Salamander Farms Into Gulf of Thailand Block

- Salamander Farms Into Gulf of Thailand Block

Friday, September 09, 2011
Salamander Energy

Salamander Energy plc announced that its fully owned subsidiary, Salamander Energy (Bualuang) Ltd has agreed to farm-in to Block G4/50 in the Gulf of Thailand, earning equity in the acreage from Mitsui Oil Exploration Co Ltd (“MOECO”). Following the completion of the transaction, Salamander will hold a 100% working interest in and operatorship of the acreage, while MOECO will retain certain commercial options in the case of a future discovery. Block G4/50 is located in the western Gulf of Thailand and surrounds the Company’s B8/38 licence that contains the Bualuang oil field and Bualuang East Terrace oil discovery. The farm-in is subject to Thai government and regulatory approval.

Key Points:

G4/50, at over 11,650 sq km, is one of the largest blocks of prospective acreage offshore Thailand. The block surrounds the Salamander-operated B8/38 licence in the western Gulf of Thailand

It consolidates Salamander’s acreage position in an area where it has extensive operating experience and geological knowledge

Major programme of 3D seismic in 2H 2011 will be followed by a multiple well exploration programme

As part of the farm-in agreement MOECO will retain certain commercial options in the case of a future discovery

Exploration expenditures incurred in G4/50 are deductible against tax payable on production revenue from the Bualuang oil field in B8/38

James Menzies, Chief Executive, Salamander Energy, said:

“We are delighted to secure a very substantial area of prospective acreage surrounding our Bualuang operations. Block G4/50 has been of growing interest to Salamander as our geological and subsurface understanding of the immediate play has developed. The region remains under-explored to date and we are looking forward to implementing our work programme, starting with an extensive 3D seismic campaign of over 2,900 sq. km on G4/50 in the fourth quarter of this year.”

Oil & Gas Post

Promote Your Page Too
LINK

Nostra Terra Places Nesbitt Well into Production

- Nostra Terra Places Nesbitt Well into Production

Thursday, August 25, 2011
Nostra Terra O&G Co. plc

Nostra Terra announced that the initial horizontal well in the Nesbitt Prospect Unit, located in the Woodlawn Field in Texas, has been completed. The production facilities have been built and the well has been put into production by New Century Exploration Inc.

Nostra Terra has a 3% working interest in the Nesbitt Prospect Unit, located in the Woodlawn Field in Texas, which is also operated by New Century Exploration, Inc.

The Company will provide an update on 30-day production figures in the future.

Matt Lofgran, Chief Executive Officer of Nostra Terra, commented, "This marks the second well we've put into production this month. We have additional projects funded and in various stages of development, and anticipate bringing on additional wells this year where we own a larger interest."

Oil & Gas Post

Promote Your Page Too
LINK

O&G Companies Monitoring Libya As Rebels Roll into Tripoli

- O&G Companies Monitoring Libya As Rebels Roll into Tripoli

Monday, August 22, 2011
Rigzone Staff
by Karen Boman

Oil and gas companies with operations in Libya are monitoring the country's political situation as rebels have taken control of most of Tripoli. A number of companies shut down operations and pulled workers from Libya earlier this year following the uprising against Moammar Qadhafi and resulting civil war.

German oil and gas operator Wintershall said in a statement, "We are monitoring the situation very closely. Our care is continually directed towards our Libyan staff, especially in Tripolis. We hope that the violent conflicts will end soon."

"For safety reasons Wintershall shut down and safely sealed off oil production operations in the desert at the end of February. No oil has been produced there since. Our international employees have been flown out of the country. The local staff who have remained in Libya are looking after the production facilities in the desert."

"At the moment it is too early to predict when, how and under what conditions the production in Libya might begin again. Starting up production could be done within several weeks under standard technical conditions. This of course depends on the state of the export infrastructure as well as a stable security situation in the country."

A spokesperson with Austria-based OMV said the company is monitoring the situation closely, but cannot confirm when its production of 33,000 BOE/d will resume.

When conditions allow, BP intends to resume plans to drill its first exploration well in Libya. The company originally planned to begin drilling in February of this year, but was forced to suspend operations due to the political situation in Libya.

Oil & Gas Post

Promote Your Page Too
LINK

IEA: Recession Could Put Oil Market Back Into Surplus

- IEA: Recession Could Put Oil Market Back Into Surplus

Wednesday, August 10, 2011
Dow Jones Newswires
LONDON
by James Herron

The International Energy Agency said Wednesday that a double-dip recession could reduce energy demand enough to push global oil markets into surplus next year, although it made only small adjustments to its current forecasts despite the deepening economic gloom.

