Weather Watch: 7 of 10 Missing Workers Rescued Alive in Gulf

- Weather Watch: 7 of 10 Missing Workers Rescued Alive in Gulf

Monday, September 12, 2011
Dow Jones Newswires
by Anthony Harrup

Mexican state oil company Petroleos Mexicanos, or PEMEX, said Sunday that seven of 10 workers missing after abandoning a vessel in the Gulf damaged by Tropical Storm Nate have been rescued alive, and that the bodies of two others who died were also recovered.

Pemex said of the seven who were rescued alive are four Mexicans, a Bangladeshi and two U.S. citizens. It said the bodies of the two dead workers had yet to be identified.

The 10 workers, three employees of U.S. seismic data company Geokinetics Inc. (GOK) and seven contract workers went missing Thursday after the vessel Trinity II was disabled by the storm off the coast of Tabasco state, and they evacuated into a life raft.

PEMEX said the workers were located off the coast of Campeche state, 51 miles from the Cayo Arcas offshore oil export terminal.

The rescued workers were being transported by helicopter to a PEMEX hospital in Cuidad del Carmen, and the search continues for the 10th worker, PEMEX added.

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Weather Watch: BP Evacuates Nonessential Personnel from GOM Platforms

- Weather Watch: BP Evacuates Nonessential Personnel from GOM Platforms

Thursday, September 08, 2011
Rigzone Staff
by Saaniya Bangee

BP has evacuated nonessential personnel from three of its production platforms in the Gulf of Mexico due to Tropical Storm Nate.

BP spokesman Daren Beaudo said personnel have been evacuated from the Mad Dog, Holstein and Atlantis platforms in the southern Green Canyon section of the Gulf of Mexico.

The storm is expected to move toward the southern tip of Texas but will not make landfall until late Sunday or Monday, according to the National Hurricane Center.

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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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Commodity Corner: Crude Up on Weather Threat

- Commodity Corner: Crude Up on Weather Threat

Thursday, September 01, 2011
Rigzone Staff
by Saaniya Bangee

Despite shaky equities and a rising dollar, crude futures inched modestly higher Thursday on weather reports of a storm brewing in the Gulf of Mexico.

October oil added 12 cents to its final price tag, settling at $88.93 a barrel on the New York Mercantile Exchange. Oil traded as low as $88.21 a barrel after an earlier intraday peak of $89.90.

The National Hurricane Center reported an 80 percent chance that a tropical wave in the Gulf of Mexico could develop into a tropical cyclone within the next 48 hours. Oil majors such as Shell, ExxonMobil, BP, Anadarko and BP have evacuated nine platforms in the Gulf of Mexico and shut in nearly 80,000 barrels of oil production, according to the Bureau of Ocean Energy Management, Regulation and Enforcement. In addition, 127 million cubic feet per day of natural gas was also shut in.

In other forecasts, initial unemployment claims fell by 12,000 to 409,000 last week. Data reported by the Labor Department helped boost optimism about the economy.

Brent crude, which is used to price many international oil varieties, lost 56 cents to settle lower at $114.29 barrel on fresh concerns over Greece's debt problems. The intraday range for Brent was $113.89 to $115.31 a barrel on the ICE future exchange.

Natural gas for October delivery remained unchanged at $4.05 per thousand cubic feet Thursday.

Gasoline gained 1.64 cents for the first trading session for the October contract. Reformulated gasoline settled at $2.89 a gallon. Some East Coast refineries remain shut down due to Hurricane Irene. Prices fluctuated between $2.85 and $2.92 Thursday.

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Weather Watch: Producers Evacuate Workers as Storms Threaten Gulf of Mexico

- Weather Watch: Producers Evacuate Workers as Storms Threaten Gulf of Mexico

Thursday, September 01, 2011
Rigzone Staff
by Karen Boman

Oil and gas exploration and production companies have begun evacuating workers from Gulf of Mexico operations and shutting in production due to the storm system that could turn into the 12th tropical cyclone of this year's hurricane season.

Shell reported it was moving forward with a plan to reduce the number of employees from most of its operations, but weather conditions are already impairing staff movement. "We are using all available resources to safely evacuate employees," said Shell. The number of evacuated personnel will depend on weather condition; personnel will only be moved if safe to do so.

