Another Wyoming energy company is proposing to revitalize an aging oil field in central Wyoming using carbon dioxide to enhance oil recovery, federal officials said.
As part of the project, Devon Gas Services LP is seeking Bureau of Land Management permission to construct a 47-mile long pipeline to move carbon dioxide gas from southwest Wyoming to the Beaver Creek field in Fremont County, according to BLM officials.
BLM spokeswoman Missy Cook said the BLM's Lander field office is requesting public input on the company's proposed pipeline right-of-way for the construction and operation of the 8-inch diameter buried pipeline.
The pipeline would be used to transport carbon dioxide gas - gathered from the ExxonMobil Shute Creek-LaBarge gas processing plant and Bairoil metering facility to the Beaver Creek Gas Plant located south of Riverton.
Enhanced oil recovery typically involves efforts to improve the flow of oil from a reservoir that has already been produced by conventional means. Over time, oil reservoir pressure drops off, and so does the rate of oil production.
Carbon dioxide, in liquid form, mixes with the oil and pushes it to production wells. The carbon dioxide can then be separated from the oil and reused, or stored in the oil reservoir so that it is not released into the atmosphere.
BLM officials estimated in a scoping statement that approximately 35 million standard cubic feet per day of carbon dioxide would initially be transported through the buried pipeline.
Cook said the majority of the proposed route falls on BLM-administered public lands. The pipeline would parallel other pipelines, electric power distribution lines, or roads for about 35 miles. The remaining 12 miles of pipeline would involve state and private lands.
Oil production in Wyoming has declined at an annual rate of about 5 percent since 1991, according to Wyoming Geological Survey figures.
Injections of carbon dioxide to increase oil recovery has been employed since the early 1950s nationwide, but the first commercial application of carbon dioxide flooding in Wyoming was Amoco's Bairoil Project in 1986.
Last year, the Houston-based Anadarko Petroleum Corp. announced plans to pump carbon dioxide into its Patrick Draw Field Monell Unit to increase pressure and to push the oil to production wells.
Anadarko also used carbon dioxide to revitalize the century-old Salt Creek oil field near Midwest in Natrona County.
Cook said if approved, construction on the pipeline is estimated to take from 8-10 months to complete. Devon officials have set a tentative, in-service date for the pipeline project for June 2008.
source news : casperstartribune.net
Italian oil and gas giant Eni SpA confirmed investors' fears about delays and cost overruns at its mammoth Kashagan oil project in Kazakhstan, but insisted its strong position in the growing European gas market and its alliance with Russia's OAO Gazprom will power the company forward.
The announcement came as Eni, the world's sixth-largest oil company by market cap, reported that fourth-quarter net profit slipped to EUR1.52 billion, 28% lower than the same quarter a year earlier, due to lower refining margins, the depreciation of the U.S. dollar against the euro and production disruptions.
Eni said fourth-quarter adjusted net profit, the profit figure most closely watched by analysts and which excludes changes in the value of inventories and special items, dropped 1.7% to EUR2.36 billion from EUR2.4 billion. The company's board proposed a 2006 dividend of EUR1.25 a share, compared with EUR1.10 the previous year.
Eni confirmed that its most important exploration project, the Kashagan field in the Caspian Sea with proven reserves of more than 13 billion barrels, won't begin pumping until the second half of 2010, a full two years later than had previously been disclosed.
That is the latest in a series of setbacks at Kashagan, where Eni had initially expected to start pumping oil in 2005.
In addition, the price tag for the project keeps climbing. Though the company didn't disclose exactly how far over budget the project had come, its effect can be seen in Eni's overall capital expenditure plan, which has shot up to EUR44.6 billion for the 2007-2010 period, a 27% hike over the amount it had forecast to spend during the 2006-2009 period.
