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Thursday, June 2, 2011

Chesapeake - June 2011 Investor Presentation


- Accelerating drilling of liquid-rich plays until YE'12 when CHK's drilling capex is 25/75% between natural gas plays and liquids-rich plays
- Targeting 32-34 tcfe (~5.5 bboe) of proved reserves by YE 2015 in addition to lowering debt

http://docsearch.derrickpetroleum.com/files/12940/Request-Latest_IR_Presentation.pdf

Wednesday, June 1, 2011

Corridor Resources seeking a replacing partner for Apache in Frederick Brook shale development program...

Corridor Resources announced that it received notification that Apache has elected not to proceed with the second phase of the farm-out program with Corridor in respect of the potential shale gas resource development near Elgin, New Brunswick. This option is part of the following 2009 agreement-


As a result of Apache’s withdrawal, Corridor will entertain discussions with potential joint-venture partners who wish to engage in a program to develop the Frederick Brook shale and who can add value to the potential development. The information and data obtained to date from Corridor's and subsequent Apache programs will be of significant value as this program advances.


The evaluation of the Frederick Brook shale gas resources is still in its early stages, and that the best estimate of gross discovered resources is 67.3 trillion standard cubic feet (as estimated by GLJ Petroleum Consultants Ltd. in the GLJ shale resources report, effective June 1, 2009.

Status of work program
As was announced by Corridor on March 30, 2011, the two horizontal wells drilled and hydraulically fracture stimulated by Apache (Will DeMille G-59 and Green Road B-41), using similar large slick water techniques, have not generated sustained shale gas production to date. In May, the Will DeMille G-59 well was re-opened and flowed frac fluid at low rates with minor gas shows over 5 days. It is important to note that, when the Will DeMille G-59 well was shut-in after initial testing in early December, 2010, it had recovered only approximately 4% of the total frac fluid.

Corridor previously reported that the Green Road B-41 well had been placed on a 45 day gas lift which ended on March 16, 2011. At that time, the well was shut-in after recovering 17% of the frac fluid.  In late May, due to significant well head pressure build-up, the well was reopened and flowed gas at a maximum rate of 0.7 mmscf/d for several hours prior to frac fluids loading the well causing gas rates to decline. 


Based on a consensus among third party expert consultants and Corridor technical staff, the most significant issues identified with the G-59 and B-41 well performance relate to the design of the horizontal wells in this high-stress environment and the fracture technique. Corridor believes that a different well design and frac program will lead to a commercial development of the Frederick Brook shale. It should be noted that, as previously reported, Corridor re-tested the Green Road G-41 well in December 2010, which produced gas at a constant rate of 4 mmscf/d for five days at a final flowing pressure of 1306 psi. During Q1 2011, the G-41 well was used to provide gas lift and consistently delivered the required rate of 0.5 mmscf/d during a 45 day test, at a final pressure of 2007 psi.

Corridor intends to drill two vertical appraisal wells in the Elgin area commencing late this year in order to confirm the well productivity required to proceed with a pilot phase. Based on the results of these appraisal wells, Corridor plans a staged approach to demonstrate commercial viability which would include a pilot phase with a capacity of approximately 40 mmscf/d,  targeting gas production in late 2013.  This program would include vertical wells in a multi-well pad design to take advantage of the shale thickness and the high gas saturations.  During the pilot phase, Corridor will evaluate various drilling and completion techniques. Corridor will provide further details on the Frederick Brook shale gas development plans in a corporate presentation to be placed on Corridor's website on June 6, 2011.


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Whiting Petroleum - Current Corporate Information

- New Rockies exploration areas (Bakken and Three Forks in Williston Basin and Niobrara in DJ Basin)
- Opportunistically Monetize Some PDP Reserves
- Develop Existing Proved Reserves
http://docsearch.derrickpetroleum.com/files/12921/WHITING%20PETROLEUM%20CORP%20MAY%202011B.pdf

Tuesday, May 31, 2011

Cote D’Ivoire: Oil and Gas discoveries and status of exploration activity in 2011 – 2012


The Cote D'Ivoire is a country in West Africa, economically dependent on agriculture and related activities, which engage roughly 68% of the population. Cote d'Ivoire is the world's largest producer and exporter of cocoa beans and a significant producer and exporter of coffee and palm oil. Events in recent years have included severe unrest caused by political developments. On 28 November 2010, Alassane Dramane Ouattara won the presidential election, defeating then President Laurent Gbagbo, who refused to hand over power, resulting in a 6-month stand-off. In April 2011, after widespread fighting, Gbagbo was formally forced from office by Ouattara supporters with the support of UN and French forces. Several sanctions were put on the country by the UN, AU (African Union) and the EU among others, to assist in removing Gbagbo from power. Several thousand UN troops and several hundred French remain in Cote d'Ivoire to support the transition process. Ouattara was sworn in as president in May 2011, and sanctions imposed on the country have slowly been lifted.

