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Copano Energy Announces Executive Appointments
Susan B. Ortenstone Named Chief Administrative Officer
Jul 16, 2012 5:00:00 AM
HOUSTON, July 16, 2012 /PRNewswire/ -- Copano Energy, L.L.C. (NASDAQ: CPNO) announced today that it has expanded its management team with two key executive additions. Bryan W. Neskora has joined Copano as Chief Operating Officer, and Susan B. Ortenstone has joined Copano as Chief Administrative Officer. In these new positions, Mr. Neskora and Ms. Ortenstone will report directly to R. Bruce Northcutt, Copano's President and Chief Executive Officer.
"It is my pleasure to welcome Bryan and Sue to Copano," said Mr. Northcutt. "They are highly accomplished executives, each with more than 20 years of experience in the energy business, and both have successfully led large organizations. I am confident that Bryan and Sue will be outstanding additions to our senior leadership team."
Mr. Northcutt added, "We have tremendous opportunities before us at Copano, and we believe that adding these senior management positions will enhance our ability to advance our growth strategy and continue creating value for our unitholders. The senior management team looks forward to working closely with Bryan and Sue to take Copano's performance to the next level."
Mr. Neskora previously served as Senior Vice President of Operations of El Paso Corporation's Pipeline Group and prior to that, as Senior Vice President and Chief Commercial Officer for Tennessee Gas Pipeline Company. At Copano, he will oversee all aspects of Copano's operations, including commercial activities. Sharon J. Robinson, Chief Operating Officer of our Oklahoma and Rocky Mountains segments, and James E. Wade, Chief Operating Officer of our Texas segment, will continue in their respective positions and will report directly to Mr. Neskora. In addition, John Goodpasture, Senior Vice President, Corporate Development will report to Mr. Neskora.
Ms. Ortenstone previously served as Executive Vice President and Chief Administrative Officer at El Paso Corporation. At Copano, she will be responsible for Human Resources, Information Technology and Administrative Services.
Bryan W. Neskora
Bryan W. Neskora, 46, has more than 20 years of experience in the oil and gas industry. Since 2010, he served as Senior Vice President of Operations for El Paso Corporation's Pipeline Group, where he was responsible for overseeing operations across El Paso's interstate natural gas transmission system. From 2007 to 2010, Mr. Neskora served as Senior Vice President and Chief Commercial Officer for Tennessee Gas Pipeline Company, overseeing business development, marketing, commercial operations, engineering, project management and legal and regulatory affairs. Mr. Neskora served as Vice President of El Paso Marketing L.P. from June 2004 to February 2007 where he was responsible for all commercial aspects of El Paso's merchant energy group, including the marketing of El Paso production. From October 1999 to June 2004, he held various senior leadership positions with El Paso Global Networks Company. From 1995 to 1999, Mr. Neskora worked in various capacities with Tennessee Gas Pipeline Company in business development and regulatory affairs. From 1993 to 1995, he was Director Asset Optimization for Pendulum Energy Services. He graduated from Texas A&M University with a Bachelor of Science degree in economics and earned his Master of Business Administration from the University of Houston.
Susan B. Ortenstone
Susan B. Ortenstone, 56, has more than 30 years of experience across diverse functional areas and business segments in the energy industry. Since 2003, Ms. Ortenstone was responsible for overseeing Human Resources, IT, Communications and Community Relations, Facilities and Real Estate functions for El Paso Corporation, serving first as Senior Vice President and Chief Administrative Officer from 2003 to 2010 and then as Executive Vice President and Chief Administrative Officer from 2010 to 2012. From 2001 to 2003, Ms. Ortenstone served as Chief Executive Officer of EPIC Energy, Australia's largest natural gas pipeline company at that time. Ms. Ortenstone began her career at Tennessee Gas Pipeline Company, a division of Tenneco, Inc., where she held various positions with increasing levels of responsibility in engineering, operations, marketing, business development and strategy. Ms. Ortenstone earned a Bachelor of Science degree in civil and environmental engineering from the University of Wisconsin.
About Copano Energy, L.L.C.
Copano Energy, L.L.C. (NASDAQ: CPNO) is a midstream natural gas company with operations in Oklahoma, Texas, Wyoming and Louisiana. For more information, please visit www.copano.com.
Triangle is a growth oriented energy company with a current strategic focus on developing the Bakken Shale and Three Forks formations in the Williston Basin of North Dakota and Montana. Triangle has acquired approximately 83,000 net acres in the Williston Basin. The company reported total production in first quarter fiscal 2013 was 62,700 boe.
I am not certain. Oil & gas is my thing so I don't have any DD further then that.
FieldPoint Petroleum Begins Drilling Second Horizontal Well Project in Lea County, New Mexico
Jul 16, 2012 8:15:00 AM
Close Ad
Cimarex Energy to be Well Operator
AUSTIN, Texas, July 16, 2012 /CNW/ - FieldPoint Petroleum Corporation (NYSE/MKT: FPP) announced today that drilling has begun on the East Lusk 15 Federal #2 in Lea County, New Mexico. The Company has an operating agreement with Cimarex Energy Co, (NYSE: XEC) www.cimarex.com, to drill this well that will target the Bone Spring formation. FieldPoint has pre-paid its expected share of the drilling cost, which is approximately $1.3 million. There will, of course, be additional completion costs should the drilling operation be successful.
As with the Company's well #1 on this property, this horizontal well is planned to be drilled vertically to a depth of approximately 9,500 feet, to the Bone Spring formation, and approximately 4,000 to 5,000 feet laterally within the formation to the bottom hole location. The estimated time for drilling and completion is expected to be approximately 60 to 90 days.
