Surge Issues Update on Valhalla South Ops

- Surge Issues Update on Valhalla South Ops

Monday, September 12, 2011
Surge Energy Inc.

Surge Energy Inc. on Monday provided the results of its fifth horizontal multi-frac well at Valhalla South, and to announce that it has confirmed its bank line at $150 million.

Operations Update:

Surge provided the following operations update with respect to its Valhalla property due to drilling results which are believed to be material.

Surge's fifth horizontal well (16-7-74-8W6M; 100 percent working interest "WI") in the Valhalla South Doig light oil pool (40 degree API) has been successfully drilled and completed. The well encountered approximately 820 meters of Doig Formation and was completed with nine frac stages averaging approximately 30 Tonnes of proppant per frac. A five day flow test on the well has been recently completed, resulting in flow rates averaging 1,992 boe per day (78 percent light oil and NGLs) with the last day of the test flowing at a rate of 1,866 boe per day (72 percent light oil and NGLs). The well produced through the 114.3mm (4.5") tie back liner.

This five day rate for 16-7, is comparable to that of Surge's previously announced horizontal multi-frac well at 11-18-074-08W6 (71 percent WI), which had a five day flow test rate of 1,979 boe per day (82 percent light oil and NGLs) with the last day of testing flowing at a rate of 1,903 boe per day (77 percent light oil and NGLs). The 11-18 well averaged approximately 1,180 boe per day (72 percent light oil and NGLs) for the first 30 producing days which is well above the Company's type curve for the area (675 boe per day), and it was producing approximately 870 boe per day (73 percent light oil and NGLs) on September 1, 2011 when it was last tested. The first month average production rate for Surge's 16-7 well is expected to be in line with results from 11-18.

Surge began drilling its sixth horizontal multi-frac well into the pool (8-31-073-08W6; 100 percent WI) during August 2011 with plans of having production on stream in the fourth quarter of 2011. The Company has one more horizontal multi-frac well (11-5-074-08W6; 100 percent WI) budgeted for the remainder of 2011 for a total of seven gross horizontal multi-frac wells budgeted for 2011.

In addition to operations at Valhalla South, Surge is actively drilling in each of its other core areas at Windfall, Waskada and South East Alberta. At Windfall, the Company has recently drilled and completed its sixth horizontal multi-frac well and is currently drilling its seventh well into the Bluesky light oil pool (36 degree API). At Waskada, Surge has commenced its nine horizontal multi-frac well drilling program targeting the Spearfish light oil Formation (36 degree API) and now has three wells drilled and cased. In South East Alberta, the Company continues to exploit its low cost, low decline, high rate of return crude oil assets via infill drilling and waterflood. Surge will drill a combination of vertical and horizontal wells in the area during the third and fourth quarters of 2011.

Increase in Bank Line:

Surge has recently confirmed the Company's bank line at $150 million, up from $120 million. The increase is subject to standard legal documentation which is in the process of being finalized.

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BOEMRE Issues Final Update on Lee Evacuations

- BOEMRE Issues Final Update on Lee Evacuations

Friday, September 09, 2011
BOEMRE

The Bureau of Ocean Energy Management, Regulation, and Enforcement (BOEMRE) Hurricane Response Team is concluding its activities related to Tropical Storm Lee. This is the final update of evacuation and shut-in production statistics for Tropical Storm Lee.

Based on data from offshore operator reports submitted as of 11:30 a.m. CDT today, personnel remain evacuated from a total of 4 production platforms, equivalent to 0.7 percent of the 617 manned platforms in the Gulf of Mexico. Production platforms are the structures located offshore from which oil and natural gas are produced. Unlike drilling rigs, which typically move from location to location, production facilities remain in the same location throughout a project’s duration

None of the 70 rigs currently operating in the Gulf remain evacuated. Rigs can include several types of self-contained offshore drilling facilities including jackup rigs, submersibles and semisubmersibles.

As part of the evacuation process, personnel activate the applicable shut-in procedure, which can frequently be accomplished from a remote location. This involves closing the sub-surface safety valves located below the surface of the ocean floor to prevent the release of oil or gas. During the recent hurricane seasons, the shut-in valves functioned 100 percent of the time, efficiently shutting in production from wells on the Outer Continental Shelf and protecting the marine and coastal environments. Shutting-in oil and gas production is a standard procedure conducted by industry for safety and environmental reasons.

