Aminex to Withdraw from Tanzania PSA

- Aminex to Withdraw from Tanzania PSA

Tuesday, September 13, 2011
Aminex plc

Aminex and Key Petroleum Ltd. ('Key') currently participate 50-50 in the West Songo-Songo Production Sharing Agreement ('PSA') in Tanzania, with Key as the operating partner. Progress has been slow to date and the work program is behind schedule, creating uncertainty about the future of the PSA. As a consequence, Aminex has agreed with Key that it will withdraw from the PSA, transferring its 50% interest to Key which will then hold 100%. In exchange, Key will relinquish its 5% interest in the new 'Nyuni Area PSA' in favor of Aminex. The West Songo-Songo transfer is being submitted to the Tanzanian authorities for formal approval but the practical aspects of the transfer will be implemented immediately.

The 'Nyuni Area PSA' will replace the existing 'Nyuni-East Songo-Songo PSA', operated by Aminex's wholly-owned subsidiary, Ndovu Resources Ltd., which is now time-expired and where work obligations have been fulfilled, with two gas discoveries recorded. The new Nyuni Area PSA has already been initialed by both Aminex and the Tanzanian authorities, as previously announced, and will be formally executed by the Minister of Energy and Minerals at an appropriate time. The Nyuni Area PSA will be materially larger than the earlier one and will comprise 4 additional blocks directly to the north, as well as the area covered by the existing Nyuni-East Songo-Songo PSA. Key will retain a 5% working interest in the Kiliwani North gas development license, which was carved out from the Nyuni PSA earlier this year. Interest holdings will now be as follows:

• Nyuni Area PSA (1,690 km², including 338km² making up the 4 additional blocks)
  • Ndovu Resources (Aminex) 70%
  • RAK Gas 25%
  • Bounty Oil 5%
• Kiliwani North Development License (85 km²)
  • Ndovu Resources (Aminex) 65%
  • RAK Gas 25%
  • Bounty Oil 5%
  • Key Petroleum 5%

Aminex considers that the new acreage included in the Nyuni Area PSA will provide greater scope for establishing a new play fairway on the continental shelf which could share similarities to some of the recent deep water drilling successes.

Aminex Chairman Brian Hall commented, "Although West Songo-Songo is potentially promising acreage, we believe that our strategy of increasing our interest and acreage in the Nyuni PSA area together with our recently announced increase in our percentage interest in the Ruvuma Basin will be more effective and valuable than our existing portfolio mix."

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Cabot: Minimal Impact on Pa. Operations from Flooding

- Cabot: Minimal Impact on Pa. Operations from Flooding

Friday, September 09, 2011
Cabot Oil & Gas

Cabot Oil & Gas Corporation, in response to a significant volume of inquiries, today announced that its drilling operations in Susquehanna County, Pennsylvania have experienced only minimal disruptions as a result of the flooding. The Company elected, out of an abundance of caution, to temporarily shut-down its drilling operations last evening to insure the safety of its workers and to allow for individuals to take care of their personal needs. At the same time it reached out to the local emergency providers to offer assistance.

"Clearly the most important thing at this time is to help the community begin the recovery process and immediately help all of the residents who have been impacted," said Dan O. Dinges, Chairman, President and Chief Executive Officer. "To that end, we have committed both monetary and equipment resources to the area and are working with our service providers to engage their assistance as well."

Dinges added, "Least important at the moment, but in response to the questions being asked, the Company has restarted its operations and has continued to produce its wells at pre-flooding levels throughout this crisis, with no anticipated disruptions expected. Because of our closed loop drilling systems and frac staging that is contained in closed containers, the environmental impact to the drilling operation is significantly mitigated."

Cabot Oil & Gas Corporation, headquartered in Houston, Texas is a leading independent natural gas producer with its entire resource base located in the continental United States.

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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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Tethys Posts Initial Logging Results from Kalypso Well

- Tethys Posts Initial Logging Results from Kalypso Well

Wednesday, September 07, 2011
Tethys Petroleum Ltd.

Tethys announced the initial logging results of its KBD01 (Kalypso) exploration well drilled in the Kul-Bas block some 50 km north west of the Doris oil discovery.

