GM and LG to Jointly Develop Electric Vehicles

- GM and LG to Jointly Develop Electric Vehicles



Aug 25, 2011

General Motors and LG Group will join forces in design and engineer future electric vehicles, expanding a relationship built on LG's work as the battery cell supplier for the Chevrolet Volt and Opel Ampera extended-range electric vehicles.

The definitive agreement will assist GM expand the number and types of electric vehicles it makes and sells by using LG's proven expertise in batteries and other systems.

Timing of the launch of the first vehicles resulting from the partnership will be announced closer to market readiness. The agreement does not involve an exchange of equity between the companies.

General Motors (NYSE:GM) has a potential upside of 85.6% based on a current price of $22.3 and an average consensus analyst price target of $41.38.

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Drillsearch, BG Group to Jointly Explore Cooper Basin

- Drillsearch, BG Group to Jointly Explore Cooper Basin

Wednesday, July 27, 2011
Drillsearch Energy Ltd.

Drillsearch has formed a strategic joint venture with QGC, a BG Group company, to explore and develop unconventional shale and tight gas resources in the Cooper Basin.

The joint venture involves QGC farming into, and acquiring, a 60% interest in DLS's strategically located ATP 940P covering over 2,000km2 (500,000 acres) of the Central Cooper Basin Nappamerri Trough Shale Gas Fairway.

The agreement places DLS in the unique position in the Cooper Basin of having access to QGC's gas commercialization capacity to support the full scale exploration, appraisal and development of shale and tight gas resources. The Basin is well situated to supply growing gas demand from LNG exports and domestic users in Australia. QGC is currently developing the QCLNG project in Gladstone.
BG Group is an active player in the exploration, development and production of shale and tight gas in North America with major positions in the Marcellus and Haynesville shale gas plays. The Cooper Basin shale gas exploration joint venture with Drillsearch is BG's first shale gas investment in Australia

Drillsearch Chairman Jim McKerlie said, "The JV with QGC is a great outcome for Drillsearch. It is a clear indication that Drillsearch is delivering on its three-prong strategy in the Cooper Basin – Oil exploration on the Western Flank, development of conventional Wet Gas along the Wet Gas Fairway and now delivering a focused exploration and appraisal plan to the Company's unconventional projects in the Cooper Basin."

"With the farmin by QGC and exercise of the options, Drillsearch's share of this unconventional exploration and appraisal program is fully funded. The company has now secured funding for all three prongs of its strategy. We are encouraged by the three oil exploration successes in the Western Flank of the Cooper Basin and progress of Western Cooper Wet Gas which is looking to start production later this year."

Drillsearch Managing Director Brad Lingo said, "This joint venture is significant for both the Cooper Basin and Drillsearch. This landmark transaction puts Cooper Basin shale gas resources on the world stage. This transaction is a major achievement for Drillsearch validating not only the quality of the position the Company holds in the Nappamerri Trough Shale Gas Fairway but also the Company's capability as an exploration operator in the Cooper Basin."

"The transaction with QGC (part of the BG Group, a global leader in gas commercialization), is the most significant milestone in Drillsearch's 24 year history. Importantly, it positions Drillsearch at the forefront of emerging Cooper Basin unconventional resource developments. This provides us with a platform for outstanding long-term growth opportunities and further growth in the Company’s already extensive conventional and unconventional gas projects in the Cooper Basin."

Key features of the transaction include:

• Execution of a Joint Operating Agreement (JOA) establishing the future joint venture operations in ATP 940P. The focus of the joint venture is to explore and develop shale and tight gas resources in the Central Cooper Basin Nappamerri Trough Shale Gas Fairway;
• Execution of a Farm-in agreement whereby QGC are committing to a five year $130 million three stage exploration and pilot production appraisal program to acquire a 60% joint venture interest in DLS' 100% owned ATP 940P;
• DLS will hold a 40% joint venture interest in ATP 940P and be the operator of the joint venture through the exploration and pilot production appraisal stages with the aim to prove up sufficient shale and tight gas resources to support a full scale development project;
• QGC will fund $90 million of the first $100 million of the five year exploration, appraisal and pilot production program and thereafter QGC and DLS will fund the program on a 60/40 basis;
• Following the completion of the exploration and pilot production appraisal program, QGC will have the right to become the operator of the joint venture to take the shale and tight gas resources through to full scale development;
• QGC and DLS have entered into a Gas Marketing Heads of Agreement providing that, as part of a full scale commercial development, QGC offering to buy DLS' 40% share of gas production from ATP 940P and DLS having the right to supply additional gas from its other Cooper Basin permits up to an additional 10% of the ATP 940P joint venture gas production;
• DLS will issue options to QGC to subscribe for up to 31,622,454 DLS shares at 62 cents per share exercisable any time prior to February 15, 2012 for a 9.9% ownership stake providing DLS with a potential $19.6 million of additional funding;
• QGC will also reimburse DLS for 60% of its historical past costs, capped at $2.5 million; and
• QGC will have the right to withdraw from the joint venture after the end of either the first or second stage of the five year work program upon which QGC's 60% interest in ATP 940P reverts to DLS.

