Report: E&P Capital Spending to Rise 12% in 2011

- Report: E&P Capital Spending to Rise 12% in 2011

Tuesday, August 02, 2011
Rigzone Staff
by Karen Boman

Capital spending on exploration and production (E&P) by 139 publicly traded oil and gas companies is expected to rise by 12 percent to $406 billion in 2011. Spending growth this year is largely fueled by strong oil prices and builds on gains of 19 percent in 2010, according to a new report by IHS.

While the increase is less than the 19 percent increase seen last year, oil and gas companies, which spent considerably less during the economic downturn of two years ago, are continuing to increase their upstream portfolio investments, particularly for oil-weighted projects, said Aliza Fan Dutt, senior analyst at IHS and author of the IHS Herold Global E&P CAPEX Review.

"Despite recent volatility and a wobbly economy recovery, oil prices remain relatively strong, which supports higher capital spending. In addition, investments in oil and unconventionals continue at a rapid clip, which conventional gas outlays remain relatively depressed."

The shift to drilling on oil and liquids-rich properties that began in 2010 accelerated through the year and continues today, according to the report. According to Fan Dutt, "those companies that shifted their portfolios earlier will benefit more than those that moved more slowly." Fan Dutt cited EOG Resources as an example of such a company. EOG, a natural gas producer, shifted to the oil side much earlier than most of its peers. AS a result, oil now contributes 60 percent of the company's revenues; EOG is posting strong earnings growth."

"Cost inflation will continue to be a key issue, with more companies competing for oil services and equipment during a time of elevated oil prices," said Fan Dutt. "Cost containment will be particularly important for natural gas-weighted producers as they struggle to achieve strong margins amid weak natural gas prices."

Mid-size U.S. E&P companies should increase spending by 25 percent, while U.S. integrated oil companies are expected to reduce their spending rate to 14 percent this year. However, as a group, integrated oils are planning to continue their massive investments in oil and gas projects worldwide.

Marathon Oil Corp., the most aggressive of the integrated U.S. companies, is ramping up spending by 37 percent as it drills on expanded U.S. acreage in the Anadarko Woodford play, the Niobrara play in the Denver-Julesberg Basin in Colorado and Wyoming and in its Bakken shale position.

The largest North American E&Ps will increase capital outlays by only three percent, which will be buttressed by spending on unconventional resources in shale basins, according to the report. "For example, Pioneer is increasing its spending by 53 percent, with its expansive holdings in the Spraberry field and Eagle Ford shale play, where it was an early entrant."

Global integrated oil companies will continue to make massive investments in oil and gas projects worldwide with a "muted" nine percent spending increase, down slightly from last year. Canadian integrated oil companies are slightly more eager to spend with a planned increase of 13 percent. Husky Energy leads this group with a 44 percent increase on operations mainly in Western Canada and offshore Canada's east coast.

Spending by integrated oil companies outside North America is expected to rise by 13 percent in 2011, the same growth rate seen last year. IHS attributed the increase to strong spending in Latin America and Russia. Colombia's state-owned oil company Colombia will spend 56 percent more this year on top of a 34 percent increase last year. Brazil's state energy company Petrobras also continues to invest heavily on its upstream portfolio with an estimated 24 percent increase. Additionally, Russia's Lukoil is expected to spend 55 percent more this year.

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Crimson Updates Production Activity, Ups 2011 Capital Plans

- Crimson Updates Production Activity, Ups 2011 Capital Plans

Monday, July 18, 2011
Crimson Exploration Inc.

Crimson Exploration Inc. on Monday provided an operational update and announced an increase in its 2011 capital program.

In Liberty County, TX, the Catherine Henderson #B-4 (64.0% WI) commenced production at a gross daily rate of 1,379 Boepd, or 721 barrels of condensate, 208 barrels of natural gas liquids and 3.2 Mmcf of natural gas on a 13/64th choke and 7,000 psi of flowing tubing pressure. This well was drilled to a total measured depth of 15,338 feet in the Lower Cook Mountain formation. Approximately one mile to the northwest, Crimson has drilled the Catherine Henderson A-10 (66.0% WI), targeting the Cook Mountain formation, to a total measured depth of 13,742 feet. Completion operations are scheduled to begin by the end of July with first production in early August.