The well has now reached total depth in what is initially interpreted to be rocks of Carboniferous age. Electric logs just run over the deeper section indicate more than 100 meters of gross potential hydrocarbon bearing zones in what is interpreted to be shelf limestones of Carboniferous age. Hydrocarbon shows were also noted whilst drilling. This is in addition to the hydrocarbon indications noted on logs and drill data in the overlying Jurassic section (logged prior to drilling this deeper hole section).

7-inch liner is now about to be run after which a comprehensive testing program on both the Carboniferous and Jurassic intervals is planned following agreement and approvals from the appropriate Kazakh authorities. Obtaining these approvals could take some 2 months (with mobilization of testing equipment to follow thereafter), as this is an exploration well and, unlike appraisal wells, no estimated testing program could be submitted prior to finishing the well.

The nearest field which produces from similar Carboniferous shelf limestones is the Alibekmola field, some 250km to the north in the pre-Caspian Basin Subsalt. It is likely that the limestone interval will require acidisation and possible fracture stimulation to achieve optimal production performance (as do other similar fields). This will be evaluated as part of the test program planning.

Meanwhile, elsewhere in Kazakhstan the AKD06 Doris oil appraisal well is drilling ahead at a depth of 1,755 meters towards the Aptian sandstone target.

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Transocean Bid Gets Green Light from Aker Investors

- Transocean Bid Gets Green Light from Aker Investors

Friday, August 26, 2011
Transocean Ltd.

Transocean Services, a wholly owned subsidiary of Transocean, after receiving clearance by the Oslo Stock Exchange, launched its all cash voluntary offer (the "Offer") for 100 percent of the shares of Aker Drilling ASA ("Aker Drilling") for NOK 26.50 per share. The Offer has been made on the same terms as the previously announced voluntary offer, except that it has been made on an unconditional basis and with settlement guaranteed by a financial institution.

The Offer period begins August 26, 2011 and ends on September 23, 2011 at 11:30 a.m. (EDT), 5:30 p.m. (CEST). To date, Transocean and its affiliates have acquired 13.7% of the shares and votes in Aker Drilling, and shareholders representing 59.5% of the total share capital of Aker Drilling have given their unconditional and irrevocable pre-acceptances to the Offer.

The Offer document has been reviewed and approved by the Oslo Stock Exchange in accordance with Section 6-14 of the Norwegian Securities Trading Act. The document will also be sent to the shareholders of Aker Drilling, subject to restrictions under applicable securities laws.

The Offer and the distribution of this announcement and other information in connection with the Offer may be restricted by law in certain jurisdictions. Transocean assumes no responsibility in the event there is a violation by any person of such restrictions. Persons into whose possession this announcement or such other information should come are required to inform themselves about and to observe any such restrictions.

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Ithaca Finalizes Acquisition of Cook Stake from Hess

- Ithaca Finalizes Acquisition of Cook Stake from Hess

Friday, August 26, 2011
Ithaca Energy Inc.

Ithaca announced that further to announcements on April 4, 2011 and May 16, 2011, the Company has completed the transaction to acquire a 28.46% non-operated interest in the Cook oil field ("Cook") from Hess Limited ("Hess"). At completion of the transaction, Ithaca paid an adjusted cash consideration of US $57 million and transferred to Hess a 10% interest in three Southern North Sea exploration blocks. The transaction has been funded from the Company's existing cash reserves.

At completion, Ithaca is also entitled to an oil inventory of approximately 185,000 barrels. This inventory is anticipated to be lifted and sold in Q4 2011. The adjusted consideration does not reflect this anticipated cash receipt.

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Beach to Construct New Flowline from Cooper Basin Western Flank

- Beach to Construct New Flowline from Cooper Basin Western Flank

Thursday, August 25, 2011
Beach Energy Ltd.

Beach has signed an agreement with Senex to tie-in the Growler Field (Beach 40%) to the Lycium oil field. It has also agreed with Senex to construct a trunkline from Lycium to the Moomba facility, however, the tie-in of this section remains subject to approval from the South Australian Cooper Basin (SACB) Joint Venture (~Santos Ltd 67%, Beach 20%, Origin Ltd 13%).

It is anticipated that the flowline from the Growler Field will be constructed in two main sections. The first section, directly from the Growler Field to the Lycium oil field, will consist of a six inch flowline with an initial capacity of approximately 8,000 barrels of oil per day. The equity interests for this section of flowline will be Beach 40% and Senex 60%.