FieldPoint's President and CEO, Ray Reaves stated, "As I have mentioned before, there are two highly important aspects of this drilling program. First, Cimarex Energy is one of the best in the industry at completing wells in the Bone Spring formation. This is very important for well success and optimal well production. And second, if successful, this could lead to drilling a third well on this lease, which could serve to significantly increase our daily production and proved producing reserve base."
Also as with well #1, FieldPoint will own a 43.75% working interest, Cimarex will own a 37.5% working interest, and other partners will own the remaining 18.75% working interest in the two planned wells.
About FieldPoint Petroleum Corp. www.fppcorp.com
FieldPoint Petroleum Corporation is engaged in oil and gas exploration, production and acquisition, primarily in New Mexico, Oklahoma, Texas and Wyoming.
Magnum Hunter Resources is an independent exploration and production company engaged in the acquisition, development and production of crude oil, natural gas and natural gas liquids, primarily in West Virginia, Kentucky, Ohio, Texas, North Dakota and Saskatchewan, Canada. The Company is active in four of the most prolific unconventional shale resource plays in North America, namely the Marcellus Shale, Utica Shale, Eagle Ford Shale and Williston Basin/Bakken Shale.
Halcón Resources estimates current pro forma production to be approximately 14,550 barrels of oil equivalent per day (Boe/d) with ten operated drilling rigs running on resource style assets and three operated drilling rigs running on conventional assets. The company estimates that it will add four to six operated drilling rigs to its resource style drilling program by year end 2012.
Loews Corporation Appoints Mary Skafidas as Vice President, Investor and Public Relations
Jul 16, 2012 9:00:00 AM
Copyright Business Wire 2012
NEW YORK--(BUSINESS WIRE)-- Loews Corporation (NYSE: L) today announced the appointment of Mary Skafidas as Vice President, Investor and Public Relations. Ms. Skafidas will be responsible for the investor, media, corporate marketing and communications activities of Loews. She joined Loews in January 2012 as the head of investor relations and will now also direct the company’s public relations efforts.
Ms. Skafidas has almost 20 years of experience in financial communications as well as corporate marketing and positioning for public companies. Prior to Loews, Ms. Skafidas was Vice President of Corporate Communications and Marketing for McGraw-Hill Education. Previously, she held media and investor relations positions at Toyota Motor North America.
About Loews Corporation
Loews Corporation, a holding company, is one of the largest diversified corporations in the United States. Its principal subsidiaries are CNA Financial Corporation (NYSE: CNA), a 90% owned subsidiary; Diamond Offshore Drilling, Inc. (NYSE: DO), a 50.4% owned subsidiary; HighMount Exploration & Production LLC, a wholly owned subsidiary; Boardwalk Pipeline Partners, LP (NYSE: BWP), a 61% owned subsidiary; and Loews Hotels, a wholly owned subsidiary.
Liberty Energy Announces New Acreage in Bastrop County, Texas
Jul 16, 2012 8:00:00 AM
2012 GlobeNewswire, Inc.
HOUSTON, July 16, 2012 (GLOBE NEWSWIRE) -- Liberty Energy Corp. (OTCBB:LBYE) ("Liberty" or "the Company") announces further details on its new Bastrop County Acreage, Texas.
The Company is pleased to provide further details on its newly acquired acreage in Bastrop County, Texas. The Company can confirm having acquired two highly prospective leases in Bastrop County Texas. The combined leases measure approximately 300 acres and are situated in county that currently produces primarily from the Dale Lime, Austin Chalk, Buda and Edwards.
The Austin Chalk formation stretches 500km in length and 50km in width. The first wells were drilled in 1929 and the formation is still producing oil and gas in economically viable quantities today. New wells have IP'd (initial production) at over 1,200 barrels of oil per day (bopd)1 and with significant cumulative production make it one of the most prolific shale plays in the US. Given the cell size, mean numbers of cells, the mean EUR, and the success ratio, the Austin Chalk in the Outlying Areas Play is estimated to contain a mean of about 200 million barrels of oil (MMBO).2
The Eagle Ford has long been considered the "source rock" for hydrocarbons that are now found in the Austin Chalk formation across much of South Texas.3 Wells within the oil window across the play have experienced peak rates as high as 2,000 bopd, some with sustainable rates and others with steep declines. The oil reserves are estimated at 3 billion barrels of oil (BBO) with potential output of 420,000 bopd.4 Wells located in higher geo-pressured areas appear to be the most prolific producers. Most wells in the play are still producing in the transient flow regime and have not yet reached boundary dominated flow.3 There is also considerable variability among operators as to completion techniques and numerous examples of offset wells completed in one manner resulting in poor productivity with direct offsets completed in another with great success.3
The Company confirmed that based on typical costs, new Dale Lime/Austin Chalk wells can be drilled and completed with fracs for around $200,000, which includes the cost of surface equipment. Reserves are modeled with an estimated ultimate recovery of 10 thousand barrels of oil (MBO) per well and have historically been 13 MBO per well, based on 5 acre spacing.5
"We're planning to gather both geological and geophysical evaluations in addition to seismic data, which allows us to estimate the potential recoverable reserves. A thorough understanding of all information available to us will allow us to determine the best plan to further develop the lease with a high degree of accuracy," commented Ian Spowart, CEO of Liberty Energy Corp.
ABOUT LIBERTY: Liberty Energy Corp (OTCBB:LBYE) is an Independent Oil and Gas Exploration and Production Company dedicated to the sourcing and production of fuel supplies in the United States and Europe. Headquartered in Houston, Texas, the company has leases and royalties in both Texas and Bulgaria, covering several wells with extensive potential for future development. In Texas, Liberty owns twelve leases based around numerous geological pay zones. In North-West Bulgaria, Liberty has royalty rights to a 1,000,000+ acre natural gas property (the A-Lovech exploration block), an area of high quality, low-sulphur natural gas condensate. Through this combined international reach and domestic focus, Liberty Energy is committed to the development of US fuel reserves while seeking out further opportunities for the global energy markets.
