Venoco 2011 Hart Energy DUO Conference Presentation

- >500 MMBOE resource potential
- Concentrated position with >95% operatorship
- Crude oil weighted with shallow declines
   - 50% of proved reserves
   - 42% of 2010 production
   - >65% of 2010 revenue
- Large acreage position in Monterey shale and Sacramento Basin

http://docsearch.derrickpetroleum.com/files/12835/Venoco%202011%20Hart%20Energy%20DUO%20Conference%20Presentation.pdf

El Paso plans to sell 1,600 boe/d in Powder River Basin. Expected proceeds may be around $130-$160 million.

Scotia Waterous has been retained as the exclusive financial advisor by El Paso Corporation to divest its interests in the House Creek Field area of the Powder River Basin, Wyoming. The assets include oil-weighted production of approximately 1,600 boe/day from the Sussex and Parkman and significant undeveloped Niobrara acreage. The value of the assets put up for sale may be around $130-$160 million based on $80,000-$100,000/boe.

Bids due by late July, 2011.

For more information on the offering, follow up with these contacts -

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The following table shows Scotia Waterous-advised deals since the beginning of 2010.

Source: Derrick Petroleum E&P transactions Database

Endeavour International posted 6.6% decline in O&G Production for Q1-2011; Poised for Significant Production Growth in the UK and the US

Endeavour is an independent oil and gas company and has operations in the North Sea and the United States. In May, 2009, the company completed the sale of its Norwegian subsidiary for US$150 million, and those proceeds combined with current cash flow will fund future growth initiatives. Endeavour is currently developing three field discoveries in the United Kingdom sector of the North Sea that will serve as the foundation for production growth over the next two years.

Source: Derrick Petroleum E&P Transactions Database

The company’s first quarter 2011 production was 3,001 boepd, down 6.6% over the same quarter last year. Though the company was not performed for the quarter, the pieces are in place for significant production growth and lower operating costs in the near future; the Bacchus UK oil development is moving forward and appears to be on schedule to start production in Q2-2011, with production expected to ramp-up to 4,000–5,000 bpd net to the company's interest. This more than doubles the company's current production rate. Meanwhile, the company continues to push forward many of its smaller, shorter cycle-time projects.

Source: Endeavour International

Poised for Significant Production Growth in the UK and US

Rapid Growth Expected Over Next Three Years:

Endeavour expanded into the US in 2010 with the purchase of lower-cost, shorter cycle time conventional and unconventional onshore reserves. As it brings its balanced portfolio of oil and gas properties on to full production, management expects to organically double annual production in each of the next three years.  END believes that its existing total reserves can produce 30,000 to 40,000 BOEPD by 2015. During 2011, capital expenditures of about $150 million will target its two key initiatives in the U.K. North Sea – Bacchus and Greater Rochelle and the remainder will be directed toward the Haynesville and Marcellus areas in the U.S. to bring on production.

Source: Derrick Petroleum E&P Transactions Database

Bringing North Sea Assets On-Line

In the Central North Sea, Endeavour has three primary development projects – Bacchus, Columbus and the Greater Rochelle area, which have the potential to significantly expand its production levels and total proved reserves over the next three years. The Company recently increased its working interested in Bacchus from 10% to 30%, giving it an even greater position in this near-term proven oil play.

Source: Derrick Petroleum E&P Transactions Database

Operating the Greater Rochelle Development toward First Production

 In February 2011, the company received final approval of its Field Development Plan for East Rochelle from the Department of Energy and Climate Change (DECC). This is an important next step in moving the field toward first production in late 2012. In the fall of 2010, END also achieved commercial drilling success at West Rochelle confirming a second excellent quality reservoir.

Significant Reserve Growth Driven by the Drill Bit

During 2010, Endeavour grew its 2P oil and gas reserves by 12.3% to 43.7 MMBOE from 38.9 MMBOE, representing a 419% replacement of 2010 production. Production volumes averaged about 4,100 BOEPD during the year. END expects to generate significant production growth from its definable projects in the second half of 2011, with an opportunity to double its production flow rates in each of the next three years from its existing assets.

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West Africa's Ghana emerging from the dust! Oil discoveries in Ghana so far..

