BG plans to invest $500 million in Bolivian Gas fields over the next 5 years

BG in Bolivia:

BG plc demerged from British Gas in 1997 and is in charge of exploration and production and the overseas operations of British Gas. The company entered Bolivia in 1998 and announced the discovery of Margarita field. Currently, BG Group has interests in six exploration and exploitation licenses in Bolivia, including an interest in two gas condensate fields, Margarita and Itau. Gas and liquids are delivered to Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), Bolivian State Energy company to supply Brazilian, Argentine and domestic markets.

Source: BG

Bolivia - Exploration and Production:

Bolivia nationalized its oil and gas industry in 2006 and the country is currently planning to increase its O&G production by allowing international partners to meet export commitments with neighboring Argentina and Brazil.

“Over $1.8 billion will be invested in natural gas exploration this year, more than doubling the amount spent last year. Two-thirds of that will come from YPFB, with private companies putting up the rest”, Villegas, President of YPFB said.

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Bolivia has been successful in bringing a number of multinational partners on board. While there are concerns over the legal protection afforded to foreign investors, BG Group, Total, Gazprom and a number of firms are comfortable with the risk.

Significant Transactions of BG in the year 2010:

Source: Derrick Petroleum E&P Transactions Database

Major E&P companies showing interest in Bolivia:

"Repsol YPF SA, BG Group Plc and Pan American Energy LLC will jointly invest $1.3 billion in the Margarita and Huacaya fields by 2014", YPFB, said in an e-mailed statement. "YPFB, Repsol, Petrobras and Total will invest $750 million dollars in the San Alberto and San Antonio gas fields", according to a separate statement.

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The investments in Margarita and Huacaya will increase the fields’ gas production to 14 million cubic meters in 2014 from a current 2 million. Output at San Alberto and San Antonio will increase by 5 million cubic meters per day, adding to an average 25 million now.

Source Documents:

BG - 2011 Strategy Presentation

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GHANA - RECENT OIL DISCOVERIES AND EXPLORATION PLANS FOR 2011

Ghana is a country in West Africa with significant recent oil discoveries. West African exploration got off to a bang with the discovery of the Jubilee oil field in June 2007 following the drilling of the Mahogany-1well in Ghana's deep waters. This was the largest oil find in a decade in West Africa. Following this, other significant finds were made in Ghana and along the West African margin. For a list of West African oil discoveries in 2010 - 2011 click here. This article lists the recent significant discoveries in Ghana and exploration plans of upstream companies planning to drill offshore Ghana. For further information on Angola (South West Africa), click here. For a list of discoveries in neighbouring Cote D'Ivoire and exploration activity in 2011 - 2012 click here. All information has been sourced from Derrick Petroleum's extensive exploration and deals databases.

Exploration Plans

Source: Derrick Planned Exploration Wells Database. The number of columns has been minimized to fit the table on the page. The actual database has many more parameters listed and recorded. 

           1. Cape Three Points Deep Water Block     The Cape Three Points Deepwater block encompasses an area of 5,146 sq km in water depths ranging            from 200 to 3,000 m in the Tano Basin. The Dzata - 1 well was drilled in May 2009 by the Aban Abraham drillship. The well struck hydrocarbons over 94 m, including a 25 m net section of layered oil and gas pay. The well is temporarily plugged and abandoned for future appraisal activities. A second exploration well is further planned to be drilled in 2011. The partners in the block are:

     

 

Map showing locations of the following blocks; Deepwater Tano Block, West Cape Three Points Block, Offshore Cape Three Points Block, Offshore Cape Three Points South Block, Deepwater Tano Cape Three Points Block and Cape Three Points Deepwater Block. Source: Modified from Kosmos Energy

 2. Keta BlockKeta block is located offshore Eastern Ghana, positioned at the heart of the Volta River Basin. The Keta block covers an area of 5500 sq kms, in water depths ranging from 1000 m to 2800 m. The block is covered by 1600 sq km of good quality 3D seismic. The Cuda-1x exploration well, the first well to target the Cuda prospect estimated to contain 325 mmbbls of mean prospective resources was drilled in Q4, 2008. It encountered an unexpectedly severe high pressure zone in the top of the Upper Cretaceous which ultimately required Cuda-1x to be plugged and abandoned. Afren is studying the results from this well and is planning to drill another exploration well in 2011. The partners in the block are,

2.      

