DONG Energy to Take Stake in Siri Field

- DONG Energy to Take Stake in Siri Field

Monday, July 25, 2011
DONG Energy

DONG Energy, the Operator of the Siri field in the Danish sector of the North Sea, and its license partner Noreco have settled on an agreement for DONG Energy to acquire Noreco's 50 percent interest in the Siri field with an acquisition cost of approximately 70 DKK million (13 million USD) with effect from July 1st 2011. DONG Energy will be sole owner of the Siri field. The agreement is subject to customary regulatory approvals, and all conditions of the agreement are expected to be finally resolved before the year-end.

The agreement means that DONG Energy in agreement with Noreco can continue and fully implement the repair work on the cracks that were revealed in parts of the platform's subsea structure in 2009, so the platform can continue to be operated safely and responsibly.

The price reflects the fact that DONG Energy will take over revenues and expenses related to Noreco's share of the Siri license - including the repair costs of the subsea structure. As previously announced, the total estimated repair costs are approximately DKK 2 billion.

The agreement will have effect from July 1st 2011, but Noreco has the right to sell its interest or a part of it to a third party before August 30th 2011, provided that the buyer takes over all of Noreco's rights and obligations, including being required to meet its share's cost of the repair work.

"We are pleased to have a constructive agreement in place so we can carry out the repair work, which we regard as necessary in order to continue safe production from the Siri field and its associated satellite fields for many years to come," said Søren Gath Hansen, Executive Vice President of DONG Energy.

The agreement to acquire Noreco's interest in the Siri field does not comprise the satellite fields outside the Siri license. In 2010, the Siri field produced 1.8 million barrels of oil, including the Stine field, which is a satellite of Siri within the Siri license.

The costs for the permanent solution will be operating costs for DONG Energy and will, as previously announced, be spread over 2011 and 2012. The increased operating costs are expected in 2011 to be only partially offset by an increased share of production from the Siri field.

However, the information provided in this announcement does not change DONG Energy's previous financial guidance for the 2011 financial year or the expected investment level announced.

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New World O&G to Take Oil Concessions in Denmark

- New World O&G to Take Oil Concessions in Denmark

Monday, July 04, 2011
New World O&G plc

New World O&G has signed a non-binding letter of intent with Danica Jutland ApS, granting the Company a 65-day exclusivity period in which to undertake due diligence on two oil concessions totaling 4,107 sq km, located in the productive Jutland on-shore area in South Western Denmark ('the LOI'). Any potential investment by the Company would be in accordance with its investing policy as set out in its Admission Document.

Overview

• The LOI provides a 65-day exclusivity period to conduct due diligence on two concessions - License No. 1/09 and License No. 2/09, located on-shore in Southern Denmark ('the Licenses').
• The Company has engaged RPS Energy to undertake a Competent Person's Report in the form of a letter of opinion ('CPR') to assist New World in determining the prospectivity of the Licenses.
• Upon completion of the CPR and subject to the satisfactory completion of due diligence, it is intended that definitive transaction documents will be agreed in the form of a Farm-out and Operating Agreement with the Company being named as Operator, followed by New World being named on the Licenses for both concessions.
• The LOI contemplates (subject to due diligence including the CPR being satisfactory) a staged investment in 2D seismic, initially of US $2.5 million, followed by the right to acquire further interests on the basis of an agreed drilling program if the Company then decides to take the opportunity further. At completion of the initial stage, a 12.5% working interest in each of the Licenses would be transferred to the Company. Upon full completion of the earn-in work program, the Company has the option to obtain up to an 80% working interest in the project.

New World CEO William Kelleher said, "We are continuing to deliver on our previously stated investing policy, by bringing quality projects to the table. This region in Southern Denmark is relatively under-explored but is located at the center of the Southern Permian Basin with significant production in the immediate region. Our policy envisaged Europe to be part of the longer term strategy, however a good investment opportunity has arisen now, and the Board believes that the time is right to take advantage of the region's significant opportunities, with stable governments, and generally favorable investment regimes."

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Denbury to Take Remaining Stake, Steer Riley Ridge Project

- Denbury to Take Remaining Stake, Steer Riley Ridge Project

Tuesday, June 28, 2011
Denbury Resources Inc.

