Encana ja EOG ulos Kitimat LNG:stä, Chevron tilalle

Chevron Subsidiary Acquires Operating Interest in Western Canada LNG Project

 SAN RAMON, CA, Dec. 24, 2012 /CNW/ - Chevron Corporation (NYSE: CVX) today announced that its indirect Canadian subsidiary, Chevron Canada Limited, will acquire a 50 percent operating interest in the Kitimat liquefied natural gas (LNG) project and proposed Pacific Trail Pipeline (PTP), and a 50 percent interest in approximately 644,000 acres of petroleum and natural gas rights in the Horn River and Liard Basins in British Columbia, Canada. "The Kitimat LNG development is an attractive opportunity that is aligned with existing strategies and will drive additional long-term production growth and shareholder returns," said George Kirkland, vice chairman, Chevron Corporation.

EOG Resources to Sell Its Kitimat LNG Facility Stake and a Portion of its Horn River Basin Acreage

HOUSTON, Dec. 24, 2012 /PRNewswire/ -- EOG Resources, Inc. (NYSE: EOG), (EOG) through its Canadian subsidiary, EOG Resources Canada Inc. (EOG Canada), today announced the signing of a purchase and sale agreement for its interest in the Kitimat LNG facility to Chevron Canada Limited. The transaction, subject to approval by Canadian regulatory authorities, is expected to close by the end of the first quarter 2013. The agreement includes EOG Canada's 30 percent interest in the planned natural gas liquefaction and export facility on British Columbia's west coast and associated Pacific Trail Pipelines project, as well as approximately 28,500 undeveloped net acres in the Horn River Basin. 

 "While we still believe in the viability of the Kitimat project, our decision to exit is consistent with EOG's focus on domestic onshore crude oil production, which is generating more immediate reinvestment opportunities," said Mark G. Papa, Chairman and Chief Executive Office

Hieman yllättävä uutinen varsinkin Encanan osalta. Encana tuli projektiin mukaan viimeisenä alla kaksi vuotta sitten ja suora omistusosuus LNG-vienti terminaalissa olisi luontevaa lähes puhtaalle maakaasun tuottajalle.

 EOG on pitänyt projektin etenemisen edellytyksenä öljyn hintaan sidottua hintaindeksiä myytävälle maakaasulle ja trendi kuitenkin on ollut päinvastainen, eli aasialaiset kaasun ostajat ovat pyrkineet eroon öljyn hintaan sidotuista kaasun ostosopimuksista. Kaasun myyjien tavoitteiden mukaisien ostositoumuksien saaminen on ollut yksi merkittävimmistä esteistä projektin etenemiselle.

EOG yrittänyt hukuttaa Bakkenia jo huhtikuusta asti

Q1-tiedotteesta: 

Additionally, in mid-April EOG commenced two pilot Bakken waterflood projects in its Core Parshall Field to test secondary crude oil recovery methods as another viable way to improve oil recovery.

Luvan käsittely:

In the matter of a hearing called on a motion of the Commission to review
the relief granted under Order No. 19028 authorizing EOG Resources, Inc.
temporary authority to rework and use the Parshall #20-03H well (NDIC
Permit No. 16986), located in Lot 2, Section 3, T.152N., R.90W.,
Mountrail County, ND, as a water injection well for operation in the
Parshall-Bakken Pool to test the feasibility of water flooding the reservoir
and such other relief as is appropriate

EOG on ns. super independenteistä teknisesti tasokkain, joten on kiintoisaa, että he ovat ensimmäisinä testaamassa tätä USA:n puolella, Kanadassa CPG:n perässä ovat jo ainakin Legacy ja Questerre.

EOG-kommentteja

Q2 CC-transkriptista:

Marmaton

Our press release also noted a new successful, mid-continent horizontal oil play, the Marmaton sandstone in the Oklahoma Panhandle. During the quarter, we drilled 8 strong Marmaton wells, such as the 100% working interest Davis 3 No. 1H, which IP-ed at 1,050 barrels of oil per day with 5 million cubic a per day of rich gas for a $4.3 million well cost. We had 34,000 net acres in this play. Because we don't have a huge acreage position, this will be a contributory rather than a gain-breaking play for EOG, but it will help us grow mid-continent liquid volumes.

