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ROGTEC Magazine - Russian Oil & Gas Technologies - News, Reviews & Articles

International Petroleum Quarterly Update and Review

Friday, July 29th, 2011

Krasnoleninskiy Licence Area – Western Siberia, Russia

The Company, through its wholly-owned subsidiary IPL Siberia Ltd, owns a 75% equity interest in Souville Investments Ltd (“Souville”). Souville is the 100% legal and beneficial holder of Irtysh-Neft, a Russian company having exploration rights to four blocks in Western Siberia (“Krasnoleninskiy Project”). Assuryan Assets Ltd holds the remaining 25% interest in Souville and, by extension, the Krasnoleninskiy Project. The four blocks comprising the Krasnoleninskiy Project cover a total area of 1,467 km² and are located in the Khanty-Mansiysk Region in Western Siberia, the largest oil-producing region of Russia.

In late December 2010, a turn-key drilling contract with Pravdinskaya Expedition LLP was signed for the drilling of two wells, one on each of Blocks 7 and 8 of the Krasnoleninskiy Project. Preparation of winter access roads and well site construction commenced in January 2011, and mobilisation of drilling rigs and other service equipment followed on schedule.

During April 2011, the Company commenced drilling both Well No. 1 and Well No. 2 at Blocks 7 and 8 respectively using two separate drilling rigs. Well No. 1 and Well No. 2 had target depths of 2,850 metres and 2,930 metres respectively, to investigate formations ranging in age from Cretaceous down through the weathered crust of the Paleozoic. The final depths of 2,845 metres and 2,909 metres for Well No. 1 and Well No. 2 were reached by the end of May 2011 and oil was discovered in core from multiple intervals in both wells.

During June 2011, the Company completed its internal interpretation of the electrical logging results from Well No. 1 and Well No. 2 and the interpretation of the electrical logging performed on both wells indicated that the Bazhenov and Tyumen suites are oil-bearing.

The interpretation discounts sections that, although may be oil-bearing in the core, are not expected to contribute during production due to their low permeability.

The Company commenced an extensive testing programme in Well No. 1 during June 2011 and in Well No. 2 during July 2011. Production casing has been installed and cemented in both wells, and the Company is currently carrying out extensive testing of all zones.

The 1,467 km² area comprising the Company’s four licence blocks has been extensively surveyed by 2,446 line-kilometres of closely-spaced 2D seismic data, which identified more than thirty prospects, including five “superstructures”. Within these superstructures, there are a number of potential reservoirs, ranging in age from Paleozoic to Cretaceous, stacked upon each other, offering the potential of multiple producingzones in a single well. In a report to evaluate the hydrocarbon resource potential dated 12 May 2011, Ryder Scott Company-Canada, an independent oil and gas consultant (“Ryder Scott”), estimated the unrisked prospective (undiscovered recoverable) resources of the four blocks at 169 (Low Estimate), 260 (Best Estimate) and 385 (High Estimate) million barrels. Based on the undiscovered unrisked resource estimates and scoping type resource economic evaluation reports from Ryder Scott and the oil shows in Well No. 1 and Well No. 2, the Company believes that the Krasnoleninskiy Project has significant exploration potential.

The current approved work program requires the drilling of two wells on the Krasnoleninskiy blocks by 30 June 2012 and the drilling of two additional wells by 30 December 2012 (“Current Work Program”). The Company satisfied the first part of this requirement by drilling Wells No. 1 and No. 2 during 2011 and plans to satisfy the second part of the Current Work Program by drilling Wells No. 3 and No. 4 during the first half of 2012.

Alakol Licence Area – Republic of Kazakhstan

The Company, through its wholly owned subsidiary North Caspian Petroleum Ltd, operates and owns a 50% interest in subsoil use rights for the exploration of hydrocarbons in an early stage project in eastern Kazakhstan, bordering the western boundary of the People’s Republic of China (“Alakol Licence Area” or “Kazakhstan Project”). Remas Corporation LLP, a privately owned Kazakhstan company, holds the remaining 50% interest.