 Keta Block Location. Source: Afren 

      3.      West Cape Three Points Block The block covers an area of 1,761 sq km, is about 12 kms from the Ghanaian coastline, with water depth varying from 50 to 1800 m. The operator spudded the Teak-1 exploration well in Q4 2010 which was an oil discovery. On Mar 28, 2011, the Teak-2 exploration well encountered approximately 90 net feet of high-quality oil, condensate and natural gas pay in stacked Campanian- and Turonian-age reservoirs. After preserving the well, the partners plan to drill the Banda prospect on the same block. As per Anadarko's Feb 2011 presentation, three more prospects namely Banda Deep/Cenomanian, South Central Channel and Dahoma Updip have been identified on the block, and which are planned to be drilled from Q2 to Q3 2011. The partners in the block are: 

      4.      Deepwater Tano Cape Three Points Block Tano Cape Three Points Block is located offshore of the Ghana coast in deepwater. Hess acquired 1,038km of 2D seismic and 1,512 km² of 3D seismic in 2007. Both data have been processed and interpreted. In addition, it conducted sea bed logging in 2008 and drilled one exploration well – the Ankrobra-1 in 2008. The well was however unsuccessful. Hess spud an exploration well on the Paradise prospect in Q1 2011 which encountered 370 feet of net hydrocarbon pay in two separate intervals. Hess Corp. holds a 100% interest in the Deepwater Tano Cape Three Points License.

      5.      Offshore Cape Three Points Block The block covers an area of 2080 sq km offshore Ghana. The world-class Jubilee oil field was discovered in the adjacent licence block during 2007 and a number of further discoveries have been announced since, substantially de-risking the block and highlighting its significant potential. During 2007, more than 800 sq km of 3D seismic was shot over the block. In September 2009, an oil and gas discovery was made at the Sankofa-1A exploration well. The well was drilled by the Blackford Dolphin semisub and it encountered a net column of approximately 3.2 m of oil and 33.1 m of gas in reservoir sands of Campanian age. In 2010, a further 860 sq km 3D seismic survey was acquired to augment the 1,037 sq km 3D seismic survey completed in 2007. The seismic programme covers the eastern area of the block where an exploration well will be drilled in 2011.

6.      Offshore Cape Three Points South Block

      The Offshore Cape Three Points South (OCTPS) block lies immediately to the south of the OCTP block and was awarded to Vitol in June 2008. More than 600 sq km of extra 3D seismic survey has been carried out on the block. An exploration well was drilled in 2010 and the evaluation of the results is continuing. The partners in the licence are;

  7.      Deepwater Tano Licence

       The Deepwater Tano licence covers an area of 831 sq km, in the Tano Basin, offshore Ghana. In Q1, 2009, the Tweneboa-1 well, lying about 16 miles west of the Jubilee oilfield on the adjacent West Cape Three Points Block, was drilled in water depths of 1148 m to a total depth of 3593 and discovered significant amounts of oil & gas in it. Two more prospects namely Owo and Onyina were also identified and the Owo prospect was drilled in early June 2010. The deviated well, located approximately 6km to the west of the Tweneboa wells, encountered a gross vertical reservoir interval of 154 metres containing 53 metres of net oil pay in two zones of high quality stacked reservoir sandstones with 33 - 36 API oil. The second prospect Onyina was spudded in November 2010 to explore a large, high-risk, Campanian prospect between the Tweneboa and Jubilee fields in the northeast of the Deepwater Tano Licence. The well encountered water bearing reservoirs. The partners in the block are,

Source: Kosmos

       

  

      8.      Offshore Accra Contract Area

The Offshore Accra Contract Area covers an area of about 2,000 sq km and is located southeast of Accra, the capital of the Republic of Ghana. Existing 3D seismic studies have identified more than 100 mmbls of oil potential in the area. 3D seismic was acquired over the deep water section of the block early in 2010. This seismic is presently being processed and vintage seismic reprocessed with a view to maturing a prospect for drilling in 2012. The partners in the block are,
 

Source: Tap Oil

Cenovus posted 14% production growth in Foster Creek & Christina Lake for Q1 2011; Plans to invest $1.7 billion - $1.9 billion for the rest of 2011

Cenovus was formed on 2009 from the split of Encana Corporation into two independent publicly traded energy companies: one an integrated oil company (Cenovus), the other a natural gas company (Encana). The company had operations in Athabasca region of Northern Alberta and southern Saskatchewan.

