Industry Briefs
Excelerate inaugurates dockside LNG GasPort; commences operations
The Woodlands, Tex.-based Excelerate Energy has commissioned its new Teesside GasPort in Northern England. Teesside GasPort will allow Excelerate Energy to deliver natural gas at peak rates of up to 600 MMcf/d into the UK market. The Energy Bridge vessels allow LNG to be regasified to onboard the ships, so that high-pressure natural gas can be directly fed into natural gas pipelines. Excelerate Energy LLC is a liquefied natural gas importer and marketer with a unique logistical services and trading platform. GasPort is a dockside gas receiving facility designed to offload regasified LNG from one of Excelerate’s Energy Bridge vessels into a natural gas grid.
Ridgeway Petroleum acquires oilfield
Ridgeway Petroleum Corp. has completed the purchase of a New Mexico oilfield that the US Department of Energy has identified as having considerable enhanced oil recovery potential. The acquisition is the first of several oilfields the company is targeting as part of its strategy to build a substantial EOR reserve base in the Permian Basin for CO2 flooding. The acquisition covers 15,000 acres in a 19,000 acre mature oilfield that has produced approximately 24 MMboe to date, leading to only 14% recovery of the original 180MMboe in place. The company’s independent EOR consultants, Advanced Resources International (ARI), estimated the field could recover an additional 34 MMboe using state of the art CO2 injection processes. ARI also estimates that the field has the potential, once fully flooded, to reach an EOR peak production rate of over 10,000 b/d. The company intends to initiate a pilot CO2 flood of the property following the completion of the company’s winter drilling program at the St. Johns helium and CO2 field located in Apache County, Ariz. and Catron County, NM. Ridgeway Petroleum is a development stage, enhanced oil recovery company.
Geometrics introduces 3D seismic system for geologic exploration
Geometrics Inc. has developed the Geode DZ, a 24-bit, portable 3D distributed seismic acquisition system that brings ease-of-use, economy, and GPS synchronized continuous monitoring to high resolution petroleum, mining, and research surveys. Featuring 20 kHz, 24-bit bandwidth (allows surveys in hard rock), and a modern, intuitive, and easy-to-use software interface, the Geode DZ system uses, rugged, lightweight A/D & Line Tap modules that are connected by Ethernet to a standard Windows® computer. The DZ’s intuitive graphical software eases the transition to 3D surveys. User friendly linked modules include; wizard-based OMNI Tools for quickly planning, modeling and simulating all aspects of a survey, and the Geometrics Seismic Acquisition Suite of tools for efficient data collection, extensive QC testing (including line and geophone testing), and graphically monitoring and controlling the features and operation of the DZ hardware. Geometrics designs and manufactures high performance, rugged, and reliable geophysical instruments.
Chevron awarded new acreage offshore Australia
Chevron’s Australian subsidiary, Chevron Australia Pty Ltd., has been awarded the exploration rights to acreage in the highly prospective Greater Gorgon Area located off the northwest coast of Australia. Chevron Australia will be the operator of the block and will hold a 50% interest; the Australian subsidiaries of ExxonMobil and Shell will each hold a 25% interest. The W06-12 permit area in the Carnarvon Basin covers an area of approximately 1,150 square miles and lies about 60 miles northwest of the Australian coastline. The Carnarvon basin, Australia’s premier petroleum basin, includes both the North West Shelf and Greater Gorgon Area resources. The 3-year work program for the permit area includes geotechnical studies, about 110 miles of 2-D seismic reprocessing, 650 square miles of 3-D seismic survey acquisition, and the drilling of an exploration well. Seismic work will begin this year. There is potential for a further three-year work program. Chevron Australia is operator and 50% joint-venture participant in the Gorgon Project, joint-venture participant in the North West Shelf Venture, operator and joint venture-participant in the Barrow Island and Thevenard Island oil fields, and operator of exploration acreage located off the northwest coast of Australia.
