Tethys Pumps Oil at Tajik Well

- Tethys Pumps Oil at Tajik Well

Tuesday, September 13, 2011
Tethys Petroleum Ltd.

Tethys gave an update on its operations in the Republic of Tajikistan.

Testing operations are underway on the East Olimtoi EOL09 exploration well located south of the town of Kulob some 10 km north of the Afghan border. This well reached a total depth of 3,765 meters in the Akdzhar formation and testing operations are being undertaken on the overlying Bukhara and Alai formations.

Currently the well is flowing a mixture of completion brine and oil from the upper Alai sandstone interval, this oil being of good quality with an API gravity of approximately 36 degrees. The current section open to testing includes this upper Alai sandstone unit as well as the lower Alai limestone interval and the upper part of the Bukhara formation. The well was drilled with heavy drilling fluid (weighted with barite), which was required to control the well when it intersected the upper Alai reservoir. Barite is currently being observed in the flow lines which the company believes is also inhibiting flow at present. It is anticipated that the well will clean up in due course, however the cleanup period may take some time. The Company is currently evaluating methods of speeding up the clean up of this well including acidization or nitrogen-lifting using coiled tubing, subject to availability of equipment.

There are two further sandstone zones in the Alai formation which appear oil bearing based on wireline logs and which will be tested after a stable and representative flow rate has been achieved from the upper Alai sandstone unit. The lower part of the Bukhara interval was also tested but was found to have low permeability at this location although with the potential for production in future wells using production enhancement techniques such as hydraulic fracture stimulation. Mobilization of such equipment to Tajikistan would take a
significant amount of time, as such the company has chosen to focus on the upper zones of this particular well at this time.

The Persea 1 exploration well, located near the town of Kurgon-Teppa is progressing within the 12 1/4" hole section. This well is primarily targeting the Bukhara limestone formation in a four-way dip closed structure with the overlying Alai formation forming a potential secondary target. The planned total depth of this well is 2,700 meters and it is expected that this will be reached in October 2011.

Data collection for the gravity, gradiometry and magnetic aerial survey carried out over the 35,000 km2 Bokhtar Production Sharing Contract Area has now just been completed. This will provide additional and more aerially extensive data to complement the existing seismic acquisition with the final processed data and results expected in 4Q 2011.

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La Cortez Boosts Net Production on Mirto-1

- La Cortez Boosts Net Production on Mirto-1

Monday, September 12, 2011
La Cortez Energy, Inc.

La Cortez Energy, Inc. on Monday provided the following operational update on the work-over activity conducted on the Mirto-1 well.

Maranta Block – Mirto Field

As previously announced, the work-over on the Mirto-1 well was initiated on August 8th, 2011, with the objective to initiate a long-term production test on the Villeta N sand, which is the same zone that is producing in the Mirto-2 well. The work-over operation was completed on August 23rd, and the well was immediately put on production with the following initial results during the period from August 23rd to September 10th: Average gross production before royalties was 334 bopd of 15 degree API oil, with an average Base Sediment and Water (BS&W) of 1.5%. The well is producing by Electro Submersible Pump (ESP), and is stabilizing at 820 psi (flowing pressure at the ESP inlet) which is the expected pressure needed to maintain current production levels. Production on September 10th increased to 343 bopd (gross before royalties) with an average (BS&W) of 0.5%, indicating a continuous reduction in the water cut as expected for this particular reservoir. The well will be placed on long-term production testing with the purpose of monitoring production behavior as well as to gather additional technical data.

The Mirto-2 well continues producing with an average rate of 484 bopd for the year (gross before royalties), and with an average BS&W of 0.7%. The well continues producing from the Villeta N sand with flow pressure stable at 1065 psi, indicating the potential to increase the ESP frequency in order to maintain production levels closer to 500 bopd.

Current production from the Mirto-1 and Mirto-2 wells is 756 bopd gross before royalties, or 151 bopd net (before royalties) to the company, an increase of more than 50% over the year to date average.