Source: Derrick Petroleum E&P Transactions Database

Cenovus posted increase in oil sands results for the first quarter 2011. The company’s quarterly production was 137,355 boepd, up 5% from the same period last year. Cenovus’s oil sands segment (66,828 bpd) posted 14% production increase over Q1 2010 (58,546 bpd). However the company’s natural gas production was 652 MMcfpd for Q1 2011, down 16% over Q1 2010. The Company’s strategy is to focus on the development of its substantial crude oil resource in Alberta and Saskatchewan. Cenovus is looking primarily in developing the land position in the Athabasca region in northeast Alberta.

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Cenovus reportable E&P segments include Oil Sands and Conventional. Oil Sands, which consists of Cenovus’s producing bitumen assets at Foster Creek and Christina Lake, heavy oil assets at Pelican Lake, new resource play assets such as Narrows Lake, Grand Rapids and Telephone Lake, and the Athabasca natural gas assets. Conventional, which include development and production of conventional crude oil, natural gas and NGLs in Alberta and Saskatchewan.

Expansion phases C and D at Christina Lake continuing to progress on target with expected first production at phase C in the third quarter of 2011 and at phase D in early 2013; and Additional progress on the CORE project at Wood River with coker start up expected in the fourth quarter of 2011.

Cenovus Plans to invest $1.7 billion - $1.9 billion for the rest of 2011

Oil Sands capital investment for Q12011 was primarily focused on facility spending at both Foster Creek and Christina Lake related to the next phases of expansion. The company drilled 440 gross stratigraphic wells during the quarter. Conventional capital investment in the quarter was focused on the continued development of conventional oil properties.

In Feb 2011, Cenovus announced for a venturing partner to develop oil sands holding and boost the value of reserves. The company will get $3 billion, assuming 50-50 JV. On a gross basis, about 260 of the assessment wells were drilled at the company’s oil sands properties in 2010 and an additional 450 strat wells are expected to be completed in 2011. In addition, Cenovus has identified 10 other oilsands projects - Narrows Lake, Grand Rapids in the Greater Pelican region and Telephone Lake project in the Borealis region for future development.

Source: Derrick Petroleum E&P Transactions Database

BP sells Wytch Farm oil assets to Perenco for $610 million. BP’s Southern North Sea gas assets worth $750-$900 million are up for grab..

BP agreed to sell its interests in the Wytch Farm, Wareham, Beacon and Kimmeridge fields to Perenco UK Ltd for up to $610 million in cash. The sale of these interests is part of BP's plan, announced in July 2010, to divest up to $30 billion of assets by the end of 2011. Before today's agreement, BP had already announced sales agreements totalling around $25 billion.

An immediate payment of $500 million has been made, a further $55 million will be paid on completion which is expected at the end of 2011 with the remaining $55 million contingent on Perenco's future development of the Beacon field and on oil prices in 2011-13.

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Equity interests being sold

• Wytch Farm: BP (Operator) 67.81%, Premier 12.38%, Maersk 7.43%, Summit Petroleum Dorset Ltd 7.43%, Talisman 4.95%
• Wareham and Beacon: BP (Operator) 67.5%, Premier 12.5%, Maersk 7.5%, Summit 7.5%, Talisman 5%.
• Kimmeridge: BP 100%.

Production associated with the sale:

Earlier in February 2011, BP initiated a sale which included the Wytch Farm onshore oilfield and all of BP’s operated gas fields in the Southern North Sea, including associated pipeline infrastructure and the Dimlington terminal. The company had reported net production from these assets to be around 40,000 BOE/d (75%- Gas). Thus, the remaining oil production of 10,000 BOE/d of the total package was from Wytch farm oil field.

BP’s Southern North Sea gas assets up for sale.

The production associated with BP’s Southern North Sea gas assets is approximately 30,000 boe/d. These assets could be valued between $750-$900 million (based on $25,000-$30,000/BOE). This sale is part of their $30 billion divestiture program.

Source: Derrick Petroleum E&P Transactions Database

Apache Production increased by 25% in Q1 2011; Plans to Raise 2011 Capital Expenditures by 8% to $8.12 billion

Apache Corporation posted Q1 2011 production up 25% to 732,000 boe from 586,000 boe in the first quarter 2010. Liquids production increased 57,000 bpd to 358,000 bpd, which enabled Apache to achieve stand-out earnings and cash flow as a leading beneficiary of rising oil prices. Liquid hydrocarbons represented 49% of quarter production. Approximately 60% of the company’s oil production came from operations outside North America.