Based on an independent seismic interpretation that was completed early in 2011, incorporating the results from drilling three wells, the Company decided to focus on drilling for the thick Mesozoic sediments that were encountered in Well A-3, in areas away from the possible effects of metamorphism, where it is believed reservoir-quality formations could be present.

During June 2011, the Company commenced drilling at Well A-8 of its Kazakhstan Project. Well A-8 is the fourth well to be drilled in the licence area of the Kazakhstan Project and has a target depth of 2,000 metres and a budgeted cost of US$4million.

Artesian wells in the area are associated with oil seeps and films of oil, proving the Alakol Basin has generated hydrocarbons. Seismic data indicates that potential Jurassic and Triassic reservoirs are present as stratigraphic traps on the flanks of Paleozoic-age volcanic intrusions or basement highs.

In a report to evaluate the hydrocarbon resource potential dated 6 June 2011, Ryder Scott estimated the unrisked prospective (undiscovered recoverable) resources at 935 (Low Estimate), 1,379 (Best Estimate) and 1,980 (High Estimate) million barrels. Based on the undiscovered unrisked resource estimates
from Ryder Scott, the Company believes that the Kazakhstan Project has an exploration potential of 1.4 billion barrels (Best Estimate) and plans to drill one other exploration well, in addition to Well A-8, by the end of 2011.

Additionally, a 3D seismic program of up to 500 km² is planned, contingent on positive drill results from either of the first two wells in the new Mesozoic drilling program. The 3D seismic study (if completed) will allow for immediate movement towards an appraisal drilling program in 2012.

Source www.internationalpetroleum.com.au



Victoria Oil and Gas Application for Share Listing

Friday, July 29th, 2011

Victoria Oil & Gas Plc, the AIM quoted oil and gas exploration and production company with assets in Cameroon and the FSU, announces the Company has drawn down a further £600,000 of its £10 million Standby Equity Distribution Agreement (‘SEDA’) with YA Global Master SPV Ltd (‘YA’), announced by the Company on 17 June 2009. Under the terms of the SEDA, the Company has allotted, conditional on admission, 14,690,827 ordinary shares of 0.5 pence each in VOG to YA at a price of 4.08 pence per share. This price is calculated by a formula under the terms of the SEDA based on the prevailing market price.

Following this drawdown, an application has been made to the London Stock Exchange for 14,690,827 ordinary shares to be admitted to trading on AIM and it is expected that admission will occur at 8.00 a.m. on 1 August 2011. Following admission, the Company will have 2,153,531,098 ordinary shares in issue. The new ordinary shares will rank pari passu in all respects with the existing ordinary shares.

Source www.victoriaoilandgas.com



International exhibitors add to growth of this year’s Caspian Oil & Gas show

Thursday, July 28th, 2011

The 2011 Caspian Oil & Gas Exhibition took place 7-10 June at the Baku Expo Center, in Azerbaijan. The adjoining conference was held on 8-9 June at the Hyatt Regency Hotel in Baku.

This year, the Caspian Oil & Gas exhibition benefitted from a healthy 14% growth in show space compared with 2010. This can be attributed to the influx of international exhibitors, who comprised nearly half of the total exhibition space. The event brought together participants from 30 countries, which saw 60% more countries than last year. 12% of exhibitors were new to the show.

Recently ranked 53 of 183 economies by the World Bank in 2011 for „ease of doing business‟, Azerbaijan‟s increasing presence of foreign companies in the local oil and gas sector is welcomed by the country‟s President, HE Ilham Aliyev.

During the opening ceremony of the exhibition, he commented: “I am very happy to see that interest in this exhibition increases from year to year. This is an excellent sign and testifies to the fact that, despite the implementation of major investment projects in Azerbaijan in previous years, the interest of foreign investors in our country‟s oil and gas sector has not lessened. The reason for this is the long-term nature of our oil strategy.”

Presentations made by a host of international government representatives at the opening reflects the importance of Azerbaijan as a major player in the global oil and gas community. Distinguished speakers included Richard Morningstar, US Secretary of State‟s Special Envoy for Eurasian Energy; Gunther Oettinger, European Commissioner for Energy, H.R.H. Crown Prince Haakon of Norway, and Alexander Khetaguri, the Georgian Energy Minister.
Messages of support from the leaders of America, Great Britain, Turkey and the EU were also relayed at the opening.

