Hercules Offshore Ups Stake in Discover Offshore

- Hercules Offshore Ups Stake in Discover Offshore

Tuesday, September 13, 2011
Hercules Offshore Inc.

Hercules Offshore has acquired an additional 6.1 million shares of Discovery Offshore S.A. at an average price of NOK9.02 per share. With this latest purchase, Hercules Offshore has invested a total of approximately $34.1 million in Discovery Offshore, and currently holds a 28% ownership interest in Discovery Offshore.

"Since our initial investment in Discovery Offshore in January 2011, the fundamentals of the offshore drilling industry have strengthened, and demand for ultra high-specification jackup rigs remains exceptionally strong," said John T. Rynd, President and Chief Executive Officer of Hercules Offshore. "Once delivered in 2013, these rigs will be among the most technically capable jackups worldwide, servicing a growing niche market that requires the advanced capabilities these rigs can provide. Initial discussions with customers confirm our confidence in the rig design, and the robust demand that we anticipate for these rigs for the foreseeable future."

Discovery Offshore is a Luxembourg-based company, focused on ownership of ultra high-specification jackup rigs. Discovery Offshore currently has two ultra high-specification jackup rigs under construction at Keppel FELS in Singapore, with delivery scheduled during the second and fourth quarter of 2013. Discovery Offshore also holds options for two additional jackup rigs. Hercules Offshore is overseeing the construction, marketing and operations of rigs owned by Discovery Offshore, as well as performing other corporate administrative functions required by Discovery Offshore.

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ADX Increases Stake in Kerkouane Permit

- ADX Increases Stake in Kerkouane Permit

Friday, September 09, 2011
ADX Energy

ADX Energy Ltd is pleased to announce a Sale and Purchase Agreement has been executed to buy back a further 10% interest in the Lambouka Prospect Area in the Kerkouane Permit from PharmAust Limited and to cancel the option of PAA to purchase an interest in that part of the Lambouka prospect that extends into Italian waters.

The key terms of the sale are as follows;

Upon payment of US$50,000 by PAA to ADX, ADX will issue to PAA 1,000,000 ADX shares

As part of the consideration ADX will also forgive outstanding past joint venture costs owed by PAA to ADX totalling $400,473.

The transaction is subject to Joint Venture pre emption.

ADX farmed out a 10% interest in the Lambouka Prospect Area to PAA in early 2010 to provide funding for the Lambouka #1 well. The Lambouka-1 well intersected a gas column interpreted based on comprehensive LWD (logging while drilling) and a wireline logging data set which was recovered during the drilling of the well. Unfortunately due to instability of the borehole while drilling and evaluating Lambouka, it was not possible to test the well.

Lambouka is located approximately 70 km North East of onshore Cap Bon in the Sicily channel. The Dougga gas condensate discovery is located approximately 22 km SSW of Lambouka.

Upon conclusion of this transaction ADX will hold a 60% interest in the Lambouka Prospect Area. ADX holds a 100% interest in the remaining Pantelleria License area, over which some Kerkouane participants have options, and the Kerkouane Permit area. ADX operates all licenses and has recently announced the award of the adjacent offshore exploration permit d 364 C.R-.AX in Italian waters acquired at 100% equity interest.

ADX is pleased to have the opportunity to further increase its interest in Lambouka on favourable terms. ADX believes Lambouka and the nearby Dougga discovery represent a material appraisal and development opportunity for ADX.

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Solo Oil Ups Stake in Tanzania Ruvuma Basin

- Solo Oil Ups Stake in Tanzania Ruvuma Basin

Thursday, September 08, 2011
Solo Oil plc

Solo Oil announced an update on its plans for the drilling of an exploration well, Ntorya-1, in the Mtwara Block of the Ruvuma Basin PSA in Tanzania with its partners Tullow Oil and Aminex.

Further to the announcement on June 7, 2011, plans for the Ntorya-1 well have now been finalized with the all major services tendered and the Caroil-6 rig mobilization agreed to follow the current Aminex well Nyuni-2. The well will most likely be spudded in early November and is programmed to take 25 days to drill to a planned TD of 2026 meters.