Apache’s operational data for year end 2010 comparing to peers:



Last year, Apache grew substantially with three large acquisitions. A $2.7 billion takeover of Houston’s Mariner Energy gave the company its first significant presence in the deep-water Gulf of Mexico. It also paid BP $7 billion for production in Canada, the U. S. Permian Basin, and Egypt; and struck a $1 billion deal with Devon to acquire shallow-water properties in the Gulf of Mexico.

Source: Derrick Petroleum - Global Oil & Gas M&A 2010 Review Report


Milestones during the Quarter:

- Development well in the Forties field (North Sea), which came online at approximately 11,800 boepd.

In the Permian Basin, Apache is operating 24 rigs, up nearly five-fold from a year ago. Targeting primarily oil objectives, Apache drilled 110 wells including 15 horizontals during the first quarter.

- Drilled six wells in Anadarko basin’s Granite Wash formation, every well has tested in excess of 1,000 barrels of oil and 2 mcfpd.

- In Egypt, Apache operated 22 rigs during the quarter, drilling 33 wells, including the company’s first wells in the Tayim development lease in West Kalabsha producing from deeper Paleozoic pay. Apache’s production remained online throughout the quarter, increasing sequentially from the previous three months.

"We continue to strengthen our land position, both in North America and internationally. Our LNG initiatives, Kitimat in Canada and Wheatstone in Australia, are steadily progressing toward project sanction with their respective joint venture partnerships," Farris said.

Plans to raise capital expenditures by 8%

The company now plans to spend $8.12 billion in 2011, up from its forecast for $7.5 billion. “The bulk of the increase will be spent in the second half of the year, so the company's 2011 production outlook for growth of 13% to 17% remains unchanged”, Chambers said.

The company is in the planning stages for the Kitimat liquefied natural gas terminal in northwestern Canada, and expecting a final investment decision on that facility later this year or early next year, with first gas expected in 2015.

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List of West African Oil Discoveries in 2010 - 2011.

Ok.., here it is.. One of the most definitive lists of discoveries in West Africa for 2010-2011 so far. There is increasing excitement about the vast potential in West Africa's offshore basins and I thought it would be worthwhile to list them out. The material has been sourced from Derrick Petroleum's exhaustive data on exploration and deals. For the record, I consider Angola part of West Africa here, although to be more precise, it is located in South-West-Central Africa. 

For more information of discoveries and exploration plans for the following West African countries in 2011, click on the following links. Cote D’ivoire; Ghana discoveries; Ghana Exploration in 2011, Exploration in Mauritania, Benin & Togo; Angola; Sierra Leone; Sengal; Liberia; Cameroon.

Table 1: List of Discoveries in 2010 - 2011. Source Derrick Petroleum Services

Map of West Africa - Source: USGS

Sierra Leone

The Mercury-1 well was announced as a discovery in Nov 2010 with approximately 135 net feet of oil pay in two Cretaceous-age fan systems. Anadarko operates block SL-07B-10 with a 65-percent working interest. Co-owners in the block include Repsol (25%) and Tullow (10%). This was the second well drilled on the block, the first being the Venus-B well on the Venus prospect drilled in August 2009 which encountered 14 m of hydrocarbons.

Source: Anadarko Corp

Ghana
The Dzata - 1 well was drilled in May 2009 in the Cape Three Points Deep Water Block by the Aban Abraham drillship and struck hydrocarbons over 94 m, including a 25-m net section of layered oil and gas pay. The well is temporarily plugged and abandoned for future appraisal activities. Vanco Energy (28.34%) is operator of the block and other partners are Lukoil (56.66%) and Ghana National Petroleum Corporation (15%). 

Source: Hess Corp

In March 2009, Kosmos announced that the Tweneboa-1 well drilled in the Deep Water Tano Licence discovered a light hydrocarbon accumulation with 21 m net pay in a single, good-quality sandstone reservoir similar in age to those found in the Jubilee Field. The Tweneboa-1 well was the seventh consecutive successful well Kosmos and its partners drilled on the West Cape Three Points and Deepwater Tano blocks, including three previous exploration wells that found oil on the West Cape Three Points Block since mid-2007. The Mahogany-1 exploration well discovered the Jubilee Field, which was announced in June 2007; the Odum-1 exploration well discovered the Odum Field, which was announced in February 2008; and the Mahogany-3 well discovered the Mahogany Deep Field which was announced in January 2009.

