Laredo Finalizes Broad Oak Acquisition

- Laredo Finalizes Broad Oak Acquisition

Wednesday, July 06, 2011
Laredo Petroleum Inc.

Laredo Petroleum has now completed the previously announced acquisition of Broad Oak.

The aggregate consideration paid was approximately $1 billion and consisted of approximately 2/3 of newly issued units of Laredo equity and 1/3 cash. The cash portion of the transaction was funded under Laredo's amended and restated $1 billion bank credit facility led by Wells Fargo Securities, LLC, BofA Merrill Lynch and J.P. Morgan Securities LLC, as joint lead arrangers. The amended and restated bank credit facility has an initial borrowing base of $650 million, of which $500 million was borrowed and outstanding following the closing of the acquisition.

This acquisition increases Laredo's size and positions it for continued growth in the oil-rich Permian Basin and the liquids-rich Granite Wash play. On a pro forma basis giving effect to the acquisition, Laredo has:

• total proved reserves of 840 Bcfe, consisting of 49 million barrels of crude oil and 547 Bcf of natural gas, as of March 31, 2011;
• average daily combined production of 130 MMcfe for the three months ended March 31, 2011, consisting of 40% crude oil and 60% natural gas plus associated natural gas liquids;
• a land position consisting of approximately 489,000 gross acres (338,000 net acres); and
• a total of 12 operated drilling rigs running, with eight drilling vertical wells and four drilling horizontal wells. Ten of these rigs are working in the Permian Basin and two in the Granite Wash play located in the Anadarko Basin.

The Broad Oak properties are concentrated on a contiguous land position located in the Permian Basin of West Texas primarily in Reagan County. This acreage is immediately south of, and on trend with Laredo's existing Permian Basin properties in Howard and Glasscock Counties. The combined acreage position in the Permian Basin consists of approximately 166,000 gross acres (126,000 net acres).

Randy Foutch, Laredo's Founder, Chairman and CEO said, "We welcome the Broad Oak employees to the Laredo team and intend to continue the active development and exploration of the combined company's attractive property base."

Tudor, Pickering, Holt & Co. Securities, Inc. served as financial advisor to Laredo. J.P. Morgan Securities LLC served as financial advisor to Broad Oak.

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Shell Fires Up Gas Production Offshore Qatar

Wednesday, March 23, 2011

Royal Dutch Shell

 

Qatar Petroleum and Shell announced the first flow of dedicated offshore gas into the Pearl GTL plant located in Ras Laffan Industrial City in the State of Qatar.

Shell, which is the operator of the Pearl GTL plant developed under a Production and Sharing Agreement with QP, has opened natural gas wells offshore allowing the first sour gas to flow through a subsea pipeline into the giant GTL plant onshore. Sections of the Pearl GTL plant will be started up progressively over the coming months.

The Pearl GTL project was launched in July 2006 and the first stone was laid by His Highness Sheikh Tamim bin Hamad Al-Thani, the Heir Apparent in February 2007.

Pearl GTL is the largest energy project ever launched in the State of Qatar, in terms of total investments. It consists of two offshore platforms 60 kilometers off the Qatar coast, connected by pipeline to the largest Gas to Liquids plant ever built, located in Ras Laffan Industrial City.

His Excellency Dr. Mohammed bin Saleh Al-Sada, Qatar's Minister of Energy and Industry said, "This project will play an important role in further enhancing our diversification of the North Field gas utilization and will support the optimization of Qatar’s competitive position in the world markets by supplying ultra clean GTL products. I would like to congratulate the Qatar Petroleum and Shell teams on first on-shore gas. The scale, technology and safety record on Pearl GTL have broken all records. This is a proud day for the State of Qatar, for Qatar Petroleum and for our partner Shell."

Peter Voser, Chief Executive Officer of Royal Dutch Shell said, "Today is an important milestone in the Pearl GTL project, and we are on a clear pathway towards the start up of gas to liquids production. I would like to thank Qatar Petroleum and the State of Qatar for their support throughout, to make such a substantial project possible."

Once fully operational, Pearl will produce 1.6 billion cubic feet of gas per day from the North Field, which will be processed to generate 120,000 barrels per day of condensate and natural gas liquids and 140,000 barrels per day of gas to liquids (GTL) products. Gas-to-liquids products are high quality, clean-burning oil products such as gasoil, high specification lubricants base oils, and chemicals feedstock.

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[Oil and Gas Post] - Samsung wins $2.76 bn project in Saudi Arabia

Samsung wins $2.76 bn project in Saudi Arabia

22 Mar, 2011, 11.40AM IST,AFP

SEOUL: South Korea's Samsung Engineering Co. said Tuesday it had signed a $2.76 billion deal to build a natural gas liquid complex in eastern Saudi Arabia .

Under the deal signed with Saudi Arabia's state-run oil company, Aramco , Samsung Engineering will complete the complex in Shaybah oil and gas field by June 2014.

The plant will produce 750,000 barrels of crude oil and more than 200,000 barrels of natural gas liquids a day.

Samsung Engineering has now secured five projects worth a total of $5 billion, including a power plant project in Wasit, 50 kilometres (30 miles) north of the industrial city of Jubail.

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http://economictimes.indiatimes.com/