Midland, Tex.-based Parallel Petroleum Corp. will be acquired by an affiliate of Apollo Global Management LLC, a global alternative asset manager, for $483 million, including the assumption or repayment of roughly $351 million in debt. An affiliate of Apollo will purchase all of the outstanding shares of Parallel's common stock and associated preferred stock purchase rights for a total consideration of roughly $132 million. Funds managed by Apollo have committed to provide $283.2 million of equity to complete the transaction. BofA Merrill Lynch Securities, Jefferies & Co. Inc., Stonington Corp., and Sunrise Securities Corp. served as financial advisors to Parallel. Lynch, Chappell & Alsup, PC and Haynes and Boone LLP served as Parallel's legal counsel. RBC Richardson Barr and BNP Paribas served as financial advisors to Apollo, and Akin Gump Strauss Hauer & Feld LLP served as its legal counsel.
Three banks joinBlueStone credit facility
BlueStone Natural Resources LLC has added Comerica Bank, Compass Bank, and Wells Fargo to its $150 million facility credit facility led by Bank of America. BlueStone was formed in 2006, utilizing funds from the management team and Natural Gas Partners. BlueStone currently operates 165 wells, predominately in the Lobo Trend of Webb and Zapata counties, and has an acreage position consisting of more than 100,000 acres situated in South Texas and East Texas. The increased credit will help finance growth through additional acquisitions and drilling.
Lloyd's Register launches global energy business
The Lloyd's Register Group has created a new energy business. The group has formed the business by merging its Oil & Gas and Chemicals & Power divisions. The newly created energy business will operate with a staff of over 1,900 out of several offices including Houston, Kuala Lumpur, Shanghai, Mumbai, Perth, Rio de Janeiro, Rotterdam, Aberdeen, Coventry and London in the UK. Its Marine and Energy businesses are also supporting the market in floating offshore installations (FOIs) for deep water oil and gas recovery solutions.
Vanguard Natural Resources pledges more assets, gets borrowing base increase
The reserve-based credit facility of Vanguard Natural Resources has been increased to $175 million from its previous $154 million. The increase was a result of the company pledging additional natural gas and oil assets associated with its recent South Texas acquisition from Lewis Energy. Under the new agreement, Vanguard has $46 million of borrowing capacity. This second amended agreement also includes two new lenders and extends the maturity date of the credit facility to October 1, 2012.
SandRidge to pay $230M for bankrupt Crusader
Oklahoma City-based SandRidge Energy Inc. has agreed to a cash and stock purchase of bankrupt Crusader Energy Group Inc. for $230 million. No more than $85 million will be paid in cash, subject to certain adjustments. Under Crusader's reorganization plan, all outstanding equity interests would be cancelled and Crusader and its subsidiaries would become indirect, wholly-owned subsidiaries of SandRidge. The transaction would further substantiate SandRidge's positions in the Anadarko Basin of Western Oklahoma and in the Permian Basin in West Texas. Common shares to be issued will be valued at $13.45 per share. SandRidge will also issue warrants to purchase an additional two million shares of SandRidge common stock. The warrants will be exercisable at a price of $15.00 per share for five years after the closing of the transaction.
Lamprell wins $52M in construction contracts
Lamprell PLC has received contract awards from three customers for a total of US$52 million. Saipem Energy Services S.p.A has awarded Lamprell a US$18.1 million contract for the construction of six process modules, pipe-rack sections and interconnecting pipe spools for the Aquila Phase 2 Floating Production, Storage and Offloading Project. The modules are scheduled to be completed in November 2010. Noble International Ltd. has awarded Lamprell a US$20.4 million award for the fabrication and installation of three 309 feet legs for the David Tinsley jackup drilling unit. The work has commenced and is scheduled to be completed by the end of July 2010. Transocean Investments S.a.r.l. has awarded Lamprell the contract for the upgrade and refurbishment of the Key Manhattan jackup drilling unit. The initial contract value is US$13.4 million. The work is scheduled for completion in December 2009.
Forest Gate Energy moves closer to gaining Vanterra licenses interest
Forest Gate Energy has received conditional approval from the TSX Venture Exchange to acquire a 70% equity interest in all Arizona oil and gas licenses belonging to Vanterra Energy Inc. Upon closing, Donald B. Vandergrift will be appointed president and COO of Forest Gate and will join the board of directors. Dr. Easton A. Wren, vice president, exploration of Americas Petrogas Inc., will also join Forest Gate's board. Michael C. Judson will remain chairman and CEO of Forest Gate and Curtis Hartzler will be appointed vice president, operations.
