Monthly Archives: November 2015

U.S. crude oil/lease condensate proved reserves increased by 9%, to 39.9 billion barrels (BBbls), and natural gas proved reserves increased by 10%, to 389 trillion cubic feet (Tcf) in 2014, the U.S. Energy Information Administration said Monday.EIA, in its “U.S. Crude Oil and Natural Gas Proved Reserves” report, states U.S. crude oil/lease condensate proved reserves reached the highest level since 1972, and natural gas proved reserves surpassed 2013’s record level.Proved reserves are volumes of oil and natural gas that geologic and engineering data demonstrate with reasonable certainty to be recoverable under existing economic and operating conditions. Because they depend on economic factors, proved reserves shrink or grow as commodity prices and development costs change. EIA s estimates of proved reserves are based on an annual survey of domestic oil and natural gas well operators.Texas had the largest increase in proved reserves of crude oil and lease condensate, representing


2016 could be a turning point for American energy. Will increasingly well-organized attacks on energy result in policies that hinder or stop shale development? Or will our industry rally and win battles in the halls of government and at the ballot box? The best way to advance our industry in the policy arena is to get involved with Energy Nation. Our industry’s employee-powered advocacy community, Energy Nation is always free to join and participate. Once you sign up, Energy Nation will provide you with information, training, and tools that enable you to be an energy champion. By bringing your expertise and informed views to the debate, you’ll help our industry turn back challenges at the local, state, and national levels. Energy Nation advocacy isn’t just about fighting challenges. It’s also about seizing opportunities to expand American energy development. Right now, Energy Nation is pushing hard to lift the ban on oil exports. If we can sell to the world, we’ll see new in

While the Halliburton – Baker Hughes deal is receiving considerable scrutiny by the DOJ, this deal seems to be sailing through. Oilfield services giants Schlumberger and Cameron International on Tuesday said the U.S. Department of Justice has cleared their proposed $14.8 billion merger, granting early termination of the waiting period mandated by the Hart-Scott-Rodino Act. The closing of the proposed merger remains subject to approval by Cameron stockholders, with a special shareholders’ meeting to vote on the deal scheduled for Dec. 17 Kallanish Energy reports. It is interesting that DOJ does not require either company to sell of any of its assets to approve the deal. Schlumberger and Cameron expect to close the merger in the first quarter of 2016. Joseph Barone The post Schlumberger – Cameron Merger Receive DOJ Approval appeared first on Shale Directories.

Independent oil and gas producer Magnum Hunter Resources (MHR), which has stopped paying dividends, is selling assets and has hired advisors to boost its sinking financial position, may be out of options. As part of its quarterly results filing with the U.S. Securities and Exchange Commission, the Irving, Texas-based company warned its only path could be Chapter 11. Like many of its brethren, Magnum Hunter is between the proverbial rock – the demand for capital to conduct its operations – and the hard place – the economic realities of collapsed oil and gas prices. “As of Sept. 30, 2015, the company had $6.5 million in cash and a working capital deficit of $1,037.2 million [$1.04 billion], “the SEC filing states. At Sept. 30, Magnum Hunter was in default under its senior revolving credit facility and second-lien credit agreement. During the first quarter, Magnum Hunter suspended all drilling and said it didn’t expect to resume until its liquidity position has been stabilize

Independent oil and gas producer Eclipse Resources is looking at a sale of the company, Bloomberg reported, citing anonymous sources. The State College, Pennsylvania-based company has been working with Morgan Stanley soliciting offers from competitors, Kallanish Energy understands. The company has been reaching out informally to potential suitors, but isn’t conducting a formal auction, the sources told Bloomberg. Eclipse has a market value of roughly $500 million. Representatives for Eclipse and Morgan Stanley declined to comment. Small, independent, cash-gobbling U.S. oil and gas producers, coping with depressed commodity prices, have been increasingly putting themselves on the block. Clayton Williams Energy said in October it is reviewing options and hired Goldman Sachs Group to explore a sale, while Rosetta Resources in July sold itself to Noble Energy for more than $3 billion. Eclipse, founded in 2011 with backing from private equity firm EnCap Investments, was one of numerous p

The Houston, Texas-based Apache reportedly is working with financial adviser Goldman Sachs on defense, Bloomberg reported. The unnamed potential buyer sent a letter to Apache in the past few weeks and it’s unclear whether talks will resume, Kallanish Energy understands. A spokesman for Apache couldn’t be reached for comment. A deal for Apache would be the largest for an independent oil and gas producer in the U.S. this year. Noble Energy in July bought Texas shale driller Rosetta Resources for $3.9 billion, including assumed debt, in an all-stock transaction. Apache has under-performed in recent years, largely because of bad bets on major projects in Argentina and Australia that didn’t pan out. The company, which announced a new CEO in January, has been selling off properties in Texas and Australia. Apache had a third-quarter net loss of roughly $5.7 million, compared with a loss of about $1.3 million a year earlier. The company has cut its 2015 capital budget by more than 60% f

SandRidge Energy is acquiring the assets of privately-held EE3 in the Niobrara Shale for $190 million in cash, Kallanish Energy learns. With the deal, independent producer SandRidge said it will have a material, de-risked Niobrara Shale position in the North Park Basin in Jackson County, Colorado. The 136,000 acres acquired is largely concentrated in a rural areas “ideal for pad drilling and efficient infrastructure installation.” “Expanding into a proven, high quality, repeatable oil play leverages our core competencies in medium depth horizontal drilling, unconventional development, infrastructure, and cost reduction,” said James Bennett, SandRidge CEO. “We will be mobilizing to spud our first well in January. The buy includes a large, concentrated acreage position in Niobrara Shale play that has five stacked benches at depths of 5,500 to 9,000 feet, reservoir thickness over 450 feet, oil in place greater than 55 million barrels per section and an overpressured reservoir,