This assessment indicates that the recent plunge in international oil prices, down more than 12% at Tuesday's close compared with the start of August, could have some way further to fall if developed economies do slip back into recession.

However, given the tremendous economic uncertainty and the current finely balanced state of the oil market, the IEA warned against pre-emptive action from oil producers to defend high prices. "There is no justification at the present time for OPEC to think of substantially adjusting production downwards," said David Fyfe, head of the Oil Industry and Markets Division at the IEA.

OPEC members have so far made a "concerted effort" to keep the market well supplied, the IEA said in its monthly oil market report. Its most important member, Saudi Arabia, raised production in July to its highest level in 30 years, as it filled the gap left by lost Libyan exports, it said.

If global growth this year and next falls below 3%--a level previously said by the International Monetary Fund to be indicative of recession--oil demand could be significantly lower than current forecasts, the IEA said. Such an outcome could push the world's need for crude from the Organization of Petroleum Exporting Countries below the group's current production, it said, implying a market in surplus.

The IEA made clear this was only one possible scenario and has only slightly trimmed its current 2011 demand growth estimates despite growing signs of trouble in major consuming countries the U.S. and China. However, it also warned that these forecasts were based on the most recent IMF global growth estimates of over 4% for this year and next, which, "may ultimately prove too optimistic," in the current economic climate.

The IEA noted "serious concerns" about the U.S. outlook given weak second quarter GDP and high fuel prices. In recent days, the IEA, the U.S. Energy Information Administration and OPEC have all slashed their demand forecasts for the U.S. The IEA now expects U.S. oil demand to fall by 200,000 barrels a day, or 1%, this year.

China, the world's second major engine of oil demand, is also looking weaker. "For the first time since March 2009, China's monthly apparent demand contracted on an annual basis, falling by 1.5% in June," the IEA said. "The decline coincided with evidence that China's economy is also slowing down and that higher end-user prices are weighing upon demand."

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

Oil & Gas Post

Promote Your Page Too
LINK

ConocoPhillips to Divide into Two Companies

- ConocoPhillips to Divide into Two Companies

Thursday, July 14, 2011
ConocoPhillips

Consistent with ConocoPhillips' previously stated strategies and focus on value creation for its shareholders, ConocoPhillips' board of directors has approved pursuing the separation of the company's Refining & Marketing and Exploration & Production businesses into two stand-alone, publicly traded corporations via a tax-free spin of the refining and marketing business to ConocoPhillips shareholders.

Following the completion of the proposed separation, ConocoPhillips will be a large and geographically diverse pure-play exploration and production company with strong returns and investment opportunities. The company's strategy of enhancing returns on capital through developing new resources, growing reserves and production per share, continuing the asset sale program and increasing shareholder distributions will not change.

As a separate company, the Refining and Marketing business of ConocoPhillips will be a leading pure-play independent refiner with a competitive and diverse set of assets. In addition to executing the company's initiatives to improve downstream returns through portfolio rationalization and other operating efficiencies, the new downstream company will be able to further position its portfolio by pursuing transactions and investments across the value chain. Under the contemplated plan, both companies will be well positioned with financial strength and flexibility and experienced management teams committed to continued value creation.

"Consistent with our strategy to create industry-leading shareholder value, we have concluded that two independent companies focused on their respective industries will be better positioned to pursue their individually focused business strategies," said Jim Mulva, chairman and chief executive officer. "Both companies will continue to benefit from the size and scale of their significant high-quality asset bases and free cash flow generation, allowing them to invest and create shareholder value in a changing environment."

The separation of the companies is expected to be completed in the first half of 2012. Upon completion of the separation, Mulva intends to retire. Until that point, he will continue to serve as ConocoPhillips' CEO and lead the separation efforts. The work to determine the detailed allocation of assets and liabilities, the management and governance of the companies, and the mechanics of completing the separation will begin immediately. Further details will be disclosed as they are determined over the next several months.

The contemplated separation of ConocoPhillips into two companies does not require a shareholder vote. The separation is subject to market conditions, customary regulatory approvals, the receipt of an affirmative IRS ruling, the execution of separation and intercompany agreements, and final board approval.

Oil & Gas Post

Promote Your Page Too
LINK

Fountain Quail Expands Ops into Eagle Ford Play

- Fountain Quail Expands Ops into Eagle Ford Play

Friday, June 24, 2011
Aqua-Pure Ventures Inc.