Andres Gutierrez, President and CEO of La Cortez, commented on the announcement, "We are very pleased with the initial results obtained from the work-over on the Mirto-1 N sand. The additional production represents a significant increase in net production to the company, and will give us the opportunity to further assess the results of the work-over, and work closely with Emerald Energy Plc. (the operator of the block) to finalize plans for future exploration activity on the block as well as to determine the production potential from the Villeta formation - U sand in the Mirto field."

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Oceaneering Sells Ocean Legend

- Oceaneering Sells Ocean Legend

Monday, September 12, 2011
Oceaneering International, Inc.

Oceaneering International, Inc. announced Monday the sale of the Ocean Legend, a mobile offshore production system, to an undisclosed buyer.

Oceaneering's third quarter 2011 earnings will include an estimated pretax gain in the range of $17 million to $19 million on the sale of this asset in its Subsea Projects segment operating results.

Oceaneering's 2011 EPS guidance previously given did not include the anticipated results of this transaction.

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Enegi Prepares Next Stage of Onshore Newfoundland Workover

- Enegi Prepares Next Stage of Onshore Newfoundland Workover

Monday, September 12, 2011
Enegi Oil Plc

Enegi Oil Plc on Monday announced that preparations for the next stage of the workover of its PAP#1 ST#3 well ('the Well'), onshore Newfoundland, are now close to completion. Delays have been experienced due to:

• Technical complexities associated with safely conducting the proposed operations; and
• The requirement for repeated stability and compatibility testing to ensure that the program achieves its desired results with no unforeseen long term implications for the well and no negative impact on personnel or the environment.

The results of this extended sequence of detailed tests and analyses are positive and the Company has entered into, and is close to concluding, commercial negotiations with service suppliers to undertake the program.

The Company has also been in regular communication with the Newfoundland and Labrador Department of Natural Resources ('DNR') throughout the planning process to ensure that any questions associated with the program have been addressed as they arise. The Company do not, therefore, anticipate any delays in gaining regulatory approvals, once the details of the program (equipment specifications, suppliers etc.) have been finalized and applications can be formally submitted. As stated previously, all the equipment and personnel required for the workover program will be mobilized to site once approval to commence the program is obtained from the DNR.

Whilst recommencing work at the Garden Hill South site has been the Company's primary focus during recent weeks, work is also ongoing to finalize plans for the proposed seismic survey over the PL2002-01 lease area, with a view to undertaking that survey during winter 2011/2012.

Alan Minty, CEO of Enegi Oil, commented:

"Whilst the last few months have been frustrating, we remain optimistic about the long term potential of these assets. We look forward to the commencement and outcome of the next phase of the work program, which will be the culmination of recent diligent and prudent planning."

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API: Obama's Jobs Plan a 'Missed Opportunity'

- API: Obama's Jobs Plan a 'Missed Opportunity'

Friday, September 09, 2011
American Petroleum Institute

API President and CEO Jack Gerard called the president's jobs plan a 'missed opportunity' and said the oil and natural gas industry could create more than a million new jobs for Americans and more revenue for our government with a few sensible changes in national energy policy.

"The president missed an opportunity to pick the low hanging fruit of job creation," said Gerard. "Allowing the responsible development of more of America's vast domestic oil and natural gas resources could generate more than one million new jobs in just seven years, with thousands of shovel-ready jobs that could be created almost immediately."

Gerard cited a study released this week by Wood Mackenzie (PDF file), sponsored by API, that shows the oil and natural gas industry can create 1.4 million additional jobs and more than $800 billion in additional government revenue by 2030.

"Raising taxes on an industry that already contributes more than $86 million every day to the federal government takes us in the wrong direction," Gerard said. "It could put American jobs at risk, decrease oil and natural gas production, harm millions of retirees who rely on income from energy companies, and actually reduce revenue to the government over time."

