Feb 24/11 Feb 22/11 Front Street Investment Management Inc. Control or Direction Common Shares 10 - Acquisition in the public market 200,000 $0.788
Hamilton, Bermuda, February 28, 2011 - Seadrill has entered into an agreement for the construction of two tender rigs with the COSCO Nantong Shipyard in China. The two new units, T15 and T16, are scheduled for delivery in the first quarter and third quarter 2013, respectively. Total project price is estimated at US$225 million, which includes project management, drilling and handling tools, spares and capitalized interest.
The two new units will be based on similar design and specifications as recently built tender rigs, but with enhanced drilling capabilities allowing for higher drilling efficiency including the advantage of a light weight drilling equipment set.
Both of the two new tender rigs have been contracted to Chevron Thailand Exploration and Production for a five-year period offshore Thailand. Estimated contract value for the two units is approximately US$420 million. Commencement of operations is scheduled in the second quarter 2013 and fourth quarter 2013.
Alf C Thorkildsen, Chief Executive Officer in Seadrill Management AS says, "These newbuilds are an important addition to our present tender rig fleet. The new orders increase earnings and visibility, and enhance the attractiveness of our fleet. The US$420 million of new contracts demonstrates the competitiveness of our tender rig concept. T15 and T16 will be added to a fleet of four tender rigs already operating for Chevron, further strengthening our relationship with a leading global client."
Subash Chandra - Jefferies & Company, Inc.
The slides you had, the other zones in Williston Basin and you can do some work there, which of those zones would you say are sort of continuous-type reservoirs and which ones do you think might be discrete?
Jeffery Larson
This is Jeff. The Scallion, I think is going to be variable. We're very excited about the upside in the Scallion. It's basal Lodgepole. It's perfectly positioned. It's got a world-class source rock, the upper Bakken Shale right underneath it. So all you need is fractures or any enhanced porosity that's going to charge.
We'll see in a couple of quarters, and we like what we see. I've got the guys mapping it across the basin. I think it's got resource potential. I don't think -- I think it's going to be in the sweet spot.
Some of the other reservoirs, we're starting to really dial in on some of these other opportunities in the basin. We're looking at Miscu [ph], Dubro [ph], a whole wealth of different intervals. A number of those are stratigraphic in nature.
The other one that's got us intrigued, and you've heard of the North Dakota Industrial Commission talk about it, is the Heath/Tyler section. And that's shallower. It's about 8,500 and 9,000 feet. It's Pennsylvanian age, and it's got a group of source rocks, shales, not unlike the Bakken Shale, intermingled with sandstones that have variable porosity. And I think you'll see us core that this year. And we're getting good shows in our wells. I think you'll see us is core it in McKenzie County. And that could be a much more blanket-type resource play in the future.
Subash Chandra - Jefferies & Company, Inc.
Does that Heath -- does that change a whole lot from the Central Montana Heath?
Jeffery Larson
Yes, it's a different animal. It looks different to us.
SDRL - Seadrill secures new contract for tender rig in Thailand
Hamilton, Bermuda, February 21, 2011 - Seadrill has agreed a new three-year contract with Chevron Thailand Exploration and Production offshore Thailand for the tender rig T12 with a two- year option period. Estimated contract value is approximately US$132 million, and commencement of the assignment is scheduled for the second quarter this year, in direct continuation of the rig's existing contractual obligations.
Alf C Thorkildsen, Chief Executive Officer in Seadrill Management AS says, "We are pleased to secure a new contract for one of our tender rigs in the South East Asia region. This contract demonstrates the attractiveness of our tender rig concept as T12 will be the fifth unit presently operating for Chevron. The tender rig concept uniquely combines flexibility and efficiency that allows us to better serve our clients."
Based on the 62 wells drilled to date by Molopo, Legacy believes the Acquisition encompasses a large resource
play for light oil in the Spearfish formation. Existing well control has de‐risked approximately 24 gross sections of
land over 14 miles of the Spearfish fairway in the Pierson area. By capturing the opportunity, Legacy believes it
can continue to unlock the large resource potential through continued improvements in technology, including
potential secondary and tertiary recovery schemes. As with all resources plays, improvements in technology result
in continuous increases in production rates and reserves and decreases in costs over the long lifespan of these
types of developments. Legacy has successfully demonstrated these improvements in its existing light oil resource
play portfolio.
