PS - Conoco’s Eagle Ford completions show consistency in H1 - June 2020Since the beginning of the year, ConocoPhillips has reported more than 50 completions in the Eagle Ford to Texas regulators. The wells were spread across DeWitt, Karnes, Live Oak and McMullen counties. The top-performing well by IP24 was completed in DeWitt County in January. The Korth Unit B#2 was completed with an 8,361-ft effective lateral fracked with 23.8 MMlb of proppant (2,845 lb/ft). During a 24-hour test, the well flowed 2,060 boe/d (88% oil), or 246 boe/d per 1,000 lateral ft,...
Jun 24, 2020
IS - Exxon reportedly plans to revive UK North Sea sale process - June 2020ExxonMobil plans to relaunch the sale process for its UK North Sea assets after low oil prices and the coronavirus pandemic led the supermajor to postpone the effort earlier this year, unnamed sources told Reuters for a June 11 report. The divestment is expected to bring in $1-1.5 billion, less than the more than $2 billion that sources said Exxon was seeking when it launched the marketing process late last year with Jefferies. The supermajor has recently held discussions with several...
Jun 22, 2020
IS - CNOOC brings another oil project online in China’s Bohai Bay - June 2020CNOOC Ltd. began production from first phase of its shallow-water Qinhuangdao
33-1S oil field in China’s west-central Bohai Bay. The field is being produced via a newly
built wellhead platform in 21-meter water depth. The project, which CNOOC operates with
100% WI, will ultimately involve nine production wells and four water injectors.
Expected peak output of 6,000 bo/d starting in 2021 will bring existing facilities
at the Qinhuangdao 33-1 and Qinhuangdao 32-6 oil fields to full...
Jun 22, 2020
STS - Conoco's H1 Eagle Ford completions show consistency - June 18, 2020Since the beginning of the year, ConocoPhillips has reported more than 50 completions in the Eagle Ford to Texas regulators. The wells were spread across DeWitt, Karnes, Live Oak and McMullen counties. The top-performing well by IP24 was completed in DeWitt County in January. The Korth Unit B#2 was completed with an 8,361-ft effective lateral fracked with 23.8 MMlb of proppant (2,845 lb/ft). During a 24-hour test, the well flowed 2,060 boe/d (88% oil), or 246 boe/d per 1,000 lateral ft,...
Jun 18, 2020
A&D - Conoco clinches $1.46B northern Australia sale to Santos - June 2020ConocoPhillips completed the $1.46 billion sale of its assets in northern Australia and Timor Leste on May 27 to Australia’s Santos Ltd. The companies restructured payments so that $125 million of the originally announced $1.39 billion upfront cash will instead be due upon the recently deferred FID for the Barossa gas condensate development off Australia’s Northern Territory. That brings the total due upon FID to $200 million. Conoco said it has received net cash proceeds of $765 million in Q2,...
Jun 12, 2020
A&D - Eni reportedly puts Australia natural gas portfolio on market - June 2020Eni has retained investment bank Citi to shop its gas assets in Australia in a deal that could be valued at up to $1 billion, according to a May 15 Reuters report. The Italian company hopes to raise cash to help it weather the market downturn. Eni holds an operated 100% WI in the Blacktip gas project off the Northern Territory and its connected Yelcherr gas plant. It owns 11% WI in the Bayu Undan gas and condensate field and the connected Darwin LNG facility, both of which are operated...
Jun 12, 2020
A&D - Analyst Notes - June 12, 2020ConocoPhillips (COP; $44.67-May 27; Buy; PT-$46) Q2 has now included the completion of COP’s sale of its Australia-West assets. The total transaction value is unchanged, with the revision being that $125MM of the original $1.39B upfront cash proceeds will be further allocated to the payment to COP upon FID of the proposed Barossa project (now $200MM total), which is to replace Bayu-Undan once field life expires as the source field for Darwin LNG. With an effective date of 1/1/19, net...
