MIDSTREAM NEWS · 26-06-2009 · When REX becomes fully operational, the 1,679-mile pipeline Ewill...
Transcript of MIDSTREAM NEWS · 26-06-2009 · When REX becomes fully operational, the 1,679-mile pipeline Ewill...
LNG on the way to U.S. marketsRussian E&P is set to begin shipping as much as 1.5 BCFD of LNG to North
America by the end of this year, with more on the way long term, the firm’s managingdirector said recently at the GasMart 2009 conference and trade show in Chicago.
“We will begin marketing and trading in North America this year,” JohnHattenberger was quoted by the Natural Gas Intelligence Co. “Our goal is to be amajor trading company in North America. We expect to be marketing 3-5 BCFD
through 2020. Our vision is clear.When our LNG does come to NorthAmerica, we will have a huge supplyposition,” Hattenberger was reportedas saying by NGI.
Hattenberger, who also handled LNG for Marathon and El Paso, opened a Houstonoffice for Gazprom in 2006. It has yet to deliver any gas in the U.S., but an indication ofnear term potential was illustrated by Gazprom representatives appearing for the first timeas a sponsor in the GasMart Market Network Center alongside BP and ConocoPhillips.
By the end of this year Gazprom expects to see an additional 5.5 BCFD of LNGcapacity in the world market with around 1.4 BCFD of that targeted for North America.
Friday, June 26, 2009 | Volume 2, No. 8
MIDSTREAMNEWSServing the Midstream Marketplace with News, Insight & Opportunities
Exxon joins TransCanada in Alaska pipelineLatest on Alaskan gas coming to market
TransCanada Corp. has brought in ExxonMobil as a partner in its massive AlaskaPipeline Project. With an initial forecasted capital cost of $26 billion, the project will con-nect Alaska’s vast amounts of natural gas to new markets as far away as Chicago.
In November 2007, TransCanada and Foothills Pipe Lines Ltd. jointly sub-mitted an application under the Alaska Gas Inducement Act (AGIA) to build a4.5-BCFD, 48-inch gas pipeline running 1,700 miles from a new gas treatment
plant at Prudhoe Bay on Alaska’s NorthSlope to Alberta, Canada, with an LNGoption to deliver gas supplies to a lique-faction facility at Valdez.
In December 2008, TransCanadawas awarded the AGIA license and a $500 million state subsidy after prevailing in a com-petitive bid process and receiving the approval of the Alaska legislature. TransCanada hasmoved forward with project development, which includes engineering, environmentalreviews, Alaska Native and Canadian Aboriginal engagement, and commercial work toconclude with an initial binding open season by July 2010. CONTINUES on page 9
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The pipeline has a 2018 in servicedate, and is looking to unlock 35 TCF ofresource potential on the North Slope.
Gazprom eventually hopes to supply10% of U.S. gas consumption.
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TULSA CO., OK GATHERING SYSTEMShutIn Pipeline With Equipment. 10 Sq Miles.OKLAHOMA SYSTEMSignificant CBM Exploration Within Acreage.Shallow Coal Seam Gas Production.Low Pressure-Stripper Plant-Sales Lines.100% OPERATED WI FOR SALE CBMShutIn Pipeline: Raw Unleased Acreage PIPESuitable To: Production & Pipeline BuyerOptimal Scenario: Buy Pipeline & DrillSELLER HAS SOLID RIGHT OF WAYS
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Kinder Morgan completes Louisiana PipelineKinder Morgan Energy Partners recently completed the 133-mile Kinder
Morgan Louisiana Pipeline project. The 42-inch diameter line will transport gas tomultiple pipelines from the Cheniere Sabine Pass LNG terminal in Cameron Parish. All
of the 3.2 BCFD of capacity on the pipeline is subscribed by Chevron and Totalunder 20-year contracts.
This is the first of three largegas pipeline projects that Kinder
Morgan expects to complete this year.The final leg of Midcontinent ExpressPipeline is expected to be in service by August 1 and that the final leg of Rockies ExpressPipeline is expected to be in service by November 1. Both pipelines should help allevi-ate stranded gas in the Rockies as well as narrow regional differentials.
When REX becomes fully operational, the 1,679-mile pipeline will stretch fromColorado to eastern Ohio and will boast 1.8 BCFD of capacity. About 1,040 miles of REXare in service between Colorado and Missouri, transporting 1.6 BCFD. The 639-mileREX-East segment running from eastern Missouri to eastern Ohio is under construction.
MEP began interim service on a 266-mile section last April.
Kinder morgan hopes to complete theMidcontinent Express and RockiesExpress pipelines by November.
Exxon adds capacity atPiceance processing
ExxonMobil has completed new fieldprocessing capacity at its Piceance Project onthe western slope of the Rockies in Rio Blanco
Co., Colorado. The newfacilities have the capacity
to handle up to 200 MMCFD and include gasand liquid gathering systems, treating facili-ties, a produced-water pipeline and subsurfacedisposal system, and a condensate sales andtruck-loading site. Exxon has been producingin the Piceance Basin for nearly 50 years andis currently producing about 100 MMCFD.
“The key to unlocking the potential ofthis large, technically challenging resource isincreasing production and recovery rates fromeach well at lower cost,” said Rich Kruger,ExxonMobil Production Company president.
“We use proprietary technology to accessup to 50 gas-bearing zones in one well, whichwas unheard of just a few years ago,” saidExxonMobil’s Piceance Project Executive JimBranch. “We can drill up to 9 to 10 wells froma single pad. Each well can recover gas across20 acres below ground. The cost effectiveprocess produces substantially more gas fromthe many zones it can tap from each well.”
Enterprise Products Partners constructednew plant and pipeline facilities at thePiceance project to provide compression, treat-ing and conditioning services, which is deliv-ered to various pipeline transmission systemsthat serve the region.
The company is operating sevenrigs to recover a potential 45 TCFe.
MIDSTREAMNEWS Friday, June 26, 2009 2
Midstream Projects EAST TEXASEAST TEXAS GATHERING SYSTEM8-Mile Gas Pipeline.MARSHALL/HARRISON AREANear Penn Virginia Well.MultiPay East Texas Reservoirs. ETX PIPELINECotton Valley, Travis Peak.Haynesville Development Possible.Pipeline Capacity: 10,000 MCFDMultiple Line Right-Of-Way.High Pressure Line.Interconnects w/ Two Main ETX Lines.SUBJECT TO PRIOR SALECONTACT SELLER FOR MORE INFO
G 1425PL
HAYNESVILLE ACREAGE14,747-Gross, 5,400-Net Mineral Acres.FANNIN & LAMAR COUNTIESLands Contiguous With Good Access— to F.M. & County Roads. LEASE/SALEMINERALS FOR LEASE OR SALEMultiple Pipelines Transverse Acreage.OWNER/SELLER SEEKING OFFERS
RR 3926L
LEON CO., TX PROSPECT13,800-Gross & 11,800-Net Acres.Targeting Ponderosa Knowles Carbonate.Prospect Defined By 2-D Seismic Data.Analogous Fields Cumm’d ~100 TCFE.Potential Reserves: 747 BCF ~747 BCFUpside Exceeds 1.6 TCF.CALL PLS FOR DETAILED SHOWING
DV 6351
LIMESTONE CO., TX DISPOSAL WELL1-SWD.EAST TEXASCommercial Salt Water Disposal Facility.Single Well Facility/No Trucks.Permitted For 12,000 bls/d. TX/SWD100% OPERATED WI AVAILABLEMonthly Oil Sales: 180 MBO SWMonthly Skim Oil: 300 BOLast Reported Cash Flow: $50,000/MnCALL GENERATOR TO LEARN MORE
SWD 3965
Magnum targets new Rockies storage facilityMagnum Gas Storage has launched a non-binding open season for a proposed large-
scale, high-deliverability, multi-cycle salt cavern gas storage facility – the first of its kindin the western U.S.
The project, in central Utah, will offer customers customizable storage services thathelp balance the fluctuations of supply and demand. Magnum’s storage facility will inter-connect with multiple Rockies pipelines. The project will be directly connected by a newheader pipeline to the Kern River and Questar interstate pipelines at Goshen, Utah, and willindirectly serve the Opal, Wyoming, area market hub interconnections through backhauland displacement.
Magnum is initially developing two salt caverns through solution mining, each withworking gas capacity of 5.6 BCF. Based on current operational and tariff constraints onconnecting pipelines, the project will initially accepting injections of up to 0.30 BCFD andwithdrawals of up to 0.50 BCFD at Opal with 6-9 inventory turns projected annually.
The first salt cavern should open in early 2012. Depending upon shipper interest, thefacility has the potential to offer incremental injection and withdrawal capabilities to cus-tomers able to accept delivery at Goshen.
Bakersfield
Salt Lake City
Evanston
Fillmore
Las VegasLength: 1,600 milesCapacity: 1.7 BCFD
Kern River Gas launches Rockies open seasonKern River Gas Transmission Co. is holding a non-binding open season to
determine shipper interest in firm year-round transportation service from receiptpoints in Wyoming and Utah to delivery points into California. If sufficient interest is
demonstrated and Kern River decides to proceed, any resulting expansionservice would be available by 2013.
Kern River’s non-binding open season is being held simultaneouslywith Pacific Gas and Electric Company’s California Gas Transmission open season toexpand its Baja Path. The PG&E open season proposes to interconnect with the KernRiver/Mojave pipeline at a new interconnect in Arvin, California.
Kern River expects the most economically viable project to be delivery of200,000 Dth/d to the new Arvin interconnect and up to an additional 100,000 Dth/dto existing or new delivery points upstream of Arvin. The company said it may con-sider a larger expansion if supported by market interest.
The expansion is part of Kern River’s 1,680-mile interstate gas pipeline betweensouthwestern Wyoming and Southern California. The Salt Lake City-based companydelivers more than 1.7 BCFD to markets in Utah, Nevada and California. Kern Riveris a subsidiary of MidAmerican Energy Holdings Co.
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Friday, June 26, 2009 MIDSTREAMNEWS3
Enterprise secures San Juan right of way agreementEnterprise Products Partners signed a 20-year right-of-way agreement with the
Jicarilla Apache Nation that will allow the partnership to continue its gas gathering opera-tions on reservation lands in northwest New Mexico.
Enterprise has 545 miles of gathering lines on the lands connected its SanJuan Gathering system that have current throughput in excess of 30 MMCFD.Comprised of more than 6,000 miles of natural gas pipelines in New Mexico and
Colorado, the San Juan system gathers more than 1.0 BCFD.Included in the long-term contract are incentives that could lead to future expansion
of the gathering system on Jicarilla land.