Tamam Bayatly, Communications Manager, BP Azerbaijan commented: “The Caspian Oil & Gas show is a very good opportunity for investors in Azerbaijan, to understand what it is like to do business here to international standards, to find partners and to network. New exhibitors can also find other local and international companies in the region to do business with in order to enter the market. In this way, the Caspian Oil & Gas exhibition creates opportunities for new comers and for those companies who have already established their business here.”

Source www.caspianoil-gas.com



TNK-BP Reports Strong Financial and Production Growth

Thursday, July 28th, 2011

Commenting on the results, Mikhail Fridman, Executive Chairman of TNK-BP Ltd., said:

“This was an exceptional first half performance for TNK-BP. Thanks to management’s continuous efforts to enhance operational efficiency and further develop our key business streams, the Company was able to deliver robust results. We have increased production, significantly expanded our resource base and nearly doubled net profit for the period. Growing our international business is a key priority for TNK-BP and we’ve made great progress thus far in 2011 by closing the deal to acquire BP’s upstream assets in Venezuela and identifying several additional acquisition targets abroad.”

1H11 OPERATIONAL HIGHLIGHTS

· In 1H11, oil and gas production (excluding JVs) continued to grow and reached 1,765 mboe/d, up 1.2% on 1H10. This growth was primarily driven by further production increases at our producing greenfields, Uvat and Verkhnechonskoye, and also by continued success in developing our Orenburg fields as well as increasing gas production at Rospan. We have developed and started implementation of a long-term West Siberia efficiency improvement program targeting a decrease in the annual production decline rate from the current 7% to approximately 2-3% per year.

· We have made good progress in our exploration and appraisal program aimed at growing the company’s resource base. Over 200 million boe of resources were added in 1H11 through exploration and appraisal. We have also demonstrated our ability to obtain new acreage by successfully acquiring 3 licenses through the federal auctions in the Orenburg region with estimated resources of 149 million boe.

· On the international front, we have closed the acquisition of upstream assets from BP in Venezuela in June, while the Vietnam deal close is expected in 3Q pending approval by the Vietnamese Ministry of Industry and Trade. We will now focus on the integration of these assets into our portfolio and ensuring their operational and financial efficiency. We have also just announced the signing of a Farm-out Agreement with Brazilian Petra Energia for the acquisition of a 45% stake in 21 blocks in the Brazilian Solimoes Basin. We hope to have the necessary agreements finalized before the end of August.

· Refining throughput was at 761 mb/d, increasing 11% y-o-y as a result of continuing debottlenecking efforts.

· We have progressed with expansion of our retail chain by opening the first two new-format highway service stations under the BP brand in Tver region within the framework of our long-term retail business development strategy. Opening these new service stations is the first step in implementing a strategy to develop highway retail sites in the European part of Russia. The operations of the sites have been very successful with initial fuel sale volumes exceeding the plan by 2-3 times.

· We also continued to reinforce our position in B2B by signing a long-term formula-based jet fuel supply agreement signed with Transaero Airlines, in line with the company’s strategy to strengthen its presence in Russia’s jet fuel market and increase transparency of fuel sales.

· Finally on the corporate side, we have embarked on an important initiative of improving the organizational structure of our business, led by Deputy Chairman of the Management Board, Maxim Barskiy. This involves switching from an asset-based management system, where local management has both wide functional and operational responsibility, to a functional governance model (or matrix model), with clear segregation of functions and more streamlined decision making. The first practical steps of this transition were the integration of Technology and Supply Chain Management streams into Upstream, as well as development and enactment of the new Delegation of Authority Matrix. The new organizational structure will improve decision-making, focus local management on its area of expertise, and improve our competitive advantage, as we continue our transformation into a global oil and gas player.