Technip awarded contracts by BHP Billiton, Petrobras
Technip has been awarded a contract by BHP Billiton for the flowlines, risers, and subsea structures installation for the development of the Shenzi field. This field is located in the Green Canyon area of the Gulf of Mexico in 4,300 feet of water depths. The contract covers the engineering, fabrication and installation of a system of 2 infield flowlines and 6 flowlines welded to steel catenary risers and connecting 3 drill centers to the production platform. The flowlines and risers will be welded onshore, at the company’s spoolbase located in Mobile, Ala. Offshore installation will be carried out in Q1 2008 by the Deep Blue, Technip’s deepwater pipelay vessel. The company has also been awarded a contract from Petrobras worth about $200 million for the 4-year charter of its flexible pipe laying vessel Sunrise 2000, operating offshore Brazil. This contract could be renewed for 4 years. The Sunrise 2000 is designed to install flexible flowlines and umbilicals in water depths down to 2,000 meters. The vessel is able to simultaneously lay 3 lines, either flowlines or umbilicals, and for that purpose has built-in carousels providing the vessel with a cargo capacity of 3,775 tons of products and is equipped with Technip’s patented vertical lay system (VLS). This technology allows the installation of flexible pipes up to a maximum dynamic load of 270 tons.
Suncor begins effort to expand oil sands mining
Suncor Energy Inc. has initiated the regulatory approval and stakeholder consultation process on plans to develop an expanded oil sands mining operation. The proposed project, to be called Voyageur South, would be located north of Fort McMurray on the west side of Highway 63 (about three kilometers southwest of Suncor’s existing oil sands operation). Suncor plans to develop the mining operation using new technologies. The most significant change planned is the use of mobile ore preparation equipment instead of a truck and shovel mining system. Suncor expects to reduce noise pollution and air emissions, in particular nitrogen oxides. The mining technology should require a smaller workforce which mitigates the social impact on the community. Commercial scale testing of these technologies is currently underway. Suncor expects to file an application to develop the project in mid-2007. Pending approval, Suncor plans to begin construction in 2009, with operations beginning in 2011. Suncor is targeting production of about 120,000 barrels of bitumen per day, which is expected to have an operational life of about 40 years. Suncor Energy Inc. is an integrated energy company headquartered in Calgary, Alberta.
Forster signs multi-well deal with Ridgeway
Forster Drilling Corp. has entered into a multi-well daywork contract with Houston-based Ridgeway Petroleum Corp. to drill wells in the St. John Field, which is located in Eastern Arizona and Western New Mexico. The field is the largest-known undeveloped CO2 resource in North America. Ridgeway controls the St. John Field with about 200,000 acres under lease. Forster is in the process of custom building a rig to Ridgeway’s specifications. Forster Drilling Corp. is engaged in providing contract drilling services to independent oil and gas exploration and production companies; acquiring and rebuilding rotary drilling rigs and manufacturing major rig components; and exploring for, development, production, and sale of oil and natural gas.
Victory Energy to drill in Palo Duro basin
Victory Energy Corp. has entered into a letter of intent with Eldorado Exploration to conduct a drilling program on Eldorado’s Palo Duro Basin leases in Texas. Under the agreement, Victory will be required to conduct up to $100,000 for seismic evaluation to determine the first 3 drilling targets. In exchange, Victory will receive 50% of the mineral rights of all hydrocarbon deposits on the first 8 sections, about 5,000 acres of land. During the evaluation of the drilling targets, and including the time to drill the first 3 wells, Victory Energy will have the ability to exercise its irrevocable option to lease up to a total of 100,000 acres of mineral rights within the Palo Duro Basin from Eldorado and its partners. Victory Energy is a publicly traded, developmental-stage petroleum company primarily dedicated to energy-related opportunities.
Maverick to sell Barnett Shale properties for $22.5 million
Maverick Oil and Gas Inc. has signed an agreement for the sale of its interest in Barnett Shale properties for $22.5 million. These properties are located in Wise County, Tex.
About $20 million of the proceeds will be used to repay a portion of Maverick’s outstanding debentures, and the remainder will be used for capital programs and working capital. This sale was required as part of the company’s earlier financings. Maverick Oil and Gas is an early stage independent oil and gas company engaged in exploration, exploitation, development and production.