Jun 12, 2020
A&D - People & Companies - June 12, 2020ExxonMobil announced that Steve Greenlee, the president of ExxonMobil Upstream Business Development Co., will retire July 1 after over 38 years of service. The board has appointed Linda DuCharme as his replacement and elected her VP of ExxonMobil. She will retain her current position as president of ExxonMobil Upstream Integrated Solutions Co. BPX Energy CEO David C. Lawler has been appointed chairman and president of BP America Inc, succeeding Susan Dio. ConocoPhillips EVP and...
Jun 12, 2020
OFS - Blockchain consortium claims success in Bakken water system - June 2020A consortium of 10 leading E&P companies completed its first pilot leveraging blockchain technology. The Offshore Operators Committee Oil & Gas Blockchain Consortium said the project produced a platform for automating produced water haulage from field reading to invoice payment. “This is just the tip of the iceberg for the potential of blockchain in our industry,” consortium chairman Rebecca Hofmann said. The pilot, developed in partnership with Data Gumbo and utilizing its GumboNet...
Jun 10, 2020
CM - ConocoPhillips adds cash to coffers via sale of Aussie assets - June 2020ConocoPhillips said it had received about $765 million in cash this quarter from the sale of its northern Australia and Timor Leste assets to Santos Ltd. It closed the deal, valued at $1.465 billion in total, on May 27. However, the companies restructured payments so that $125 million of the $1.39 billion upfront cash will be due upon the recently deferred FID for the Barossa gas condensate development. The restructured payment will bring the total due to Conoco upon FID to $200 million....
Jun 05, 2020
CM - People & Companies - June 5, 2020Chaparral Energy announced the resignation of SVP and CFO Scott Pittman and will conduct a search to fill the vacancy. Current controller Stephanie A. Carnes was assigned the CFO role on an interim basis. Senior director of corporate finance Patrick Graham will serve as the primary investor contact. VP of geoscience Mark Ver Hoeve is retiring. ConocoPhillips named William Bullock, Jr. EVP and CFO effective Sept. 1, succeeding the retiring Don Wallette, Jr. Bullock is currently Asia...
Jun 05, 2020
PS - US E&Ps execute significant Q2 oil curtailments - June 2020The coronavirus pandemic has resulted in unprecedented demand destruction for oil markets. The International Energy Agency projects that global demand will fall by a record 9.3 MMbo/d in 2020. In the middle of the lockdown, April demand was down 29 MMbo/d YOY. In response to greatly oversupplied oil markets, OPEC+ agreed in mid-April to cut 9.7 MMbo/d in May and June. The IEA estimated that global output would fall 12 MMbo/d in May. Outside of the OPEC+ cuts, major and independent US producers...
Jun 03, 2020
PS - E&Ps narrow focus as WTI rules some plays uneconomic - June 2020Capex revisions, reductions in operational plans and curtailments continue to remain at the top of the news for E&P companies. WTI spot prices spent the last two weeks of May in a $32-$35 range, marking a notable improvement from April’s last two weeks, which saw negative to sub-$20 prices. Now in the last third of Q2, many industry watchers seem to feel like we’ve weathered the worst 2020 has to serve. Of course, we’ll all get to re-live the horrors of H1 in late July and August when Q2...
Jun 03, 2020
PS - People & Companies - June 3, 2020Abraxas Petroleum missed the deadline to file its Q1 results on May 11 and has filed for a 45 day extension with the SEC. The company’s operations have experienced disruptions because of the coronavirus, including office closures, communication issues between the company and its professional advisors and the unavailability of key personnel required to prepare financial statements. Abraxas has assets in the Williston and Permian basins. Battalion Oil board member and chairman of the...
Jun 03, 2020
IS - News Briefs - June 19, 2020Junior Alberta driller Highwood Oil further delineated its Clearwater play during Q1 with the drilling of four new wells in the Nipisi area and one at Craigend. The company has drilled 19 Clearwater wells since its program in the play began in 4Q18. Following successful secondary recovery pilots by offset operators, Highwood is now evaluating a potential waterflood project at Nipisi. It produced 1,872 bo/d during Q1, up 23% from 4Q19 and 38% YOY. Trans Mountain Corp. shut down its...
Jun 22, 2020