Commenting on the financial results, Jonathan Muir, Chief Financial Officer of TNK-BP Ltd., said:

“In the first half 2011, TNK-BP continued to demonstrate strong financial results, supported by a favorable market environment, sustainable production growth and refinery throughput improvement. EBITDA increased by 59% y-o-y to USD 7.4 bn, underpinned by a 42% rise in the oil price, partially offset by cost increases due to higher excise rates, rising electricity and transportation tariffs, and continuing rouble appreciation. Our net income increased by 87% y-o-y to USD 4.5 bn on the back of EBITDA growth. Healthy cash flows from operations allowed us to raise organic capital expenditure by 33% y-o-y to USD 2.2 bn with particular focus on our key growth assets: Uvat, Verkhnechonskoye and Orenburg. Our financial discipline remained strong with good cash flow and successful debt portfolio management giving us the flexibility to pursue strategic inorganic opportunities.

1H11 FINANCIAL HIGHLIGHTS

· Revenues for 1H11 increased by 41% relative to 1H10 reflecting a 42% higher Urals price and 21 mboe/d (1.2%) production growth partly offset by a decrease of export sales in favor of the domestic market to avail of higher netbacks.

· Export duties and taxes other than income tax increased by 38% for 1H11 relative to 1H10 as a result of the impact of higher Urals prices on export duty and mineral extraction tax rates as well as the growth in excise rates in Russia partly offset by a significant duty lag benefit.

· Underlying materials, service and payroll inflation on cash costs amounted to only 4% year-on-year. However, electricity and transport tariff growth inflated cash costs by 8%. Rouble appreciation added 4% year-on-year. In addition, a one-off increase on an environmental provision in 2Q11 related to reassessment of some legacy issues increased costs by 3%.

· EBITDA for 1H11 amounted to USD 7.4 bn which is 59% higher compared to 1H10 largely due to the higher prices and duty lag benefit supported on the operations side by higher production and sales volumes. These positive factors were partly offset by a negative exchange rate impact as well as tariff and excise rates growth.

· 1H11 Net income amounted to USD 4.5 bn which is 87% up on the same period of 2010. This increase outpaced the EBITDA growth primarily due to relatively flat DD&A.

· Operating cash flow for 1H11 totaled USD 5.9 bn, up 51% compared to 1H10. This is a reflection of the higher EBITDA (adjusted for non-cash provisions), partly offset by a USD 0.5 bn increase in working capital primarily due to a price-driven growth in inventory and accounts receivable balances.

· Net debt increased by USD 0.6 bn compared to year end 2010 resulting in gearing growing to 22%.

· Organic capital investment in 1H11 amounted to USD 2.2 bn, 33% above 1H10, largely associated with increased investments in our growth greenfields (VCNG, Uvat) and Orenburg.

2Q11 RESULTS

· Revenues for 2Q11 increased by 11% relative to 1Q, reflecting primarily the increase in Urals price.

· Export duties and other taxes increased 20% q-o-q driven by a 12% increase from the price effect on export duties and MET and a decrease in duty lag benefit in 2Q, partly offset by the effect of lower export sales volumes.

· Cash costs (operating expenses, transportation and SG&A) increased by 15% largely due to rouble appreciation, increase in wellwork, contracting and other activities compared to a seasonally slower 1Q as well as increased environmental provisions.

· EBITDA for 2Q11 was 12% lower compared to 1Q. The most significant reason is the decrease of duty lag benefit further exacerbated by price-driven growth in duties, taxes and costs of purchases that effectively eliminated all q-o-q benefit of higher prices on revenues. Other factors include a comparative negative impact of one-offs – disposal gains in 1Q and higher provisions in 2Q, as well as rouble appreciation and increased spending on well-work together with annual wages and salary indexation and Moscow offices relocation cost.

· 2Q11 Net Income decreased by 14%, generally following the EBITDA trend.

· Operating cash flow in 2Q increased by 55% compared to 1Q attributed primarily to lower working capital. This is mainly due to a comparative USD 1.3 bn reduction in accounts receivable balances driven by a general decrease of trade accounts receivable due to lower crude export sales in June as well as shorter receivables collection terms.

· Organic capital investments were $0.4bn higher than in 1Q11, representing primarily a seasonally higher activity level.