Solo also announce that it has increased its stake in the Ruvuma Basin PSA from 12.5% to 18.75% in an agreement with Tullow in which Solo will assume the future obligations on the additional interest. Both Solo and Aminex have acquired additional interests in the PSA and Aminex will take over as operator from Tullow with immediate effect. Tullow will retain a 25% interest and will continue to support the joint venture with regional expertise and logistics.

The assignment is subject to final Tanzanian Government approval, which is expected to be granted shortly.

Solo Executive Director Neil Ritson commented, "The Ntorya-1 well, which is a follow up to the Likonde-1 well drilled in 2010, is an important further test of the largely unexplored onshore Ruvuma Basin. Both Solo and Aminex have a strong focus on Tanzania and by gaining a greater participation in the PSA will jointly be able to advance the work program more quickly. The long term potential is significant and we are very keen to continue the work started at Likonde as soon as possible."

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Pemex Secures Close to 10% Stake in Repsol

- Pemex Secures Close to 10% Stake in Repsol

Friday, September 02, 2011
Dow Jones Newswires
MADRID
by Ilan Brat

Repsol said Friday that Mexico's state-owned oil company has purchased an additional 4.62% stake in the company.

The purchase nearly doubles Petroleos Mexicanos SA's ownership in Repsol to around 9.4%, and comes as Pemex carries out an agreement with fellow Repsol shareholder Sacyr Vallehermoso to vote together in an attempt to exert more control over the Spanish oil firm's board.

The purchase of 56.4 million shares would be worth EUR1.12 billion at Repsol's closing price of EUR19.8 on Friday.

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

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Baker Hughes Acquires Stake in Verdande Energy

- Baker Hughes Acquires Stake in Verdande Energy

Friday, September 02, 2011
Baker Hughes Inc.

Baker Hughes and Verdande Technology announced that a subsidiary of Baker Hughes has acquired a minority equity stake in Verdande Energy AS, a subsidiary of Verdande Technology AS, and will become a user of Verdande Technology's case-based reasoning (CBR) software platform for oil and gas applications.

This CBR technology, called DrillEdge™, is a real-time intervention tool constructed on the principle of case-based reasoning, a problem-solving process that identifies similar issues from relevant wells drilled in the past and offers similar solutions. This immediate intervention-while-drilling response provides a thorough, fast and practical real-time bridge between past experience and current operations. Under the terms of the agreement, Baker Hughes will be involved in further developing the capabilities.

"The DrillEdge platform is expected to help operators lower risk, increase their rate of penetration and reduce non-productive time while drilling," said Scott Schmidt, president of Drilling and Evaluation for Baker Hughes. "Integrating this capability into our portfolio of real-time optimization and remote drilling services complements our BEACON remote operations platform. The technology is expected to help our customers expand their understanding of their wells without increasing their workload as they continue to drill more demanding and technically challenging wells."

"This strategic arrangement delivers immense benefits to our customers seeking to improve drilling performance and drive operational efficiencies by joining our technology with Baker Hughes' extensive network," said Lars Olrik, chief executive officer of Verdande Technology. "It helps a small company like ours strengthen its place in the market, access a global support and operational network and further develop the technology at a more rapid pace."

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CIC Negotiating for GDF SUEZ E&P Stake

- CIC Negotiating for GDF SUEZ E&P Stake

Tuesday, August 30, 2011
China Investment Corporation

China Investment Corporation (CIC) and GDF SUEZ on Aug. 10 signed a Memorandum of Understanding for cooperation across multiple businesses (gas, power, water and waste, and energy efficiency services) and regions (in particular in Asia Pacific).

As the first milestone of this cooperation, CIC is in advanced exclusive talks with GDF SUEZ regarding a USD 3.15 billion minority investment in the exploration & production division of GDF SUEZ (“GDF SUEZ E&P”). GDF SUEZ E&P accounted for 2.6% of GDF SUEZ’s aggregate revenues in 2010, 10% in EBITDA terms. CIC will own 30% of GDF SUEZ E&P. As part of the transaction, CIC would also acquire GDF SUEZ’s stake in the Atlantic LNG liquefaction plant located in Trinidad and Tobago for an amount of USD 850 million.

