"What Pemex has also indicated, some new contractual specifications for the rigs it will accept. So there's a belief if Pemex holds to those standards that the incumbent rigs will not necessarily qualify for the forthcoming contracts, so that the number of rigs will remain constant or hopefully increase, but the actual rigs that are contracted in Mexico will change.
Robin Shoemaker - Citigroup - Analyst
Okay. So that was the one where they are specifying the rig can only be a certain number of years old, like built after a certain
date?
William Chadwick - Ensco - COO & EVP
That's correct."
"Dan Rabun - Ensco - Chairman, President & CEO
As we've said in previous quarters, if we can't identify new
investment opportunities, our Board continues at every Board meeting to evaluate opportunities to return capital to shareholders, either in the form of dividends or share repurchases, but this, of course, is a Board level decision. I would like to say that we have spent a great deal of time in the last three to four months soliciting the views of our major stockholders on this issue, and we're very mindful of their thoughts on this matter. And I will say that there also continues to remain an extreme diversity of views on this subject among our shareholders."
"Ian MacPherson - Simmons & Company - Analyst
Okay, got it. Unrelated question, could you comment on the -- there was some industry press commentary about Ensco and
Keppel teaming together to work on a low cost drillship concept for Petrobras. Is there anything to that, that you would want
to comment on now, or do you think that was overplayed in the press?
Rabun:
Well, we don't comment on rumors. And you all know, we actively pursue every opportunity that exists. But I was surprised to
see the article."
"The race for Colombia's presidency began on Saturday, with former defense minister Juan Manuel Santos the favorite after the South American nation's popular incumbent was blocked from running for a third term..."
"Ved kvartalspresentasjonen ble det klart at Aker Spitsbergen og Aker Barents er bokført til henholdsvis 942 og 905 millioner dollar (5,6 og 5,4 milliarder kroner) ved utgangen av 2009. Pareto-analytikeren tviler på om det er en pris Aker vil oppnå ved et salg av riggene.
- Det er ikke noen tvil om at dette blir gode rigger, men de må bevise at de fungerer først. Nå er disse riggene også bokført veldig høyt, over 900 milliarder dollar, og akkurat i dag tror jeg det er veldig vanskelig å få mer enn 600-700 millioner dollar, sier Stubsrud."
"Men konsernsjefen avviser at det ligger konkrete planer per dags dato.
- VI har ingen konkrete prosesser på salg, børsnotering eller fusjoner i dag, så det er et tema foran oss og ikke bak oss, sier Eriksen"
"Jonathan Fleming – Cormark Securities
Looking at this 800 barrel per day well you drilled into the water flood part of the Pembina pool I am wondering how long that well has been on production? Can you give some color around if there is any water cut in that well and where you would see the reserves on that type well go relative to the type curve that you had at your investor day? Finally, are you going to have any follow-up type wells on that in the water flood part of the pool?
Bob Shepherd
The well in question has been on a relatively short time. We have just over a week’s production from the well. It is currently being evaluated and we are very encouraged by those early results. I would want to emphasize we have tremendous amount of follow-up potential both to this well in the interior parts of the field in PCU9 and as Murray mentioned we are extending the program well beyond that. It is the first of many I think you are going to see and it is early days in the well but very encouraging production rates.
Murray Nunns
I will follow-up to that a little bit. Overall if you look at our holding approximately 30% are what we classify as pool centered and about 70% are either perimeter or halo positions. I think our program will have a slight bend to the perimeter halos but we will continue to evaluate and develop on the interior pools because what we have seen is there is a good spread of results on the interior pools and we believe in the long run this technique will work for both areas.
It will work for the interior of the pools and it will work for the perimeter and the halos. So we are encouraged on both sides and we think this well in particular can be equal to or exceed anything that has been found in the trend to date. It is just an indicator in an area where there is a little bit of pressure in the center of these pools there is ample opportunity for us to develop those as well as our perimeter and halo positions."
"One of the biggest areas of reserve growth this year was through horizontal drilling in the Leitchville area and then just generally across all of the properties we are putting an additional focus on"
We had geared our wells towards injecting water. We were getting rates of up to 500 barrels per day of water injection initially. This compared with vertical injection rates of 40-50 barrels per day. We were very pleased with the fact the injection rate stayed up a good rates over the period of 1-1.5 years. What we decided to do last year was let’s take a couple of these water wells or injection wells and see how much oil we can get out of them. We were very encouraged. We weren’t getting the rates that are being reported in some of the halo wells recently but we were taking wells from basically nothing and taking them up into the range of 60-90 barrels per day.
Fergal Kelly – RBC Capital Markets
I was wondering if you could give us some color on what your plans are in 2010 for both the greater Swan Hills area and also July Lake?