In Zavala County, TX, Crimson completed the KM Ranch #1H (50.0% WI), targeting the Eagle Ford Shale, and has commenced flow-back operations with results expected in mid-August. The well was drilled to a total measured depth of 12,627 feet, including a 5,800 foot lateral and 20 stages of fracture stimulation. The KM Ranch #1H represents Crimson’s first well in Zavala County where Crimson has an estimated 147 drilling locations and approximately 2,300 net acres held by production. Crimson anticipates spudding the KM Ranch #2H (50.0% WI) in the beginning of November subsequent to spudding its first well in the Booth-Tortuga Area, approximately 13 miles to the southwest of the KM #1H, in the beginning of October.

In Karnes County, Texas, Crimson spud the Littlepage McBride #2H (53.0% WI), targeting the Eagle Ford Shale formation, which is drilling at 8,480 feet toward an estimated total measured depth of 15,850 feet. Completion operations are expected to begin mid-third quarter with initial production to follow in September. The Littlepage McBride #2H is located approximately 0.6 miles to the east of the Littlepage McBride #1H well (53.0% WI) which is currently producing 525 Boepd and has produced a cumulative 53,000 Boe since coming online in early April. Due to the success experienced in Karnes County, we have planned a continuous drilling program for the remainder of the year, commencing a well per month beginning in August.

Updated 2011 Capital Program

Crimson’s Board of Directors recently approved increasing its 2011 capital budget to $78 million, a 30% increase, to accelerate oil weighted drilling activities in Zavala, Dimmit and Karnes Counties. This decision was made based on Crimson’s extensive portfolio of drill ready oil opportunities and recent success. The increase in capital expenditures marks the beginning of an Eagle Ford development program that represents a strategic shift to oil and liquids rich projects in proven areas. As a result, preliminary internal forecasts indicate Crimson’s production mix will be over 40% crude oil and natural gas liquids by January 2012 and over 50% crude oil and natural gas liquids by the second quarter of 2012.

Second Quarter 2011 Production

Crimson produced approximately 4.4 Bcfe of natural gas equivalents, or an estimated 48,740 Mcfe per day, during the second quarter 2011, compared with 2.7 Bcfe, or 30,084 Mcfe per day, produced during the second quarter of 2010, a 62% increase period over period. The second quarter production results were in line with management’s guidance.

Crimson Exploration is a Houston, TX-based independent energy company engaged in the acquisition, development, exploitation and production of crude oil and natural gas, primarily in the onshore Gulf Coast regions of the United States. The Company owns and operates conventional properties in Texas, Louisiana, Colorado and Mississippi, approximately 12,000 net acres in the Haynesville Shale, Mid-Bossier, and James Lime plays in San Augustine and Sabine counties in East Texas, approximately 6,700 net acres in the Eagle Ford play in South Texas and approximately 11,000 net acres in the Denver Julesburg Basin of Colorado.

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Analysis: Shale Boom, Independents Drive U.S. Reserves, Capital Spending

- Analysis: Shale Boom, Independents Drive U.S. Reserves, Capital Spending

Wednesday, June 15, 2011
Rigzone Staff
by Karen Boman

The U.S. shale oil and gas drilling boom boosted U.S. oil and gas reserve growth to a five-year high in 2010, while upstream spending more than doubled from 2009 to 2010 largely due to producers' acquisitions of shale properties, according to Ernst & Young's fourth annual U.S. E&P Benchmark Study.

The survey of the 50 largest oil and gas companies by end-of-year reserves found that end-of-year oil reserves grew 11 percent from 16.1 billion barrels in 2009 to 17.8 billion barrels in 2010, and natural gas reserve grew 12 percent from 156.2 Tcf in 2009 to 174.3 Tcf in 2010, the strongest combined annual growth posted from 2006 to 2010.

Shale Rock

The oil production replacement rate for U.S. oil reserves from all sources, including extensions and discoveries, improved recovery, revisions, purchases and sales of proved reserves, was 234 percent in 2010, compared with a 158 percent replacement rate in 2009. The U.S. natural gas production replacement rate from all sources was 252 percent last year, compared with 156 percent in 2009.

Production replacement rates for 2010 that excluded purchases and sales were 205 percent for oil, 249 percent for gas, and 232 percent on a combined BOE basis.