Fountain Quail, a wholly owned subsidiary of Aqua-Pure Ventures, announced it will expand operations into the Eagle Ford Shale in South Texas through a subcontracting agreement with NAC Services, LLC, an affiliate of Noise Attenuation Construction Services. Terms of the agreement were not released.

Fountain Quail will initially send two Nomad units to NAC's water purification treatment center in Kenedy, Texas, to recycle wastewater generated during the process of extracting oil and natural gas from the Eagle Ford Shale. The Company expects to employ approximately 15 workers at the new facility, which will have the capacity to recycle roughly 5,000 barrels of flowback and produced water per day. The agreement calls for an initial term of five years, with the option to renew for another five-year term.

"We have been eyeing the Eagle Ford for some time, looking for the right opportunity to expand into this emerging shale play," said Jake Halldorson, chief executive officer of Calgary-based Aqua-Pure Ventures, the premier recycler of industrial wastewater in North America. "We're pleased to have negotiated a mutually beneficial relationship with NAC, and we look forward to bringing our industry-leading recycling technologies to a region where preserving fresh water resources is paramount."

Fountain Quail has developed and refined its patented, industry-leading technology for recycling flowback and produced water over the past seven years in North Texas' Barnett Shale. During that time, the Company has recycled more than 14 million barrels of shale gas wastewater that would otherwise have been injected into disposal wells and permanently removed from the hydrological cycle. The company's technology is also currently being utilized in the Marcellus Shale.

"We contracted with Fountain Quail because they provide the most advanced, cost-effective recycling technology in the industry," said Mando Gutierrez of Noise Attenuation Construction (NAC), LLC of Weatherford, TX. "The need for their services in the Eagle Ford is already great, and expected to grow exponentially over the months ahead."

In addition to recycling wastewater into distilled or treated water for re-use in hydraulic fracturing operations, Fountain Quail and NAC will sell the concentrated brine and other byproducts of the recycling process.

Aqua-Pure is currently evaluating opportunities to expand into additional shale plays across North America later this year.

Oil & Gas Post

Promote Your Page Too

Petra Solar Turns Jersey City Into Solar Farm

- Petra Solar Turns Jersey City Into Solar Farm



Jun 16, 2011

Jersey City, New Jersey is now the home to Petra Solar's newest utility-scale solar farm. Petra Solar is using utility poles all across Jersey City and other urban and suburban areas of New Jersey. Five-foot by two-and-a-half foot solar panels are attached to the utility poles about 15 feet above the ground, tilted south towards the sun.

Each panel generates about 225 watts of power, adding to generation capacity and helping utilities meet renewable-power requirements. Petra Solar is a privately held clean-energy technology firm based in South Plainfield, N.J.

Petra Solar Chief executive Shihab Kuran stated, "It allows you to deploy quickly and cost effectively because you don't have to invest in land, you're not building substations or transformers."

Petra Solar is under contract with Public Service Enterprise Group Inc. (NYSE:PEG), and is about halfway through their $200 million commitment of providing 40 megawatts of solar power in six cities, spanning 300 rural and suburban communities. Petra has put up 95,000 panels, producing 20 megawatts, enough power for 3,250 homes.

The energy company says it takes roughly 30 minutes to install one panel on the utility pole. The panels feed electricity directly into the power lines.

Oil & Gas Post

Promote Your Page Too

El Paso to Spin-Off into Two Companies

- El Paso to Spin-Off into Two Companies

Tuesday, May 24, 2011
El Paso Corp.

El Paso Corp. announced that its Board of Directors has granted initial approval of a plan to separate the company into two publicly traded businesses by year end 2011.

Following the completion of the proposed spin-off, El Paso Corporation will be comprised of El Paso's Pipeline Group, its Midstream Group, and its general and limited partner interests in El Paso Pipeline Partners, L.P. (NYSE: EPB). It will be the premier pipeline company in North America, uniquely integrated in the major U.S. supply and market regions. With a planned 2012 annual dividend of $0.60 per share and a targeted low double-digit dividend growth rate, it is positioned to be a very attractive corporate yield investment. As a separate publicly traded company, El Paso's exploration & production business is well positioned to compete with the industry's leading independent producers. It has more than 10 years of low-risk, repeatable drilling inventory to fuel its future growth. Current positions in the Eagle Ford and Wolfcamp shales and the Altamont field are expected to provide a profitable and rapidly growing oil production profile.

