Industry Briefs

In related news, the company’s new oil-in-water monitor for water characterization will be piloted by Statoil on its North Sea Sleipner A platform. Following a trial period at three locations, the monitor will be commercially available in January 2007. The monitor has been developed in a joint project between Roxar, TNO Science and Industry, Statoil, Eni SpA, Shell, and Petroleum Development Oman and provides information on the amount of sand and oil in water.

Sunshine sells Roma shelf interest to Santos

Sunshine Gas has executed a binding agreement with Santos Ltd. for the sale of its 15% interest in the Roma shelf for a consideration of A$10 million cash. However, Sunshine has retained the prospective oil interests in the Alton area in the southern Surat basin. Sunshine Gas acquired the Roma shelf and Alton area assets in 2003 for A$4 million.

Alliance Geotechnical represents OpenSpirit in SouthEastern Asian region

OpenSpirit has named Alliance Geotechnical Services as its regional representative. “Indonesia is poised to change their economic climate and again become an exporter of oil through the redevelopment of marginalized fields,” says Dan Piette, president and CEO of OpenSpirit. Alliance Geotechnical Services is one of Indonesia’s suppliers of independent geoscience support and consulting services. OpenSpirit Corp., based in Sugar Land, Texas, began operations in July 2000 as an independent software company focused on providing integration solutions for upstream applications and data.

Amerada Hess, now Hess, splits stock; sells onshore properties

Amerada Hess Corp. has received the necessary number of votes to approve the change of its corporate name to “Hess Corp.” and an increase in the number of authorized shares from 200 million to 600 million, in order to effect a stock split. To reflect the name change, the company’s stock symbol will be changed to ‘HES.’

In other news, the company has entered into a transaction with a privately held company to sell substantially all of its onshore oil and gas producing assets along the Gulf Coast of Texas, Louisiana, and Mississippi. The properties include approximately 65 producing wells located in 12 fields. These wells are currently producing at a combined net rate of about 2,600 boe/d. The majority of the properties are located in seven parishes in south Louisiana. Tristone Capital served as an advisor to Hess Corp.

Lime Rock Partners invests in drilling rigs and components

Lime Rock Partners, a private equity firm focusing on the energy industry, has signed an agreement to invest in Perkins, Macintosh and Perkins Ltd., a manufacturer of land drilling rigs and rig components for the international oil and gas industry. Benefiting from the over 30 years of rig design experience of Dr. Flannery, PMP offers a broad range of products, from small mobile workover rigs to 2,000 hp drilling rigs, to markets in Central Asia, North Africa, Eastern Europe, and the Middle East.

In related news, Harris Williams & Co. advised Virginia Explosives & Drilling Co. Inc. in its sale to Lime Rock Partners and Cadent Energy Partners.

Amex launches dual listing program

The American Stock Exchange notes that the Securities and Exchange Commission approved a rule change that allows companies listed on another market to dual list their securities on the Amex. “We want issuers to experience our marketplace and all the benefits the Amex offers the small and mid-cap company,” said John McGonegal, senior vice president of Amex Equities.

Kerr McGee selects software from Triple Point Technology

Triple Point Technology Inc., a global supplier of cross-industry software platforms for the supply, trading, marketing, and movement of commodities, has been chosen by Kerr-McGee Corp. to support physical and financial natural gas trading with the company’s Commodity XL for Gas and Gas Scheduling ‘Visual Cockpit’.

BG expands presence in Alaska

BG Alaska E&P Inc., a subsidiary of BG Group plc, has signed an exploration agreement with Anadarko Petroleum Corp. to acquire a 40% equity share in 208,000 acres of land along Alaska’s Eastern North Slope (ENS). APC will serve as operator for the joint venture. The acreage is located on the coastal plain near to the Prudhoe Bay field. The agreement became effective April 17, 2006. Assignments are subject to approval of the State of Alaska. In February 2006, BG Group inked a participation agreement with Anadarko and Petro-Canada (Alaska) Inc. for a 33.33% equity share in 2.1 million acres of land in the Foothills area of the Alaskan North Slope. Each partner owns approximately a one-third working interest in the acreage and Anadarko serves as operator.

