Daily Archives: May 14, 2012
InterOil said today its net profit for the quarter ended March 31, 2012 was $9.4 million compared with a net profit of $0.7 million for the same period in 2011, an improvement of $8.7 million.
First Quarter 2012 Highlights and Recent Developments
- As of April 6, 2012, InterOil drilled the Triceratops-2 well in Papua New Guinea through the entire carbonate interval to a total depth of 7,336 feet (2,236 meters). The acquisition of wireline logs was completed on April 14, 2012 and the testing program is ongoing. The logs and DST pressure data indicate two separate, carbonate reservoir intervals with separate pressure systems and potentially separate or stacked hydrocarbon pay. The upper reservoir interval contains gas and condensate which preliminary pressure data indicates is in communication with the gas and condensate tested 3.8 kilometers away in the Bwata-1 well. The deeper zone lies below a 264 feet (80.5 meter) thick marl and argillaceous limestone interval, likely an intra-formational seal, where an independent formation evaluation indicates potential liquid hydrocarbons. The presence of movable hydrocarbons in the lower reservoir interval, at this stage, has not been confirmed with testing. However, a small volume of light oil of condensate composition was recovered.
- Net profit for the quarter ended March 31, 2012 was $9.4 million. The operating segments of Corporate, Midstream Refining and Downstream collectively derived a net profit for the quarter of $28.6 million, while the investments in the development segments of Upstream and Midstream Liquefaction resulted in a net loss of $19.2 million.
- Subsequent to quarter end, InterOil signed a binding Heads of Agreement with Pacific Rubiales Energy to be able to earn a 10.0% net (12.9% gross) participating interest in PPL237, which includes the Triceratops structure. The transaction contemplates staged initial cash payments totaling $116.0 million, an additional carry of 25% of the costs of an agreed exploration work program, and a final resource payment. PRE has paid the initial $20 million of the staged cash payments. Definitive agreements are in the process of being finalized.
InterOil’s Chief Executive Officer Phil Mulacek commented, “We are pleased to report another successful quarter of profitability from our operating business. Additionally, we are excited to welcome Pacific Rubiales as partners in PPL 237, the company brings valuable expertise to our team.”
In regards to the ongoing LNG partnering process, Mr. Mulacek stated “We are continuing to work with our advisors to obtain a strategic partner. We have received conforming and non-conforming bids for the LNG partnering and sell down of an interest in the Elk and Antelope fields that we believe would be accretive to shareholders. We are now set to engage with a shortlist of significant LNG industry participants with a view to concluding discussions and entering into an agreement this quarter. The end result of the partnering process is envisioned to fully satisfy all the terms of the 2009 LNG Project Agreement.”
As to the Triceratops-2 well, Mr. Mulacek noted that, “Despite mechanical difficulties in obtaining a successful drill stem test from zones of interest in the lower hydrocarbon interval, we are very encouraged by gas and liquid hydrocarbon testing ongoing at the Triceratops-2 well. A plan is in place to evaluate the entire drilled interval and would likely include casing the entire interval and perforating zones of interest to obtain definitive results. Our prospect inventory is maturing and we anticipate that it will support our goal of a multi-year, multi-well exploration program. We believe that these achievements, combined with our strong balance sheet, support our continued growth and operational success.”
- InterOil Net Profit Climbs (USA) (mb50.wordpress.com)
by Jon Mainwaring Press Release Monday, May 14, 2012
Norwegian deepwater drilling company Seadrill said Monday that it expects earnings for the second quarter of 2012 to be favorably affected by the starting up of operations in April and June of its ultra-deepwater semi-submersible rigs West Leo (UDW semisub) and West Capricorn (UDW semisub).
Reporting its first quarter results, the firm said that it also expects to receive a full quarter of earnings from its harsh environment jack-up West Elara (490′ ILC) – which began operations for Statoil in March.
For 1Q 2012 Seadrill reported operating profits of $456 million, compared with $430 million for 1Q 2011. However, net income was lower than for 1Q 2011, at $480 million compared with $934 million, on account of a one-off $477 million gain last year in connection to the deconsolidation of Seadrill’s subsidiary Well Services.
Total revenues for the three month period to March 31 were broadly in line with last year at $1,050 million (1Q 2011: $1,100 million).
“We are pleased to report another solid quarter for Seadrill reflecting a strong underlying operational performance,” said Seadrill Chief Executive Officer Alf Thorkildsen.
“Furthermore, the outlook and fundamentals for the oil and gas industry remain strong. Encouraging exploration successes in established as well as frontier basins are leading to an increasing backlog of appraisal and development drilling projects. These strong fundamentals support the expectation of continued strength in all sectors of the contract drilling industry for the foreseeable future. As a consequence we have ordered six newbuilds in the last three months and the Company now has 18 drilling units under construction.”
A former engineer, Jon Mainwaring is an experienced journalist who has written about the technology, engineering and energy industries. Email Jon at email@example.com.
- Strong Demand for UDW Drillships Spurs Seadrill to Order One More from SHI (South Korea) (mb50.wordpress.com)
- Seadrill Orders Harsh Environment Rig in South Korea (mb50.wordpress.com)
- South Korea: Seadrill Confirms Samsung Drillships Contracts (mb50.wordpress.com)
FALFURRIAS, Texas – After several hours of surveillance, the pursuit was on. A smuggler loaded down with illegal immigrants in an SUV last month tried to outrun a trail of law enforcement vehicles, with more waiting up ahead on Highway 281 north of Falfurrias.
Finally, yanking his vehicle onto the shoulder, stopping short of a landowner’s fence, the smuggler’s human cargo bailed out, running into the brush, followed closely by sheriff’s deputies from Brooks and Jim Wells County, and U.S. Border Patrol agents.
“We’re doing it with the manpower that we have and that’s where it hurts,” said Capt. Joe Martinez, of the Jim Wells Sheriff’s Office. “We don’t have the manpower.”
According to Susan Durham, executive director of the South Texans’ Property Rights Association, most counties do not get federal funding for more manpower, unlike those that are within 25 miles of the border.
“There’s already funds in place for them,” Durham said. “But that’s not where the border is anymore.”
Durham said landowners often are being overrun by smugglers who crash through fences and gates, going cross-country from ranch to ranch, usually in stolen trucks.
She said just in the past eight months, several ranches in Jim Wells and Brooks counties have seen 24 bailouts.
Each incident has averaged $540 in repairs to fences and gates, Durham said.
“Now if they compensate the people right away, it would be a lot different,” said Raul Garcia, a longtime rancher.
After at least two bailouts on his property, Garcia said he was warned he would be prosecuted if he shot anyone.
Garcia said he’s heard other ranchers are putting spikes facing traffic on their ranch gates.
“They try to ram them, they’ll bust the radiator,” Garcia said.
Durham said her organization helped revise the state’s transportation code to reimburse landowners for the property damage.
She said the money initially would have been excess funds from the sale of abandoned vehicles.
“Excess means what’s left over after paying expenses such as towing and storage,” Durham said.
“Smugglers are gaming the system by using vehicles that are stolen or that have high liens on them,” Durham said.
She said they also use the “innocent friend excuse,” telling authorities they loaned the vehicle to a friend unaware it would be used for smuggling.
As a result, Durham said her organization will go back to the Texas Legislature, and even ask the federal government for help.
- South Texas county official calls for DA to resign (click2houston.com)
- South Texas DA Charged With Extortion, Fraud (abcnews.go.com)