Denbury has entered into an agreement to acquire the 57.5% working interest it does not already own in the Riley Ridge Federal Unit located in southwestern Wyoming, and an approximate 33% working interest in an additional +/-28,000 acres of mineral leases adjoining the Riley Ridge Unit. The total purchase price is estimated at $191 million assuming full payout of purchase price contingencies, plus capital incurred between April 1, 2011, the effective date of the purchase, and closing. The acquisition is expected to close in late July and is subject to satisfactory completion of customary due diligence review.

Transaction Highlights

• The acquisition includes a 57.5% working interest in the 9,700+ acre Riley Ridge Federal Unit and an approximate 33% working interest in an additional +/- 28,000 acres of mineral leases adjoining the Riley Ridge Unit. Denbury will become the operator of both projects. The Company currently estimates that the Riley Ridge Federal Unit contains proved reserves of 250 billion cubic feet (Bcf) of natural gas, 8.9 Bcf of helium (He) and approximately 1.4 trillion cubic feet (Tcf) of carbon dioxide (CO2), net to the interest to be acquired. The additional +/- 28,000 acres is estimated to contain additional probable reserves of 250 to 300 Bcf of natural gas, 9.5 to 11.5 Bcf of helium and 1.0 to 1.2 Tcf of CO2, net to the interest to be acquired.
• Total proved plus probable CO2 reserves in the Riley Ridge Unit and adjoining acreage in which the Company has an interest is estimated at approximately 6.1 Tcf (100% working interest), of which the Company's interest is estimated at approximately 4.5 Tcf after completion of this acquisition.
• The Riley Ridge Unit and the adjoining acreage is located in the prolific LaBarge Field, from which natural gas, helium and CO2 are currently being produced and sold, which is also the same reservoir from which the Riley Ridge Unit will produce.
• First production of natural gas and helium is expected to occur during the 4th quarter of 2011.
• The development costs associated with the incremental interest in the Riley Ridge Unit are expected to add approximately $50 million to the Company's 2011 capital spending, depending upon how much capital is spent between the April 1 effective date and closing.
• Current operations include the completion of the producing wells and completion of the construction of the natural gas and helium processing facilities that will separate the natural gas and helium from the full well stream, which consists of approximately 65% CO2, 19% natural gas, 5% hydrogen sulfide (H2S), 0.6% He, and the remainder other gases. Initially the operational plans include the re-injection of the CO2 and H2S into the producing formation until a planned CO2 pipeline can be built to the field.
• This acquisition results in Denbury becoming the operator of the project and owning 100% of the working interest in the Riley Ridge Unit. In addition to owning and operating the Riley Ridge Unit, the Company is also acquiring operations and working interests in an adjoining 28,000 acres of which the Company previously only acquired CO2 rights. The Company has initiated the engineering and design of the CO2 capture facility for the Riley Ridge Unit, which is estimated to initially capture up to 130 MMcf/d of CO2. In addition to designing the CO2 capture facility for Riley Ridge the Company expects to begin preparing the development plan for the adjoining acreage, which when fully developed is expected to add an additional 450 to 500 MMcf/d of CO2 (100% working interest), or an estimated total CO2 production from this asset of 580 to 630 MMcf/d (100% working interest). The development plan to achieve these rates may take up to 10 years.
• The purchase price of $191 million consist of a $176 million payment at closing and a $15 million contingent payment to be paid at the time the gas processing facility is operational and meeting specific performance conditions. The existing operator is committed to maintaining and committing the existing development and construction teams to the project until such time as the specific performance conditions are met in order to provide continuity through start-up of the gas processing facility.
• Over the past 15 months, Denbury has been actively securing new sources of CO2 volumes and, with its new acquisition of Riley Ridge and the adjoining acreage, currently believes it has more CO2 than it needs to develop its existing CO2 enhanced oil recovery assets in the Rocky Mountains. These estimated CO2 volumes consist of the following:
  • Riley Ridge ultimate planned capacity - 580 to 630 MMcf/d (Own and Operate)
  • Lost Cabin – 50 MMcf/d (under contract from ConocoPhillips)
  • LaBarge – 50 MMcf/d (under contract from ExxonMobil)
  • Proposed DKRW facility - 200 MMcf/d (under contract from DKRW)
• The Company plans to fund the acquisition through borrowings on its existing bank credit facility.

