SES - Chesapeake Energy Highlights - July 2, 2020On June 28, Chesapeake Energy filed voluntary petitions for reorganization under the Chapter 11 bankruptcy code. Concurrently, the company entered into a restructuring support agreement with 100% of the lenders under its revolving credit facility, holders of about 87% of the obligations under its term loan agreement, 60% of its senior secured second-lien notes due 2025, and 27% of its senior unsecured notes, pursuant to which Chesapeake will implement a plan to eliminate about $7 billion of...
Jul 02, 2020
SES - Talos Energy Highlights - July 2, 2020Following a $640 million acquisition completed in February, Talos Energy announced a $65 million cashand-stock deal to acquire additional stakes in 16 of its new properties, including operatorship of 11. The definitive agreement was signed with an affiliate of Riverstone portfolio company Castex Energy, one of three sellers in the previous deal. The new assets from Castex Energy 2005, all located on the GOM shelf, have estimated proved reserves of 17.6 MMboe (66% PD) and production of 38.4...
Jul 02, 2020
MCS - Tapstone taps Osage & Meramec in Dewey-focused program - July 1, 2020Tapstone Energy conducted a Mississippian-focused development program last year, primarily in Dewey County, Oklahoma. Of 23 completions by the company during 2019, 21 were in that county, while the other two were in Woodward County. Enverus’ DI Landing Zone analysis suggests targets in the Meramec and Osage. Effective lateral lengths for the Dewey horizontals averaged 8,298 ft and frac loads were 1,022 lb per perforated lateral ft. During 24-hour tests, the wells averaged 748 boe/d (52% oil),...
Jul 01, 2020
OFS - Fed: 16% of execs believe US activity will never fully recover - July 2020Oilfield services companies paid the highest price of a historic Q2 downturn, according to results from the Federal Reserve Bank of Dallas quarterly survey. Respondents also indicated that they don’t expect the oilpatch downturn to be a short one. In fact, one out of six predicted US drilling and completions activity will never return to where it was before the coronavirus pandemic. The business activity index for oilfield services firms plunged to -73.5 in Q2 from -46.3 in Q1. The...
Jul 01, 2020
OFS - Covia enters bankruptcy with rival Hi-Crush likely to follow - July 2020Covia filed for Chapter 11 bankruptcy reorganization on June 29, the latest of several dark days for the depressed proppant sector. Hi-Crush Inc., an early mover into mining West Texas for frac sand, expects to enter bankruptcy after defaulting on its asset-based loan facility. Another frac sand provider, Vista Proppants and Logistics, entered Chapter 11 in early June (PG.9). Covia, which is based in Independence, Ohio, said it has reached a prepackaged deal that will reduce debt and...
Jul 01, 2020
OFS - BHP selects trio to provide pre-FEED of Trion field FSO unit - July 2020Altera Infrastructure, BW Offshore and SBM Offshore have been selected by BHP to deliver a pre-FEED study for a floating storage and offloading unit for the Trion field in the deepwater Gulf of Mexico off Mexico. Financial terms were not disclosed. “By engaging with the selected contractors now, we’re better enabled to optimize the design, and contracting and execution strategies for the FSO delivery,” BHP petroleum operations president Geraldine Slattery said. The studies were awarded...
Jul 01, 2020
OFS - Good riddance to Q2, but will US activity ever be the same? - July 2020A quarter no one in the services sector will forget—no matter how much they want to—has come to an end. What’s left is the cleanup—brutal earnings reports, bankruptcies, depressed activity and day rates. A significant number of executives think this downturn will never be entirely over. The Dallas Fed’s quarterly energy survey found 16% believe US drilling and completions activity will never fully rebound to pre-coronavirus levels. Another 39% said it will happen in 2022 or later...
Jul 01, 2020
OFS - McDermott finishes structures & pipelines project off Malaysia - July 2020McDermott International completed the Pan Malaysia transportation and installation projects located off Miri, Malaysia, for Sarawak Shell Berhad and SapuraOMV. Awarded in November 2018, the projects included the transport and installation of jackets, topsides and pipelines for the Gorek, Larak and Bakong gas fields. McDermott’s vessel, the Derrick Barge 30, was used to install the structures and pipelines, including the longest corrosion-resistant alloy pipeline in Malaysia....