· Compared to the 2Q 2010 results, 2Q 2011 EBITDA and net income increased by 45% and 81%, respectively. This reflects a stronger external environment with the Urals price increasing by 48% and a higher duty lag benefit supported by an increase in trading volumes and an improvement in trading mix, including in particular a 6% higher share of refined products. These positive factors were partly offset by the effect of a stronger rouble and inflationary pressure on costs and a USD 0.1 bn comparative net loss related to one-off impacts.

The financial information shown in this press release relates to TNK-BP International Ltd.

source www.tnk-bp.com



Caspian Oil and Gas July Quarterly Update

Thursday, July 28th, 2011

Caspian Oil and GAs has issued its July 2011 Quarterly reports covering its operations in the Kyrgyz Republic and the West Mailisu wells.

Kyrgyz Republic

 West Mailisu #2 well on Caspian’s 100%-owned West Mailisu licence spudded on 13 June
 Well is adjacent to the Mailisu IV oil and gas field, which has produced 42mmbbls oil to date
 Good shows in Bed II over the interval 1691-1697m
 Intermediate casing point set at 1713m with first primary target sandstone Bed III (1740m) expected to be penetrated in late July
 Charvak Block seismic reprocessed – a total of 241km has been undertaken to date Romania
 Awaiting ministerial signature on Parta Licence Agreement – expected in 4th quarter 2011

September quarter plans

 A follow-up well to West Mailisu #2 will be considered if the results justify it
 Planning for the acquisition of up to 120km of 2D seismic in Kyrgyz licences
 Ongoing search for additional central Asian opportunities

Kyrgyz Republic Projects

Background

Caspian Oil and Gas, through its subsidiaries, holds a number of licences in the Fergana Basin, giving it a significant exploration position in the Kyrgyz Republic in Central Asia.

West Mailisu #2

In June, the Company spudded the West Mailisu #2 well on its 100%-owned West Mailisu licence, which is adjacent to the Mailisu IV oil and gas field. Mailisu IV has produced 42mmbbls of oil to date. The well-site is located at the interpreted structural crest of a four-way dip-closure (see Figure 2).
The Company believes West Mailisu #2 has the potential for oil in Eocene-age sands and carbonates (beds III, V and VII) and gas in the Cretaceous and Jurassic-age sands. Prospective oil resources of up to 9.7mmbbls (mean 4.5mmbbls) had been calculated for the Eocene reservoirs.

Prospective gas resources of 5-10bcf are mapped in the Cretaceous or Jurassic reservoirs, although West Mailisu #2 was planned to test only the upper Cretaceous sands, due to depth limitations of the rig. The targeted feature is defined by a NW-SE trending reverse fault on the northern flank. Seismic sections across the structure indicate a robust closure (see figures 3 and 4). Caspian plans to target oil and gas potential in
the deeper Cretaceous and Jurassic age sands in a follow-up well, should West Mailisu #2 be successful.

West Mailisu #2 spudded on 13 June 2011, using Caspian’s own rig. Surface casing was set at 20m, 9 5/8-inch casing was set at 350m and intermediate 7 inch casing set at 1713m.

By late July the rig was drilling through the primary targets, Beds III, V and VII, on its way to the target depth of 2000m. Good oil shows were recorded over a six metre interval in Bed II (1691-1697m). The commerciality of this unexpected discovery has not been assessed, but the presence of oil in Bed II increases the likelihood of closures occurring in Beds III, V and VII.

Source www.caspainogl.com.au



The Sixth International Energy Week Moscow Energy Dialogue

Wednesday, July 27th, 2011

The Sixth International Energy Week “Moscow Energy Dialogue” (“IEW,2011”) will be hosted on October 24-25, 2011, in Moscow, at the World Trade Center, with the support of  the Ministry of Energy of the Russian Federation, the Ministry of Foreign Affairs of the Russian Federation and the Ministry of Natural Resources and Environment of the Russian Federation.

The International Energy Week takes place inMoscowevery year. The heads and experts of the largest international organizations, including International Energy Agency (IEA), OPEC, International Energy Forum (IEF), EU, International Gas Union (IGU), International Organization of Nuclear Energy (IONE), Business Council and Energy club of the Shanghai Cooperation Organization (SCO), heads and experts of Energy Ministries of foreign Countries, scientists and representatives of leading scientific organizations and energy companies of the world.