The study found that independent oil and gas producers led in terms of oil production replacement rates for 2010, with independents replacing 601 percent of oil production from all sources last year and, excluding purchases and sales, replacing 433 percent of oil production.

Large independents replaced 241 percent of production from all sources, and 290 percent of production from sources other than purchases and sales. Meanwhile, integrated oil and gas companies replaced 141 percent of oil production from all sources, and 111 percent of production from sources excluding purchases and sales.

Integrated companies had a gas production replacement rate of 436 percent from all sources; however, this replacement rate reflects ExxonMobil's acquisition of XTO Energy, which was completed in June 2010. When purchases and sales were excluded, integrated companies had a gas production replacement rate of 111 percent.

Independents replaced 408 percent of gas production from all sources in 2010, or 375 percent when purchases and sales were excluded. Large independents recorded a negative gas production replacement rate of 34 percent, largely due to the ExxonMobil/XTO transaction, as XTO is classified as a large independent. Excluding purchases and sales, large independents had a gas production replacement rate of 263 percent in 2010.

Reserve replacement costs on a total basis, including proved property acquisitions, were up once again, increasing to $15.26 per BOE in 2010 from $12.78 per BOE in 2009. Reserve replacement costs on a finding and development basis, excluding proved property acquisitions, increased to $17.84 per BOE, up from $13.01 per BOE in 2009.

Upstream spending more than doubled from $72.8 billion in 2009 to $177.9 billion in 2010. ExxonMobil's acquisition of XTO Energy accounted for 51 percent of proved property acquisition costs of $42.2 billion and 40 percent of unproved property acquisition costs of $59.3 billion in 2010. Apache Corp.'s acquisition of Mariner Energy and assets from Devon Energy and BP contributed significantly to proved and unproved property acquisition costs, as did acquisitions by Chesapeake Energy and Denbury Resources.

Exploration costs increased eight percent from $14.3 billion in 2009 to $15.5 billion in 2010, while development spending increased 36 percent from $44.8 billion in 2009 to $60.8 billion in 2010, primarily due to shale oil and gas development. The increase in exploration and development spending was primarily driven by ExxonMobil, Chesapeake Energy and EOG Resources. Of the 50 companies surveyed, only four decreased their exploration and development spending in 2010 – BP, ConocoPhillips, Loews and Plains Exploration & Production.

The companies' plowback percentage, or total upstream spending as a percentage of netback, increased to 170 percent in 2010, the highest of the five-year period from 2006 to 2010, as companies reinvest in shale activity. In 2006, the plowback percentage reached 121 percent as a result of an increase in investment activity driven by a relatively high priced commodity environment.

ExxonMobil's acquisition of XTO and similar deals are part of the trend of major oil and gas companies following the lead of independent oil and gas companies, who were first movers in North American shale plays. This trend is occurring as integrated majors are finding it difficult to replace reserves organically. The rise of national oil companies overseas has made it more difficult for the companies to access foreign reserves, as have restrictions placed U.S. offshore drilling. U.S. independents and oil service companies have been at leading edge of technology, including developments in horizontal drilling, which have changed the oil and gas industry.

Horizontal drilling

Strong oil prices and weak, but stable, gas prices in 2010 encouraged investment in shale exploration efforts and production technology. The shift from gas to oil-focused drilling has created a drilling renaissance in the Permian Basin that has operators looking at plays nobody thought was possible.

However, consistency in commodity prices, as well as companies' abilities to find enough skilled employees and addressing issues surrounding hydraulic fracturing, are needed to allow companies to capitalize on shale properties. Despite controversy over hydraulic fracturing, the practice will likely continue, said Marcela Donadio, Americas Oil & Gas Leader for Ernst & Young, noting that companies are taking efforts to conduce fracing responsibly.

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Gran Tierra Ups 2011 Capital Spending to Develop S. American Assets

Gran Tierra Ups 2011 Capital Spending to Develop S. American Assets

Monday, April 11, 2011
Gran Tierra Energy Inc.

Gran Tierra announced capital spending plans on the recently acquired Petrolifera Petroleum Limited ("Petrolifera") assets.