Still, Chief Executive Paolo Scaroni was upbeat about Kashagan, saying that the company was now confident that the reserves would be greater than previously estimated, and that production would plateau at 1.5 million barrels a day in 2019, instead of its previous estimate of a 1.2 million barrel per day plateau in 2016.
"It's a mix of bad and good news," he said in a telephone interview. "Yes, the time and the costs of the project are growing. The good news is that Kashagan is even a bigger giant than we thought. Every well we have drilled has been a success.
Even the satellite areas are looking promising."
The company forecast its 2007 daily production would remain at 1.77 million barrels of oil per day on the year, but predicted 3% average annual growth through 2013.
Scaroni was also confident that Eni was uniquely positioned to benefit from trends of increased European and U.S. demand for gas. Eni's Gas and Power division - which accounts for 18% of all gas sold in Europe - had an adjusted operating profit of EUR1.27 billion in the fourth quarter, an increase of 42% over the same period a year earlier.
Its gas revenues have acted as a buffer against declining oil prices. He also said that rising concerns about limiting carbon emissions in both the U.S. and Europe stood to further increase a switch to cleaner burning gas.
"Whatever we do in the direction of Kyoto means more gas and less coal," he said. "So that's fairly positive for Eni."
Last autumn, Eni signed a wide-ranging accord with OAO Gazprom, which extended the Italian company's supply contracts with the Russian monopoly through 2035. The two also agreed to jointly invest in exploration projects in Russia.
Scaroni said that bidding for some assets of bankrupt Russian oil firm OAO Yukos including OAO Arcticgas and ZAO Urengoil, could begin next month. He said Eni would likely make a joint bid with Russian firm ESN. He also noted that the Gazprom accord had been essential in opening up Russia for Eni.
"Our relationship with the country goes through Gazprom," said Scaroni.
He also downplayed the concern expressed by the European Union and others about the growing power of Gazprom in ensuring Europe's future gas supply.
He said Europe had to come to terms with the fact that it will be impossible to meet the continent's growing gas needs without Gazprom's help. "Their role will be crucial to European supply and to think about doing it another way is impossible," said Scaroni.
Eni and Gazprom also discussed jointly investing in exploration projects in Africa, but Scaroni declined to give specifics. He said that in certain countries, such as Angola, which has strong relations with Russia, "Going in with Gazprom is a plus."
(The Wall Street Journal Europe, 23/02/2007)
Japan and Russia pledged to strengthen reciprocal relations in oil and natural gas development and boost trade at a ministerial meeting in Tokyo.
Russian energy minister Viktor Khristenko and Japanese foreign minister Taro Aso discussed two oil and gas projects in Russia's Sakhalin island and an East Siberian oil pipeline project, a Japanese foreign ministry official said, speaking on condition of anonymity. The two ministers met for two hours.
Japan, which imports 89 percent of its oil from the Middle East, is increasing its reliance on Russian energy assets such as oil, gas, and uranium enrichment process to strengthen its supply security. That contrasts with Europe, Russia's largest energy market, where nations has discussed cutting reliance on Russian oil and gas after a series supply disruptions.
``Japan should expand oil and gas imports from Russia,'' Hidetoshi Shioda, senior energy analyst at Mizuho Securities Co. in Tokyo said by telephone. ``Cutting dependence on Middle East means mitigating risks of any supply disruption in the region in the years ahead.''
In the talks, Khristenko called Japan a vital market for Russia's oil and gas exports, the official said. The two ministers agreed that their countries should be able to expand trade in areas including energy, fishery and agricultural products, transportation and information technology.
Khristenko told Aso that Russia has completed a 700- kilometer section of its proposed 4,300-kilometer oil pipeline from Taishet in eastern Siberia to Perevoznaya on Russia's Pacific coast, the official said.
Pipeline
In the first phase of the project, Russia will build a pipeline to Skovorodino by the end of 2008 and construct an extension line to Perevoznaya in the second phase. Japan has lobbied for the construction of the pipeline to Perevoznaya to boost imports of crude oil produced in eastern Siberian fields.