Pending approval from the SACB Joint Venture, the main trunkline will service the whole of Beach's operated and non-operated Western Flank acreage and is planned to run between Lycium and the Moomba facility. The capacity of this eight inch trunkline is expected to be in the order of 15,000 barrels of oil per day. The equity interests for this section will be Beach 60% and Senex 40%.

Beach will undertake both the construction and operatorship of the flowlines, with the total cost of approximately $40 million to be effectively shared between Beach and Senex.

These flowlines will provide Beach with access to the Growler Field during times of flooding in much the same way it has for Beach's PEL 92 acreage during the recent flooding events. The second trunkline will also provide for increased production flows from Beach's operated PEL 91 and PEL 92 acreage as a result of recent development, appraisal and exploration success in the area.

The six well approved exploration program set down for PEL 104 and PEL 111 is expected to commence in October 2011, when flood waters are forecast to recede to levels where access can be restored. A number of Birkhead targets have been identified by the Operator which has had an exploration drilling success rate of 80% in the acreage to date.

The tenure of the Beach Operated Western Flank PEL's 91 and 92 have been granted a twelve month extension by PIRSA in acknowledgment that flooding has delayed exploration in the area. It is expected that the flowlines will be commissioned around June 2012.

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Estimates for Greenhouse Emissions from Shale Production Overstated -Study

- Estimates for Greenhouse Emissions from Shale Production Overstated -Study

Wednesday, August 24, 2011
IHS CERA

Estimates used by the United States Environmental Protection Agency (EPA) and others for greenhouse gas emissions from upstream shale gas production are likely significantly overstated, according to a new report by IHS Cambridge Energy Research Associates (IHS CERA). The estimates are based on assumptions that do not reflect current industry practice and should be reevaluated, it says.

"Methane emissions have become a very important and controversial issue given their potency as a greenhouse gas," said Mary Barcella, IHS CERA director of North American natural gas. "Unfortunately, such emissions are not being measured. Estimates are being used that are not supported by data, do not reflect current industry practice and would be unreliable to use as a base for decision-making."

The report cites as one example the EPA's 2010 revised estimates of methane emissions during well completion—the period after the well has been drilled but before it is placed into production. The current EPA methodology for estimating methane emitted during this phase was based on a small sample of wells and primarily measured methane that was captured rather than released into the atmosphere, the report says.

The EPA estimates were based on two workshop presentations describing methane captured during "green completions"—operations designed to capture as much methane as possible. The EPA assumed that (1) similar levels of methane were produced at every other well in the United States and (2) that those emissions went completely uncaptured. Such assumptions do not conform to current industry practices, the report says.

"The assumption that all methane recovered from these sample wells would otherwise have been flared or vented is questionable at best, given that common industry practice is to capture gas for sale as soon as it is technically feasible," said Surya Rajan, IHS CERA director. "Gas that cannot be sold is generally flared rather than vented for safety reasons. If the methane emissions at wells were as high as some methodologies assume, you would have extremely hazardous conditions at the well site that neither regulators nor industry would permit."

Another key mis-characterization found in the EPA estimates and other recent reports, such as a study led by Cornell University professor Robert W. Howarth, is the assumption that wells in flowback contain methane in quantities equal to their post-completion daily production, the report says. This assumption results in a significant overestimation of methane emissions. (The flowback phase is the phase of production when fluids injected into the well flow back out ahead of the tapped gas.)

The IHS CERA report notes that data on unconventional gas well GHG emissions is currently lacking due to the fact that they are not adequately measured. More reliable data is needed in order to produce estimates with any degree of certainty.

The report says that the most productive result of additional regulations proposed by the EPA in July could be better documentation of actual GHG emissions which would provide the accurate measurement that is needed. Some of the other proposed regulations, such as requiring green completions and flaring of any produced gas that is not suitable for sale, are already common practice in the industry, it says.

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Audit Slams Ca. Lands Panel for Failing to Collect Millions from Leases

- Audit Slams Ca. Lands Panel for Failing to Collect Millions from Leases

Wednesday, August 24, 2011
The Sacramento Bee, Calif.
by David Siders

The state is mismanaging oil and other leases on public land, failing for years to collect rent from some companies and costing California millions of dollars in lost revenue, the state auditor said Tuesday.

State Auditor Elaine Howle said in a blistering report that the State Lands Commission could have generated as much as $8.2 million in revenue from just a sample of the leases her office reviewed.

The commission "is not effectively managing its leases, and as a result it has failed to collect or generate millions of dollars in potential revenue for the state's General Fund," the report said.