Gran Tierra Energy intends to spend approximately $55 million on the newly acquired assets with approximately $25 million in Colombia, $14 million in Peru and $16 million in Argentina. Drilling and completion costs are expected to amount to $41 million, including $14 million in Colombia, $13 million in Peru and $14 in Argentina. Seismic costs total $12 million, mostly in Colombia and facilities costs total $2 million, mostly in Argentina.

This capital program is in addition to the $299 million 2011 capital program previously announced for Colombia, Peru, Brazil and Argentina by Gran Tierra Energy, which remains unchanged. This new combined capital program of approximately $355 million for 2011 is expected to be funded from existing cash reserves and cash flow.

"Our evaluation of the new assets under management indicates that there is significant potential to grow reserves and production in the coming years. With appropriate allocation of capital, we believe we can unlock significant value from these assets," said Dana Coffield, President and Chief Executive Officer of Gran Tierra Energy.

"In Colombia, Gran Tierra Energy intends to delineate a potential gas production platform in the Lower Magdalena basin, prepare for 2012 exploration drilling in Peru, and reverse production declines in Argentina where both oil and gas prices have consistently been rising."

Colombia

Gran Tierra Energy plans to spend approximately $14 million on drilling in Colombia, including one exploration well and one delineation well with the intention of evaluating a potential gas production platform in the Lower Magdalena Basin.

Sierra Nevada Block (100% working interest and operator)

Following Gran Tierra Energy's announcement of its offer to acquire Petrolifera, GLJ Petroleum Consultants Ltd. ("GLJ") independent resource evaluators, estimated 101.5 billion cubic feet ("BCF") of United States Securities and Exchange Commission ("SEC") compliant 3P natural gas reserves (15.6 BCF 1P and 34.3 BCF 2P) at the Brillante discovery well drilled in 2010. GLJ's estimate is effective December 31, 2010.

A delineation well in the Brillante discovery is planned for the third quarter of 2011 to further define the significant potential of this discovery. A regional gas market evaluation is underway, as well as an evaluation of transportation options in the area.

The La Pinta-1 well, drilled in 2010, encountered good oil shows while drilling in the Upper Porquero reservoirs. Gran Tierra Energy plans to re-enter this well and perforate this zone to test its oil potential in the third quarter of 2011.

Gran Tierra Energy also intends to acquire approximately 170 square kilometers of 3D seismic in preparation for future exploration and development drilling on the Sierra Nevada Block.

Magdelena Block (100% working interest and operator)

Testing operations on the San Angel-1 well continue and, contingent upon successful test results, Gran Tierra Energy may acquire approximately 150 square kilometers of 3D seismic in the area.

Turpial Block (50% working interest and operator)

One exploration well is planned for the Turpial Block to evaluate the heavy oil reservoirs encountered by stratigraphic drilling in the 1970's.

Peru

In 2011, Gran Tierra Energy intends to spend approximately $13 million in preparation for drilling in early 2012.

Block 107 (100% working interest and operator)

Gran Tierra Energy believes significant resource potential exists on Block 107 in Peru. One exploration well is planned for the second quarter of 2012, with 2011 spending dedicated to planning and purchase of long lead items in preparation for 2012 drilling.

Argentina

Capital spending in Argentina will initially focus on reversing production declines on properties in the Neuquen Basin. Gran Tierra Energy plans to spend $14 million on drilling and completions in Argentina.

Puesto Morales / Puesto Morales Este (100% working interest and operator)

Gran Tierra Energy plans to conduct work-over programs on approximately 16 wells, along with drilling approximately six development wells, including three producers and three new water injectors. Gran Tierra Energy believes it can improve recovery in the existing reservoirs by minimizing water channeling in the waterflood project through the use of polymer. The budgeted work program may be adjusted to accommodate results during implementation of the program.

Production and Reserves

Including the Petrolifera assets, Gran Tierra Energy anticipates average production in 2011 to range between 17,500 and 19,000 barrels of oil equivalent ("BOE") per day, net after royalty, weighted approximately 95% to oil.

Google to invest in German solar power plant

Google to invest in German solar power plant



Google (GOOG) announced today that it has agreed to make its first clean energy project investment in Europe - a EUR3.5M investment in a solar photovoltaic power plant in Germany. The transaction still requires the formal approval of the German competition authorities and is subject to other customary closing conditions. The recently completed facility is located near Berlin.