En tiedä miten hyvin tuo kaivo kuvaa Marmatonia, kun Unit Corpin mukaan heidän 18 tuoreimman Marmaton-horisontaalin IP30 oli 208 boeta ja EUR per kaivo on 130,000 boeta. UNT:n kaivojen keskihinta on kyllä $2.7 miljoonaa vs. EOG:n $4.3 miljoonaa(tupla pitkä horisontaali ja enemmän frakkeja?)

Niobrara

In our DJ Basin, Niobrara Play, we've expanded the acreage we've proven up. All the results reported to date had been on our 80,000 net acre Hereford Ranch prospect. This quarter, we drilled successful wells on an additional 89,000 net acres, expanding our prospective acreage to 169,000 net acres. The Niobrara has some unique production characteristics that we haven't seen in any other oil resource play. Some wells start out at lower initial rates but then exhibit much flatter declines in other plays. For example, the well that kicked off the play, the Jake 2-01H, started out at a 645 barrel of oil per day stabilized rate and is currently producing 275 barrels of oil per day, a low decline rate, 22 months later. To summarize the Niobrara, this will definitely be a contributory play for us, and with optimized frac technology we might turn it into an even more significant asset.

Niobrara-kaivon tuotantokäyrä on mitä ilmeisimmin todella uniikki epätavanomaisien resurssien joukossa. Bakkenissa, Eagle Fordissa ja Cardiumissa tuotanto laskee IP30:stä ensimmäisen vuoden loppuun mennessä säännönmukaisesti yli 70%, kun Niobrarassa pudotus näyttäisi jäävän usein alle 50%. Niobrarassa on paikoittain selvästi enemmän luonnollisia murtumia kuin muissa epätavanomaisissa, mikä lienee ainakin yksi tekijä matalamman laskun takana.

Vaca Muerta(Argentiina)

During the quarter, we also added 100,000 net acres in Argentina's Neuquen Basin. Our target is the Vaca Muerta shale, which we believe will be oil-productive. We'll drill our first 2 wells in 2012.

Q&A-osuudesta

Brian Lively - Tudor, Pickering, Holt & Co. Securities, Inc.

Just in the Niobrara, can you provide us with the resource estimate update on the 160,000 net acres that you think are de-risk at this point?

Mark Papa

Yes. We haven't really come out with the resource estimate yet on there. I mean, it's no secret that the Niobrara has proven to be, I'd say, one of the more complex horizontal oil plays that both we and the industry have dealt with. I'm sure you're aware there's been mixed results from various companies in the Niobrara. I'm pleased to say EOG probably has the best results in Niobrara than any company. But we're still in kind of an understanding and evaluation phase of it as opposed to -- so we really don't want to give a number at this point in time because there's pretty wide range.

Brian Lively - Tudor, Pickering, Holt & Co. Securities, Inc.

Well, maybe just on the Hereford Ranch area, even if the not total resource, what are you seeing sort of at the average EUR per well? Or just some context on that.

Unknown Executive

Yes, Brian, I'd say the averages is probably in the 200, 225 barrels of oil equivalent range. The good thing we're seeing on these wells is that many of them -- they don't come in at really extremely high IPs. They'll come in at, say, 300 or 400 barrels per day. But after a year or so, they're still making 200 barrels a day. So the decline rates are really low, and that's very encouraging to us. We also had a lot of encouragement on our step-out drilling, as Mark's indicated in his comments and in our press release. And so, just overall, we're real positive in what's going on, and I really think it's going to be a significant play for EOG. But again, we want to have a little bit more time to drill some more wells and to evaluate the production before we come out with a reserve potential number.

Lainattujen kommenttien lisäksi voi todeta että EOG:n Eagle Ford-maat ovat valtavan tuottoisa resurssi ja yhtiön arvio kaivojen keskimääräisestä ROR:stä verojen jälkeen on vieläkin noin 100%. Eagle Ford on kokonsa ja tuottoisuuntensa valossa lähes uskomatonta uudehkon teknologian menestystarina.

"EOG boss 'astounded' at gas dash"

Upstream

EOG Resources chief executive Mark Papa said today it is "astounding" that the company's competitors plan to increase natural gas production this year despite slumping prices...

"Other Shale/Tight Oil Plays Still In Their Infancy"

Artikkeli:

While there's growing industry interest around some emerging shale/tight oil plays in Alberta, companies involved in the early-phase exploration of them have offered little in the way of publicly-available information and data to date.

Aside from the Alberta Bakken/Exshaw, the Devonian Muskwa/Duvernay shales in northwest Alberta's Deep Basin, the Jurassic Nordegg shales in the Peace River area of Alberta and the Cretaceous Second White Specks in the Deep Basin are also in play.

