Drilling Recommenced at Petro Matad's Davsan Tolgoi Well
Thursday, April 28, 2011
Petro Matad Ltd.
Petro Matad announced that drilling operations at the Company's Davsan Tolgoi-4 well ("DT-4") have recommenced following the winter shut down.
In early December 2010 the Company suspended the drilling of the DT-4 at a depth of 1,271 meters and an orderly shutdown and hibernation was successfully carried out. In the last few weeks the Company and its drilling contractor, DQE International, have been undertaking preparatory work including the reinstatement of the drilling team and operational camp.
As previously announced the rig remained on-site throughout the winter months, it has now been re-commissioned, serviced and tested and is currently working on cleaning out the hole ahead of further drilling. Night time temperatures are still below zero, but 24 hour operations are anticipated to commence tomorrow and drilling towards the target depth of 2,020 meters is scheduled to recommence over the weekend.
Thursday, April 28, 2011
Noble Energy 1Q Earnings Fall on Charges
Noble Energy 1Q Earnings Fall on Charges
Thursday, April 28, 2011
Noble Energy Inc.
Noble reported first quarter 2011 net income of $14 million, or $0.08 per share diluted, on revenues of $899 million. The Company's first quarter 2010 net income was $237 million, or $1.34 per share diluted, on revenues of $733 million. First quarter 2011 net income includes items that are not typically considered by analysts in published estimates. Excluding the impact of these items, which were primarily unrealized commodity derivative losses and a rig standby charge in the deepwater Gulf of Mexico, first quarter 2011 adjusted net income was $240 million, or $1.35 per share diluted. Adjusted net income for the first quarter of 2010 was $138 million, or $0.78 per share diluted.
Discretionary cash flow for the first quarter 2011 was $576 million, compared to $447 million for the similar quarter in 2010. Net cash provided by operating activities was $484 million, and capital expenditures were $545 million.
Key highlights for the first quarter 2011 include:
Charles D. Davidson, Noble Energy's Chairman and CEO, commented, "Noble Energy's first quarter has delivered a great start to 2011. With high liquid volumes and pricing, combined with good cost control, the business generated very strong cash flow. Our balance sheet was further fortified with a successful debt offering, and as a result, the Company is in a very strong position. Operationally, we remain focused on delivering production and cash flow growth from our base of discovered resources and major project developments. We are excited to have active investment programs ongoing in all four of our core areas, including development of our major projects, as well as exploration, appraisal, and development drilling underway throughout our global portfolio."
Total sales volumes for the first quarter 2011 averaged 215 MBoe/d. Approximately 40 percent of the Company's sales volumes were liquids, with 31 percent international natural gas, and the remainder U.S. natural gas. Production volumes were 216 MBoe/d.
The Company's international sales volumes were 101 MBoe/d, a 25 percent increase versus the first quarter 2010. Lower facility maintenance downtime and higher liquid liftings in Equatorial Guinea resulted in a 15 MBoe/d increase. Natural gas sales in Israel were up 61 percent to 140 million cubic feet per day (MMcf/d), with the higher volumes attributable to increased overall demand for natural gas in power generation, as well as the impact of lower competing imports. In the North Sea, strong performance and additional deliverability at Dumbarton and Lochranza accounted for increased oil volumes. The Company's 2010 volumes included 30 MMcf/d of natural gas in Ecuador, where the Company's production sharing contract was terminated in late 2010.
Noble Energy's U.S. volumes were 114 MBoe/d for the first quarter of 2011. Winter storms reduced the Company's onshore U.S. volumes in the first quarter 2011 by nearly 2 MBoe/d on average. In addition, U.S. volumes do not include the approximately 6 MBoe/d of Mid-continent and Illinois basin oil assets which were sold in the third quarter 2010. In the DJ basin, first quarter 2011 volumes averaged over 56 MBoe/d, up 12 percent from the first quarter 2010. The increase is primarily attributed to ongoing vertical and horizontal drilling at Wattenberg, as well as the impact of the asset acquisition that closed in the first quarter last year. The Company experienced natural declines in various onshore natural gas plays and the deepwater Gulf of Mexico versus the first quarter last year.
