US bankruptcies can open doors for international firmsThe international upstream sector has been significantly less volatile than in the US and Canada, which have logged a record number of bankruptcies. There have been a few in Latin America as well, most notably Pacific E&P (formerly Pacific Rubiales), which agreed to a debt buyout led by Catalyst Capital Group, and BPZ Energy which was liquidated last year.International production is in general less reliant on capital-intensive unconventional production than US and Canadian operators....
Jun 16, 2016
Bankruptcies may offer opportunities in USThe current down cycle has pressured international E&P companies, forcing them to slash drilling and at times bringing deal activity to a near-standstill. However, in terms of corporate restructurings, the international upstream sector has seen significantly less upheaval than in the US and Canada. There have been a few notable exceptions, particularly in Latin America: Peru-focused BPZ Energy was liquidated late last year, and Colombia producer Pacific E&P (formerly Pacific Rubiales) has...
Jun 03, 2016
Renamed PetroTal evaluates acquisitions in Peru & ColombiaLess than three months after launching in Houston, privately held Talara Oil & Gas is changing its name and widening its stance to pursue acquisition opportunities onshore Colombia as well as Peru. The renamed PetroTal appointed GMP Securities to help it raise capital and advise on potential acquisitions. The company is led by CEO Manolo Zuniga, who founded it in February after the liquidation late last year of his bankrupt previous venture, Peru explorer BPZ Energy.“While the focus...
May 16, 2016
BPZ founder reloads to build new Peru portfolio with TalaraFollowing the liquidation of bankrupt Peru explorer BPZ Energy late last year, the company’s founder has launched a new Houston E&P firm called Talara Oil & Gas with plans to acquire producing properties in North and South America. Once again, CEO Manuel Pablo Zuniga-Pflucker has his eyes on Peru, where he sees opportunities “to build a portfolio of onshore assets that, with proper management and the application of appropriate technologies, are sustainable at today’s commodity prices.”...
Feb 29, 2016
Trickle-down effectContinued low oil and gas prices have put stress on upstream companies’ balance sheets. To keep pace during the shale boom, many US companies took on large amounts of debt, one estimate being $199 billion as of YE14, up 55% vs. 2010, according to a S&P Capital IQ group of US E&Ps. With oil prices more than cut in half, cash flow has plummeted, pushing overleveraged companies toward bankruptcy. Those to succumb include Sabine Oil & Gas and Quicksilver Resources. Small- and mid-cap upstream...
Aug 31, 2015
Offshore engineering legend Horton passes away at 87Best known as the inventor of the spar and the tension-leg platform, Edward Horton passed away Aug. 13 at the age of 87. Horton is credited with a number of offshore designs and innovations in use on oil and gas platforms around the globe.As vice president of Ocean Science & Engineering, Horton was a pivotal part of the development of the first floating production systems. After developing the world’s first TLP for Conoco in the North Sea in the early 1980s, Horton went on...
Aug 21, 2015
BPZ finds gas instead of oil at latest offshore Peru wellIn Peru’s offshore Block Z-1, BPZ Energy (51% WI, operator) and Pacific Rubiales (49%) failed to find oil at their latest Corvina field well. The well reached 2,356 m TD in water 65 m deep, and was intended to prove oil at a deeper level than is typical for the field. However, only 11 m of non-associated gas was found in the upper Zorritos, which previous wells had also found and flowed at rates of 20-40 MMcf/d. As a result, the failed oil well is now being considered for gas...
Apr 09, 2015
Dune & BPZ file for Chapter 11 after oil prices dry up dealsQuicksilver Resources joins a growing list of oil and gas companies filing for bankruptcy after being unable to execute strategic transactions in the current oil price environment. A week earlier, Houston-based Gulf Coast explorer Dune Energy filed for Chapter 11 relief after Eos Petro terminated a proposed acquisition of the company. About the same time, another Houston company launched bankruptcy proceedings: Peru-focused BPZ Resources. BPZ had initiated a strategic alternatives process in...