Phil Rykhoek, CEO of Denbury, commented, "This acquisition combined with our contracts for CO2 from third parties, provides us with the necessary volumes of CO2 to develop our current Rocky Mountain CO2 EOR projects, plus additional volumes which can be used for future projects. With this acquisition, we will control this strategic asset, our 'Jackson Dome' of the Rockies. In one sense, Riley Ridge is even better than Jackson Dome as the projected methane and helium sales should pay for its development and the cost to extract and compress the CO2. We are about to begin construction on our first CO2 pipeline in this area, the Greencore line from Lost Cabin to Bell Creek. We should have our first tertiary oil production from this region in the next couple of years, most likely first from the recently acquired Grieve Field joint venture, followed soon thereafter by Bell Creek. We have come a long way in the Rockies in the last fifteen months and look forward to continued success in this region."

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Havila Shipping to Take Ownership of 5 Platform Supply Vessels

- Havila Shipping to Take Ownership of 5 Platform Supply Vessels

Tuesday, June 28, 2011
Havila Shipping ASA

Havila Shipping has entered into an agreement with its controlling shareholder Havila AS and Havila AS' wholly-owned subsidiary Havvåg AS for the purpose of transferring Havila AS' indirect ownership interests in the five platform supply vessels MV Havila Fortune, MV Havila Aurora, MV Havila Borg, MV Havila Commander and MV Havila Crusader (the "PSVs") to the Company (the "Transaction").

The transfer of the ownership interest in the PSVs to the Company will be carried out through a transfer of the shares in subsidiaries of Havila AS and interests in Havila PSV DIS as contribution in kind against the issue of shares in the Company.

Havila AS' ownership interests in the PSVs are primarily held by private limited companies, wholly- or partly-owned subsidiaries of Havila AS, which in turn hold ownership interests in the partnerships owning the PSVs, provided, however, that Havila AS holds some interests directly in Havila PSV DIS (the "SPVs").

Following completion of the Agreement, the Company will, indirectly, be the owner of 40% in MV Havila Crusader and MV Havila Commander, 49% in MV Havila Borg and 50% in MV Havila Aurora and MV Havila Fortune. MV Havila Aurora, MV Havila Borg and MV Havila Fortune are currently managed by the Company (commercial and technical management), while MV Havila Commander and MV Havila Crusader are on 8-year bareboat charters to the Company. All PSVs are currently operational and on contracts of variable lengths, with remaining duration between two months and five years, offering a balanced market exposure.

The acquisition of a controlling stake in the two PSVs currently leased, MV Havila Commander and MV Havila Crusader is expected to improve earnings significantly through a reduction of net leasing costs, which is currently approximately NOK 100 million annually, and improving the overall financial structure of the Company through replacing leasing with traditional financing.

The acquisition of three additional PSVs, MV Havila Aurora, MV Havila Borg and MV Havila Fortune, is also considered favourable as the Company already operates all of these PSVs, with solid operating performance. These PSVs have remaining contract durations of approximately two months, one year and five years (plus options), respectively, providing Havila Shipping with growth at a favourable
entry point for expansion in the supply market, and at the same providing balanced contract mix.

The financing of all PSVs will be continued under new ownership.

As part of the transactions, the Company will cancel the Total Return Swap on approximately 1.05 million shares. The reason for this, is that the Company having such financial exposure to its own share price is outside the key business scope of the Company.