EAST TEXASEAST TEXAS PROPERTY FOR SALE89-Active Wells.COTTON VALLEY OBJECTIVESTRAVIS PEAK and PETTIT 1.6 MMCFEDGreat Opportunity In Prolific Gas Area.Significant Behind Pipe Potential.Successful Ongoing Drilling Program.18.59% NonOp WI; 13.64% NRINet Production: 39 BOPD & 1,417 MCFDNet Cash Flow: $340,000/MnNet Proved Reserves: 85 MBO & 6.1 BCFEOperator Owns Solid Midstream OperationNo Preferential Rights.Future Undiscounted Cash Flow: $54 MMSTILL AVAILABLE THROUGH BURKS
PP 2046DV
RUSK CO., TX DEVELOPMENT6-Development Wells. 3,400-Acres.Obj 1: Travis PeakObj 2: Cotton Valley 138 BCFObj 3: Bossier Shale50% WI Available; 40% NRIField Production: 4,700 MCFDNet Production: 1,250 MCFDEstimated Net Reserves: 138 BCFInfrastructure In Place.CONTACT GENERATOR FOR DETAILS
DV 6444PP
SAN AUGUSTINE CO., TX LEASE~73,000-Net Mineral Acres.GULF COAST COAL BASINRights To Wilcox Base. 3,000 Ft.-5,200 Ft.10 Ft. - 20 Ft. Cumulative Coal.Mineral Rights For Lease. LEASE30 Pipeline Thru South End of Property.
L 9808DV
SHELBY CO., TX SALE PACKAGE3-Wells. ~5,017-Net Acres.CCB FIELDBOSSIER-HAYNESVILLE PLAY PP/DV/PLMultiPays: Cotton Valley, Travis Peak— and Deep Bossier100% OPERATED WI; 75% NRI5.97 Miles of 4 & 6 Pipeline.Surface Facility: Interconnect to GulfsouthAvailable For 3rd Party TransportationBROKER HAS UPDATE ON STATUS
PP 9297DV
LAMPASAS CO., TX WILDCAT1-Proposed Well.LAMPASAS RANCHObj 1: Strawn Formation. 900 Ft. ~1.0 BCFObj 2: Marble Falls. 2,500 Ft.SubSurface Geology & GeoPhysics.25% NonOperated WI; 75% NRIEst Reserves/Well: ~1.0 BCFAGENT WANTS OFFERS JUNE 25
DV 2318
Norex begins Alberta pipeline constructionNorthern Explorations was informed by the operator of the Southern Alberta Gas
Project that the company has begun constructing a pipeline to get production to market. Aspart of the project, Norex is also acquiring a 49% interest in a related gas processing andcompression facility, a gas pipeline, additional infrastructure and certain acreage. This proj-ect has been found to have the potential to contain over 8.0 BCF. The company also has theoption to obtain the remaining 51% from the owner over a 2 year period.
The most significant element to the acquisition and overall project developmententails the gas processing plant which was originally constructed in 2004. The plant is capa-ble of processing sour gas by a regenerative solution; it also has sweet gas compression, gasmetering and water storage.
Norex also acquires a network of five, six-inch gas pipelines that connect to a majortrunk line operated by EnCana and that extend towards three gas wells ready for tie-in. Thefinal permitting application process and licensing of the plant will be completed shortly.
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Boardwalk gains $150 million in private placementBoardwalk Pipeline Partners LP is selling 6.6 million newly issued common units
to Loews Corporation in a private placement at $21.99 per unit (the closing price of theunits on the NYSE on June 22) for aggregate proceeds of $147 million. The general part-
ner of Boardwalk will also contribute $3 million to maintain its 2% gen-eral partner interest for aggregate proceeds of $150 million.
Boardwalk Pipeline also announced that it has borrowed the remain-ing $100 million available under the $200 million subordinated loan facil-
ity with Loews which was announced in May 2009. Boardwalk Pipeline plans to use theproceeds from the private placement and the subordinated loan to fund a portion of the costof its expansion projects and reduce borrowings under its revolving credit facility.
Boardwalk’s Gulf Crossing Pipeline, Gulf South Pipeline and Texas GasTransmission total 14,200 miles of pipeline. Boardwalk also has underground storagefields with 160 BCF of working gas capacity.
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DCP Midstream opens Woodford processing facilitiesDCP Midstream LLC has opened new facilities servicing Anadarko-Woodford
Shale development in Oklahoma’s Blaine and Canadian Co. The installation of a new high-pressure booster, with associated gathering and discharge pipelines, is the first phase of
DCP’s continued development in central Oklahoma.The new facilities complement existing infrastructure. Initially, 15
MMCFD of capacity will be added and is easily expandable. The gaswill be delivered to DCP’s Okarche plant for processing and NGL extraction.
Earlier this month, the company announced the start of service of a new pipelineextension in East Texas with its joint venture partner, DCP Midstream Partners, LP, whichwill service traditional Cotton Valley wells and positions the company for the developmentof the Haynesville Shale. DCP Midstream has already made about a dozen well connects inthe area to support producers continuing to define the Haynesville formation.
MIDSTREAMNEWS Friday, June 26, 2009 4
NORTH TEXASLAMPASAS CO., TX PIPELINE12.5-Miles Pipeline Project Needed.COPPERAS COVEExcavation Has Begun. PROJECTCompletion Expected In 90 Days.SEEKING PROJECT PARTICIPANTS100% WI Possible For Pipeline.Active w/ New Production.Needs Max Capacity: 12 MMCFDPotential Cash Flow: $270,000/MnProved Reserves In Area.
G 6389PL
NORTH TEXAS PROSPECT SALE3-Proposed Wells. 200-Acres.JACK & PALO PINTO CO.Horizontal Opportunity On 2 Wells.Targeting Barnett Shale.Proposed Depth: 5,900 Ft. >20 BCFGeology, Geophysics, & Well Control.UpHole Potential Identified.75% NonOperated WI; 56.25% NRIFirst Well Completed.Est Reserves/Well: 2.0 BCFEst Reserves/Project: 20 - 25 BCF
DV 5727
PALO PINTO CO., TX PROJECT5-ReComplete. 5-Deepen/Frac. 1-SWD.BARNETT SHALE RECOMPLETION4-Leases. 563-Acres.Varying Shallow Depths <5,000 Ft.Big Saline & Strawn Potential Identified.Significant Behind Pipe Upside.SEEKING JV PARTNERS BARNETT/DVOperations Available To Right Partner.CALL PLS FOR MORE INFORMATION
DV 6408PP
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NeededPipelineProjectToday
SemGroup completes White Cliffs PipelineMay be forced to sell nearly $2.0 billion in assets
SemGroup LP has brought its White Cliffs Pipeline on stream. The 12-inch pipelinecarries crude oil 525 miles from Platteville, Colorado, to storage tanks owned and operatedby SemGroup at Cushing, Oklahoma. The pipeline is expected to meet rising demand for
moving crude from the Rockies to major U.S. markets via Cushing.Current capacity on the pipeline is 30,000 BOPD, and can be expanded to
more than 50,000 BOPD. The pipeline includes a 100,000 barrel tank atPlatteville to aggregate crude from theDJ Basin/Wattenberg area for shipmentto markets downstream.
White Cliffs Pipeline is indirectlyowned 99.17% by SemGroup LP, 0.415% by Anadarko Wattenberg, and 0.415% bySamedan Pipeline.
SemGroup LP – which fell into bankruptcy last summer after its CEO Terry Ronanmade a number of bad bets on the price of oil – is hoping to receive court and creditorapproval to exit Chapter 11 as a publicly traded company. If successful, SemGroup wouldretain its 1,000 employees and Tulsa headquarters, according to the Tulsa World.
Subsidiary SemCrude Pipeline was previously removed from its post as White Cliffsproject manager last summer after defaulting on a loan, but has since been reinstated aftergetting refinancing of the $120 million credit facility to partially fund the pipeline as partof the reorganization plan.
However, if SemGroup LP were forced into a Chapter 7 liquidation of all its assets, itcould generate proceeds of $1.5 billion and $1.77 billion for distributions to creditors,according to the company’s estimates. Meanwhile, the Chapter 11 exit plan, whichSemGroup filed earlier in June, estimated $2.27 billion in equity value for creditors ifSemGroup was allowed to emerge out of bankruptcy as a publicly traded company. Thecompany still owes back payments to a number of banks as well as regional E&P compa-nies, including as much as $30 million to Pioneer Natural Resources and $17.5 million toShell. Also on its 741-page list of creditors are Chesapeake Energy, Devon Energy andSandRidge Energy.
Meanwhile, the company’s ex-subsidiary, SemGroup Energy Partners LP, which hadannulled its asphalt storage contracts withSemGroup after the parent company failedto pay for past services, has now executed
new asphalt storage contracts with various other parties. As a result, SGLP now has 45 ofits 46 total asphalt facilities under a storage contract or lease agreement. The company alsohas agreements with 13 counterparties for its asphalt facilities with terms primarily extend-ing through 2011.
San Antonio-based NuStar Energy has leased three of the asphalt terminals, locatedin Saginaw, Texas; Gloucester City, New Jersey; and Newport News, Virginia, adding 1.5MMB of storage capacity to the company’s asphalt operations.
NuStar said the agreement will give it the opportunity to generate additional salesfrom the asphalt produced at its Paulsboro and Savannah refineries. SGLP will operate thefacilities under the storage agreements and the contract counterparties will operate thefacilities under the lease agreements. The new storage and lease contracts, however, willyield less revenues than those previously received under the Terminalling and StorageAgreement with SemGroup LP.
SGLP has 8.2 MMBO of storage in Oklahoma and Texas, plus 1,150 miles of crudepipeline. SGLP also has 7.4 million barrels of combined asphalt and residual fuel storagelocated at 46 terminals in 23 states.
“SemGroup has leased 1.5 MMB ofasphalt storage capacity to NuStar.”
Current capacity on White Cliffs is30,000 BOPD, and can be expanded tomore than 50,000 BOPD.
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Meanwhile, ExxonMobil has also completed a project that will increase capacity by50%, or 30,000 BODP, of its 858-mile Pegasus Pipeline that operates from Patoka, Illinoisto Nederland, Texas.
The expansion includes the reactivation and enhancement of several pump stationsalong the pipeline. The additional capacity will enable the transportation of additionalCanadian crude from the Midwest to Gulf Coast refineries.
The expansion also follows the system reversal on the Pegasus Pipeline back in 2006as part of a process to move Canadian crude shipments down to the Gulf Coast.
Exxon adds capacity at Piceance processing CONTINUES from page 1
Friday, June 26, 2009 MIDSTREAMNEWS5
Downstream NewsChevron’s oldest refinery faces uphill struggle
Chevron Corp. faces a legal struggle to upgrade its oldest refinery, in the SanFrancisco Bay, after a judge ruled that the environmental impact report for the project wasinadequate. The expansion is aimed at making the 107-year-old Richmond refinery more effi-
cient and flexible, and is part of a larger effort to increase refining profit margins.Construction of the new hydrogen plant started last September. When com-
pleted, the upgrade should allow the refinery to process crude with higher sulfur content.Chevron is making similar upgrades to its other U.S. refineries, but has not yet encounteredsimilar resistance.