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Cooper Subsidiary Enters Farm-In Agreement for Romania Stake

- Cooper Subsidiary Enters Farm-In Agreement for Romania Stake

Friday, August 26, 2011
Cooper Energy Ltd.

Cooper announced that its wholly owned subsidiary, CE Bobocu Pty Ltd (CE Bobocu), has entered into a staged farm-in agreement with Zeta Petroleum (Romania) SRL (Zeta), a wholly owned subsidiary of Zeta Petroleum Limited (UK) (Zeta Petroleum), to earn up to a 50% interest in the Bobocu Gas Field on-shore Romania (Farm-in Agreement).

The Bobocu Gas Field is described in Cooper Energy's announcement of August 2, 2010.

The Farm-in Agreement replaces the Share Subscription Agreement and Joint Study and Bidding Agreement between Cooper Energy and Zeta Petroleum announced by Cooper Energy on August 2, 2010.

Subject to the satisfaction of certain conditions to the proposed acquisition by Key Petroleum Limited (Key) of all of the shares in Zeta Petroleum, the existing shareholding of Cooper Energy in Zeta Petroleum will be exchanged for Key shares.

The Farm-in Agreement is conditional on various matters, including:

• Implementation of the Key Proposal.
• Formal approval of the arrangement by the Cooper Energy and CE Bobocu boards of directors.

The drilling of the first well in the Bobocu Gas Field under the Farm-in Agreement is conditional on various matters, including:

• Key / Zeta Petroleum raising US $4 million to be made exclusively available for the purposes of the Bobocu Gas Field first well program.
• Zeta depositing US $2.24 million (of the US $4 million raised) in an escrow account.

Under the Farm-in Agreement, CE Bobocu will contribute farm-in costs up to a cap of US $2.24 million towards the first well in the Bobocu Gas Field.

All operations in relation to the first well will be operated by Zeta.

Following completion of the first well, CE Bobocu may elect to withdraw from the farm-in or to proceed.

If CE Bobocu elects to withdraw from the farm-in, CE Bobocu will be reimbursed from the escrow account all of CE Bobocu's expenditure on the first well.

If CE Bobocu elects to proceed, it will acquire (subject to governmental approvals and at no further cost) a 20% interest in the Bobocu Gas Field and have the right to earn up to a 50% interest in the Bobocu Gas Field.

CE Bobocu can surrender its right to earn in at any stage and will be entitled to retain the interest earned to that date. CE Bobocu will thereafter only be obliged to contribute its participating interest share of costs in respect of any further work on the Bobocu Gas Field.
Should it elect to proceed to each stage, CE Bobocu's financial obligations in relation to these subsequent programmes (in respect of which CE Bobocu will be the operator) are as follows:

Drilling of additional well	$1.8MM, plus 30% of costs thereafter	To earn an aggregate 30% interest
Design of plant	$2MM, plus 30% of costs thereafter	To earn an aggregate 40% interest
Construction of plant	$7.4MM, plus 30% of costs thereafter	To earn an aggregate 50% interest

Steve Twartz, Cooper Energy Exploration Manager, commented, "This revised arrangement provides CE Bobocu an option in the evaluation of the Bobocu Gas Field. Should the first well be successful, CE Bobocu will have preserved its risk managed options to earn further interests in the Bobocu Gas Field. Alternatively, should the first well not be successful, CE Bobocu can withdraw and it will have incurred no costs in respect of the first well."

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Maersk Buys Stake in HKN Energy

- Maersk Buys Stake in HKN Energy

Friday, August 26, 2011
Maersk Oil

Maersk Oil, a fully-owned subsidiary of the A.P. Moller – Maersk Group, has acquired a 20% shareholding in HKN Energy Ltd., a subsidiary of U.S.-based Hillwood International Energy, whose sole asset is a license in Kurdistan Region.

The acquisition is a step into the prolific but as yet underdeveloped area of Kurdistan in oil output terms, as Maersk Oil explores opportunities in the region.

