Cougar O&G Bags Additional Leases in Alberta Land Sale

- Cougar O&G Bags Additional Leases in Alberta Land Sale

Monday, August 29, 2011
Cougar O&G Canada Inc.

Cougar O&G has acquired an additional 3 sections of land (1920 acres) at an Alberta Provincial Government land sale on Wednesday August 25, 2011.

These lands are on the southern boundary of lands we acquired in July of 2010 and the 3D seismic program conducted in early 2011. We believe there are extensions of reserves identified in the seismic and the Reserves Assessment and Evaluation of the new or previously unevaluated Trout Core oil properties of Cougar, released on July 14, 2011.

That review completed based on existing information in the public domain coupled with the extensive Cougar 3D seismic program placed a $77.4 million Cdn Net Present Value (NPV) discounted 10% for Proven (P1) plus Probable (P2) plus Possible (P3) and an estimated 2.7 million barrels recoverable P1+P2+P3 from the project. The report is based on a previously announced logical development plan with a 2-4 well drill program to be followed up with a 4-6 well program. Those programs are dependent upon financing.

William Tighe, CEO of Cougar provided, "We are pleased with the extension of the lands acquired based on the geological analysis with extensions of structures identified in the 3D seismic. Despite challenges from the horizontal well inconclusive results due to insufficient pumping capability with the equipment currently available to properly test that well, the continued Rainbow Pipeline shut in since late April and the resulting need to truck our oil to markets in a 12hr round trip per load often in inclement weather and at discounts to contract prices, the Slave Lake area wild fires in early May, during which the focus was to keep all the wells producing, - we in addition have kept the projects moving forward wherever possible.

The drilling program, as a drill ready program which is subject to financing, is ready to move forward as soon as financing is sourced. The engineering report identifies this project has the potential to add revenue, estimated cash flow with pay outs on the capital program in the 130 day range, and add substantial proven reserves once the wells have been producing for 6 months, while continuing our goal of attaining 2000 bbl/d production from operations."

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BOEMRE to Hold First GOM Lease Sale since Spill

- BOEMRE to Hold First GOM Lease Sale since Spill

Friday, August 19, 2011
BOEMRE

Secretary of the Interior Ken Salazar and Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) Director Michael R. Bromwich announced that BOEMRE will hold the first oil and natural gas lease sale in the Gulf of Mexico since the Deepwater Horizon explosion and oil spill. Consistent with steps President Obama announced in May 2011 to expand domestic oil and gas production safely and responsibly, the proposed Western Gulf of Mexico Lease Sale 218 is scheduled to be held in New Orleans on December 14, 2011. The sale will include all available unleased areas in the Western Gulf Planning Area offshore Texas.

"This sale is an important step toward a secure energy future that includes safe, environmentally-sound development of our domestic energy resources," Secretary Salazar said. "Since Deepwater Horizon, we have strengthened oversight at every stage of the oil and gas development process, including deepwater drilling safety, subsea blowout containment, and spill response capability. Exploration and development of our Western Gulf's vital energy resources will continue to help power our nation and drive our economy."

"BOEMRE has taken aggressive steps to renew our commitment to the responsible stewardship of the U.S. Outer Continental Shelf," said Director Bromwich. "The decision to hold this sale was made after careful analysis of the best scientific information available and consideration of all public comments received."

The proposed lease sale encompasses about 3,900 un-leased blocks covering approximately 20.6 million acres. The blocks are located from 9 to about 250 miles offshore, in water depths ranging from 16 to more than 10,975 feet (5 to 3,346 meters). BOEMRE estimates the proposed lease sale could result in the production of 222 to 423 million barrels of oil and 1.49 to 2.65 trillion cubic feet of natural gas.

As part of the Administration's commitment to provide incentives for diligent development, and to ensure receipt of fair market value for the lease rights sold, BOEMRE proposes to increase the minimum bid amount for blocks in water depths of 1,312 feet (400 meters) and greater to $100 per acre. The minimum bid for those water depths in previous sales was $37.50 per acre.