Co-organizers of the Forum: the Chamber of Commerce and Industry of the Russian Federation, the Russian Academy of Sciences, the Fund “Global Energy” and the ICC “Roscon”.

The Forum will be focused on the international dialogue for the development of international energy infrastructure intersections on the territory of theRussian Federationand foreign countries applying cutting-edge energy technologies.

Major attention will be paid to the discussion of energy efficiency enhancement global practice on the energy efficiency enhancement and stimulation of the Russian economy energy sector transition to accelerated innovative development, as well as energy security and preservation programs development and implementation.

The heads of the companies, experts and specialists are expected to have business meeting, reports and presentations.

Contacts: + 7 499 480 0502/0157/0666, Fax: + 7 499 480 0190.

E-mail:    iew2011@mail.ru iew2011@mail.ru

Url:          www.ros-con.ru

Пресс-служба: media.iew@mail.ru

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Baker Hughes Fractures its First Unconventional Shale Well in Argentina

Wednesday, July 27th, 2011

Project awarded to Baker Hughes based on unconventional hydrocarbon capabilities and performance

Baker Hughes (NYSE: BHI) announced it has completed its first unconventional hydrocarbon shale hydraulic fracturing and stimulation project in Argentina for YPF in the Neuquén basin.

The multistage fracturing operation was performed using over 12,000 hydraulic horsepower and a total fluid volume exceeding 7,000 cubic meters. Baker Hughes also provided coiled tubing services for the project. The firm was awarded the job based on its capabilities and performance in unconventional hydrocarbon plays.

YPF is currently evaluating the well results to determine the potential for expanding its operations. Several operators are developing and executing exploration plans in Argentina’s unconventional hydrocarbon plays. Currently, Baker Hughes has the largest available hydraulic fracturing horsepower capability in Argentina and is well positioned with assets, people and technology to support the growing unconventional hydrocarbon activity.

“While the bulk of unconventional shale activity has been in the U.S., interest in shale plays in other parts of the world are beginning to expand and indications are that Argentina will be a promising area for international success,” says Rod Larson, president of Latin American operations for Baker Hughes. “We are positioning our operations in Latin America to support this new market and we are leveraging our capabilities and lessons learned in the U.S. to help operators in Argentina develop the country’s unconventional resources.” Baker Hughes has been active in Argentina for more than 50 years.

Source www.bakerhughes.com 



Tethys Petroleum Limited: Doris AKD05 Well Flows at over 2,000 barrels per day

Wednesday, July 27th, 2011

Tethys Petroleum Limited today announced that following acidisation its AKD05 Doris appraisal well in Kazakhstan has flowed some 2,088 barrels of fluid per day, of which 1,568 barrels per day was good quality (45 degrees API) oil. The well flowed with good surface pressures and the flow was limited by the surface facilities. Flow data indicate that the well would be capable of flowing around 3,000 barrels per day with reconfiguration of the production facilities.

The well is producing from the same Upper Jurassic carbonate sequence, which was also productive in the AKD01 Doris discovery well. Following reconfiguration of the surface facilities the well will be placed on long-term test production. The well is already tied into the Doris oil production facilities and the oil will be trucked for sale along with oil from the AKD01 well.

Mark Sarssam, Vice President Petroleum Development of Tethys commented, “The acidisation on the AKD05 well has proved to be very successful with a production increase of more than three times. We have a well, which has the indications of being a good oil producer from this laterally extensive carbonate reservoir. The reservoir characteristics appear good, the oil of good quality and the data from the long-term production test should give us a much better idea as to the size of this reservoir. This is a good result!”

Preparations are underway for the drilling of the next Doris appraisal well, AKD06, which should commence drilling before the end of this month.

Tethys also updated on the status of other operations in Kazakhstan. The final phase of testing of the AKD04 (Dero) is now complete having tested further thin sands primarily to gain pressure and additional reservoir data for future appraisal planning. As anticipated no commercial oil flow was obtained from these thin sands.