"We want to gain knowledge and experience of operations in Kurdistan, which is why we have acquired a shareholding in a company already active in the region," said Jón Ferrier, Head of Business Development and Strategy in Maersk Oil. "In return, we will contribute our technical knowhow and expertise."

HKN Energy holds a 75% interest in and operatorship of the Sarsang license area in northern Kurdistan, on the highly prospective Zagros fold belt. HKN Energy drilled one discovery well in 2011 which is expected to be brought into production in 2012. Marathon Oil holds the remaining 25% interest in the license area.

The parties have agreed not to disclose the terms of the transaction.

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Ithaca Finalizes Acquisition of Cook Stake from Hess

- Ithaca Finalizes Acquisition of Cook Stake from Hess

Friday, August 26, 2011
Ithaca Energy Inc.

Ithaca announced that further to announcements on April 4, 2011 and May 16, 2011, the Company has completed the transaction to acquire a 28.46% non-operated interest in the Cook oil field ("Cook") from Hess Limited ("Hess"). At completion of the transaction, Ithaca paid an adjusted cash consideration of US $57 million and transferred to Hess a 10% interest in three Southern North Sea exploration blocks. The transaction has been funded from the Company's existing cash reserves.

At completion, Ithaca is also entitled to an oil inventory of approximately 185,000 barrels. This inventory is anticipated to be lifted and sold in Q4 2011. The adjusted consideration does not reflect this anticipated cash receipt.

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Noreco to Sell Stake in Flyndre Discovery

- Noreco to Sell Stake in Flyndre Discovery

Monday, August 22, 2011
Norwegian Energy Co. ASA

Norwegian Energy Company (Noreco) has entered an agreement to sell its share of the Flyndre Paleocene discovery to Maersk Oil for a consideration of NOK 19 million.

Flyndre Paleocene is a cross border discovery operated by Maersk Oil, of which the Norwegian part is located in license PL018C where Noreco holds a 13.338 percent interest.

Noreco's estimated share of proved and probable reserves in this discovery is 0.4 million barrels of oil equivalents. The license also contains a discovery in the Cretaceous formation which will be carved out and retained by Noreco.

The Flyndre sale is expected to have a positive accounting effect of approximately NOK 10 million after tax. The transaction and carve out of the Cretaceous formation as a separate production license are subject to approval by Norwegian authorities.

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Noble Energy Pays $3.4 Billion For 50% Stake in Consol's Marcellus Assets

- Noble Energy Pays $3.4 Billion For 50% Stake in Consol's Marcellus Assets



Aug 18, 2011

Noble Energy (NYSE:NBL) agreed to pay $3.4 billion to Consol Energy (NYSE:CNX) for a 50% interest in Consol's Marcellus Shale assets.

The two companies will create a joint venture to develop Consol's 663,350 acres in the region.

In early trading, Consol rose $1.80, or 4.24%, to $42.22. In spite of the deal between Consol and Noble, most companies with property in the Marcellus region are declining along with the broader market.

Noble Energy (NYSE:NBL) has a potential upside of 33.4% based on a current price of $83.39 and an average consensus analyst price target of $111.25.

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Otto Increases Stake in Galoc Oil Field

- Otto Increases Stake in Galoc Oil Field

Friday, August 12, 2011
Otto Energy Ltd.

Otto has entered into various definitive agreements to increase its stake in the producing Galoc Oil Field offshore the Philippines from an indirect 18.78% to direct 33.0% under Service Contract 14C (Galoc). Otto will assume 100% ownership of the Operating Company of the field, which is currently producing 6,800 oil barrels per day, on a 100% basis.

Under the terms of the transaction, Otto has agreed to acquire a 68.62% interest in the Galoc Production Company WLL (GPC), the operator of Galoc, from Vitol Group, increasing Otto's interest in GPC from 31.38% to 100%. Through the acquisition Otto will initially increase its stake to 59.84% of Service Contract 14C. Otto has then agreed to cause GPC to on-sell, on the same per percentage point terms, a 26.84% of this stake to Singapore energy investment company Risco Energy Pte Ltd, bringing Otto's post acquisition stake in Galoc to 33.0%. This transaction is subject to relevant Philippines government approvals.