Petroleum Development acquires Colorado oil and gas properties
Petroleum Development Corp. has acquired 28 producing wells and associated undeveloped acreage for $11,845,000. The acquisition encompasses current daily production of about 668 Mcfe/d (520 Mcf of gas and 25 bo/d) net to the interests acquired, 100 or more undeveloped drilling locations, 19.1 bcfe of proved reserves and an additional 7.5 bcfe of probable reserves. Petroleum Development Corp. is an independent energy company engaged in the development, production, and marketing of natural gas and oil.
Thompson & Knight launches energy consulting company
The law firm of Thompson & Knight LLP has formed a subsidiary company. Thompson & Knight Global Energy Services LLC will offer a wide range of specialized services to the energy industry including the identification and assessment of exploration and production investment opportunities, asset evaluations, portfolio optimization, and risk mitigation. The company will be based in Houston and led by Renato T. Bertani, the former president of Petrobras America Inc. Initially the company’s portfolio of commercial and economic consulting services will be preferentially offered to existing Thompson & Knight clients. Bertani anticipates that services will gradually expand to new customers, provided there are no competitive conflicts.
YPFB, Gazprom set to collaborate
Bolivia’s state oil company, YPFB, and Russian natural gas major Gazprom have signed a memorandum of understanding to develop a formal joint work framework. The companies will create a coordination committee to identify projects that could be jointly developed. The two companies are interested in developing Bolivia’s gas reserves throughout the hydrocarbons chain, as well as marketing of products outside Bolivia.
Stallion Group takes stake in Mississippi, Louisiana acreage
The Stallion Group has entered into an agreement to acquire a 30% working interest in up to 200,000 acres of land in Southwest Mississippi and Northeast Louisiana. The company will be targeting the Frio, Wilcox, and Tuscoloosa geological formations. The agreement contemplates an initial 50 well drill program within the area of mutual interest. These wells will be drilled in several areas, including Palmetto Point; Red Bug; Tecumseh; and Buffalo River. Over 7,500 miles of 2D seismic and 250 square miles of 3D seismic have already been shot. Over 100 drill targets have been identified to date. The drilling program will be conducted by Griffin & Griffin Exploration in its capacity as operator. The Stallion Group is an independent oil and gas company focused on developing proven energy rich areas of North America.
Kinder Morgan to divest Terasen Utility assets
Kinder Morgan Inc. has entered into a definitive agreement to sell Terasen Inc. to Fortis Inc., a Canadian-based company with investments in regulated distribution utilities, for approximately C$3.7 billion including cash and assumed debt. Terasen’s principal assets include Terasen Gas Inc. and Terasen Gas (Vancouver Island) Inc., comprising a large regulated distribution business that delivers natural gas and piped propane to about 900,000 customers in British Columbia. The sale does not include assets of Kinder Morgan Canada (formerly Terasen Pipelines). “With the sale of Terasen Gas, KMI will be exiting the retail utility business, as we previously announced an agreement to sell our US retail operations,” said KMI chairman and CEO Richard D. Kinder. The agreement has been approved by the KMI board of directors and the sponsors of the company’s pending privatization transaction. KMI expects to recognize a substantial book loss from this transaction. Proceeds from the sale will be used to pay down debt. TD Securities Inc. acted as financial advisor to KMI on the transaction.
Mustang, Wood Group garner patent for LNG conversion process
Mustang Engineering, a wholly-owned subsidiary of international energy services company John Wood Group PLC, and Wood Group have been awarded US patent 715 5917 for a proprietary process to convert liquefied natural gas (LNG) into natural gas. This environmentally friendly and fuel-efficient technology, marketed as the LNG Smart Air Vaporization (SAV) process, uses a closed-loop intermediate fluid circulating through fin-fan heat exchangers to extract heat from ambient air to vaporize LNG from its cryogenic state at -260°F back to pipeline temperatures for transporting and storage. The SAV technology provides reductions in fugitive air emissions, and lowers facility operating costs through reduced fuel gas usage. The SAV process is currently being installed at Trunkline LNG Co.’s Infrastructure Enhancement Project in Lake Charles, La., utilizing the existing Submerged Combustion Vaporizers (SCVs) as a backup heat source. The project is on schedule to be commissioned in the 3rd quarter of 2008. Mustang is an independent services provider to the global oil, gas, chemical and industrial industries. Wood Group is an international energy services company.