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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Progress Energy Reported Mixed Q2 Results, Top Line Down 5%

- Progress Energy Reported Mixed Q2 Results, Top Line Down 5%



Aug 4, 2011

Progress Energy (NYSE:PGN) reported Q2 EPS of $0.71, ahead of consensus estimates of $0.64 per share. Revenues for the quarter fell 4.9% year-over-year to $2.26 billion, missing consensus estimates of $2.29 billion.

The company sees 2011 EPS of $3.00 to $3.12, vs. consensus estimates of $3.13 per share.

Bill Johnson, Progress Energy chairman, president and CEO said, "Favorable weather in the second quarter, coupled with continued financial discipline within the company, helped us successfully deliver on our earnings per share goal for the first half of the year. "We continue to feel the effects of a challenging economy in our service area, but we remain focused on managing the business effectively and making wise investments to meet our customers' needs today and in the future, as we prepare for our pending merger with Duke Energy."

Progress Energy has a potential upside of 1.2% based on a current price of $46.53 and an average consensus analyst price target of $47.11.

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Faroe Notes Progress on Petoro Asset Swap

- Faroe Notes Progress on Petoro Asset Swap

Tuesday, July 12, 2011
Faroe Petroleum plc

Faroe provided an update on the Petoro asset swap deal as follows:

Highlights

• The transaction was passed by the Norwegian Parliament on June 17, 2011 and completion is expected in the Autumn
• Average net production from the Petoro Assets in the six month period January 1 to June 30, 2011 was approximately 8,400 boed
• 3.2 million boe of additional reserves net to Faroe's acquired interest in Njord since signing the Petoro Asset swap, expected to result from sanctioning of two new projects

On April 11, 2011, Faroe announced that it had signed an agreement with Petoro AS to swap its 30% interest in the significant Maria oil discovery for non‐operated interests in a number of good quality oil and gas production assets in Norway, namely in Brage, Njord, Ringhorne East and Jotun (the Petoro Assets).

Average net production from the Petoro Assets in the six month period January 1 to June 30, 2011 was approximately 8,400 boed. This high level of production has been achieved despite a technical problem with the riser system in Njord, which caused several production wells to be shut in for a period. Following the completed repairs, Njord is expected to be back on full production in 3Q 2011.

On May 12, 2011, a Field Development Plan (FDP) was submitted for the Hyme oil field, and this has already been approved by the Norwegian Ministry of Petroleum and Energy. Faroe will have a 7.5% net interest in the Hyme development (previously named Gygrid), located to the east of Njord. First oil from Hyme is expected in early 2013. The field will be developed with one dual‐lateral producer and a water injector sub‐sea tied back to the Njord field. In addition, the Njord partnership has sanctioned a project to allow continued production at lower pressure and extended field life. These two projects will add 3.2 million boe of 2P reserves and come as an addition to the 14 million boe of 2P reserves reported by the Company on April 11. Net Faroe capital expenditure on these projects is expected to be approximately £42 million, to be funded principally through a combination of cash flow from the Petoro Assets and bank debt.

The transaction was an asset for asset swap with no cash consideration from either party, and an effective date of January 1, 2011. Through this transaction, Faroe avoids the net capital investment of approximately £250 million required to appraise and develop Maria. Petoro retains the majority of decommissioning and abandonment liabilities in the Petoro Assets and have transferred a tax balance of NOK 400 million (approximately £46 million). The deal is conditional upon approval by the Norwegian authorities; the transaction was passed by the Norwegian Parliament on 17th June 2011 and completion is expected in the Autumn.

Graham Stewart, Chief Executive of Faroe Petroleum, commented, "We are very pleased with progress of the Petoro transaction. We are also encouraged by the higher than expected production rates of the fields we are acquiring during the first half of the year.

"We now look forward to a very exciting period of drilling ahead with four wells in the second half alone, starting with Fulla results, due in August 2011."

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Argos Reports Progress on Seismic Interpretation

- Argos Reports Progress on Seismic Interpretation

Tuesday, July 05, 2011
Argos Resources Ltd.