Global crude oil pricing averaged $97.15 per barrel for the first quarter 2011, up 31 percent from the same period last year. Natural gas realizations in the U.S. averaged $4.07 per thousand cubic feet (Mcf), down from $5.46 per Mcf in the first quarter 2010. In Israel, natural gas realizations continue to benefit from strong global liquid markets, with pricing averaging $4.19 per Mcf. Natural gas liquid pricing in the U.S. averaged $47.80 per barrel, or 52 percent of the Company's average U.S. crude oil realization.
Total production costs per barrel of oil equivalent (Boe), including lease operating expenses, production and ad valorem taxes, and transportation were down 6 percent from the first quarter of 2010 to $7.34 per Boe. Lease operating expense was $4.75 per Boe and depreciation, depletion, and amortization was $11.42 per Boe. The Company's mix of production, with higher volumes in low-cost areas such as Equatorial Guinea and Israel, contributed to lower per unit rates versus the first quarter last year.
Exploration expense for the first quarter 2011 included $26 million of seismic expenditures, including data acquisitions in the DJ basin, offshore Nicaragua and offshore France. General and administrative expenses were up primarily related to increased staffing for the development of the Company's major development projects. The Company's adjusted effective tax rate and deferred portion were both 34 percent for the first quarter 2011.
Other operating income/expense includes an $18 million rig standby charge incurred as a result of the time required to obtain deepwater Gulf of Mexico drilling permits post the moratorium. Included in other income/expense for the first quarter 2011 is a $10 million deferred compensation charge relating to the quarterly value change of Noble Energy stock held in a benefit program.
Thursday, April 28, 2011
Noble Energy Inc.
Noble reported first quarter 2011 net income of $14 million, or $0.08 per share diluted, on revenues of $899 million. The Company's first quarter 2010 net income was $237 million, or $1.34 per share diluted, on revenues of $733 million. First quarter 2011 net income includes items that are not typically considered by analysts in published estimates. Excluding the impact of these items, which were primarily unrealized commodity derivative losses and a rig standby charge in the deepwater Gulf of Mexico, first quarter 2011 adjusted net income was $240 million, or $1.35 per share diluted. Adjusted net income for the first quarter of 2010 was $138 million, or $0.78 per share diluted.
Discretionary cash flow for the first quarter 2011 was $576 million, compared to $447 million for the similar quarter in 2010. Net cash provided by operating activities was $484 million, and capital expenditures were $545 million.
Key highlights for the first quarter 2011 include:
- Increased sales volumes 9 percent versus the first quarter 2010 to 215 thousand barrels of oil equivalent per day (MBoe/d)
- Drilled 12 additional horizontal Niobrara wells in the DJ basin, 9 of which were located in the Wattenberg field
- Received industry's first drilling permit post-moratorium to resume deepwater Gulf of Mexico drilling at the Santiago prospect
- Finalized field development drilling and well completions at the Aseng oil project offshore Equatorial Guinea
- Completed seismic acquisition of 3D data offshore Nicaragua and 2D data offshore France
- Issued $850 million of 30-year unsecured notes and enhanced liquidity position to over $3.5 billion between cash and available credit
Charles D. Davidson, Noble Energy's Chairman and CEO, commented, "Noble Energy's first quarter has delivered a great start to 2011. With high liquid volumes and pricing, combined with good cost control, the business generated very strong cash flow. Our balance sheet was further fortified with a successful debt offering, and as a result, the Company is in a very strong position. Operationally, we remain focused on delivering production and cash flow growth from our base of discovered resources and major project developments. We are excited to have active investment programs ongoing in all four of our core areas, including development of our major projects, as well as exploration, appraisal, and development drilling underway throughout our global portfolio."
Total sales volumes for the first quarter 2011 averaged 215 MBoe/d. Approximately 40 percent of the Company's sales volumes were liquids, with 31 percent international natural gas, and the remainder U.S. natural gas. Production volumes were 216 MBoe/d.
The Company's international sales volumes were 101 MBoe/d, a 25 percent increase versus the first quarter 2010. Lower facility maintenance downtime and higher liquid liftings in Equatorial Guinea resulted in a 15 MBoe/d increase. Natural gas sales in Israel were up 61 percent to 140 million cubic feet per day (MMcf/d), with the higher volumes attributable to increased overall demand for natural gas in power generation, as well as the impact of lower competing imports. In the North Sea, strong performance and additional deliverability at Dumbarton and Lochranza accounted for increased oil volumes. The Company's 2010 volumes included 30 MMcf/d of natural gas in Ecuador, where the Company's production sharing contract was terminated in late 2010.