The oil and natural gas industry actually created jobs in August, a month when there were zero net jobs created in the overall economy, according to the Bureau of Labor Statistics.

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East Texas, Haynesville Production Stable Despite Wildfires

- East Texas, Haynesville Production Stable Despite Wildfires

Friday, September 09, 2011
Rigzone Staff
by Karen Boman

The wildfires plaguing East Texas have not impacted natural gas production volumes in the region, including Haynesville shale play production, but evacuations and fire-related damage have negatively impacted demand, BENTEK Energy reports.

Over the last three days, evacuations and fire-related damage in Texas have led to a near 1.0 Bcf total demand loss. BENTEK expects demand recovery to be gradual, though some demand should return due to rising temperatures. The Texas gas demand forecast, based on temperatures, shows power burn increasing by nearly 1.0 Bcf in the coming week, BENTEK said.

The Haynesville shale, one of the largest gas shale plays in the U.S., straddles the Texas and Louisiana border. Haynesville shale production from both states totals just above 5.0 Bcf/d, with about half of that production coming from the Texas side, BENTEK reports.

“BENTEK’s sample of production receipts from East Texas and Haynesville has not yet shown a distinct decline in production receipts that could be directly attributable to the fires,” BENTEK said in a report today. However, some of the fires have erupted around the perimeter of Haynesville shale counties, raising concerns about safety and disruptions in the fields.

Wildfires have burned acres in Harrison County, Texas, a core Haynesville production area in the state, and four non-core Haynesville production counties in Texas, Gregg, Marion, Nacogdoches and Rusk.

“If fires were to erupt in more developed areas of the shale, operations would undoubtedly have to be shut in, restricting production,” BENTEK said. “Even without a fire, downed power lines or disruptions in power transmission could also impact operations of pump jacks and compressor stations.”

To date, 26 large fires have burned nearly 114,000 acres in Texas, and are threatening oil and gas operations in the East Texas region as well as Louisiana and Oklahoma. An estimated 1,700 homes were either evacuated or lost, and more are threatened by fires.

“Much of East Texas is experiencing the highest level of drought conditions, and the fire danger in the East Texas Basin remains high to very high,” BENTEK said. Tropical Storm Nate will likely spare Texas from high winds but also withhold chances for rain.

Louisiana’s Department of Natural Resources (DNR) on Sept. 6 issued an advisory calling on oil and gas operators to monitor conditions closely and take necessary steps in case of fire, including shutting in wells, production facilities and pipelines if necessary.

“As drought conditions persist in many areas of our state, so does the risk of wildfire and the potential for wildfires to grow quickly out of control once they start,” said DNR’s Commissioner of Conservation Jim Welsh. He reminded operators that state regulations require combustible vegetation, trash and debris should always be kept at least 100 feet away from wellheads, production equipment, storage tanks and other exploration and production site structures.

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Cargotec Enters Vietnamese Market with Mooring Contract

- Cargotec Enters Vietnamese Market with Mooring Contract

Friday, September 09, 2011
Cargotec

A contract for mooring equipment for a pipelaying barge marks Cargotec’s successful entry to the Vietnamese offshore market

In July this year, Cargotec won a contract from the joint stock company Vinh Nam (VAM JSC)/TECMACH to supply mooring equipment outfits for Vietsovpetro’s 110m-long by 30.5m-breadth pipelaying crane barge, Con Son. The 1969-built vessel is currently undergoing a conversion at Dung Quat Shipbuilding Industry Co Ltd.

“The signing of this maiden contract in Vietnam demonstrates our client’s confidence in our capability,” says Gavin Lim, Cargotec's director of sales for towing and mooring solutions. “It also marks Cargotec’s successful entry to the Vietnamese offshore market.”