The Kalypso (KBD01) wildcat exploration well, which is targeting primarily a large potential structural closure at Carboniferous level, is currently at a depth of 3,354 metres and is drilling ahead. The planned total depth of this well is between 4,000 and 4,500 metres and it is expected that this will be reached in August.

Additional technical information

The AKD05 well flowed at a stable rate of 1,568 barrels of oil per day (“bopd”) on a 25.4 mm (1 inch) choke from an 18 metre gross interval at a depth of c.2,350 metres. The flowing tubing head pressure was 19 atmospheres (275 psig). The Upper Jurassic carbonate interval is present across the area and is a good seismic marker on the new 3D dataset. The AKD01 Doris discovery well flowed 1,373 bopd from the same interval with a FTHP of 14.2 atmospheres (209 psig) on the same size choke.

Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republics of Tajikistan, Kazakhstan and Uzbekistan. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.

Source www.tethypetroleum.com



Polarcus Q2 report and presentation

Tuesday, July 26th, 2011

Polarcus Limited is pleased to announce the release of its second quarter 2011 financial statements.

In the second quarter 2011 Polarcus has focused on strengthening the Company’s operations, backlog and balance sheet. Revenues for the second quarter are significantly higher compared to the same quarter last year due to the expansion of the Polarcus fleet by three vessels over the interim period. EBITDA margin of 25.4% in the second quarter 2011 is likewise up from 18.5% versus the same quarter last year.

Rolf Ronningen, CEO Polarcus, commented: “As a consequence of the technical improvement plan announced in the first quarter we have seen a much improved performance and lower technical downtime across the fleet despite some continuing severe weather in the early part of the quarter. The subsequent announcement of our first 3D and 4D contracts for a Supermajor is a very welcome endorsement of our technical competiveness in the marketplace. Last but not least the USD 410 million bank loan facility announced on 21 July will significantly strengthen our balance sheet and improve our financial health at this important juncture in our growth.”

Highlights in the second quarter 2011:

•           Revenue of USD 65.8 million, EBITDA of USD 16.7 million, and EBIT of USD 2.9 million, with five vessels in operation. Positive net cash flow from operating activities of USD 4.74 million.

•           Option exercised for POLARCUS SELMA after raising USD 125 million in a convertible bond with a coupon of 2.875% and a conversion premium of 32.5%. The vessel will be delivered in August 2011.

•           Vessel backlog extended well into Q4, including first 3D and 4D contract with a Supermajor.

•           The newbuild program for POLARCUS AMANI and POLARCUS ADIRA continues on schedule and on budget. The two new 12-14 streamer vessels are being built by Ulstein Verft AS and will be delivered in Q1 and Q2 2012.

Subsequent important events:

•           On 21 July 2011, the company announced the signature of a term sheet for a bank loan facility of USD 410 million with DnB NOR Bank ASA and DVB Bank SE, Nordic Branch, together with Garanti-instituttet for Eksportkreditt (GIEK) and Eksportfinans ASA. The facility is offered at attractive terms and significantly improves the Company’s financial position and flexibility going forward.

Source www.polarcus.com



TGS Announces Second Expansion of 3D Multi-client Seismic Data Library in the Barents Sea

Tuesday, July 26th, 2011

TGS has commenced the acquisition of an extension of its multi-client 3D seismic data in the Hoop Fault Complex area of the Barents Sea.  This extension is to the west of the previously announced industry funded Hoop Fault Complex survey and will add 3,391 km2 to the existing data in the area.   Upon completion of the expanded project, TGS will have over 7,300 km2 of contiguous multi-client 3D data over the Hoop Fault Complex.  In conjunction with this multi-client survey, TGS will also acquire approximately 1,100 km2 of seismic data on a proprietary basis for a TGS customer.

Acquisition of the data will be performed by the M/V Polar Duke towing 10 x 6,000 m streamers with 75 m cable separation and acquisition is scheduled to complete during early Q4 2011.  Data processing will be performed by TGS and will be available to clients from Q2 2012.

Source www.tgsnopec.com







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