From operator reports, it is estimated that approximately 6.2 percent of the current oil production in the Gulf of Mexico has been shut-in. It is also estimated that approximately 4.0 percent of the natural gas production in the Gulf of Mexico has been shut-in. The production percentages are calculated using information submitted by offshore operators in daily reports. Shut-in production information included in these reports is based on the amount of oil and gas the operator expected to produce that day. The shut-in production figures therefore are estimates, which BOEMRE compares to historical production reports to ensure the estimates follow a logical pattern.

After the storm has passed, facilities are inspected. Once all standard checks have been completed, production from undamaged facilities will be brought back on line immediately. Facilities sustaining damage may take longer to bring back on line. BOEMRE will no longer report Tropical Storm Lee statistics.

This survey information is reflective of 21 companies’ reports as of 11:30 a.m. CDT today.

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BOEMRE Reports Final Update on Tropical Storm Don

- BOEMRE Reports Final Update on Tropical Storm Don

Monday, August 01, 2011
BOEMRE

The Bureau of Ocean Energy Management, Regulation, and Enforcement (BOEMRE) Hurricane Response Team is concluding its activities related to Tropical Storm Don.

This is the final update of evacuation and shut-in production statistics for Tropical Storm Don.

Based on data from offshore operator reports submitted as of 11:30 a.m. CDT today, none of the 617 manned production platforms in the Gulf of Mexico remain evacuated. Production platforms are the structures located offshore from which oil and natural gas are produced. Unlike drilling rigs, which typically move from location to location, production facilities remain in the same location throughout a project’s duration.

None of the 62 rigs currently operating in the Gulf remain evacuated. Rigs can include several types of self-contained offshore drilling facilities including jackup rigs, submersibles and semisubmersibles.

As part of the evacuation process, personnel activate the applicable shut-in procedure, which can frequently be accomplished from a remote location. This involves closing the sub-surface safety valves located below the surface of the ocean floor to prevent the release of oil or gas. During the recent hurricane seasons, the shut-in valves functioned 100 percent of the time, efficiently shutting in production from wells on the Outer Continental Shelf and protecting the marine and coastal environments. Shutting-in oil and gas production is a standard procedure conducted by industry for safety and environmental reasons.

From operator reports, it is estimated that approximately 2.3 percent of the current oil production in the Gulf of Mexico has been shut-in. It is also estimated that approximately 0.9 percent of the natural gas production in the Gulf of Mexico has been shut-in. The remaining shut-in production is not associated with any reported damage.

The production percentages are calculated using information submitted by offshore operators in daily reports. Shut-in production information included in these reports is based on the amount of oil and gas the operator expected to produce that day. The shut-in production figures therefore are estimates, which BOEMRE compares to historical production reports to ensure the estimates follow a logical pattern.

After the tropical storm passes, facilities are inspected. Once all standard checks have been completed, production from undamaged facilities is brought back on line immediately. Facilities sustaining damage may take longer to bring back on line. BOEMRE will no longer report Tropical Storm Don statistics.

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Department of Energy Grants DTE Energy $5.4M

- Department of Energy Grants DTE Energy $5.4M



Jul 14, 2011

DTE Energy (NYSE:DTE) received a $5.4 million federal grant through the Clean Energy Coalition to fund the conversion of more than 170 gasoline-powered fleet vehicles to use compacted natural gas.

The grant that was awarded to Clean Energy Coalition's Green Fleets program by the U.S. Department of Energy under the American Recovery and Reinvestment Act also pays for the building of two new CNG fueling stations and the refurbishment of 11 others across the state of Michigan.

DTE Energy has a potential upside of 1.3% based on a current price of $50.08 and an average consensus analyst price target of $50.71.

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ConocoPhillips to Split Into Two Next Year

- ConocoPhillips to Split Into Two Next Year



Jul 14, 2011

ConocoPhillips (NYSE:COP) announced Thursday that it will be splitting into two companies. The division should take place sometime in the first half of 2012.

James J. Mulva, the ConocoPhillips chairman and chief executive, said in a statement, "We have concluded that two independent companies focused on their respective industries will be better positioned to pursue their individually focused business strategies."

ConocoPhillips has a potential upside of 13.4% based on a current price of $74.4 and an average consensus analyst price target of $84.38.