As part of the conversion project, Cargotec will supply eight mooring winches complete with local and remote controls, tension and length-monitoring systems, hydraulic power packs, sheaves, and fairleads. The mooring equipment is scheduled for delivery at the beginning of 2012 and will be manufactured at Cargotec’s facility for offshore load handling in Singapore.

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Noble to Drill Cyprus A Prospect in 4Q

- Noble to Drill Cyprus A Prospect in 4Q

Thursday, September 08, 2011
Rigzone Staff
by Karen Boman

Noble Energy will relocate one of three deepwater rigs it is operating in the eastern Mediterranean Sea to drill the Cyprus A prospect during this year's fourth quarter, said Noble Chairman and CEO Charles D. Davidson at the Barclays Capital 2011 CEO Energy Conference earlier this week.

Noble said its prospect offshore Cyprus is analogous to the structures it has drilled offshore Israel, and anticipates that prospects offshore Cyprus also will contain gas. Drilling offshore Cyprus is still risky, but they basically are the same system, said Davidson.

"The prospect is an important data point, could change the dynamics further on how gas is marketed in the eastern Mediterranean Sea," Davidson said. "In our view, they have some demand for natural gas, and the scale of the projects in Cyprus will far exceed demand there."

Noble and the Cyprus government signed a production sharing contract to launch exploration activities in the 324,000-hectar economic zone southeast of the island.

According to media reports, tensions have mounted between Cyprus and Turkey over the island nation's plans to begin oil and gas exploration in the eastern Mediterranean Sea. Greek Cypriots, who control Cyprus' internationally recognized government, and Turkish Cypriots are at odds over how revenue from oil and gas production will be shared. Turkey, which backs the Turkish Cypriots, said it would take action if exploration begins before the dispute can be resolved.

Noble operates approximately three million gross acres in the eastern Mediterranean, where is recently acquired additional 3D seismic data and has identified multiple prospects and leads.

The Tamar and Leviathan discoveries offshore Israel, which include 25 Tcf of gross mean resources, are the largest global deepwater gas discoveries made in the past decade. "With the discovery of Tamar, Israel became energy independent in terms of gas," said Davidson. "The discovery of Leviathan has turned Israel into a potential energy exporter."

The company is on track to commission the Tamar production facility in late 2012, with production set to begin in 2013. A rig is on location drilling development wells, and construction of the production platform is underway. The initial development phase calls for five subsea completions with 200 MMcfe/d to 250 MMcf/d per well, and process capacity expanded to 1 Bcf/d at existing onshore facility. Mari-B infrastructure will be utilized as part of this development phase. The Tamar discovery has a resource estimate of 8.4 Tcf.

Noble also is moving ahead with the Noa development, which includes a two-well tieback to the Mari-B facility. First production is expected in the second half of 2012, and will supplement Mari-B deliverability by 100 MMcf/d. Mari-B is nearing full operational reliability, with the Mari-B compression project finalized and second quarter demand up 40 percent from 2010.

"Our current production [in Israel] is extremely strong, with high demand in Israel for gas, with a very strong draw for supplies from Mari-B," Davidson said

Noble expects results in this year's third quarter from its appraisal work to further define the Leviathan resource, which is estimated to hold gross gas resources of 16 Tcf. The company will return to assess deeper stratigraphic sections of Leviathan and is evaluating development scenarios for the discovery, including domestic and export options.

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Treaty to Boost Production at Tx. Leases

- Treaty to Boost Production at Tx. Leases

Thursday, September 08, 2011
Treaty Energy Corp.

Treaty reported on its progress on the project to increase production on its Texas oil leases.

Stephen L. York, President and COO of Treaty Energy Corporation, stated, "We want our shareholders to know that our team has faced the hottest and driest summer in Texas since 1980. The extreme heat and dry climate have considerably affected ground conditions. These conditions have caused failures of equipment and electrical transformers which have led to a decline in the overall production on our existing wells."

Mr. York added, "However, the good news is that Treaty Energy's aggressive work-over plan has been able to offset the decline in production and has even greatly increased the production of the re-worked wells."

