Sefton Makes Headway in California, Kansas

- Sefton Makes Headway in California, Kansas

Thursday, September 08, 2011
Sefton Resources Inc.

Sefton Resources announced an operational update on its most recent activities.

Highlights 

• Oil in California
  • Oil production rises to approximately 135 barrels per day during August.
  • Steam flooding pilot project sees oil production from Hartje #18 well boosted by 60% with increased reservoir pressure recorded at neighboring Yule #5 well.
  • Four wells planned for drilling during November at Tapia Canyon oil field.
  • A subsidiary of Occidental, the fourth largest US oil exploration company, has begun drilling the adjacent Wayside Canyon Oilfield, less than a mile away from Tapia Canyon. (Their field represents a virtual mirror image of Sefton's Tapia Canyon oil field only separated by a series of small faults).
• Gas in Kansas
  • Letter of intent signed to acquire a fourth gas pipeline plus adjacent wells and leases.
  • Agreement with Southern Star expected to be signed in late September to connect Sefton's pipelines from Leavenworth County to their interstate pipeline.
  • Significant progress with repairing the LAGGS pipeline system.
  • On going discussions with an exploration and production company which has significant acreage along the Vanguard pipeline for transportation of their gas through the Sefton pipeline system.
  • On going acreage acquisition program being developed based on the company's residual trend surface mapping techniques.

Commenting Thursday, Jim Ellerton, Executive Chairman said, "We are making good progress both in California and Kansas and now have in place a strong operational base, strong balance sheet and good cash flows from which to grow the business.

In California, oil production is rising on the back of steaming and we are looking forward to the publication of Dr Ali Farouq's report in October which will give us a clear indication of the potential and value of our interests in California as well as how to fully develop them.

In Kansas, 40-50% of Sefton's target areas for development in Leavenworth County and those in the surrounding areas remain underexplored due to a lack of activity over the past ten years. We believe this presents a significant opportunity for us."

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Technip Lands EPC Gig for Satah Full Field Development

- Technip Lands EPC Gig for Satah Full Field Development

Thursday, September 08, 2011
Technip

Technip, in consortium with NPCC, was awarded by ZADCO an engineering, procurement and construction lump sum contract, worth a total of approximately $500 million (Technip part of the contract: 35%), for the Satah Full Field Development project. This field is located 200 kilometers northwest of Abu Dhabi, United Arab Emirates.

The Satah Full Field Development project's objective is to maximize crude oil production and oil recovery by reducing the well heads' back pressure and introducing of gas injection and gas lift facilities.

The project scope involves offshore brownfield works to the existing well head platforms and production manifold platform, installation of infield pipelines, as well as modifications and installation of new facilities at the Onshore Satah plant at Zirku Island.

This project award is the recognition of our expertise in the growing brownfield projects market in the Middle-East, said Arturo Grimaldi, Senior Vice President of Technip in the Middle East. It also reflects the confidence of our client ZADCO in the strong consortium that we form with NPCC.

Technip's operating center in Abu Dhabi will execute the engineering and procurement activities while construction and installation activities for offshore works will be performed by NPCC. The Onshore construction activities will be carried out jointly by the consortium companies.

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Statoil On Track with Mariner Project

- Statoil On Track with Mariner Project

The concept chosen for the Mariner heavy oil project on the UK continental shelf includes a production, drilling and quarter (PDQ) platform based on a steel jacket, with a floating storage unit (FSU).

Statoil expects a final investment decision in late 2012 and first oil in late 2016.

The Bressay heavy oil project on the UK continental shelf is also progressing according to plan, one year behind Mariner, to ensure transfer of learning and synergies.

The Mariner and Bressay projects were presented at a press briefing by Statoil's executive vice president for Development and Production International, Peter Mellbye, at SPE Offshore Europe 2011 in Aberdeen.

"After a period of uncertainty, I am proud to be able to say that we are back on track with the landmark Mariner and Bressay developments. To be able to once again move these projects forward is important for Statoil and its partners, as well as for the UK and for the Aberdeen region," said Mellbye.

The ultra-heavy oil projects will require pioneering technology in order to be developed. Since its discovery thirty years ago, the Mariner field has been subject to a number of development studies by different operators.

Statoil is the first company ready to put forward a development concept that will fully address the complexities of this field, in particular related to reservoir management, recovery rates and project execution.

Statoil has extensive heavy oil experience, including the successful development of the Grane field in Norway and the Peregrino field in Brazil.

Because of the low well flow rates and early water break-through there is a need for many wells, artificial lift, and a process designed to handle large liquid rates and oil-water emulsions.

A total of 145 reservoir targets for production or injection are planned for Mariner. While the number of well slots at the platforms is less, this will be solved through use of multi-branch technology, sidetracks and reuse of slots.

The Mariner and Bressay projects will entail a gross investment of roughly GBP 6 billion. Statoil estimates lasting employment of at least 700 individuals, mainly locals, directly involved in its operations, and the establishment of a new operations centre in Aberdeen. The indirect employment of numerous others in the supply and service sectors comes in addition to this.

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Reliance, BP Finalize $7.2B Acquisition

- Reliance, BP Finalize $7.2B Acquisition

Thursday, September 08, 2011
Reliance Industries Ltd.

Reliance Industries Limited (RIL) and BP announced the completion of BP's acquisition of a 30 percent stake in 21 oil and gas production sharing contracts (PSCs) that Reliance operates in India, including the producing KG D6 block.

This significant step will commence the planned alliance which will operate across the gas value chain in India, from exploration and production to distribution and marketing. The completion of the deal delivers one of the largest ever foreign direct investments into India.

The two companies will also form a 50:50 joint venture for the sourcing and marketing of gas in India which will also accelerate the creation of infrastructure for receiving, transporting and marketing natural gas.

Mukesh Ambani, Chairman and Managing Director, Reliance Industries, said, "The alliance with BP will boost our efforts to realize the true potential of India's hydrocarbon reserves. The globally renowned expertise of BP and the in-depth domestic experience of Reliance make for a formidable alliance which will deliver unparalleled value for the country in its pursuit of energy security."

"This is the beginning of what we expect to be a long and successful working partnership with Reliance, building on the strengths of each company," said Bob Dudley, BP group chief executive. "This major investment is directly aligned with our strategy of creating long-term
value by forming alliances with strong national partners, gaining material positions in significant hydrocarbon basins and increasing our exposure to growing energy markets."

BP will pay RIL an aggregate consideration of US $7.2 billion subject to completion adjustments for the interests to be acquired in the 21 production sharing contracts. Further performance payments of up to US $1.8 billion could be paid based on exploration success that results in development of commercial discoveries.

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