Noble Energy's U.S. volumes were 114 MBoe/d for the first quarter of 2011. Winter storms reduced the Company's onshore U.S. volumes in the first quarter 2011 by nearly 2 MBoe/d on average. In addition, U.S. volumes do not include the approximately 6 MBoe/d of Mid-continent and Illinois basin oil assets which were sold in the third quarter 2010. In the DJ basin, first quarter 2011 volumes averaged over 56 MBoe/d, up 12 percent from the first quarter 2010. The increase is primarily attributed to ongoing vertical and horizontal drilling at Wattenberg, as well as the impact of the asset acquisition that closed in the first quarter last year. The Company experienced natural declines in various onshore natural gas plays and the deepwater Gulf of Mexico versus the first quarter last year.
Global crude oil pricing averaged $97.15 per barrel for the first quarter 2011, up 31 percent from the same period last year. Natural gas realizations in the U.S. averaged $4.07 per thousand cubic feet (Mcf), down from $5.46 per Mcf in the first quarter 2010. In Israel, natural gas realizations continue to benefit from strong global liquid markets, with pricing averaging $4.19 per Mcf. Natural gas liquid pricing in the U.S. averaged $47.80 per barrel, or 52 percent of the Company's average U.S. crude oil realization.
Total production costs per barrel of oil equivalent (Boe), including lease operating expenses, production and ad valorem taxes, and transportation were down 6 percent from the first quarter of 2010 to $7.34 per Boe. Lease operating expense was $4.75 per Boe and depreciation, depletion, and amortization was $11.42 per Boe. The Company's mix of production, with higher volumes in low-cost areas such as Equatorial Guinea and Israel, contributed to lower per unit rates versus the first quarter last year.
Exploration expense for the first quarter 2011 included $26 million of seismic expenditures, including data acquisitions in the DJ basin, offshore Nicaragua and offshore France. General and administrative expenses were up primarily related to increased staffing for the development of the Company's major development projects. The Company's adjusted effective tax rate and deferred portion were both 34 percent for the first quarter 2011.
Other operating income/expense includes an $18 million rig standby charge incurred as a result of the time required to obtain deepwater Gulf of Mexico drilling permits post the moratorium. Included in other income/expense for the first quarter 2011 is a $10 million deferred compensation charge relating to the quarterly value change of Noble Energy stock held in a benefit program.
Exxon Mobil 1Q Profit Soars 69% on Higher Oil Prices
Thursday, April 28, 2011
Dow Jones Newswires
by Tess Stynes
ExxonMobil's first-quarter earnings surged a bigger-than-expected 69% as the company benefited from high oil prices and stronger refining margins.
The world's largest publicly traded oil company by market value has reported stronger results in recent quarters due to rising oil profits and improved refining industry profitability. The growth was a reflection of a recovery from the recession for the broader energy sector, which appears poised for a return toward the boom days that preceded the financial collapse in 2008.
Exxon's $25 billion takeover of natural-gas producer XTO Energy Inc. acquisition last year boosted its production and reserves, though prices have remained soft. The move is anticipated to be highly profitable in the long term, on expectations that natural-gas consumption will grow.
Exxon Mobil reported a profit of $10.65 billion, or $2.14 a share, up from $6.3 billion, or $1.33 a share, a year earlier. Revenue climbed 26% to $114 billion after climbing 41% a year earlier.
Analysts polled by Thomson Reuters most recently forecast earnings of $2.07 on revenue of $114.85 billion.
Exploration and production earnings rose 49%. Exxon Mobil's production rose 10%, boosted by its acquisition last year of XTO Energy Inc., which boosted its natural gas production by 24%.
Refining and distribution business earnings soared amid stronger refining margins and sales of petroleum products.
Exxon Mobil said it spent $5.7 billion for stock repurchases, buying back 69 million shares. The total included $5 billion of buybacks to reduce shares outstanding.
Shares were down 0.5% at $87.32 in premarket trading. The stock through Thursday's close is up 27% in the past year.