The Owo prospect in the Deep Water Tano Licence was drilled in early June 2010 and encountered a significant light oil accumulation . The Enyenra-2A appraisal well on this discovery intersected 32 m in 2 channels. Tullow operates the block, holding a 49.95% interest; Kosmos Energy holds 18%; Anadarko Petroleum holds 18%; Sabre Oil and Gas holds 4.05%; and the Ghana National Petroleum Corporation holds a 10% carried interest.  

The Teak-1 exploration well in the West Cape Three Points Block was spud in Q4 2010 and discovered oil. On Mar 28, 2011, the Teak-2 exploration well encountered approximately 90 net feet of high-quality oil, condensate and natural gas pay in stacked Campanian- and Turonian-age reservoirs. Kosmos Energy (30.875%) is the operator of the Block. Other partners are Anadarko (30.875%) Tullow Oil (22.896%), KG Group (3.5%), Sabre Oil and Gas ( 1.854%) and Ghana National Petroleum Corporation (GNPC) which has a 10% carried interest.


To find out which companies are drilling in Ghana in 2011, click here

Nigeria
On June 24, 2010, Total announced that the Agge-3B.T1 well in the OML 136 licence in water depths of 140 m discovered several gas bearing reservoirs totalling a gross thickness in excess of 150 m. A production test performed over the lower intervals yielded a production of 21 million cubic feet of gas per day on a 36/64’’ choke. Conoil Producing Limited (60%) is the operator of the licence and Total (40%) is partner.

Source: Total

On 12 July 2010, Sinopec announced that the UDELE-3 well in Block 137, in the Niger Delta, struck an oil layer of 45.9 m and test yields showed an oil flow of 3,365 barrels of oil and 28,300 cubic metres of gas a day. Sinopec is the owner and operator of the licence after acquiring the Swiss firm Addax Petroleum.

The Pegi-1 discovery well encountered 165 net feet (50.3 m) of rich gas condensate. The well was drilled in 315 ft (96 m water depth to a total depth of 11,407 feet (3,477 m) beneath the Awawa field. Analysis of recovered samples indicated an API gravity of ~41 degrees. ExxonMobil is the operator of the block with a 40 percent working interest, with the NNPC holding the remaining 60 percent. 

Cameroon
Bowleven, the West Africa focused oil and gas exploration group traded on AIM, announced that the Sapele-1 exploration well drilling in the Douala Basin, offshore Cameroon was drilled to a total depth (TD) of 4,733 m. Based on an analysis of a major steep change in pressure encountered and the interpretation of the seismic, Bowleven interpreted that the well may have encountered a significant hydrocarbon column in the Cretaceous. Further studies are ongoing. The well was drilled on the MHLP-5 block on Sept 14 2010. The MHLP-5, MLHP-6 and MLHP-7 blocks are located in the Etinde Permit Area and the blocks are operated by Bowleven (75%) and the partner is Vitol Group (25%).

Source: Bowleven

Gabon

Drilling in the Onal licence area yielded the Maroc Nord OMOC-N-1 discovery which identified a 111-metre column of oil. Pump tests established a flow of 1,700 bpd of oil (flow limited by the pump’s maximum capacity) with an API of 33.4. Maurel &  Prom (85%) operates the Onal production licence and is partnered by Tullow (7.5%) and AIC-Petrofi (7.5%).

The Southeast Etame No. 1 (“ETSEM-1”) exploration well completed drilling to a total depth of 9,045 feet (2,757 m) offshore Gabon and encountered approximately sixteen feet (five m) of oil saturated Gamba sandstone. Valco Energy (28.07%) operates the Etame Marin Permit in which this discovery was made with the other partners being Addax Petroleum (31.36%), Sasol Petroleum (27.75%), Sojitz Etame Limited (2.98%), PetroEnergy Resources Corp. (2.34%) and Tullow Oil Gabon SA (7.5%).