Argos Resources reported encouraging progress on the processing and interpretation of its recently acquired 3D seismic data over its 100% owned license PL001.

In April 2011, the Company announced the completion of the acquisition of 1,415 net square kilometers of 3D seismic data, including coverage over the entire license area, a halo outside the license boundaries and tie-ins to key wells. The 3D data covering the northeastern quarter of the license was prioritised to be processed on a fast-track basis. This processing was completed in May and interpretation of the data is now well advanced. The structural prospects Zeus and Demeter have been confirmed and are considered to be robust closures. In the Competent Person's Report of June 2010 these prospects were attributed Best Estimates of unrisked prospective resources of 258 mmb and 63 mmb of oil respectively, based on 2D seismic data. New stratigraphic prospects and leads have also been identified and are subject to ongoing detailed mapping.

One of the principal features of the northern part of the North Falkland Basin in the vicinity of licence PL001 is the presence of a major delta system that has prograded southwards across the license area, but does not appear to extend beyond the southern boundary of the license. This delta is at least age-equivalent to the organic rich oil source rock, the presence of which can be mapped with improved confidence across the license area. The 3D data quality over the delta is excellent and the Company is now using that data to identify new stratigraphic prospects in what is expected to be a sand-prone deltaic sequence

The fast track processing results have been so encouraging that the Company has commissioned similar fast track projects on the southeastern quarter and western half of its license, with results due for interpretation in July and August respectively. The final processed data for the entire survey area is due around year end.

Commenting on this progress, Ian Thomson, Chairman of Argos, said, "Through sharing costs and seismic acquisition with adjacent operators, and being able to tender for a larger seismic program as a consequence, we have been able to acquire more 3D data and at lower cost than was envisaged at the time of the flotation in July of last year. The 3D seismic we have obtained is the best quality data seen in the basin to date, allowing us to map prospects with confidence.

As expected, we are also seeing from this data new stratigraphic prospects and leads which were not evident on the old 2D data. This was one of the objectives in acquiring 3D seismic, so we are very encouraged that additional prospectivity is being identified in the license area and we can reasonably expect that further new prospects should be identified as the remainder of the 3D data is processed and interpreted.

By committing to fast track processing of the 3D data in the rest of the license we expect to gain at least three months on the schedule for the complete project. This will greatly assist in our objective to be ready to drill in late 2011/2012 in order to have the option to contract the Ocean Guardian drilling rig which is currently operating in the area."

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Oilex Makes Progress at Cambay Well

- Oilex Makes Progress at Cambay Well

Wednesday, June 22, 2011
Oilex Ltd.

Oilex advised that the Cambay-76H horizontal well was directionally drilled as planned to casing point at 1,595 meters.

• Report date: June 21, 2011
• Status: Preparing to drill 8 ½" hole
• Past Week's Operations: 
  • Drilled 12 ¼" hole from 601 meters to 1,595 meters
  • Set 9 ⅝" casing to 1,594 meters
  • Tested BOP
• Objectives: Cambay Eocene "tight" reservoir Y Zone
• Kick off point for deviation: Approximately 1,100 meters
• Planned Total Depth (TD): Approximately 2,885 meters
• Days to TD: Approximately 35 days on a trouble free basis

Cambay Eocene Tight Reservoirs

The Company is making progress in unlocking the potential of the Cambay "tight" Eocene reservoirs that extend across the 161 km2 Cambay Production Sharing Contract ("PSC") area in onshore Gujarat, India. The Company intends to evaluate and exploit these reservoirs using horizontal drilling and fracture stimulation technology that has been developed and proven in North America.

The Cambay-76H "proof of concept" horizontal well will evaluate the production potential of the Y Zone interval of these "tight" reservoirs. An 8 stage fracture stimulation program will be conducted and after well clean-up, it is anticipated that a long term production test will be performed to determine flow rates, quality of hydrocarbons and commercial viability.

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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AWE Notes Drilling Progress at Arrowsmith

- AWE Notes Drilling Progress at Arrowsmith

Thursday, June 16, 2011
AWE Ltd.