This change is based on a rigorous historical analysis of the last 15 years of lease sales in the Gulf of Mexico. The analysis, adjusted for energy prices at time of each sale, demonstrates that leases that received high bids of less than $100 per acre have experienced virtually no exploration and development activities. In light of this analysis, BOEMRE has concluded that the increase will have little to no adverse impact on the timing or magnitude of production from tracts offered in this sale. Raising the minimum bid will discourage companies from purchasing leases they are unlikely to explore in the near term.

"BOEMRE is proposing this increase in an effort to ensure that areas with the greatest resource potential are developed, and to decrease the amount of leased acreage that is warehoused and goes unexplored," Director Bromwich said. "The change in terms will better ensure that the nation's resources are being developed in a timely manner."

The minimum bid amount for leases in the much more heavily explored and produced shallower water depths will remain at $25 per acre.

The lease sale will include environmental stipulations requiring that operators protect biologically sensitive features, as well as marine mammals and sea turtles. These stipulations will require trained observers to ensure compliance and restrict operations when conditions warrant.

Lease Sale 218 is the last remaining Western Gulf Planning Area sale scheduled in the 2007 – 2012 Outer Continental Shelf Oil and Natural Gas Leasing Program. The terms and conditions outlined in the package are not final. Different terms and conditions may be employed in the Final Notice of Sale, which will be published at least 30 days before the sale.

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Antrim, Valiant Finalize Causeway Sale

- Antrim, Valiant Finalize Causeway Sale

Wednesday, August 10, 2011
Antrim Energy Inc.

Antrim and Valiant have agreed to the early completion of the Sale and Purchase Agreement of Antrim Causeway (N.I.) Limited (as previously announced March 04, 2010), subject to the approval of the UK Department of Energy and Climate Change ("DECC"). Antrim Causeway (N.I.) Limited holds 30% interest in UK Northern North Sea Blocks 211/22a South East Area and 211/23d, which contain the Causeway Field.

With the sale of Antrim Causeway (N.I.) Limited, Antrim will receive US $21.75 million contributed to Antrim's development expenses towards its remaining 35.5% interest in the Causeway Field. This transaction was originally conditional on final approval of the Field Development Plan by DECC. Early completion of the sale, however, allows the Causeway joint venture to expedite field operations in preparation for an estimated production start up in the second half of 2012.

Stephen Greer, Antrim's CEO, commented, "The accelerated execution of the Sale and Purchase Agreement is a significant step towards Antrim's first North Sea oil production, anticipated in mid 2012."

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EOG CEO: Boosts Asset Sale Target to $1.6B, from $1B

- EOG CEO: Boosts Asset Sale Target to $1.6B, from $1B

Friday, August 05, 2011
Dow Jones Newswires
HOUSTON
by Ryan Dezember

EOG Resources Chief Executive Mark Pappa said Friday the oil and gas explorer is increasing the amount of cash it hopes to raise by selling assets this year in order to offset rising oilfield service costs.

The assets being sold "are primarily mature long-lived domestic gas properties and other acreage," Pappa told investors during a conference call to discuss EOG's second-quarter results. Those properties are scattered in east Texas, the mid-continent and in the Gulf of Mexico.

Houston-based EOG posted a profit of $295.6 million, or $1.10 a share, up from $59.9 million, or 24 cents a share, a year earlier. Excluding hedging impacts, write-downs and other impacts, per-share earnings rose to $1.11 from 18 cents.

Revenue jumped 89% to $2.57 billion on a 13% increase in output and oil prices that climbed 37%.

Analysts polled by Thomson Reuters expected a per-share profit of 79 cents and revenue of $2.01 billion. Shares rose 6.22% to $97.86 in early Friday trading.

While EOG's oil and natural-gas liquids production rose in the second-quarter, natural-gas output was about 1% lower to an average of 1,615 million cubic feet per day. EOG has stressed its shift to oil production in recent quarters due to an oversupply-induced natural-gas price slump.

"We're not interested in growing North American gas volumes at current prices unlike most other companies," Pappa said, adding that EOG will drill in natural-gas basins only where necessary to preserve leases.

By mid-year, EOG had completed $944 million worth of gas-asset sales and has another $271 million in deals pending, Pappa said. The divesture target should be reached by the end of the year.

About $400 million of the extra $600 million being raised will be spent on rising oilfield-service costs, Pappa said.

