|From: Ed Ajootian||12/6/2009 1:45:17 PM|
|Denbury Sharpens Enhanced Oil Recovery Focus |
Copyright © 2009 Energy Intelligence Group, Inc.
Friday, December 4, 2009
Dallas-based Denbury Resources is expanding further into the carbon dioxide-based enhanced oil recovery (EOR) business and disposing of its largest remaining natural gas assets.
Denbury said on Thursday it will pay $430.7 million in cash and stock to privately held Wapiti Energy for a 95% stake in the old Conroe oil field north of Houston.
The cash will come from the proceeds of a $210 million sale of Denbury's remaining Barnett Shale gas assets in North Texas to Talon Oil & Gas, another private company that purchased 60% of the Barnett properties earlier this year (OD May14,p7).
The two transactions will get Denbury almost completely out of the natural gas business, even after factoring in the recently announced $4.5 billion purchase of Encore Acquisition (OD Nov.3,p1).
Denbury is currently in the process of acquiring Fort Worth-based Encore which focuses on enhanced oil recovery and unconventional oil, such as the Bakken Shale play of North Dakota. Encore does have a few small natural gas holdings.
Denbury is representative of an emerging trend, especially among independent producers, but also some majors, to focus more on North American oil which currently offers much higher margins.
Current Nymex futures prices have oil and natural gas at a 17:1 price ratio, compared to the historical ratio of 10:1. The multiple had been as high as 30:1 earlier this year.
"We believe that taken together, these two transactions further enhance our core strategy, assets and focus," said Denbury Chief Executive Phil Rykhoek.
"We are acquiring an asset with an estimated 125 million barrels of upside potential in exchange for an asset that we believe has far less potential," he added.
Rykhoek described the Conroe field as the "single largest potential tertiary flood on our list of desired Gulf Coast properties."
Denbury has been expanding from its original base in Mississippi into the Upper Texas Gulf Coast through the acquisition of an assortment of old oil fields. It is currently constructing the Green Pipeline to transport naturally occurring occurring carbon dioxide from an underground source to the region.
The company also is looking at opportunities to capture carbon dioxide from industrial emissions for use in enhanced oil recovery projects in the Gulf Coast area.
Developing the Conroe field as an enhanced recovery project will not be cheap, however. Denbury said it will invest $750 million to $1 billion to recover an additional 125 million bbl of oil from the field, including construction of an 80-mile connection to the Green Pipeline.
In addition, Denbury believes it can recover another 20 million barrels of oil equivalent of conventional reserves from the property.
The Conroe field, located about five miles northwest of the town of Conroe and 40 miles north of Houston, was discovered in 1931 by wildcatter George W. Strake.
As was often the case, development of a find of this magnitude was beyond Strake's means, so he brought in the Humble Oil & Refining Co. -- one of Exxon Mobil's predecessor companies -- as his partner.
Other drillers had interests in the field, and it became a test case for the Texas Railroad Commission as the agency sought to implement newly passed production regulations in the 1930s. Eventually the field was unitized under a single operator, initially Humble, which later became part of Exxon.
According to Texas Railroad Commission figures, the Conroe field has already yielded more than 750 million bbl of oil over a lifetime of nearly eight decades.
Barbara Shook, Houston
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|To: Ed Ajootian who wrote (107)||11/19/2010 12:02:08 AM|
|Be on the look out. TRDY is a clean debt free shell and we expect to see an O&G company R/M into it between now and Monday AH. (.017)|
Could be big. A Stan Larson is controling this
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|From: Ed Ajootian||8/23/2013 8:10:15 PM|
| Adena Field Project |
In two transactions in May and December 2011, Black Raven bought the wells, equipment and acreage known as the Adena Field Project. Our Adena Field Project is located in Morgan County in Northeast Colorado, where we owned a 100% working interest in 18,760 gross acres as of June 30, 2013. Our acreage position covers the vast majority of Adena Field, which is the third largest oil field in the history of Colorado according to the Colorado Oil and Gas Conservation Commission, behind Rangely Field and Wattenberg Field. Adena Field has cumulatively produced 75 million barrels of oil and 125 billion cubic feet of natural gas. Almost all of our leased acreage in this project is currently held-by-production (see “Glossary” on page [•] for definition of held-by-production). Nearly all of the producing wells in Adena Field were temporarily abandoned or shut-in during the secondary recovery phase in the mid-1980’s when oil prices collapsed, and only a small number of wells have been produced since that time.
As of July 31, 2013, our Adena Field Project was producing approximately 250 gross barrels of oil equivalent (68% oil) per day from 8 J-S and 7 D-Sand wells at a depth of approximately 5,500 feet. Approximately 127 wells are currently shut-in or temporarily abandoned in our Adena Field Project, of which we have initially identified approximately 60 wells to be re-activated in the J-Sand formation and 20 wells to be re-completed in the D-sand formation. Our producing J-Sand wells currently average approximately 11 barrels of oil per day and our most recent D-Sand re-completion achieved an initial peak production rate of approximately 100 barrels of oil per day before stabilizing at a rate of approximately 30 barrels of oil per day. Re-completions and re-activations are expected to cost approximately $200,000 per well. In addition, Black Raven initiated a secondary water flood project in an isolated D-Sand oil pool during the first quarter of 2013. This water flood project is expected to significantly increase our oil production with initial response expected during the fourth quarter of 2013.
Our working interest in our Adena Field Project is subject to a 30% reversionary working interest that will be assigned to an unrelated third party, subject to the terms and conditions of such agreement, after payout of all acquisition, operating, development, and financing costs (including interest), plus interest at a rate of 13% per annum on all amounts paid by us on or with respect to the Carlyle Note agreement. The payout balance associated with this reversionary working interest was estimated to be approximately $28 million as of June 30, 2013.
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|From: Steve243||6/7/2015 11:53:50 AM|
|I`m new at this site but I hope it`s ok to give my recomendation?|
It`s a company called African Petroleum Corporation Limited, APCL.
It`s traded at the Oslo Axess in Norway. africanpetroleum.com.au
This company is a significant net acreage holder in West Africa, holding ten licenses, six of them close to where several discoveries have been made in recent years, including significant discoveries during 2014 by Total in Côte d’Ivoire and Cairn Energy in Senegal.
This might be the next hot-spot region in oil development. The new CEO, Stuart Lake, has this amazing track record, having drilled above 300 wells with 85% hit-rate.
Today`s Market Cap is about $45M, it can easily be ten times this in a year with a commercial discovery..
About 20% of the shareholders are US investors.
According to CFO Stephen West, there will be made farm out announcements by H1 this year. A completed farm out transaction provides a huge upside potential, a commercial discovery should deliver further material upside.
Please take a look, ask me if you have any questions!
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