Aso told Khristenko that Japan is keen to import liquefied natural gas from the Exxon Mobil Corp.-led Sakhalin-1 project, which started oil exports from Russia's DeKastri terminal last year, the official said.
Tokyo Electric Power Co. and other Japanese LNG buyers have lobbied Exxon Mobil to link up with the Royal Dutch Shell Plc.- led Sakhalin-2 project. The Japanese utilities have asked Exxon to call off a plan to pipe gas from Sakhalin island to Japan or China, and instead turn the fuel into LNG.
In December, Royal Dutch Shell Plc. and its two Japanese partners agreed to sell Russia's state-run OAO Gazprom half their stakes in the Sakhalin-2 venture, which includes Russia's first LNG export terminal. Tokyo Electric, Tokyo Gas Co. and other utilities have signed supply contracts from Sakhalin-2 to start importing about 5 million metric tons a year of LNG in the next few years.
Russian Premier Mikhail Fradkov is due visit Tokyo to hold to discuss economic and trade relations with Aso and Prime Minister Shinzo Abe later this week.
To contact the reporters on this story: Shigeru Sato in Tokyo at ssato10@bloomberg.net ;
French oil company Maurel et Prom said the exploration well Tioni-1 on Kouilou permit, whose main objective was the Vandji sandstone reservoir, was plugged and abandoned last Thursday, Feb 22.
Following the sale agreement signed with Eni SpA last week, Maurel et Prom's share in the Kouilou permit in Congo could decrease from 65 to 15 pct, it noted.
Maurel et Prom said last Thursday evening it will sell its stake in the operating licenses for the M'Boundi and Kouakouala oil fields in the Republic of Congo to Eni and will cut its stake in the exploration license for the Kouilou area from 65 pct to 15 pct for a cash total of 1.434 bln usd.
Burren Energy PLC, which owns the remaining 35 pct of the license, said drilling work will continue on the Kouilou field despite the disappointing results at Tioni-1.
'They have a pretty intensive exploration programme and they are not changing it. They still believe there's oil to be found (in Kouilou),' a Burren Energy spokesman said.
Around three more wells will be spudded to target the deeper Vandji reservoir, he said.
Tioni-1 is located 5 kilometres to the southwest of the shallow Loufika oil discovery, which the group announced in September last year.
Burren Energy is spending about 20 mln usd for its oil exploration projects in Congo.
Copyright AFX News Limited 2007. All rights reserved.
South Korea has earmarked 20 billion won ($21.3 million) to provide 50,000 tonnes of heavy fuel oil to North Korea as part of a recent nuclear agreement, the Unification Ministry said Monday.
'The government embarked on internal preparations to provide 50,000 tonnes of heavy fuel oil for North Korea in accordance with the six-nation agreement,' said Yang Chang-seok, spokesperson for the ministry.
The oil shipment will cost an estimated 20 billion won, including delivery expenses, he said, adding that the details will be worked out during the upcoming meeting of a working group on energy aid.
The government will commission the Public Procurement Service to choose a local oil refinery for the project. It will cost about $350 per metric ton, and incidental charges of delivery will constitute about 20 percent, Yang said.
(c) Indo-Asian News Service
(Xinhua)
The proven oil reserve as submitted by Geosystems Engineering, Inc., Dallas, Texas to Hemi Energy Group, Inc. is 2.15 million proved BOE and the probable reserve of 5.1 million BOE for Hemi's five leases in Woodson County, Kansas. The total potential reserves are 7.2 million Barrels Of (oil) Equivalent for this report.
Hemi does not yet have the formal written report, therefore, we are releasing only the basic conclusions of the reserve report about the proven and probable oil reserves in BOE's for only the five Woodson County leases with mature oil wells. Hemi is very excited about the conclusions for both of the oil reserves in the report.