This post lists the discoveries in the Cote D'Ivoire and exploration plans of companies looking to strike it big in this year and the next. For a list of West African oil discoveries in 2010 - 2011 click here. For information on Angola (South West Africa), click here. For a list of recent discoveries and exploration plans in neighbouring Ghana, click here, and for a list of all discoveries in Ghana click here. All information has been sourced from Derrick Petroleum's extensive exploration and deals databases.

Location of Cote D'Ivoire shown by red polygon.


Oil and Gas Discoveries, Locations and Partners

o   Baobab:  150 – 200 mmboe (Block CI-40). The Baobab field, located offshore West Africa on Block CI-40 and approximately 16 miles (25 kilometers) offshore Cote d'Ivoire, has estimated reserves of 700 million and recoverable reserves of 200 million barrels of oil. The discovery Baobab 1X well was drilled in March 2001 and is estimated to produce roughly 6,700 barrels per day. It was drilled to a total depth of 3,074 m in a water depth of 1,484 m. In 2002, the Baobab 2X well was drilled to a total depth of 2,880 m in a water depth of 1,540 m.
§  Capacity – 52,000 bpd
o   CNR – 57.6% (operator)
o   Svenska – 27.4%
o   Petroci – 15%

o   Espoir: 120 mmboe (Block CI-26). Espoir lies in Ivory Coast Block CI-26, approximately 19km offshore south of Jacqueville, and around 60km southwest of Abidjan. It was discovered in 1982. The water depths range from 100m to 600m. The Espoir field has estimated recoverable reserves of 93 million barrels of oil and 180 billion cubic feet of natural gas.
§  Capacity – 28,000 bpd
o   CNR – 58.67% (operator)
o   Tullow – 21.30%
o   Petroci – 20%

o    Acajou: 25 mmboe (Block CI-26). The well on licence CI-26 was drilled on the Acajou South prospect approximately 24 km off the coast of Côte d'Ivoire in a water depth of 3,050ft. The well is located some 9km from the Espoir facilities. Well Acajou-1x was operated by Canadian Natural Resources ("CNR") using the Sovereign Explorer rig. It reached a total depth of 2,447 m and encountered a gross oil column of over 76.2 m. A 13.72 m interval of sands at the top of the oil column was tested at an average rate of 3,500 bopd oil. The oil was of good quality 33° API, similar to that found in the Espoir field. 
·         CNR – 58.67% (operator)
·         Tullow – 21.30%
·         Petroci – 20%

o    Lion: 45 mmboe (Block CI-11). Block CI-11 is located about 13 km offshore and 89 km from Abidjan in water depths ranging from 45 metres to 280 metres.  The producing Lion and Panthère fields were discovered by Phillips in the 1980’s.
§  Capacity – 1230 bpd
o   Afren 47.96% (operator)
o   Petroci – 20.14%
o   IFC – 18.94%
o   SK Energy – 12.96%

o    Panthere: 420 BCF (Block CI-11). Block CI-11 is located about 13 km offshore and 89 km from Abidjan in water depths ranging from 45 m to 280 m.  The producing Lion and Panthère fields were discovered by Phillips in the 1980’s

o   Foxtrot: 940 bcf (Block CI-27). Côte d'Ivoire’s largest producing natural gas field is the Foxtrot field in offshore Block CI-27.
·         Foxtrot International 24% (operator)
·         Petroci 40%
·         SECI 24%
·          Gaz de France 12%

o   Belier: 20 mmboe (Block CI-24). Exxon discovered the Belier Field in 1974. The Bélier field, developed by Exxon, did not begin producing oil until 1980 because of technical difficulties. Output reached 10,000 bpd in 1981 and then fell to 6,000 bpd by 1986 in spite of a US$50 million investment by Exxon on a water injection program to maintain output and prolong the field's life. It is not producing now.

o   Kudu: 207 bcf, Eland: 95 bcf , Ibex: 77 bcf (Block CI-01). These 3 discoveries lie in Block CI-01. Block CI-01 was awarded to United Meridian Corporation in 1994, and is located offshore in the easternmost part of Côte d’Ivoire, adjacent to the international border with Ghana.  It extends from near the shoreline to 1,900 m water depth and is located 52 km from Abidjan. 16 wells have been drilled on the block to date, throughout the late 1970’s and mid 1980’s by Esso and Agip, 10 of which have encountered oil and gas.
§ Afren – 65% (operator)
§ Petroci – 20%
§ SK Energy Co Ltd – 15%

Cote D’Ivoire Oil and Gas discoveries. Source: Rialto



        Fiscal Terms and Political Environment
o    Production Sharing Contract operating continually since the 1970’s 
o    Full lifecycle cost recovery of expenses includes CapEx and OpEx, unrecovered costs carried forward for future recovery
o   Production bonuses payable on milestones



Companies Drilling in 2011 – 2012

The information presented here is from the Derrick Petroleum Planned Exploration Wells Database which is the only database in the industry that tracks actual exploration drilling plans and not just license drilling commitments. The database will be useful to E&P companies for identifying farm-in opportunities and to oilfield services companies for identifying sales opportunities. It is also extremely useful as a research tool to keep track of exploratory drilling by region or company. 