AWE reported that at 0600 hours (WST) the Arrowsmith-2 exploration well was drilling ahead in 8-1/2" hole at a measured depth of 3,102 meters. During the week, two conventional cores were cut in the well; 55 meters in the Carynginia Formation and 45 meters in the Irwin River Coal Measures. Progress for the week was 811 meters.

The Arrowsmith-2 well is designed to test the unconventional gas potential of the Carynginia Formation, Irwin River Coal Measures and Kockatea Shale and will be drilled to a proposed total depth of approximately 3,420 meters.

The well is located approximately 25 kilometers from the Woodada Deep-1 well (deepened by AWE in April 2010 to acquire cores over the Carynginia Shale interval), and approximately 500 meters south east of the Arrowsmith-1 well, which tested gas from the Carynginia Formation.

On completion of drilling, the well will be suspended for future fracture stimulation and testing which is planned for later in the year.

The participants in EP 413 are:

• AWE Limited (via subsidiaries) 44.252%
• Norwest Energy NL (Operator) 27.945%
• Bharat PetroResources Ltd 27.803%

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Cougar O&G Notes Progress at Trout Proj.

- Cougar O&G Notes Progress at Trout Proj.

Cougar O&G Canada Inc.
Tuesday, June 07, 2011

Cougar O&G provided an update for the Corporation's Trout light oil project including the preparation of an updated drilling prospect reserve report.

The Corporation has finished the initial interpretation and evaluation of the Trout 3D seismic that was acquired and processed earlier this year. Over 20 vertical Keg River and Granite Wash light oil targets have been identified and 15 of these targets have been selected to be included in a drilling prospect reserve evaluation report. On June 3, 2011, Cougar signed an engagement letter with an independent reserves company to review and prepare the drilling prospect report. During the initial project meeting it was confirmed the 15 selected locations will be evaluated and assigned a range of proven, probable and possible reserve estimates and risked NPV values. Cougar anticipates that this report will be finished and released by the end of June.

Mr. William Tighe, CEO and Chairman of the Board for Cougar stated, "We are happy to be able to announce the development of this independent reserve report for our Trout drilling prospects. The 3D seismic has been extremely helpful in finalizing the development plans for the Trout field and commissioning an independent report will assist us in sharing that information with the shareholders as well as a key portion of the support documentation for fund raising for the drilling program.

"In addition to the reserve report we continue to prepare for the next drilling field operations in the main Trout production area. A series of ortho-photos were prepared and are being reviewed in order to select surface locations that are accessible using the all season infrastructure in the area. Once the locations are finalized the permitting will continue with surveying and Landowner/First Nation consultation."

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Eureka Notes Drilling Progress at Eagle Ford Well

- Eureka Notes Drilling Progress at Eagle Ford Well

Tuesday, May 31, 2011
Eureka Energy Ltd.

Eureka provided an update on drilling at the Black Jack Springs Unit 1H, the first well at its Pan de Azucar Eagle Ford Shale project in Fayette County, onshore Texas USA, which, as per the latest Operator reports was drilling ahead at a measured depth of 14,897 ft.

Mr. Ian McCubbing, Chairman of Eureka stated, "Indications from the Black Jack Springs Unit 1H well are in line with expectations, and therefore very encouraging. Assuming the results from the well remain in line with expectations, the potential impact on Eureka's Pan de Azucar acreage will be significant, and will help shape the Company's appraisal and development strategy for what is now proving to be prime acreage in the Eagle Ford Shale play."

The well which is being drilled by the Operator, Southern Bay Operating, LLC, a wholly-owned subsidiary of GeoResources Inc., has entered the main target zone of the Eagle Ford Shale and is progressing in accordance with the drilling plan. The well is expected to reach total depth within the next five days, after which it will be fracture stimulated.

The fracture stimulation operations are expected to be undertaken within the next few weeks, immediately after the Operator has completed fracture stimulation operations on its two Flatonia wells located less than 10km south west of Eureka's Pan de Azucar area.
The Black Jack Springs Drilling Unit is a 916 acre pooled unit to which Eureka has contributed 86 acres for its 9.4% working interest. The unit is immediately adjacent to the remaining 675 acres (EKA WI 100%) that make up the balance of the Pan de Azucar project.