Beyond raising money to cope with oil-patch inflation, Pappa said EOG plans to open a Wisconsin sand mine in the fourth quarter, which will supply sand proppant for "most of our North American resource plays."

Proppant is a crucial component in hydraulic fracturing, a process in which water, sand and chemicals are forced deep underground to crack open energy-bearing rocks, including shales, so that oil and natural gas can seep out. The sand, or proppant, wedges into the resulting fissures to hold them open. Proppant, which comes in grades ranging from raw sand to manufactured ceramic spheres, is in tight supply worldwide.

Supplying much of its own proppant should save EOG some $400 million a year and help reduce the cost of drilling a well in its prolific Eagle Ford wells in south Texas by about $1 million, executives said.

EOG has also signed an agreement for a 70,000-barrel-a-day rail off-loading facility in St. James, La., that will allow it to transport most of its crude oil from the Eagle Ford and North Dakota's Bakken Shale around Cushing, Okla., where congestion has depressed oil prices this year, to the Gulf Coast, where crude oil fetches a premium.

The Louisiana off-loading facility should be able to start taking shipments in the first quarter of 2012 and will enable EOG to take advantage of the difference in regional oil prices, Pappa said.

Pappa, who turns 65 next month, also said Friday that he will remain as CEO for the next 18 months "and, when I do retire, my successor will be a long-tenured EOG employee."

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

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Logan Competes Sale of Front-End Seismic Services Division

- Logan Competes Sale of Front-End Seismic Services Division

Tuesday, August 02, 2011
Logan International Inc.

Logan announced that it closed the sale of substantially all of the assets and operations of its front-end seismic services division, Destiny Resources Services ("Destiny"), to certain subsidiaries of Clean Harbors, Inc.

Mr. David Barr, Logan's Chief Executive Officer, stated, "The completion of this transaction enables us to commit all of our management and financial resources to the growth and profitability of our downhole tool segment. The sales proceeds strengthen our balance sheet and increase our liquidity and, as a result, better positions us to pursue acquisition opportunities as well as grow our existing operations. The opportunity to realize Destiny's full value and to invest the proceeds in our core business was a key factor in selling this division."

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Rowan 2Q Earnings Jump on LeTourneau Sale

- Rowan 2Q Earnings Jump on LeTourneau Sale

Tuesday, August 02, 2011
Rowan Companies Inc.

For the three months ended June 30, 2011, Rowan Companies, generated net income from continuing operations of $44.4 million or $0.35 per share, compared to $83.4 million or $0.73 per share in the second quarter of 2010.

Income from continuing operations during the second quarter of 2011 included a $6.1 million pre-tax charge related to litigation settlement and $1.4 million of gains on asset disposals, for a net reduction of $4.7 million or $0.03 per share after tax. The second quarter 2010 results included a $4.5 million pre-tax charge for the expected cost to terminate the Company's agency agreement in Mexico, or $0.02 per share after tax.

Income from discontinued manufacturing and land drilling operations totaled $421.5 million in the second quarter of 2011 or $3.30 per share, including the after-tax gain on the sale of LeTourneau of $424.5 million, compared to $7.5 million or $0.07 per share in the second quarter of 2010. The after-tax cash proceeds from the sale of LeTourneau are estimated to be approximately $865 million.

Net income totaled $465.9 million or $3.65 per share in the second quarter of 2011, compared to $90.9 million or $0.79 per share in the second quarter of 2010.

Rowan's offshore drilling revenues were $223.5 million in the second quarter of 2011, compared to $282.2 million in the second quarter of 2010, as the impact of lower average day rates more than offset higher activity resulting from rig fleet additions between periods. The Company's gross offshore drilling margin was 53% of revenues in the second quarter of 2011, down from 63% in the prior-year quarter.

Matt Ralls, President and Chief Executive Officer, commented, "Over the past three months, we made substantial progress on several strategic fronts. We completed the sale of our manufacturing business and reached an agreement to sell our land drilling division, enabling us to focus exclusively on our core offshore drilling business. We significantly expanded the future growth prospects of that business by ordering two ultra-deepwater drillships that we believe will be the most capable in the global fleet upon delivery. Our first two N-class jack-up rigs commenced operations in the North Sea in June and we achieved our objective of entering the important Southeast Asia market with commitments starting later this year in Malaysia and Vietnam – Rowan's first work in that area in almost two decades. Further, over the past three months we increased our backlog of drilling revenue commitments by 67% to $2.6 billion.