The effective date of the purchase agreement is April 1, 2011. The total purchase price for Otto's share of the purchase price is US $18.7 million. The acquisition will be funded from Otto's existing cash reserves. Completion is scheduled to occur prior to September 30, 2011.

Attractively Priced, Low-Risk Opportunity

The acquisition will increase Otto's proved and probable (2P) reserves by 0.98 million barrels, with an additional 0.64 million barrels of contingent resources (2C). Recently the SC14C joint venture approved the upgrade to the mooring and riser system for the Galoc FPSO. This is expected to substantially increase the operating uptime of the field, and is crucial infrastructure to facilitate a Phase 2 development.

The purchase price for the acquisition is equivalent to US $19 per barrel for proved and probable reserves and US $11.50 per barrel with the inclusion of contingent resources, which relate to Phase 2. The field currently enjoys a net back of around US $50 per barrel after all costs, taxes and other charges.

Through 100% ownership of GPC, Otto becomes the Operator of the field, a crucial step in the development from an exploration to an integrated oil and gas company. The acquisition will also realize cost synergies as Otto consolidates the operating office of GPC in Manila with its current Perth and Manila offices.

Otto Acting Chief Executive Officer Matthew Allen said, "This acquisition represents an attractively priced, low-risk opportunity for Otto to increase its share of revenue from Galoc, as well as to better leverage the expertise within the group through assuming Operatorship. Galoc is a proven producing asset that we know well and that complements our high potential Philippines exploration portfolio. The revenue from Galoc continues to provide a valuable source of funds for reinvestment and this is set to grow as we move towards a Phase 2 expansion of the project. We look forward to working with our joint venture partners and the Philippine Department of Energy to advance the successful Galoc project under Otto's Operatorship."

Strong Current Production Performance

Recent performance at Galoc has been encouraging with current production at approximately 6,800 barrels per day. The field has delivered 23 offtakes to refinery customers to date with one additional cargo scheduled for delivery prior to the FPSO being taken out of the field in September.

Galoc has had an average operating uptime of 100% over the past four months, and now has a year-to-date 12-month rolling average uptime of 88%. The upgrade to the mooring and riser system is planned for the fourth quarter of 2011, and following installation is expected to improve FPSO operating uptime to in excess of 95%. The cost to Otto of the mooring and riser upgrade is modest at US $3.6 million based on a 33.0% interest in SC14C.

It is anticipated that final investment approval for a Phase 2 development of Galoc will be targeted for early 2012, subject to satisfactory results from a planned 3D seismic acquisition.

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W&T Offshore Seals Stake in Shell's Fairway Field, Yellowhammer Facility

- W&T Offshore Seals Stake in Shell's Fairway Field, Yellowhammer Facility

Thursday, August 11, 2011
W&T Offshore Inc.

W&T Offshore has closed its acquisition of Shell Offshore's 64.3% interest in the Fairway Field along with a 64.3% interest in the associated Yellowhammer gas processing plant, with an effective date of September 1, 2010. This acquisition was part of a larger transaction between Shell and W&T for three Gulf of Mexico deepwater producing fields known as Tahoe, SE Tahoe, and Droshky. As of the close date, the adjusted purchase price paid for the Fairway Field and Yellowhammer gas plant, as adjusted on the preliminary closing statement, was approximately $36.7 million, subject to further post-effective date adjustments and assumption of asset retirement obligations associated with these properties.

The Fairway Field is located in the shallow state waters south of Mobile Bay, Alabama and the Yellowhammer plant is located onshore in Alabama about 17 miles northwest of the Fairway Field. Current production, net to our interest in the Fairway Field, is approximately 19.5 MMcf of natural gas per day and 1,200 barrels of natural gas liquids per day or approximately 26.9 MMcfe per day, which was not included in previously provided production guidance. W&T's internal estimates of proved reserves associated with the acquired property as of June 30, 2011 are 39.4 billion cubic feet of natural gas and 2.5 million barrels of natural gas liquids, or 54.5 Bcfe. These reserves were based on SEC reserves definitions and pricing as of June 30, 2011.

