Shell Looks Set for Bab Sour-Gas Contract

ABU DHABI - State-run Abu Dhabi National Oil Co., or Adnoc, said that Royal Dutch Shell PLC has "good standing" in its bid to operate the Bab sour-gas field, the firm's director general Abdulla al-Suwaidi said Monday. 

The company has shortlisted Shell and France's Total SA for the estimated $10 billion deal, but is yet to make an official announcement on the winner. 

"Shell has good standing... in a couple of weeks we will pick one of them," Mr. Suwaidi told reporters in Abu Dhabi. 

Industry sources have said that Shell won the bid, after the two firms presented competitive offers. The main difference between the two bids was their approach in handling the massive amounts of sulfur produced at the field. 

The Bab field, once developed, will produce between 500 million cubic feet and 800 million cubic feet of gas per day, but expertise is required to handle the large amounts of sulfur generated from the estimated 15% hydrogen sulfide content of the gas. 

Shell has recommended exporting the sulfur, while Total submitted a proposal to reinject the sulfur back into the reservoir. 

The deal needs to be signed off by the emirate's highest oil authority, the Supreme Petroleum Council – which includes the most senior leaders in the emirate.

Copyright (c) 2013 Dow Jones & Company, Inc.

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Abraxas Looks Ahead to 2013 Production Ops

Abraxas Petroleum Corporation provided the following operational and acquisitions and divestitures (A&D) update.

In McMullen County, the Corvette C 1H averaged 867 barrels of oil equivalent per day (boepd) (808 barrels of oil per day (bopd) 355 million cubic feet (Mcf) of natural gas per day) on a 22/64" choke over its first 30 days of production. The Corvette C 1H continues to flow to sales at a rate of 586 boepd (547 bopd, 233 Mcf of natural gas per day) on a 22/64" choke. The Gran Torino A 1H was recently completed with a 19 stage completion and is currently flowing to sales at rates above the Company's type curve. Abraxas successfully completed the Mustang 3H with an 18 stage fracture stimulation with flowback expected to commence imminently. The Company recently drilled Mustang 2H to a total depth of 15,021 feet with an anticipated fracture stimulation date in April. Abraxas owns a 25 percent working interest in the Corvette C 1H and an 18.75 percent working interest in the Gran Torino A 1H, Mustang 3H and Mustang 2H.

Drilling continues on the Company's Lillibridge East PAD with intermediate casing set on the 1H, 2H, 3H and 4H. The Company recently drilled and cased the lateral on the 4H with a 50 foot flare encountered while drilling. The rig is now preparing to spud the lateral of the 3H, which will be followed by the 2H and 1H. Abraxas owns a working interest of approximately 34 percent in the Lillibridge East PAD. As previously announced, the Ravin 2H and Ravin 3H were recently completed with the Ravin 2H performing in line and the Ravin 3H outperforming the Company's type curve. Abraxas owns a 49 percent working interest in both the Ravin 2H and 3H.

The Company recently drilled and cased two shallow Yates wells, the Wilkes #1 and Wilkes #2, in Ward County, Texas. Early logs are encouraging, and Abraxas expects to complete the wells in April. Abraxas owns a 100 percent working interest in both wells.

Abraxas recently sold a portion of the Company's properties in Oklahoma and Louisiana as well as scattered royalty interests in North Dakota and Montana at the March 2013 Oil and Gas Clearinghouse Auction for gross proceeds of approximately $2.9 million. Combined, the properties sold produce 27.5 barrels of oil per day and 220.7 Mcf of natural gas per day. The remainder of the Company's Oklahoma properties and additional North Dakota royalty interests are scheduled to be offered at the May 2013 Oil and Gas Clearinghouse Auction. The marketing process led by E-Spectrum Advisors for Abraxas' non-operated Bakken and Three Forks assets is under way.

Bob Watson, President and CEO of Abraxas, commented: "Strong production volumes in February and early March, along with incremental well performance and the efficiency gains in the Eagle Ford, give us confidence in our 2013 guidance of 4,900-5,200 boepd on a $70 million CAPEX budget. With the Corvette C 1H, Abraxas completed its fourth high rate oil well in the Eagle Ford significantly above expectations. The Ravin 2H and Ravin 3H are flowing to sales at encouraging rates after we experienced significant completion issues and delays due to a third party. Furthermore, we continue to make progress in our efforts to refocus our portfolio and delever our balance sheet, with the non-op Bakken sale process starting in earnest as well as the recent sale of several non-core properties in Oklahoma, Louisiana and scattered royalty interests in North Dakota and Montana. We look forward to updating the market as we continue to execute against our strategic priorities and continue to enhance shareholder value."

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Abraxas Looks Ahead to 2013 Production Ops

Abraxas Petroleum Corporation provided the following operational and acquisitions and divestitures (A&D) update.