"We believe that the creation of these two stand-alone public companies will result in significant and sustainable value creation," said Doug Foshee, chairman, president, and chief executive officer of El Paso Corporation. "With the completion of what was an $8 billion pipeline backlog, the elevation of our E&P business to one of the top independent producers, outstanding leadership and employees in each of our businesses, and the accelerated improvement of our balance sheet, we are ready to take this important step."

El Paso plans to complete a separation by year end with a tax-free spinoff of its E&P company. The planned separation is subject to market, regulatory, tax, final approval by the company's Board of Directors and other customary conditions.

Benefits

El Paso believes that there are material benefits to the stand-alone companies from a separation:

• Greater management focus on distinct business strategies
• Credit enhancing to El Paso Corporation
• Greater flexibility to grow businesses supported by separate equity currencies
• Independent capital structures and credit profiles, which provide a lower cost of capital
• Improved capital markets access
• Increased flexibility and efficiency in capital allocation

Ongoing Management of El Paso Corporation

The seasoned management of El Paso Corporation is in place. Doug Foshee will remain chairman & chief executive officer of the company.

Management of Exploration & Production Company

Brent Smolik will be named as chief executive officer and Dane Whitehead will become the chief financial officer. Doug Foshee will become the non-executive chairman.

Transaction Approvals

The spin-off of the E&P company will be structured as a pro rata distribution of the shares of the exploration and production company to the El Paso shareholders of record. The transaction will not require shareholder approval. El Paso plans to seek a tax ruling from the Internal Revenue Service regarding the tax-free nature of the spin-off for both the company and its shareholders.

Financial & Legal Advisors

Goldman, Sachs & Co. is serving as the financial advisor to El Paso, and Wachtell, Lipton, Rosen & Katz is serving as El Paso's legal advisor.

Oil & Gas Post

Promote Your Page Too

BHP Farms into Offshore Palawan Block

BHP Farms into Offshore Palawan Block

Wednesday, May 11, 2011
Otto Energy Ltd.

Otto Energy Ltd announced Wednesday that BHP Billiton has exercised the option to farm-in to Service Contract 55 (SC55).

Subject to joint venture and regulatory approval, BHP Billiton will earn up to 60% participating interest and assume operatorship of the block by reimbursing Otto's past costs and funding one offshore deepwater well by 2012, with an option to drill a second well in a subsequent phase by 2013. Otto Energy will retain a 33.18% interest following BHP Billiton's farm-in.

The farm-in option held by BHP Billiton was granted in January 2010, and Otto has worked over the past 16 months to acquire, process and interpret approximately 1,800 km2 of 3D seismic data in the block.

The extensive 3D seismic data indicates the presence of an active petroleum system coupled with a series of large to very large Nido Carbonate structures that supplement the Hawkeye prospect.

Otto's Managing Director Paul Moore said, "We are looking forward to continuing to work with BHP Billiton in Service Contract 55 as we move into the drilling phase of exploration activities. The past 16 months has been a very busy period for Otto as we have acquired, processed and interpreted a large volume of seismic data to identify a portfolio of significant oil and gas prospects. We have benefited from the co-operation shown by our joint venture partner, Trans-Asia, and also BHP Billiton."

"We now look forward to participating in this exciting offshore deepwater exploration program which will provide exposure for Otto's shareholders to material exploration in highly prospective, large structure opportunities."

Otto will submit the required assignment documents to the joint venture partner and the Philippine Department of Energy for approval of the transfer of participating interest to BHP Billiton.

Oil & Gas Post

Promote Your Page Too

Calvalley Delivers First Oil into MEPS

Calvalley Delivers First Oil into MEPS

Tuesday, April 12, 2011
Calvalley Petroleum Inc.

Calvalley has commenced delivery of Block 9 production of crude oil into the Masila Export Pipeline System ("MEPS") through the Company's Truck Offloading Facilities ("TOF") located at Block 51. Current deliveries utilize existing space in the Block 51 metering system. This temporary arrangement will be in place until early May when the Company's own metering system will be fully functional.
With the initiation of operations at the TOF, Calvalley is a now able to begin production of the first commercial oil from the Ras Nowmah and Al Roidhat fields, into the MEPS.

As well, and despite the unsettled security environment in Yemen, Calvalley continues its activities, as close to normal as possible, with two drilling rigs and one service rig in operation.

Completion of the TOF is a major milestone in Calvalley's program of increasing production, by bringing significant volumes of shut-in production on line, takes advantage of higher oil prices and market accessibility provided by the MEPS. As a result, all of Calvalley's blended crude oil will receive the Masila Blend price which is benchmarked to Brent Crude pricing.