Statoil Submits Gas Compression Plan to Ramp Asgard Volumes

- Statoil Submits Gas Compression Plan to Ramp Asgard Volumes

Tuesday, August 16, 2011
Statoil

The partners in the Åsgard licenses have submitted a plan for development and operation (PDO) of subsea gas compression to maintain production from the Mikkel and Midgard reservoirs.

Øystein Michelsen, Statoil's executive vice president for Development and Production Norway (DPN), presented the PDO to Ola Borten Moe, Norway's minister for petroleum and energy.

"The decision to improve recovery from Åsgard is one of the most important we are taking this year to sustain output on the Norwegian continental shelf," said Michelsen.

"This solution has been made possible through an innovative partnership on the Åsgard license."

The PDO represents a quantum leap in technological terms, which could contribute to a substantial boost in recovery factor and production life for a number of gas fields.

Subsea compression on Åsgard is expected to improve recovery from the Mikkel and Midgard fields by some 278 million barrels of oil equivalent.

That makes the project one of the most important contributors to new volumes, and provides future opportunities for improved recovery from a number of fields.

Quantum leap

Natural pressure in Midgard and Mikkel will become too low over time to maintain stable flow and a high production profile from the Åsgard B platform in the Norwegian Sea.

To compensate for this decline, Statoil intends to install seabed compressors near the wellheads and so increase the pressure. Wellstreams will be piped in a common line to Åsgard B.

"This represents a quantum leap in subsea technology, and an important step in realizing our vision of a complete underwater plant," said Margareth Øvrum, Statoil's executive vice president for Technology, Projects and Drilling.

"The technology has a substantial potential for improving recovery," she added, and emphasized that it is important for future field development in deep water and Arctic regions.

"Testing and qualifying new solutions is vital to the success of our technological developments," Øvrum noted. "We have already come a long way, but know that the remaining stretch will be a demanding one.

"Developing technology is always challenging, but we have surmounted technological obstacles before and are confident that we will succeed in doing so again on Åsgard together with our partners."

She adds that substantial synergy exists between technological qualification on Åsgard and the work being done by Statoil together with operator Shell on the Ormen Lange gas field.

Åsgard's bright future

Åsgard is a crucial hub on the Halten Bank and a key factor in the Norwegian Sea. Subsea compression from Mikkel and Midgard will safeguard future production from the field, said Michelsen.

Statoil is working continuously on other measures to improve recovery in the same area – including reducing processing pressure, drilling and maintaining wells, and applying innovative solutions.

Åsgard is an important hub in a prospective area, and spare processing capacity which becomes available in its facilities can also be offered to others.

"Our vision is a field which is still producing in 2050 with a recovery factor among the best in the world," said Michelsen.

The subsea compression development will also expand capacity in the Åsgard Transport pipeline, which carries gas from Norwegian Sea installations to the Kårstø plant north of Stavanger.

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Gulf Keystone Focused on Adding Volumes to Iraqi Blocks

- Gulf Keystone Focused on Adding Volumes to Iraqi Blocks

Thursday, June 16, 2011
Gulf Keystone Petroleum Ltd.

Gulf Keystone provided an update on its operations in the Kurdistan Region of Iraq highlighting that:

• Shaikan-2 deep appraisal well is currently at a depth of 3,166 meters with the final total depth (TD) still planned for the lower Triassic or the upper Permian
• Sheikh Adi-1 exploration well is currently at a depth of 3,515 meters in the Triassic Kurre Chine B and a cased hole testing program will be undertaken once the drilling has reached TD
• After spudding on May 27, 2011, the Shaikan-4 deep appraisal well is currently at a depth of 462 meters
• Preliminary results of the Shaikan 3D seismic data interpretation suggest a larger structure (by 5-10%) than originally mapped based on the earlier 2D seismic data
• Bekhme-1 exploration well on the Akri-Bijeel block is drilling ahead at a depth of 2,828 meters.

John Gerstenlauer, Gulf Keystone's Chief Operating Officer commented, "With three Gulf Keystone wells underway on the Shaikan and Sheikh Adi blocks, the second exploration well being drilled in partnership with MOL on the Akri-Bijeel block, and the first exploration well expected to be drilled on the Ber Bahr block in partnership with Genel later in 2011, we are firmly focused on adding further oil-in-place volumes in all four blocks in the Kurdistan Region of Iraq."

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Range Boosts Production in 1Q 2011

Range Boosts Production in 1Q 2011

Tuesday, April 19, 2011
Range Resources Corp.

Range provided an operations update. First quarter production volumes averaged 545.5 Mmcfe net per day, a 17% increase over the prior-year period and 1% higher than fourth quarter 2010. The record production marked the Company's 33rd consecutive quarter of sequential production growth. Production was 79% natural gas, 16% natural gas liquids (NGLs) and 5% crude oil. Targeted drilling to the liquids-rich portion of the Marcellus Shale play in Pennsylvania and the Midcontinent regions drove the production growth. First quarter 2011 production was 16% NGLs versus 12% for first quarter of 2010.