The various agreements contain change of control provisions. The agreement under which QGC gains its interest in ATP 940P provides that, should a change of control occur (e.g., another entity gaining more than 50% of DLS shares), QGC can require (1) DLS to sell to QGC at an agreed price DLS' 40% in ATP 940P if that change of control occurs before the completion of the second stage of the exploration program at an agreed price, (2) DLS to sell to QGC at an agreed price a further 5% interest in ATP 940P if that change of control occurs after the completion of the second stage of the exploration program and (3) QGC may become the operator of ATP 940P. The Gas Marketing Heads of Agreement further provides that if DLS is subject to a change of control, QGC may terminate the gas marketing arrangements.

All of the Native Title and Environmental Approval process necessary for the award the ATP 940P to Drillsearch has been completed and the formal award of the permit is currently pending Queensland Government Ministerial approval. The commencement of the ATP 940 JV is subject to completion of this process and approval of the transfer of the interest in the permit once issued to QGC.

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Crosstex Energy, Apache to Jointly Invest in Permian Basin Facility

- Crosstex Energy, Apache to Jointly Invest in Permian Basin Facility

Tuesday, July 12, 2011
The Crosstex Energy Cos

The Crosstex Energy companies announced a partnership with Apache to jointly invest $85 million in a new-build natural gas processing facility in the Permian Basin in West Texas. The initial phase of the project will provide interim and long-term processing solutions, compression and residue gas takeaway for Apache's Deadwood development in Glasscock County. Crosstex and Apache will fund the processing project equally and each hold a 50 percent working interest. Separately, Crosstex will buy and upgrade a nearby rail terminal to provide transportation of natural gas liquids (NGL) to its Eunice fractionation facility in southern Louisiana.

Initially, Crosstex and Apache will install a refrigeration plant with a capacity of 20 million cubic feet (MMcf) per day as an interim gas processing solution, compression and takeaway, all of which are expected to be operational by the fourth-quarter 2011. A cryogenic gas processing facility with a capacity of 50 MMcf per day is expected to be operational in the second-quarter 2012. Crosstex will manage construction and operate the facilities.

"Crosstex is excited to embark on this joint interest project with Apache, a premier independent energy company that has operated in the Permian Basin in West Texas for nearly 20 years and is one of the largest producers in the region with an active drilling program. We are extremely pleased Crosstex can provide Apache with creative midstream solutions for their gas and NGL products," said Barry E. Davis, Crosstex President and Chief Executive Officer. "We look forward to continuing our long-term working relationship with Apache.

"This transaction provides Crosstex with a significant footprint for future growth in the Permian Basin area where we will pursue additional business opportunities," Davis added.

Additionally, Crosstex will purchase and upgrade the abandoned Patriot Fractionator in Midland County. The facility will be upgraded and refurbished to initially serve as a rail terminal for Apache raw make NGL. Crosstex will transport NGL via rail to its Eunice fractionation facility in south central Louisiana for fractionation and sales. Product will be delivered to the Mesquite terminal via existing NGL pipelines or by trucks. Crosstex will invest $12 million in the project, which is scheduled to be completed and operational in the fourth-quarter 2011. This facility will provide NGL takeaway for the constrained Permian infrastructure until a long term pipeline solution becomes available.

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Realm Energy, Halliburton to Jointly Evaluate Emerging Shale Plays

- Realm Energy, Halliburton to Jointly Evaluate Emerging Shale Plays

Wednesday, June 01, 2011
Halliburton Co.

In an effort to accelerate shale gas development, Realm Energy International has contracted Halliburton's Consulting and Project Management team to work with Realm Energy to significantly expand the technical evaluation and ranking of the highest-potential shale deposits found in emerging prospective basins globally.

Realm Energy and Halliburton's Consulting and Project Management team began their collaboration in 2009 with an emphasis on European basins. During this initial effort, Realm Energy, supported by Halliburton, targeted 10 discrete sedimentary basins in four European countries for evaluation. The collaboration identified key prospect trends, and Realm has now successfully acquired 650,000 gross acres and has 4.4 million acres under government application of contiguous tracts of land over significant shale resources.

"Realm Energy is now moving into an operational phase with our European leasehold and will contract with Halliburton to leverage its extensive shale-development knowledge, gained from Halliburton's significant presence in the North American market," said Realm Energy Chairman Craig Steinke. "We could not have achieved the quality of our European portfolio without the help of Halliburton's consulting organization; this is why we have expanded our collaboration to assess and rank shale resources globally."

