Regal Updates on Ukrainian Reserves

Regal Petroleum issued an update Monday on its reserves and resources in its onshore Ukrainian gas and condensate fields.

Regal reported that remaining reserves as of Dec. 31 2012 in the Visean reservoirs of its Mekhediviska-Golotvshinska (MEX-GOL) and Svyrydivske (SV) gas and condensate fields stood at 7.7 million barrels of oil equivalent of proved (1P) reserves, 31.6 MMboe of proved and probable (2P) reserves and 52.6 million barrels of proved, probable and possible (3P) reserves.

Contingent resources at the reservoirs were estimated at between 36.6 MMboe (1C) and 148.8 MMboe (3C).

Regal noted that there has been a "material reduction" in 1P and 2P reserves compared to estimates made in 2010 that showed them to be 40.9 MMboe and 151.3 MMboe respectively. The firm said that these reductions reflect lower expected recovery factors. However, it said that further development of the fields may result in future movement of contingent resources into reserves.

Regal said that independent petroleum consultants ERC Equipoise carried out the assessment for the remaining reserves and contingent resources.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Regal Updates on Ukrainian Reserves

Regal Petroleum issued an update Monday on its reserves and resources in its onshore Ukrainian gas and condensate fields.

Regal reported that remaining reserves as of Dec. 31 2012 in the Visean reservoirs of its Mekhediviska-Golotvshinska (MEX-GOL) and Svyrydivske (SV) gas and condensate fields stood at 7.7 million barrels of oil equivalent of proved (1P) reserves, 31.6 MMboe of proved and probable (2P) reserves and 52.6 million barrels of proved, probable and possible (3P) reserves.

Contingent resources at the reservoirs were estimated at between 36.6 MMboe (1C) and 148.8 MMboe (3C).

Regal noted that there has been a "material reduction" in 1P and 2P reserves compared to estimates made in 2010 that showed them to be 40.9 MMboe and 151.3 MMboe respectively. The firm said that these reductions reflect lower expected recovery factors. However, it said that further development of the fields may result in future movement of contingent resources into reserves.

Regal said that independent petroleum consultants ERC Equipoise carried out the assessment for the remaining reserves and contingent resources.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Japan to Study Ice Gas Reserves

Japan is planning a three-year study into how much methane hydrate, or "ice gas", it has within its territorial waters in the Japan Sea over the next three years, the country's trade and industry minister said Tuesday.

Japan will also continue to develop technologies to extract natural gas from undersea methane hydrate reserves with the aim of making commercialization of the process viable by as early as 2023, Minister of Economy, Trade and Industry Toshimitsu Motegi said Tuesday.

Methane hydrate is a compound in which a large amount of methane is trapped within a crystal structure made up of water, so forming a solid that is similar to ice.

Japan Oil, Gas and Metals National Corporation (JOGMEC) reported March 12 that it successfully extracted natural gas from methane hydrate deposits from under the seabed offshore Japan.

Dow Jones Newswires contributed to this article.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Japan to Study Ice Gas Reserves

Japan is planning a three-year study into how much methane hydrate, or "ice gas", it has within its territorial waters in the Japan Sea over the next three years, the country's trade and industry minister said Tuesday.

Japan will also continue to develop technologies to extract natural gas from undersea methane hydrate reserves with the aim of making commercialization of the process viable by as early as 2023, Minister of Economy, Trade and Industry Toshimitsu Motegi said Tuesday.

Methane hydrate is a compound in which a large amount of methane is trapped within a crystal structure made up of water, so forming a solid that is similar to ice.

Japan Oil, Gas and Metals National Corporation (JOGMEC) reported March 12 that it successfully extracted natural gas from methane hydrate deposits from under the seabed offshore Japan.

Dow Jones Newswires contributed to this article.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Japan to Study Ice Gas Reserves

Japan is planning a three-year study into how much methane hydrate, or "ice gas", it has within its territorial waters in the Japan Sea over the next three years, the country's trade and industry minister said Tuesday.

Japan will also continue to develop technologies to extract natural gas from undersea methane hydrate reserves with the aim of making commercialization of the process viable by as early as 2023, Minister of Economy, Trade and Industry Toshimitsu Motegi said Tuesday.

Methane hydrate is a compound in which a large amount of methane is trapped within a crystal structure made up of water, so forming a solid that is similar to ice.