"Production on the first eight wells that have been re-worked increased from 8 barrels of oil per day to 26.5 barrels per day," explained Mr. York. He explained further, "Treaty Energy has also recently finished re-working an additional eleven wells, and after about a week of steady production, we are expecting to increase production to about 55 barrels of oil per day."

Treaty Energy has four other leases that are currently not producing as they require a work-over on the injector wells and electrical power lines. Work-over of these leases should be completed by the end of September and is expected to increase overall Texas production to 65 to 70 barrels of oil per day by that time.

Beyond the previously mentioned work-overs, Treaty Energy has 15 shut in wells spread over the Great Eight Leases that have been shut in for more than 12 months. Upon completion of all scheduled work-overs, the Company will then be able to more accurately evaluate the additional shut in wells and re-work them as necessary to bring them back into production.

Mr. York added, "The best estimate of Texas production on the currently owned and paid for leases will be 75 to 90 barrels of oil per day after the rework of the 15 shut in wells. Our goal by the end of 2011 is to be at 200 to 350 barrels of oil per day. This production number can vary based on the number of new wells that are expected to be drilled and completed. We expect to exceed 1,000 barrels per day by the end of June 2012. At $80 per barrel, this will translate to about $29.2 million in gross revenues annually from our Texas oil production alone."

CEO of Treaty Energy Corporation, Andrew Reid, stated, "I am pleased with the current production in Texas and noted that all re-works are being done from the bottom of the well to the top, including pressure testing of the tubing prior to re-installation in the wells. This type of work-over may initially cost more and require more time, however Treaty expects to avoid the higher operational costs that can be associated with stripper wells when using the traditional band-aid methods. Treaty's wells, once worked-over, will require much less maintenance compared to the average stripper wells."

Finally, Mr. Reid said, "We plan to release an update in the week of September 12th on the progress in Belize regarding the first well that we are expecting to drill later this month."

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Clough DORIS, Ichthys Execute Binding Contract

- Clough DORIS, Ichthys Execute Binding Contract

Thursday, September 08, 2011
Clough Ltd.

Clough announced the execution of a binding contract between the Ichthys Joint Venture and Clough DORIS Joint Venture, for the Ichthys LNG Project Offshore Integrated Project Management Support Services (IPMS), which has a limitation on spending until attainment of FID. Receipt of the Letter of Intent for this circa A$250 million contract was announced by Clough on August 9, 2011.

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Technip Lands EPC Gig for Satah Full Field Development

- Technip Lands EPC Gig for Satah Full Field Development

Thursday, September 08, 2011
Technip

Technip, in consortium with NPCC, was awarded by ZADCO an engineering, procurement and construction lump sum contract, worth a total of approximately $500 million (Technip part of the contract: 35%), for the Satah Full Field Development project. This field is located 200 kilometers northwest of Abu Dhabi, United Arab Emirates.

The Satah Full Field Development project's objective is to maximize crude oil production and oil recovery by reducing the well heads' back pressure and introducing of gas injection and gas lift facilities.

The project scope involves offshore brownfield works to the existing well head platforms and production manifold platform, installation of infield pipelines, as well as modifications and installation of new facilities at the Onshore Satah plant at Zirku Island.

This project award is the recognition of our expertise in the growing brownfield projects market in the Middle-East, said Arturo Grimaldi, Senior Vice President of Technip in the Middle East. It also reflects the confidence of our client ZADCO in the strong consortium that we form with NPCC.

Technip's operating center in Abu Dhabi will execute the engineering and procurement activities while construction and installation activities for offshore works will be performed by NPCC. The Onshore construction activities will be carried out jointly by the consortium companies.

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Statoil On Track with Mariner Project

- Statoil On Track with Mariner Project

The concept chosen for the Mariner heavy oil project on the UK continental shelf includes a production, drilling and quarter (PDQ) platform based on a steel jacket, with a floating storage unit (FSU).