TAQA buys certain Shell, Esso North Sea assets
The Abu Dhabi National Energy Company PJSC (TAQA), through its wholly-owned subsidiary, TAQA Bratani Ltd. (TAQA Bratani), has completed an acquisition of four exploration blocks in the Northern North Sea from Shell UK Ltd. and Esso Exploration and Production (UK) Ltd. for an undisclosed consideration. The blocks lie adjacent to the Tern and Kestrel fields purchased by TAQA in the Northern North Sea last year.
Aztec closes funding for drilling partnership
Aztec Oil & Gas Inc. has closed its most recent partnership under its Aztec VIII Oil & Gas Drilling Program. The partnership, "Aztec VIIIC Oil & Gas LP", closed with approximately $1,750,000 of funding and will focus on shallow oil drilling in Texas. Aztec Oil & Gas Inc., through its wholly-owned subsidiary, Aztec Energy LLC, will retain 30% ownership and will act as the managing general partner. Another wholly-owned subsidiary, Aztec Drilling & Operating LLC, will serve as the partnership's drilling company and operator. Aztec has raised roughly $4 million in drilling funding over the last five months.
Epsilon Energy ends production curtailment
Epsilon Energy has substantially ended its natural gas production curtailment of its operated properties due to low natural gas prices. The company has started natural gas production from the Poulsen #1H (previously shut-in) and will continue to produce natural gas from the Poulsen #2H at an expected combined rate of roughly 3.2 MMcf/d to 3.4 MMcf/d. The corporation's overall daily natural gas production is expected to be in the range of 3.8 MMcf/d to 4.0 MMcf/d (balance of 0.6 MMcf/d coming from non-operated New York production). In addition, the company has three additional wells within its Highway 706 project, which previously tested at a combined natural gas production rate of 8.5 Mmcf/d. Those three wells are ready to commence natural gas production, if warranted.
BP selects Oceaneering for corrosion, inspection management services
Oceaneering International Inc. has obtained a corrosion and inspection management services contract from BP Exploration (Caspian Sea) Ltd. (BP) with estimated revenue of nearly $45 million expected over an initial three-year term. BP has two consecutive options to extend the contract for a period of one year each. Assets covered include BP's onshore Sangachal Terminal and offshore production facilities in Azerbaijan, and export pipelines in both Azerbaijan and Georgia.
Energy XXI scales back 2010 capital budget
The board of Energy XXI has approved an initial fiscal 2010 capital program of between $75 million and $85 million, excluding plug-and-abandonment costs, compared with $268.4 million in fiscal 2009 estimate, which excludes $22.9 million of plug-and-abandonment costs. Roughly 16% of the 2010 budget is targeting exploration drilling, which includes the ultra-deep Davy Jones prospect. Energy XXI will fund 14.1% of the exploratory costs and expects to have a 15.8% working interest and 12.6% net revenue interest in Davy Jones, which is currently drilling below 20,000 feet at South Marsh Island Block 230 on the Gulf of Mexico shelf. About 27% of the budget is earmarked for facilities, primarily for development projects expected to be placed on production in the next fiscal quarter. About 22% targets development drilling, while 8% is for seismic and land acquisition and another 7% is set aside for well workovers and recompletions. The remainder is for capitalized administrative and other costs.
Key Energy closes second investment in Russian oilfield service company
Key Energy Services Inc. has completed the second tranche of its investment in Russian oilfield services company OOO GeoStream Services Group. After its initial investment of $17.6 million in October of 2008, Key made an additional capital infusion of roughly $16.2 million, increasing its ownership interest in GeoStream from 26% to 50%. Following the closing of the second tranche, Key has the right to appoint a majority of GeoStream's board, and will now consolidate GeoStream's financial results. In conjunction with the second closing, GeoStream has agreed to purchase from Key a customized suite of equipment, including two 400 series workover rigs, two 1,000 HP drilling rigs, cementing equipment, and fishing tools for roughly $23 million, a portion of which will be seller financed.
Eagle Rock Exploration buys certain petroleum, gas rights
Eagle Rock Exploration Ltd. has accepted a non-binding offer to purchase certain petroleum and natural gas rights and associated wells and facilities in the Red Coulee area of southern Alberta and the Beverley area of south west Saskatchewan for roughly $21 million. The transaction represents roughly 310 bbl/d of crude oil production and 18,000 acres (net) of leases (primarily Crown). National Bank Financial acted as financial advisor to Eagle Rock and is expected to continue to assist Eagle Rock in exploring strategic relationships and restructuring alternatives. Upon closing, Eagle Rock will retain production of roughly 135 boe/d (80% crude oil, 20% natural gas) from the Coutts, Spring Coulee, and Enchant areas of southern Alberta and will have a positive working capital surplus of roughly $1.5 million.