"Halliburton has developed a rigorous and efficient approach to the assessment, appraisal and development of shale plays, based on our
extensive experience in North America," said Paul Koeller, vice president of Halliburton Consulting and Project Management. "Our work
with Realm on the European shale plays has significantly increased our knowledge base for unconventionals, and we look forward to working with Realm on a global level."

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Blackstone, Alta Invest up to $1B to Jointly Develop N. America Assets

Blackstone, Alta Invest up to $1B to Jointly Develop N. America Assets

Tuesday, April 12, 2011
The Blackstone Group

Alta and Blackstone announced the formation of Alta Energy Partners, and a concurrent commitment to invest up to $1 billion via this entity to acquire and develop unconventional oil and gas assets in North America.

Founded in 1999 by Joseph G. Greenberg, its President and CEO, Alta Resources has been a leader in the development of shale gas assets from the Fayetteville shale basin in Arkansas to the Marcellus shale field in Pennsylvania. George P. Mitchell, a partner in Alta Resources, is widely regarded as the father of shale gas for his pioneering role in developing the Barnett shale in Texas.

Alta Resources and Blackstone have worked together recently to evaluate joint investments in unconventional oil & gas assets and have identified a number of potentially attractive investment opportunities to lease or acquire acreage in emerging and developed shale basins in North America.

Mr. Greenberg said, "I am delighted that Blackstone has chosen to partner with Alta Resources. Millions of acres are currently leased for North American shale oil and gas, requiring extraordinary amounts of capital to develop. We believe the combination of Alta's experienced shale gas technical team with Blackstone's strong capital base, network, and industry knowledge will allow Alta Energy Partners to stand apart as the partner of choice for companies seeking joint ventures or exits for their shale oil and gas assets."

David I. Foley, a Senior Managing Director at Blackstone and head of Blackstone's private equity investment activities in the energy and natural resources sector, commented, "Identifying and partnering with exceptional management talent is a fundamental element of Blackstone's investment philosophy and we are very pleased to have the opportunity to back Joe Greenberg and his team in this investment. This management team has worked together successfully for a number of years, has very strong geological and technical skills and a track record of generating outstanding returns for their investors."

Shell and HP advance seismic sensing capabilities

Shell and HP advance seismic sensing capabilities

March 23, 2011

Shell and HP have announced a breakthrough in the capability of their jointly developed inertial sensing technology to shoot and record seismic data at much higher sensitivity and at ultra-low frequencies.

The new onshore wireless seismic acquisition system is designed to provide a clearer understanding of the earth's subsurface, thus increasing prospects for discovering greater quantities of oil and gas to meet the world's increasing energy needs.

The sensing technology has now been demonstrated to have a noise floor - a measure of the smallest detectable acceleration over a range of frequencies - of 10 nano-g per square root Hertz (ng/rtHz), which is equal to the noise created by the earth's ocean waves at the quietest locations on earth as defined by the Peterson Low Noise Model. The tests were conducted in the seismic testing vault at the U.S. Geological Survey's (USGS) Albuquerque Seismological Laboratory facility in New Mexico.

"Responding to the energy challenge, the oil and gas industry is tackling ever deeper and more complex reservoirs, as well as reservoirs in very tight rock systems," said Dirk Smit, chief scientist for Geophysics and vice president of Exploration Technology, Shell.

"In particular, for onshore settings, this requires enhanced quality seismic data as well as the cost-efficient, flexible deployment of seismic sensor networks. The collaboration with HP demonstrates Shell's strategic approach to driving innovative technology solutions through active partnering."

"This new sensing milestone is the latest step in the collaboration between HP and Shell, which is on track to produce a leap forward in onshore seismic data quality to improve the exploration risk evaluation and decisions, illustrating the industry-wide benefits that can be achieved through cross-company innovation," said Rich Duncombe, senior strategist, Technology Development Organization, Imaging and Printing Group, HP.

At the test facility, HP was able to compare the seismic response of the new sensor side by side with a USGS reference sensor when an earthquake occurred in the Gulf of California during the testing period. The signal from the reference sensor was matched by the new sensor down to 25 mHz, verifying the sensor's response at low frequencies.

The seismic system uses the breadth of HP's technology development capabilities as well as Shell's advanced geophysical expertise in seismic data acquisition systems and operations. As such, this collaboration builds on the core strengths of each company to advance technology in this field.

The system will be delivered by HP Enterprise Services and the company's Imaging and Printing Group (IPG). It is based in part on the high-performance sensing technology originally co-developed by HP Labs - the company's central research arm - along with IPG and Shell research in seismic network design.

HP and Shell's collaboration is a cornerstone for an information ecosystem that empowers people to make better, faster decisions to improve safety, security and environmental sustainability while transforming business economics. Sensing solutions are positioned to provide a new level of awareness through a network of sensors, data storage and analysis tools that monitor the environment, assets, and health and safety.

Additional information on HP's integrated sensing solutions, and the collaboration between HP and Shell, is available at www.hp.com/go/sensingsolutions.

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