The upgrades make economic sense for Chevron. Since 2000, sour crude – whichcontains more sulfur than sweet crude – has traded at a $3/bbl discount to sweet crude,according to a report by Credit Suisse.
Opponents, however, worry that the processing of heavier oil will result in increasedpollution, while Chevron maintains the density of the crude will actually remain the same.For now, the company is continuing with the $1.0-billion project.
Meanwhile, Chevron has said it will sell 70% of the output from its multi-billion-dollar Gorgon LNG project in Western Australia to customers in Japan and South Korea.The customers include GS Caltex in South Korea and three Japanese utility companies.
The project, in which Chevron holds 50% with partners ExxonMobil (25%) and Shell(25%), is one of Chevron’s seven LNG projects in various stages of completion.
The company expects its net LNG volumes to reach 300,000 BOEPD By 2015, morethan triple current levels. In April, the Australian government gave Chevron approval toincrease the size of Gorgon to 15 million tonnes per year, after having received approval fora 10 MMt/y project in 2007.
Chevron, Exxon and Shell are marketing their LNG production separately, withExxon recently agreeing to sell 1.5 MMt/y of LNG for a 20-year period to India’s Petronet,which will use the gas for its LNG terminal in Kochi.
Refinery outage updates• Chevron is conducting planned turnaround maintenance on a hydrocracking unit and
reformer at its Richmond, California, refinery, The Dow Jones Newswire reported. Thework started on May 28 and should last for 30 days.• Sunoco has returned to service the smaller of two key gasoline-making fluid catalytic
cracking units (FCCU) at its Philadelphia refinery. The unit was taken off line in April to cutcosts, but has since been restarted to compensate for a decline in production followingthe recent shutdown of the company’s Marcus Hook refinery FCCU.• Motive Enterprises’ refinery in Norco, Louisiana, resumed operations early following
the restart of a catalytic reformer. The unplanned downtime, which lasted one day,reduced rates at the associated FCCU.• Citgo shut its FCCU No. 1 in the East Plant section of its Corpus Christi
refinery due to an unplanned problem with spent catalyst. The unit is thought tostill be down.• BP’s Whiting, Indiana, refinery FCCU is expected to return to service in late
June after being shut down for planned maintenance in early April. The work wasexpected to end in mid-May. At BP’s Cherry Point refinery in Ferndale, Washington, thereformer and hydrocracking unit were restarted following planned maintenance thatbegan on April 15.• WRB Refining – a joint venture between Copano and EnCana – has begun planned
maintenance at the electrostatic precipitators, or ESPs, at Fluid Catalytic Cracking UnitNo. 29. The work is expected to be completed by mid-July.• Flint Hills Resources is shutting a coking unit in the West Plant section of its Corpus
Christi refinery for planned maintenance. Restart timing unclear, The Dow JonesNewswire reported.• Valero Energy said the restart of a crude unit, vacuum unit and coker at its Norco,
Louisiana, refinery is a least three weeks away. The units were shut due to a minor fire onJune 9. Valero is also delaying the shutdown of its Aruba refinery to mid-July rather thanearly July. Still, the company plans to take all units at the refinery out of service for eco-
nomic reasons, to be reevaluated sometime in the fourth quarter.• Tesoro suffered a power outage at its Kenai, Alaska, refinery on June 4
resulting in the shut down of hydrocracking and isomerization units. Repairs areexpected to conclude this month.
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NORTH TEXASPALO PINTO CO., TX PROSPECT3-Adjoining Leases. 530-Acres.DEVELOPMENTTargeting Barnett Shale. 4,600 Ft. BARNETTLeases Held By Shallow Strawn.Acreage 3 Miles SE Of Palo Pinto, TX.Major WI Available; 80% NRICurrent Net Production: 40-53 MCFDNew Pecan Pipeline Joins Leases —— Along With Enbridge Line.GENERATOR HAS MORE DETAILS
DV 6423
WHEELER CO., TX PROSPECT14,700+-Gross Acres.Targeting Granite Wash, Misener, Hunton.Proposed Total Depth: 12,600 Ft.Various Forms Of Trap Type. >145 BCFE3-D Seismic & Well Data.83.3% Working Interest Available.Est Reserves: 145-245 BCFECONTACT SELLER FOR SHOWING
DV 5331
SOUTH TEXASBEE CO., TX PROPERTY1-Proposed Gas Well. ~121-Acres.NORMANNA (CONSOLIDATED) ~300 MCFDProducing From 1st Massive Wilcox.Total Depth: 9,650 Ft.3.5% NonOperated WI; ~2.6% NRINet Production: 290 MCFD & 2.3 BOPDNet Cash Flow: $3,198/MnSELLER HAS MORE DATA
PP 2300DV
KARNES CO., TX PROSPECT4-Well Program. 875-Acres.Upper Wilcox L Series Targets. STX/DV/3DReklaw Carrizo Behind Pipe (7 Locations).3-D Seismic Data & Well Control.Low Pressure Gas Line Available On Lease.85% WI Available; 77% NRIEstimated IP: 34 BOPD & 2.0 MMCFDEst Reserves: >38 BCF & >645 MBCDETAILED FINANCIALS AVAILABLE
DV 5261
KENEDY CO., TX PROSPECT1-Directional Well.TAJOS FIELD >4.6 BCFTargeting Upper Frio Sands.Proposed Depth: ~6,750-9,700 Ft.UpThrown Three-Way Fault.Est Reserves: >4.6 BCFCONTACT GEOLOGIST FOR SHOWING
DV 5069
MIDSTREAMNEWS Friday, June 26, 2009 6
SOUTH TEXASKENEDY CO., TX EXPLORATION DEAL38,000-Gross Acres.SOUTH PADRE ISLANDInitiate Exploration Activity In— Southern Division of Padre Island. STX/DVArea 3-D Seismic. & Plat Available.SEEKING EXPLORATION COMPANY TOSHOOT 3-D & INITIATE DRILLING PROGRAMVenture Has Option To Take Oil/Gas Lease— Covering Undivided 50% Under Acreage.Frio Reservoirs Have Yielded 800 BCF.Over 8 Year Period Production Increased ToExcess 11 MMCFD Via Improved Seismic.Currently 6-Oil Companies & 5-Pipelines— Operating Within Park Boundaries.CALL PLS FOR MORE INFORMATION
DV 3963
LAVACA CO., TX PROSPECT±121-Acres.Targeting Upper Wilcox. 10,000 Ft. 8.7 BCFEDefined By AVO Response.50% OPERATED WI; 75% NRI (Lease)Est Reserves: 2.4-8.7 BCFECALL GENERATOR FOR MORE INFO
DV 2316
SOUTHEAST TEXAS LEASE~16,500-Net Mineral Acres.GULF COAST COAL BASINTo Top Of Midway. 2,300-5,800 Ft.5 Ft. - 22 Ft. Cumulative Coal. LEASEMineral Rights For Lease.Multiple Pipelines Throughout.
DV 9845L
WEST TEXASREEVES CO., TX PROJECT3-Prospects. 3,000-Net Acres.DEEP DELAWARE BASINWolfcamp, Barnett & Woodford Shale,Pennsylvanian, & Fractured DevonianOn-Site Salt Water Disposal SystemOn-Site Gas Gathering System 295+ BCF100% WI Available; 75% NRI~13 BCF PDP Wolfcamp Production.Est Reserves: 295+ BCFBased On Decline Curve & VolumetricsCALL PLS FOR ADDITIONAL DETAILS
DV 5268
REEVES CO., TX ROYALTY FOR SALE168-Royalty Acres.Strategically Located In Prolific Area.Two Units Established, 1 Well Drilling.Woodford And Barnett Shale Targets. ROYALTYPayZone Consists Of 800 Ft. Of Shale.Abundant Pipeline Access.TWO LARGE CAP OPERATORS
RR 2083
SOUTH EAST & GULF COASTESCAMBIA CO., AL PROPERTIES14-Gas Wells.BIG ESCAMBIA CREEKProducing From Smackover Formation.MultiZone Upside Potential.Varying NonOperated WI Available.Net Production: 1,725 MCFD 1.7 MMCFDAgent Last Reported: $200,000/MnLow Decline Rate PDP Reserves.Opportunity For Facility Optimization.AGENT WANTED OFFERS LATE MAYSTILL ENTERTAINING OFFERS
PP 6299DV
SIMPSON CO., MS ROYALTY2-Wells.GULF COAST ROYALTYROYALTY INTEREST FOR SALETotal Net Prod: ~7.5 BOPD & 1.0 MCFDDecline Curves & Financial Info Available.Part Of A Larger Royalty Package.WASHINGTON STATE SELLER
RR 3792
NORTH LOUISIANABOSSIER PH., LA PROPERTIES5-Wells.REDLAND FIELD 654 MCFDCotton Valley Production With Upside.100% WI Available; 77% NRINet Production: 654 MCFDAgent Last Reported: $112,000/MnDozens Of Proved Drilling Opportunities.CALL AGENT FOR STATUS UPDATE
PP 5262DV
GRANT PH., LA LEASE~33,000-Net Mineral Acres.GULF COAST COAL BASINRights To Wilcox Base. 4,200 Ft.-6,000 Ft.19 Ft. - 35 Ft. Cumulative Coal. LEASEMineral Rights For Lease.24 & 16 Pipeline Along West Side.
L 9756DV
RED RIVER PH., LA LEASE~31,000-Net Mineral Acres.GULF COAST COAL BASINRights To Wilcox Base. 300-1,200 Ft.7 Ft. - 15 Ft. Cumulative Coal. LEASEMineral Rights For Lease.30, 36, & 42 Pipelines Through Center.
L 9798DV
We pay cash foroverrides and royalties.
nobleroyalties.comNoble Royalties, Inc.
The latest CapitalMarkets online:
Macquarie Group to acquire TristoneCapital Global
Energy Capital panelists highlightequity strategies
Stephens adds six energy pros fromEnergy Capital Solutions
Money manager Curbstone expands its reach
House committee gives climate change bill the nod
Financial Perspectives: CIT Energy
Linn Energy closes $1.75 billion credit facility
Rex Energy’s borrowing base affirmedat $80 million
Lime Rock backstops Allis-ChalmersEnergy
TXCO files for Chapter 11, may borrowup to $12.5 MM
SemGroup files plan of reorganization
Energy Partners files for bankruptcyprotection
Atlas Energy’s net income slides 32%from same period last year
Questar’s 1Q net income falls 64%,production up 19%
BreitBurn’s revenues climb 29% yearover year
Plain’s 1Q net income hits $5.2 MM onrevenues of $228.5 MM
Apache records a first-quarter net lossof $1.76 billion
Nexen reports $3.3 billion of liquidity,9% increase in volumes
Search & Seek– Access our online library for past and/or present publications.