Jul 01, 2020
OFS - Energy Recovery breaks up with SLB, will grow VorTeq by itsel - July 2020Five years into a 15-year agreement, Energy Recovery’s licensing deal for Schlumberger’s exclusive use of the VorTeq hydraulic pumping system has ended. The breakup leaves Energy Recovery fully responsible for global commercialization of the VorTeq technology. “At this time, the two parties have different strategic perspectives as to the path to VorTeq commercialization,” Energy Recovery CEO Robert Mao said in a June 29 press release. VorTeq is designed to extend the pump life by diverting...
Jul 01, 2020
OFS - KBR’s energy business will exit EPC contracts to calm investors - July 2020KBR will slash its energy business, leaving lump-sum engineering, procurement and construction projects as it focuses on more stable government contracts. The announcement would remove a leading player in LNG projects. “We are exiting the blue-collar construction and lump sum EPC areas within our energy business, and this includes lump sum EPC as it relates to LNG,” CEO Stuart Bradie said during a June 16 investor presentation. Specifics on how KBR intends to accomplish this will wait...
Jul 01, 2020
OFS - Oceaneering to feel effects of downturn beyond 2021 - July 2020Oceaneering expects subsea tree awards to be down 50% and the number of offshore greenfield FIDs to fall 70% in 2020 from 2019. The FID decline is also skewed toward large projects, with expected capex falling 85%. These cutbacks will affect the offshore engineering industry in 2021 and beyond. The offshore decline in liquids output is expected to be in line with land cutbacks, with offshore barrels forecast to remain nearly 30% of global production in 2021. Oceaneering expects to...
Jul 01, 2020
OFS - Maersk Drilling to assist Danish carbon capture consortium - July 2020Maersk Drilling is joining a carbon capture and storage consortium that looks to reuse discontinued offshore oil and gas fields off Denmark for permanent CO2 storage. Formed by Ineos Oil & Gas Denmark and Wintershall Dea, the consortium looks to enable CO2 captured in onshore facilities to be transported offshore for injection and storage just over a mile beneath the seabed. The consortium is maturing one of the most progressed projects, a plan to have a well ready to inject CO2...
Jul 01, 2020
WS - Bonanza Creek to venture north & east for 2021 delineation - June 30, 2020With 2020 drilling and completion activity put on ice in Q1, Bonanza Creek Energy is looking to 2021. The Weld County, Colorado-focused company and offset operators have expanded the Wattenberg field core to the north and east using modern completions. For 2021, Bonanza Creek plans delineation activity on its northern acreage near its successful Whitetail A-4 Niobrara well, which it says is trending above the type curve, and on its eastern acreage. The company will also start development work...
Jun 30, 2020
WS - PDC adding Wattenberg DUCs, suspending completions until Q4 - June 30, 2020PDC Energy significantly scaled back its Wattenberg field plans for 2020. Capex guidance was lowered by $300 million to $450 million, a 40% cut. The number of wells to be spudded was reduced by 40% to 100 from a previously planned 165. Lateral lengths will average 8,900 ft. After dropping from three active rigs, the company will run one through year’s end. The number of planned completions was slashed 45% to 120 from 220. Well costs are expected to average $2.5 million for 1-mile laterals and...
Jun 30, 2020
OFS - Finance Briefs - July 1, 2020Petroteq Energy will swap 3,333,333 common shares to satisfy $100,000 owed to a creditor as it saves cash for use on its extraction technology in Asphalt Ridge, Utah. The company also amended three convertible debentures and three warrants issued between July 2019 and October 2019. The conversion price applicable to the $650,000 purchase price of $780,000 in convertible debentures went from $0.17, $0.19 and $0.21 to $0.037. The exercise price of three warrants for up to 3,444,639 common shares...
Jul 01, 2020