Japan Oil, Gas and Metals National Corporation (JOGMEC) reported March 12 that it successfully extracted natural gas from methane hydrate deposits from under the seabed offshore Japan.

Dow Jones Newswires contributed to this article.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

TNK-BP Boosts Production, Reserves

Russia's TNK-BP reported results for 2012 Thursday in which the firm revealed that its oil and gas production increased by 1.8 percent during the year to 2,023 million barrels of oil equivalent per day. The firm said that its total proved reserves reach 9.8 billion barrels of oil equivalent, representing a 210-percent reserve replacement ratio.

Chief Financial Officer Jonathan Muir commented in a statement:

"We have been successfully moving our Yamal greenfields to the execution stage, with Suzunskoye the first field ready for launch and the Rospan natural gas project moving to Phase 1 full-field development."

Muir added that all of TNK-BP's international projects showed "positive momentum" with incremental production being achieved in Vietnam and Venezuela, along with gas discoveries in Brazil.

"We continue to focus on business fundamentals and bottom line enhancement and will carry out our operations safely and with minimum damage to the environment," he said.

The takeover of TNK-BP by Rosneft is scheduled to be complete by the end of this month now that the Russian state oil company has bought out BP and the Alfa-Access-Renova consortium, which together previously owned the business.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

TNK-BP Boosts Production, Reserves

Russia's TNK-BP reported results for 2012 Thursday in which the firm revealed that its oil and gas production increased by 1.8 percent during the year to 2,023 million barrels of oil equivalent per day. The firm said that its total proved reserves reach 9.8 billion barrels of oil equivalent, representing a 210-percent reserve replacement ratio.

Chief Financial Officer Jonathan Muir commented in a statement:

"We have been successfully moving our Yamal greenfields to the execution stage, with Suzunskoye the first field ready for launch and the Rospan natural gas project moving to Phase 1 full-field development."

Muir added that all of TNK-BP's international projects showed "positive momentum" with incremental production being achieved in Vietnam and Venezuela, along with gas discoveries in Brazil.

"We continue to focus on business fundamentals and bottom line enhancement and will carry out our operations safely and with minimum damage to the environment," he said.

The takeover of TNK-BP by Rosneft is scheduled to be complete by the end of this month now that the Russian state oil company has bought out BP and the Alfa-Access-Renova consortium, which together previously owned the business.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Pemex's Proven Oil Reserves Edge Up to 13.87 Billion Barrels

MEXICO CITY - Mexican President Enrique Pena Nieto announced Sunday that the nation's proven reserves of oil and gas rose slightly at the start of 2013 versus a year earlier to 13.87 billion barrels of crude-oil equivalent, while hinting that a coming energy reform proposal will include legal changes to "transform" the state-dominated industry.

Mr. Pena Nieto made the reserve announcement at a ceremony to mark the 75th anniversary of the expropriation of the oil industry from foreign owners, where he reiterated that the energy overhaul proposal--now being negotiated with lawmakers--will not privatize state oil monopoly Petroleos Mexicanos, or Pemex.

"Pemex will not be sold nor privatized; Pemex must be transformed," Mr. Pena Nieto said to the applause of unionized oil workers present at the ceremony at a Pemex refinery in central Mexico.

The Mexican president didn't given any details on the reform proposal, saying only that the industry needs more investment.

Administration officials have said the proposal will include measures to attract more private players, including international oil companies that could partner with Pemex on projects like drilling in the deep waters of the Gulf of Mexico, where Pemex has no commercial production.

Mexico's oil reserves are traditionally announced once a year at the expropriation ceremony and correspond to figures from the first of the calendar year. Mr. Pena Nieto said that Mexico's proven reserves would last about 10 years at current production rates.

In recent years, Pemex has been finding new oil each year about equal to production, meaning that for every barrel produced, another barrel has been found, so that overall reserves fluctuate little from year to year.

Proven reserves at the start of 2012 were 13.81 billion barrels of oil, Pemex said on its webpage, also equal to about 10 years of production at production rates at the time.

In a much broader measurement of oil reserves--proven, probable and possible, or 3P--Mr. Pena Nieto said the nation had 44.53 billion barrels of crude-oil equivalent at the beginning of the year, compared with the 43.84 billion barrels at the start of 2012.

Pemex's crude-oil production has fallen for eight consecutive years to about 2.55 million barrels a day in 2012 from around 3.4 million barrels in 2004.