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Wednesday, May 6, 2009 | Volume 2, No. 10
CAPITALMARKETSServing the Property & Prospect Marketplace with Capital Insight & Market Opportunities
ENERGYFINANCE
APPALACHIA / EASTERN� ���� �������������� ��! ����(9H�'=B9F5@��7F9G� CF�-5@9'�,��&&/-�-"�&� �������" 'CBFC9���)J9FHCB��=GHF=7HG&C75H98�)B����8>579BH�*5F79@G&95G9��GG=;B98�.C��<=9:�)�!������ ��H<�,CM5@HM��J5=@56@9��&&�*&-� ),�#(.,)�.)�-�&&�,�������
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Pine Brook closes $1.43 billion fund for energy projectsNew York-based Pine Brook Road Partners has closed its first fund with total cap-
ital commitments in excess of $1.43 billion. Pine Brook’s investment approach calls forstarting businesses instead of buying companies, investing equity to grow them, and notusing financial leverage to create returns.
In this new fund, Pine Brook Capital Partners will target equity investments of $100-to $200 million. The firm is focused on the energy and financial services sectors.
In addition, Pine Brook usesthe “line of equity” structure thathelps mitigate the investment risk.Unlike traditional private equity and
leveraged buyout investments where all the capital is invested upfront, Pine Brook’s“line of equity” approach advances capital over time as the investment opportunitybecomes de-risked.
The fund has ~40 institutional investors, including Kansas Public Employees Retire -ment System and New York State Teachers’ Retirement System, which contributed $20 mil-lion and $75 million to the fund, respectively.
New Precision Drilling sees a 31% bump in revenueWill issue units, rights, warrants, debt to AimCo for $308 million
Precision Drilling Trust reported a 31% revenue increase and a 15% rise in earningsbefore interest, taxes, depreciation and amortization and foreign exchange (EBITDA) forthe first quarter of 2009 compared with the first quarter of 2008.
Revenue for the first quarter of 2009 totaled $448 million compared to$343 million for the same period in 2008. EBITDA was $169 million for thefirst three months of 2009, an increase of $22 million over the first quarter of
2008. The increase in revenue and EBITDA is due to the acquisition in December 2008 ofGrey Wolf an onshore drilling con-tractor with 123 rigs.
Precision reported net earnings of$57 million or $0.30 per diluted unit forthe quarter ended March 31, 2009, a
decrease of $49 million or 46% compared to $106 million or $0.84 per diluted unit in the firstquarter of 2008. Earnings in the first quarter of 2009 were reduced by $70 million, for a $36 mil-lion increase in interest expense and an increase of $34 million in foreign exchange losses.
Precision’s President and CEO Kevin Neveu said: “We have completed the first quar-ter of 2009 as the new Precision Drilling and our results demonstrate that the consolidationof the 123 rigs of Grey Wolf and the 257 Precision rigs has been successful despiteunprecedented declines in activity and customer demand in both the US and Canada. I amespecially pleased with our term contract position for drillings rigs.”
First Reserve closes Fund XII with $9 billion committed Private-equity firm First Reserve Corp. has closed its most recent global buyout
fund, First Reserve Fund XII LP, with $9 billion in commitments. Fund XII was raised inless than a year, a compressed timetable for funds this size.
This fund is more than $1 billion larger than Fund XI. First Reserve chief executiveWilliam Macaulay says, “Fund XII provides us ample equity during what is expected to be
an attractive investment environmentin the coming years. It gives us theresources to continue to secure strate-gic market positions, often with
industry partners, and gives us access to high-quality deal flow. “Energy remains a large, dynamic and complex industry where change creates new,
attractive investment opportunities. Our experience of investing successfully throughoutvarying economic cycles is an advantage in the current environment and will provide long-term opportunities for our valued Fund XII investors.” The firm previously raised $7.8 bil-lion in First Reserve Fund XI LP in 2006. Fund XII may be the largest private-equity fundever formed to make investments in energy. CONTINUES on page 15
CONTINUES on page 11
CONTINUES on page 7
SandRidge’s borrowingbase set at $1.1 billion
SandRidge Energy’s bank grouprecently reaffirmed its $1.095 billion bor-
rowing base and $1.75billion commitmentamount as part of a
semi-annual redetermination.The company remains in compliance
with all debt covenants and there were nochanges in covenant ratios. The margin
rates charged under the facility increased bya range of 75-100 basis points and the com-mitment fees increased to a flat 50 basispoints based on the current utilization level.The blended interest rate for borrowingsoutstanding under the facility, immediatelyfollowing the redetermination, was 3.02%.
The company’s bank group consistsof 27 financial institutions with no singlebank holding more than 6.6% of the totalcommitment. The next redetermination ofthe borrowing base is scheduled to be in thethird quarter of 2009. CONTINUES on page 14
NGP Capital Resources Cowww.ngpcrc.com
Fund XII was raised in less than a year, acompressed timetable for funds this size.
Pine Brook will target equity investmentsof $100- to $200 million.
The next redetermination isscheduled to be in the 3Q of 2009.
Precision reported net earnings of $57 million for the quarter, a decrease of $49 million or 46%.
ENERGYFINANCE
The Land RigClearinghouse, LLC
call For Drilling rig inventory
(469) 384-3813www.landrigclearinghouse.com
Crosstex Energy sells Gulf Coast midstream assetsCrosstex Energy LP is selling its assets in Mississippi, Alabama and South Texas for
$220 million to Southcross Energy, LLC, a Dallas-based gas transportation and processingcompany. Proceeds from the sale will be used to pay down more than $200 million of the
partnership’s outstanding debt.The Mississippi and Alabama systems consist of 780 miles of intrastate gather-
ing and transmission pipelines with throughput capacity of 185,000 MMBtu/d. TheSouth Texas system consists of 1,400 miles of pipelines with throughput capacity of600,000 MMBtu/d and two processing facilities with a total processing capacity of 195,000MMBtu/d. These three systems generated gross margin of $12 million and operatingexpenses of $4 million in the first quarter of 2009.
Goldman, Sachs & Co. is serving as the exclusive financial advisor to Crosstex inconnection with the transaction.
Friday, June 26, 2009 MIDSTREAMNEWS7
A&D NewsSunoco completes Tulsa refinery sale to Holly
Sunoco completed the sale of its 85,000-BPD refinery in Tulsa, Oklahoma, to HollyCorporation for $65 million. The Tulsa refinery, which began production in 1913, hadbeen a part of Sunoco’s refining system since 1968.
Holly paid $764.71 per barrel for the refinery; by comparison, this priceis well below the $4,007 per barrel that Alon paid to Valero to purchase a refin-ery in Louisiana last May.
Sunoco now hopes to focus its efforts on its larger refineries in Pennsylvania,Delaware, New Jersey and Ohio. These large refineries, which canprocess a greater variety of crudes, would sell for as much as$10,000 or even $20,000 per barrel of refining capacity.
Holly will now spend $150 million to add a diesel de-sulfur-ization at the Tulsa refinery. The company also said it will continueto look for similar refineries to purchase.
Meanwhile, Holly Corp. has dropped down to Holly Energy Partners a newly con-structed 16-inch pipeline connecting Holly’s refining facilities in Lovington, New Mexico,
to those in Artesia, New Mexico. The purchase price was$34.2 million and was financed through HEP’s revolvingcredit facility. In addition, HEP has invested $7.9 millionfor additional improvements on the intermediate
pipelines between the Lovington and Artesia facilities. HEP expects the acquisition toresult in $6.6 million of incremental annual revenue. The pipeline will support expandedvolumes from the recent Navajo Refinery expansion.
Holly Corp owns 41% in HEP. The partnership owns and operates pipelines, tankageand terminals in Texas, New Mexico, Arizona, Washington, Idaho and Utah. In addition,the partnership owns 70% in Rio Grande Pipeline Company, a transporter of LPGs fromWest Texas to Northern Mexico, and 25% in SLC Pipeline LLC, a transporter of crude oilin the Salt Lake City area.
Holly paid only $760/bblfor the Tulsa refinery.
NORTH LOUISIANASABINE PH., LA LEASE~6,000-Net Mineral Acres.GULF COAST COAL BASIN LEASERights To Wilcox Base. 4,000 Ft.-6,500 Ft.10 Ft. - 20 Ft. Cumulative Coal.Mineral Rights For Lease.4 Pipeline 2-3 Miles to Northeast.
L 9745DV
SABINE PH., LA LEASE PKG~70,000-Net Mineral Acres.GULF COAST COAL BASINRights To Wilcox Base. 300-1,400 Ft.9 Ft. - 24 Ft. Cumulative Coal. LEASEMineral Rights For Lease.30 Pipeline 4-6 Miles to SE.
L 9766DV
WINN PH., LA PROSPECT480-Gross Acres.Targeting Shallow Wilcox Gas. 2,600 Ft.Defined By 3-D Seismic. >2.0 BCFStratigraphic Trap Type.3-Offset Wells Have Cumm’d 596 MMCF.Est Reserves: >2.0 BCFLAND MANAGER HAS MORE INFO
DV 5201
SOUTH LOUISIANAASSUMPTION PH., LA PROSPECT340-Acres.Upper To Middle Miocene (6) Sands.Proposed Depth: 11,840 Ft.3-D Seismic Available. >18 BCFETrap Type: Faulted Anticline75% WI Available; 74% NRILOW-RISK OPPORTUNITYEst Well Rsrvs: 932 MBC & ~12.5 BCFIncludes PUD Reserves Of 7.25 BCFE.Facilities In-Place & Unit Formed.CALL GENERATOR FOR INFO
DV 5723
BATON ROGUE PH., LA PROSPECT2,220-Acres.IRENE AND PORT HUDSON FIELD5 Lower Tuscaloosa Sand Targets. >146 BCFE3-D Seismic Available.Total Reserves: 146.9 BCFE
DV 5897
LIVINGSTON PH., LA ROYALTY3-Wells.SOUTH LOUISIANA ROYALTYROYALTY INTEREST FOR SALETotal Net Production: ~5.3 BOPDDecline Curves & Financial Info Available.Part Of A Larger Royalty Package.SELLER CONTACT INFO PROVIDED
RR 3791 Register For [email protected]/playmakers
PlaymakersComing Soon!
@ Hilton Americas, Houston, TX
October 20, 2009
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June 1, 2009 • Volume 20, No. 7
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The A&D market appears to be comingback to life – another large deal announced thisyear was Talon Oil & Gas’ purchase of a 60%stake in Denbury Resources’ Barnett Shale posi-tion. The deal, valued at $270 million, added 45.7MMCFeD and 270 BCFE of proved reserves.Th
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�&2-*".� "3*.�)&"43�50�7*4)�4)2&&�%&",3�'/2�������Marathon sells to Apache, Range sells to EnergenMarathon sold assets in the Permian Basin in two transactions, selling 8,150 BOEPD for~$301 million to Apache Corp. and another undisclosed buyer. The retained outside-operatedassets in the Permian Basin contributed ~7,150 BOEPD in Q1. Apache agreed to acquire nine Permian Basin fields producing 3,500BOEPD for $187.4 million. Apache agreed to acquire Marathon’s operated assetslocated in Lea Co., N.M., and Reagan, Howard and Sterling Co. in Texas, as wellas Marathon’s interests in the Chenot/Putnamarea in Pecos Co Th i h
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For more A&D news, see
our A&D Transactions.