American Petro-Hunter's SOM-1H Mississippi Lime Horizontal Well in South Oklahoma Project Commences Commercial Production
Jul 16, 2012 8:00:00 AM
SCOTTSDALE, AZ -- (Marketwire) -- 07/16/12 -- American Petro-Hunter, Inc. (OTCBB: AAPH) ("American Petro-Hunter" or the "Company") today is very pleased to announce that the SOM-1H Mississippi Lime horizontal oil and gas well at the Company's South Oklahoma Project has been successfully completed and fracked and began production to both the oil storage tanks and gas pipeline on July 10th.
Currently, the well is undergoing a period of production testing to determine a stable rate of both oil and gas from the over 2,500 feet of lateral penetration into the Mississippi Lime reservoir. It is anticipated that over the next several weeks the well will, in conjunction with the pumping off of approximately 25,000 barrels of frack load, exhibit high I.P. (initial production) flush daily rates followed by a period of stabilization.
The SOM 1-H well is the first well drilled on the Company's South Oklahoma Project that now covers approximately 5,300 gross acres of leases underlain by the thick Mississippi Lime in an area which has enjoyed a well-documented and lengthy period of historic production from vertical Mississippian wells. As it is the first well drilled by the Company on the lease block, the Company and partners are being extremely careful and prudent to not push the well too hard in order that the oil and gas productive fractures can become established for a long term production scenario.
As reported earlier, the SOM-1H encountered excellent oil and gas shows which include numerous sections of live oil over the shaker and sweet high B.T.U. gas shows with very rich and high concentrations of ethane and propane (valuable heavy liquids). The most recent horizontal Mississippian well completed in the North Oklahoma Project had 1469 BTU gas. The operator of this project has been able to re-negotiate the gas sales contract for the South Oklahoma Project which should result in a sell price in excess of $6.50/MCF which would cover any and all future operating costs of the well.
Company President Robert McIntosh states, "We are extremely pleased with the results of the drilling, fracking and initial testing of the SOM-1H well as it marks the Company's first horizontal well on the South Oklahoma project lease block. This success which has led to commercial production has confirmed the existence of the Mississippi reservoir under our leases and now plans for additional wells and offsets are set to begin. With the recently announced $10,000,000 credit facility through ASYM Energy Partners LLC which propels the Company ahead through the provision of development drilling capital as well as additional operational, technical, engineering and financial expertise, we now enthusiastically believe the prospects for our leasehold position in Oklahoma can begin to offer tremendous upside for our stakeholders."
About American Petro-Hunter, Inc. (OTCBB: AAPH)
The Company is an exploration and production (E&P) Company focused on the acquisition and horizontal development of the Mississippi Lime and Woodford oil formations located in Oklahoma and Kansas. The Company operates from its offices in Wichita, Kansas. Visit us at: www.americanpetrohunter.com
Lighthouse Petroleum, Inc., Enters Into Agreement With HCE Operating, LLC To Purchase Oil And Gas Producing Leases In Haskell County, Texas
Geological Report Indicates An Estimated Economic Value Of $13,500,000
Jul 16, 2012 9:03:00 AM
LEVELLAND, Texas, July 16, 2012 /PRNewswire/ -- Lighthouse Petroleum, Inc. (OTC Pink: LHPT), is pleased to announce that it has entered into an exclusive Memorandum of Understanding ("MOU") with HCE Operating, LLC ("HCE") to purchase a 100% Working Interest and 75% Net Revenue Interest in leases, wells, well bores and equipment for the Reames/Masterson Production located within the Lindsea Bea Field of Haskell County, Texas.
Lighthouse has negotiated to purchase the leases, wells and equipment from HCE for One Million Two Hundred Thousand Dollars ($1,200,000.00). Based on a 1998 geological report, indications are that the leased property contains a producing zone called the Lindsea Bea Conglomerate. The report states that there are Four Hundred Seventy-Two Thousand (472,000) proven undeveloped barrels ("PUD") of oil, less approximately Twenty-Two Thousand (22,000) barrels produced since that date, supporting an economical assumption value of Thirteen Million Five Hundred Thousand Dollars ($13,500,000.00). It is agreed that the report will be updated during the verification process. The MOU and the 1998 geological report were posted as a Supplemental Information Disclosure on OTC Markets on July 13, 2012.
Currently there are Thirteen (13) wells, Two (2) of which are active, producing approximately Six (6) BOE of oil and Twenty-Two (22) MCF of gas per day. In addition to the purchase cost, the MOU states that Lighthouse will incur additional costs to extract the oil and gas and will bear all the risk associated with the recovery. The additional costs for extraction are estimated to not exceed One Million Dollars ($1,000,000.00).
This oil and gas evaluation of reserves report is based solely on the reserve of the Lindsea Bea Conglomerate. The zone is located at a depth of 4,990ft – 5,018ft. The Hendrick Ranch Field, which is the field where these wells are located, is a multi-pay area that contains wells producing from nearby intervals identified as the Lindsea Bea Conglomerate, Bend Conglomerate, Caddo Lime, Strawn Sands, Palo-Pinto Lime, Patio Sands, Lower King and Cook Sand formations. The Lindsea Bea Conglomerate formation is from the Lower Pennsylvanian System, a major producing deltaic movement within the study area. All wells in this project have multiple pay-zones identified in their logs via dual-density logs, dual spectrum logs, Halliburton producing zone log analysis reports, and drilling mud logs.
The MOU stipulates that Lighthouse retains the right to have additional partners it deems necessary to complete this transaction.