Of the commission's nearly 1,000 revenue-generating leases, the report found 130 were past due on rent. In one case, Howle's office said, a marine services company remained on public land for more than 20 years without paying its $10,170 annual rent. The company itself, the report said, subleased the land and collected rent from its tenant.

Howle accused the commission of failing to adequately track the status of its leases, sometimes losing track of them. Her report said the commission failed to appraise its land as often as lease agreements allow and failed to quickly renew expired leases, missing opportunities to increase rent.

The State Lands Commission manages about 9 million acres of land granted to California by the federal government when it became a state, including tidelands and submerged lands on California's coast and rivers. Of its revenue-generating leases, the commission manages about 85 oil and gas, geothermal and mineral leases, and about 900 agricultural, commercial and other leases, according to the audit report.

The three-member commission consists of Lt. Gov. Gavin Newsom, Controller John Chiang and Finance Director Ana Matosantos.

Commission Executive Director Curtis Fossum blamed staffing reductions. He agreed with many of the auditor's recommendations but said in a written response that the commission has endured severe staffing cuts, from 242 general fund positions in 1991 to about 63.

He called the commission staff "a relatively small, hardworking and professional group dedicated to acting in the state's best interest."

Fossum also criticized the auditor for selecting to review in depth a 35-lease sample he said is not representative.

"What is clear is that this was not a representative sample of State Lands Commission leases, but rather a subjectively selected list of leases chosen to highlight specific problem areas," Fossum wrote, adding that the report relies on examples that "distort the bigger picture of commission successes."

AT A GLANCE

State Auditor Elaine Howle said that of the State Lands Commission's nearly 1,000 revenue-generating leases, an audit found 130 were past due on rent. In one case a company remained on public land for more than 20 years without paying its $10,170 annual rent, the report said.


Copyright (c) 2011 The Sacramento Bee (Sacramento, Calif.)

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Brazil's Petrobras Expects First Oil from Franco Field in 2015

- Brazil's Petrobras Expects First Oil from Franco Field in 2015

Tuesday, August 23, 2011
Dow Jones Newswires
RIO DE JANEIRO
by Jeff Fick

Brazilian state-run energy giant Petroleo Brasileiro, or Petrobras, expects to produce its first oil from the Franco field in 2015, a key executive said Tuesday.

Franco was one of the areas obtained from Brazil's government as part of last year's capitalization of the company, which included a $70 billion share offer.

A floating production, storage and offloading vessel, or FPSO, will be installed at the field in 2015, said Jose Formigli, Petrobras's executive manager for pre-salt exploration and production.

"We've already concluded seismic [imaging] of the area where the first production system will be installed," Formigli said.

Franco is expected to produce an average of 13,000 barrels a day in 2015.

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

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SOCO, Partners Tame First Flow from Te Giac Trang Field

- SOCO, Partners Tame First Flow from Te Giac Trang Field

Monday, August 22, 2011
SOCO International plc

SOCO announced the first flow of crude oil and wet gas from the Te Giac Trang Field ('TGT'), which occurred at 0655 local time in Vietnam today. The block is operated on behalf of SOCO and its Partners, PetroVietnam and PTT Exploration and Production Public Company Limited, by the Hoang Long Joint Operating Company ('HLJOC'), which was established in 1999.

The TGT (White Rhineoceros) Field, discovered in August 2005, was approved for the initial development by the Government of Vietnam in September 2009. The development is comprised of a Floating, Production, Storage and Offloading vessel ('FPSO'), two Well Head Platforms (H1 and H4 areas), and a subsea pipeline system to transport hydrocarbons, gas export, gas lift and water for injection.

Crude oil from the TGT Field is transported via a subsea pipeline system to the FPSO 'Armada TGT 1', which has a name plate processing capacity of 55,000 barrels of oil per day ('BOPD'), where it is processed, stored and exported via tankers to regional oil refineries. Gas will be transported through a pipeline to the nearby Bach Ho Facilities for processing and transportation to shore via the existing pipeline infrastructure for further distribution to meet domestic demand. TGT oil output is expected to plateau at approximately 55,000 BOPD and gas production will be approximately 30 million cubic feet per day.

The development of the TGT Field marks a successful investment co-operation milestone in the Vietnam oil and gas industry with the delivery of production within two years of approval.