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GE Unit Receives $45M Contract to supply TLP Tensioner System for Chevron

- GE Unit Receives $45M Contract to supply TLP Tensioner System for Chevron



Jul 6, 2011

GE (NYSE:GE) Oil & Gas' Drilling & Production business has been awarded a contract of approximately $45M to supply and service the industry's largest tension leg platform to Chevron (NYSE:CVX) for deployment in its Big Foot oil and gas field in the deepwater Gulf of Mexico. Installation of the TLP is scheduled to begin in November 2012 and first oil is expected in 2014.

Chevron has a potential upside of 17.1% based on a current price of $104.86 and an average consensus analyst price target of $122.75.

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Apache Corp Announced The Results Of Two Development Wells

- Apache Corp Announced The Results Of Two Development Wells



Jul 6, 2011

Apache Corp. (NASDAQ:APA) announced the results of two development wells completed in June at the company's Forties field in the UK sector of the North Sea.

Charlie 4-3 commenced production at a rate of 12,567 barrels of oil per day (b/d), which is the highest in the Forties since 1990 and follows the previously disclosed Charlie 2-2, completed in March with an initial production rate of 11,876 b/d. Delta 3-5 commenced production at 8,781 b/d.

The company acquired a new 4-D seismic survey over Forties during 2010, enhancing the company's ability to identify accumulations of by-passed oil within the field area.

James L. House, region vice president and managing director of Apache North Sea Ltd. said, "The safe and very successful delivery of our 2011 drilling program reflects the experience, teamwork, technical skill and commitment of the Apache North Sea region."

Apache has a potential upside of 18.1% based on a current price of $124.49 and an average consensus analyst price target of $147.05.

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Ford Motor Marks Completion of $500 Million South African Investment

- Ford Motor Marks Completion of $500 Million South African Investment



Jun 30, 2011

Ford Motor Co (NYSE:F) marked the completion this week of its $500 million investment in its South African operations.

The company has spent the last two years expanding its Struandale engine plant in Port Elizabeth, increasing its capacity to 75,000 diesels and 220,000 engine component kits, and its Silverton Assembly Plant in Pretoria to produce the all-new ford Ranger for export.

The Ranger will be exported from South Africa to 148 markets around the world. To meet that demand, capacity at the Silverton Plant was increased to 110,000 of the pickups annually.

Jeff Nemeth, president of Ford Motor Co. of Southern Africa, said in an interview Tuesday with the Detroit News that "somewhere down the pike, Africa will hit that growth curve as well,"

Ford currently has about 10% market share in South Africa, behind Toyota, Volkswagen, and General Motors, Nemeth said. The company employs 2,900 workers in the country and has 127 dealers.

Shares of Ford Motor are trading up 3.84% at $13.94.

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SM Energy Selling 12.5% Interest in Eagle Ford Shale Position to Mitsui & Co for $680 Million

- SM Energy Selling 12.5% Interest in Eagle Ford Shale Position to Mitsui & Co for $680 Million



Jun 29, 2011

SM Energy Company (NYSE:SM) announced today the sale of a 12.5% interest in its non-operated Eagle Ford shale position to a subsidiary of Mitsui & Co for $680 million.

After the close of this sale, as well as the previously announced divestiture of assets in LaSalle and Dimmit Counties, SM Energy will have roughly 196,000 net acres in the Eagle Ford shale, of which about 75% will be operated by the company.

Because the transactions are expected to close later in the year than originally anticipated and SM Energy is retaining a larger position in Eagle Ford than was originally assumed, reported production and capital expenditures for the year will exceed the company's previously announced guidance.

A full update to capital, production, and cost guidance for the remainder of 2011, as well as preliminary capital and production guidance for FY 2012, will be included in the company's second quarter earnings release.

Tony Best, President and CEO, remarked, "I am pleased to announce the final phase of our planned Eagle Ford sell down effort. Combined with our previously announced LaSalle and Dimmit Counties Eagle Ford divestiture, we are generating nearly $1 billion in funds that will allow us to further develop our Eagle Ford assets while locking in some solid returns and maintaining a strong balance sheet. This specific transaction allows us to continue participating in the development of high value Eagle Ford assets, while providing us more control over our capital investment decisions."

Shares of SM Energy are trading up 7.81% at $71.9.

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Cimarex Entered Into An Agreement To Sell Its Interest In RIley Ridge Federal Unit and Gas Plant

- Cimarex Entered Into An Agreement To Sell Its Interest In RIley Ridge Federal Unit and Gas Plant



Jun 28, 2011

Cimarex (NYSE:XEC) announced that it entered into an agreement to sell for $191 million its 57.5% operated working interest in the Riley Ridge Federal Unit and gas plant located in southwestern Wyoming. The sale is expected to close in July and is subject to satisfactory completion of customary due diligence.