It is noteworthy to mention that on June 18, 2012 in a press release, Mr. Todd Violette expanded his current role as CEO of Lighthouse Petroleum and was appointed CEO and became the controlling shareholder of Paradigm Oil and Gas, Inc., a public company trading under the symbol (OTC Pink: PDGO). Mr. Violette looks forward to exploring and maximizing both companies' resources during and upon completion of this transaction.
About Lighthouse Petroleum, Inc.
Lighthouse Petroleum, Inc. is a development stage junior oil and gas company. Lighthouse's initial focus will be on acquiring abandoned wells and land leases believed to still have sustainable development opportunities. Lighthouse believes the use of modern technology will enable the company to reduce its risk in the initial phase of development and open up new opportunities. Lighthouse plans to create a base cash flow from reentering these wells and establishing the network to acquire additional land asset in targeted areas. Lighthouse is a growth orientated junior oil and gas company that trading on the OTC markets under the symbol "LHPT".
About Paradigm Oil and Gas Inc.
Paradigm Oil and Gas Inc. (OTC Pink: PDGO) identifies and acquires energy properties with previously discovered known oil and gas reserves that have not either been fully produced from, or fully developed and defined. For more information about Paradigm Oil & Gas, visit the website at www.ParadigmOilInc.com.
Interesting story here. Starting to do some DD.
Baron Energy, Inc. Provides an Update on Its Texas Panhandle Oil Reactivation Program
Jul 16, 2012 5:00:00 AM
2012 GlobeNewswire, Inc.
SAN MARCOS, Texas, July 16, 2012 (GLOBE NEWSWIRE) -- Baron Energy, Inc. (Pink Sheets:BROE) ("Baron" or the "Company"), an independent oil and gas company, announced today the continuation of Phase 3 of its Texas Panhandle oil reactivation program and its intentions to proceed with Phase 4 immediately after the completion of Phase 3.
Management Comments
Ronnie L. Steinocher, President and CEO, said, "The completion of Phase 3 was delayed due to severe weather and downed electric power lines. Necessary repairs have been made and we have recommenced field operations for Phase 3. Phase 3 should be completed near the end of July at which time at least 22 oil wells will be on production."
Mr. Steinocher added, "Based on the positive production results to date, a Phase 4 will definitely be implemented on this project. We currently are planning to begin Phase 4 immediately upon completion of Phase 3."
About Baron Energy, Inc.
Baron Energy, Inc. (Pink Sheets:BROE) is an independent oil and gas acquisition, production, exploitation, and exploration company headquartered in San Marcos, Texas, with producing assets in North and West Texas.
Baron owns production that is 99% oil, both operated and non-operated, with working interests ranging from 12.5% to 100% in oil fields located in Archer, Baylor, Garza, Hutchinson, Jones, Runnels, Scurry, Taylor, and Young counties, Texas.
Baron's growth strategy centers on making accretive acquisitions, production enhancement programs, reactivation projects, and in-fill drilling, all within the Company's core area of North and West Texas.
For more information, please visit www.baronenergy.com.
Interesting news. Doing more DD here.
NEW YORK, NY -- (Marketwire) -- 07/16/12 -- Natural gas prices received a boost last week after Cheniere Energy announced it expects to receive $3.4 billion in financing for a liquefied-natural-gas export facility. The export facility would have the potential to help ease the country's current glut of natural gas by allowing natural gas producers to ship the fuel overseas.
FieldPoint Petroleum Begins Drilling Second Horizontal Well Project in Lea County, New Mexico
Jul 16, 2012 8:15:00 AM
Cimarex Energy to be Well Operator
AUSTIN, Texas, July 16, 2012 /CNW/ - FieldPoint Petroleum Corporation (NYSE/MKT: FPP) announced today that drilling has begun on the East Lusk 15 Federal #2 in Lea County, New Mexico. The Company has an operating agreement with Cimarex Energy Co, (NYSE: XEC) www.cimarex.com, to drill this well that will target the Bone Spring formation. FieldPoint has pre-paid its expected share of the drilling cost, which is approximately $1.3 million. There will, of course, be additional completion costs should the drilling operation be successful.
As with the Company's well #1 on this property, this horizontal well is planned to be drilled vertically to a depth of approximately 9,500 feet, to the Bone Spring formation, and approximately 4,000 to 5,000 feet laterally within the formation to the bottom hole location. The estimated time for drilling and completion is expected to be approximately 60 to 90 days.
FieldPoint's President and CEO, Ray Reaves stated, "As I have mentioned before, there are two highly important aspects of this drilling program. First, Cimarex Energy is one of the best in the industry at completing wells in the Bone Spring formation. This is very important for well success and optimal well production. And second, if successful, this could lead to drilling a third well on this lease, which could serve to significantly increase our daily production and proved producing reserve base."
Also as with well #1, FieldPoint will own a 43.75% working interest, Cimarex will own a 37.5% working interest, and other partners will own the remaining 18.75% working interest in the two planned wells.
About FieldPoint Petroleum Corp. www.fppcorp.com
FieldPoint Petroleum Corporation is engaged in oil and gas exploration, production and acquisition, primarily in New Mexico, Oklahoma, Texas and Wyoming.
Thanks for the DD Johnsyn!
Figured as much but they will always try! This world needs more production from more sources as nothing will be able to replace oil as the primary source of global energy anytime soon. I always wonder what their ideal solution is when they try to fight off these types of ventures.
May not be without any obstacles though.
I would tend to agree with Barron's and you in this case.
Honestly I am most interested in what they are doing in North America. Statoil recently announced that it would increase its investments in North America. The company will spend $17 billion in order to ramp up its North American production from 150,000 barrels per day to 500,000 barrels per day by 2020.