In addition to starting first production from the TGT Field H1 area, HLJOC continues drilling production wells in the H4 area of the TGT Field and fabricating Platform Topsides in preparation for its petroleum production start-up in August 2012.

Ed Story, President and Chief Executive of SOCO, commented, "We are very pleased to announce first oil from the TGT Field in Vietnam, a key milestone for the Company demonstrating our ability to see our exploration successes through to the production stage. The project always had an ambitious delivery target and we are pleased to have achieved this.

"Our strong partnerships have allowed this significant event at the TGT Field to be realized and we now look forward to targeting further exploration and development success, both in Vietnam and in Africa."

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Rockwell Awarded $4 Million Order from Grizzly Oil Sands

- Rockwell Awarded $4 Million Order from Grizzly Oil Sands



Aug 16, 2011

Grizzly Oil Sands, and independent oil sands company, has awarded a $4 million order to Rockwell (NYSE:ROK) and its Global Solutions team.

Global Solutions will use the company's PlantPax process automation system to help Grizzly produce more than 5,000 barrels of oil per day at the first phase of its Algar Lake Project.

The solution supports steam-assisted gravity drainage, an enhanced oil recovery technology for producing heavy crude oil and bitumen.

Rockwell Automation is currently below its 50-day moving average (MA) of $77.93 and below its 200-day MA of $79.74.

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Shell: Gannet Alpha Pipe Leaked in Two Places, From Same Source

- Shell: Gannet Alpha Pipe Leaked in Two Places, From Same Source

Tuesday, August 16, 2011
Dow Jones Newswires
LONDON
by Alexis Flynn

Two leaks have occurred on an undersea pipeline at Shell's Gannet Alpha platform in recent days, the Anglo-Dutch major confirmed Tuesday, but said it believed both come from the same initial source.

"The leak source remains the same. The initial release path was stopped on Thursday, however the oil found a second pathway to the sea," Shell said in a statement.

"We believe now that the flow is coming from a relief valve adjacent to the original leak and from the same source," said Shell. "Once we've confirmed this we will then develop a series of mitigation options to stop this leak. There is no new leak."

Shell said Monday it estimates 216 metric tons, or 1,300 barrels, of oil has already spilled into the sea. This would make the spill the U.K.'s largest since 2000.

Earlier Tuesday, a senior Shell executive was cited by local media as saying a second leak is continuing to spill crude into the North Sea after the main leak discovered last Wednesday was effectively stemmed.

Shell said the second leak took longer to find because of its awkward position "amid complex subsea infrastructure."

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

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Chesapeake to Start Deducting Some Costs from Royalty Checks

- Chesapeake to Start Deducting Some Costs from Royalty Checks

Thursday, August 11, 2011
Fort Worth Star-Telegram, Texas
by Jack Z. Smith

About 20,000 royalty owners who have Barnett Shale natural gas leases with Chesapeake Energy will likely see their royalty checks slashed by roughly 25 percent after the company deducts expenses associated with post-production, such as gas gathering, compression and transportation.

The actual percentage and dollar amount decreases in royalty checks will vary monthly based on natural gas prices, post-production costs and output from wells.

Affected royalty owners were notified of the new company policy in recent letters. The changes took effect with July royalty checks that were based on May production, according to Julie Wilson, Chesapeake vice president for urban development and the top executive in its Fort Worth regional office.

Chesapeake is the No. 2 producer in the natural gas-rich Barnett Shale, which underlies more than 20 North Texas counties.

Henry Hood, senior vice president and general counsel for Oklahoma City-based Chesapeake, said post-production costs run from 70 cents to $1 per 1,000 cubic feet of gas produced. Natural gas prices have recently been around $4 per 1,000 cubic feet.

At that price, royalty checks will be "about 25 percent lower," Hood said.

Wilson said about 75 percent of Barnett Shale royalty owners with Chesapeake leases received letters advising them of the change.

The royalty owners whose monthly checks won't be affected are those who have lease provisions precluding assessments for post-production costs, Hood said.

As a general rule, large property owners who hired attorneys to help them negotiate leases and residents who are members of neighborhood associations that negotiated carefully crafted leases appear much more likely to have provisions precluding those charges.

Roger Venables, assistant director of community development and planning for the city of Arlington, said it has lease provisions barring Chesapeake from assessing post-production costs.

Representatives for the city of Fort Worth, Tarrant County and Dallas/Fort Worth Airport were not immediately able to confirm late Wednesday whether they have such provisions.