Currently producing wells were typically drilled horizontally with a combination of both long (1200+ m) and short
(600 m) single laterals and completed utilizing multi‐stage frac treatment. Long horizontal wells within the
productive Spearfish fairway are expected to have average 30 day initial rates of approximately 100 Bbl/d and 90
day average initial rates of 80 Bbl/d. Well costs are expected to be $1.5 million to drill, complete and tie‐in, with
proved plus probable recoveries expected to be approximately 102,000 Bbl/well. Wells are currently producing
through single well batteries; however equipment has been secured for a central oil battery which is expected to
be constructed and operational in 2011. It is anticipated that this facility will lead to lower operating costs through
the elimination of third party treating and salt water disposal and the reduction of infield fluid trucking.
Legacy has identified 329 gross (234.0 net) horizontal development drilling locations targeting light oil, of which
239 gross (166.8 net) or 71 percent are unbooked, as well as eight gross (6.0 net) standing horizontal wells
awaiting completion. The number of locations is based on the expectation that development of the Acquisition
will result in eight long lateral horizontal wells per section, or the equivalent of 16 short lateral horizontal wells per
section. Current well spacing in a large portion of the Waskada area has reached 24 short lateral horizontal wells
per section or the equivalent of 12 long lateral horizontal wells per section. Successful demonstration of
downspacing in the Pierson area to the well density seen in Waskada, could significantly increase Legacy’s
development drilling inventory. Furthermore, the South Pierson Unit No. 1 Spearfish pool has been successfully
waterflooded since 1993, demonstrating the secondary recovery potential associated with the Acquisition.
A handful of companies are leasing hundreds of thousands of acres across portions of the Baton Rouge area and central Louisiana, home to a geological formation that LSU researchers say could produce 7 billion barrels of hard-to-get oil...
Now I want to talk to you about some new areas in play that’s been working on at Encore. We’ve been working on a play called the Tuscaloosa Marine Shale in Southern Mississippi and the Florida parishes in Louisiana. Because we drilled and permitted two wells in the TMS attention has been drawn to the play and we thought it was appropriate to mention the play in the press release and discus it on the call. We’ve leased 208,000 net acres in the TMS and have drilled two wells. We became interested in this play because of three blowouts and numerous high pressure kicks that have occurred while drilling through the Tuscaloosa Marine Shale on the way down to the Tuscaloosa sand. The Marine Shale is a source rock for the Tuscaloosa sand. So we started looking closer and we discovered a silt stone in the shale that we believe would have enough integrity to drill a horizontal well into it.
It looks like we were correct. We’ve cored the wells and see vertical fractures in the core and we know that we can drill horizontals in this. This is an early phase resource play. The first well is a horizontal well that we were able to drill out about 1,650 feet with a horizontal lateral. We were originally hoping to get out about 4,500 feet but because of drilling problems we could only get out 1,650. That well is on pump and it’s making between 150 and 200 barrels a day. The second well we drilled we were able to get out 3,100 feet. We have just recently fracked that well and are waiting on production results but this is a huge resource and we’re excited about making oil out of our first completion. What we know about the TMS now is we can drill horizontal lateral, we can produce oil and we think as we link the laterals we ought to see the wells improve. We have a lot of work in front of us. We need to drop the drilling costs, extend the laterals and optimize our stimulation techniques to make the wells better and better but when we figure this out we’ll have a lot of running room. We know the oil is there, we just need to figure out the best way to get it out.
We have also created a new region to focus on our Gulf Coast onshore assets where we control over 700,000 acres, including almost 300,000 acres in South Louisiana where we own the minerals. We believe the opportunities for growth onshore warrant having a dedicated organization and based on our recent experience in the Permian, since it was created as a focus region, we expect great things from our Gulf Coast onshore team.