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Oxy Reviews 2010 Progress at Annual Meeting

Oxy Reviews 2010 Progress at Annual Meeting

Friday, May 06, 2011
Occidental Petroleum Corp.

Occidental Petroleum Corp. Executive Chairman Ray R. Irani and Oxy President and Chief Executive Officer Stephen I. Chazen reported the company's 2010 operational, financial and long-term achievements at the company's annual stockholders' meeting Friday in Santa Monica, California.

"Today marks a noteworthy moment for the future of the company. As announced last October, consistent with the Board's long-established succession plan, Steve Chazen was elected as President and Chief Executive Officer. I will continue as full-time Executive Chairman. The Board believes that Occidental will benefit from the continuation of our long and successful partnership," said Irani.

"For 17 years I have had the pleasure of working with Steve. He is widely recognized as one of the best financial minds in the industry. Steve has served in a number of important posts at Oxy, from head of business development, to Chief Financial Officer, to President and Chief Operating Officer."

Chazen noted, "Ray and I have worked side by side during these years. Oxy's achievements have been impressive: record profits, record market capitalization, recurring increases in production, significant reserve replacement, high credit ratings, and a very strong performance in total shareholder return. Oxy's cumulative stockholder return was 914 percent over the past 10 years. It has been a challenging and successful past and we now look forward to a challenging and even more successful future."

In reviewing Oxy's 2010 performance, Irani said, "Oxy delivered record production, a strengthened asset base and solid profitability in 2010, building value for our stockholders while positioning the company for continued growth and top-tier performance."

Oxy increased worldwide production by 5 percent in 2010 to a company-record of 753,000 barrels of oil equivalent (BOE) per day. In addition, the company replaced 150 percent of its production in 2010, adding a total of 409 million BOE in proved reserves.

Oxy ended 2010 with

BHP Billiton Hands Reins to FOGL Offshore Falklands

BHP Billiton Hands Reins to FOGL Offshore Falklands

Thursday, March 31, 2011
Falkland O&G Ltd.
by  SubseaIQ

FOG announced further progress on its rig contract negotiations and certain changes to its license arrangements.

Changes to license arrangements

On March 30, 2011 FOGL signed a binding Heads of Agreement with its joint venture partner, BHP Billiton, that provides for the exit of BHP Billiton from the Northern license area once certain conditions have been satisfied, including approval of the Falkland Islands Government to both the assignment of BHP Billiton's 51% interest and transfer of operatorship to FOGL.

In relation to this withdrawal BHP Billiton will contribute towards the costs of drilling the Loligo well, by placing funds in an escrow account. The funds are to be drawn by FOGL against the costs of drilling the Loligo well. In the event that the Loligo well encounters hydrocarbons, BHP Billiton will have the option to back in to the Loligo development area only, for a maximum 40% non-operating interest in the discovery, in return for making a cash contribution to FOGL's future exploration and appraisal costs. Such a reassignment of interests will also be subject to approval by the Falkland Islands Government.

The settlement with BHP Billiton will, together with other funds available to FOGL, provide FOGL with total cash resources of US $110 million. These cash resources will be sufficient to fund the Loligo well, other exploration expenditures and allow the Company to fulfill the Phase 1 work commitment of the Northern license area.

Operations

Further to its announcement on March 15, the company is close to finalizing a rig contract for its deep water exploration program.

FOGL is also considering additional drilling options. The site survey program is progressing well, with surveys already completed on three locations. FOGL is considering the most appropriate means of financing and advancing these options and is in discussion with several parties that are interested in farming in to its licenses.

Tim Bushell, Chief Executive of FOGL, said, "We are pleased to have made good progress in our rig contract negotiations and to have reached an amicable agreement with our joint venture partner that gives FOGL control over its deepwater exploration program, commencing with the drilling of the Loligo prospect."