Hood said Chesapeake did an exhaustive internal audit of all its Barnett Shale leases to determine which could be assessed the post-production costs.

The audit took about six months, he said.

The post-production costs are routinely assessed against royalty owners in Texas unless lease provisions prohibit it, he said.

Chesapeake said in its letter to royalty owners that they will not be retroactively assessed any charges for post-production costs that the company incurred before its policy change.

"Please be assured that we do not intend to recoup these charges on past production," the letter said. "However, effective with the July 2011 check, your payments will reflect those charges going forward."

Both in its letters to royalty owners and in an explanation of the new policy on its website, Chesapeake did not provide specific information about how much royalty owners' checks might be reduced as a result of the new policy.

Hood said the company's decision to begin assessing royalty owners for post-production costs was triggered by its agreement with Total, the French oil giant, which paid $2.25 billion for a 25 percent interest in Chesapeake's Barnett Shale operations.

Total was about to begin deducting post-production costs from royalty owners' checks based on its share of the Chesapeake wells' production, so Chesapeake also decided to begin assessing for the costs, Hood said.

Otherwise, payment to royalty owners would have required two separate checks, and "it didn't make any sense to have two different checks from two different companies," Hood said.

Copyright (c) 2011, Fort Worth Star-Telegram, Texas

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Reliance-BP Deal Gets OK from Indian Govt

- Reliance-BP Deal Gets OK from Indian Govt

Tuesday, August 09, 2011
Reliance Industries Ltd.

Reliance Industries Limited has received the Government of India approval for its transformational deal with BP. Reliance Industries is grateful to the Government of India for the approval, which will result in the largest foreign investment in the domestic hydrocarbon sector.

BP will take 30% stake in 21 oil & gas production sharing contracts that Reliance operates in India, including the producing KG D6 block. Following the approval, RIL and BP will work together to conclude the deal expeditiously.

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Commodity Corner: Oil Gets Boost from EIA, Bernanke

- Commodity Corner: Oil Gets Boost from EIA, Bernanke

Wednesday, July 13, 2011
Rigzone Staff
y Matthew V. Veazey

Oil futures received a boost Wednesday from the latest inventory data from the U.S. Energy Information Administration as well as testimony by Federal Reserve Chairman Ben Bernanke. The WTI benchmark on the New York Mercantile Exchange gained 62 cents to settle at $98.05 a barrel. Brent futures, meanwhile, rose $1.03 to end the day at $118.78 a barrel.

The EIA reported that U.S. commercial crude oil inventories declined sharply last week. According to the agency, oil stocks fell by 0.9 percent to 355.5 million barrels. The 3.1 million barrel week-on-week decline exceeded analysts' expectations. A panel of analysts surveyed by Platts, for instance, predicted a relatively modest 2.1 million-barrel draw.

Testifying before a U.S. House panel Wednesday, Bernanke hinted that the central bank may initiate a third attempt to stimulate the economy by printing more money to buy Treasury bonds. This "quantitative easing" monetary policy approach is designed to improve liquidity in the economy by enticing banks to make more loans to businesses and consumers. A third round of quantitative easing, or "QE3," would be bullish for oil because the Fed would weaken the value of the U.S. dollar by making money more widely available to banks. For investors holding currencies other than the greenback, dollar-denominated crude oil would become a better value.

The WTI peaked at $99.21 and bottomed out at $96.53 while Brent futures fluctuated from $117.01 to $119.50.

Front-month natural gas gained seven cents to settle at $4.40 per thousand cubic feet. Sizzling temperatures extending from the Midwest to the East Coast, with more to come beginning this weekend after a brief respite, have boosted cooling demand.

The intraday range for natural gas during midweek trading was $4.31 to $4.42.

Gasoline futures rose by a nickel to end the day at $3.15 a gallon. The commodity traded within a range from $3.08 to $3.175.

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BP Evacuates Personnel from Valhall Platform after Fire Erupts

- BP Evacuates Personnel from Valhall Platform after Fire Erupts

Wednesday, July 13, 2011
Rigzone Staff
by Robin Dupre

BP has evacuated personnel from its Valhall oil platform in the Norwegian sector of the North Sea after a fire erupted, stated a Reuters report.

The fire started in a compressor on the production platform in the oil field on Wednesday.

"No persons are injured and no one is missing," BP spokesman Jan Erik Geirmo told state broadcaster NRK. "We see this as a serious incident."