As the company's reserves in Norway start shrinking, the company is taking active role to increase production elsewhere. The company has strong presence in Gulf of Mexico and oil rich northern parts of US such as North Dakota
I really like the Mississippian Play a lot. Excerpt from website.
BP is the most popular oil company among hedge funds, followed by Exxon Mobil. Value investorSeth Klarman had a $400+ million position in the stock at the end of the first quarter. Billionaires Ken Fisher and Ken Griffin are among the fund managers with large XOM positions. They both boosted their stakes in XOM during the first quarter (see Ken Fisher’s top stock picks).
T. Boone Pickens' fund picked up 188,000 shares of Valero Energy (VLO) last quarter, building up a $5 million stake in the country's largest independent oil refiner. Valero has the capacity to process more than 2.8 million barrels of crude per day through its 14 refineries, in addition to a massive ethanol business and a 1,000-unit gas station business.
T. Boone Pickens likes Devon Energy Corp (DVN). The stock is the fourth largest position in his latest 13F portfolio. Pickens boosted his stakes in Devon by 36% over the first quarter to $190 million. Devon is also quite popular amongst the other hedge funds we track.
There were 32 hedge funds with positions in Devon at the end of last year. Devon has also shifted its focus from natural gas to oil and natural gas liquids. We think Devon is well positioned to benefit from the higher margins of liquids.
Encana Corp (ECA) is a new position in BP's (T. Boone Pickens) portfolio - the fund did not report owning any shares of Encana at the end of 2011 - but it is one of its largest holdings. During the first quarter of 2012, BP initiated a new position in the company worth $18 million.
A few other hedge funds also have Encana in their 13F portfolios. At the end of last year, there were 19 hedge funds reported to own this stock. Steven Cohen's SAC Capital Advisors had nearly $100 million invested in Encana at the end of last year. Martin Whitman and Ken Griffin are also bullish about this stock.
Hey if water ingression and ice is the worst of their worries on 50k BOD/E giddy up!
I am excited to see what discoveries can be made. Do you know if there are any other companies already or planning on drilling there?
Yeah I'm a bit Bakken fan and this one seems to be on the right track. That plus the price is very attractive all things considered. I was able to catch KOG when it was still under $3 so hoping this is a good catch.
Anybody heard any updates on this rework?
Most recent data on the project developments.
Commitments and Contingencies
We are subject to contingencies as a result of environmental laws and regulations. Present and future environmental laws and regulations applicable to our operations could require substantial capital expenditures or could adversely affect its operations in other ways that cannot be predicted at this time. As of March 31, 2012 and December 31, 2011, no amounts have been recorded because no specific liability has been identified that is reasonably probable of requiring us to fund any future material amounts.
In July 2010, TEI entered into an Agreement to participate in an Oil and Gas Development Joint Venture (the “Participation Agreement”) with Bayshore Operating Corporation, LLC (“Bayshore”). Bayshore is currently the holder of an oil, gas and mineral lease covering approximately 1,045 acres in Wilson County, Texas, known as the Marcelina Creek Field Development. The Participation Agreement provides for the drilling of four (4) wells. Upon execution of the agreement, TEI paid Bayshore an initial deposit of $50,000, which amount was credited to the initial $50,000 payment due for the first well, in exchange for a 50% working interest in the first well. TEI will pay 100% of total drilling and completion costs.
The first well, the Johnson #1-BH, was a re-entry and drilled a lateral section of the Buda Formation of approximately 1840 feet in August 2010. After mutual agreement as to the location, the second well was drilled beginning July 2011. For the second well, TEI paid Bayshore $50,000 at rig move-in and will pay $200,000 when the well is completed or plugged and abandoned, whichever comes first. Further, TEI will pay 100% of the total drilling and completion costs for a 75% working interest.
For the third and fourth wells, TEI will pay Bayshore $50,000 at rig move-in and $150,000 when the well is completed or plugged and abandoned, whichever comes first. Further, TEI will pay 100% of the total drilling costs and 75% of the completion costs for a 75% working interest with Bayshore to pay 25% of the completion costs.
On December 31, 2011 the company executed an agreement with Bayshore for an extension of its drilling obligation deadline from January 6, 2011 to April 15, 2011. As a condition for the extension the company paid to Bayshore $50,000, on January 6, 2011 and issued 25,000 shares of the company’s stock in January 2011. Further a $25,000 cash payment was made concurrent with the approval of the Authority for Expenditure (AFE) for the Johnson #4 well. As additional consideration Bayshore is no longer obligated to pay its proportionate share of completion costs on the second vertical well.
The Johnson #1-BH encountered good shows and a completion was attempted. The well however produced large volumes of water, some introduced by Bayshore during drilling and some from another source, either a deeper formation or from a nearby well. In July 2011 a workover crew was brought in to service the well, replace a broken rod and re-work the downhole pump. On July 27, 2011 the crew dropped two joints of pipe in the hole and on July 28 another six joints. The well was damaged sufficiently to be shut-in. Discussions to resolve this matter with the service company, Mercer Well Services, are ongoing (see “Recent Activity” above).
The Johnson #4, the first vertical well, began drilling operations on July 2011. The well encountered several pay zones and an attempt to complete in the Buda Formation was made. The well has experienced several mechanical problems which had delayed its completion. Following correcting the mechanical problems the well acted as if the Buda was tight and a subsequent acid job was done in February 2012 to stimulate the well (see “Recent Activity” above).
In late August 2011, Torchlight entered into discussions with Hockley Energy on a farm-in to TEI’s position in Marcelina Creek and nearby acreage in the Stockdale, Texas area. After numerous meetings a Letter of Intent was executed in October 2011 which included the terms of Hockley’s farm-in to TEI’s position. On November 4, 2011, TEI and Hockley Energy executed two farm-in agreements, one for Marcelina Creek and one for the East Stockdale acreage. Under the terms, Hockley was to fund a deposit of $1.5 million by November 6, 2011. To date no funds have been deposited, and we have filed a lawsuit against Hockley Energy alleging breach of contract, fraudulent inducement and promissory estoppel.