Murray Nunns
There are two significant areas that are not in the top three in terms of our overall programs but are areas we are paying particular attention to. For the Swan Hills area, we are out there testing a few things. We are doing some obvious development work on the front of the [reefs]. We are also kind of taking a look at the platform. There is enough interest there that we think there is some application for the horizontal but we are just not exactly certain how it grades out yet. We have a very extensive position so it is a bit more of an exploration, poke and evaluate type exercise.
Then you are into a mode where you are in-field drilling. Areas like Waskada, the thought right now is 10-12 horizontals per section. We think roughly the same at Dodsland as we move through the Cardium. I don’t think we have hit the right number yet but it might be 6 and it might 8 wells per section.
"The Deer Mountain Unit #2 12-29-68-8W5 Horizontal Multi-Stage Fracture Well:
The well was drilled to a vertical depth of 2,450 meters into the Beaverhill Lake carbonate reservoir with a horizontal leg of 1,165 meters. The horizontal section was successfully completed using 10 separate, 60 cubic meter 28% hydrochloric acid fracture stimulation treatments. Arcan has been production testing the well to establish the productivity of the well and to recover the spent acid from the formation. Arcan is pleased to announce that after 10 days of testing, it has been established that the well has a productive capacity at the end of the test in excess of 600 barrels per day of 40 API light sweet oil. Arcan is presently tying the well to its existing Arcan operated oil pipeline and production facility and will continue to monitor the well closely for longer term productivity. Arcan sees this well as a significant step forward in the continuing process of accelerating production and reserve capture under the existing ERCB approved Enhanced Oil Recovery Scheme for the Unit.
This well represents a shift in the exploitation of the Swan Hills reef complex. Arcan intends to rapidly realign its development plans from drilling economic vertical producers to drilling highly productive horizontal producers. The 12-29 well presently exhibits productive capability of up to 8 times that of an average vertical producer at only two times the cost. The horizontal drilling and multi stage fracture completion capital along with associated equipment and tie in costs is expected to be approximately $4.7 million. Arcan already has existing operated pipelines and facilities in place to accommodate 4,000 barrels per day with room for expansion...
"Arcan owns an 81% interest in Deer mountain Unit #2 ("the Unit"). Initial production from the Unit commenced in 1964 and it was unitized in 1984. Recovery from the Unit is low compared to offsetting pools in the field because of a historic lack of drilling and water injection"
"At deposition, carbonate sediments often have very high
porosities (35%–75%) but this decreases sharply as the
sediment is altered and buried to reservoir depths. As
a result, carbonate reservoirs exhibit large and abrupt variations in rock type distribution"
"The oil price has been relatively stable during the 2nd half of 2009 and into 2010. Despite the low volume of new fixtures in 2009 as a whole, we now see increased enquiries and pre-tendering activity in the offshore drilling markets"
"Seadrill will be in a stronger position to undertake transactions following the planned listing in the United States. This strategy could enable Seadrill to increase its dividend and thereby de-risk our $3.00 dividend as well as our bull case valuation of 240 crowns (per share)," Morgan Stanley says in a note. "Seadrill will be in a stronger position to undertake transactions following the planned listing in the US. This strategy could enable Seadrill to increase its dividend and thereby de-risk our $3.00 dividend as well as our bull case valuation of 240 crowns"
"The company remains cautious regarding the near-term outlook for the jackup rig sector, with the combination of new rig supply and growing rig availability in the existing fleet currently exceeding a modest increase in tendering activity. A total of 33 jackup rigs are expected to complete construction programs in 2010, with an additional 17 units in 2011. An estimated 85% of these new rigs are currently uncommitted. In addition, approximately 47% of the active fleet worldwide should complete contracts during the year"
"At Bigstone, Delphi has brought its first Cardium horizontal oil well (0.55 net) on production. During clean-up flow after a multi-stage frac completion, the well produced approximately 985 barrels of oil per day ("bbls/d") over a five day period during which the well recovered 100 percent of its frac load fluid. The well has since been placed on production and over the past 14 days has averaged 530 bbls/d of 50 API light oil and 600 thousand cubic feet of natural gas per day ("mcf/d') for a total of 630 barrels of oil equivalent per day ("boe/d"). The well has been flowing against a line pressure of 700 kPa and will be equipped with a pump prior to break-up. The Cardium formation penetrated by this well is approximately 10 metres thick and is estimated to contain 8 to 12 million barrels of oil in place per section"
"Ostopäätös perustuu 40 prosenttisesti tiedossa oleviin lukuihn, 50% johdon track recordiin ja 10% Kaakkois-Saskatchewanin ja Manitoban geologiasta lukemaani(Manitobassa saattaisi olla jäljellä jonkin verran pieniä kevyt öljy pooleja, jotka ovat merkityksettömiä isoille +100 000 boe/päivä-yhtiöille, mutta arvokkaita pienille). Tuotto-odotus ei ole tällä hetkellä korkea, mutta tämän hetken tiedolla riskikään ei ole minusta merkittävä. Colbornen historian tai osan siitä tuntien tässä kasataan Crescent Pointille tai Petrobakkenille parin vuoden sisällä myytävää yhtiötä"
"Lundin Petroleum has drilled three wells on the Lagansky Block and whilst two wells were unsuccessful, the
Morskaya well has provided gross contingent resource on block of 233 MMboe of which 213 MMbbls is oil. Whilst the valuation of these resources is extremely subjective and a range of values can be derived and supported, Lundin Petroleum has assessed the value of discoveries to date and impaired the carrying value of the Lagansky
Block, net of deferred tax and minority interest, to MSEK 2,798.2. This has resulted in an impairment charge to the income statement of MSEK 3,741.3 in the fourth quarter of 2009. An impairment charge of MSEK 613.7 was recorded in the fourth quarter of 2008 and primarily related to the impairment of the operated onshore Russian production properties.