Company officials have said new fields ramping up this year will end the string of declines, and early output numbers show that Pemex production has been higher so far this year than during the same time period last year.

Copyright (c) 2012 Dow Jones & Company, Inc.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Exillon Well Ahead of Growth Target for 2P Reserves

Onshore Russia-focused junior Exillon Energy reported an update Friday in which the firm highlighted that it was well ahead target when it comes to both production and reserves.

In the statement, Exillon CEO Mark Martin said:

"The three components of our growth strategy are to increase our production, EBITDA and reserves. Our production during 2012 grew by 45 percent, our EBITDA by 137 percent and our 2P reserves by 96 percent.

"Our target was to double our 2P reserves within three years. We have done this in one year."

Exillon reported that its total proved (1P) reserves increased by 56 percent in 2012 to 196 million barrels, while its proved plus probable (2P) reserves almost doubled to 520 million barrels from 265 million barrels at the end of 2011.

At Exillon's ETP II-III field at Timan-Pechora in northern Russia, 2P reserves increased by 110 percent to 107 million barrels. At the firm's EWS I field in Western Siberia, 2P reserves increased 75 percent to 180 million barrels.

Recent acquisitions by Exillon in Timan-Pechora added seven million barrels of 2P reserves, although they also added 95 million barrels of 3P reserves, said the firm.

Exillon said that it plans to drill 24 wells this year, which represents a 50-percent increase on the firm's 2012 drilling activity.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Exillon Well Ahead of Growth Target for 2P Reserves

Onshore Russia-focused junior Exillon Energy reported an update Friday in which the firm highlighted that it was well ahead target when it comes to both production and reserves.

In the statement, Exillon CEO Mark Martin said:

"The three components of our growth strategy are to increase our production, EBITDA and reserves. Our production during 2012 grew by 45 percent, our EBITDA by 137 percent and our 2P reserves by 96 percent.

"Our target was to double our 2P reserves within three years. We have done this in one year."

Exillon reported that its total proved (1P) reserves increased by 56 percent in 2012 to 196 million barrels, while its proved plus probable (2P) reserves almost doubled to 520 million barrels from 265 million barrels at the end of 2011.

At Exillon's ETP II-III field at Timan-Pechora in northern Russia, 2P reserves increased by 110 percent to 107 million barrels. At the firm's EWS I field in Western Siberia, 2P reserves increased 75 percent to 180 million barrels.

Recent acquisitions by Exillon in Timan-Pechora added seven million barrels of 2P reserves, although they also added 95 million barrels of 3P reserves, said the firm.

Exillon said that it plans to drill 24 wells this year, which represents a 50-percent increase on the firm's 2012 drilling activity.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Exillon Well Ahead of Growth Target for 2P Reserves

Onshore Russia-focused junior Exillon Energy reported an update Friday in which the firm highlighted that it was well ahead target when it comes to both production and reserves.

In the statement, Exillon CEO Mark Martin said:

"The three components of our growth strategy are to increase our production, EBITDA and reserves. Our production during 2012 grew by 45 percent, our EBITDA by 137 percent and our 2P reserves by 96 percent.

"Our target was to double our 2P reserves within three years. We have done this in one year."

Exillon reported that its total proved (1P) reserves increased by 56 percent in 2012 to 196 million barrels, while its proved plus probable (2P) reserves almost doubled to 520 million barrels from 265 million barrels at the end of 2011.

At Exillon's ETP II-III field at Timan-Pechora in northern Russia, 2P reserves increased by 110 percent to 107 million barrels. At the firm's EWS I field in Western Siberia, 2P reserves increased 75 percent to 180 million barrels.

Recent acquisitions by Exillon in Timan-Pechora added seven million barrels of 2P reserves, although they also added 95 million barrels of 3P reserves, said the firm.

Exillon said that it plans to drill 24 wells this year, which represents a 50-percent increase on the firm's 2012 drilling activity.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Otto Reports Reserves Increase at Galoc Field

Otto Energy Ltd. provided an update on remaining oil reserve balances at the Galoc oil field in the Philippines as at Jan. 1, 2013.

Otto announces updated attributable Galoc oil field 1P Reserves of 3.4 MMstb and 2P Reserves of 4.3 MMstb.Galoc has Reserves Replacement Ratio of 115 percent on the Proved basis and 98 percent on the Proved & Probable basis.Galoc oil field Reserves are expected to maintain production beyond 2020.Otto expects increased production volume from Galoc Phase II in 2H 2013.Galoc is one of three exploration events planned by Otto in CY2013 along with the Duhat-2 well and SC-55 prospect in the Philippines.