Tracy W. Krohn, Chairman and Chief Executive Officer, commented, "This completes our acquisition from Shell and it serves to increase the borrowing base of our revolving bank credit facility by $50 million."

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Tap Oil Acquires Additional Stake Offshore Ghan

- Tap Oil Acquires Additional Stake Offshore Ghan

Wednesday, August 10, 2011
Tap Oil Ltd.

Tap Oil has executed an agreement to purchase an additional 5% participating interest in the Offshore Accra Contract Area, Ghana from Challenger Minerals Inc for USD 1.5 million.

This transaction, which will increase Tap's participating interest from 40% to 45%, is another example of Tap actively managing its asset portfolio to capitalize on commercial opportunities which arise.

This transaction is subject to the prior written approval of the Ghana National Petroleum Corporation and of the Minister for Energy of the Republic of Ghana. Subject to such approvals, the effective date of the transaction will be April 1, 2011.

Tap's Managing Director/CEO Troy Hayden said, "As with our pre-emption of the WA-351-P sale, we see this as a commercially attractive opportunity to increase our holding in a highly prospective asset.

"Early results from the 2011 3D seismic survey over the deep water leads are encouraging and this additional 5% enhances our strategic options in the area."

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Chariot Sells Stake in Namibia Block to BP

- Chariot Sells Stake in Namibia Block to BP

Monday, August 08, 2011
Chariot O&G Ltd.

Chariot announced that its wholly-owned subsidiary, Enigma Oil & Gas Exploration (Pty) Limited, has entered into a farm-out agreement with BP, whereby BP will acquire a 50% share of Chariot's equity interest in Southern Block 2714A (License 20). As announced on June 28, 2011, Petrobras has elected to take up operatorship and retains a 50% stake in the block.

Under the terms of the agreement, BP has committed to cover Chariot's cost of drilling the first exploration well, as well as past costs incurred.

Block 2714A is located in the Orange Basin offshore Namibia and covers an area of 5,481km². The Nimrod prospect is situated within this license and is the largest of Chariot's prospects. With this farm-out, Chariot will continue to pursue its drilling campaign within this license area whilst sharing in the costs, risks and rewards of exploration. Funds received and retained through this deal will be used in further exploration and appraisal work.

This agreement remains subject to the full approval of the Ministry of Mines and Energy in Namibia. It includes standard representations and warranties given by both parties and other conditions precedent.

Paul Welch, Chief Executive of Chariot, said, "We are delighted to enter into this farm-out agreement with BP whose global expertise of deep water exploration and related petroleum systems is exceptional and whose contribution to our campaign going forward will be invaluable. It is a pleasure to welcome another major oil company as a partner.

"It has been a key strategic objective for us to farm down our assets in order to facilitate exploration drilling, retain capital and mitigate risk; we are very pleased to have made progress towards this. We look forward to proving up the potential of our assets alongside our partners, as we seek to deliver long-term value to our shareholder."

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Black Raven Finalizes Stake in Adena Field

- Black Raven Finalizes Stake in Adena Field

Tuesday, August 02, 2011
Black Raven Energy Inc.

Black Raven has completed the purchase of an 80% working interest in the Adena Field, consisting of 18,760 gross acres in Morgan County, Colorado, for a purchase price of $15.75 million. The Company will operate the field. The Company has entered into an agreement with a strategic partner which will provide geological, engineering, and management services associated with this project and will earn 24% of the Company's working interest after payout of all costs, including financing.

The Adena Field produces oil from a waterflood in the J sand and conventionally from the D sand. The Company estimates that the proved and probable oil reserves associated with this field are in excess of 3 million barrels from both formations. In addition, a gas cap in the J sand is estimated to hold more than 3 billion cubic feet of recoverable natural gas. Having produced 75 million barrels of oil equivalent from the J sand since its discovery in 1953, the Adena Field is one of the most prolific oil fields in the history of the D-J Basin. The majority of this field was abandoned during the mid 1980's after oil prices collapsed, and only a small portion has been re-activated. The Company intends re-activate the J sand waterflood and exploit the D sand, which has been largely untapped.

