Wednesday, February 23, 2011

Woodside Petroleum reported 2010 full year production of 72.7 mmboe, down 10% compared to 2009

Woodside reported a 10% decrease in its 2010 annual production compared to 2009 due to the sale of Otway interests and oil field natural decline. The company recorded 20% growth in its annual revenue due to higher commodity prices and the positive conclusion of LNG price negotiations.
Key Points:


- Production of 72.7 MMboe in line with guidance (2010 target range: 70 – 75 MMboe), but down 10.1% (2009: 80.9 MMboe), largely due to the Otway sale in March 2010 and oil-field natural decline.


- Annual sales revenue of $4,193 million up 20.2% (2009: $3,487 million) despite the lower sales volume of 72.2 million barrels oil equivalent (2009: 80.7 MMboe), largely due to higher commodity prices and the positive conclusion of certain LNG pricing negotiations.


- Reserves replacement ratio remains strong at 148%, up 1.4% (2009: 146%). Proved plus Probable reserves at the end of 2010 were 1,680.1 MMboe, up 1.7% (2009: 1,651.2 MMboe). Proved plus Probable reserve to production ratio has increased to 24 years.


- 2010 Operational highlights

- 2010 Project highlights.

Pemex reduces oil and gas drilling by 42%; planned well count slumps down from 994 to 580; gas ouput to take a dip

Where many oil and gas companies are planning an aggressive drilling programme globally, Mexico’s state oil monopoly, Pemex will drastically cut down the number of wells planned to be drilled this year.
  • A nearly two-thirds drop in planned drilling at the Chicontepec oil project as well as sharply reduced development activities at natural gas fields in the northern Burgos basin near the Texas border account for much of the planned reduction, according to the plan which was released by the National Hydrocarbons Commission on Tuesday.
  • Overall, Pemex will drill 580 wells this year, including 32 exploration probes, compared with 994 wells last year.

  • Many Pemex contractors like Schlumberger Ltd and Halliburton are still reeling from a slowdown in oil and gas activity in Mexico that began in 2010.
  • Chicontepec, a massive, challenging onshore area , on which billions of dollars have been invested till now, has consistently failed to yield as much oil as Pemex has promised.
  • Burgos lies over some of the most bitterly contested drug smuggling territory because of which its activities were hampered by drug gang activity in 2010.               
  • Pemex drilled 816 exploration and development wells in its northern region, which includes Chicontepec, Burgos and several smaller developments, last year.
Oil to rise, Gas to fall!
  • The natural gas output is estimated to  fall from 6.986 billion cubic feet per day to 6.132 billion cubic feet per day by December 2011.
  • The major reduction in wells will come from the Canterall oilfield.


  •  Burgos gas production will decline by 11.5%.
  • Oil will take a jump to 2.626 million barrels per day by December 2011 which is about 2% more than the oil output last year.
  • Chicontepec oil production is forcasted to rise to 70,000 bpd by December 2011 from 59,000 bpd at the end of 2010.

To know more about Pemex, please click here:

Petrobras takes a slice in Benin block and seeks West Africa to be analogous to Brazil's pre-salt discoveries..

Petrobras acquired a 50% interest in Block 4, located off the coast of Benin in West Africa, from Compagnie Beninoise des Hydrocarbures (CBH), a subsidiary of Lusitania Petroleum, which maintains the remaining 50% interest. The block covers an area of approximately 7,400 sq km, at a water depth that varies from 200 to 3,000 meters, at an average distance of 60 km from the coast.


CBH continues to be the operator of the asset; however, Petrobras has the right to take over the operation. The work commitment assumed by the company is to collect and process 2,250 sq km of 3D seismic data by the end of this year. Once the exploratory potential of the area is confirmed, the consortium will undertake to drill three wells.

West Africa is analogous to Brazil's pre-salt province..

Petrobras’ business plan for 2010-2014 includes exploration focus on West coast of Africa. In-line with this plan, the deal represents further expansion of Petrobras' portfolio in the West Coast of Africa, which company geologists say holds similarities to Brazil's pre-salt province. Also, Petrobras aims to find light oil, reproducing the discoveries that took place in the African continent. This is aligned with the company’s strategy to seek for opportunities in deep and ultra deep waters in the region where it  already has operations in countries like Nigeria, Angola, Tanzania, Namibia and Libya. 


To know what other operators are doing in West Africa, please click here: http://docsearch.derrickpetroleum.com/research/q/%22west%20africa%22.html

Chesapeake reported 2010 full year results; Production averages 2.84 bcfe/d, up 14% to 2009, setting record for 21st consecutive year

Chesapeake's average daily production for the 2010 full year of 2.836 bcfe consisted of 2.534 bcf (89% on a natural gas equivalent basis) and 50,397 bbls (11% on a natural gas equivalent basis). Chesapeake anticipates delivering a production growth rate of 25% over the next two years, net of property divestitures pursuant to its 25/25 plan.
Keypoints:

-  2010 average daily production of 2.84 bcfe/d, up 14% after asset sales. Oil and natural gas liquids production of 18.4 mmbbls; up 56% YOY to 11% of total production.
- Acquired $4.7 billion (net of leasehold sales) of primarily liquids-focused leasehold.





















  - 15.2 tcfe of proved reserves. 269 tcfe unrisked unproved resources (~138 tcf from natural gas shale plays, ~15 billion boe from liquids-rich plays, ~38 tcfe from other conventional and unconventional plays)
    
- Aggressively shifting capital to liquid rich plays, as part of 25/25 plan. Production from liquids anticipated to be 20-25% of total in 2012.




















SM Energy considers options for Eagle Ford acreage

SM Energy Company is initiating a marketing process to sell down or joint venture a portion of its total position in the Eagle Ford shale play. The company currently estimates that it will sell roughly 20% to 30% of its total acreage position and that as a result the net spending for 2011 will be approximately $500 million after adjusting for capital expenditures associated with divested properties and possible drilling carries. Bank of America Merrill Lynch has been engaged to market these assets.


SM Energy's operated Eagle Ford acreage overview:
-- ~165,000 net acres; Largely 100% WI
-- Gross operated production currently at 59 MMcf/d and 2,000 Bbl/d; As of Q3-2010, the net production to the company was 38.3 MMcfe/d (Gas 79%)
-- Currently two operated drilling rigs running in play
-- Nine wells commenced drilling during Q3-10; Total of 40 gross wells planned for 2010.


SM Energy's non-operated Eagle Ford acreage overview:
-- ~84,500 net acres; Roughly 25% WI
-- Net production as of Q3-2010 was 13.8 MMcfe/d (Gas 51%)
-- Six rigs currently running; 29 wells were spud during Q3-10
-- SM plans on participating in the midstream and downstream arrangements.


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