The SPVs and the PSVs

The Company's acquisition of ownership interests in the PSVs will be carried out through the transfer of Havila AS' shares and interests in the following companies:

• Havship I AS - MV Havila Fortune
  • The Company will acquire 100% of the shares of Havship I AS ("Havship I"), which in turn holds 50% of the outstanding ownership interests in P/R Havship DA, a Norwegian partnership with apportioned liability and business registration number 993 442 003 ("PR Havship I").
  • PR Havship I owns the PSV MV Havila Fortune. MV Havila Fortune is a PSV MT6009 MkII (3,205 dwt), which was built in 2008. It is on contract with Maritime Logistic Services AS until August 2011, and has an option for 3 further wells.
  • The board of directors of Havship I comprises Per Sævik as chairman and sole board member and Njål Sævik as deputy board member. Per Sævik is also the general manager. There are no employees in Havship I.
• Havila Aurora AS - MV Havila Aurora
  • The Company will acquire 100% of the shares of Havila Aurora AS ("Havila Aurora"), which in turn holds 50% of the outstanding ownership interests in P/R Havship II DA, a Norwegian partnership with apportioned liability and business registration number 894 084 782 ("PR Havship II").
  • PR Havship II owns the PSV MV Havila Aurora. MV Havila Aurora is a PSV MT6009 MkII (3,205 dwt), which was built in 2009. It is on contract with Total until March 2016, with an additional option for 2 years.
  • The board of directors of Havila Aurora consists of Per Sævik (chairman), Njål Sævik, Hege Sævik Rabben and Vegard Sævik. Per Sævik is also the general manager. There are no employees in Havila Aurora.
• Havila Borg AS - MV Havila Borg
  • The Company will acquire 100% of the shares of Havila Borg AS ("Havila Borg"), which in turn holds 49% of the outstanding ownership interest in P/R Havship III DA, a Norwegian partnership with apportioned liability and business registration number 994 760 890 ("PR Havship III").
  • PR Havship III owns the PSV MV Havila Borg. MV Havila Borg is a PSV Havyard 832 (4,000 dwt), which was built in 2009. It is on contract with Shell until July 2012 with a 1 year option.
  • The board of directors of Havila Borg consists of Per Sævik (chairman), Njål Sævik and Kjell Rabben. Njål Sævik is also the general manager. There are no employees in Havila Borg.
• Havila PSV AS and Havila PSV DIS - MV Havila Commander and MV Havila Crusader.
  • The Company will acquire 37%, and indirectly (through its wholly owned subsidiary Havila PSV AS ("HPSV AS")) an additional 3%, of the outstanding ownership interest in Havila PSV DIS, a Norwegian silent partnership ("HPSV").
  • HPSV controls the PSVs MV Havila Commander and MV Havila Crusader. MV Havila Commander and MV Havila Crusader are both PSV VS485 (4,900 dwt), which were built in 2010. MV Havila Commander is on contract with ConocoPhilips until mid July 2011, then three months with Maersk Oil & Gas and MV Havila Crusader is on contract with Talisman until November 2011 with two six-month options.
  • The boards of directors of HPSV AS and HPSV consist of Svein Sandvik (chairman), Njål Sævik and Richard Jansen. There are no employees in any of these companies.

PR Havship I, PR Havship II, PR Havship III and HPSV are jointly referred to as the "Partnerships".

Further, the Company intends to increase its ownership in the PSVs to 100% of MV Havila Fortune, Havila Aurora and Havila Borg and 74% of the ownership interests in Havila PSV DIS (MV Havila Commander and MV Havila Crusader) through an acquisition from the third party owners of Partnerships against cash consideration, provided, however, that Mavi VX shall transfer its shares in the partnerships owning MV Havila Aurora, MV Havila Borg and MV Havila Fortune to Havila Shipping as contribution-in-kind against shares in Havila Shipping. The calculation in these acquisitions shall be calculated on the same basis as the consideration in this Transaction.

[No agreements have been, or will be, entered into in connection with the Agreement for the benefit of the parties' board members or management.]

The consideration and settlement

The consideration in the Transaction comprises the aggregate value of the shares transferred to Havila Shipping, which for each of the SPVs is calculated on the basis of (i) the market value of the PSVs as of December 31, 2010 (based on shipbroker valuations as of March 31, 2011, and for MV Havila Commander and MV Havila Crusader also reflecting the Company's purchase options starting in
2012), (ii) value adjusted equity related to the other assets and liabilities in the relevant Partnerships as of December 31, 2010, and (iii) the net profit excluding depreciations of the relevant Partnership in the period from January 1, 2011 to July 19, 2011. The purchase price will comprise the total value of each Partnership adjusted for the percentage of ownership interests not transferred to Havila Shipping.