MIDSTREAMNEWS Friday, June 26, 2009 8
Williams, Atlas close Marcellus joint ventureWilliams closed its joint venture agreement with Atlas Pipeline Partners that pro-
vides it entry into the Marcellus Shale. The new JV, Laurel Mountain Midstream LLC,owns 1,800 miles of intrastate gas gathering lines in the Appalachian Basin servicing
6,900 wells.Williams contributed $100 million and issued a $25.5-million note payable
to Laurel Mountain in exchange for 51% ownership interest in the joint venture.Williams is also operating the gathering system. Atlas Energy
Resources, a leading producer in the Marcellus, will be the anchor tenanton the system.
Back in May, Atlas tested its third horizontal Marcellus well at 10.1MMCFeD. Atlas has five additional horizontal wells already drilled and cased and has nowdrilled and cased eight horizontal Marcellus wells in southwestern Pennsylvania sincecommencing its program in the fourth quarter of 2008. For the three wells on line, pro-duction has averaged 5.0 MMCFD over a 24-hour period. During the remainder of 2009,
the company plans to turn into line an addi-tional 12 horizontal wells.
Meanwhile, Williams Partners said anunderground gas pipeline ruptured at its
Ignacio Gas Processing plant, causing the plant to be shut down. The Ignacio plant is part ofWilliams Four Corners project in Colorado, and has a processing capacity of 450 MMCFD.
Williams has re-routed 250 MMCFD of the plant’s normal capacity to other facili-ties in the San Juan Basin. In addition to the Ignacio plant, the Four Corners gathering sys-tem is connected to the Kutz and Lybrook processing plants and the Milagro andEsperanza gas treating plants in northwestern New Mexico.
The incident will reduce second-quarter cash flows by $5-$6 million as a result ofreduced NGL equity sales volumes totaling 5-6 million gallons at current market prices,reduced gathering volumes of 3-4 trillion Btus and estimated repair costs of $1.6 million.The partnership does not anticipate this incident will affect expected distributions, or havea material impact on its financial position or liquidity.
Harold Hamm buys all outstanding Hiland sharesMidstream firms the Hiland Companies, Hiland Partners and Hiland Holdings
each signed a separate definitive merger agreement with an affiliate of Harold Hamm.Hamm and his affiliates will acquire all of the outstanding shares of each company after
which the shares of the Hiland Companies will no longer be publicly ownedor publicly traded.
In the mergers, Hiland Partners’ unitholders will receive $7.75 in cashfor each common unit they hold and Hiland Holdings’ unitholders will receive $2.40 incash for each common unit they hold.
The transactions will be financed entirely with cash contributed by Harold Hammand his family trusts.
Atlas’ latest Marcellus horizontalwell flowed 10 MMCFeD.
Percent Current One-Week Implied Net Estimated DifferenceStocks Prior Stocks Change from Prior 5-Year From 5 Year
All Volumes in BcF 6/19/09 6/12/09 Last Week Average Average
East Region 1,234 1,164 70 1,119 10.3
West Region 420 408 12 318 32.1
Producing Region 997 985 12 732 36.2
Total Lower 48 2,651 2,557 94 2,169 22.2
Source: Energy Information Administration: Form EIA-912, “Weekly Underground NaturalGas Storage Report,” and the Historical Weekly Storage Estimates Database. Row andcolumn sums may not equal totals due to independent rounding.
Current Natural Gas Stocks by Region
SOUTH LOUISIANAST. BERNARD PH., LA PROSPECTJurassic Cotton Valley Deltaic Sandstones.Proposed Depth: 27,000 Ft. (TD)Extensive 3-D Seismic Coverage.Pipeline Located In Area. 5.0 TCF80% Working Interest Available.Est Reserves: Up To 5.0 TCFCONTACT SELLER TO LEARN MORE
DV 5637
ST. MARY PH., LA PROSPECT404-Acres.LITTLE BAY 27 BCFETargeting Cib Op. 80 Ft.Defined By Sufsurface Mapping & —— 3-D Seismic.Analogs Cumm’d 13 BCF & 1.6 MMBO.Estimated Reserves: 27 BCFEDHC: $12,300,000CONTACT SELLER FOR MORE INFO
DV 6341
TERREBONNE PH., LA PROSPECTTargeting Rob 5 Sands.Proposed Test Depth: 13,030 Ft.3-D Seismic & SubSurface Geology. >60 BCFESeller Will Deliver 70% NRI.Est Reserves: 2,890 MBC & 50 BCFSELLER HAS OTHER LA DEALS
DV 5571
MIDCONTINENTCALHOUN CO., AR LEASE~56,000-Net Mineral Acres.GULF COAST COAL BASINRights To Wilcox Base. 1,000-2,400 Ft.18 Ft. - 38 Ft. Cumulative Coal.Mineral Rights For Lease. LEASE6 & 4 Pipelines— Along North End Of PropertyLooking For 3-Year Term.
L 9844DV
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214.560.2571www.fivestates.comFor more information: [email protected]
Friday, June 26, 2009 MIDSTREAMNEWS9
TransCanada Alaska Pipeline
Proposed Alaska Pipeline Project
Alberta Section
LNG Option
TransCanada Pipeline System
Alaska
NorthwestTerritories
BritishColumbia
Alberta
Yukon
Saskatchewan
TransCanada recruits Exxon CONTINUED from page 1
TransCanada Alaska Company, LLC and subsidiaries of Foothills Pipe Lines Ltd. willremain the AGIA licensees and TransCanada will continue as the primary point of contactwith the State of Alaska and the general public for this project.
Exxon Mobil, however, is also eligible to receive a $500 million AGIA grantfrom the Alaskan government. TransCanada said it will keep a majority stake in thepipeline, but the two companies will share responsibility for technical, commercial,
regulatory and financial matters relating to the project. The two companies will spend $150million on an open season to solicit shipper interest in July 2010, up from a previous budgetof $83 million. The new partners will draw up a new cost estimate for the project in the firstquarter of 2010, with a goal of opening the pipeline in 2018.
Exxon Mobil is one of Alaska’s main producers, along with BP and ConocoPhillips– who are now building a competing pipeline of their own. Their Denali Pipeline is “stillmoving forward,” BP spokesman Steve Rinehart was quoted as saying in Reuters. Last year,Exxon Mobil turned down an invitation to join the Denali partnership.
Both projects would help unlock as much as 35 TCF currently stranded in Arcticoil fields.
Meanwhile, TransCanada said it will become the sole owner of the Keystone PipelineSystem through the acquisition of ConocoPhillips’ remaining interest in the project for$550 million plus the assumption of $200 million of short-term debt. The purchase pricereflects ConocoPhillips’ capital contributions to date and includes an allowance for fundsused during construction. CONTINUES on page 11
MIDCONTINENTCENTRAL MICHIGAN PROSPECT2-Wells. 2,800-Acres.MICHIGAN BASINNewly Developed Prospect Well AddedGlenwood & Prairie Du Chien Targeted.2-D Seismic Lines.49% Working Interest Available MI/DVProportionate 80% NRI; 1/3 for 1/4— Geology & Land CostsEst Reserves: 1.5-10 BCFLAND MANAGER HAS MORE DETAILS
DV 1967L
FRANKLIN & CRAWFORD CO., AR6-Prospects. 2-ReEnter. 12,827-Net Acres.9,057-Acres HBP & 3,770 BLM Leases.ARKOMA BASINWeddingtons/Boone/Hale Reservoirs.600 Ft. - 2,800 Ft. Plus Fayetteville. 8.5 BCF4-PUD & Multiple Zones BeHind Pipe.Numerous Locations & ReEntries.100% OPERATED WI FOR SALE9.5-Miles Of Gathering System Installed.Mapping Shows 48-60 Potential Locations.Est Total Reserve Potential: 8.5 BCFSELLER HAS ASKING PRICE
DV 2153RE
FRANKLIN CO., AR PROJECT.350-Potential Wells. 24,000-Contiguous Ac.FAYETTEVILLE SHALEObj 1: Fayetteville Shale LARGE Obj 2: Chattanooga Shale & Weddington. PLAYAreas of Vertical & Horizontal Drilling.4-Wells Ready To Drill. Permitted.Seeking 50% NonOperated Partner.Shallow Fayetteville Analog IP: 2,000 MCFD10-Year Term & 81.25% NRIEst Well Reserves: 2.0 BCFE/WellPipeline Ready. Infrastructure In Place.Completed Horizontal Well: $1.8 MM
DV 9853
GARVIN CO., OK PROSPECT5-Proposed Wells. ±200-Acres.Multiple Reservoir Potential.Total Depth: ~4,750 Ft. ~1.6 BCFELow-Risk Prospect. Pipeline Nearby.Up To 37.5% WI Available; 75% NRI (Lease)Offsets Recent 500 MCFD Completion.Est Reserves: ~100 MBO & 1.0 BCFGENERATOR HAS MORE DETAILS
DV 5425
Not a member? Call (713) 650-1212.
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MIDSTREAMNEWS Friday, June 26, 2009 10
MIDCONTINENTJEFFERSON CO., AR LEASE~18,000-Net Mineral Acres.GULF COAST COAL BASIN LEASETargeting 3,000-3,500 Ft. or Greater20 Ft. Cumulative Coal.Mineral Rights For Lease.10, 12, & 24 Pipelines Throughout.
DV 9838L
LINCOLN & DREW CO., AR LEASE~21,000-Net Mineral Acres.GULF COAST COAL BASIN LEASETargeting 3,000-3,500 Ft. of Greater20 Ft. Cumulative Coal.Mineral Rights For Lease.10, 12, & 24 Pipelines Throughout.
L 9834DV
MANISTEE CO., MI PROJECTNIAGARAN REEF TRENDTotal Vertical Depth: 5,060 Ft.Pipeline Within 2,000 Ft. MI/DVSeller Will Deliver 80% NRI.Initial Production: 25 BOPD & 500 MCFDEst Reserves: 250 MBO & 1.0 BCFCALL OPERATOR FOR MORE INFO
DV 5316
MANISTEE CO., MI PROSPECT160-Acre Unit.NIAGARAN REEF TRENDPipeline Found Nearby. MI/DVAverage NRI: 80%Est IP: 150 BCPD & 1,500 MCFDEst Total Reserves: 700 MBC & 4.0 BCFCALL OPERATOR FOR MORE INFO
DV 5797
OKLAHOMA OPERATED PROPERTIES23-Wells; 3-SWD, 19-PDP & 1-INAEIGHT COUNTIESProducing from 14 Zones. 492 MCFEDAdditional Revenue Stream: Gathering— Line w/Interconnect On CenterPoint.Mostly 100% Working Interest For Sale.Est Net Production: 24 BOPD & 348 MCFDAgent Says Cash Flow: $175,294/MnNet Reserves: 150 MBO & 1,385 MMCFNet PV10: $10,863,996VIRTUAL DATA ROOMAGENT REPORTS SALE IS PENDINGCONTACT AGENT FOR UPDATE
PP 3799DV
NoCommissions
LNG on the way to U.S. markets CONTINUED from page 1
Another 5.2 BCFD or more of LNG capacity will go on-line in 2010, with more than 2.9 BCFD on target for North America, said Hattenberger.