Lime Rock acquires second interest in East Texas for $20.8 million

Lime Rock Resources has closed a second acquisition in East Texas. It has acquired certain working interests in the Black Bayou and Doyle Creek fields from a private seller for $20.8 million. Lime Rock estimates that the net acquired interests in the Black Bayou and Doyle Creek fields represent 8.7 billion cubic feet of natural gas equivalent (bcfe) of net proved reserves and 16.5 bcfe of net lower-risk probable and possible reserves. The fields, which will continue to be operated by Southwestern Energy Co., are 25 miles to the southeast of Lime Rock Resources’ existing operations in the Reklaw field in Cherokee County, Tex.

Berry Petroleum shareholders approve two-for-one stock split

Berry Petroleum Co. has approved an increase in the number of shares of capital stock. The company will effect its previously announced two-for-one stock split, originally approved by its board on March 1, 2006. The company’s common stock was scheduled to begin trading at its new price per share on June 5, 2006, and reporting on the results of post-split trading should commence accordingly. Upon completion of the split, the number of shares of common stock outstanding will be approximately 42.4 million shares of common stock and 1.8 million shares of Class B stock.

Energy Solutions receives award from Houston Business Journal

Energy Solutions International, a global supplier of oil and gas pipeline management software, was named to the Top 100 small businesses in Houston according to the Houston Business Journal. Awards are granted to companies in the greater Houston area based on 2005 revenues. Energy Solutions ranked 90 in the top 100 list after sustaining 24% growth in revenue from the previous year.

Pan United Marine expands with new construction project

Pan-United Marine Ltd. has been awarded a $49.5 million contract to construct a specialized offshore support vessel with a 180-meter diving support at its Batam shipyard. The value of the vessel, expected to be delivered in 3Q08, is estimated at above $130 million, including the cost of owner-furnished equipment.

Cadence Resources trading on AMEX under new name

Cadence Resources Corp. has started trading its shares on the American Stock Exchange under the symbol “AOG”. In addition, the company has formally changed its name to Aurora Oil & Gas Corp. Cadence Resources is an independent energy company focused on unconventional natural gas exploration, acquisition, development, and production with its main operations in the Michigan Antrim shale and Indiana New Albany shale.

EXCO acquires East Texas Cotton Valley properties

EXCO Resources has acquired certain producing and undeveloped oil and natural gas properties in the Cotton Valley trend in East Texas from a privately held company. The properties were acquired for a purchase price of $52.3 million after contractual adjustments and consist of approximately 2,000 net acres of leasehold, estimated proved reserves of 28.3 bcfe (99% gas and 51% proved developed producing) and 10 bcfe of estimated probable reserves. Current average daily production from the wells acquired is approximately 4.3 Mmcfe per day. Also included in the purchase is approximately 10,500 net undeveloped acres in the general area. EXCO will operate the properties and own 100% of the working interest. EXCO plans to begin the development drilling program in the third quarter of 2006. This acquisition was financed with $49.9 million from EXCO’s revolving line of credit and $2.4 million from surplus cash.

Superior Oil purchases Oklahoma leases

Yukon, Okla.-based Superior Oil & Gas Co. bought 13 oil and gas leases in three Oklahoma counties from Hudson Resources Corp. Each of the leases offsets oil and gas production by other companies. Superior did not identify the sellers or list the value of the leases acquired. The acreage involves eight leases covering 640 acres in Kingfisher County, one lease covering 320 acres in Canadian County, and four leases covering 125 acres in Pushmataha County.