"Given virtually no long-term horizontal production history and very early geochemical, petrophysical, and mineralogical data, we believe it is too early to comment on which shale oil play will end up at the top of the heap," said Macquarie Equities Research analyst Ray Kwanin a recent report.

"...while thefirst Muskwa horizontal by CCRL produced at a peak rate of 100 bbls per day on a calendar daybasis. So far, there have been no horizontals drilled in the oil window of the Duvernay," he said.

Shale development in the Rainbow area had been relatively non-existent until late September 2009 when CCRL drilled a horizontal well at 02-30-109-08W6 targeting "what we believe is Muskwa shale oil," Kwan said.

"While still on confidential status, the well was producing on a calendar day basis at a peak rate of approximately 100 bbls per day (37-38°API). On top of this, a producer(s), under the guise of several land brokers, managed to purchase over 250 net sections through Crown land sales since 2010," he added.

"In our view, the leading contender is EOG Resources, which recently came out of hiding by licensing a horizontal Muskwa well this summer (T107-R09W6). EOG is arguably the most knowledgeable and astute producer in identifying shale oil plays in North America."

Murtajista pulaa

EOG skripti:

Regarding oil, our individual wells are performing as expected. But we underestimated the downtime for patent drilling and delays for frac equipment. As we previously stated, optimizing shale oil or gas recovery requires drilling five or six side-by-side wells, frac-ing them simultaneously and only then turning all wells to production. Therefore, if frac equipment is delayed, it doesn't affect only one well but cascades to five or six wells and the associated production. We believe our updated volume estimates now account for this methodology.

To give you a little more color on these frac equipment delays, we're currently experiencing delays in almost every one of our divisions and have about 100 wells experiencing delays. Since most of our budget is oil wells, this disproportionately affects oil volumes. These delays won't go away anytime soon. And our new 2011 and 2012 growth forecasts assume the frac delays continue until at least mid-2011.

Mark Papa

That's a good point. Let me correct one thing. I misspoke a little bit earlier. I said 160 miles for the Eagle Ford. That's really 120 miles with a possible 20-mile extension. In terms of the frac situation between April and today, it's really gotten worse, I mean, worse from a producer's viewpoint. It's literally at a point now where if we want to frac a well, and we call up one of the major service companies, typically they'll say, "Well, we can get to you maybe right after the first of year. And the price, we'll tell you the first of year. But it's going to be even higher than your worst case scenario to frac this well. And if you don't like that particular price availability, well, we've got a lot of other people had a needing fracs. But I would say we certainly had a peak drilling activity several years ago, when gas was $9 or $10 and there was a frenzy of activity. But the frac situation was not as tight then as it is today, in my opinion.

Jotkut analyytikot ovat arvioineet ensi vuonna olevan ylikapasiteettiä painepumppauksessa, mutta tarpeeseen näyttää tulevan uusi kalusto.

Ainoa pumppari omassa omistuksessa on Gasfrac.

Niobrara

Tämäkin jäänyt huomaamatta

Niobrara Oil Play Heats Up In The Rockies(01.02.2010)

"North American unconventional-oil plays have gained increased attention as results improve. One of the plays explorers are closely monitoring is the Cretaceous Niobrara shale in the Rocky Mountain region"

"Today companies are chasing the Niobrara with new fervor. Lots of buzz is surrounding EOG Resources’ Jake well, a horizontal Niobrara discovery in Colorado’s Weld County, in the northern Denver-Julesburg Basin. According to state records, the well, in Section 1-11n-63w, flowed an average 1,750 bbl. of oil and 360,000 cu. ft. of gas per day for its first eight days on production in October 2009. The next month, it made an average of 680 bbl. per day for 30 days"

EOG makes North Park Basin discovery in Niobrara shale(28.02.2010)

"The company drilled a lateral in the Niobrara in the little intermountain basin, which has seen only light activity. The well, in Section 32-7n-80w, featured a 4,000-foot single lateral and was completed with multi-stage fracs. The discovery initially produced 550 barrels of oil per day; during its first month on line, it averaged 320 barrels per day. Gravity is 38 degrees"

Oil boom may be erupting in Weld County

Pikavilkaisun peruteella suurin osa maasta tuolla on isojen poikien hallussa(Noble Energy, Anadarko, EOG), mutta Wyomingin puolella Niobrara-maata on pienemmilläkin yhtiöllä.
Coloradon rajojen sisällä olevista kaivoista löytyy dataa täältä(permits-kohdasta)?