The power plant has a peak capacity of 18.65MW, which puts it among the largest in Germany. Google agreed to jointly invest in this project with the German private equity company Capital Stage.

KCA Deutag Finishes Refinancing Process

KCA Deutag Finishes Refinancing Process

Thursday, March 31, 2011
KCA DEUTAG

KCA Deutag announced the completion of a refinancing process. The successful conclusion of this process has resulted in a transaction that strengthens the capital structure of the Company and ensures the long term financial stability of the business.

KCA Deutag will benefit from a strong institutional shareholder base led by existing shareholder Pamplona Capital Management together with funds and accounts managed by GoldenTree Asset Management, EIG Global Energy Partners, and BlackRock Financial Management. Pamplona is the largest shareholder and will have a majority on the new board. The shareholders have equitized mezzanine debt and injected $550 million of new equity into KCA Deutag's holding company Turbo Alpha, of which $300 million will be used to pay down senior debt and $250 million to further develop the business.

Simultaneously, KCA Deutag also confirms that non-executive chairman, Tim Summers, has stepped down following successful conclusion of the restructuring and has been replaced by Alex Knaster from Pamplona Capital. Non-executive directors Chris Hughes and Bob Ellis, appointed at the commencement of the refinancing also step down.

John Halsted of Pamplona commented, "We would like to thank Tim Summers, Chris Hughes and Bob Ellis for their leadership and guidance in steering the Company through a prolonged and intensive refinancing period. The Company has emerged with a significantly strengthened balance sheet, growth capital in the business and an experienced and knowledgeable shareholder base, committed to assisting the Company grow and capitalise on the many opportunities in its core international markets. As shareholders we are very excited about the prospects of the Company in a strongly improving market sector."

Despite the tough economic and trading condition, 2010 was a year in which KCA Deutag delivered robust financial, operational and HSE performance. Compared to our international and US peer group, KCA Deutag mitigated the effects of economic and industry factors better than most, emerging from 2010 with:

• An improved contract backlog. In our platform drilling division almost every contract was extended by negotiation or competitive tender, securing a revenue backlog of more than $1.5 billion, with the major highlight being the award by AIOC in Azerbaijan of a six-rig, five-year plus options contract.
• Continued high utilization in our international land fleet with strategic awards in both northern and southern Iraq and increased activity in Algeria and Nigeria.
• Maintained and extended contracts for all three owned jack-ups.
• Major contract extensions and awards in our engineering division RDS, relating to the UK, Azerbaijan, Newfoundland, Australia and Brazil.
• Significant success in KCA Deutag sister Company Bentec, the specialist rig and drilling equipment manufacturer, with the successful introduction of it's top drive and six rigs currently under construction.
• Best ever company-wide HSE performance.
• Continuous improvement in our operating efficiency and equipment uptime.

Holger Temmen, CEO of KCA Deutag, commented, "We are pleased to have completed the refinancing of the Company and to have emerged with a strengthened balance sheet and debt position. Throughout this period, KCA Deutag's operational and financial performance remained very robust. This performance has been recognized in the many contract extensions and awards given by our clients and our shareholders and lenders also demonstrated their faith in our business plan by approving the build of five new land rigs during 2010 for key growth markets in Europe, Russia and MENA.

"KCA Deutag's strategic presence in the major international markets has allowed us to outperform the majority of our drilling peer group, especially those exposed to the US domestic market. The opportunities developing in markets such as Russia, Iraq, Algeria and the emerging unconventional oil and gas plays in Europe leave me very optimistic about our medium term growth prospects.

"I would like to thank all staff in KCA Deutag, our clients and suppliers for their patience and understanding as we have progressed through the refinancing process. I am delighted that we can now completely focus on delivering the business plan and continuing to meet and exceed our clients' expectations for safe, effective and trouble- free operations."