The sale does not impact the company's expected 2011 production estimates, as the plant was not expected to come online until later this year.

Cimarex Energy has a potential upside of 39.2% based on a current price of $86.76 and an average consensus analyst price target of $120.73.

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Moody's Cuts Toyota's Credit Rating to Aa3

- Moody's Cuts Toyota's Credit Rating to Aa3



Jun 28, 2011

Moody's Investors Service cut Toyota's credit rating one level to Aa3 today, the rating service's fourth highest rating.

The agency cited the company's slow slog towards profit recovery in the face of shrinking market share, a historically very strong yen, and high raw material prices.

Moody's said another downgrade was possible because Toyota's ratings "incorporate one notch of support from the country's banks and government, which are themselves under review for possible downgrade."

The company's May production levels still reflect the complete devastation wrought on the company, and the country, by the March 11 earthquake and tsunami, as worldwide production was still down 49.3% from a year ago.

Toyota said its production is up to 90% of normal levels now, and it plans to bring that number nearer to 100% in July.

Shares of Toyota Motor are trading up 0.4% at $80.06.

Toyota Motor has a potential upside of 15.4% based on a current price of $80.06 and an average consensus analyst price target of $92.4.

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Southern Union Sharing Information With Williams in Defiance of Energy Transfer

- Southern Union Sharing Information With Williams in Defiance of Energy Transfer



Jun 28, 2011

Southern Union Co (NYSE:SUG) has begun the process of providing takeover suitor Williams Cos. (NYSE:WMB) with confidential business information, according to a filing today with the SEC.

That's despite a warning from the company's original acquisition partner Energy Transfer Equity (NYSE:ETE) that doing so would be in violation of their signed agreement.

Williams offered $4.9 billion, all in cash, for Southern Union last week.

While Energy Transfer maintains that its $4.2 billion offer is still superior due to its deferred tax structure, things aren't looking good for the company.

Shares of The Williams Cos are trading up 2.33% at $29.47.

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Consumer Confidence Falls to Lowest Level in Eight Months

- Consumer Confidence Falls to Lowest Level in Eight Months



Jun 28, 2011

The Conference Board's Consumer Confidence Index declined again in June, down to 58.5 from an upwardly revised 61.7 in May, its lowest level in eight months.

Economists had been expecting a much smaller drop to 60.5. The Present Situation Index fell to 37.6 from 39.3, and The Expectations Index decline to 72.4 from 76.7.

Lynn Franco, Director of The Conference Board Consumer Research Center said, "This month's decline in consumer confidence was driven by a less favorable assessment of current conditions and continued pessimism about the short-term outlook. Consumers rated both current business and labor market conditions less favorably than in May, and fewer consumers than last month foresee conditions improving over the next six months. Inflation fears eased considerably in June, but concerns about income prospects increased. Given the combination of uneasiness about the economic outlook and future earnings, consumers are likely to continue weighing their spending decisions quite carefully."

Consumers were pessimistic about the job market over the next six months, as just 14.2% now anticipate more jobs over the next six months, down from 16.7% last month, while the number of people expecting fewer jobs remained unchanged at 20.3%.

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UBS Upgrades Spectra Energy to Buy, Maintains $34 Target Price

- UBS Upgrades Spectra Energy to Buy, Maintains $34 Target Price



Jun 28, 2011

UBS upgraded Spectra Energy Partners LP (NYSE:SE) to buy from neutral today and maintained its $34 target price for the stock.

The bank cited valuation, as a 6% slide year-to-date provides an attractive entry point. The slide is due in part to a recent equity raise to fund its Big Sandy Pipeline purchase.

The company has a proven strategy and visible distribution growth, with ample distribution coverage, and a track record of successful acquisitions as well as organic growth initiatives, according to UBS.

Spectra Energy has a potential upside of 12.9% based on a current price of $26.68 and an average consensus analyst price target of $30.11.

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General Electric appoints new Chief Engineer for GE Aviation

- General Electric appoints new Chief Engineer for GE Aviation



Jun 28, 2011

Gary D. Mercer, 52, has been named VP and Chief Engineer for GE Aviation (NYSE:GE). Mercer will provide leadership for flight safety and airworthiness, serving as the key interface with our external customers that govern flight safety and certification processes. Mercer has been with GE for 26 years. He began his career with Aviation as a Design Engineer for Military and Commercial Structures before moving to GE Energy where he held several key leadership positions including Senior General Manager Engineering for Oil & Gas and Renewables before rejoining the Aviation business in 2011.

