Thursday, April 28, 2011

Generic Comparison - Reserves/Production

2010 information Coming Soon.....

Conocophillips - 1st Quarter 2011 Conference Call

$1.82 adjusted EPS - 1.7 MMBOED production - 89% refining utilization - $4 billion cash from operations excluding working captial

Range Resources 2011 April Company Presentation

25% increase in proved developed producing (PDP) reserves - Seven Years of Double-Digit Production Growth - Since 2007, production has increased 54%, while well count has decreased 43%

Helix - First Quarter 2011 Presentation

First quarter average production rate of 160 Mmcfe/d (63% oil) - Q2 production through April 22 averaged approximately 140 Mmcfe/d (~67% oil) - Phoenix production averaged 10.3 MBoe/d for the same period  - Little Burn on track for first production in July (est. 4,500 bpd net)

KKR acquires Carrizo’s Barnett assets for $104 million. Production is valued at $10,000/mcfe while peers value at $12,500/mcfe- How?

Carrizo Oil & Gas agreed to sell substantially all of its Barnett Shale Tier 1 properties to KKR Natural Resources, the partnership formed between an affiliate of Kohlberg Kravis Roberts & Co LP (KKR) and Premier Natural Resources, for $104 million. The properties that Carrizo are selling are largely in Parker County and represent only a small fraction of the company's Barnett Shale production, which equals about 100 million cubic feet of natural gas per day, said Richard Hunter, Carrizo's director of investor relations. The properties do not include Carrizo's highly productive, 22-well padsite at the University of Texas at Arlington, Hunter said.
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Carrizo President and CEO S. P. "Chip" Johnson, IV commented on the sale, "Our plan to focus our Barnett Shale development drilling on our Core properties in Tarrant County and our success in the initial development of our liquids-rich Eagle Ford Shale and Niobrara resource plays made our Tier 1 Barnett property a candidate for divestiture.

"With their significant proved developed producing reserve component in a reservoir we know well through our current operations in the region, the assets are a great fit for our KKR Natural Resources platform. We are pleased to add these assets to our oil and gas portfolio and remain excited about the opportunity to grow the KNR platform through the acquisition of additional oil and gas properties in North America," said Jonathan Smidt, a Member at KKR and a senior member of KKR's Energy and Infrastructure business.

KKR has been active acquiring conventional and unconventional assets in 2010. The following snapshot shows the deals that KKR clinched in 2010.

Acquisition metrics including probable reserves
The approximately 13,000 acres being sold include 75 gross (58.5 net) wells currently producing at an approximate gross rate of 15.7 MMcfe per day (8.3 MMcfed net). Estimated proved reserves associated with the divested properties amount to 122.4 Bcfe, 55% of which are proved undeveloped, as determined by Carrizo's third party engineers at year-end 2010.

The probable reserves associated with this acquisition are approximately 100 Bcfe. The resource potential for the acquisition based on 58.5 net locations and 1.8 Bcf/well is estimated to be approximately $105 Bcf.

The probable reserves can be valued at $17 million based on $1/boe. The rest of the deal value could be assigned for proved reserves which gives the production metrics to be ~$62,000/flowing barrel (~$10,000/flowing mcfe) whereas peers value the reserves or production at $75,000/flowing barrel (~$12,500/flowing mcfe).

PTTEP to invest $45 billion to boost reserves; Focus to be on S. America and Africa

PTTEP could spend $45 billion to boost petroleum reserves over the next 10 years and may consider a share issue to fund the investment.

PTTEP expects its petroleum reserves to reach 3 billion barrels of oil equivalent (boepd) by 2020. 'In the next 10 years, PTTEP will need up to $45 billion. Company is short of about $11-12 billion, may look at financial options to raise more funds.

PTTEP to focus on South America and Africa

PTTEP has petroleum reserves of just 1.1 billion boepd, Company may buy more assets overseas to boost reserves and meet the country's energy needs. PTTEP is exploring business opportunities in new areas of South America and Africa, with a view to turning the areas into the company's third business pillar, following Thailand plus Burma and Australia plus Canada.

The company's success in collaborating with Norway's national oil company Statoil in the Kai Kos Dehseh (KKD) oil sands project in Canada late last year is the inspiration behind further expansion of oil and gas exploration and production overseas.

PTTEP's existing operations were now very strong and stable. Key oil and gas exploration and production in the Gulf of Thailand and Burma, comprises many fields, such as Thailand's Sirikit, Bongkot and Arthit and Burma's Yadana and Yetagun.

PTTEP is making its presence felt in Australia and Canada. Production at the Montara field off Australia is expected to resume by the end of this year, while Canada commenced production early in the year.

The company is looking to invest in other Canadian exploration and production projects with Statoil, with the two businesses having just inked an agreement to cooperate in this area.

PTTEP has set a target to have a production capacity of 900,000 barrels of oil equivalent per day [boe/d] by 2020. The production sites they have right now will produce half of the target by that year. Therefore, company would look for new projects to help us accomplish the goal.

The company presently aims to produce and sell nearly 300,000boe/d of oil and gas, while the KKD project is expected to have a capacity of 150,000boe/d by 2020. KKD is scheduled to produce 8,000boe/d by the end of this year, rising to 80,000-100,000 within the next five years.

The company president said PTTEP had divided its projects into three groups: those that are already generating revenue; those that are going to generate revenue; and projects in which it has to invest for the exploration stage.

The new projects PTTEP is seeking may be greenfield sites or existing projects. The latter type of deal is more likely to be concluded, as the company needs projects that can generate revenue immediately, Anon (President) said.

"We're looking for many deals in South American countries such as Brazil, and some in Africa. These are unfamiliar areas for PTTEP, so we have to consider everything carefully. We need partners if we want to grow in these regions, compete with existing players and learn new things in which we are not experts," he said.


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