Companies with plans to drill in Cote ‘d’ivoire. Source: Derrick Petroleum Planned Exploration Wells Database. [FM] = Force Majeure announced.


CI – 205
Block CI-205 is located in the Gulf of Guinea, offshore Cote d'Ivoire in the Tano Basin with proven oil and gas potential. It lies 15 km from the Baobab oil field, the largest in Cote d'Ivoire. The block covers an area of about 2,600 sq km. 4,900 km of 2D seismic and 2,400 sq km of 3D seismic surveys have been completed. The block is in its second phase of exploration which requires the consortium to drill one exploration well. The consortium planed to drill a well in 2010 using the Transocean drillship Deepwater Pathfinder. However on the 4th of April 2011, the operator, Lukoil Oil Company announced Force Majeure on operations on the block. It is likely that the well will be drilled in 2012 after normal operations resume. The partners are:
            * LUKOIL Group: 63% (operator)
            * PETROCI Holding: 10%
            * Oranto Petroleum: 27%


Map of Blocks and oil and gas fields. Source: Afren


CI – 105
This is an offshore concession off the Ivory Coast. The South Grand Lahou-1 wildcat was drilled to a total depth of 4,556 meters. However it failed to encounter any hydrocarbons. 2 more exploration wells are planned to be drilled in 2H 2011, with one being on the Lower Bandama Channel prospect in 2011. The upside resource potential of the prospect is estimated to be about 300 mmboe. However operations are suspended following announcement of Force Majeure over the block from Feb 2011. Partners in the block are:
                *
Tullow Oil – 22.37%
                * Anadarko – 50% (operator)
                * Petroci Holdings – 15% (5% + 10% carried interest)
                * Al Thani Corporation Ltd – 12.63%         

CI-103
In Block CI-103, acquisition of 600 sq km of new 3D completed at end 2007. 3D seismic has delineated several leads and prospects. The geophysical techniques which proved so successful in Ghana are currently being used to further evaluate the data. An exploration well is planned to be drilled on the Fan 4 West prospect in H2 2011. The upside resource potential of the prospect is estimated to be about 230 mmboe. However operations are suspended following announcement of Force Majeure over the block from Feb 2011. Partners in the block are:
                *
Tullow Oil – 45% (operator)
                * Anadarko – 40%
                * Petroci Holdings – 15%

CI-401 & CI-101
Blocks CI-101 & CI-401 are located on the continental shelf of the Republic of Cote d'Ivoire, in the deep-water zone of the Gulf of Guinea. A total of 1,100 sq km of 3D seismic study has been completed on the blocks in 2007. In April 2010, the consortium drilled its first exploration well Orca-1x-bis on Block CI-401. Block CI-401 occupies an area of about 929 sq km. The well penetrated the targeted objectives and discovered thin sandstone reservoirs. The well is temporarily plugged and abandoned. A second exploration well on CI-401 is planned to be drilled in Q1 2012. The location for the next exploration well on Block CI-101 has been defined, with the well is planned to be drilled in 2011. Force Majeure over these blocks was declared on April 4th 2011. Partners in the block are:
                        * LUKOIL Group: 56.66% (operator)
                        * Petroci Holdings – 15%
                        * Vanco Energy – 28.34%

CI – 202
CI-202 covers an area of 675 km² and is located just 30km to the southeast of Abidjan, the primary commercial centre of Cote d’Ivoire, extending from the coastline to water depths of almost 1000m. The block is a highly prospective petroleum exploration licence that contains multiple pre-existing un-appraised oil and gas discoveries.  The block contains a significant database of 13 wells, two 3D seismic surveys and over 20 production tests which have produced gas up to 37mmscf/day and oil over 2200 bopd.  These discovery and appraisal wells are located in shallow water depths of 25m to 85m and represent a high value and low unit technical cost production opportunity. The consortium is planning to drill three to six exploration and appraisal wells on the block in 2011. Partners in the block are:
            * Rialto Energy – 85% (operator)
            * Petroci (15%)
            * ACC Holdings (21.25%)