Statoil expects a final investment decision in late 2012 and first oil in late 2016.

The Bressay heavy oil project on the UK continental shelf is also progressing according to plan, one year behind Mariner, to ensure transfer of learning and synergies.

The Mariner and Bressay projects were presented at a press briefing by Statoil's executive vice president for Development and Production International, Peter Mellbye, at SPE Offshore Europe 2011 in Aberdeen.

"After a period of uncertainty, I am proud to be able to say that we are back on track with the landmark Mariner and Bressay developments. To be able to once again move these projects forward is important for Statoil and its partners, as well as for the UK and for the Aberdeen region," said Mellbye.

The ultra-heavy oil projects will require pioneering technology in order to be developed. Since its discovery thirty years ago, the Mariner field has been subject to a number of development studies by different operators.

Statoil is the first company ready to put forward a development concept that will fully address the complexities of this field, in particular related to reservoir management, recovery rates and project execution.

Statoil has extensive heavy oil experience, including the successful development of the Grane field in Norway and the Peregrino field in Brazil.

Because of the low well flow rates and early water break-through there is a need for many wells, artificial lift, and a process designed to handle large liquid rates and oil-water emulsions.

A total of 145 reservoir targets for production or injection are planned for Mariner. While the number of well slots at the platforms is less, this will be solved through use of multi-branch technology, sidetracks and reuse of slots.

The Mariner and Bressay projects will entail a gross investment of roughly GBP 6 billion. Statoil estimates lasting employment of at least 700 individuals, mainly locals, directly involved in its operations, and the establishment of a new operations centre in Aberdeen. The indirect employment of numerous others in the supply and service sectors comes in addition to this.

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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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Cobalt Names COO

- Cobalt Names COO

Wednesday, September 07, 2011
Cobalt International Energy Inc.

Cobalt announced that Van P. Whitfield has been promoted to the new position of Chief Operating Officer. Mr. Whitfield previously held the position of Executive Vice President, Operations and Development.

Joseph H. Bryant, Cobalt Chairman and Chief Executive Officer said, "Van has been an indispensable member of Cobalt's management team from the earliest days of the company, and I believe this new role will take advantage of the full range of his management talent and experience. Van's many years of senior management experience in worldwide operations will serve him well in his expanded role. As Cobalt executes its deepwater exploration program in two of the world's highest potential basins, the Board of Directors and I are very pleased that Van has accepted this position, and are confident that he will excel in this new role."

Mr. Whitfield joined Cobalt in May 2006. Mr. Whitfield has 37 years of experience leading oil and gas production operations and marketing activities in North America, the United Kingdom and Europe, Africa, the Middle East and Asia. Prior to joining Cobalt, Mr. Whitfield served in executive positions at CDX Gas LLC, BP Exploration (Angola) Limited, and was seconded to ExxonMobil Saudi Arabia (Southern Ghawar) Ltd in the position of Vice President, Power and Water. Mr. Whitfield has also held the positions of Senior Vice President of BP Global Power, President and General Manager of Amoco Netherlands BV and Production Manager of Amoco (U.K.) Exploration Company. In addition, he has held numerous operational and technical leadership positions in various Amoco Production Company locations throughout the globe. Mr. Whitfield has a Bachelor of Science Degree—Petroleum Engineering from Louisiana State University and is a graduate of the Executive Program at Stanford University.

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Russia Can Double Oil Reserves By Tapping Arctic Potential -Lukoil Exec.

- Russia Can Double Oil Reserves By Tapping Arctic Potential -Lukoil Exec.

Wednesday, September 07, 2011
Dow Jones Newswires
SINGAPORE
by Max Lin

Russia can double its oil reserves if the government is determined to exploit the potential in the Arctic, a senior Lukoil Holdings executive said Wednesday.

