Koil Energy Solutions Inc. (KLNG)

[mazaniac]

Saw this today:

At a press conference held at OTC 2008, the U.S. Minerals Management Service released the latest Deepwater Gulf of Mexico Report, highlighting industry movements in 2007.

Covering oil and gas activities in the Gulf of Mexico for the past 16 years, the Minerals Management Service unveiled its newest report, entitled "Deepwater Gulf of Mexico 2008: America's Offshore Energy Frontier" May 5 at the Offshore Technology Service.

With 25% of the nation's oil and 15% of its natural gas coming from the GOM, the MMS stressed the need to continue to push forward with deepwater GOM leases, exploration and production.

"Continued advancement into this deepwater frontier is important to our nation's energy security," said MMS Director Randall Luthi. "The Gulf of Mexico is a key energy producer, and the safe and environmentally responsible development of our resources is vital to the economy and our way of life."

The report reveals that about 72% of the Gulf of Mexico's oil production comes from deepwater wells (more than 1,000 feet of water or more). Interest in deepwater GOM continues to be strong, as well, with 54% of all 2007 GOM leases located in deep waters.

"As we look at the data, it's clear that deepwater advancement is occurring in all areas -- leasing, drilling and production, said Luthi. "At the end of 2007, there were 130 producing projects in deepwater; that's double the amount from five years ago."

Drilling was strong for the area with 94 exploratory wells and 48 development wells drilled in 2007. Sixty percent of the development wells were drilled in ultra-deepwater (more than 5,000 feet of water). Eight deepwater discoveries were announced in 2007, including Danny, Droshky, Isabela, Julia, Magellan, Noonan, Vicksburg and West Tonga. Additionally, the MMS said that there were 13 new drilling rigs being built with the capability to drill in 12,000 feet of water.

The governmental agency also pointed to improved technologies as a way to increase production in the GOM, citing specifically Petrobras' Cascade FPSO, the first of its kind to be used in the area. The vessel will be in 8,200 feet of water, and the MMS hopes that its successful startup expected for 2011 will lead to more usage of the technology in the GOM.