“The recession has led to world demand destruction and increased global LNG pro-duction. Demand in Japan is down, so there is a drive to North America. There areplenty of ships right now to move into the Atlantic Basin. The infinite sink mar-ket for gas is the U.S,” Hattenberger was quoted by NRI.
“Once liquefaction is built, it tends to just run. No LNG player would think aboutshutting down. LNG producers will not turn down production, and they will bring it hereeven at a lower price,” Hattenberger said, explaining Gazprom’s calculation of fixed andvariable costs.
Moreover, the imminent start up of newprojects in Russia such as Shtokman andYamal will produce enough gas to eventuallysupply 10% of the U.S.’s total natural gas consumption. Currently Gazprom, the world’slargest gas producer, supplies 0.5% of gas consumed in the U.S. and 25% of gas consumedin Europe.
Shtokman – one of the largest gas fields in the world – sits in the Barents Sea and isslated to come on stream by 2013, with LNG production commencing in 2014. Gazprom offi-cials said about 17% of Shtokman’s output is slated for North American markets. Gazpromowns 51% in the project, while France’s Total holds 25% and StatoilHydro owns 24%.
Moreover, additional LNG is on the way from other sources, with Sempra Energystriking a deal with Qatar’s RasGas, one of the world’s largest suppliers of LNG, to deliverLNG to the Cameron receipt terminal near Lake Charles, Louisiana. The agreement is for thepurchase of up to 50 cargoes with each cargo containing up to 4.8 BCF of gas.
Construction is nearing completion at Cameron LNG and the new terminal isexpected to go into commercial operation in July. The agreement covers the period fromAugust 2009 to December 2010.
Cameron LNG is located near Henry Hub and the Gulf Coast along the Calcasieu ShipChannel. A second Sempra LNG receipt terminal in Baja, California, known as EnergíaCosta Azul began operations in 2008, making it the only LNG receipt terminal operating onthe West Coast of North America. The project’s capacity is already fully subscribed.
Earlier this quarter, RasGas agreed with Chevron to deliver 2.6 BCFD of LNG to thecompany’s Sabine Pass terminal beginning in July. Since April, U.S. LNG imports haveaveraged “only” 1.4 BCFD, according to analysts at Tudor Pickering Holt & Co., but thatnumber is now looks set to increase drastically in the near future.
Regional Spot Prices for Natural Gas
Spot Prices Thu Fri Mon Tue Wed($ per MMBtu) 18-Jun 19-Jun 22-Jun 23-Jun 24-Jun
Henry Hub 4.19 4.04 4.01 3.91 3.80
New York 4.53 4.33 4.32 4.30 4.25
Chicago 3.98 3.71 3.83 3.73 3.66
Cal. Comp. Avg.* 3.45 3.18 3.25 3.18 3.13
Futures ($/MMBtu)
July Delivery 4.093 4.032 3.933 3.879 3.761
August Delivery 4.278 4.193 4.071 4.007 3.906
*Avg. of NGI’s report average prices for: Malin, PG&E citygate and Southern California Border.Source: NGI’s Daily Gas Price Index (http://www.intelligencepress.com)
“Gazprom already supplies 25%of gas consumed in Europe.”
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TRC ConsulTanTs l.C.Integrated Economics
&Decline Curve Analysis
Friday, June 26, 2009 MIDSTREAMNEWS11
Price, WTX Intermediate Crude Oil Spot Price, & Henry Hub Natural Gas Spot Price
NYMEX Natural Gas Futures Near-Month Contract Settlement
1/29/2009
2/5/2009
2/12/2009
2/19/2009
2/26/2009
3/5/2009
3/12/2009
3/19/2009
3/26/2009
4/2/2009
4/9/2009
4/16/2009
4/23/2009
4/30/2009
5/7/2009
5/14/2009
5/21/2009
5/28/2009
6/4/2009
6/11/2009
6/18/2009
Dollars per M
illion Btu
Note: The West Texas Intermediate (WIT) crude oil price, in dollars per barrel, is convertedto $/MMBtu using a conversion factor of 5.80 MMbtu per barrel. The dates marked byvertical lines are the NYMEX near-month contract settlement dates.
Source: Natural gas prices, NGI’s Daily Gas Price Index (http://intelligencepress.com), WTI price, Reuters News Service (http://www.reuters.com)
NYMEX Natural Gas Settlement PriceWTI Spot PriceHenry Hub Spot Price
$12
$8
$4
$0
NYMEX Closing Dates
2/25/ 2009 3/27/ 2009 4/28/ 2009 5/27/ 2009
TransCanada recruits Exxon CONTINUED from page 9
TransCanada will also assume responsibility for ConocoPhillips’ share of the capitalinvestment required to complete the project resulting in an incremental commitment of $1.7billion through the end of 2012.
TransCanada Chief Hal Kvisle said the oil transmission system will play avital role in transporting a growing supply of Canadian crude to the largest refin-ing markets in the United States for decades to come.
When completed, Keystone will be one of the largest oil delivery systems in NorthAmerica with the capacity to deliver 1.1 MMBOPD. Keystone has secured long-term com-mitments for 910,000 BOPD for an average term of 18 years which represents 83% of thecommercial design of the system. As a result of Keystone’s access to premium markets,competitive and stable tolls, faster transit times, and improved batch quality, it is antici-pated that Keystone will also move incremental volumes for customers on a short-termbasis or under additional long-term contracts. In the future, Keystone could be economi-cally expanded to 1.5 MMBOPD in response to additional market demand.
The first phase of Keystone is currently under construction. It will extend 2,148 milesfrom Hardisty, Alberta to U.S. Midwest markets. It will have an initial nominal capacity of435,000 BOPD and serve markets in Wood River and Patoka, Illinois. Commissioning ofthis segment is expected to commence in late 2009 with commercial operations to followin early 2010. The line will subsequently be expanded to a nominal capacity of 590,000BOPD and extended to Cushing, Oklahoma. Commissioning of the Cushing segment isexpected to commence in late 2010.
Keystone is also currently seeking regulatory approvals to expand and extend the sys-tem by 500,000 BOPD from Western Canada to the U.S. Gulf Coast at Port Arthur, Texas,in 2012. Construction of the expansion facilities is anticipated to commence in 2010 fol-lowing the receipt of the necessary regulatory approvals.
The total capital cost of Keystone is expected to be $12 billion, $2.7 billion of whichhas already been spent.
MIDCONTINENTROGERS CO., OK PROPERTIES50+ Oil & Gas Wells. 4,375-Acres.Producing From Penn. Age Reservoirs —— Also Rowe Coal Seam. 700-1,100 Ft.Numerous PUD Locations Identified.Great Development Opportunity.100% Working Interest; 80% NRI ~500 MCFDAvg Net Production: ~650 MCFDOil Potential In Mississippian Lime.Large Gathering System In Place.LAND DATA AVAILABLE UPON REQUEST
PP 5498DV
SOUTHEAST KANSAS SALE PACKAGE144-Wells; 80-PDP. 75,000-Gross Acres.CHEROKEE BASINCBM Production. (300 - 1,400 Ft.)MultiZone Development Upside.Gathering Facilities In Place. CBM100% OPERATED WI; ~82% NRI.Net Production: 10 BOPD & 1,100 MCFDNet Cash Flow: $40,000 - $45,000/MnEngineering Database Available.
PP 4248DV
TULSA CO., OK GATHERING SYSTEMShutIn Pipeline With Equipment. 10 Sq Miles.OKLAHOMA SYSTEMSignificant CBM Exploration Within Acreage.Shallow Coal Seam Gas Production.Low Pressure-Stripper Plant-Sales Lines.100% OPERATED WI FOR SALE CBM/PIPEShutIn Pipeline: Raw Unleased AcreageSuitable To: Production & Pipeline BuyerOptimal Scenario: Buy Pipeline & DrillSELLER HAS SOLID RIGHT OF WAYS
G 5617PL
APPALACHIA & EASTERNCLAY/LESLIE CO., KY PROSPECTS26,000+-Acres. Development Play.Multiple Pay Zones Identified. <3,200 Ft.600+-UnDrilled Development Locations.Excellent Horizontal Candidate.Complete Pipeline Infrastructure. DEVELOPMENT163-Wells Currently Producing.Production Can Increase w/ Treatment.>100 Mi Of Pipeline Infrastructure.
DV 5295
MARCELLUS PROSPECT FOR SALE40,000-Acres.NORTHEASTERN PENNSYLVANIAPrimary Target: Devonian Marcellus.Multiple Secondary Objectives. MARCELLUSPipeline In Place.CONTACT SELLER FOR SHOWING
DV 5311
TEXAS CAPITAL BANK
www.texascapitalbank.com
12
APPALACHIA & EASTERNNEW ALBANY SHALE ACREAGE34,000-Acres. New Leases.SOUTHERN INDIANAHorizontal & Vertical Well Potential.NEW ALBANY. 1,300 - 1,800 Ft. TVD110-140 Ft. Shale. Unconventional Mixed.Biogenic & Thermogenic Gas Play.Shallow & Deeper Oil Potential. 100 BCFProspect Generator Can Deliver 80% NRI.Major Transmission Lines In Area.Technical Data Supports Natural Fracturing.Est Well Reserves: 1.1 BCF (320 Ac Spa)Est Project Reserves: 100 BCFGENERATOR HAS DATA AVAILABLE
DV 8460HZ
NORTHEAST PENNSYLVANIA OFFERMARCELLUS OPTION15,000-Acres On Contiguous Pipeline.Susquehanna River BasinDry Gas Window, 65% Brittle. MARCELLUS
200+ Ft. Of Marcellus. 7,000 Ft. (TVD)4-Offset Horiz. Average IP: 7,350 MCFDPublished EUR: 5+ BCF/Well$500/Acre Lease Bonus + Prospect FeeInitial 2-Year Lease2-Well Drilling Commitment (DC).After DC - 5-Year Option $2,500/AcreAdditional 5-Year Extension $2,500/Acre12-Year Total Primary Term.Seeking 75% WI Partner.Operations Are Negotiable.