Black Raven's CEO, Thomas E. Riley, commented, "We are very pleased to complete this acquisition. We have been working on this for several months, and have been very pleasantly surprised at the wealth of opportunities presented by this acquisition. For a small company with a great technical staff, this field will provide growth in oil and natural gas production for the foreseeable future."

The acquisition was financed by Carlyle Energy Mezzanine Opportunities Fund, New York, New York. The Company was advised on the acquisition and financing by Stifel Nicolaus Weisel.

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GDF Suez Takes ExxonMobil's Stake Offshore Norway

- GDF Suez Takes ExxonMobil's Stake Offshore Norway

Thursday, July 28, 2011
GDF Suez

GDF Suez announced an important milestone in the development of its portfolio of exploration & production assets. The operations are located in a mature area in Norway.

The Group acquired an additional 20% share in the offshore Njord field and in Noatun discovery in Norway, from ExxonMobil Exploration & Production Norway AS. GDF Suez E&P Norge AS therefore becomes the first shareholder in this license with a 40% interest, alongside Statoil (20%, operator), E.ON Ruhrgas (30%), Faroe Petroleum (7.5%) and VNG (2.5%).

Jean-Marie Dauger, Executive Vice President of GDF Suez, in charge of the Global Gas & LNG Business Line, explained, "These [...] operations highlight the GDF Suez E&P's strategy and successful implementation: a balanced portfolio with a strong presence in mature areas, such as Njord in Norway."

The Njord area in the Norwegian Sea is very active. The North-West Flank which is part of the Njord license is currently being drilled from Njord whilst the fast track development Hyme (ex Gygrid) recently approved by the Ministry of Petroleum and Energy will be tied back to and processed at the Njord facilities. The start of the Low Pressure Production project on the Njord field in 2013 will increase the recovery rate and extend the life of the field, in production since 1997. Entered in the licence late 2000, GDF Suez intends to speed up development of other discoveries in this area, thus expanding the life time of the Njord platform then used as a hub for the area. The transaction is subject to approval from the Norwegian Authorities.

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Afren Increases Stake in Madagascar Block

- Afren Increases Stake in Madagascar Block

Monday, July 25, 2011
Afren plc

Afren announced that Government approvals have been received for Afren to assume operatorship and increase its interest in Block 1101, onshore Madagascar, to 90 percent. and a revised work program agreed.

Highlights

• Afren interest increased to 90 percent. from 40 percent. (reassignment of 50 percent. from Candax Energy to Afren)
• Afren assumes operatorship
• Work program of first two exploration phases now combined, with an additional 150 km of 2D seismic to be acquired
• Undertaken to drill one commitment exploration well; drilling now planned in 2012

Block overview

Block 1101 is located on the Eastern flank of the Ambilobe basin in Northern Madagascar. The Block encompasses an area of approximately 14,900 km2 onshore and lies adjacent to ExxonMobil's Ampasindava Block. The formation of the Ambilobe basin and the corresponding stratigraphic suites are closely related to the break-up of Gondwanaland and the later separation of eastern Gondwana. There are proven, large heavy oil accumulations in the Isalo formation in Central Madagascar (Bermolanga and Tsimiroro) which attest to the prospectivity of the region.

Some 220 km of 2D seismic was acquired over the block in 2008, identifying three major structures each close to existing wells with recorded oil shows. A working hydrocarbon system on the block is further evidenced by surface oil seeps.

Terms of reassignment and work program

Under the agreed terms of reassignment, Afren has increased its overall participation in Block 1101 to a 90 percent. operated interest through the reassignment of a 50 percent. interest previously held by Candax Energy, who remain partners on the block with a 10 percent. interest. Government approvals for the reassignment have been received and a revised work program agreed with OMNIS, the state oil and gas agency. The agreed work program has combined the first two exploration phases on the block and requires the drilling of one exploration well to a minimum depth of 1,600 meters. The partners have also agreed to acquire an additional 150 km of new 2D seismic. Under the revised ownership structure and work program, it is expected that drilling will now commence in 2012.