"Our financial performance during the second quarter was significantly impacted by the effects of rig start-ups, several of which have occurred or will occur later than we expected due largely to delays related to more rigorous customer acceptance tests and regulatory approval processes and civil unrest in the Middle East."

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India OKs Reliance Industries' $7.2B Asset Sale to BP

- India OKs Reliance Industries' $7.2B Asset Sale to BP

Friday, July 22, 2011
Dow Jones Newswires
NEW DELHI
by Rakesh Sharma

India approved Reliance's proposed $7.2 billion asset sale to BP, paving the way for the U.K. oil giant's largest venture in the South Asian nation.

The companies have been waiting for approval from the federal government since February when Reliance, controlled by billionaire Mukesh Ambani, agreed to sell a 30% stake to BP in 23 oil and gas blocks for $7.2 billion plus another $1.8 billion linked to exploration success. The deal includes the D6 block in the Krishna-Godavari basin, India's richest gas find so far, and Reliance has already received $2 billion from BP.

Oil Minister Jaipal Reddy said his ministry recommended the Cabinet Committee on Economic Affairs to approve the deal for 21 blocks as there were some technical issues over two non-producing blocks. The ministry may in future grant or refuse consent on the two blocks, he added.

"This is one of the major foreign investments in the history of India," Reddy said. "This transaction will not only mean investment of $7.2 billion by a foreign company in India, it will also mean induction of vast technical expertise to India's hydrocarbon sector."

Under the February agreement, BP and Reliance will also establish an equally owned joint venture for the sourcing and marketing of natural gas in India. That venture doesn't require government approval.

BP's chief executive, Robert Dudley, said the energy giant hopes to complete the deal in a matter of weeks.

Reliance didn't immediately comment on the announcement.

Future investments to develop Indian assets could bring its total payments to $20 billion, BP had said previously.

The deal gives BP access to new hydrocarbon resources and markets, in line with its strategy of continuing to increase exploration and access new exploration acreage, especially as it is yet to resume drilling operations in the Gulf of Mexico following last year's oil spill there.

Reliance is expected to gain from BP's deepwater drilling expertise to increase gas production. The company's D6 block is expected to boost India's gas supply, but several technical and geological issues have resulted in output from the field off the eastern coast falling below 50 million metric standard cubic meter per day from 60 MMSCMD last year.

Reliance's market valuation has taken a hit due to issued including the decline in gas production. Its shares closed 1.5% up at INR873.60 ahead of the announcement on the Bombay Stock Exchange, where the benchmark index closed up 1.6%.

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

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Range Production Up Despite Barnett Sale

- Range Production Up Despite Barnett Sale

Wednesday, July 20, 2011
Fort Worth Star-Telegram, Texas
by Jack Z. Smith

Despite selling virtually all its Barnett Shale properties in North Texas in April, Range Resources expects to "have fully replaced all of the Barnett production" by the end of the third quarter, CEO John Pinkerton said in an update released in advance of the company's second-quarter earnings report.

Pinkerton said the Fort Worth-based natural gas and oil producer can boost production because of "excellent drilling results in the Marcellus Shale and Mid-Continent regions."

The company has been among the leading producers in the Marcellus natural gas field in Pennsylvania and has benefited from robust oil and gas production in the Mid-Continent region, which includes Texas and Oklahoma.

Range lost production equivalent to more than 100 million cubic feet of natural gas per day by selling its Barnett Shale properties effective April 29. But Range said its second-quarter production volume still averaged the equivalent of 508 million cubic feet of natural gas per day, an 8 percent increase over the second quarter of 2010.

Production for the second quarter of this year was 76 percent natural gas, 17 percent natural gas liquids and 7 percent crude oil, Range said in the operations update issued late Monday. The company is scheduled to report second-quarter results Monday.

Range said it received an average price equivalent to $5.63 per 1,000 cubic feet of natural gas for its second-quarter production, an 11 percent increase over a year earlier. Average prices were $4.63 per 1,000 cubic feet for natural gas, $50.07 per barrel for natural gas liquids and $80.42 per barrel for oil.