The Company also announced that its preliminary first quarter 2011 commodity price realizations (including the impact of cash-settled hedges and derivative settlements which would correspond to analysts' estimates) averaged $5.46 per mcfe. This represents a 2% decrease from the prior-year period, but a 2% increase as compared to the fourth quarter 2010. Preliminary first quarter production and realized prices by each commodity are: natural gas – 429.9 Mmcfe per day ($4.40), natural gas liquids – 14,338 barrels per day ($47.96) and crude oil – 4,924 barrels per day ($81.35).

Commenting on the announcement, John Pinkerton, Range's Chairman and CEO, said, "Despite the unusually cold weather conditions we incurred in the first quarter, we were able to reach the mid-point of our production guidance. Adjusting for the weather related downtime, we would have exceeded the high end of our guidance. Our operating teams did an outstanding job battling some of the most brutal weather conditions we have experienced in many years. Looking ahead, due to the terrific drilling results so far this year, combined with the progress of the infrastructure projects, we are well on track to reach our production growth target for the year. In addition, the Barnett sale is on schedule to close at the end of the month."

Marcellus Shale Division

We exited the first quarter at approximately 260 Mmcfe per day net from the Marcellus Shale, up from approximately 200 Mmcfe per day at year-end 2010. During the first quarter, the Marcellus Division brought online 26 horizontal wells in southwest Pennsylvania, 15 of which were located in the liquids-rich area of the play. The initial production rates of the 15 new wells averaged 7.4 (6.3 net) Mmcf per day of natural gas and 452 (384 net) barrels of NGLs and condensate per day or 10.1 (8.6 net) Mmcfe per day. An additional 16 wells were completed in southwest Pennsylvania during the first quarter that are awaiting connection to the gathering system. In northeast Pennsylvania, Range brought on its first five wells in Lycoming County at a combined initial production rate of 45 (39 net) Mmcf per day in mid-February.

Due to the outstanding performance of its existing wells combined with the initial performance of the newly connected wells, Range's Marcellus production has temporarily outgrown the existing infrastructure. In southwestern Pennsylvania, the third expansion of the gas processing facilities has been completed and is in the testing phase. This 200 Mmcf per day of additional processing capacity is expected to commence operation in May. With this expansion, Range's total processing capacity will expand to 350 Mmcf per day. Later in the third quarter, Range's processing capacity is scheduled to increase again to 390 Mmcf per day. In northeast Pennsylvania, the next expansion of the Lycoming County gathering system is scheduled to be completed late in the third quarter which will tie in an additional 20 wells.

Range has entered into two memorandums of understanding exploring options to sell ethane from the liquids-rich area in southwest Pennsylvania. Range plans to complete firm ethane sales agreements in the next 12 months covering a significant portion of its projected ethane production.

Midcontinent Division

First quarter activity for the Midcontinent Division focused on drilling operations in several key areas. One rig remains active in the Texas Panhandle, where two Granite Wash wells and one vertical St. Louis exploratory well are undergoing completion. Range's original horizontal St. Louis Lime well continues to perform above expectations. After 12 weeks of production, the well has produced more than 1.0 Bcfe with current rates still at 13.0 Mmcf of natural gas and over 900 barrels of liquids per day or 18.4 (5.6 net) Mmcfe per day. Activity in the Ardmore Basin Woodford play continues with four wells in various stages of completion. Production from these liquids-rich completions is expected to reach sales by the end of the second quarter. One operated rig is currently running in the play, along with additional non-operated activity. Drilling also continues in the Mississippian Lime play of northern Oklahoma with one operated rig and one non-operated rig in the Woodford "Cana" Shale play of the Anadarko Basin.

Appalachian Division

During the first quarter of 2011, the Appalachian Division continued to focus on tight gas sand and coal bed methane (CBM) drilling projects on its 350,000 (235,000 net) acres in Virginia. All of this acreage is either owned or held by production allowing for discretionary drilling with no lease expiration issues. In 2011, Range plans 50 tight gas sand wells, 15 CBM wells and 15 horizontal wells targeting the Huron Shale, Berea and Big Lime formations in Virginia. For the first quarter, the division drilled 5 (4.5 net) vertical tight gas sand wells and one CBM well in the Nora field. Also in the quarter, Range performed 8 recompletions of behind-pipe pays to continue to maximize production on existing wells.

Southwest Division

In the first quarter the Southwest Division drilled its first Penn Shale well in the Conger Field of West Texas where Range has approximately 91,000 net acres. The well has a lateral length of 4,000 feet and will be completed with a multi-stage fracture treatment later in the second quarter.