Shell Reports $6.9B in 1Q11
Shell Reports $6.9B in 1Q11
Thursday, April 28, 2011
Royal Dutch Shell plc
Shell's first quarter 2011 earnings, on a current cost of supplies (CCS) basis, were $6.9 billion compared with $4.9 billion a year ago. Basic CCS earnings per share increased by 40% versus the same quarter a year ago.
Royal Dutch Shell Chief Executive Officer Peter Voser commented, "Our first quarter 2011 earnings have risen from year-ago levels, driven by higher industry margins and our own operating performance.
"We continue to make good progress in implementing our strategy; improving near-term performance, delivering a new wave of production growth, and maturing the next generation of growth options for shareholders.
"We have announced new asset sales and cost savings programs, as part of Shell's focus on continuous improvement, to enhance our profitability and performance. Shell sold $3.2 billion of non-core positions, including tight gas assets in South Texas, in the quarter. Exits from non-core positions continue, with the announcements of further disposals, with proceeds mainly expected during 2011-2012. These additional disposals include refining capacity in the United Kingdom, and marketing positions in Chile and several African countries. This will enhance our competitive performance, and improve our customer and partner focus.
"Shell started commercial production at two new projects during the quarter; the 20 thousand boe/d Schoonebeek Enhanced Oil Recovery project in the Netherlands, and Qatargas 4 LNG, with a capacity of 7.8 million tonnes per year. Together, in an industry that needs sustained investment in diverse energy sources to meet customer demand, these projects are expected to add 90 thousand boe/d of peak production for Shell. These projects are part of a sequence of over 20 new Upstream start-ups planned for 2011-14, as we deliver on our plans for sustainable growth. The first gas flowed from Qatar's North Field into the new Pearl Gas-to-Liquids project during the quarter, where Shell's value-added technology is underpinning the development of the world's largest GTL facility.
"We continue to crystallize new investment options for medium-term growth, including the confirmation of the Geronggong discovery in deep water Brunei, and new LNG potential in the Wheatstone development in Australia, where our gas discoveries have been included in a new partner-operated LNG project, which is under study."
Voser concluded, "We are making good progress against our targets, to deliver a more competitive performance."
First quarter 2011 portfolio developments
Upstream
In Qatar, Shell and Qatargas announced delivery of the first cargo of LNG from the Qatargas 4 project (Shell share 30%). Production is expected to ramp up to 1.4 billion standard cubic feet of gas per day (scf/d), delivering 7.8 million tonnes per annum (mtpa) of LNG and 70 thousand barrels per day (b/d) of condensate and liquefied petroleum gas.
In the Netherlands, Shell produced its first oil from the Schoonebeek Enhanced Oil Recovery (EOR) project (Shell share 30%). The field is expected to ramp up to produce some 20 thousand barrels of oil equivalent per day (boe/d).
Shell sold non-core Upstream assets, with proceeds totalling $2.4 billion in the quarter. As previously announced, Shell completed the sale of a group of predominately mature tight gas fields in South Texas in the USA, producing some 200 million scf/d (Shell share), for some $1.8 billion. In addition, Shell sold various other non-core assets in Canada, Pakistan, the United Kingdom and the USA (combined Shell share of production of some 25 thousand boe/d) as well as exploration acreage in Colombia.
During the first quarter 2011, Shell confirmed a significant oil and gas discovery, Geronggong, drilled in 2010 in deep water Brunei.
Key features of the FIRST quarter 2011
Production in the first quarter 2011 increased by some 230 thousand boe/d from new field start-ups and the continuing ramp-up of fields, which more than offset the impact of field declines.
First quarter Upstream earnings excluding identified items were $4,638 million compared with $4,305 million a year ago. Identified items were a net gain of $1,120 million, compared with a net gain of $110 million in the first quarter 2011.
Upstream earnings excluding identified items, compared with the first quarter 2010, reflected the effect of higher crude oil and natural gas realizations on revenues, higher dividends from an LNG venture and increased realized LNG prices. These items were partly offset by lower crude oil and natural gas production volumes, higher production taxes, lower trading contributions, and higher operating expenses, mainly related to the start-up of new projects.
Global liquids realizations were 32% higher than in the first quarter 2010. Global natural gas realizations were 11% higher than in the same quarter a year ago. Natural gas realizations in the Americas decreased by 25%, whereas natural gas realizations outside the Americas increased by 20%.