CI-100
CI-100 block is located about 100 kilometres south-east of Abidjan in water depths ranging from 1,500 to 3,100 metres and covers an area of about 2,000 sq km. An initial 3D seismic survey has already been carried out by Yam’s Petroleum. Exploration work will include a new 1,000 square-kilometre 3D seismic survey, which will complete coverage of the block, and a first drilling, in 2012 at the latest. CI-100 is located directly west of acreage held by Dana in Ghana where the company made an oil discovery in March 2000. Partners in the block are:
                 * Total – 60% (operator)
                 * Petroci - 15%
                 * Yams Petroleum – 25%
          

The area has been much derisked with substantial finds in the region and in neighbouring Ghana and Sierra Leone. There is a lot of excitement and anticipation about the results of drilling this year and the next. Although developments in Cote D’ivoire have pushed off exploratory drilling by a few months, the stage is now set for  companies to resume operations, as most sanctions against the country have been lifted. Force Majeure was declared on some blocks by companies due to unstable and violent conditions. However, it is a matter of time before operations resume. It seems more likely than not, that drilling is going to introduce the country to significant additional reserves, and propel the Cote D’Ivoire into a significant oil and gas exporting country.  

Monday, May 30, 2011

Expected Q2-2011 results- North America to lead the game and now stands at 44% of the total deal value. ~$4.4 billion worth of assets in North America expected to be sold by the end of Q2-2011.


Global upstream M&A activity in Q2-2011 has currently reached $18.4 billion in 81 transactions against the total Q1-2011 numbers of $52.4 billion in 174 transactions.

Highlights of Q2-2011
  • North America leads with $8.14 billion or 44% of the total global deal value
  • Europe is in second position totaling $3.17 billion
  • Followed by Asia ($2.15 billion) and Africa ($1.73 billion)
  • In North America. conventional deals are in majority unlike the Q1-2011 where unconventional deals were dominating
  • Oil weighted transactions accounted for 44% of the total global deal value.


Top ten transactions


Asset Vs Corporate transactions
The asset and corporate transactions are on par in Q2-2011. Of the total corporate transactions, 50% is complete takeovers and the other 50% is minority equity stakes.

Deals in play to be completed by Q2-2011
Atleast $4.4 billion worth of assets in North America are put up for sale and are expected to be sold by the end of June 30, 2011, according to Derrick Petroleum’s “Deals in Play” database.


Note: The results are extracted from Derrick Petroleum Services.

Friday, May 27, 2011

Santos Plans to spend over US$ 100 million for Sangu field in Bangladesh

Santos International is one of Australia’s leading gas producers, supplying Australian and Asian customers. The company is the largest producer of natural gas for the domestic Australian market, and has significant gas and oil operations across Australia and in Indonesia, Papua New Guinea, Vietnam, Bangladesh, India and the Kyrgyz Republic. The company has a strong base in Australia and Indonesia and pursuing focused growth in Asia, of which our activities in Bangladesh are a key part.


Santos in Bangladesh:
































Santos acquired 3D seismic in 2010 over the Sangu and Magnama structures. This seismic has revealed some prospects of interest. Santos is planning to spend over $100 million on a three-well program in Block 16 beginning in the fourth quarter of 2011.  All wells are targeting new pools of gas not intersected by the existing Sangu field development. One of the wells, Sangu-11, will be drilled from the Sangu platform and, if successful, will be able to provide some immediate relief to the Chittagong gas situation. The other two wells are targeting prospects approximately five kilometers from the Sangu platform. A further exploration well may also be drilled on the Magnama prospect should time permit in the upcoming drilling season.

In November 2010, Santos acquired all of the interests of Cairn in Sangu gas field and Block 16 exploration acreage. As a result of this transaction, Santos holds 75% interest (operator) in Block 16 (Sangu) and will have a 100% interest in Block 16 (Exploration). The deal is depicted below:
Santos exploration portfolio for 2011:





Tullow acquires $730 million worth assets back to back in Ghana and Netherlands

Tullow Oil plc agreed to acquire the interests of EO Group Limited, consisting of its entire interests offshore Ghana, for a consideration of $305 million. This acquisition will increase Tullow's interest in the West Cape Three Points licence offshore Ghana by 3.5% to 26.4% and increase the Group's interest in the world-class Jubilee Oil field, which Tullow Operates, by 1.75% to 36.5%. The receipt of Tullow shares as part of the consideration gives EO the opportunity to retain an indirect interest in the upside potential of all of Tullow's Ghanaian assets.

Just a day back, Tullow Oil agreed to acquire Nuon Exploration and Production (Nuon E&P) for a cash consideration of €300 million ($425 million) from the Vattenfall Group. The acquisition of Nuon E&P will significantly enhance Tullow's North Sea business adding a portfolio of 25 licences that include over 30 producing fields, numerous development and exploration opportunities and ownership of key infrastructure.  This portfolio will increase the Group's North Sea gas production by 9,000 boepd to approximately 23,000 boepd and add reserves and resources of 28 mmboe. 

Overview of 2010 results of Tullow Oil

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