However, Hemi needs to see all of the information, including geological make up of the formations, engineering reports, economic and valuation variables along with any other pertinent data, before Hemi accepts the formal independent geological reserve report. After Hemi management has had an opportunity to read and study the entire written report they will release any additional information which is relevant to the oil reserves on these leases in Woodson County, Kansas.
Hemi Energy Group is an independent crude oil and natural gas producer employing a unique business model capitalizing on technological advances to exploit mature fields with millions of barrels of proven oil remaining in the ground. Using attractive lease/royalty packages, the company's forward-thinking strategy has placed it in an enviable position at a time when prices and global demand for oil continue to rise.
Building on decades of experience in enhanced oil recovery, Hemi has successfully amassed a substantial and attractive portfolio of these high-quality domestic properties. By streamlining operations through cutting-edge technologies, Hemi has the ability to operate more effectively and efficiently than larger oil companies.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors inherent in doing business. Forward-looking statements may be identified by terms such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "forecasts," "potential," or "continue," or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The company has no obligation to update these forward-looking statements.
For additional information, please go to http://hemienergy.com or http://www.stockinformationsystems.com/c/HMGP/index.html.
Contact:
Source: Hemi Energy Group, Inc.
New Frontier Energy, Inc., a natural resource company engaged in the exploration, acquisition and development of oil and gas properties in the United States, today announced a definitive agreement securing a drilling rig for the Company's 2007 Slater Dome development program. The terms of the contract specify that New Frontier Energy drill a minimum of five wells, and as many as twenty, with the initial well expected to be spud in June.
"We are pleased to have secured a drilling rig capable of supporting our 2007 development drilling program at the Slater Dome area," said Paul G. Laird, President and CEO of New Frontier Energy. "With 12 wells already permitted, we are making good strides towards our goal of expanding production and maximizing cash flow at Slater Dome. Depending on the progress made with our drilling schedule, and securing additional permits we are hopeful to achieve as many as 20 wells during this season."
About New Frontier Energy, Inc.
New Frontier Energy, Inc. is an independent energy company engaged in the exploration, development and production of natural gas and oil and the acquisition of natural gas and oil properties. New Frontier Energy has interests in three principal properties, the Slater Dome Prospect, located in northwest Colorado and south central Wyoming (the "Slater Dome Prospect"), the Flattops Prospect located in southwest Wyoming (the "Flattops Prospect") and the Nucla Prospect, located in western Colorado (the "Nucla Prospect"). The company's primary focus is on the development and expansion of the Slater Dome and the Flattops Prospects. Both are coal bed methane projects located in the Sand Wash Basin in northwest Colorado and southwest Wyoming -- the southeastern end of the "Atlantic Rim". The company owns a majority of the limited partnership interests in the 18-mile gas gathering line that delivers gas from the Slater Dome and Flattops prospects to a transportation hub. New Frontier Energy also holds 28 leasehold interests in approximately 38,000 gross acres in its Nucla Prospect located in southwest Colorado. The company's common stock is listed on the over the counter bulletin board under the symbol "NFEI." Additional information about New Frontier Energy, Inc. can be found at the Company's website www.nfeinc.com.
Forward-looking Statements
The statements contained in this press release which are not historical fact are forward-looking statements that involve certain risks and uncertainties including, but not limited to, decreases in prices for natural gas and crude oil, unexpected decreases in gas and oil production, the timeliness, costs and success of development activities, unanticipated delays and costs resulting from regulatory compliance, and other risk factors described from time to time in the Company's periodic reports filed with the Securities and Exchange Commission. No assurances can be given that these statements will prove to be accurate. A number of risks and uncertainties could cause actual results to differ materially from these statements. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.
Contact:
For further information contact:
Paul G. Laird
President
New Frontier Energy, Inc.
Phone: (303) 730-9994
Investor Contact:
Bill Conboy
Vice President
CTA Integrated Communications
Phone: (303) 665-4200
Source: New Frontier Energy