First quarter 2011 production was 3,504 thousand boe/d compared with 3,594 thousand boe/d a year ago. Crude oil production was down 3% and natural gas production decreased by 2% compared with the first quarter 2010. Excluding the impact of divestments, the first quarter 2011 production was in line with the same period last year.
New field start-ups and the continuing ramp-up of fields contributed to the production in the first quarter 2011 by some 230 thousand boe/d, in particular from the ramp-up of Gbaran Ubie in Nigeria, the start-up of the Qatargas 4 project in Qatar, and the ramp-up of the Jackpine Mine at the Athabasca Oil Sands Project in Canada, which more than offset the impact of field declines.
LNG sales volumes of 4.42 million tonnes were 4% higher than in the same quarter a year ago, reflecting higher volumes from Nigeria LNG and the Sakhalin II project as well as the successful start-up of the Qatargas 4 project.
Thursday, April 28, 2011
Royal Dutch Shell plc
Shell's first quarter 2011 earnings, on a current cost of supplies (CCS) basis, were $6.9 billion compared with $4.9 billion a year ago. Basic CCS earnings per share increased by 40% versus the same quarter a year ago.
- First quarter 2011 CCS earnings, excluding identified items, were $6.3 billion compared with $4.8 billion in the first quarter 2010, an increase of 30%. Basic CCS earnings per share, excluding identified items, increased by 29% versus the same quarter a year ago.
- Cash flow from operating activities for the first quarter 2011 was $8.6 billion. Excluding net working capital movements, cash flow from operating activities in the first quarter 2011 was $13.1 billion, compared with $10.4 billion in the same quarter last year.
- Net capital investment for the quarter was $1.7 billion. Total cash dividends paid to shareholders during the first quarter 2011 were $1.6 billion. Some 31.1 million Class A shares, equivalent to $1.1 billion, were issued under the Scrip Dividend Programme for the fourth quarter 2010.
- Gearing at the end of the first quarter 2011 was 14.0%.
- A first quarter 2011 dividend has been announced of $0.42 per ordinary share, unchanged from the US dollar dividend per share for the same period in 2010.
Royal Dutch Shell Chief Executive Officer Peter Voser commented, "Our first quarter 2011 earnings have risen from year-ago levels, driven by higher industry margins and our own operating performance.
"We continue to make good progress in implementing our strategy; improving near-term performance, delivering a new wave of production growth, and maturing the next generation of growth options for shareholders.
"We have announced new asset sales and cost savings programs, as part of Shell's focus on continuous improvement, to enhance our profitability and performance. Shell sold $3.2 billion of non-core positions, including tight gas assets in South Texas, in the quarter. Exits from non-core positions continue, with the announcements of further disposals, with proceeds mainly expected during 2011-2012. These additional disposals include refining capacity in the United Kingdom, and marketing positions in Chile and several African countries. This will enhance our competitive performance, and improve our customer and partner focus.
"Shell started commercial production at two new projects during the quarter; the 20 thousand boe/d Schoonebeek Enhanced Oil Recovery project in the Netherlands, and Qatargas 4 LNG, with a capacity of 7.8 million tonnes per year. Together, in an industry that needs sustained investment in diverse energy sources to meet customer demand, these projects are expected to add 90 thousand boe/d of peak production for Shell. These projects are part of a sequence of over 20 new Upstream start-ups planned for 2011-14, as we deliver on our plans for sustainable growth. The first gas flowed from Qatar's North Field into the new Pearl Gas-to-Liquids project during the quarter, where Shell's value-added technology is underpinning the development of the world's largest GTL facility.
"We continue to crystallize new investment options for medium-term growth, including the confirmation of the Geronggong discovery in deep water Brunei, and new LNG potential in the Wheatstone development in Australia, where our gas discoveries have been included in a new partner-operated LNG project, which is under study."
Voser concluded, "We are making good progress against our targets, to deliver a more competitive performance."
First quarter 2011 portfolio developments
Upstream
In Qatar, Shell and Qatargas announced delivery of the first cargo of LNG from the Qatargas 4 project (Shell share 30%). Production is expected to ramp up to 1.4 billion standard cubic feet of gas per day (scf/d), delivering 7.8 million tonnes per annum (mtpa) of LNG and 70 thousand barrels per day (b/d) of condensate and liquefied petroleum gas.