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PDC Energy Announced It Entered Into Merger Agreements

- PDC Energy Announced It Entered Into Merger Agreements



Jun 28, 2011

PDC Energy (NASDAQ:PETD) announced it has entered into merger agreements pursuant to which it intends to acquire five limited partnerships for which the company serves as the Managing General Partner. Four of the limited partnerships were formed in 2003 and one was formed in 2002.

The company will acquire all limited partnership units if the proposed mergers are approved and other customary conditions to closing are satisfied.

PDC Energy expects the total cost to consummate all five mergers will be about $29.5 million.

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General Electric Expects to Win $10 Billion Worth of Contracts at Paris Air Show

- General Electric Expects to Win $10 Billion Worth of Contracts at Paris Air Show



Jun 21, 2011

Executives of General Electric (NYSE:GE) said on Tuesday that they expect to win more than $10 billion worth of new orders at the Paris Air Show occurring this week, led by orders for its new engines and expanding business services.

The company also said it saw the potential to supply engines and other systems for 3,000 of Comac Ltds C919s, 33% more than its previous estimate. Comac, founded in 2008, is a Chinese aircraft manufacturer that has yet to begin selling its planes on the market. The C919 is projected to begin deliveries in 2016.

David Joyce, CEO of the GE Aviation unit, said he also saw the opportunity to provide 4,000 of the new A320neo range from Airbus. He added that the company's chief focus is on emerging markets, but that he also sees the potential for 2,000 replacement aircraft in North America.

General Electric has a potential upside of 28.7% based on a current price of $18.82 and an average consensus analyst price target of $24.21.

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Total Completes Tender Offer With SunPower, 60% Stake Acquired for $1.4 Billion

- Total Completes Tender Offer With SunPower, 60% Stake Acquired for $1.4 Billion



Jun 21, 2011

Total S.A. (NYSE:TOT) and SunPower Corp (NASDAQ:SPWRA) announced today the final results of Total's all-cash tender offer for shares of SunPower and confirmed the success of the transaction.

Total now owns 60% of both SunPower's Class A and Class B common stock, the companies said in the announcement.

Total has accepted for payment an aggregate of about 34.7 million shares of Class A stock, and 25.2 million shares of class B stock, at a purchase price of $23.25 per share, for a total cost of approximately $1.4 billion.

The tender offer, announced in April, has been noted as being fairly odd, as the stock never traded at the offering price of $23.25 per share.

SunPower's shares will continue to trade on the Nasdaq exchange under the symbols "SPWRA" and "SPWRB."

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Energy Sector Update: June 14, 2011

- Energy Sector Update: June 14, 2011



Jun 14, 2011

Energy shares are higher mid-day as the broader market is looking to regain lost ground. Light, sweet crude oil for July delivery traded up 1.5% to $98.78 a barrel. Cloud Peak Energy (NYSE:CLD), a U.S. coal producer, today, announced an agreement with Westshore Terminals LP to permit coal shipments through the Westshore Terminal in Vancouver, BC for ten years. Cloud Peak Energy exported 3.3 mln tons to Asian customers in 2010 through the terminal. The contract will commence in 2013 once the current contract ends, pending a definitive agreement between the parties.

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Piedmont Natural Gas Reports Huge Q2 Revenue Miss, EPS Off By Just $0.01

- Piedmont Natural Gas Reports Huge Q2 Revenue Miss, EPS Off By Just $0.01



Jun 8, 2011

Piedmont Natural Gas (NYSE:PNY) reported Q2 EPS of $0.66 today, falling just short of the consensus estimate for $0.67 per share. Revenues for the quarter fell 17% year-over-year to $392.57 million, coming nowhere near the consensus estimate for $490.67 million.

Piedmont's chairman, president and chief executive officer, Thomas E. Skains commented on the results, "We are pleased with our results through the first six months of 2011 and remain focused on providing customers safe and reliable natural gas service. We continue to deliver the message that natural gas is clean, efficient, domestic, and abundant, and take advantage of the growth opportunities in our markets."

The company reaffirmed its fiscal 2011 EPS guidance of $1.50 to $1.60, vs. the consensus estimate for $1.58 per share.

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