Osman Shahenshah, Chief Executive of Afren plc commented, "We see tremendous prospectivity in Madagascar and now, as operator, are keen to explore our high potential acreage. We are grateful to OMNIS and the Malagasy authorities for their endorsement and approval of this transaction and extended work program. We look forward to collaborating with our hosts and partner Candax in the ongoing exploration at Block 1101, and to further establishing Afren's long term commitment to this exciting exploration play."

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Songa to Buy Remaining Stake in Semisub

- Songa to Buy Remaining Stake in Semisub

Monday, July 25, 2011
Songa Offshore SE

Songa has entered into an agreement with the minority shareholders in Songa Eclipse to acquire the remaining 48.1% stake, following which Songa will have obtained 100% ownership. The transaction is expected to be completed at delivery of the Rig, subject to inter alia Songa securing the necessary take-out financing. The sellers of the shares are sub-funds of Sector Umbrella Trust managed by Sector Omega ASA (35.1%) and Pareto World Wide Offshore AS (13.1%) (the "Sellers").

Under the terms of the agreement, Songa will acquire the shares for USD 65 million as well as a conditional bonus payment to be made within 18 months from delivery of the Rig.

The conditional bonus payment will be calculated on the basis of the Rig's fair market value at the time of notice by the Seller less the purchase price already paid by Songa.

This new agreement enables Songa to optimize the financing of Songa Eclipse as a 100% owner, and replaces the current agreement between Songa and the Sellers, as described in the press release sent out by Songa on 24 March 2010. Songa is in the process of financing the rig with its existing banking group, and expects to get this in place prior to delivery of the Rig.

Through this transaction, Songa has obtained full ownership of its first modern ultra-deepwater semi-submersible Rig and should be seen as part of the Company's overall strategy to renew its fleet. Songa has been able to secure this position within 16 months from the initial investment, with a gradually increasing ownership. The weighted average total rig cost for Songa before the remaining bonus payment is estimated to be USD 660 million.

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DONG Energy to Take Stake in Siri Field

- DONG Energy to Take Stake in Siri Field

Monday, July 25, 2011
DONG Energy

DONG Energy, the Operator of the Siri field in the Danish sector of the North Sea, and its license partner Noreco have settled on an agreement for DONG Energy to acquire Noreco's 50 percent interest in the Siri field with an acquisition cost of approximately 70 DKK million (13 million USD) with effect from July 1st 2011. DONG Energy will be sole owner of the Siri field. The agreement is subject to customary regulatory approvals, and all conditions of the agreement are expected to be finally resolved before the year-end.

The agreement means that DONG Energy in agreement with Noreco can continue and fully implement the repair work on the cracks that were revealed in parts of the platform's subsea structure in 2009, so the platform can continue to be operated safely and responsibly.

The price reflects the fact that DONG Energy will take over revenues and expenses related to Noreco's share of the Siri license - including the repair costs of the subsea structure. As previously announced, the total estimated repair costs are approximately DKK 2 billion.

The agreement will have effect from July 1st 2011, but Noreco has the right to sell its interest or a part of it to a third party before August 30th 2011, provided that the buyer takes over all of Noreco's rights and obligations, including being required to meet its share's cost of the repair work.

"We are pleased to have a constructive agreement in place so we can carry out the repair work, which we regard as necessary in order to continue safe production from the Siri field and its associated satellite fields for many years to come," said Søren Gath Hansen, Executive Vice President of DONG Energy.

The agreement to acquire Noreco's interest in the Siri field does not comprise the satellite fields outside the Siri license. In 2010, the Siri field produced 1.8 million barrels of oil, including the Stine field, which is a satellite of Siri within the Siri license.

The costs for the permanent solution will be operating costs for DONG Energy and will, as previously announced, be spread over 2011 and 2012. The increased operating costs are expected in 2011 to be only partially offset by an increased share of production from the Siri field.

However, the information provided in this announcement does not change DONG Energy's previous financial guidance for the 2011 financial year or the expected investment level announced.

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