Devon Energy expands Utica Shale presence

Devon Energy has acquired an additional 125,000 net acres in the Utica Shale play in Ohio in Q4-2011. Pursuant to this transaction, Devon holds 235,000 net acres in the Utica Shale play. Continue reading here..

SandRidge – Dynamic deal inline with past transactions

SandRidge Energy Inc will acquire Dynamic Offshore Resources for $1.275 billion. Dynamic’s assets include low operating cost, mature fields (R/P~7 years, 80% developed).


SandRidge will pay $51,000/Daily BOE which is inline with some of the larger deals in the region, viz. Energy XXI-ExxonMobil valued at $44,720/Daily BOE and Apache-Devon valued at $36,696/Daily BOE. Continue reading here..

US O&G Majors' Presentations in May - June 2011

BP:
China's Energy Future

ConocoPhillips:
Investor Update - June 2011
UBS Energy Conference

Chevron:
Australasia Overview - June 2011

Anadarko:
2011 Energy Capital Markets Energy & Power Conference

Devon Energy:
Annual Meeting - June 2011

Shell:

Credit Suisse European Oil & Gas Conference

Chesapeake:
June 2011 Investor Presentation

2011 Annual Meeting of Shareholders

Occidental Petroleum:
2011 UBS Global Oil & Gas Conference

Devon roping in partner for HRB resources... Is Asian NOCs the undeniable choice???

Devon Energy is considering establishing a joint venture (JV) to develop its Horn River shale gas assets in the Canadian province of British Columbia. The company had been approached by potential JV partners for BC's Kitimat liquefied natural gas export project. Interest in North American shale assets from foreign oil companies has heated up in recent months, with some paying top dollar for access to shale fields that hold vast amounts of natural gas. It is highly likely that an Asian NOC had been in discussions with Devon over a tie-up at Horn River. Such a development would boost the prospects for Kitimat LNG.

Following the recent Asians invasion into the Canadian Shales, it is not surprising that investors are attracted to a partnership with Devon at Horn River Basin. The BC shale play is the source of the gas that Apache intends to liquefy at the Kitimat project, which Devon is also eyeing as the route to market for its own Horn River gas.

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Devon going Encana way

Devon's stated openness to a JV comes less than two months after Canadian gas producer  Encana struck a landmark CAD5.4bn (US$5.5bn) deal with state-run PetroChina to develop its Cutback Ridge shale gas project in the Montney formation. Encana subsequently acquired a stake in Kitimat, strongly suggesting that Apache and Encana were keen to involve PetroChina in the development of Canada's first LNG export project.

Looks like Devon is attempting to emulate Encana's success in securing development cash for its unconventional gas play. Specifically, we think it is likely that Devon has been talking with Asian national oil companies. Not only is the lucrative Asia-Pacific market the likely destination for LNG cargoes to be exported from Kitimat, but Chinese and South Korean NOCs in particular are keen to develop their unconventional gas skills

Devon’s assets in HRB

Devon's largely undeveloped Horn River Basin position totals 688sq km, with estimated 'net risked resources' of 227.5bn cubic metres equivalent (bcme) as of February 2011. Much of this acreage is located in close proximity to Encana and Apache's Horn River positions, further supporting the possibility of a development tie-up, with Kitimat as a pipeline destination.

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With the increased natural gas demand and better LNG market conditions prevailing in Asia, Devon might end up signing a joint venture with Chinese, Koreans or other Asians.

Deal snapshot

Source: Derrick Petroleum E&P Transactions Database

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Brazil - sitting on a gold-mine of oil and gas reserves!!!!!

In a dynamic industry such as oil & gas, the recent discoveries in the presalt layers off Brazil could rank as the biggest in the world in several decades. Due to these significant discoveries, the Brazilian government has been grappling with how to structure and regulate exploration, drilling, and the potential for a large influx of foreign investment.

What is pre-salt?

• The pre-salt region is located approximately 170 miles off the coast of Brazil in the Atlantic Ocean. The region likely ranges from Espírito Santo to Santa Catarina State, measuring 497 miles in length and 124 miles in width.
• The region is named “pre-salt” because the oil is held beneath deep and ultra-deep waters, around 3,000 meters of sand and rock, and an additional layer of salt that, in places, reaches thicknesses of over 2,000 meters, making extraction challenging.

 …. tip of an iceberg!!

Over the span of 10 to 15 years, the industry’s deepwater capabilities has progressed manifold along with the realization that the largest prospects lay in deeper and deeper waters. The string of discoveries in the pre-salt region have proven the same.

• In 2006, Petrobras discovered the Tupi field in the Santos Basin which holds estimated reserves of about 5 to 8 billion barrels.
• In September 2010, the Brazilian Government announced the discovery of the Libra field which is said to be largest oil field discovered anywhere in the world since the enormous Kashagan find (over 17 billion barrels) in Kazakstan in 2000.
• Devon Energy, which holds 6 exploration blocks in the pre-salt, announced an discovery in the Campos Basin , quite close to the Jubarte field.
• The  Petrobras as operator and 45% owner, has made an important discovery of very light oil in the ultra-deep waters of the Santos Basin.
• Maersk Oil has discovered oil in the offshore Campos Basin in a license jointly owned with the Brazilian independent OGX.

Source: Derrick Petroleum Planned Exploration Wells Database

As a result of recent major discoveries, oil and natural gas potential reserves in Brazil are now recognized as some of the largest in the world. . Hence, many foreign players are ready to dip their toes in the waters off Brazil.

Source: Derrick Petroleum E&P Transactions Database

The combination of vast untapped potential oil and natural gas resources with a favorable regulatory framework positions Brazil as one of the most attractive petroleum regions in the world today.