Fugro snaps up General Robotics
General Robotics Ltd. (GRL), a supplier of simulation and visualization software to the offshore oil and gas sector, has been acquired by Fugro for an undisclosed sum. GRL will be renamed Fugro GRL and will become a member of Fugro Subsea Services, keeping the same management team and staff headed by Dr. Jason Tisdall. While developing and implementing products for Fugro operating companies, Fugro GRL will have commercial independence to pursue activities outside Fugro. The company will continue to maintain offices in Milton Keynes and Aberdeen.
TerraSpark improves automated fault imaging, interpretation
TerraSpark Geosciences has enhanced its Insight Earth Automated Fault Extraction (AFE) algorithms. A new Edge-Stack algorithm improves the imaging of faults through combined compensation for horizon and fault dip and strike. A new Fault Enhance algorithm with noise reduction is capable of imaging faults with dips ranging from vertical to within 5 degrees of horizontal with more than an order-of-magnitude improvement in signal-to-noise ratio.
FMC to acquire DDS, Multi Phase Meters
FMC Technologies Inc. is set to make two acquisitions. The company will acquire Direct Drive Systems (DDS) and Multi Phase Meters AS (MPM). Based in Cerritos, California, DDS develops and manufactures high-performance permanent magnet motors and bearings for the oil and gas industry. Based in Stavanger, Norway, MPM is a developer and manufacturer of multiphase flow meters for the oil and gas industry. FMC intends to acquire 100% ownership of MPM upon closing, with an initial cash payment of roughly $30 million and two earn-out payments based on 6.6 times 2012 and 2013 EBITDA. Both transactions are expected to close in the fourth quarter of 2009 and be accretive in 2011.
Viking Drilling files liquidation plan
Viking Drilling ASA and its subsidiaries filed their Joint Non-Consolidating Chapter 11 Plan of Liquidation in their respective bankruptcy cases pending in Houston. Under the plan, each company will transfer its assets to a Liquidating Trust for sale and distribution to creditors. Each of the companies will be dissolved. Based on current valuations of the rigs, equipment and other assets, it is anticipated that there will not be sufficient funds to pay all creditors in full.
Cameron to supply subsea trees to Petrobras
Cameron has entered into a frame agreement with Petrobras, expected to be worth roughly $500 million, for the supply of subsea trees and related running tools to Petrobras for use in developments offshore Brazil. Cameron will provide 138 subsea Christmas trees, with the installation to be supported by 18 sets of running tools. Initial delivery is slated to begin in 2011, with deliveries to continue for four years. As a part of the agreement, Cameron has received a purchase order contract for the first 111 subsea trees.
Petroflow Energy secures financial hedge position
Petroflow Energy Ltd. has entered into a financial hedge position with respect to 6,800 MMbtu per day of gas production. The hedge consists of 6,800 MMbtu per day at a fixed price of $7.25 per MMbtu for a period from October 1, 2009 to December 31, 2010, followed by a fixed price of $5.33 per MMbtu for the period January 1, 2011 to September 30, 2012.
BP extends Transocean's Deepwater Horizon contract
Transocean's ultra-deepwater semisubmersible rig Deepwater Horizon has been awarded a three-year contract extension by a subsidiary of BP for operations in the US Gulf of Mexico beginning in September 2010. Estimated contracted revenues are roughly $544 million. Capable of operating in water depths up to 10,000 feet, the Deepwater Horizon entered service in 2001 and recently set the world record for the deepest oil and gas well at 35,050 feet total vertical depth, drilled for BP at the Tiber prospect.
WGPC to provide onshore equipment to Pemex
Wood Group Pressure Control (WGPC) has been awarded a contract valued at US $11.2 million by Petróleos Mexicanos (Pemex) to provide 125 wellheads and Christmas trees for onshore oil and gas fields in Southern Mexico. The wellheads will be manufactured in WGPC's Monterrey, Mexico facility. The wellheads will be installed in five fields - Comalcalco, Reforma, Cardenas, Delta de Tonala and Ciudad Pemex - and will be supported by WGPC's Villahermosa and Poza Rica service centers.
PA Resources signs $125M credit facility
PA Resources AB has entered into a US$125 million corporate finance facility agreement with Standard Bank. The new credit facility replaces an existing facility of US$30 million. The new credit facility will be used to support continued production growth in West Africa.
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