Hamilton, Bermuda, February 15, 2011- The Board of Directors of Seadrill Limited ("Seadrill") have decided to create a new drilling company focusing entirely on harsh environment operations. To achieve that Seadrill will spin off its operations in the North Atlantic Basin into a new subsidiary, the North Atlantic Drilling Limited ("NADL" or the "Company"), by transferring a fleet of six existing harsh environment units to NADL. The fleet will consist of the following drilling units: West Phoenix, West Venture, West Alpha, West Navigator, West Epsilon and West Elara. In addition, Seadrill is in final stages of negotiating a new building contract for a 7th unit, which will also become a part of NADL.
The objective is to develop an unrivalled owner and operator of arctic and harsh environment drilling units. NADL will have some 1,000 employees working in an organization which have nearly 40 years of experience. This will put the Company in a unique position to serve the oil companies safely and effectively in developing new and even more challenging reservoirs.
The Board of Director has aggressive ambitions for growth in this segment. Although a part of this growth will be organic, the Company will with a contract backlog of more than US$3 billion and a solid balance sheet be well positioned to play a leading role in consolidation of this fragmented market segment.
The Company will target a minimum annual dividend yield of 7% for its shareholders...
Pacific Rubiales Energy Corp. announced a new exploratory success at its Visure-1X well, located in the Buganviles Block, Upper Magdalena Valley Basin, Colombia.
The Visure-1X well, located in the Visure prospect, close to the southeastern border of the Buganviles Block, was drilled to evaluate a structural trap, similar to the nearby Abanico field to the northeast. The well had three main exploratory targets: the Cretaceous Lower and Upper Intervals of the Guadalupe Formation and the Tertiary Barzalosa Formation. The well was spudded on October 16, 2010, and reached a final depth of 3,380 feet measured depth (MD) or 2,205 feet true vertical depth (TVDSS) on November 1, 2010. The well was drilled slightly deviated at an angle of 9 degrees and found the top of the Barzalosa Formation at 2,206 feet MD (1,040 feet TVDSS), the Upper Guadalupe Interval at 2,995 feet MD (1,825 feet TVDSS), the Lower Guadalupe Interval at 3,079 feet MD (1,908 feet TVDSS), and the top of Villeta Formation at 3,272 feet MD (2,099 feet TVDSS).
The petrophysical evaluation of the well in the Barzalosa and Upper and Lower Guadalupe Formations indicated a total net pay of liquid hydrocarbons of 114 feet in the three intervals, ranging from 24.5 to 45.5 feet of net pay and 16% to 26% average porosity. In addition to the oil-bearing sandstones, the well also showed gas saturated sandstones in the Barzalosa Formation (3 feet thick).
The results of the Visure-1X well, drilled in the Visure prospect, located in the southern part of the Buganviles Block, were released in November 4, 2010. The well was tested in the Lower Guadalupe Formation, resulting in a stabilized average production rate of 46 bbl/d with 14 barrels of water per day. Oil gravity was 15.6 API. The Visure-1X well has now been suspended and the drilling rig released pending evaluation of this production testing. Different production techniques will be evaluated based on the production test analysis to economically produce the significant oil in place encountered in the Lower Guadalupe Formation. Depending on the results, the Company will consider a possible test in the Upper Guadalupe and Barzalosa Formations.
Calgary, Alberta - Strategic Oil & Gas Ltd. ("Strategic" or the "Corporation") (TSXV: SOG) is pleased to provide a production and operations update relating to Maxhamish and its recently acquired Steen River Property. As of February 8, 2011, Strategic’s production exceeds 900 boe/d (70% oil). In addition, 200 boe/d are expected to be added in the month of February following a successful ongoing workover campaign at Steen River.
At Maxhamish, operations are focused on achieving year round access to our properties by March with a 2011 drilling campaign of 4 multi frac horizontal wells. Current plans include drilling and completing one well before breakup with 3 wells following breakup.
STEEN RIVER 102 MARLOWE 10-22-122-21
PRODUCTION - NPW (CB - BASE OF SURFACE CASING)
Well ID: 03/10-22-122-21W5/0
Fluid: CRUDE OIL
Licensee: STEEN RIVER OIL & GAS LTD.