Pinkerton said Range is on track to achieve its goal of achieving net production equivalent to 400 million cubic feet of natural gas per day in the Marcellus Shale by year's end.

Based on the performance of 103 Marcellus Shale horizontal wells that began producing in 2009 and 2010, Range is projecting that the estimated ultimate recovery, or lifetime production, from these wells will average the equivalent of 5.7 billion cubic feet of natural gas per well, including about 4 billion cubic feet of gas and 281,000 barrels of liquids (natural gas liquids and crude oil).

The estimated recovery per Marcellus horizontal well is two to three times the estimated lifetime production of many typical wells in the Barnett Shale.

Copyright (c) 2011

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Petsec Finalizes Interest Sale in China JV

- Petsec Finalizes Interest Sale in China JV

Thursday, June 23, 2011
Petsec Energy Ltd.

Petsec advised that the final tranche of consideration in respect of the sale of its China Joint Venture interest has been received. The transaction was completed under the previously announced Sale and Purchase Agreement whereby Horizon Oil acquired Petsec's wholly owned subsidiary, Petsec Petroleum LLC, which held the Company's 25% working interest in the Block 22/12 Beibu Gulf project in China.

The sale for A$38 million in cash, plus 15 million Horizon share options with an exercise price of A$0.37, follows Petsec's previous announcements that it is debt free after eliminating US $100 million of debt over the past three years.

Petsec Energy Ltd's Chairman, Mr Terry Fern, said the Company will use the sale proceeds to fund the expansion and transition of its existing USA oil and gas operations to onshore areas of the USA, and to participate in the rapidly expanding shale oil industry.

"The Company's strategy is to not only move into areas where the shale source rocks are oil-prone but also to continue with our structured transition to a greater focus on exploration for liquid rich reserves in general," Mr. Fern said.

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Petsec Enters Sale, Purchase Agreement with Horizon

- Petsec Enters Sale, Purchase Agreement with Horizon

Friday, June 03, 2011
Petsec Energy Ltd.

Petsec Energy has agreed to sell 100% of the company's wholly owned subsidiary, Petsec Petroleum LLC, which holds Petsec Energy's entire interest (25% working interest) in Block 22/12, Beibu Gulf, China.

Petsec Energy has entered into a Sale and Purchase Agreement with Horizon for a A $38 million cash payment, plus options with a 3 year term and exercise price of 37 cents/share over 15 million Horizon Oil.

The sale –which is expected to be completed during June 2011 –follows previous advice from Petsec Energy that it had decided to put the China interests on the market and to use sale proceeds to fund a significant expansion of the Company's USA petroleum operations.

Petsec's Chairman, Mr. Terry Fern, said the sale of the China interests, combined with Petsec's existing Gulf of Mexico gas production, would provide funds to launch the Company into a new era of growth in the USA.

"Our Board took the view that the required funding of US $37 million to develop the Company's 12.25% interest in the 6.12/12.8W oil fields, in Block 22/12, would deliver better and earlier returns if applied to shale oil operations in the USA," Mr. Fern said.

"As well as our strategy of moving into areas where the shale source rocks are liquid rich, Petsec is also making the structured transition to greater focus on oil exploration generally –in particular since there is currently an oversupply of natural gas in the USA and a relatively low price as a consequence," he said.

"This includes our previously stated move away from the exploration and production of smaller, natural gas targets, which at current US natural gas prices are marginally economic. Instead, we have set a minimum prospect target of greater than 20 billion cubic feet of gas equivalent (Bcfe) and with concentration on those prospects that are likely to have higher hydrocarbon liquids content and hold associated oil."

Petsec, which last week announced that it was debt free after eliminating US $100 million of debt during the past three years, plans to accelerate its move into the shale oil business as well as transitioning its traditional Gulf of Mexico oil and gas exploration and production focus to the Gulf Coast and onshore Louisiana and Texas.

Last year the Company participated in the Marathon gas/condensate discovery onshore Louisiana with a well drilled to 18,800 feet. The follow-up Marathon No 2 well is currently drilling ahead at 17,300 feet, with a target total depth of 21,000 feet.