Based on the above and an agreed total value for the 5 PSVs in the amount of NOK 1,503 million on a 100% basis, the aggregate value of the shares transferred to Havila Shipping is expected to amount to NOK 149.7 million, which is subject to adjustments for the actual net profit in the period up to July 19, 2011.

The subscription price for each share issued to Havila AS against contribution in kind will be equal to the subscription price in the Company's contemplated private placement announced on June 27, 2011. The indicative price range in the private placement is between NOK 52.50 and NOK 57.50, and the final subscription price will be determined by the Board of Directors after completion of the book-building period, expected to end on July 1, 2011.

The number of shares to be issued to Havila AS as consideration for the contribution-in-kind with an aggregate value of NOK 149.7 million and a subscription price at the mid-point of the price range (i.e. NOK 55), is 2,721,203 shares.

The shares will be issued by the Board of Directors pursuant to its authorization to increase the share capital of the Company granted by the general meeting held on April 28, 2011.

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New Fracturing Disclosure Rules May Take Awhile

- New Fracturing Disclosure Rules May Take Awhile

Wednesday, June 01, 2011
Houston Chronicle
by Tom Fowler

Texas lawmakers have passed a bill requiring disclosure of most of the chemicals used in hydraulic fracturing, a natural gas and oil production technique that has been a source of contention in some communities over the past year.

A final version of the bill sent to Gov. Rick Perry on Tuesday requires oil and gas well owners to file online forms detailing the chemicals that are mixed with sand and water and then pumped into wells at high pressure to break apart dense shale formations.

Opponents say the materials, often called frac fluids, can contaminate ground water supplies -- a worry the industry says is unfounded.

It may be up to two years before the law takes full effect, as the Texas Railroad Commission has to write the rules and submit them to public comment.

Commission Chairman Elizabeth Ames Jones said Tuesday the agency will begin crafting the rules soon, but the law gives it until July 1, 2013, to approve them. The Railroad Commission is the state's chief oil and natural gas regulator.

"A commonsense frac fluid disclosure policy will balance the Railroad Commission's dual mission to prevent the waste of Texas' energy resources, and to protect the environment and the public's health and safety," Jones said.

Under existing rules, companies must list just some of the chemicals used in fracturing on Material Safety Data Sheets, documents kept on worksites to help officials respond to emergencies such as spills or accidental exposures to hazardous chemicals. Some chemicals are exempt if the companies claim they are trade secrets, while others simply aren't covered by the requirements.

The industry voluntarily has begun sharing fracturing fluid information from the data sheets for specific wells through a website, FracFocus.org, in response to public concerns about hazardous chemicals.

The new Texas law makes that reporting mandatory for all wells drilled in Texas, and will require listing of chemicals not currently required on the data sheets.

The new law still exempts chemicals deemed trade secrets, but the landowner where the well is drilled, an adjacent landowner or a state agency can appeal the exemption.

The bill, introduced by Rep. Jim Keffer, R-Granbury, is the result of negotiations among industry, environmental groups and lawmakers.

A version of the bill discussed last week would have made it more difficult for the public to access some of the information by requiring reports be filed just with the Railroad Commission. But an amendment introduced by Rep. Lon Burnam, D-Fort Worth, required disclosure on public websites.

The Texas Oil and Gas Association praised the bills.

"As a result of the state's leadership, Texas will become a game changer when it comes to debunking myths or misconceptions about hydraulic fracturing," said Debbie Hastings, vice president of environmental affairs for the group. "The transparency and accessibility achieved by this legislation will reinforce how and why hydraulic fracturing has been safely used for more than 60 years."

The Environmental Defense Fund gave the bill mixed reviews, saying it's a milestone in some ways but has shortcomings that should discourage other states or the federal government from adopting it without revision.

"It represents a major shift in the debate because for the first time industry and Republican lawmakers acknowledge that disclosure should be mandatory and that it should address all fracturing chemicals that may be harmful to public health and the environment," said Matt Watson, senior energy policy manager for EDF. "Texas and the nation will be better off for it."

But it leaves the decision on disclosure exemptions with the Texas Railroad Commission, which Watson said tends to favor business interests.

The long timetable for new rules is also a concern, Watson said.

