acquire up to 46,000 net acres of leasehold from Lario Oil & Gas Company in the Colorado counties of Arapahoe, Adams, Elbert and Douglas. This agreement represents a significant investment by ConocoPhillips in this area south and east of the greater Denver metroplex.

"ConocoPhillips is pleased to have this opportunity to participate in the emerging Niobrara exploration and development play," said Larry Archibald, senior vice president of Exploration and Business Development at ConocoPhillips. "Building on the strong relationships developed by Lario, we look forward to working with all local stakeholders as a first step in demonstrating our commitment to act as a steward of this region's natural resources."

ConocoPhillips will become operator of the acquired leases and will begin exploration efforts as soon as possible with the acquisition of a 3-D seismic survey and drilling of test wells. The company has a long track record of safe and environmentally prudent development of unconventional plays in North America and will leverage the knowledge and expertise it has gained in plays such as the San Juan Basin, Bakken, Barnett and Eagle Ford.

"Lario Oil & Gas Company is pleased to make this significant transaction with an industry leader such as ConocoPhillips," said Mike O'Shaughnessy, President/CEO of Lario. "As demonstrated by ConocoPhillips' safe and successful history of developing unconventional plays, the project will be operated with the greatest regard for the local residents and environment, and for the benefit of all parties concerned."

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CNOOC Extends Oil Sands Presence with $2.1B Deal

- CNOOC Extends Oil Sands Presence with $2.1B Deal

Wednesday, July 20, 2011
CNOOC Ltd.

CNOOC has entered into an Arrangement Agreement to acquire OPTI Canada Inc ("OPTI"). The aggregate value of the consideration of the transaction is approximately US $2.1 billion, which includes aggregate cash consideration of US $1.25 billion payable to the holders of the OPTI shares (US $34 million) and the Second Lien Noteholders (US $1.216 billion). In addition, due to a change in control of OPTI as a result of the transaction, OPTI will be required to offer to repay the holders of its outstanding First Lien Notes (US $825 million in principal amount) pursuant to the indentures governing the First Lien Notes. The transaction will be effected by way of a plan of arrangement through concurrent proceedings under the Companies' Creditors Arrangement Act (Canada) and the Canada Business Corporations Act.

The proposed transaction must be approved by the Second Lien Noteholders at a special meeting that is expected to be held in September,2011. Noteholders representing approximately 55.2% of the principal amount of the Second Lien Notes have executed support agreements pursuant to which, among other things, they have agreed to vote in favour of the transaction.

The proposed transaction is also subject to certain terms and conditions, including, among other things, applicable government and regulatory approvals by the relevant authorities in Canada and the People's Republic of China, and Canadian court approval. The transaction is expected to be completed in the fourth quarter of 2011. Upon completion of the transaction, OPTI will become an indirect wholly-owned subsidiary of the Company, and all of the Second Lien Notes will be transferred or assigned, directly or indirectly, to a subsidiary of the Company. All existing options, warrants and other rights to purchase OPTI shares will be cancelled.

The principal asset of OPTI consists of a 35% working interest in the Long Lake and three other project areas located in the Athabasca region of northeastern Alberta. Long Lake project includes steam assisted gravity drainage ("SAGD") Operation and an Upgrader. Nexen Inc. ("Nexen"), a Canadian-based global energy company, holds the remaining 65% and is the sole operator. The Long Lake SAGD Operation is expected to have through-put rates of approximately 72,000 barrels per day of bitumen at full production. It is anticipated that the Long Lake Upgrader will ultimately produce approximately 58,500 barrels per day of products, primarily Premium Sweet Crude (PSCTM).

As disclosed in OPTI's disclosure documents filed with securities regulatory authorities in Canada, OPTI's working interest share, before royalties, of raw bitumen reserves and resources on its oil sands leases is estimated to be 195 million barrels of proved reserves, 534 million barrels of probable reserves, 1,100 million barrels of contingent resources and 335 million barrels of prospective resources. These reserves and resources are estimated to be sufficient to support approximately 430,000 barrels per day (150,000 barrels per day net to OPTI) of bitumen production.

Mr. Yang Hua, Chief Executive Officer of the Company stated, "The transaction strengthens our Canadian presence in the oil sands business. We believe that upside potential of the assets will facilitate local energy supply and our production growth in the long term.

"We are pleased to expand our presence in the oil sands business after our successful investment in MEG. We believe that the upside potential of the acquired assets will benefit the shareholders of CNOOC Limited."