In the Netherlands, Shell produced its first oil from the Schoonebeek Enhanced Oil Recovery (EOR) project (Shell share 30%). The field is expected to ramp up to produce some 20 thousand barrels of oil equivalent per day (boe/d).
Shell sold non-core Upstream assets, with proceeds totalling $2.4 billion in the quarter. As previously announced, Shell completed the sale of a group of predominately mature tight gas fields in South Texas in the USA, producing some 200 million scf/d (Shell share), for some $1.8 billion. In addition, Shell sold various other non-core assets in Canada, Pakistan, the United Kingdom and the USA (combined Shell share of production of some 25 thousand boe/d) as well as exploration acreage in Colombia.
During the first quarter 2011, Shell confirmed a significant oil and gas discovery, Geronggong, drilled in 2010 in deep water Brunei.
Key features of the FIRST quarter 2011
- First quarter 2011 CCS earnings were $6,925 million, 41% higher than in the same quarter a year ago.
- First quarter 2011 CCS earnings excluding identified items, were $6,288 million compared with $4,822 million in the first quarter 2010.
- Basic CCS earnings per share increased by 40% versus the same quarter a year ago.
- Basic CCS earnings per share excluding identified items increased by 29% versus the same quarter a year ago.
- Cash flow from operating activities for the first quarter 2011 was $8.6 billion, compared with $4.8 billion in the same quarter last year. Excluding net working capital movements, cash flow from operating activities in the first quarter 2011 was $13.1 billion, compared with $10.4 billion in the same quarter last year.
- Total cash dividends paid to shareholders during the first quarter 2011 were $1.6 billion. During the first quarter 2011, some 31.1 million Class A shares, equivalent to $1.1 billion, were issued under the Scrip Dividend Program for the fourth quarter 2010.
- Net capital investment for the first quarter 2011 was $1.7 billion. Capital investment for the first quarter 2011 was $4.9 billion.
- Return on average capital employed (ROACE) at the end of the first quarter 2011, on a reported income basis, was 12.9%.
- Gearing was 14.0% at the end of the first quarter 2011 versus 17.1% at the end of the first quarter 2010.
Upstream
- Oil and gas production for the first quarter 2011 was 3,504 thousand boe/d, 3% lower than in the first quarter 2010. Production for the first quarter 2011 excluding the impact of divestments was in line with the same period last year.
Production in the first quarter 2011 increased by some 230 thousand boe/d from new field start-ups and the continuing ramp-up of fields, which more than offset the impact of field declines.
- LNG sales volumes of 4.42 million tonnes in the first quarter 2011 were 4% higher than in the same quarter a year ago.
First quarter Upstream earnings excluding identified items were $4,638 million compared with $4,305 million a year ago. Identified items were a net gain of $1,120 million, compared with a net gain of $110 million in the first quarter 2011.
Upstream earnings excluding identified items, compared with the first quarter 2010, reflected the effect of higher crude oil and natural gas realizations on revenues, higher dividends from an LNG venture and increased realized LNG prices. These items were partly offset by lower crude oil and natural gas production volumes, higher production taxes, lower trading contributions, and higher operating expenses, mainly related to the start-up of new projects.
Global liquids realizations were 32% higher than in the first quarter 2010. Global natural gas realizations were 11% higher than in the same quarter a year ago. Natural gas realizations in the Americas decreased by 25%, whereas natural gas realizations outside the Americas increased by 20%.
First quarter 2011 production was 3,504 thousand boe/d compared with 3,594 thousand boe/d a year ago. Crude oil production was down 3% and natural gas production decreased by 2% compared with the first quarter 2010. Excluding the impact of divestments, the first quarter 2011 production was in line with the same period last year.
New field start-ups and the continuing ramp-up of fields contributed to the production in the first quarter 2011 by some 230 thousand boe/d, in particular from the ramp-up of Gbaran Ubie in Nigeria, the start-up of the Qatargas 4 project in Qatar, and the ramp-up of the Jackpine Mine at the Athabasca Oil Sands Project in Canada, which more than offset the impact of field declines.
LNG sales volumes of 4.42 million tonnes were 4% higher than in the same quarter a year ago, reflecting higher volumes from Nigeria LNG and the Sakhalin II project as well as the successful start-up of the Qatargas 4 project.
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