LISÄYS 11.03.2010

Samson Oil&Gas saattaa olla vilkaisun arvoinen. Jotain kyllä kertoo että yhtiön markkina-arvo on 40 miljoonaa dollaria ja yhtiöllä on ulkona 1.3 mrd osaketta +300 miljoonan edestä optio-ohjelmia.

"Barnett Combo"

EOG Resources on tuotannoltaan tällä hetkellä 70 prosenttisesti kaasupainoinen yhtiö, mutta yhtiö yrittää agressiivisesti kasvattaa nesteiden osuutta tuotannostaan ja tavoitteena on 50/50 jakauma vuoteen 2013 mennessä. EOG on merkittävä toimija Barnett-maakaasuliuskeella Teksasissa ja se on löytänyt maakaasun lisäksi kohtuullisia määriä nesteitä(öljyä ja NGL) Johnson ja Montague-piirikuntien alueelta.

Q2 CC:

"I'll start with the Barnett Combo Liquids Play. This play continues to gain momentum and the pace of development and progress of our learning curve in Montague County is analogous to when our Johnson County Barnett project lifted off from the launch pad a few years ago.

We started the year with three rigs in the combo and expect to end the year with a seven rig program. Our press release highlighted initial rates on multiple wells we completed during the quarter. Recent well costs are running less than $3 million and typical per well initial rates are between 200 and 500 barrels of oil per day, with 1 to t2 million cubic feet a day of rich gas that contains a lot of natural gas liquids.

Our working interests range from 89% to 100%. Most importantly these wells generate a 30% to 60% direct after-tax rate of return using current oil, gas and NGL prices. As in Johnson County, we believe that per well reserves are improving as we gain experience fracture treating this rock, but it's too early to quantify this improvement. We expect to drill 100 to 120 combo wells this year.

In early July we closed on a tactical Montague/Cooke County acquisition from a private company for stock and cash whereby we acquired 2,000 barrels of equivalent oil per day of net production and 25,000 net unproved acres that were intertwined with our existing acreage.

We now have 194,000 acres in Montague and Cooke counties with an additional 144,000 acres farther west in Clay and Archer counties where the Barnett is thinner. For now we're concentrating only in Montague and Cooke counties where the Barnett is very thick and where we have an overwhelmingly dominant acreage position, i.e. this play is ours."

EOG:n Barnett Combo(kaasu+nesteet) on vielä kehityksen alla mutta luvut ovat melko mielenkiintoisia(alla olevat ovat EOG:n elokuun sijoittaja presentaatiosta):

Reservi potentiaali per kaivo:
Öljy 45 000 tynnyriä
NGL 75 000 tynnyriä
Maakaasu 540 MMcf
Yhteensä 210 000 boe

Koko maa-alueensa Barnett Combon reservipotentiaaliksi EOG arvioi yli 200 miljoonaa boe:ta.

Verrokkina Crescent Pointin lukuja Bakken kaivolle: kaivon hinta $1.3 miljoonaa, reservit per kaivo 145 000 boe. Em. luvuilla ja WTI:n ollessa $50 CPG arvioi IRR:n olevan 185%, WTI $60 nostaa IRR: jo 220%. Saskatchewanin Bakkenin keskimääräisen kaivon tuotanto lähtee 100-200 tynnyristä per päivä.

EOG arvioi kaivokohtaiseksi öljy potentiaaliksi vuoden 2008 maaliskuussa 75 000 tynnyriä ja nyt arvio 45 000, toisaalta kaasuarvio per kaivo on yli tuplaantunut aiemmasta ja CEO Papa sanoi että 210k boe per kaivo arvio on melko varmasti alakanttiin. EOG:n mukaan tuo 200k boe per kaivo vastaa vain 2% talteenottoa maa-aineksesta olevista hiilivedyistä.

EOG:n näkemys Barnettista on vahva: yhtiö on tänä vuonna ostanut alueelta lisää maata ja aikoo porata yli 100 yhdistelmä kaivoa alueelle(3 milj. per kaivo ja >80 WI:llä tuo tarkoittaa $300 miljoonaa), ja tuo näkemys poikkeaa mm. Denburyn, Quicksilver Resoucesin ja Cheasapeakin näkemyksistä sillä nuo ovat myyneet Barnett-oikeuksiaan.