The operator of the Galoc oil field, Galoc Production Company WLL, is a wholly owned subsidiary of Otto. It has commissioned an annual review of remaining oil reserves from RISK, an independent consulting firm.

RISC has reviewed the Galoc oil field reserves in accordance with the SPE, WPC, AAPG and SPEE Petroleum Resource Management System definitions, guidelines and auditing standards.

The reported increases in reserves are attributable to better than expected reservoir performance to date and an extension of field life due to higher prevailing oil prices. The Galoc oil field is expected to remain in production beyond 2020 based on the Galoc Phase I and Phase II well configuration.

"Galoc continues to be a key asset for Otto, delivering valuable cashflow to fund future growth opportunities. I look forward to the delivery of continued reliable production from existing operations and increased production volume from Galoc Phase II in 2H 2013. I am proud of Otto's continued growth as an integrated exploration, development and production company focused on South East Asia and East Africa," Otto's Chief Executive Officer Gregor McNab sai.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Otto Reports Reserves Increase at Galoc Field

Otto Energy Ltd. provided an update on remaining oil reserve balances at the Galoc oil field in the Philippines as at Jan. 1, 2013.

Otto announces updated attributable Galoc oil field 1P Reserves of 3.4 MMstb and 2P Reserves of 4.3 MMstb.Galoc has Reserves Replacement Ratio of 115 percent on the Proved basis and 98 percent on the Proved & Probable basis.Galoc oil field Reserves are expected to maintain production beyond 2020.Otto expects increased production volume from Galoc Phase II in 2H 2013.Galoc is one of three exploration events planned by Otto in CY2013 along with the Duhat-2 well and SC-55 prospect in the Philippines.

The operator of the Galoc oil field, Galoc Production Company WLL, is a wholly owned subsidiary of Otto. It has commissioned an annual review of remaining oil reserves from RISK, an independent consulting firm.

RISC has reviewed the Galoc oil field reserves in accordance with the SPE, WPC, AAPG and SPEE Petroleum Resource Management System definitions, guidelines and auditing standards.

The reported increases in reserves are attributable to better than expected reservoir performance to date and an extension of field life due to higher prevailing oil prices. The Galoc oil field is expected to remain in production beyond 2020 based on the Galoc Phase I and Phase II well configuration.

"Galoc continues to be a key asset for Otto, delivering valuable cashflow to fund future growth opportunities. I look forward to the delivery of continued reliable production from existing operations and increased production volume from Galoc Phase II in 2H 2013. I am proud of Otto's continued growth as an integrated exploration, development and production company focused on South East Asia and East Africa," Otto's Chief Executive Officer Gregor McNab sai.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Bridge Saw 22% Increase in Reserves in 2012

Anglo-Norwegian junior explorer Bridge Energy reported Tuesday that it its 2P (proved plus probable) developed reserves increased to 3.26 million barrels of oil equivalent (MMboe) last year from 2.67 MMboe at the end of 2011, representing a reserve replacement ratio of 224 percent.

Bridge said that the net best estimate of contingent resource (2C) more than doubled to 66 MMboe at Dec. 31 2012 from 29 MMboe a year earlier. The firm said that 22 MMboe of its net 2C resources was added as a result of three successful discoveries out of four exploration wells drilled last year.

Bridge confirmed that its current portfolio includes 11 discoveries in the UK and four in Norway, and that it has interests in 12 licenses in the UK sector of the North Sea as well as 16 licenses in the Norwegian sector. These licenses contain 32 main prospects.

The reserves and resource report, prepared by independent consultancy AGR TRACS International, reflected an increase in contingent resources connected to the award of the Vulcan South license in 2012. The increased gas resources (some 12.3 MMboe) enables wider regional development options to be considered for the whole of the Vulcan Satellite area, said Bridge.

Bridge CEO Tom Reynolds commented in a statement:

"The recently completed reserves and resources report underlines the significant steps made by Bridge, through acquisition, development of our existing asset base and exploration success in 2012. The step change in the commercial resource base, coupled with progressing our development portfolio, provides for a very exciting growth phase for Bridge to build upon during 2013."