Ghana is emerging from decades of unsuccessful oil and gas exploration to becoming one of the global exploration hotspots. Despite a few discoveries prior to 2007, there wasn’t much to talk about. However, the game changer turned out to be the billion barrel Jubilee oil field discovery in 2007 by Kosmos Energy, drilled by the Mahogany-1 well. This, as it turned out, was also extremely fortuitous because Kosmos was drilling a stratigraphic trap (more subtle to map) and not the easily identifiable structural traps. Locating and mapping these stratigraphic traps can potentially lead to world class discoveries, as the Jubilee discovery has shown, and as the other companies are also now doing. With exploratory success coming in Ghana, and subsequently along the West African coast, increasing attention is being focussed in this region, and it is becoming increasingly likely that huge reserves of hydrocarbons lie under the offshore. Ghana has led the way so far, and I have listed out all the oil and gas discoveries in Ghana to date. This list is sure to grow as more exploration picks up in this country. For a list of oil companies with plans to drill in West Africa click here. For a list of recent discoveries and companies planning to drill in Ghana click here. For a discussion on Angola’s oil industry and companies planning to drill in Angola click here. For a list of discoveries in Cote D'Ivoire and exploration plans in 2011 - 2012 click here. All data is from Derrick Petroleum’s extensive exploration and deals databases and Derrick Petroleum analysts.

List of Discoveries in Ghana upto 2011

Source: Derrick Petroleum

The following maps show the location of these discoveries

Source: Kosmos

Source: Tullow

Source: Kosmos

NOTE: On 6 June, 2011, Kosmos Energy announced that the Banda-1 probe, drilled to a total depth of 4580 metres on the Banda Deep prospect by Atwood Oceanics’ semi-submersible Atwood Hunter, found hydrocarbons over a gross interval of 300 metres in Cenomanian-aged reservoirs. The interval contained more than 100 metres of low-porosity sandstone and three metres of 40 degrees-API oil pay. On completion, the well will be suspended and the rig moved to complete drilling of the Makore-1 well, which is targeting Turonian age reservoirs in the south of the licence. The well was drilled in the West Cape Three Points Block. Kosmos (30.875%) is operator and partners are Anadarko (30.875%), Tullow (22.896%), EO Group (3.5%), Sabre Oil and Gas (1.854%) and GNPC (10% carried interest).

US/Canada unconventional assets worth ~$14 billion available on market. Marcellus Shale leads the play.

The unconventional marketplace is being driven by motivated buyers (majors, internationals like KNOC, Marubeni, CNOOC, BHP, etc.,) and opportunistic sellers (Anadarko, Chesapeake, EnCana, Talisman, etc.,). Unconventional transactions dominated the upstream asset transactions in Q1-2011, nearly 35% of the total upstream value. PetroChina’s C$5.4 billion for a 50% interest in Cutbank Ridge assets in the Montney shale play from EnCana and BHP Billiton’s $4.75 billion for acquisition of interest in Fayetteville shale play from Chesapeake were the two major gas weighted shale deals in Q1-2011. However, number of transactions were more towards oil weighted Bakken and Eagle Ford plays. The following two tables show the significant unconventional deals of Q1-2011 in US/Canada.

In United States...

In Canada...

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Unconventional assets worth $14 billion up for sale

Source: Derrick Petroleum E&P Transactions Database

A total of $13,671 million worth of shale oil/gas assets are available for sale in the United States and Canada. The Marcellus shale gas assets top the sale activity and account for 44% of the total value. The key and the emerging shale plays and the assets put up for sale in those areas are detailed below-

Key US shale plays:

• Bakken Shale, hybrid shale system with mainly oil production, also exploiting underlying Three Forks tight sands formation

• Marcellus Shale in Appalachia, covering multiple states with Pennsylvania as main state, NE-part dry, SW-part with wet gas area

• Barnett Shale in Texas, dry and wet gas zones, combo area with oil/condensate as well

• Fayetteville Shale in Arkansas, mainly dry gas

• Haynesville Shale on the Louisiana-Texas border, mainly dry gas

Emerging plays:

• Eagle Ford in South Texas, oil and wet gas in addition to dry gas

• Niobrara in the Rockies, mostly oil

• Utica in eastern Ohio and western Pennsylvani may be oil prone and future target by companies

• Avalon in the Permian, mostly oil

• Canadian plays, notably Montney and Horn River in British Columbia; and Oilsands in Alberta.

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