Shell has taken steps to begin shutting in production, focusing on subsea fields that require specific treatments to ensure production can be restored after the storm passes. "The impacts are minimal at this point and we are monitoring Shell non-operated downstream infrastructure for further impacts to our production that may occur," Shell said.

ExxonMobil is evacuating approximately 140 employees and contractors from its Gulf Coast offshore platforms expected to be in the path of the storm. Gross production of approximately 11,000 b/d of liquids and 60 MMcf/d of natural gas has been shut in. "Our primary focus continues to be the safety of our workforce," ExxonMobil said.

BP has begun evacuations of all personnel from its operated assets in the Gulf of Mexico. On Wednesday, 500 non-essential workers had been evacuated. That activity will continue through Thursday and potentially into Friday.

BP operated assets included in this evacuation include Mad Dog, Holstein, Atlantis, Nakika, Pampano, and Thunder Horse. "We will continue monitoring weather conditions and will re-staff these facilities when it is deemed safe to do so," a BP spokesperson said.

Anadarko Petroleum Corp. reported Thursday that it had removed approximately 100 employees from and was shutting in production at all eight of its operated Gulf facilities, including Independence Hub, Constitution, Marco Polo, Red Hawk, Nansen, Boomvang, Gunnison and Neptune. "We will continue to monitor the path of the weather in the Gulf and will return our workers and restore production only when it is safe to do so," the company said in a statement.

Apache Corp. has begun moving some non-essential employees out of the Gulf ahead of the hurricane, a company spokesperson said. Chevron is closely monitoring the tropical disturbance in the Gulf of Mexico. Non-essential personnel are being evacuated and no production has been affected.

The Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) reported that personnel have been evacuated from nine production platforms as of 11:30 a.m. CDT Thursday, equivalent to 1.6 percent of the 617 manned platforms in the Gulf. None of the 62 rigs currently operating in the Gulf have been evacuated.

BOEMRE estimated that approximately 5.7 percent of current Gulf oil production, or 79,989 b/d, has been shut in, and approximately 2.4 percent of Gulf natural gas production, or 127 MMcf/d, has been shut in. BOEMRE's survey information is based on seven companies' reports as of 11:30 a.m. CDT Thursday.

The National Hurricane Center (NHC) is monitoring a broad area of low pressure in the central Gulf of Mexico 200 miles south of the Louisiana coast that is producing a large area of cloudiness, thunderstorms and gusty winds over the eastern and central Gulf. NHC forecasts upper-level winds to become more conducive for development, and the system could become a tropical depression during the next day or so.

NHC said the system has an 80 percent chance of becoming a tropical cyclone, which would be named Lee, according to the NHC website, as it moves slowly to the northwest. A National Oceanic and Atmospheric Administration hurricane hunter aircraft is scheduled to investigate the area later this afternoon. "Interests along the entire northern Gulf of Mexico coast should monitor the storm's progress," NHC said.

NHC also is tracking Hurricane Katia, which is churning across the Atlantic Ocean towards the U.S. Currently a Category 1 hurricane with maximum sustained winds or near 75 mph, Katia is expected to strengthen over the next 48 hours, and could become a major hurricane by the weekend.

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Gulf Weather System Upgraded to Tropical Storm Don

- Gulf Weather System Upgraded to Tropical Storm Don

Thursday, July 28, 2011
Rigzone Staff

The tropical disturbance that has been forming in the Gulf of Mexico has been upgraded to Tropical Storm Don. The National Hurricane Center reported that the storm is moving toward the west-northwest at approximately 10 mph and an increase in forward speed is expected through Friday. As of Thursday morning, the storm's location is approximately 495 miles east-southeast of Brownsville, Texas

Should the storm stay on its present track, its center would move through the southern and central Gulf of Mexico Thursday and approach the Texas coast on Friday. Maximum sustained winds remain near 40 mph and tropical storm force winds extend outward up to 45 miles from the center.

Oil companies have begun evacuating non-essential personnel from offshore installations in the path of the storm. Shell, Apache, Chevron, BP and BHP have said that while evacuations have started, production has not been impacted.