License Date: 04-Feb-2011
Projected Depth: 1,130.5 m
Field: MARLOWE
Terminating Zone: KEG RIVER FM
HOUSTON, Feb. 11, 2011 /PRNewswire via COMTEX/ --
Seahawk Drilling, Inc. ("Seahawk") (Nasdaq: HAWK) announced today that Hercules Offshore, Inc. ("Hercules") (Nasdaq: HERO) is acquiring substantially all of Seahawk's assets in a transaction valued at approximately $105 million.
Total consideration is comprised of 22.3 million Hercules shares plus sufficient cash to retire indebtedness of approximately $25.0 million, and working capital liabilities subject to closing adjustments. At the February 10, 2011 closing price of $3.62 per share, the value of the transaction is $105 million.
Seahawk's Chief Executive Officer, Randy Stilley, stated, "After a thorough and disciplined process, an independent committee of Seahawk's directors and its full Board of Directors determined that an asset sale to Hercules provides the highest level of value to Seahawk's stakeholders."
Stilley continued, "The transaction with Hercules creates a company with a larger, more diverse fleet, broader customer relationships and greater operational flexibility. In addition to increased economies of scale, combining the fleets will provide for substantial cost savings through the elimination of overhead and duplicative public company expenses."
The asset sale will be implemented through a Chapter 11 bankruptcy filing in which Seahawk will seek expedited hearings to obtain Court approval. Both companies expect to obtain regulatory clearance under the Hart-Scott-Rodino Antitrust Act and close the transaction in the second quarter of 2011. We expect no impact on Seahawk's operations and Seahawk will continue to perform work for its customers without interruption. Seahawk expects that full payment of all funded debt and trade payables will be made. Additionally, Seahawk expects to pay all vendors for goods and services provided after the filing.
CALGARY, Feb. 9 /CNW/ - Valeura Energy Inc. ("Valeura" or the "Corporation") (TSX-V: "VLE") is pleased to announce that it has executed a conditional offer (the "Offer") with TransAtlantic Worldwide Ltd. ("TransAtlantic"), a wholly-owned affiliate of TransAtlantic Petroleum Ltd., to acquire (the "Acquisition") natural gas production of approximately 10.0 mmcfd (net before royalties), 546,030 net acres of land in the Thrace and Anatolian basins of Turkey (the "Assets") and exposure to a world-class unconventional tight gas opportunity in the Thrace Basin for a purchase price of approximately US$61.5 million in cash.
Unconventional Gas
The Corporation believes there is upside potential associated with applying North American well completion technology to exploit deeper tight gas sand reservoirs in the Mezardere, Ceylan and Hamitabat formations at depths to the top of these formations from 1,000 to 3,500 m. Selective deep drilling in the past indicates the presence of relatively low porosity (3 to 15%), stacked sandstone reservoirs in these formations that are gas-charged. TBNG and TPAO, the Turkish national oil company, have carried out fracture treatments on a number of deeper wells in the past 20 years in the Hamitabat and Mezardere formations in the Thrace Basin and have achieved post fracture rates up to 3 to 4 mmcfd. The Hamitabat field operated by TPAO is producing from the Hamitabat formation at a depth of approximately 2,850 m and has produced approximately 100 bcf to date.
There are many other analogies of tight gas reservoirs around the world in similar basins that have benefited from the application of modern drilling and completion technologies and robust capital investment. The Montney formation in the Western Canada Sedimentary Basin is currently being developed with horizontal wells and multi-stage fracture treatments with considerable success. In parts of the Thrace Basin, there are up to 9,000 m of Tertiary-aged sediments with a number of tight gas and other unconventional gas targets that are expected to benefit from multi-stage fracture treatments in vertical wells, given the relatively thick nature of the stacked sandstone reservoirs.