Ramona Nye, a spokeswoman for the Railroad Commission, said the commission "has discretion regarding this process for any particular rule-making and may hold workshops, stakeholders meetings or other opportunities to gather information before drafting a rule proposal."

Chairman Jones' chief of staff, Andrew Keefer, said discussions of the new rules may begin in late June.

"The intent is to get it done as quickly as possible," Keefer said, but public comments can drag the process out.

Copyright (c) 2011, Houston Chronicle

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Solo Oil to Take Stake in Ausable Field

- Solo Oil to Take Stake in Ausable Field

Tuesday, May 24, 2011
Solo Oil plc

Solo Oil has entered into a binding Heads of Agreement with Reef to earn a 38.1% direct working interest in the Ausable Field and surrounding properties in South Western Ontario.

Highlights:

• Production testing will soon commence on Ausable #5
• Ausable #5 contains 72 meters of net hydrocarbon bearing pay
• Further wells are planned along with expansion of the production facility during 2011
• To gain a 38.1% working interest Solo will:
  • Convert its existing Participating Loan of CDN $1.65 million into a direct working interest in the Properties, and
  • Invest up to an additional CDN $2.35 million in the Properties

Neil Ritson, Solo Executive Director, commented, "The initial facilities upgrade and drilling of Ausable #5 has provided proof of concept at Ausable in the last 6 months and Solo now has sufficient confidence to convert its existing loan to a direct participation in the Reef properties and to commit to co-invest with Reef in the further development of the field and the surrounding opportunities. This is an important watershed in the project and we look forward to reporting on it further as the year progresses."

Terms of the Working Interest Acquisition

• Solo will convert its existing Participating Loan to a direct working interest in the Properties at a rate of 1% interest per CDN $105,000.
• Solo will advance a further CDN $200,000 following execution of the Heads of Agreement on the same terms.
• These additional funds will be used for the testing and completion of the Ausable #5 well, the tie-in of the South Airport gas well to the Ausable Field production facilities and the return to production of the Ausable #2 well.
• Solo and Reef will, within 30 days, agree and sign a First General Conveyance Agreement totaling 23.8% direct working interest in the Properties. On signature of this agreement Solo will advance a further CDN $650,000 to the project.
• Upon execution of the conversion of the Participating Loan as envisaged in the Heads of Agreement, Solo has additionally agreed to pay CDN $2.5 million to purchase an additional 14.3% direct working interest in the Properties.
• This additional payment will be released against agreed work programs and budgets following execution of a Second General Conveyance Agreement and Joint Operating Agreement, and when Reef raises equivalent equity funding of CDN $1.5 million.

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Nexen to Take Stake in Marathon's Polish Shale Play

Nexen to Take Stake in Marathon's Polish Shale Play

Wednesday, April 27, 2011
Marathon Oil Corp.

Marathon Oil has signed an agreement with a wholly owned subsidiary of Nexen under which Nexen will acquire a 40 percent working interest in 10 of Marathon's concessions in Poland's Paleozoic shale play.

"We are pleased Nexen will be joining Marathon to explore the resource potential of the substantial shale play acreage position we have established in Poland," said Annell R. Bay, Marathon's senior vice president of Worldwide Exploration. "This partnership provides not only financial risk mitigation but combines the extensive unconventional drilling and completion experience of Marathon and Nexen to fully evaluate the potential of these concessions."

Marathon currently holds an interest in 11 concessions in Poland, encompassing 2.3 million acres. The shales are Lower Paleozoic and located at depths of between 8,000 and 13,000 feet. Marathon plans to acquire 2D seismic during the first half of 2011, potentially followed by the drilling of one to two wells in the fourth quarter of 2011 and seven to eight wells during 2012. Marathon will remain operator of the 11 concessions.

EMAS to Take Delivery of FPSO from Keppel

EMAS to Take Delivery of FPSO from Keppel

Friday, April 15, 2011
Keppel Corp. Ltd.

EMAS Production is set to take delivery of one of Vietnam's largest Floating Production Storage and Offloading (FPSO) vessels from Keppel Shipyard Limited (Keppel Shipyard), on behalf of owner PV Keez Pte. Ltd (PV Keez).