Mar 17, 2015
Who's Hot, Who's Not - February 19,2015Upgrades: • Anadarko Petroleum (APC/$88.74/$71.00/$113.51/$44.23B) from Hold to Buy by Stifel.• Apache (APA/$66.79/$54.34/$104.57/$24.03B) from Sell to Neutral by Bank of America/Merrill Lynch. • Callon Petroleum (CPE/$7.54/$4.09/$12.09/$410.89M) from Neutral to Accumulate by Global Hunter Securities. • Cameron (CAM/$48.59/$39.52/$74.89/$9.37B) from Equal-Weight to Overweight by Barclays. • Cheniere Energy (LNG/$46.15/$47.26/$85.00/$17.73B) from Sell to...
Feb 19, 2015
Latin America - January 28, 2015• BPZ Energy’s (51% WI, operator) Albacora A-27D development well in Peru’s offshore Block ZI reached 14,500 ft and is averaging 1,135 bopd and 3.7 MMcfd, which is being reinjected into the well due to the lack of a local commercial gas market. BPZ says the new well is producing better than previous ones due to additional pay zones being opened up in the Lower Zorritos sands. For the year 2014 production from Block Z1’s Corvina and Albacora fields averaged 5,055 bopd, up 83% from 2013’s output....
Jan 28, 2015
Global Marketplace - December 18, 2014• In hopes of addressing its liquidity gap, Houston-based Peru explorer BPZ Resources has engaged Houlihan Lokey Capital to assist it in a strategic alternatives process. BPZ has a US$59 million payment due March 15 on a 6.5% convertible note, which stands to deplete its cash reserves and jeopardize 2015 drilling. It owns 1.9 million net acres in Peru via its 51% WI in offshore Block Z-1 under development with Pacific Rubiales Energy and 100% WI in three onshore blocks. • Hawkley...
Dec 18, 2014
Who's Hot, Who's Not - December 12, 2014Upgrades: • Baker Hughes (BHI/$55.40/$47.51/$75.64/$24.91B) from Sector Perform to Outperform by Iberia.• Energy Transfer Partners (ETP/$61.47/$51.65/$69.66/$22.48B) from Neutral to Outperform by Robert Baird. • Emerge Energy Services (EMES/$46.65/$37.55/$145.71/$1.21B) from Sector Perform to Outperform by Robert Baird.• FMSA Holdings (FMSA/$7.20/$6.75/$16.98/$1.2B) from Sector Perform to Outperform by Robert Baird.• Hi-Crush Partners...
Dec 12, 2014
Who's Hot, Who's Not - July 11, 2014Upgrades:• Cimarex Energy Co. (XEC/$144.58/$68.89/$144.82/$12.42B) from Neutral to Buy by Global Hunter Securities.• Devon Energy (DVN/$79.40/$54.08/$80.63/$31.84B) from Hold to Buy by Citi Group.• Energen (EGN/$86.45/$54.79/$90.66/$6.27B) from Neutral to Accumulate by Global Hunter Securities.• Exterran Holdings (EXH/$43.66/$26.50/$45.90/$2.90B) from Sector Perform to Outperform by Howard Weil• Noble Energy (NE/$32.00/$28.67/$41.60/$8.14B) from Hold to...
Jul 11, 2014
People & Companies Briefs - March 16, 2016Beach Energy appointed former Drillsearch Energy chairman Jim McKerlie and non-executive director Phil Bainbridge to its board as non-executive directors after the merger of the two companies closed. Bainbridge is chairman of Sino Gas & Energy, having previously spent 23 years at BP and six at Oil Search. Belinda Robinson and Robert Cole resigned from the Beach board. Robinson is CEO of Universities Australia, and Cole was Beach’s managing director until October, when he resigned to deal...
Mar 16, 2016
Latin America Briefs - November 18, 2014• Madalena Energy's (35% WI) third horizontal well in the Coiron Amargo Block of the Neuquén Basin was drilled to nearly 12,000 ft, included a 1,480-ft lateral, and is flowing at a rate of 342 bopd and 566 Mcfd from the Sierras Blancas light oil reservoir within the Vaca Muerta. At Puesto Morales Field (100% WI) Madalena has completed a four-well recompletion program in the Loma Montosa Formation. Three of the four wells have been placed on production and the fourth well is expected to be on...
Nov 18, 2014