The company closed the field's production until further notice.

The Valhall oil field lies in the Norwegian North Sea on Blocks 2/8 and 2/11 in 230 feet (70 meters) of water. Hess currently owns 64% of the Valhall field, while BP holds the remaining 36%.

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Eagle Oil Receives Initial Payment from Questus

- Eagle Oil Receives Initial Payment from Questus

Wednesday, July 06, 2011
Eagle Oil Holding Co., Inc.

Eagle Oil has received an initial payment from Questus under the Farmout Agreement between the Company and Questus.

Pursuant to the Farmout Agreement, Questus will now begin the reconditioning of an initial group of 15 oil wells at the Company's East Texas field. In addition, Questus will also service the compliance requirements of the Texas Rail Road Commission.

The Questus Agreement represents the major part of the Company's new strategy to capitalize on its oil assets through outsourcing the reconditioning of its oil well and restoring pumping operations with no additional capital investment by the Company. The Questus Agreement will potentially cover up to 120 wells. The Company is also waiting for work to commence under farmout agreements with two additional parties for up to 20 additional wells not covered under the Questus Agreement.

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Eni Flows First Oil from GOM Appaloosa Field

- Eni Flows First Oil from GOM Appaloosa Field

Wednesday, July 06, 2011
Eni S.p.A.

Eni has started oil production from the Appaloosa field, located in the US Gulf of Mexico deepwater, 60 miles offshore the Louisiana coast southwest of New Orleans, in 2500 feet (approximately 760 meters) of water depth.

The producing well is located within the MC 459 Federal Unit (comprising blocks MC 459, 460 and portions of MC 503 and 504). Eni holds a 100% working interest in the field.

Appaloosa production commenced on June 21, 2011 through a subsea development and a twenty-mile long flow line tied back to the Corral Platform (operated by Eni). The well is presently flowing at a rate of approximately 7,000 barrels of oil equivalent per day. This is the second Eni field producing on the Corral Platform, which in aggregate is now processing 46,600 gross barrels of oil equivalent per day (33,000 net to Eni).

This development, the second start-up this year for Eni in the US following the Nikaitchuq field start up in Alaska, further strengthens Eni's role as an operator and enhances Eni's position as one of the top producers in the Gulf of Mexico.

In the US, Eni owns lease interests in 333 blocks in the Gulf of Mexico and in 411 leases in the Barnett gas shales onshore Texas, in partnership with Quicksilver. In addition, Eni owns interests in 140 leases in Alaska, between offshore and the North Slope, where it is currently operating the Nikaitchuq oil project.

Eni's total daily net production in the US is in excess of 100,000 barrels of oil equivalent (60% of which is operated).

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Songa Snatches New Semisub Gig from Statoil

- Songa Snatches New Semisub Gig from Statoil

Tuesday, July 05, 2011
Songa Offshore SE

Songa Offshore's 100% owned subsidiary, Songa Rig AS, has received and accepted a Letter of Award (LOA) from Statoil for two new build "Cat-D" semisubmersibles with firm terms of 8 years each, and options that could extend this period to 20 years. The firm part of the contract has an aggregated revenue value of approximately USD 2.5 Billion, inclusive of mobilization, with a higher contract value upon program commencement due to escalation provisions taking effect from 2011. Statoil has awarded the contract for the two new build Cat D rigs on behalf of the participants in the Troll-license.

Statoil has an option to award contracts for two additional rigs to Songa.

Mobilization of the units to Statoil will take place in direct continuation of the rigs' delivery from Daewoo Shipbuilding & Marine Engineering Co., Ltd (DSME) in 1Q and 3Q 2014. The fixed price, inclusive of yard's project management and commissioning, is USD 565 million per unit with 20/80 payment terms staggered by delivery schedule. The construction cost is expected to be funded from a combination of ongoing cash flows in addition to bank debt.

Asbjørn Vavik, CEO of Songa Offshore SE, said, "We are pleased to secure a contract for two new build high specification semisubmersibles for mid-water harsh environment in the Norwegian North Sea, which is consistent with our strategy of fleet renewal. We consider this an excellent opportunity to further strengthen our relationship with Statoil and manifest our position as a leading provider of offshore rigs for the Norwegian North Sea region. The contract value for the fixed 8 years contracts represents a significant increase in our backlog and earnings visibility."

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