To be managed and operated by EMAS Production, FPSO Lewek EMAS has been chartered by Premier Oil Vietnam Offshore B.V. for the development of the Chim Sáo field off southern Vietnam for six years, with a further option to extend the charter by another six years. The FPSO charter contract is one of only seven signed worldwide in 2009, and is worth approximately US$1 billion.

The project to convert the 168,000 dwt Suezmax tanker into an FPSO was awarded to Keppel Shipyard in December 2009. To date, Keppel Shipyard has achieved a good safety record of over 4.1 million incident-free man-hours for its conversion.

Speaking at the vessel's naming ceremony, Mr. Lionel Lee, Group Managing Director of EMAS said, "Lewek EMAS is our second FPSO project with Keppel Shipyard with whom we have established a win-win partnership. This FPSO underscores EMAS' ability to deliver a diverse range of customized marine and offshore support solutions, from design and engineering to maintenance and offshore installation. The addition of Lewek EMAS to our fleet propels EMAS Production to be one of Asia's leading FPSO operators."

Mr. Nelson Yeo, Managing Director of Keppel Shipyard said, "Keppel Shipyard is pleased to support the conversion of Lewek EMAS. We provided a broad spectrum of FPSO conversion services on this project, including the engineering and fabrication of topsides modules.

"In spite of the tight schedule, the project teams for this conversion have worked hard to upkeep the highest standards of quality and safety of our people and workplace. The successful conversion of Lewek EMAS further enhances Keppel as the choice provider of reliable and value-added services."

Lewek EMAS is on track for delivery in the second quarter of 2011, and is expected to begin production in July this year.

A joint venture between Ezra Holdings Limited, PetroVietnam Transportation Corporation, EOC Limited and KSI Production Pte Ltd, PV Keez is the first overseas company to secure an offshore Vietnam loan in order to finance the FPSO's conversion.

Ophir to Take Reins of Block Offshore Tanzania

Ophir to Take Reins of Block Offshore Tanzania

Thursday, April 07, 2011

Ophir Energy plc

Ophir announced that a subsidiary has entered into agreement with Ras Al Khaimah Gas Tanzania Ltd (RAKGas) to acquire a 70% interest and Operatorship of a Production Sharing Agreement (PSA) over an area designated as the East Pande Block in Tanzania. Completion of this agreement is subject to standard Government consents.

The East Pande license lies in the coastal region of southern Tanzania covering an offshore and onshore area in excess of 7,500km2. The block lies immediately to the west of Blocks 1, 3 and 4 in which Ophir has a 40% interest. Ophir has recently drilled the first deepwater wells offshore Tanzania resulting in three significant gas discoveries. The maximum water depth in the East Pande block is approximately 2,000m. The PSA was awarded to RAKGas in 2006.

In late 2010 RAKGas acquired approximately 1,800 line kilometers of 2D seismic data in the offshore section of the block. The data indicates the continuous nature of the geology between East Pande and the prospective Ophir acreage to the east. Subject to partner and Government consent, Ophir intends to acquire a new 3D seismic survey in the offshore section of the block.

Under the terms of the farm in agreement, Ophir will fund 100% of the cost of the 3D seismic survey and will reimburse certain back-costs. In the event that Ophir elects to drill, RAKGas will be carried through the drilling of the first exploration well.

Ophir and RAKGas are also partners in the Berbera PSA in Somaliland.

Ophir's New Business Director Jonathan Taylor commented, "We are delighted to extend our partnership with RAKGas to the East Pande project and to further deepen our relationship with the Government of Tanzania. With our recent exploration discoveries in Blocks 1 and 4, immediately adjacent to East Pande, we are well placed to build on this success and undertake a fast-track exploration campaign to pursue the petroleum potential of this exciting project."

Shell to Take Reins Offshore Sicily

Shell to Take Reins Offshore Sicily

Tuesday, April 05, 2011
Northern Petroleum plc

Northern announced that Northern Petroleum (UK) Limited ("NPUK") has applied to the Italian authorities for the transfer to Shell Italia E&P S.p.A ("Shell") the role of Rappresentante Unico ("Operator") for six permits offshore west of Sicily; G.R17.NP, G.R18.NP, G.R19.NP, G.R20.NP, G.R21.NP and G.R22.NP, located in the thrust and fold belt to the west of Sicily. The transfer would enable
Shell to progress work required to apply for drilling approvals in advance of the final decision as to whether an exploration well is to be drilled in the permits. The joint venture is currently finalizing the subsurface evaluation.