Mulva Reveals 3 Keys to ConocoPhillips' Success

Mulva Reveals 3 Keys to ConocoPhillips' Success

Friday, March 25, 2011

by  Jaime Kammerzell

Rigzone Staff

James Mulva, president and CEO of ConocoPhillips, believes that saving money, cutting capital spending, and maintaining a level of transparency in his business decisions is the key to the company's success. In 1999, when Mulva became CEO, ConocoPhillips' combined assets were about $75 billion. By the end of Q1 2004, he had secured an income of $1.9 billion for the company and brought its debt down to 32% of its capital. More recently, ConocoPhillips reported Q4 2010 earnings of $2.0 billion, compared with Q4 2009 earnings of $1.3 billion.

Mulva, whose total compensation in 2010 was $11.26 million, never dreamed of working in the oil and gas industry while growing up in central Wisconsin. He attended the University of Texas and earned his BBA in finance in 1968 and an MBA in business administration in 1969. After graduation he entered the US Navy and was stationed on Bahrain Island. That's where he learned about the oil and gas industry. "The production side of the business as well as the financial aspect intrigued me," Mulva said. When he completed his tour of duty in 1973, he searched for a financial job in the oil and gas industry.

Mulva joined Phillips Petroleum Co. in the treasury department later that year. He was soon promoted to assistant treasurer and manager of foreign exchange and investment. In 1980, Mulva was then promoted to vice president and treasurer of Europe/Africa - a position he held for four years. With a strong financial background, Mulva analyzed investments and new technologies with an eye on the bottom line. His assessments allowed him to predict the long-term financial impact of each proposal. His understanding of the global market also helped him to build up the company's long-term security and assets. This strategy paid off for Mulva as well as Phillips as he helped the company meet and exceed corporate goals through his many positions with the company.

Going Green

Mulva was known to be a hard worker and had a knack for finding profitable solutions for Phillips. While CEO at Phillips, Mulva took a hit to his reputation when a K-resin chemical tank exploded in March 2000 at a Phillips Petroleum plant in Pasadena, TX. The blast killed Rodney Gott, a 45-year-old supervisor, as well as seriously burning four employees and injuring 65 others. The fire produced a huge plume of black smoke that spread over the Houston Ship Channel as well as neighboring residential areas. The tank was out of service for cleaning at the time of the explosion, and had no pressure or temperature gauges to alert the workers to the danger. This blast was the third in 11 years at that particular plant.

Phillips paid a hefty fine to the Occupational Safety and Health Administration (OSHA) for safety violations. The explosion motivated Mulva to ramp up plant safety inspections, provide safety training for his employees, and implement stricter safety measures.

After that incident, Mulva focused Phillips' efforts on reducing its environmental impact while continuing a successful exploration and production program. Mulva worked to position Phillips as a leader in finding cleaner energy sources, and later he saw clean energy as the key to ConocoPhillips' long-term growth.

ConocoPhillips, under Mulva's leadership, believes that a secure energy future depends on utilizing a diverse mix of energy sources that are reliable, available, and environmentally responsible. This includes traditional hydrocarbon products, as well as alternative and renewable sources made available through improved technology. When considering future energy solutions, ConocoPhillips examines all the factors that impact energy -its use, cost and availability. Though new technology promises to change the future nature of energy supply, the company acknowledges that there still is work to be done to ensure minimal impact to the environment from the production, storage, and transportation of these energy sources.

Mergers and Acquisitions

Mulva knew that clean energy alone would not propel Phillips into the big leagues with supermajors ExxonMobil and ChevronTexaco. Thus, he set out to make the company more competitive through increased E&P and through mergers and acquisitions.

Phillips acquired the Alaskan production assets of the Atlantic Richfield Company (ARCO) in March 2000 for $7 billion. At the time of the announcement, Mulva said, "The acquisition of Arco's Alaskan assets represents a significant step in our strategy of growing our exploration and production business. We gain a substantial position in the two largest fields in North America, immediately form a new production center, and become a major merchant supplier of crude oil to the West Coast."

In July 2000, Phillips and Chevron merged their chemical and plastic operations to create the Chevron Phillips Chemical Company. A board of directors governs this 50/50 venture, which is composed of two members from each parent company. The company name was determined in a coin toss to settle which parent company name would be first.

Today, Chevron Phillips Chemical is one of the world's top producers of olefins and polyolefins and a leading supplier of aromatics, alpha olefins, styrenics, specialty chemicals, piping, and proprietary plastics. The company produces chemical products that are essential to manufacturing over 70,000 consumer and industrial products.