Mr. Li Fanrong, President of the Company said, "We look forward to working with our new partner Nexen, to optimize value from the Long Lake Project and the three other jointly owned oil sands leases."

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Enserveco Expands Niobara Presence

Enserveco Expands Niobara Presence

Tuesday, May 03, 2011
ENSERVCO

ENSERVCO Corp., a provider of well-site services to the domestic onshore oil and gas industry, on Tuesoday announced it is expanding its presence in the active Niobrara Shale region of the Central United States, and has executed a lease on a new operations facility in Cheyenne, Wyo.

The Cheyenne site is being established to address growing demand in the northern portion of the Niobrara, where several current customers are accelerating horizontal drilling programs and making significant investments in new leases, infrastructure and personnel.

"This expansion parallels the geographic growth of our customers," said Mike Herman, chairman and CEO. "Between our facilities in Greeley, Colo. and our new Cheyenne site, we have established a major presence in what is becoming one of the nation's most active onshore exploration and production regions."

The Cheyenne facility will initially serve more than a dozen customers, including Chesapeake, Anadarko, Whiting and Exxon Mobil. The 5,400 sq. ft. facility, which is expected to be operational by Aug. 1, will sit on roughly four acres, and will stage a fleet of service vehicles that will include hot oiling, frac heating, acidizing and water hauling trucks, as well as well-site construction equipment.

Herman said, "Our growing workload in this region is significantly extending our busy season, as fluid heating needs in the northern Niobrara typically cover 10 months of the year. This is more than double the length of our heating season in the Marcellus Shale."

Through its two operating subsidiaries, Heat Waves Hot Oil Service and Dillco Fluid Service, ENSERVCO has emerged as one of the energy service industry's leading providers of hot oiling, acidizing, frac heating and fluid management services. The Company owns and operates a fleet of more than 200 specialized trucks, trailers, frac tanks and related well-site equipment. ENSERVCO operates in Colorado, Kansas, New Mexico, Oklahoma, Pennsylvania, Texas, Utah and Wyoming. ENSERVCO became a public company in July 2010 when it merged with Aspen Exploration Corporation, which is now doing business under the trade name ENSERVCO Corp.

American Standard Extends Presence in Bakken/Three Forks

American Standard Extends Presence in Bakken/Three Forks

Tuesday, April 26, 2011
American Standard Energy Corp.

American Standard has entered into a definitive agreement to acquire an additional 11,775 net leasehold acres in the Bakken/Three Forks. The acquired leasehold acreage is located within seven (7) counties widely considered to be the 'fairway' for the Bakken and Three Forks formations; and particularly increases ASEN's holdings in Mountrail, Stark and Williams Counties. This portfolio of leases includes a large number of working interest positions in the 5-15% range, multiple 20% working interests and two at 100%.

Scott Feldhacker, CEO of American Standard Energy Corp. commented, "This is another major acquisition for our company that increases our Bakken/Three Forks holdings to over 31,000 acres and further advances our strategic profile in the region. This major addition to our lease portfolio increases our current revenue and reserve outlooks and also has potential to increase our well count and production rates for 2012. As a result of this acquisition, ASEN will have six controlling interest positions in the Bakken/Three Forks formations available for development or exchange.

This acquisition works to establish a heightened awareness of ASEN as an effective consolidator of lease acreage around, under and within the development path of key operators such as Brigham, Continental, EOG, Whiting and Petro-Hunt; and further qualifies ASEN as a preferred partner for these quality operators."

Lundin Expands Presence in Barents Sea

Lundin Expands Presence in Barents Sea

Friday, April 15, 2011
Lundin Petroleum AB

Lundin has been awarded a new exploration license interest in the 21st Norwegian Licensing Round. The awarded license, PL609 is located in the Barents Sea.

Lundin Norway will be the operator of PL609 with 40 percent interest. The partnership comprises RWE Dea Norge AS and Idemitsu Petroleum Norge AS, each with 30 percent interest.

PL609 covers an area of 1,180 km2, and is located immediately east of license PL532 where Statoil recently made a significant oil discovery on the Skrugard prospect (7220/8-1).

Lundin Norway AS has a strong acreage position in the area with four operated licenses and one partner-operated license in addition to the new award. Lundin Norway will drill a well on the Skalle prospect, well 7120/3-2, scheduled to be spudded in the second quarter 2011.