On September 27, 2011, we entered into an agreement with Wexco to acquire leases in Wilson County, Texas. Under the terms of the agreement, we provided Wexco’s attorney to hold in escrow 1,672,375 shares of our common stock to secure the option to acquire the leases. Our financial partner, Hockley Oil and Gas, failed to fund and the shares have been requested to be returned to us. At this time we are awaiting receipt of the shares.
In November 2011, we entered into discussions and an evaluation of a possible farm-in to La Sal Oil & Gas on a prospect in Waller County, Texas. A subsequent farm-in agreement was reached and executed in January 2012 (see “Recent Activity” above).
http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=8268782
Financial data from the latest 10-Q.
Summary of Key Results
Overview
Our sole business is that of Torchlight Energy, Inc., an exploration stage company formed as a corporation in the state of Nevada on June 25, 2010. We are engaged in the acquisition, exploration, exploitation and/or development of oil and natural gas properties in the United States.
Results of Operations
The following discussion of our financial condition and results of operations should be read in conjunction with our unaudited financial statements, included herewith. This discussion should not be construed to imply that the results discussed herein will necessarily continue into the future, or that any conclusion reached herein will necessarily be indicative of actual operating results in the future. Such discussion represents only the best present assessment by our management.
We had no active operations prior to the inception of TEI on June 25, 2010. Due to this fact, comparisons to previous years are not necessarily indicative of actual operating results.
Recent Activity
On January 10, 2012, we entered into a farm-in agreement, titled the “Coulter Limited Partnership Agreement” (the “Coulter Agreement”), with La Sal Energy, LLC (“La Sal”). La Sal owns a 100% working interest and a 75% net revenue interest in certain oil, gas and mineral leases in Waller County, Texas, upon which the well known as “John Coulter #1-R” is located. Pursuant to the Coulter Agreement, we acquired a 34% working interest and a 34% net revenue interest in La Sal’s interest in the John Coulter #1-R for the purchase price of $350,000. It is anticipated this amount will fund the fracing of the well. Upon production, the net revenue split will be 80% to us and 20% to La Sal until net revenue is an accumulated $437,500. During this period, expenses above the $350,000 initially paid in will be split according to actual percentage interests in the well. After net revenue is an accumulated $437,500, net revenue will be split according to the actual percentage interests in the well. The Coulter Agreement also provides us with multiple options under which we can acquire additional interests in La Sal’s interest in the well. The well was stimulated on February 22, 2012, and we are awaiting completion.
On February 1, 2012, we attended a settlement meeting with Mercer Well Services and Bayshore Operating Co. in San Antonio to discuss damages to the Johnson #1 well caused by Mercer. No resolution was made at the meeting but Mercer did confirm that they would respond back after they reviewed the information supplied by Bayshore. A meeting is now tentatively scheduled for May 21, 2012, at which we hope to resolve this matter. The long lead time was due to an accident in which Mercer was involved in another state.
On February 13, 2012, the Johnson #4 well was treated with acid to stimulate its production. The well had been testing oil and appeared to be tight. The acid job went well and we still are testing its capability. A small amount of oil from the Johnson #4 was sold in January and February at a price of $97.50 per barrel. Production in March averaged 55 BOPD for the month, producing in excess of 1,600 barrels.
Historical Results for the Three Months Ended March 31, 2012, Three Months Ended March 31, 2011 and the Period from June 25, 2010 (Inception) to March 31, 2012.
Revenues and Cost of Revenues
We had revenue of $24,216, $0 and $48,368 consisting entirely of test oil and gas sales during the three months ended March 31, 2012, the three months ended March 31, 2011 and June 25, 2010 (Inception) to March 31, 2012, respectively. The increase in revenue for the three months ended March 31, 2012 compared to the three months ended March 31, 2011 is due to the fact that we did not have any production prior to the three months ended June 30, 2011. We recognized cost of revenue of $16,523, $0 and $41,796 during the three months ended March 31, 2012, the three months ended March 31, 2011 and June 25, 2010 (Inception) to March 31, 2012, respectively.
General and Administrative Expenses
Our total operating expenses for the three months ended March 31, 2012, three months ended March 31, 2011, and the period from June 25, 2010 (Inception) to March 31, 2012 were $231,221, $550,429 and $2,749,182 respectively and consisted entirely of general and administrative expenses. Our general and administrative expenses consisted of accounting and administrative costs, professional consulting fees and other general corporate expenses. The decrease in operating expenses for the three months ended March 31, 2012 compared to the three months ended March 31, 2011 is directly related to higher professional and consulting costs incurred during the prior period.
Liquidity and Capital Resources
We have minimal assets and have achieved nominal operating revenues since our inception. We have depended on loans and sales of equity securities to conduct operations. As of March 31, 2012, we had total current assets of $144,039, consisting of $45,050 in cash, $24,967 in receivables, $50,794 in debt issue costs and $23,228 in prepaid costs. As of December 31, 2011, we had total current assets of $551,822, consisting of $518,281 in cash, $17,274 in receivables and $16,267 in prepaid costs. As of March 31, 2012, we had $3,706,286 in investment in oil and gas properties and $447,084 in goodwill. For the year ended December 31, 2011, we had $3,182,128 in investment in oil and gas properties and $447,084 in goodwill.
During the three months ended March 31, 2012, we had $337,725 in net cash provided by financing activities. It was attributable to $67,725 of private placement, $56,000 of shares issued to management and $214,000 of issuances of convertible notes.
http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=8268782
Torchlight Energy Provides Operations Update
Service Company moves in on Johnson #1
Jul 10, 2012 9:19:00 AM
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HOUSTON, July 10, 2012 /PRNewswire/ -- Torchlight Energy Resources, Inc. (OTCBB: TRCH) issues update on the Johnson #1 in Marcelina Creek.