Angola
The Castanha-1 well was spud in Nov 2009 and struck 15 m of hydrocarbons in pre-salt sediments at a depth between 2,214 and 2,229 m. The Castanha-4 appraisal well encountered a gross hydrocarbon column of approx. 15 m in the Chela Formation. Production testing of the Castanha-2, Castanha-3 and Castanha-4 appraisal wells is planned to commence following which the consortium will take a decision as to its commerciality. Participating Interests in the Cabinda Onshore South Block in which the discovery was made are: Pluspetrol Angola Corporation (Operator) 45%; Force Petroleum de Angola 20%; Sonangol P&P 20%; Lacula Oil Company (ROC) 10%; Cuba Petroleo 5%.

Source: Roc Oil

The Nzanza-1 and Cinguvu-1 wells, both located in Block 15/06 some 350 km North-West of Luanda, were drilled in a water depth of 1,400 m and reached a total depth of respectively 3,008 m and 3,023 m in April 2010. Both wells encountered oil pay in sands of Lower Miocene age with good reservoir characteristics. During production tests, Nzanza-1 well produced an 18° API oil at rates above 1,600 barrels per day (b/d). Total, one of the partners in the block, indicates that a potential for future production wells in excess of 5,000 b/d per well, when associated to artificial lift, exists. At the Cinguvu-1 well, the production test, limited by surface facilities, reached a flow of 6,400 b/d of a 23° API oil. Eni (35%) is the operator of the block, and the other partners are Sonangol (20%), Sinopec Corp (15%), Total (15%), Falcon Oil SA (5%), Petrobras (5%) and Statoil (5%).

Source: ENI

Drilled in waters measuring 453 m deep, the Begonia-1 discovery well is located on the northeastern section of Angola's Block 17/06. This was the second discovery on the block; the first was the Gardenia-1 well.  Production tests of the discovery well, Begonia-1, flowed high-quality, 36-degree API oil at a rate of more than 6,000 barrels per day from the Miocene formation. Sonangol is the concessionaire of the block, and Total serves as the operator of Block 17/06 with 30 percent interest. Partners on the block include Sonangol Pesquisa e Producao with 30%, Sonangol Sinopec International Seventeen Limited with 27.5%, ACREP Bloco 17 with 5%, Falcon Oil Holding Angola with 5%, and PARTEX Oil and Gas with the remaining 2.5%.

On the same Block 17/06, the Canna-1 well, drilled in a water depth of 445 m, in the north-eastern area of the deep offshore block 17/06, discovered hydrocarbons in a reservoir of Miocene age and produced more than 5,000 barrels per day of high quality oil (33° API) during a production test.

An exploration well on the Cabaca South East prospect in Block 15/06 was drilled in 2010 and discovered oil in it. The Cabaca South East-1 well, located at a depth of 470 m, at a distance of 100 km from the coast, successfully reached its multi-target objective in the deepest levels of Miocene age, where oil bearing reservoirs, with a total of 450 m of gross thickness, was proven. During production tests, the well flowed high quality 34° API degrees oil at rates of about 7,000 barrels/day. The rates were constrained by the limited capacity of the surface facilities. Eni has a 35% working interest and is the Operator in Block 15/06, while Sonangol E&P is the Concessionaire. The other partners in the JV  are Sonangol Pesquisa e Produção (15%), SSI Fifteen Limited (20%), Total (15%), Falcon Oil Holding Angola SA (5%), Petrobras International Braspetro B.V. (5%) and Statoil Angola Block 15/06 Award AS (5%).

On the same block (15/06), the Mpungi-1 well, 120 km from the Angolan shoreline in 1,050 m of water, was drilled to a total depth of 2,300 m and encountered oil pay in both the Upper and the Middle Miocene sand reservoirs. During the production test of the main pool, the well flowed light oil at rates in excess of 6,000 barrels per day.

Denbury Resources 2011 May Corporate Presentation

- Oil and Natural gas production averaged 63,604 BOEpd compared to 53,125 BOEpd during the first quarter of 2010.

This 10,479 BOE/d of additional production is primarily attributable to:

 (1) incremental average production of 14,400 BOE/d from properties acquired and retained in the Encore merger, which is impacted by the fact that 2010 production only reflected a partial period in the first quarter of 2010

(2) increased tertiary production of 3,802 barrels per day ("Bbls/d") between the two quarters, offset by 

(3) a decrease of 6,750 BOE/d due to the sales of non-strategic Encore properties and our interests in Encore Energy Partners LP ("ENP") after the first quarter of 2010

http://docsearch.derrickpetroleum.com/files/12684/Denbury%20Resources%202011%20May%20Corporate%20PPT.pdf