Semisub Ensco 8504 Sets Sail to Brunei

- Semisub Ensco 8504 Sets Sail to Brunei

Ensco has taken delivery of ENSCO 8504, the fifth of the seven ENSCO 8500 Series rigs constructed by Keppel FELS Limited in Singapore. After mobilizing to Brunei to complete deepwater sea trials and final outfitting, ENSCO 8504 will commence a previously announced drilling contract with Total E&P Deep Offshore Borneo B.V.

Chairman, President and Chief Executive Officer Dan Rabun commented, "We are very pleased that Total has chosen ENSCO 8504 for its drilling program. Our 8500 Series rigs have performed extremely well for our customers and we are realizing significant benefits from the uniform design and standardization across the entire series."

Mr. Rabun added, "Brunei is an emerging deepwater basin and we look forward to entering this market and expanding our relationship with Total."

The proprietary design of the ENSCO 8500 Series was developed with extensive input from customers to address the drilling requirements for virtually every deepwater field around the world. The design includes a 35,000' nominal rated drilling depth, two million pounds of hoisting capacity, 8,000 tons of variable deck load and an open layout well suited for subsea completion activities. Improved visibility from the open deck configuration also enhances safety.

The uniform design of the ENSCO 8500 Series streamlines operational functionality, repairs, training, spare part requirements and maintenance, while also providing flexibility for customer specific enhancements. In particular, the 8500 Series may be modified to drill and complete wells in water depths up to 10,000'.

Two additional ENSCO 8500 Series rigs are under construction with deliveries scheduled for the first and second half of next year. Ensco has the world's newest ultra-deepwater drilling fleet comprised of drillships and semisubmersibles that operate in multiple markets around the globe, including Brazil, West Africa, U.S. Gulf of Mexico, Mediterranean and Asia.

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Sempra Energy Reported Mixed Q2 Results, Top Line Up 21%

- Sempra Energy Reported Mixed Q2 Results, Top Line Up 21%



Aug 9, 2011

Sempra Energy (NYSE:SRE) reported adjusted Q2 EPS of $0.97, missing consensus estimates of $0.98 per share. Revenues for the quarter rose 21% year-over-year to $2.42 billion, topping consensus estimates of $2.18 billion.

The company sees 2011 EPS of $4.00 to $4.30 per share, vs. consensus estimates of $4.20 per share.

Debra L. Reed, chief executive officer of Sempra Energy said, "Through the first half of the year, we are performing well across the board and are on track to meet our 2011 earnings guidance. Our utility and pipeline acquisitions are providing strong contributions to our earnings. We also are making excellent progress on our major California utility projects and our build-out of contracted renewable energy infrastructure."

Sempra Energy has a potential upside of 24.6% based on a current price of $46.03 and an average consensus analyst price target of $57.36.

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Abraxas Petroleum Announces Production And 2011 Estimates

- Abraxas Petroleum Announces Production And 2011 Estimates



Aug 9, 2011

During the month of July, Abraxas (NASDAQ:AXAS) produced 4,160 barrels of oil equivalent per day up from an average of 3,845 barrels of oil equivalent per day for the Q2.

Abraxas expects production for 2011 to average 4,000 to 4,200 barrels of oil equivalent per day, including its equity interest share of Blue Eagle's production that would generate an exit rate for 2011 between 4,700 and 4,900 barrels of oil equivalent per day.

Abraxas Petroleum (NASDAQ:AXAS) has a potential upside of 97.6% based on a current price of $3.09 and an average consensus analyst price target of $6.11.

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Argentina Suspends Auction for Offshore Blocks

- Argentina Suspends Auction for Offshore Blocks

Tuesday, August 09, 2011
Dow Jones Newswires
BUENOS AIRES
by Taos Turner

Adverse market conditions have led Argentina's state-run energy company Enarsa to suspend plans to auction oil exploration rights at 32 offshore blocks.

"The international context is not very good. It's not a good time to be doing this," a person familiar with Enarsa's plans said Monday. He added that the company remains interested in exploring those areas.

Enarsa planned to begin auctioning the blocks this week to foment offshore oil and gas exploration.

Enarsa will continue evaluating the market and will resume the auction process once conditions are more favorable, the person said.

The blocks are located in the Atlantic Ocean near Argentina's Patagonia and include areas such as the Valdes Peninsula, San Jorge, and Malvinas, among others.

It's unclear how much interest exists in the blocks, though Enarsa already has signed agreements with Petrobras Argentina and YPF to look for and develop resources in the region.

Argentina has been struggling to find new sources of energy as its oil and gas reserves decline.

Oil production fell 18% between 2003 and 2010 to about 34 million cubic meters, according to a document published in March by eight former energy secretaries. The document, which cites Energy Secretariat data, said proven oil reserves fell 11% to 393 million cubic meters during that period. It also said natural gas production fell 43% to 379 billion cubic meters in 2010, while reserves fell 8% to about 47 billion cubic meters.

The former officials, who have criticized current energy policies, said the decline in oil production coincided with a substantial increase in international oil prices, which should have led to increased exploration and production in Argentina.

But that didn't happen, they said, because of ongoing government price caps that have crimped profits and discouraged investment in exploration.

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

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