In McMullen County, the Corvette C 1H averaged 867 barrels of oil equivalent per day (boepd) (808 barrels of oil per day (bopd) 355 million cubic feet (Mcf) of natural gas per day) on a 22/64" choke over its first 30 days of production. The Corvette C 1H continues to flow to sales at a rate of 586 boepd (547 bopd, 233 Mcf of natural gas per day) on a 22/64" choke. The Gran Torino A 1H was recently completed with a 19 stage completion and is currently flowing to sales at rates above the Company's type curve. Abraxas successfully completed the Mustang 3H with an 18 stage fracture stimulation with flowback expected to commence imminently. The Company recently drilled Mustang 2H to a total depth of 15,021 feet with an anticipated fracture stimulation date in April. Abraxas owns a 25 percent working interest in the Corvette C 1H and an 18.75 percent working interest in the Gran Torino A 1H, Mustang 3H and Mustang 2H.

Drilling continues on the Company's Lillibridge East PAD with intermediate casing set on the 1H, 2H, 3H and 4H. The Company recently drilled and cased the lateral on the 4H with a 50 foot flare encountered while drilling. The rig is now preparing to spud the lateral of the 3H, which will be followed by the 2H and 1H. Abraxas owns a working interest of approximately 34 percent in the Lillibridge East PAD. As previously announced, the Ravin 2H and Ravin 3H were recently completed with the Ravin 2H performing in line and the Ravin 3H outperforming the Company's type curve. Abraxas owns a 49 percent working interest in both the Ravin 2H and 3H.

The Company recently drilled and cased two shallow Yates wells, the Wilkes #1 and Wilkes #2, in Ward County, Texas. Early logs are encouraging, and Abraxas expects to complete the wells in April. Abraxas owns a 100 percent working interest in both wells.

Abraxas recently sold a portion of the Company's properties in Oklahoma and Louisiana as well as scattered royalty interests in North Dakota and Montana at the March 2013 Oil and Gas Clearinghouse Auction for gross proceeds of approximately $2.9 million. Combined, the properties sold produce 27.5 barrels of oil per day and 220.7 Mcf of natural gas per day. The remainder of the Company's Oklahoma properties and additional North Dakota royalty interests are scheduled to be offered at the May 2013 Oil and Gas Clearinghouse Auction. The marketing process led by E-Spectrum Advisors for Abraxas' non-operated Bakken and Three Forks assets is under way.

Bob Watson, President and CEO of Abraxas, commented: "Strong production volumes in February and early March, along with incremental well performance and the efficiency gains in the Eagle Ford, give us confidence in our 2013 guidance of 4,900-5,200 boepd on a $70 million CAPEX budget. With the Corvette C 1H, Abraxas completed its fourth high rate oil well in the Eagle Ford significantly above expectations. The Ravin 2H and Ravin 3H are flowing to sales at encouraging rates after we experienced significant completion issues and delays due to a third party. Furthermore, we continue to make progress in our efforts to refocus our portfolio and delever our balance sheet, with the non-op Bakken sale process starting in earnest as well as the recent sale of several non-core properties in Oklahoma, Louisiana and scattered royalty interests in North Dakota and Montana. We look forward to updating the market as we continue to execute against our strategic priorities and continue to enhance shareholder value."

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Linc Looks to Start Shale Oil Production Works in the Arckaringa Basin

Linc Energy revealed Wednesday that it will be moving into production drilling in the Arckaringa Basin, following two independent reports confirming the presence of shale oil in the onshore basin, South Australia.

A report prepared by Gustavson estimated that the Stuart Range, Boorthanna and Pre-Permian unconventional reservoirs could hold unrisked prospective resources of up to 233 billion barrels of oil equivalent (boe), while a separate report by DeGolyer and MacNaughton (D&M) estimated that the region could hold unrisked prospective resources of up to 103 billion boe.

"These conclusions presented by Gustavson and D&M are consistent with [our] view that formations within the Arckaringa Basin have excellent resource play potential with total organic carbon levels, permeability, porosity and thickness that compare favorably to prolific U.S. plays such as the Bakken and Eagle Ford," Linc said in its disclosure.

"The estimates provide strong encouragement that the balance of the basin may also be prospective for conventional hydrocarbon deposits and suggests that additional work on conventional resource potential is justified," Linc added.

The company has appointed Barclays Bank for advice on strategic options, including the introduction of an experienced shale operator to joint venture the development of this shale play. Linc's Managing Director Peter Bond told Rigzone Wednesday in an interview that the company will take around six months to identify a suitable operator.

"We are keen to work with both international and local partners, especially Asian partners," Bond said. 

After selecting a partner, Bond intends to develop the company's assets in the Arckaringa Basin through the drilling of both exploration and production wells. The company is also exploring the possibility of doing horizontal drilling in its permits. 

Linc, through its wholly owned subsidiary SAPEX, currently holds seven petroleum licenses that cover a total of 21,224 square miles (54,970 square kilometers) in the 31,000 square miles Arckaringa Basin. Linc has also obtained approval for an additional petroleum license that would add another 3,649 square miles to the area of interest.

Quintella has reported on the upstream and downstream oil and petrochemicals markets from 2004. Email Quintella at quintella.koh@rigzone.com.

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Denver teen shot, killed, family looks for answers

Font ResizeCops and CourtsBy Tom McGhee
The Denver Postdenverpost.comPosted: 12/17/2012 10:46:10 AM MSTDecember 18, 2012 12:11 AM GMTUpdated: 12/17/2012 05:11:37 PM MST


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