"The development of Arctic fields needs political will and support from the government," Sergey Chaplygin, chief executive of Lukoil International Trading and Supply Co. said, but didn't elaborate. Lukoil is the country's biggest private oil producer.

Russia, the world's top oil and gas producer, has proven oil reserves of around 60 billion barrels, Energy Information Administration data showed.

Lukoil plans to explore oil production in the Russian Arctic with state oil company Rosneft under a new long-term cooperation agreement that takes effect this month.

Rosneft will also explore in the Arctic area with U.S. energy giant ExxonMobil, in a separate deal.

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

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Northern Starts Extended Well Test at Markwells Wood

- Northern Starts Extended Well Test at Markwells Wood

Wednesday, September 07, 2011
Northern Petroleum plc

Northern Petroleum has started operations for an extended well test of the Markwells Wood oil discovery in West Sussex. The test will enable Northern Petroleum and its joint venture partners - Magellan Petroleum (UK) Limited and Egdon Resources U.K. Limited - to evaluate the potential and scheme for future development of the Markwells Wood oil accumulation.

The Workover rig arrived on site on Tuesday, September 6, 2011. The production string is being installed prior to the installation of testing facilities to enable testing operations to begin in early October 2011.

Production testing may take 40 days and will utilize a Linear Reciprocal Pump that has a lower height profile, lower noise emission and a smaller footprint than the more traditional 'Nodding Donkey' pump.

Depending on the results of those initial tests, acid stimulation may be applied to the reservoir formation.

Interests in License 126 are as follows:

• Northern Petroleum (GB) Limited 50%
• Magellan Petroleum (UK) Limited 40%
• Egdon Resources U.K. Limited 10%

Derek Musgrove, the Managing Director of Northern Petroleum stated, "Oil was encountered during the drilling of Markwells Wood towards the end of 2010. A core sample in the Great Oolite reservoir formation was successfully recovered and subsequently subjected to many laboratory tests. These established petrophysical characteristics of the formation and preferred stimulation treatments if required. Following completion of this work, the current program was designed and contracts issued."

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Oilex Notes Progress in Cambay Clean-Up Ops

- Oilex Notes Progress in Cambay Clean-Up Ops

Wednesday, September 07, 2011
Oilex Ltd.

Oilex advised that operations to prepare for well clean-up flow and production testing are continuing. Operations to retrieve down hole equipment, open up the remaining fracture stimulation stages and install production tubing will be conducted with a workover rig. Given the likely duration of this phase of the operations will be a few weeks, Oilex will provide the next update on operations when progress has been made.

The Cambay-76H "proof of concept" horizontal well is evaluating the production potential of the Y Zone interval of the extensive deep Eocene "tight" reservoirs in the onshore Cambay Production Sharing Contract area, Gujarat, India.

• Report date: September 6, 2011
• Status Preparations for well clean-up flow and production testing
• Past Week's Operations
  • Sourcing rig and equipment for the planned operation to retrieve tools in well
  • Successfully completed chemical cutting of coil tubing in hole
  • Demobilized surplus equipment, personnel and services.
• Objective: Cambay Eocene "tight" reservoir Y Zone
• Total Depth: 2,740 meters including 610 meters horizontal section

The participating interests in the Cambay PSC are:

• Oilex Ltd (Operator) 30%
• Oilex NL Holdings (India) Limited 15%
• Gujarat State Petroleum Corporation Ltd 55%

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FOGL Briefs Interim Results for 1H11

- FOGL Briefs Interim Results for 1H11

Wednesday, September 07, 2011

Falkland O&G Ltd.

FOGL announced its Interim Results for the six months ended June 30, 2011.

Highlights

• Contract signed for the Leiv Eiriksson drilling rig for two firm slots in first half 2012.
• Operatorship and remaining 51% equity in Northern License Area assigned back to FOGL by BHP Billiton together with a significant cash settlement.
• Completed the site survey and 2D seismic program.
• Equity placing raised US $51.8 million before expenses. Cash balance of $110.6 million at period end (2010: $80.4MM).
• Current available funds, including BHPB settlement, of $150.6 million.