As part of the Valkyries acquisition, an amount of MUSD 119.0 (MSEK 862.1) was assigned to Goodwill, reflecting the excess of purchase consideration over the fair value of the acquired assets. The Lagansky Block still has exploration potential but following the results of the Petrovskaya and Laganskaya wells, a write off the Goodwill is appropriate in the circumstances, and as such, MUSD 119.0 (MSEK 847.2) was charged to the income statement in the fourth quarter of 2009"
"Increase recovery factors through infill drilling, water flood
optimization and improved technology"
08.05.2009: "Bakken Shale Update
Rosetta has captured more than 230,000 net acres in the Alberta Basin and plans to drill a minimum of two exploratory wells this year to help quantify the resource potential of the play. Well permitting is currently underway and the expected spud date for this program is in the third quarter of 2009. The Bakken Shale is anticipated to be at a vertical depth of roughly 5,000 - 6,000 ft and normally pressured"
10.09.2009: "Alberta Basin Bakken Shale Oil Program
Tribal Gunsight 31-16H Well Drilling Update
The Tribal Gunsight well was spud on August 25th and reached the top of its target objective at a depth of roughly 4,600 feet, as expected. Currently, coring operations are underway in the targeted zones, which include the Lodgepole, Bakken, and Three Forks intervals. Rosetta expects to core up to 180 feet of interval. Following the coring phase, Rosetta will log the vertical well section and, in combination with the core data, make a determination as to whether or not the wellbore will be drilled horizontally.
Three additional wells have been permitted in the Alberta Basin Bakken Shale Oil play where Rosetta has a roughly 230,000 net acre position"
06.11.2009: "Alberta Basin Bakken: Initial vertical exploratory well taken horizontal and second vertical exploratory well spud.
The Company's first exploratory well in the Alberta Basin to test the Lodgepole, Bakken and Three Forks formations has been successfully drilled horizontally and is currently awaiting completion. This initial exploratory well in Glacier County, Montana, the Tribal Gunsight #31-16H, was drilled vertically, cored and logged. Based on data from the vertical well, the company then drilled horizontally to a total measured depth of 9,206 feet (4,837 feet TVD). The well has a lateral length of about 4,100 feet.
Rosetta has more than 230,000 net acres in this trend and recently spud its second well in the play, the Tribal Riverbend #12-13H"
"Seadrill sends employees to Denmark to weight loss centers and pays for it"
"The kingdom plans to inject 40 million standard cubic feet per day of CO2 into the field, and has said this is part of the global push to trap emissions rather than because it needs to enhance oil recovery from the field"
"DnB Nor Markets kutter kursmålet på Seadrill-aksjen fra 120 kroner til 115 kroner. De opprettholder salgsanbefalingen på aksjen. Det kommer frem i morgenrapporten mandag.