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Novatek Saw 32% Increase in Reserves during 2012

Russian independent gas producer Novatek reported Thursday strong growth in its proved reserves. Independent petroleum engineers DeGolyer & MacNaughton estimated that Novatek's proved reserves increased by 32 percent last year to 12.4 million barrels of oil equivalent.

Novatek added 3.4 billion barrels of oil equivalent of proved reserves, inclusive of 2012 production, and recorded a more than eightfold (842 percent) reserve replacement rate, it said. Total proved reserves of natural gas increased to 62.1 trillion cubic feet.

The company said that the increase in its reserves was due to successful exploration at its fields, production drilling, the inclusion of the Salmanovskoye and Geofizicheskoye fields that it acquired in 2011 into the reserve appraisal and the acquisition of a 49-percent stake in Nortgas (the holder of the license for the North Urengoyskoye field).

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Novatek Saw 32% Increase in Reserves during 2012

Russian independent gas producer Novatek reported Thursday strong growth in its proved reserves. Independent petroleum engineers DeGolyer & MacNaughton estimated that Novatek's proved reserves increased by 32 percent last year to 12.4 million barrels of oil equivalent.

Novatek added 3.4 billion barrels of oil equivalent of proved reserves, inclusive of 2012 production, and recorded a more than eightfold (842 percent) reserve replacement rate, it said. Total proved reserves of natural gas increased to 62.1 trillion cubic feet.

The company said that the increase in its reserves was due to successful exploration at its fields, production drilling, the inclusion of the Salmanovskoye and Geofizicheskoye fields that it acquired in 2011 into the reserve appraisal and the acquisition of a 49-percent stake in Nortgas (the holder of the license for the North Urengoyskoye field).

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

McMoRan Touts 'Sizable Reserves' at Sub-Salt, Ultra-Deep Trend

McMoRan Exploration Co. reported Wednesday that independent reserve engineers engaged for the sole account of McMoRan estimated proved, probable and possible oil and gas reserves of 546.7 billion cubic feet equivalent (Bcfe) gross (141.7 Bcfe net to McMoRan, including 12.9 Bcfe of net proved reserves) associated with interim results from the sands encountered above 24,000 feet in the Lineham Creek ultra-deep exploratory well located onshore South Louisiana. These are the first reserves to be booked in the sub-salt, ultra-deep trend. The well is currently drilling below 27,600 feet to evaluate the deeper primary objectives and has a proposed total depth of 29,000 feet. Development plans will be determined following completion of drilling and evaluation of the deeper objectives.

Co-Chairman, CEO and President of McMoRan James R. Moffett said, "These are the first of what we hope will be sizable reserves from the sub-salt, ultra deep trend onshore and in the shallow waters of the Gulf of Mexico. Indications of hydrocarbons shallower than 24,000 feet have positive implications for additional targets on trend within our portfolio. We look forward to results from ongoing drilling activities on the Lineham Creek structure and from the onshore Lomond North exploratory prospect currently being drilled."

Lineham Creek is located onshore in Cameron Parish, Louisiana. Chevron U.S.A. Inc., as operator of the well, holds a 50 percent working interest. McMoRan is participating for a 36 percent working interest. Other working interest owners include Energy XXI (9.0%) and W. A. "Tex" Moncrief Jr. (5.0%).

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

ExxonMobil Adds Reserves, Increases Proven Reserves Modestly

Exxon Mobil Corp. said Tuesday that in 2012 it added in reserves slightly more oil and gas than it produced, with the majority of the new reserves coming from oil-rich assets in North America.

The world's largest publicly-traded oil company said it added proven reserves totaling 1.8 billion oil-equivalent barrels, of which 1.4 billion barrels consisted of petroleum and other liquids, a sign that Exxon has been emphasizing oil exploration at the expense of its less profitable natural gas business.

Also, Exxon said it added more than 750 million oil equivalent barrels from the oil-rich Woodford and Bakken shale areas in North Dakota, which are among the fastest-growing oilfields in the world. About 600 million barrels of oil equivalent came from additions in Alberta and in offshore Canada.

The fact that most of the newfound energy padding the company's reserves comes from unconventional assets in North America underscores how the technological unleashing of massive resources from U.S. shale to Canada's oilsands has prompted global giants to shift their attention away from riskier overseas prospects.

Exxon has been criticized about its 2010 purchase of XTO Energy Inc., which made it the largest natural gas producer in the U.S. at a time when prices for the commodity plummeted amid a market glut.