In February 2001, Phillips announced that it would acquire the Tosco Corporation, an oil refiner and retailer that marketed gasoline under the 76 and Circle K brands, for $7 billion in stock.

The transaction created the nation's second-largest refiner and fifth-largest gasoline retailer. While many other large oil companies were disposing of their refineries, Phillips under Mulva's leadership, in adding them to its oil exploration and production, made a move to become a more fully integrated oil company.

However, the most notable merger under Mulva's leadership occurred in August 2002, when Phillips merged with Conoco. In this $15.1 billion deal, ConocoPhillips became the largest refiner and the third largest energy company in the US behind Exxon Mobil Corp. and ChevronTexaco Corp. The merged company was worth about $35 billion.

At the time of the merger, ConocoPhillips controlled or had stakes in 19 refineries worldwide with a capacity of 2.6 MMb/d and joint oil reserves were about 8.7 Bbbl.

In comparison, at year-end 2009, ConocoPhillips was the second-largest refiner in the US, with crude oil processing capacity of approximately 2.0 MMb/d, and the world's fourth-largest nongovernment-controlled refiner, with crude oil processing capacity of nearly 2.7 MMb/d globally. Its total oil reserves were 8.4 Bboe and total worldwide production was 1854 Mboe/d.

http://www.conocophillips.com/EN/Pages/index.aspx

Northern Oil and Gas, Inc. Announces Upcoming Conference Presentations

Northern Oil and Gas, Inc. Announces Upcoming Conference Presentations

Tuesday, 22 March 2011 06:50 PR Newswire

Northern Oil and Gas, Inc. (NYSE/AMEX: NOG) ("Northern Oil") today announced that it has been selected to present at two forthcoming energy...

WAYZATA, Minn., March 22, 2011 /PRNewswire/ -- Northern Oil and Gas, Inc. (NYSE/AMEX: NOG) ("Northern Oil") today announced that it has been selected to present at two forthcoming energy conferences.  Management of Northern Oil will present at the Howard Weil Energy Conference March 27th - 31st, 2011, in New Orleans, LA and at the Independent Petroleum Association of America's Oil and Gas Investment Symposium in New York, NY April 11th – 13th, 2011.

Michael Reger, Chief Executive Officer, is scheduled to present at the Howard Weil Energy Conference in New Orleans, LA on Tuesday, March 29th at 11:35 AM Eastern.

Ryan Gilbertson, President, is scheduled to present at the Independent Petroleum Association of America's Oil and Gas Investment Symposium in New York, NY on Tuesday, April 12th at 4:35 PM Eastern.

ABOUT NORTHERN OIL AND GAS, INC.

Northern Oil and Gas, Inc. is an exploration and production company based in Wayzata, Minnesota. Northern Oil's core area of focus is the Williston Basin Bakken and Three Forks trend in North Dakota and Montana.

More information about Northern Oil and Gas, Inc. can be found at http://www.northernoil.com/ or by calling investor relations at 952-476-9800.

SAFE HARBOR

This press release contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act").  All statements other than statements of historical facts included in this report regarding our financial position, business strategy, plans and objectives of management for future operations, industry conditions, and indebtedness covenant compliance are forward-looking statements.  When used in this report, forward-looking statements are generally accompanied by terms or phrases such as "estimate," "project," "predict," "believe," "expect," "anticipate," "target," "plan," "intend," "seek," "goal," "will," "should," "may" or other words and similar expressions that convey the uncertainty of future events or outcomes.  Items contemplating or making assumptions about actual or potential future sales, capital expenditures, market size, collaborations, and trends or operating results also constitute such forward-looking statements.

Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond our Company's control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: oil and gas prices, our ability to raise capital, general economic or industry conditions nationally and/or in the communities in which our Company conducts business, changes in the interest rate environment, legislation or regulatory requirements, conditions of the securities markets, our ability to raise capital, changes in accounting principles, policies or guidelines, financial or political instability, acts of war or terrorism, other economic, competitive, governmental, regulatory and technical factors affecting our Company's operations, products, services and prices. 

We have based these forward-looking statements on our current expectations and assumptions about future events.  While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control.

CONTACT:

Investor Relations

Erik Nerhus

952-476-9800

Link

http://www.ordons.com/