Endeavour to acquire UK producing assets

Endeavour Energy UK Ltd., has entered into an agreement to purchase all shares of Talisman Expro Ltd. for US $414 million. Four producing asset areas in the central North Sea section of the UK continental shelf are included in the transaction. Current net production from this asset group is about 9,200 boe/d. Endeavour estimates proven and probable reserves as of December 31, 2005 at 18 MMboe. In addition, a number of other non-producing assets are included, notably a 55.62% interest in the Rochelle discovery. Endeavour expects to close this transaction before the end of the year with a January 1, 2006 effective date.

Highpine and Kick enter agreement

Highpine Oil & Gas Ltd. and Kick Energy Corp. have entered into an acquisition agreement, whereby Highpine will acquire all of the issued and outstanding shares of Kick. The arrangement is subject to approval by the Court of Queen’s Bench of Alberta, applicable regulatory authorities and Kick shareholders no later than August 10, 2006. Under the Arrangement, shareholders of Kick will receive 0.32 of a class “A” common share of Highpine for each common share of Kick. This transaction extends Highpine’s dominant position in the Pembina Nisku exploration trend. FirstEnergy Capital Corp. advised Highpine in the transaction.

In addition, Tim Hunt, the president and CEO of Kick, has agreed to join the board of directors of Highpine upon the successful completion of the arrangement.

Mullen Group Income acquires Producers Oilfield Services

Mullen Group Income Fund has completed its Plan of Arrangement following receipt of the approval of the Court of Queen’s Bench of Alberta. All of the outstanding common shares of Producers Oilfield Services Inc. were indirectly acquired by Mullen and approximately 82.5% of the shares and 100% of the share purchase warrants of Horizon North Logistics Inc. were distributed to the registered holders of trust units of Mullen and Class B limited partnership units of Mullen Co. LP.

Saudi Aramco and Petrogen forms alliance with Petroleum Engineers

Petrogen Corp. has entered into a strategic alliance with Petroleum Engineers Inc., a wholly owned subsidiary of Tradestar Services Inc., in a move to strengthen the company’s bench of operational expertise in its next phases of development on the company’s Texas Gulf Coast assets, the Emily Hawes and Tiller Ranch fields.

Crosstex Energy goes live with Quorum TIPS software

Quorum Business Solutions Inc., a provider of software solutions for the oil and gas industry, notes that Crosstex Energy LP has deployed Quorum TIPS and Quorum Query Module to manage newly acquired processing and liquids assets. Crosstex Energy is a midstream natural gas company headquartered in Dallas, operates over 5,000 miles of pipeline, ten processing plants, four fractionators, and approximately 150 natural gas amine treating plants and 22 dew point control plants.

Smedvig and Seadrill merge

Smedvig and Seadrill have been merged into one company. The new Seadrill has a diversified and modern fleet of 9 jack-ups (including four under construction), 7 semi-submersible drilling rigs (including five under construction), 3 ultra-deepwater drillships (including two under construction), two FPSOs and 13 tender rigs (including two under construction). The company provides extensive platform drilling and well intervention services on three different continental shelves. The new company also provides engineering services based on its division of 200 engineers.

Hercules Offshore acquires Laborde Marine fleet

Hercules Offshore has completed the acquisition of a fleet of five liftboats from Laborde Marine Lifts Inc. for $49.3 million. In addition, Hercules assumed the construction of a sixth liftboat. The original purchase price of $52 million was reduced by $2.6 million, which represents the total amount owed by Laborde Marine Lifts Inc. under the construction contract for the sixth liftboat. The six liftboats have leg lengths ranging from 105 feet to 200 feet and are currently located in the Gulf of Mexico.

Perupetro signs contract with Barrett Resources

Peru’s hydrocarbons promotions agency Perupetro will sign a contract with US oil company Barrett Resources for the exploration of block 121 in Loreto department. Barrett will invest some $45 million in the seven-year exploration phase of the block, including 2D seismic studies and the drilling of exploratory wells. Some exploration has been conducted in the block, but no wells have been drilled and little is known about the block’s potential. However, the block is located in the Maranon basin alongside block 39, where Spanish oil major Repsol-YPF discovered heavy crude reserves, as well as block 67, where Barrett has also found heavy crude.