Work has been completed on the location and the rig has moved in and has rigged up. They will begin the process of drilling a new horizontal leg to an approximate lateral length of 1800'. Work on the Johnson #1 should take approximately two weeks to complete.
The well will be tested upon completion and results announced as soon as practical.
As previously reported, the service company damaged the Johnson #1-H during a routine workover. The company has agreed to re-drill the well at no cost to the Torchlight-Bayshore partnership. Torchlight has a 50% working interest in the well.
You can view more information on the company's website at www.torchlightenergy.com.
ABOUT TORCHLIGHT ENERGY
Torchlight Energy Resources, Inc, headquartered in Houston, TX, is positioned as an oil and gas company with a primary focus on oil. Torchlight will focus on highly probable and profitable drilling and working interest programs that have a short payback period, high IRR and proven reserves and are located in domestic, onshore fields.
With a proven management team and tremendous access to pre-market deal flow, the Company is positioned for tremendous near-term growth for our shareholders. Torchlight will identify drilling opportunities with a high probability of success, purchase working interest ownership in proven field development programs, spread the risk associated with drilling programs by entering into a variety of programs in different fields with differing economics but all with reputable operators and hedging production when possible for predictable cash flows.
Wow what a drop in price. Interesting news recently though. Anybody have any thoughts on future prospects?
GMX Resources Inc. has spud the Basaraba 24-35-1H located in Sections 26&35, Township 144N, Range 100W in Billings County, North Dakota. The Company has a 50% working interest in the Basaraba 24-35-1H which has a proposed total depth of 20,950 feet and a proposed total vertical depth of 11,221 feet. The well was spud with an H&P FlexRig 3 #255.
Michael J. Rohleder, Company President, said, "We are pleased to establish a relationship with Helmerich & Payne in North Dakota. Our success in lowering overall costs by improving drilling times and spud to sales cycle times with the H&P FlexRig 3 in our East Texas operations from 2009 to 2011 gives us continued confidence in our ability to do the same in our Bakken program. This rig comes with an experienced crew and has drilled a number of successful Bakken wells for the previous operator."
LONDON - Chevron Corp. will invest billions of dollars developing a giant offshore project in a remote and technically challenging corner of the British North Sea, the latest sign that major international oil firms are being drawn back to the region as efforts to ameliorate its onerous tax regime begin to bear fruit.
The move was hailed by Energy Minister Charles Hendry, who said the "pioneer development" had the potential to unlock as much as a fifth of the country's remaining oil reserves.
Chevron's decision to start allocating the main engineering and design contracts for the Rosebank project, located in rough seas more than a hundred kilometers northwest of the Shetland Islands, comes three months after U.K. Chancellor George Osborne announced a raft of tax measures aimed at encouraging renewed investment in one of the world's older oil and gas basins.
A surprise tax rise on profits from oil production last year was greeted by industry indignation and warnings that North Sea investment would be threatened, a prediction that appeared to gain credence when output from the basin fell 18% in 2011.
In an apparent sop to these criticisms, Mr. Osborne in March announced tax allowances for the type of harder-to-access deep water fields that Chevron intends to develop at Rosebank.
"The efforts by the U.K. government, to stimulate development in this important region, have enabled the progression of this project and underline the importance of industry and government collaboration," said Brenda Dulaney, managing director of Chevron's European exploration and production division. "A successful Rosebank development will deliver positive contributions to the U.K. economy through employment, production, tax revenue and enhanced energy security for the country," said Ms. Dulaney.
The Rosebank field, discovered eight years ago, is believed to hold up to 240 million barrels of recoverable oil. The project is being jointly developed by operator Chevron, which holds a 40% stake, Norway's Statoil ASA, Austrian firm OMV AG and Denmark's DONG Energy.
The company declined to say how much it expects Rosebank to cost, but independent estimates have put the total bill somewhere between $6 billion and $8 billion, split between its various partners.
Unlike the central and southern North Sea, where oil and gas production has taken place since the 1960s, fields like Rosebank lie in an area of ocean on the edge of the U.K. continental shelf. While many established North Sea producing sites were drilled in shallow water, the West of Shetland is characterized by extreme weather conditions and water depths.
Because developing these types of projects is inherently more complex--and expensive--the threat of continued higher taxes led firms and industry bodies to warn that future exploration in the area would be curtailed without some kind of state encouragement.
The investment is expected to lead to the creation of around 300 direct jobs, with up to 1,000 more in the supply chain and wider economy, said Chevron.
"It is a boost for both the U.K.'s energy security and the economy, with significant numbers of jobs expected to be created and secured on the back of this project," said Mr. Hendry, who added: "opening up this area has been challenging [but the announcement] is firm evidence of the successful work between industry and government to realize the North Sea's full potential."
LONDON - Royal Dutch Shell PLC's controversial plan to drill for oil in waters off Alaska's Arctic coast faces delays as the company races to get final Coast Guard approval of its vital oil spill response vessel.
Shell initially planned to begin its campaign to explore for oil in the Chukchi and Beaufort Seas in July. However, the company said Tuesday it is still working with U.S. officials to ensure that an essential oil spill response vessel is adequately prepared for the unique conditions it will face.
These fresh challenges highlight the difficulty Shell has faced exploring for oil offshore Alaska since BP PLC's Gulf of Mexico oil spill in 2010 prompted much higher scrutiny from regulators and environmental groups.
"Shell's designated oil spill containment barge, the Arctic Challenger, is currently undergoing a series of inspections to ensure its readiness for deployment to Alaska," said a Shell spokesman.