At the end of last year, the majority of Exxon's reserves shifted to liquids--at 51%--up two percentage points. Natural gas, as a percentage of the company's reserves, was down two points at 49%, as Exxon replaced less natural gas than it produced.

Exxon added back in new reserves about 115% of the oil and gas it produced; the company said it's the 19th year in a row that it replaced the totality of its production. Excluding the impact of asset sales, reserve additions last year replaced 124% of output. Exxon's reserves at the end of 2012 totaled 25.2 billion barrels of oil equivalent, up from 24.9 billion at year-end 2011.

Adding new reserves in sufficient quantity is a major challenge for the biggest oil companies, which produce prodigious amounts of energy and need to find rare prospects that are big enough to make a difference in their portfolio. Exxon's reserve replacement was the best among its peers, followed by Chevron Corp. with 112% and by Total SA with 93%, say analysts with UBS.

Copyright (c) 2012 Dow Jones & Company, Inc.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

ExxonMobil Adds Reserves, Increases Proven Reserves Modestly

Exxon Mobil Corp. said Tuesday that in 2012 it added in reserves slightly more oil and gas than it produced, with the majority of the new reserves coming from oil-rich assets in North America.

The world's largest publicly-traded oil company said it added proven reserves totaling 1.8 billion oil-equivalent barrels, of which 1.4 billion barrels consisted of petroleum and other liquids, a sign that Exxon has been emphasizing oil exploration at the expense of its less profitable natural gas business.

Also, Exxon said it added more than 750 million oil equivalent barrels from the oil-rich Woodford and Bakken shale areas in North Dakota, which are among the fastest-growing oilfields in the world. About 600 million barrels of oil equivalent came from additions in Alberta and in offshore Canada.

The fact that most of the newfound energy padding the company's reserves comes from unconventional assets in North America underscores how the technological unleashing of massive resources from U.S. shale to Canada's oilsands has prompted global giants to shift their attention away from riskier overseas prospects.

Exxon has been criticized about its 2010 purchase of XTO Energy Inc., which made it the largest natural gas producer in the U.S. at a time when prices for the commodity plummeted amid a market glut.

At the end of last year, the majority of Exxon's reserves shifted to liquids--at 51%--up two percentage points. Natural gas, as a percentage of the company's reserves, was down two points at 49%, as Exxon replaced less natural gas than it produced.

Exxon added back in new reserves about 115% of the oil and gas it produced; the company said it's the 19th year in a row that it replaced the totality of its production. Excluding the impact of asset sales, reserve additions last year replaced 124% of output. Exxon's reserves at the end of 2012 totaled 25.2 billion barrels of oil equivalent, up from 24.9 billion at year-end 2011.

Adding new reserves in sufficient quantity is a major challenge for the biggest oil companies, which produce prodigious amounts of energy and need to find rare prospects that are big enough to make a difference in their portfolio. Exxon's reserve replacement was the best among its peers, followed by Chevron Corp. with 112% and by Total SA with 93%, say analysts with UBS.

Copyright (c) 2012 Dow Jones & Company, Inc.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

JKX Upgrades Elizavetovskoye Reserves

JKX Oil & Gas announced Monday that it has seen an upgrade to the remaining reserves for its Elizavetovskoye field near Poltava, Ukraine. The reserves have been revised upwards to 22 billion cubic feet of gas (3.7 million barrels of oil equivalent) with a further 22 million barrels of net prospective resources in the license.

JKX said the revisions have followed long-term testing of the legacy East Machesvska 53 (M-53) well under a joint production agreement (JPA) between JKX and the well owner and former operator of the field. The reserves revision is based on mapping and material balance data from the M-53 well and other wells on the field.

JKX acquired the Elizavetovskoye license in November 2004 and finalized the JPA for the three legacy wells on the license in late 2011. In April 2012, JKX restored the M-53 well to production and now receives 33 percent of the production from it. It currently flows at 2.7 million cubic feet of gas per day on a restricted choke.

The firm is now proceeding with a five-well development of the license, with the spudding of the first new well scheduled for middle of this year. First gas is anticipated in 4Q 2013.

JKX Chief Executive Dr Paul Davies commented in a statement:

"We are very pleased that the data collected from our joint activity with the Ukrainian state production company has demonstrated both the materiality of the 2P reserves and the significant prospective resources on our Elizavetovskoye licence."

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here