BP has evacuated non-essential personnel from the Atlantis, Mad Dog, and Holstein production facilities located in the southern Green Canyon area. Shell has begun securing well operations and evacuating personnel from the Perdido Spar, Auger platform and the Noble Danny Adkins ultra-deepwater semisub. BHP Billiton has evacuated non-essential personnel from Shenzi which is located in Green Canyon 609 and Neptune which is located in the Atwater Valley area.

Anadarko has evacuated approximately 185 employees and contractors from their Nansen, Boomvang, Gunnison, Red Hawk and Constitution spars as well as the Marco Polo facility in the western Gulf of Mexico. As a precaution, Anadarko is also shutting in production at these facilities.

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Gulf Weather System Nearly Certain To Become A Tropical Cyclone

- Gulf Weather System Nearly Certain To Become A Tropical Cyclone

Wednesday, July 27, 2011
Dow Jones Newswires
HOUSTON
by Isabel Ordonez & Ryan Dezember

U.S. forecasters said a weather system rumbling into the southwestern Gulf of Mexico will almost certainly become a tropical cyclone by Friday afternoon.

The National Hurricane Center said satellite imagery indicates a tropical depression or tropical storm could be forming 90 miles north of Cancun, Mexico. The system, passing through the channel between the Yucatan peninsula and Cuba's western tip, is moving west-northwest at 15 miles per hour, forecasters said.

The Hurricane Center has dispatched a Hurricane Hunter airplane to the area to investigate conditions. The storm has a "near 100%" chance of becoming a tropical cyclone by midday Friday, forecasters said.

The Gulf accounted for about 30% of all U.S. oil production last year, with more than 606 million barrels. Gulf wells also account for about 7.2% of U.S. natural gas production.

Shell, one of the largest producers in the Gulf of Mexico, said it has evacuated some non-essential personnel from its southwest operations due to the threat of a possible storm.

The company said it evacuated about 70 people and that production isn't affected. Evacuation started Tuesday and continued Wednesday, the company said.

"These personnel are not essential to core producing," the company said.

Shell said it began securing operations on the Perdido platform, which it operates in partnership with Chevron and BP. About 200 miles south of Galveston, Texas, in about 8,000 feet of water, the Perdido platform is the world's deepest drilling and production platform. Its peak production is the equivalent of about 100,000 barrels of oil per day.

Shell also said it is securing operations on the Noble Danny Adkins, a deep-water drill ship it is leasing from Noble which is working in the vicinity of the Perdido platform. Noble spokesman John Breed said the company isn't evacuating workers from the rig but is "securing operations" aboard the ship.

Other major Gulf of Mexico producers BP, Chevron and ConocoPhillips said Wednesday they are monitoring the weather and developing plans should it threaten their operations.

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

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Edge's Drilling Program Delayed Due to Wet Weather

- Edge's Drilling Program Delayed Due to Wet Weather

Wednesday, July 20, 2011
Edge Resources Inc.

Edge Resources provided the following operational update in response to the recent flooding and extremely wet weather in the area of Eckville, Alberta, where the Company currently operates the majority of its producing natural gas wells.

Eckville has recently made news headlines because of heavy rains and flooding in and around the town. While the Company is disheartened by the loss and damage to property in and around Eckville, Edge is pleased to announce that none of its production or current operations have been adversely affected by the flooding.

The Company had hoped to initiate its summer 2011 drilling program this week; however, the extremely wet conditions have delayed the initiation of this program as well as delayed additional completion and tie-in activities in the area. The Company expects that it will be in a position to move a drilling rig into the area in August, with the help of warmer, drier weather.

In the meantime, the Company will continue with preparatory, regulatory and pre-construction administrative work for these and additional projects.

Brad Nichol, President and CEO of Edge commented, "It is devastating what has happened to the residents in the Eckville area. Edge has always employed a strategy of utilizing local contractors and supporting the local economy in its operations, so the flooding is more than just a newspaper headline to us. Some residents have reported that this was the worst storm in 45 years, which resulted in the closure of highways and bridges."

Edge's main producing natural gas property is approximately 30 km west of Eckville, near the town of Leslieville, Alberta.