On a preliminary basis, the Corporation has mapped five closures under existing shallow gas fields on the Thrace Basin onshore Lands at the Mezardere horizon, alone, which could be prospective for tight gas development. Exploration and development of these and other unconventional targets is expected to be an important focus of the Corporation's go forward capital program. Equipment for this purpose is becoming increasingly available in Turkey at competitive costs, including equipment from a service company affiliated with TransAtlantic.
A new work program and budget for 2011 on the Thrace Basin onshore Lands is currently under development by the operator.
The "Oily" Woodford, Arkoma Basin – Oklahoma
Newfield also disclosed a new resource play located on a significant portion of the Company's Woodford Shale acreage in the Arkoma Basin of southeast Oklahoma. Newfield believes the play is prospective on approximately 15% of its 172,000 net acres.
To date, Newfield has drilled six wells in this new play. Peak gross production (24-hour) from five of the six wells averaged 1,410 BOEPD. Approximately 35% of the hydrocarbon stream is oil (API gravity of 41 degrees), with the remainder 1,300 Btu gas.
Newfield has more than 30 days of production on four of the wells completed to date. Initial 30-day gross production from these wells averaged approximately 950 BOEPD. The four wells have continued to show strong production with 60-day and 90-day gross averages of approximately 840 BOEPD and 760 BOEPD, respectively. One of the six wells (excluded from the above averages) has an insufficient completion and produced approximately 275 BOEPD over its first 30 days. The wells have an average lateral length of approximately 8,500' and were drilled and completed for less than $8.5 million gross. Newfield has substantially a 100% working interest in these wells.
Boothby said, "Our success in the oily Woodford is another great example of the depth of our portfolio and our commitment to focus on oil and liquids-rich assets. We have been assessing this play throughout 2010 and our results create excitement for its potential on the western portion of our existing Woodford acreage, including about 11,000 net acres we leased in 2009 and 2010. Because our Woodford gas play is substantially held by production, our 2011 efforts can focus on our oily Woodford inventory."
Newfield plans to drill 12 to 18 additional wells in this play in 2011. To date, the Company has identified more than 100 drilling locations and the inventory continues to develop.
Transocean Ltd. / Transocean Ltd. Announces Transocean Leader Awarded Three-Year Contract Processed and transmitted by Thomson Reuters. The issuer is solely responsible for the content of this announcement.
ZUG, SWITZERLAND--(Marketwire - February 9, 2011) - Transocean Ltd. (NYSE: RIG) (SIX: RIGN) today announced that its high-specification semisubmersible rig Transocean Leader has been awarded a three-year contract by a subsidiary of Statoil ASA for operations in Norway. The contract, which has a one-year extension option, is expected to commence in direct continuation of the rig's current contract. Estimated contract revenues related to the three-year contract are approximately $427 million. Estimated contract revenues represent the maximum amount of revenues that may be earned in the firm contract period, excluding revenues for mobilization, cost escalations, customer reimbursed equipment and miscellaneous adjustments.
02 February 2011
LONDON--(BUSINESS WIRE)-- Ensco plc (NYSE: ESV) announced today that a subsidiary of the Company has entered into a 950-day drilling contract with Petroleo Brasileiro S.A. - Petrobras (NYSE: PBR) for ENSCO 7500, a 5th generation ultra-deepwater semisubmersible drilling rig that has operated for more than 10 years in the major offshore markets of Australia and the U.S. Gulf of Mexico. Following upgrades to the rig at a shipyard in Singapore, ENSCO 7500 is scheduled to commence operations in third quarter 2011. Petrobras may extend the term for up to 950 additional days at mutually agreed rates.
Chairman, President and Chief Executive Officer Dan Rabun commented, "We are very pleased that Petrobras – a leading operator in the deepwater market – has selected ENSCO 7500 for its latest drilling program. Brazil’s deepwater reserves are among the largest in the world and we seek to expand our presence in this growing market.”
The day rate is $320,000 under the new contract, subject to adjustments based on variances in operating costs. In addition, should the rig operate in water depths greater than 1,500 meters, the day rate increases by an additional $200 per meter/per day. Ensco is eligible to receive up to a 5% performance bonus on the day rate and will receive a $19 million fee for mobilization and equipment upgrades.