- Seadrill har sikret seg en kontrakt for det nybygde West Gemini. Boreskipet skal etter avtalen inn på en 2+1 års kontrakt med Total utenfor Angola. Vi er ikke altfor positive til dette segmentet og kontrakten, på rundt 445.000 dollar per dag, lå også under det nivået vi hadde forventet, skriver DnB Nor Markets i morgenrapporten"
"One Exploration Inc. ("OneEx" - TSXV: OE.A) and Canext Energy Ltd. ("Canext" - TSXV: CXZ) are pleased to jointly announce that the two companies have entered in to an arrangement agreement (the "Arrangement Agreement") pursuant to which OneEx will, subject to certain conditions, acquire all of the issued and outstanding common shares of Canext ("Canext Shares") by way of a plan of arrangement under the Business Corporations Act (Alberta) (the "Arrangement")"
"Acquisition metrics, based on the net acquisition cost of $58.7
million
- $58,700 per boe/d
- $9.78/ boe P+P
- 4.9 times estimated 2010 cash flow (based on WTI US $75.00/barrel
and AECO CDN $5.00/GJ)"
"Seadrill has received a letter of award from an international E&P operator for the ultra-deepwater drillship West Gemini under construction. The letter of award represents a two-year contract with an estimated contract value of approximately US$345 million, including mobilization fee. Furthermore, the operator has the right to extend the contract for an additional year at a similar dayrate. West Gemini is expected to be completed early July 2010 and will subsequently relocate from Korea to West Africa to commence operations under the two-year contract"
"The Company drilled 22 gross (17.9 net) wells in the fourth quarter 2009, resulting in 22 gross (17.9 net) oil wells, for a 100
percent success rate"
"At Taylorton, the well completion technique continues to evolve, with the three most recent Legacy operated wells achieving a
26 percent average improvement in the first 90 days oil production rate compared to the historical average"
"At Heward, analysis has determined that a number of previously drilled Bakken producers had been frac’d out of zone. Legacy
has revised the completion program and fracture stimulation treatment and applied it to the three recent Legacy operated wells in Heward. The three wells have achieved a 37 percent average improvement in the first 30 days oil production rate compared to the historical average"
"Concurrent with the execution of the development program,
Legacy continues to evaluate and bring forward incremental opportunities that could add significant value for shareholders; including work‐overs, infill drilling, step‐out drilling, secondary recovery projects and greenfield initiatives"
"Canacol Energy Ltd. (“Canacol” or the “Corporation”) (TSX VENTURE: CNE) is pleased to announce a US$46 million capital budget in 2010 for exploration and development activities in Colombia, Guyana, and Brazil. The budget includes the drilling of 15 wells, which include 3 exploration wells, one each in Colombia, Guyana, and Brazil, and 3 appraisal and 9 development wells in Colombia"
"The Corporation anticipates production to average 4,200 barrels of oil per day (“bopd”) net production revenue in 2010, with an exit rate of 7,000 bopd, which excludes any production resulting from exploration success. Canacol has US$25 million in cash at the end of Q4, 2009, and the 2010 work program is expected to be fully funded from a combination of cash on hand and cash-flow from existing operations"
"Chinkeh allows for secondary recovery up to 40% RF"
In the third quarter 2009 report certain operational events impacting the fourth quarter performance were addressed. This included downtime related to the repair work on the deepwater unit West Hercules following a typhoon in the South China Sea that put the rig out of work for most of October and a three week yard-stay for the harsh environment deepwater drillship West Navigator. In the aftermath of the yard-stay, West Navigator has experienced one week of downtime in December as well as approximately 30 days downtime in January/February 2010 due to adjustment of various surveyed equipment. The semi-submersible rig West Alpha completed a mandatory survey mid October in line with original budget. The rig received compensation from the charterer for the yard-stay period. In connection with these yard-stays a US$15 million charge related to repair and maintenance work will be taken in the Income Statement. Furthermore, in December, the deepwater semi West Sirius incurred approximately 18 days of downtime related to BOP challenges. The harsh environment semi-submersible rig West Venture completed a short yard-stay for installation of third party equipment in connection with its operation on the Troll field in Norway this week. The rig has been on dayrate during the yard-stay. There has not been any other significant downtime period that has influenced the utilization of the operating fleet in the fourth quarter 2009 or so far in the first quarter 2010.
"Scorpion International Ltd. ("Scorpion" or "the Company"), a wholly-owned subsidiary of Scorpion Offshore Ltd., has received a letter of intent ("LOI") from an affiliate of an American independent oil and gas company for a drilling program offshore Brazil utilizing the Offshore Mischief. The program has an estimated duration between 165 and 240 days. Additionally, the operator shall have the right to an Optional Period to include up to an additional 240 days. The contract is expected to begin on or before 1 July 2010 and has an estimated value of between US$ 24 and US$ 33 million. The Offshore Mischief is Scorpion's seventh ultra-premium jackup and is scheduled for delivery from the Lamprell shipyard in Sharjah in April 2010"
"Rowan could invest in ultra-deep-water rigs and strengthen its grip on the market for high-end jack-up rigs, their shallow water counterpart, Rowan's chief executive Matt Ralls told the Credit Suisse Energy Summit in Vail, Colorado.."