DV 6433
OHIO DRILLING PROSPECT40,000-UnDeveloped Acres.MARCELLUS SHALEProductive Shallower Zone Upside.Pipeline & Gathering Systems In-Place.Successful Analogs Identified.Depths Range: 5,000-10,000 Ft. OH/DVSeller Will Deliver 87.5% NRI.Modest Drilling Costs.Est Reserves/Well: 0.5 - 2.0 BCFEEst Reserves/Project: 20 - 50 BCFELease Terms: Half 5-Year & Half 10-YearPLS HAS MORE INFO AVAILABLE
DV 6442L
OVERTON & PUTNAM CO., TNNatural Gas Pipeline. 120-Mile System.DIRECT CONNECT TO MAJOR PIPELINEShallow Gas Wells. 900 Ft. - 2,000 Ft.In Area of MultiPay. Shows 7-Pay Zones.100% OPERATED WI FOR SALEPipeline Should Easily Take: 750 MCFDIn Area Of Deeper Exploration Activity.New Gas Available.Principals Only. Pipeline Only For Sale.
G 9000PL
APPALACHIA & EASTERNPOTTER CO., PA PROSPECT SALE3-Contiguous Blocks. ~9,000-Acres.APPALACHIAN BASINTargeting Marcellus Shale.Excellent Pipeline Access. MARCELLUSLeases Held By Production.50% - 75% WI Available; 83%-84.5% NRICONTACT EXPLORATIONIST FOR INFO
DV 5074
ROCKIES & DAKOTASNEW MEXICO DEEP GAS PLAY~106,000-Net Acres .DEEP GAS PLAY. 8,000 Ft. - 18,000 Ft.1,000–2,000 Ft. Mature Mancos Shale. >10 TCFMultiple Tertiary & Cretaceous Gas Targets.Drill Sites Identified & Ready To Permit.1,000-Line Miles ReProcessed Seismic.SEEKING JOINT VENTURE PARTNERSMulti Pipelines w/Capacity Traverse Acreage.Est Reserves: >10 TCFEst IP: 5-15 MMCFD & EUR: 5-15 BCFEPrimarily Fee Leases/No Permitting Issues.PART OF A LARGER OFFERINGCONTACT AGENT FOR UPDATE
DV 3761
NEW MEXICO PROSPECTS7-Prospects. 30,000-Net Acres-Leased.PERMIAN - NORTHWEST SHELFMultiple Objectives. 8,000 Ft.Include: Cisco, Canyon, Strawn CarbonateStrawn Clastic & Siluro-OrdivicianOPERATIONS AVAILABLE 250 BCFEst Reserves: 250 BCFPipeline Access in Prospect Area
DV 9995L
NORTH DAKOTA SHALLOW GAS600,000-Net Acres.BOTTINEAU, ROLETTE, WELLSEMMONS & PIERCE CosBiogenic Niobrara Formation. 1,800 Ft.100% WI For Sale; 82.5% NRIPaid Up, Long Term, Fee Leases. LEASESPipeline & Infrastructure Near By.SELLER HAS PACKAGE
L 8683DV
RIO BLANCO CO., CO PROPERTIES14-Gas Wells. 2,720-Acres.CATHEDRAL FIELDMancos A & B Formation. 3,000-4,000 Ft.Dakota, Emery Objectives. 6,000 Ft.~10 Mile Gas Gathering System.Various WI & NRI For Sale. NEW DATAGross Prod: 64 MCFD (Before ReWork)— Seller Added New PumpProduction Bumped To 90-110 MCFDMOTIVATED WITH ASKING PRICECONTACT PLS FOR UPDATED PKG
PP 9307DV
MIDSTREAMNEWS Friday, June 26, 2009
• DCP Midstream appointed D. RobertSadler as VP and treasurer. Prior to thisrole, Sadler served as VP, strategic plan-
ning, responsible for identify-ing opportunities and com-
petitive challenges in the midstream space.Rob will replace Irene Lofland, who willassume a rotational executive assignmentas role of VP, internal audit and compliance.
• Investment banking firm EvercorePartners hired Robert Pacha to itsAdvisory Practice as a senior managingdirector to lead the firm’s midstreamenergy practice. Pacha will also establishEvercore’s Houston office and help buildthe firm’s presence in the energy industry.
• Flint Hills Resources LP, which dis-tributes fuels via terminals throughoutTexas, will build a new fuel terminal inCaldwell Co. to serve Central Texas. Thisnew terminal will begin operating in 2010.The terminal will include storage tanks anda four-bay truck-loading facility that pro-vides access to the company’s proprietaryrefined products pipeline.
• Engineering firm KBR was awarded aservices contract for ExxonMobil’s PNGLNG project. The agreement extends
through 2014. Services willbe provided from Brisbane,
Australia, and a number of sites in PapuaNew Guinea.
Listings Marked By PLS Logo
Are Opportunities Being Handled By
The PLS Marketing Arm.
Briefs
www.plsx.com
Divestments Made easySince 1988, PLS has handled more than
1,200 projects worth $2.0 billion in the U.S.
and Canada. Have PLS maximize your next
profit opportunity on your property,
prospect, override or midstream asset.
Contact: Richard Martin
[email protected] or call (713) 650-1212
www.plsx.com
Friday, June 26, 2009 MIDSTREAMNEWS13
ROCKIES & DAKOTASROOSEVELT CO., MT PROSPECT5-Initial Wells Proposed. 25,000-Acres.WEST POPLAR FIELDTesting Judith Formation. 1,200 Ft. 400 MMCF75% OPERATED WI Available.Est Well Reserves: Up To 400 MMCFCALL AGENT FOR MORE INFO
DV 2344
SWEETWATER CO., WY ACREAGE~29,810-Gross/Net Acres.EASTERN GREEN RIVER BASIN LEASESNonProducing Leasehold.Multi Reservoirs: Mesa Verde Almond Bars- Mesa Verde Estuarine, Lewis Turbidites- and Fractured Shales, Fox Hills Shoreline- Fort Union Coals & Mesa Verde Fluvial.100% OPERATED WI. ~83% NRI89% Federal Lands & 11% State Lands.CONTACT AGENT FOR UPDATE
L 3961DV
WASHAKIE CO., WY PROSPECT1-Proposed Well & 3-D Seismic Shoot.9,078-Federal Acres.Obj 1: Frontier/Mowry/Dakota ~132 BCFEObj 2: Phosphoria/Tensleep/MadisonDepth Range: 10,500 – 15,000 Ft.2-D Seismic, HC Shows In Offset Wells.75% Working Interest; 80% NRIOperations Are Available.Est Reserves: 50 MMBO & 90 BCFEst 3-D Seismic Cost: $1.0MM - $1.2MMGENERATOR HAS MORE INFO
DV 2127
ROCKIES & DAKOTASWYOMING PROPERTIES FOR SALE68-Operated Wells. 14-NonOperated Wells.POWDER RIVER BASINCAMPBELL, JOHNSON & SHERIDAN CO.>9,000-Undeveloped Net Acres: Big George3-NonOp PDNP Wells. >200-Drilling Locations.Big George Coal Seams Have Over— 100 Ft. Of Coal Thickness. 1.5 MMCFDOPERATED & NonOperated WI Available. CBMNet Production: 1,500 MCFDGathering, Electricity and Low Cost Water-Disposal Designed/Awaiting Construction.Agent Last Reported: $100,000/MnOver 300-ShutIn Wells Waiting For— Infrastructure Completion. Plus BHP.Additional BHP Potential In Existing Wells.Custom Negotiated Transaction.CONTACT AGENT FOR PACKAGE
PP 3688DV
WYOMING PRODUCTION & LEASES10-Counties. 72-Properties.70,000-Net Undeveloped Acres.Producing From Multiple Reservoirs.Includes Compression/Gathering System.Multiple Prospect Upside - All Depths.Varying Working Interest & NRI.All OPERATED Except 2 Wells. WY/PP/DVNet Production: ~227 BOEDAgent Last Reported: $78,200/MnEst Proved Reserves: ~6.9 MMBOENet PV10 (Proved) Value: $31,700,000AGENT HAS UPDATE AVAILABLE
PP 6403DV
Aruba
BENCA
WILMINGTON
MCKEE
SAN ANTONIO
ARDMORE MEMPHIS
PAULSBORO
DELAWAREREYNOLDS(UNDER DEVELOPMENT)
QUEBEC(JEAN GAULIN)
CHARLES CITY
FORT DODGEALBERT CITYALBION
AURORA
HARTLEY
WELCOME
TEXAS CITY
HOUSTON
PORT ARTHUR
ST CHARLES
THREE RIVERS
CORPUSCHRISTI
LEGEND
Valero Headquarters
Valero Refineries
Cameron HighwayOil Pipeline Project
Third-Party OffshorePlatforms
Ethanol Plants
Valero’s U.S. Refineries and Ethanol Plants
Valero on buying spree Valero Energy is on a buying spree that
is eating up cash previously slated for organicgrowth projects. In the last three months, the
company has acquired sevenexisting ethanol plants and asite under development from
VeraSun Energy Corp. for $477 million.Valero also attempted to purchase The
Dow Chemical Company’s 45% interest inTotal Raffinaderij Nederland NV, whichowns a crude refinery in the Netherlands,for $600 million. The refinery has athroughput capacity of 190,000 BOPD.
In light of this potential investment,Valero said it would indefinitely postponemajor new hydrocracker projects at St.Charles and Port Arthur. “In the current envi-ronment, it makes more sense to acquireexisting capacity at a substantial discount tonew construction costs, as we have done withTRN and the ethanol plants,” ValeroChairman Bill Klesse added.
Unfortunately for Valero, Dow hassince informed the company that Totalintends to exercise its right-of-first refusalas the refinery operator and owner of theremaining 55% interest in TRN.
It is unclear whether or not Valero willpursue its previously planned upgrades. Thetwo hydrocracker projects would have cost acombined $3.95 billion.
Valero said it will continue to seekopportunities to buy high-quality assets at adiscount to new-build price.
MIDSTREAMNEWS Friday, June 26, 2009 14
ROCKIES & DAKOTASYELLOWSTONE CO., MT PROSPECT41,456-Net Acres.Multiple Objectives Identified.Defined By 2-D Seismic Lines.50% Working Interest; 81% NRIOperations Are Negotiable. MULTIPAYTested At 46 MMCFD.SELLER HAS MORE DETAILS
DV 6262
WEST COAST & ALASKACOLUSA CO., CA OPPORTUNITY1-Prospect.SACRAMENTO BASINTargeting Forbes Formation.3-D Seismic Opportunity >9.0 BCF50% OPERATED WI Available.Potential Reserves: 9.0+ BCFCALL PLS FOR SHOWING
DV 6353
COOK INLET, AK PROSPECT122,000-Acres.Conventional Natural Gas Prospect.2-D Seismic Available.READY TO DRILL40% Working Interest For Sale. 1.0 TCFEst Reserves: ~1.0 TCFGas Pipeline Located On Property.Excellent Natural Gas Market.