Northern has acted as Operator of the permits during the 2D and 3D seismic phases of the exploration program, the costs of which were met by Shell. Under the terms of the farm-in agreement Shell holds 55% in G.R17.NP, G.R18.NP, G.R19.NP and 70% in G.R20.NP, G.R21.NP and G.R22.NP, with NPUK holding the remaining equity interest in the permits.

Valiant to Take Stake in Orchid Prospect

Valiant to Take Stake in Orchid Prospect

Monday, April 04, 2011

Valiant Petroleum plc

Valiant's wholly owned subsidiary, Valiant Exploration Limited, has reached an agreement to acquire a 30% stake in Block 29/1c containing the Orchid prospect from Summit Petroleum Limited ("Summit") in return for carrying a share of the cost of the initial exploration well.

The Orchid prospect is a four-way dip closure in the Tertiary and Chalk horizons and is a located in the Central North Sea surrounded by the producing Banff, Kyle, Bittern and Gannet group of fields. The Orchid prospect is located adjacent to acreage Valiant recently agreed to acquire from Sterling Resources (U.K.) Ltd, which contains a similar prospect and two smaller appraisal opportunities.

Summit, the operator, is currently seeking a semi-submersible rig to drill the prospect in the second half of the year.

Peter Buchanan, CEO, commented, "We are pleased to join Summit in the Central North Sea which is a growing area of exploration focus for Valiant. Orchid will be the third exploration well planned for 2011 following the recent announcement regarding the farm-out of Cladhan South in the Northern North Sea and the Don Southwest Area E discovery made in the first quarter."

LG International to Take Stake in Geopark Assets

LG International to Take Stake in Geopark Assets

Wednesday, March 30, 2011
Geopark Holdings Ltd.

LG International and GeoPark announced the acceleration of their strategic partnership by the acquisition of and investment in certain upstream oil and gas interests of each company.
In 2010, GeoPark and LGI entered into a strategic partnership to acquire a portfolio of oil and gas upstream assets in Latin America. As an initial step to cement this relationship, GeoPark has reached an in-principle agreement to sell to LGI a 10% interest in GeoPark Chile Limited, a company registered in Bermuda, for US $70 million. The transaction is expected to close in 2Q 2011.

In addition, in a separate transaction, and subject to obtaining regulatory approvals, GeoPark has reached an in-principle agreement to invest up to US $10 million in the drilling of an exploration well on the Sholkara prospect in the LGI-operated Block 8 in Kazakhstan, which would give GeoPark effectively a 25% participating interest in Block 8. The Sholkara prospect has an unrisked mean oil resource estimate of 100-400 million barrels and represents an exciting opportunity for GeoPark outside its historical and principal area of focus.

LGI is the energy, natural resource and trading affiliate of LG Corporation, the large international Korean company with 147 subsidiaries operating in over 50 countries and with annual sales exceeding US $100 billion. LGI has successfully invested and operated in the oil and gas exploration and production business for over twenty years including current upstream oil and gas projects in Oman, Vietnam and Kazakhstan. LGI has adopted a long term strategy of investing in oil and gas upstream investments in emerging resource-rich countries and has targeted Latin America as a new growth region.

Both transactions are subject to the signing of definitive legal agreements and final approval of the GeoPark and LGI Boards of Directors.

Commenting on today's announcement, James F. Park, Chief Executive Officer of GeoPark, said, "GeoPark views its strategic partnership with LGI as a key element of its future growth and expansion in Latin America. The opportunity to cement this relationship by an initial sharing of projects builds a solid base for a promising long term and committed acquisition partnership. It also clearly demonstrates the value of the business that GeoPark has developed since 2006. GeoPark's primary operational focus will continue to be on developing an exploration and production business in Latin America and we look forward with genuine excitement to the prospect of growing our business across Latin America in partnership with LGI."