Two Shell-chartered drilling ships already began their journey from Seattle to Alaska late last month.
The issue is made more pressing by the fact Shell has a narrow seasonal window in which Arctic exploration drilling can be conducted.
By September, advancing winter sea ice can limit activities. For example, in 2010 Scottish exploration firm Cairn Energy PLC (CNE.LN) was forced to plug half-finished wells it was drilling in similar conditions offshore Greenland, when delays caused mainly by geological factors pushed its tight schedule to the limit.
Shell said that it was working closely with the Coast Guard to define the operational and mooring standards of what is a "first-of-its-kind system" that isn't yet mandated by regulation.
"We have every confidence the Arctic Challenger will achieve the certifications necessary and that it will be available in the Arctic in 2012," said the Shell spokesman.
Separately, environmental campaigners Monday filed a lawsuit in Anchorage seeking to challenge the federal government's decision to approve Shell's oil spill cleanup plans. The action is one of several by ecological groups opposed to the Anglo-Dutch giant's upcoming operations.
Although the Arctic is seen as a major untapped hydrocarbon resource, critics fear that a well blow out and oil spill, like the one that occurred on the BP-leased Deepwater Horizon drilling rig in 2010, would be almost impossible to clean up and would risk permanently damaging a fragile ecosystem.
"We remain confident that the approval of our oil spill response plans will withstand any legal review," said the Shell spokesman. "These approvals are testament to the huge amount of time, technology and resources we have dedicated to an Arctic oil spill response fleet that is second to none in the world."
"If we were not absolutely confident that we could execute a responsible exploration program, we would not be here," the spokesman added.
Louisiana Department of Natural Resources (DNR) Secretary Scott Angelle noted Tuesday that Devon Energy recently completed its fourth horizontal well in the Tuscaloosa Marine Shale (TMS) and the initial production test figures submitted this week show the strongest oil production results of the company's TMS wells drilled to date - at 384 barrels of oil per day (bopd).
This newest well, located in northern St. Helena Parish, follows Devon's successful drilling of two productive horizontal TMS wells in East Feliciana Parish and another in Tangipahoa Parish. Devon also has two other TMS well projects in progress – one in Tangipahoa and one in West Feliciana parishes.
"I want to thank Devon Energy for expressing its faith in Louisiana's potential to provide energy and qualified workers, because I recognize that the company has a choice in where it invests its exploration funding," Angelle said. "I hope to see Devon's ongoing success in the Tuscaloosa Marine Shale repeated by the other operators who have begun to invest in the play, bringing the potential for economic development, jobs and new sources of domestic energy," Angelle said.
The Tuscaloosa Marine Shale is believed to underlie much of Central Louisiana, with potential productive areas currently being explored from Vernon Parish to Tangipahoa Parish. The energy industry has been observing the development of the Tuscaloosa Marine Shale, believed to be primarily an oil-rich play. New processes and technology have led to rapid gains in domestic oil and natural gas reserves, making them recoverable from ultra-dense formations once thought uneconomical to produce.
Statoil announced Thursday that it temporarily halted production this week at the Hammerfest LNG terminal in the Barents Sea.
The firm blamed the stoppage, which occurred on Tuesday, on water ingression in the plant's natural gas dryers. This can cause ice formation in the cooling circuit.
Statoil said it is making "big efforts" to get the gas liquefaction plant back on line quickly.
The LNG plant processes gas transported through an approximately 90-mies pipeline from subsea facilities on the Snøhvit and Albatross fields. Statoil's share of the Snøhvit output is around 50,000 barrels of oil equivalent per day.
In May, Statoil shut the Hammerfest plant down for scheduled maintenance. It was restarted at the beginning of June.
Magnum Hunter Resources Corporation has provided a status update on the Company's shut-in production in the Appalachia region from a severe thunderstorm that hit the area almost two weeks ago. Due to loss of electricity in the region, the Company has continued to experience gas production curtailments at the tailgate of its pipeline into Dominion Transmission at their Hastings processing facility located in Hastings, West Virginia. Currently, approximately 10% (8.4 mmcfepd) of Magnum Hunter's current total net production or 17% of the Company's Appalachia production is being curtailed, which is more than originally anticipated. Based on representations from Dominion Transmission, we expect the curtailments to continue for at least the next several weeks, and have no indication on when the Hastings processing facility will return to normal capacity.
CALGARY - Encana Corp. shares slid more than 5% Monday following a report alleging the Canadian company colluded with a rival to lower the price of U.S. shale-gas lands up for auction.
Shares of the Calgary-based natural-gas producer, the second- largest in North America after Exxon Mobil Corp., dropped as much as 5.5% on the New York Stock Exchange after Reuters reported that, in email exchanges, executives at Encana and rival Chesapeake Energy Corp. discussed ways to avoid competing against each other for shale-gas land in Michigan.
The report alleged that Encana and Chesapeake agreed to split up shale-gas lands between them before a public auction to avoid creating a bidding war that would drive up the price. If the allegations are true, the report suggested Encana and Chesapeake could be in violation of U.S. anti-trust laws.
"An investigation of this matter was immediately initiated," Encana Chairman David O'Brien said in a statement. "Encana therefore will not provide any further information at this time."
The report comes at an inconvenient time for Encana, which is trying to rapidly expand its liquids-rich natural-gas production and offset the low price of natural gas by selling partnership stakes in its shale-gas plays.
"To have one of the major plays that is in your [partnership] package to now be scrutinized, that obviously reduces the marketability of those assets," Morningstar analyst Robert Bellinski said.
Encana shares were down 4.6% to $18.94 in recent trading. Shares of Chesapeake Energy, the third-largest natural gas producer in North America, were down 8.4% to $17.04.