DV 2719
MULTISTATEARKANSAS & LOUISIANA LEASE~20,000-Net Mineral Acres.GULF COAST COAL BASINRights To Wilcox Base. 800-1,200 Ft. LEASE8 Ft. - 15 Ft. Cumulative Coal.Mineral Rights For Lease. Multiple Pipelines.
L 9796DV
ILLINOIS & KENTUCKY ACREAGE~229,000-Net Acres.NEW ALBANY SHALE LEASES300-400 Ft Of Pay Thickness. MULTISTATE
Most Acreage In Rock Creek Graben.Kentucky Acreage: Crittenden, Livingston,
Marshall, Union & Webster Co.Illinois Acreage: Hardin, Jackson, Johnson,
Massac, Pope & Saline Co.3-Year And 5-Year Extension Clauses.
L 6448DV
• TransCanada sub Nova Gas Trans -mission is looking to construct a 1.7-BCFDpipeline out of British Columbia’s Montneygas play and other nearby producing areas.The $233-million, 36-inch Ground birchpipeline would connect with TransCanada’snetwork in Alberta, and has a targeted in-service date of November 2010. Nova hasalready secured 115 MMCFD of firm trans-portation from five separate companies for2010, increasing to 1.13 BCFD by 2014over four to eight-year terms. The Montneyarea could hold 28.5 TCF.
• Oregon LNG – a proposed LNG facility in Warrenton – signed a Memorandum ofUnderstanding with the Oregon Depart -ment of Energy, committing to key steps in the areas of CO2 mitigation, plant retire-ment and emergency preparedness.Oregon LNG anticipates final approval inmid-2010. Construction of the import facil-ity and the associated pipeline is antici-pated to begin by late 2010. The project is expected to begin serving customers in 2014. The associated Oregon Pipelinewill deliver gas to customers in the Pacific Northwest.
• Pembina Pipeline Corp. closed itsacquisition of the Cutbank Complex gasgathering and processing facilities fromTalisman Energy for a purchase price of$300 million. The Cutbank Complex, inwest central Alberta, is capable of process-ing 360 MMCFD (305 MMCFD net toPembina). The acquisition was financed bya combination of debt and equity capital.
• The Shaw Group appointed MontyGlover to the newly established position of president of construction with overallresponsibility for Construction within theFossil and Nuclear Divisions of the PowerGroup. Ron Barnes joins Shaw as presi-dent of the Fossil and RenewablesDivision. Shaw also named Eli Smith asSVP of Procurement for the Power Group.
Briefs
TRIADENERGY CORPORATION
1616 Voss, Ste. 650Houston, TX 77057Ph: (713) 337-1440Fax: (713) 337-1490
www.triad-energy.com
MULTISTATETEXAS & LOUISIANA ACREAGE~20,025-Total Net Acres.HAYNESVILLE SHALESabine-LA. Sabine/San Augustine-TX.Bossier, Knowles & James Lime Potential.Quality Reservoir Rock.Substantial Gas Shows. ETX/LA ACREAGEGeologic Evaluation Available.75% OPERATED WI; 56.25% NRIPipeline Infrastructure In Place or Near— Completed Near Company’s Acreage.Significant Bossier, Knowles, James Lime.Strong Haynesville Potential w/Large —Operators Producing in Prolific James Lime.All Acreage In Highly Active Areas.Sizeable Leasehold Position in Haynesville.
DV 3329
FOR SALE - EQUIPMENTDRILLING RIG FOR SALEMobile Bock 861 - Platform C. UnManned.Water Depth: 54 Ft.Tripod Wellhead Deck.Facilities Can Flow: 17,000 MCFD RIGTotal Fluids: 1,900 BarrelsProcessing Equipment Incl Dehydration.Room For Compression.Crane: Nautilus Model 35 B4-501-Well Slot w/ Option To Add Slots.SELLER HAS MORE INFO
E 6461RIG
DRILLING RIG SALEDrill Rig For Sale.NATIONAL 370 MECHANICAL RIGCan Drill Down To 10,000 Ft.2- 630 HP 440 KW Marathon Generators.2-CAT 3406C Engines.Compound 280,000 Lbs w/ 8 Lines.BROKER HAS ADDITIONAL DATA
E 5415RIG
OFFSHORE PLATFORM FOR SALEMOBILE AREA - GULF OF MEXICOWater Depth: 54 Ft.Tripod Wellhead Deck GOM PLATFORMFacilities Can Flow: 17,000 MCFDTotal Fluids: 1,900 BarrelsProcessing Equipment Incl DehydrationRoom For Compression.1-Well Slot w/ Option To Add Slots.SELLER HAS MORE INFO
E 6446RIG
MIDSTREAM ASSETS WANTEDNeed Gathering; Pipelines; EquipmentUNITED STATES BASINSOPERATED & NonOperated WIIf You Have Midstream Asset For Sale— Please Contact [email protected] SCREENING DEALS FOR BUYER
W 6360G
MONEY SOURCE SEEKS DEALSROCKY MOUNTAINSDevelopment Drilling.Oilfield Construction. Stripping Plants.Compression Facilities. Gathering Lines.No Exploration, Land Banks Or Drilling Rigs.Preferred Size Range: $2.0-$30 MM
W 1820DV
WANTED
Petroleum Listing ServiceP.O. Box 4987Houston, TX 77210Phone: 713-650-1212Fax: 713-658-1922Website: www.plsx.com
EditorKyle Francis ([email protected])
Graphic DesignerKathy Clark ([email protected])
Advisory BoardDoug Jacobson, Chesapeake Energy Corp.John Gargani, Southwestern Energy Co.
Robert Turnham, Goodrich Petroleum Corp.Cameron O. Smith, Rodman & Renshaw, LLC
M. Lynn Bass, GasRock Capital, LLCCathy Sliva, BlueRock Energy Capital, LTDFrank Pottow, Greenhill Capital PartnersAdrian Goodisman, Scotia Waterous
Alan Smith, Quantum Resources ManagementDavid Marchese, Haddington Ventures, LLC
To obtain additional information on properties for sale in this MarketAlert, pleasecontact our office: 713-650-1212 or by fax:713-658-1922 with the property number.Please note only members are able to receiveadditional information.Have a property to list or sell? Direct Inquiresto Richard Martin [email protected] or access www.plsx.com for more info.MarketAlert is published twice weekly throughfax and email and is a sister product to PLS’A&D Transactions, Prospects & Properties,Capital Markets & QuickPrice. All registeredtrade products of PLS.All Standard Disclaimers & Seller Rights Apply. Email: [email protected] or Sellers No Longer Interested In Receiving Midstream News Can Opt Out By Calling Toll-free: 866-501-8500Email: [email protected].
© Copyright 2009 by PLS, Inc.Federal copyright law prohibits unauthorizedreproduction by any means and imposes finesup to $100,000 for violations.
MIDSTREAMNEWS
Friday, June 26, 2009 MIDSTREAMNEWS15
WantedAnonymous buyer seeks:Gulf Coast &Permian Basin Assets
For more info contact: Richard MartinAt PLS: (713) 650-1212
Midstream Briefs International• Gazprom has delayed plans to build
gas pipelines to China after the two entitiesfailed to agree on pricing. It was originally
planned to build two pipelines totransport up to over 80 billioncubic meters of gas from Siberia
to China by 2011.
• One South Korean and four Japaneseconstruction firms are asking Kuwait forcompensation after the country canceledletters of intent for a $15-billion oil refinery.In May 2008, Kuwait awarded four con-tracts worth $8.3 billion to four SouthKorean and one Japanese company, butthis March the government decided todelay construction of the 615,000-BPDproject. In December Kuwait cancelledsimilar refinery plans for a $7.5 billion part-nership with U.S. Dow Chemical, citinghigh costs amid global economic turmoil.
• Spain’s Repsol is seeking a buyer forits 30% stake in Brazil’s Refap refinery,which it acquired in 2001 in a deal valuedat $1 billion. The plant processes90 MMCFD, and its capacity hasmore than doubled since 2005,leading many to speculate it could be soldfor more than the $1.0 billion Respol paidfor it. Brazil’s Petrobras holds 70% in therefinery, which accounts for 10% of Brazil’stotal refining capacity.
• Royal Dutch Shell has extended aforce majeure on its Nigerian Forcados oil
shipments until the end of July.Shell’s JV with Nigerian NationalPetroleum Corporation imposed
the force majeure in March, in order to freethe company from contractual obligationsafter its trans-Escravos pipeline wasattacked by militants. Elsewhere, Shell is planning to develop a large LNG facilityin eastern Russia. Shell has 27.5% in thenearby Gazprom-operated Sakhalin 2,which recently began producing LNG off
the Russian coast. The Sakhalin 2 plantcurrently processes 9.6 million tons/year of LNG.
• PetroChina plans to bring itsexpanded Dushanzi refinery online aroundthe end of July. The planned offi-cial startup of the refinery – withnearly doubled annual crude pro-cessing capacity of 200,000 BOPD – mayhelp explain China’s high crude oil importsin May. Dushanzi will be the third majorrefinery to open in China this year.
PetroChina is also constructingpipelines to transport oil and gas fromMyanmar to China. The oil and gas pipe -lines will run parallel to each other. The1,100-kilometer oil pipeline is expected to transfer 20 million tonnes of crude toChina from the Middle East and Africaannually, while the gas pipeline will trans-port 12 billion cubic meters every year.
• Origin and Epic Energy are expandingcapacity on the 935 kilometer South West Queensland Pipeline and QSN Link in Australia.
• ERG SpA and Shell still plan to buildan LNG terminal on the island of Sicily withoperations starting in 2013, well beyondthe originally planned 2010 start-up date.The plant will have an annual capacity of 8 billion cubic meters. Last month localofficials said they were still consideringwhether or not to allow construction of the terminal.
• Eni is attempting to sell its 84,000-BPD refinery in Livorno, Italy, but said it doesn’t expect to make a decision
before the end of the summer.The refinery mainly producesgasoline and diesel fuel. A com-
pany spokesman said he was unsure if the refinery would fetch an adequate pricein current economic conditions.
Estimated Average Wellhead Price For Natural Gas
Dec-08 Jan-08 Feb-09 Mar-09 Apr-09 May-09
Price ($ per Mcf) 5.87 5.15 4.16 3.72 3.43 3.45
Price ($ per MMBtu) 5.70 5.00 4.04 3.62 3.33 3.35
Note: Prices were converted from $ per Mcf using an average heat content of 1,029 Btuper cubic foot as published in Table A4 of the Annual Energy Review 2006. Source: Energy Information Administration, Office of Oil and Gas.
List with PLS – Phone: 713-650-1212 or Fax: 713-658-1922
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Providing quick, quiet marketing and divestment services.Phone: 713.650.1212 • Fax: 713.658.1922 • www.plsx.com In Canada, Call 403.294.1906
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