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BHP Billiton Pre-Empts WA-351-P Sale

- BHP Billiton Pre-Empts WA-351-P Sale

Thursday, June 02, 2011
Tap Oil Ltd.

Tap Oil announced on May 4, 2011 that it had agreed to sell its 25% interest in WA-351-P, offshore Carnarvon Basin, Western Australia, to Japan Australia LNG (MIMI) Pty Ltd (MIMI) for a cash consideration of US $30,154,000. In addition, MIMI were to pay Tap's 20% share of the next exploration well in the permit up to a cap of US $10 million (Tap share).

BHP Billiton Petroleum (North West Shelf) Pty Ltd, Tap's existing joint venture partner, has today given notice to Tap to exercise its right of pre-emption to acquire the 25% interest in WA-351-P on the same terms and conditions as agreed upon with MIMI.

Tap's Managing Director/CEO Troy Hayden said, "BHP Billiton pre-empting the MIMI transaction provides further evidence as to the value of this highly prospective permit.

"We are looking forward to working with BHP Billiton to drill the Tallaganda prospect as soon as possible, which at this stage we expect may be drilled sometime in the first half of 2012."

Prospectivity of WA-351-P

The Operator completed a detailed assessment of the plays, prospects and leads in the permit in 2010 including the 3D seismic acquired in 2008. Over 10 leads and prospects were defined in the Triassic Mungaroo Formation which Tap estimates have a combined estimated mean potential of 2-3 Tcf (gross recoverable) of natural gas. Tap considers that a number of these targets have an estimated probability of success over 50%.

Additional leads have been identified in WA-351-P in the Jurassic and Early Cretaceous, both of which are productive elsewhere in the Carnarvon Basin. Current indications are that this shallower potential is larger but higher risk than the Triassic in this permit. Further work will be done on these objectives.

The high chance of success is reinforced by Hess' reporting of 13 gas discoveries from 16 exploration wells drilled to date in the adjacent WA-390-P permit, immediately north of WA-351-P. Hess has commenced a multi-well appraisal program in WA-390-P.

The proximity of WA-351-P to many large-scale liquefied natural gas (LNG) projects being developed should provide the joint venture with many options for the commercialization of any gas discoveries.

Tallaganda Prospect

The Tallaganda prospect in WA-351-P has been high graded as an attractive prospect and an early drilling candidate. Tallaganda straddles WA-351-P and WA-335-P and has a prospective resource range of 0.8 Tcf to 1.3 Tcf (Mean to P10 recoverable) within WA-351-P.

Strong seismic amplitudes within closure and AVO support in the Tallaganda fault block are indicative of reservoir and gas and the prospect is assessed as having a greater than 50% chance of success.

Under the terms of the exploration license, an exploration well is required to be drilled before June 5, 2013. The Operator has advised that a well on the Tallaganda prospect could spud in 2011 or early 2012.

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Santos' Evans Shoal Sale Falls Through

- Santos' Evans Shoal Sale Falls Through

Wednesday, June 01, 201
Santos Ltd.

Santos announced in March 2010 that it had agreed to sell its 40% working interest in NT/P 48 (Evans Shoal) in the Bonaparte Basin to Magellan Petroleum Australia Limited.

Santos today announced that the sale transaction will not complete because the conditions to completion have not been satisfied by the May 31, 2011 deadline.

Santos therefore will retain its 40% interest in NT/P 48 and will remain as operator of the permit. Santos will also retain a $15 million non-refundable deposit paid by Magellan.

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GE Capital Sells 49.77% Stake in Banco Colpatria

- GE Capital Sells 49.77% Stake in Banco Colpatria



May 26, 2011

GE Capital, the financial services arm of General Electric Co (NYSE:GE) sold its 49.77% stake in Banco Colpatria of Colombia to its joint-venture partner, Mercantil Colpatria.

Bill Cary, Chief Operating Officer of GE Capital, said, "This is a good deal for GE, and furthers our objective of reducing the overall size of GE Capital, we have enjoyed working with Banco Colpatria's world-class management team to successfully grow the business over the past four years. We believe this transaction will be positive for the Bank which has excellent prospects for future growth."

The multinational conglomerate did not disclose the terms of the deal. Subject to regulatory approval and other conditions, the deal is expected to complete in Q2.