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JayHawk: Weather Dampens Production at ND Well

- JayHawk: Weather Dampens Production at ND Well

Monday, June 27, 2011
JayHawk Energy Inc.

JayHawk announced that due to ongoing unfavorable weather conditions in North Dakota, including the recent flooding, there has been no well production for the last 3 months from its Divide County, North Dakota producing property. JayHawk currently has approximately 2,000 barrels of oil in its tanks awaiting delivery. JayHawk is continually monitoring weather conditions for a window of opportunity to come back online and begin production again. Severe weather conditions, including heavy flooding, have been ongoing throughout North Dakota since February, 2011. Due to these harsh weather conditions, the Federal Emergency Management Team (FEMA) declared a Major Disaster on May 10, 2011, for several parts of North Dakota, including Divide County. The National Weather Service in Bismarck, North Dakota issued a hazardous weather outlook for portions of the state, including northwest North Dakota from Thursday, June 23, 2011 through Friday, June 24, 2011, with chances of thunderstorms, strong winds and hail.

Additionally, a report from the Associated Press, dated June 22, 2011, states, "water from the Souris River, which loops down from Canada through north central North Dakota, has been bloated by heavy spring snowmelt and rain on both sides of the border. The resulting deluge is expected to dwarf a historic flood of 1969, when the Souris reached 1,554.5 feet above sea level. The river is expected to hit nearly 1,563 feet this weekend -- eventually topping the historical record of 1,558 feet set in 1881."

JayHawk's focus, over the course of this current fiscal year, is to enhance the production rate of its current wells in the North Dakota basin and also increase its acreage with additional proved producing properties or properties which will allow for additional production and development. The Company's focus remains on its North Dakota properties as management has surmised its best opportunity for increased production remains in the Bakken/Three Forks formations.

Lindsay Gorrill, President of JayHawk Energy, stated, "The unusually poor weather conditions have delayed our delivery of production. However, once these conditions clear, we anticipate moving forward with our operations. We expect normal operations and production which will assist in facilitating our operational expenses and provide flexibility to develop additional opportunities within the region. As weather conditions improve, we look forward to also shipping approximately 2,000 BBLs of oil currently in our tanks that are presently inaccessible."

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Kodiak Reports Weather Impact on 2011 Production

- Kodiak Reports Weather Impact on 2011 Production

Monday, June 13, 2011
Kodiak O&G Corp.

Kodiak updated its operations in the Williston Basin and discussed the first-half 2011 impact of weather conditions on Kodiak operations across the Basin.

The Company's operations were adversely impacted by breakup from a record winter snowfall, sustained heavy rainfall, and periods of flooding throughout the second quarter. Certain state highways and counties have imposed intermittent road restrictions on heavy trucks, causing limited trucking, which has resulted in some of the Company's wells being shut-in due to the inability to transport oil. While there has been some relief from the weather, current conditions continue to make operations challenging. The ultimate impact on Kodiak's second quarter 2011 production is not yet fully known. However, despite the difficult weather conditions, Kodiak estimates that its second quarter 2011 sales volumes should represent an approximate 35% increase over the Company's first quarter 2011 sales volumes.

Revised Full-Year 2011 Production Guidance and Reaffirmation of Year-End Exit Rate

Due to the protracted adverse inclement weather conditions in the Williston Basin, the Company has revised its production outlook for the full-year 2011. Previously, the Company had expected net 2011 production to average near the lower-end of the range of 5,500 barrels of oil equivalent per day (BOE/d) to 6,500 BOE/d. The Company now expects that its annual production will average in the range of 4,500 BOE/d to 5,000 BOE/d.

Despite the inclement weather, road closures, flooding and other impediments to normal oilfield operations in North Dakota endured by industry during the first half of 2011, Kodiak continues to expect a December 31, 2011 production exit rate of 9,000 BOE/d. The Company's 2011 estimated capital expenditure budget of $230 million also remains unchanged. The 2011 drilling program contemplates the drilling of 42 gross wells, 26 of which are net to the Company's interest. This estimate has been upwardly revised from previous estimates of 38 gross and 23.4 net wells.