Richard Liddell, Chairman of FOGL, said, "We made good progress during the first half of 2011, during which we negotiated the exit of BHPB from our licenses and regained complete control and operatorship of our license areas while also securing a significant cash payment from BHPB. This was an excellent outcome, which has enabled us to drive forward with the most important phase of our exploration program. In addition, we successfully raised $51.8 million through a share placing, which, combined with existing cash resources and BHPB's payment, leaves us in a strong financial position to drill two wells in 2012. We also signed a rig contract and expect drilling to commence with the Loligo well in the first quarter of 2012. In addition, a number of other prospects have been selected and prioritized as possible targets for the second well in the program."

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GE Bags Causeway Development Deal

- GE Bags Causeway Development Deal

Tuesday, September 06, 2011
GE O&G

Reinforcing its position as a leading supplier of subsea technology for North Sea oilfield projects, GE Oil & Gas announced at Offshore Europe 2011 that it will provide subsea production equipment to Valiant Causeway Ltd. for the development of the Causeway Field.

GE will supply two subsea production trees, one subsea water injection tree system, rental tooling and installation services for the project, located in the northern sector of the North Sea. The equipment will be manufactured at GE Oil & Gas facilities in Aberdeen, Scotland.

"We are committed to commence production in the second half of 2012, and installation of the subsea tree system is planned to begin in May of 2012," said Bryan Atchison, project manager of Valiant Causeway. "This is a very aggressive schedule and a close working relationship has been established between GE and Valiant to ensure that we are able to meet all of the project requirements."

The Causeway Field is being developed using subsea production technology with a tie-back to the existing North Cormorant Platform. The reservoir development strategy is to maintain production with the use of electrical submersible pumps (ESPs) and water injection. The Causeway Field will comprise one oil-producing well, one contingent oil-producing well and one water-injection well.

"This contract demonstrates GE's strong position and ability to provide reliable technology that is designed to facilitate the installation process," said Matt Corbin, regional leader—United Kingdom and continental Europe for GE Oil & Gas. "Our subsea tree systems are based on extensive field experience and feature well-proven interfaces with the power cables and dual ESPs to be installed in the wells."

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Ithaca Selects GE O&G for Stella Development

- Ithaca Selects GE O&G for Stella Development

Tuesday, September 06, 2011
GE O&G

GE O&G subsea systems and services have been selected by Ithaca Energy (UK) Ltd. for the Stella oil and gas field development project in the Central North Sea, GE reported Tuesday at Offshore Europe 2011.

Under a contract of $17 million, GE will supply an integrated package of "S" Series shallow water vertical tree (SVXT) systems, controls and SG1 wellheads to be installed using a jack-up rig.

Phase 1 for the Stella project will be four trees for the planned development wells with a possible additional tree for a further well in the area.

The SVXT systems are based upon GE Oil & Gas latest design of the shallow water structured product subsea tree system, smaller and lighter than any traditional shallow water tree system on the market. The SVXT system has been developed for ease of installation, minimal ROV dependency, reduction on weather influenced installation operations due to smart tools, higher load carrying capacities and increased pressure envelopes.

"Our ability to meet the engineering challenges of this project regarding temperature, riser analysis clarifications, pressure ratings and gas lift requirements was a key to receiving this contract," said Matt Corbin, regional leader—United Kingdom and continental Europe for GE Oil & Gas. "The agreement also builds on the good working relationship we established with Ithaca in a previous project."

The scope of the GE contract includes S Series SVXTs, SG1 drill-through wellhead systems and a full services support package comprising rental tools and manpower.

The equipment will be engineered and manufactured at GE's facilities in the United Kingdom with the equipment scheduled for shipment in the fourth quarter of 2012.

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