The sale is part of GE's effort to shrink GE Capital, which suffered large losses during the financial crisis.

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LGI, Geopark Close Stake Sale in Chile

- LGI, Geopark Close Stake Sale in Chile

Monday, May 23, 2011
Geopark Holdings Ltd.

LGI and GeoPark Holdings announced the closing of the previously reported sale to LGI of a 10% interest in GeoPark's oil and gas exploration and production blocks in Chile for US $70 million.

LGI is the energy, natural resource and trading affiliate of LG Corporation, the large international Korean company with 147 subsidiaries operating in over 50 countries and with annual sales exceeding US $100 billion. LGI has successfully invested and operated in the oil and gas exploration and production business for over twenty years including current upstream oil and gas projects in Oman, Vietnam and Kazakhstan. LGI has adopted a long term strategy of investing in oil and gas upstream investments in emerging resource-rich countries and has targeted Latin America as a new growth region in accordance with its strategic partnership with GeoPark.

Commenting on the announcement, Dr. E. K. Lee, Vice President and Head of the Oil and Gas Business Division of LGI, said, "We are very pleased to acquire an interest in GeoPark's upstream platform which represents an attractive foundation for our future growth in Latin America and the first oil and gas investment by a Korean company in Chile. We believe this region represents an area of untapped opportunities and high potential that fits our long term strategic objective of growing a global energy business. Our partnership with GeoPark is a relationship of complementary strengths and we see the GeoPark team and its properties as a key first step in building our business in Latin America. We look forward to growing together with GeoPark."

Commenting on today's announcement, James F. Park, Chief Executive Officer of GeoPark, said, "GeoPark is pleased to close this transaction and views its strategic partnership with LGI as a key element of our future growth and expansion in Latin America. The opportunity to cement this relationship by an initial sharing of projects builds a solid base for a promising long term and committed acquisition partnership. It also clearly demonstrates the value of the business that GeoPark has developed since 2006."

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Rowan Redirects Focus on Offshore Drilling with $1.1B Sale of LeTourneau

Rowan Redirects Focus on Offshore Drilling with $1.1B Sale of LeTourneau

Monday, May 16, 2011
Rowan Companies Inc.

Rowan Companies has entered into a share purchase agreement (the "Agreement") with Joy Global to sell all shares of common stock held by Rowan in LeTourneau Technologies for $1.1 billion in cash. The Agreement is subject only to regulatory approval, which the Company expects to obtain within 60 days.

Matt Ralls, President and Chief Executive Officer, commented, "We are pleased to enter into this agreement with Joy to monetize our investment in LeTourneau. This transaction is consistent with our stated strategy to separate non-core businesses, and we expect that most of the after-tax proceeds, estimated at approximately $875 million, will ultimately be redeployed into our offshore drilling business, either through continued growth of our high-spec jack-up fleet or expansion into the ultra-deepwater drilling segment.

"We also expect this transaction to create additional opportunities for LeTourneau and its employees, who will become part of an organization that is focused on manufacturing and will continue to encourage further innovations in both the mining equipment and drilling systems businesses. I want to personally thank the LeTourneau management team for the many organizational and operational improvements they have made in the company and their invaluable assistance in reaching an agreement with Joy. I likewise want to thank all of the LeTourneau employees for their dedication and service over the years as part of the Rowan family."

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Husky's 1QHercules Offshore, Seahawk Drilling Finalize Asset Sale

Hercules Offshore, Seahawk Drilling Finalize Asset Sale

Wednesday, April 27, 2011

Hercules Offshore Inc.

Hercules Offshore and Seahawk Drilling announced the completion of the asset purchase and sale previously disclosed on February 11, 2011. In accordance with the terms of the Asset Purchase Agreement, Hercules Offshore will acquire 20 jackup rigs located in the U.S. Gulf of Mexico and related assets, accounts receivable, cash, accounts payables, and certain contractual rights from Seahawk Drilling. The total consideration paid to Seahawk Drilling consists of approximately 22.3 million shares of Hercules Offshore common stock and $25.0 million in cash. Following this transaction, there will be a total of approximately 137.2 million outstanding shares of Hercules Offshore, Inc.