Operations Update

Kodiak currently operates a three-rig drilling program in the Williston Basin, with the rigs drilling on multi-well pads in three of the Company's core projects areas: Dunn County, N.D., and Koala and Smokey in McKenzie County, N.D. The Company expects to take delivery of a fourth operated rig this week and a fifth operated rig in the fourth quarter 2011.

Kodiak currently has six gross (four net) operated wells waiting on completion. The wells are comprised of a two-well pad on the Koala block which is scheduled for completions from late June and into July 2011 and a four-well pad in Dunn County where completions are expected to commence during July and into August 2011. Drilling rigs were moved off of these pads in May 2011 and work is being completed to build-out the production facilities.

Kodiak has also participated in the drilling of four gross (two net) non-operated wells that are awaiting completions in its Dunn County core operating area. These completions are anticipated for the late second quarter and early third quarter of 2011. Drilling operations continue on this non-operated block of acreage where Kodiak controls a 40% to 50% working interest in the wells being drilled. Kodiak expects that this drilling and completion pace will continue through at least the end of 2011.

Kodiak achieved 30-day production rates on the Koala #9-5-6-5H well [95% working interest (WI); 78% net revenue interest (NRI)] of 35,042 barrels of oil and 50.2 million cubic feet of natural gas (MMcf) for 43,408 barrels of oil equivalent (BOE). The well was drilled in the middle Bakken member. The Company also drilled a well, the Koala #9-5-6-12H3 (95% WI; 78% NRI), in the Three Forks Formation from the same pad. The well achieved 30-day production numbers of 25,495 barrels of oil and 36.1 MMcf of gas or 31,512 BOE.

Management Comment

Commenting on ongoing operations, Kodiak's President and CEO Lynn A. Peterson said, "We have certainly been hampered by the elements during the first half of 2011. The roads conditions have been challenging and from time to time were impassable, causing difficulty in crude hauling and in moving equipment. However, we have continued to move forward with our capital program, and while we have had some delays moving equipment and building facilities, we do not expect these conditions to carry over to our drilling and completion activities during the second half of the year.

"Our drilling operations did not suffer any material adverse weather impact which can be largely attributed to our pad drilling, eliminating the need to constantly move rigs. All of Kodiak's rigs are currently on two well pads and we continue to efficiently drill ahead. We are making progress in connecting our wells into pipelines; however, that work has also experienced weather-related delays. With many of our wells projected to be producing into pipelines by year-end, future crude hauling disruptions should be mitigated and future winter production should improve.

"When we have been able to produce our wells, the results continue to be very encouraging. Producing a combined total of 60,500 barrels of oil and 86 MMCF of gas during the first 30 days of production from our first two wells completed on our Koala block in McKenzie County is a strong indicator of the productive potential of this block. Lastly, we continue discussions with our pumping service provider to add days to our dedicated frac crew and believe that we will have an adequate number of days to accommodate our accelerated completion schedule."

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SOCAR Awaits Favorable Weather to Start Geophysical Studies in Caspian Sea

SOCAR Awaits Favorable Weather to Start Geophysical Studies in Caspian Sea

Friday, April 22, 2011
Knight Ridder/Tribune Business News
by E.Ismayilov, Trend News Agency, Baku, Azerbaijan

The State Oil Company of the Azerbaijan Republic (SOCAR) waits for the normalization of weather conditions to launch a large-scale project within the two-dimensional geophysical studies for the company Bahar Energy Limited, a source at SOCAR said.

The operations envisage conducting the geophysical research on the area between the Bahar-2 prospective structure and the Gum Deniz field.

The source said that sonar work has already been launched in the contract area. Preparations are underway for direct geophysical studies.

"Preparatory work is underway. Winds on the sea do not allow operation in normal mode, and the study will be initiated as soon as weather becomes normal," the source said.

Previously, SOCAR signed a PSA contract with the company Bahar Energy Limited for the exploration, rehabilitation, development and production on the block, which also includes offshore fields of Bahar and Gum Deniz. The contract was ratified by the Azerbaijani Parliament.

Under the second part of the contract, which involves the exploration of the Bahar-2 structure, there are plans to drill one exploration well in three years. If necessary, another one will be drilled during the fourth year. According to initial estimates, Bahar Energy Limited will invest $1 billion to conduct work under the contract.

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