Judge Approves Sale of Seahawk Drilling to Rival Hercules

Judge Approves Sale of Seahawk Drilling to Rival Hercules

Tuesday, April 05, 2011
Dow Jones Newswires
by  Katy Stech

Texas oil rig operator Hercules Offshore won bankruptcy court approval to buy a smaller rival, Seahawk Drilling, and its fleet of shallow-water drilling rigs.

U.S. Bankruptcy Judge Richard S. Schmidt approved the sale at a hearing Tuesday morning in a Corpus Christi, Texas, courtroom, fulfilling a plan that Seahawk Drilling first proposed when it filed for Chapter 11 bankruptcy protection in February.

That plan never met major resistance, and rival bids didn't emerge during the two months that followed Seahawk's proposal.

But the value of the deal--estimated now at $176.8 million--grew since the sale announcement. Hercules agreed to pay $25 million in cash and 22.3 million of its shares, which have crested on higher gas prices and closed Monday at $6.80 a share. The day that Seahawk filed for bankruptcy protection, Hercules's shares closed at $3.62, putting the deal's original value at $105 million.

Seahawk blamed its financial hardship on the global financial crisis that took hold shortly after it was formed in August 2009. Company officials also blamed the company's financial woes on tighter environmental regulations that followed the BP PLC (BP, BP.LN) oil spill, the largest U.S. offshore spill in the petroleum industry's history. The incident's deadly explosion aboard the rig Deepwater Horizon led oil to bleed into the Gulf of Mexico for three months starting in April 2010.

Drilling in shallow water wasn't affected by the moratorium that followed, but the process slowed. In the filing, company officials said they have been "unable to obtain drilling permits in a timely manner."

Seahawk's roughly 500 workers look for pools of oil in water depths of up to 300 feet, according to its website.

Oiltanking Partners Files For $200 Million IPO (OTLP)

Oiltanking Partners Files For $200 Million IPO (OTLP)



Oiltanking Partners LP plans to offer up to $200 million in common units in an initial public offering.

The limited partnership was formed in March, and will serve as a growth vehicle in the U.S. for the Hamburg, Germany based Oiltanking GmbH, the indirect owner of the company's general partner, according to the company's filing with the SEC.

Oiltanking GmbH is the world's second largest independent storage provider for crude, refined products, and liquid chemicals and gases. Oiltanking Partners has terminating, storage, and pipeline operations in Texas and the upper Gulf Coast.

Oiltanking Partners plans to apply to list on the New York Stock Exchange under the symbol OTLP.

Ford's March Sales Outpace GM's (F,GM)

Ford's March Sales Outpace GM's (F,GM)



Ford Motor Co (NYSE:F) posted a 19% increase in vehicle sales for the month of March, driven by strong growth for its Fiesta, Fusion, Escape, and Explorer, as well as the F-Series, which saw year-over-year sales growth of 25%.

Ford's monthly total of 212,777 surpassed that of General Motors (NYSE:GM), which reported selling 206,621 vehicles in the month, though GM outsold Ford for the quarter, 592,545 to 496,720.

Ken Czubay, vice president of Ford U.S. marketing, sales and service, said, "With gasoline prices eclipsing $3.50 a gallon, consumers are placing a high priority on fuel efficiency in every size and kind of vehicle. Customers are rewarding Ford for our investment in new products as well as more efficient engines and transmissions, which save them money at the pump whether they drive Fiestas or F-Series trucks."

Samson O&G Closes Asset Sale, Sets Frac Date for Earl Well

Samson O&G Closes Asset Sale, Sets Frac Date for Earl Well

Thursday, March 31, 2011
Samson O&G Ltd.

Samson O&G has closed its previously announced sale of gas assets in the Jonah and Lookout Wash Fields in Green River Basin, Wyoming for $6.3 million to a group of private buyers, with an effective date of January 1, 2011. Samson's cash balance following this transaction stands at US $73.3 million.

Samson has also been advised that a frac date has been set for the Earl #1-13H well and it is expected that frac operations will commence Monday April 4th. Earl #1-13H was previously drilled to a measured total depth of 17,342 feet, and a 5,700 foot liner set in the horizontal section. This horizontal section will be fracced with 20 stages and the treatment is expected to place 2.3 million pounds of proppant. This operation will take approximately five days.