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Oil & Gas Financial Journal

GeoMechanics International Inc. (GMI) has launched a new service that provides 3D mechanical simulations of the stress field around salt structures. This service avoids assumptions that are generally used for wellbore stability analyses, such as the vertical stress being a principal stress, and thus is capable of providing a more reliable prediction of safe mud weights.

Houston-based GeoMechanics is a wholly-owned subsidiary of Baker Hughes Inc.

Triangle to amp up Windsor exploration; divest Fayettville assets

Triangle Petroleum Corp. has reviewed the company's portfolio of projects and has elevated the 516,000 gross acre Windsor block in the Maritimes basin to Triangle's primary shale gas project and elected to sell its 10,400 net acres in Conway County in the Fayetteville shale project.

Dr. Stephen A. Holditch, director of Triangle, comments "I am cautiously optimistic we have discovered a world class unconventional gas reservoir."

Based upon an estimated resource of 89 to 109 bcf per section from Schlumberger's log analysis, Triangle believes the project has the gas in place to drive the company's exploration program.

Technical data and interpreted results of the seismic programs are being actively marketed to a select group of US and Canadian energy companies to join Triangle as a joint venture partner. A significant portion of the company's resources is dedicated to this process and one or more partners are expected to participate in this summer's drilling program.

In related news, based upon escalating land prices in the company's Arkoma basin – Fayetteville shale project and a lack of progress accelerating the exploration program, Triangle has decided to divest its 10,400 non-operated net acres in the project. The sale is expected to be concluded before by summer.

Former KCS Energy executives partner with EnCap to form Force 5 Energy

EnCap Investments LP, certain members of the former senior management team of KCS Energy Corp., and Charlie Prioleau have recently formed Force 5 Energy LLC, to acquire, exploit, and produce oil and gas reserves principally in south and east Texas and northern Louisiana.

The new Houston-based private company received an equity commitment from various affiliates of EnCap Investments and other minority investors for $100,000,000, which can be drawn down for the purposes of funding Force 5 Energy's acquisition and exploitation business plan. The new company is headquartered in Houston.

Cliff Foss is Force 5 Energy's president and CEO. He was previously SVP and senior manager of KCS Energy Corp. which was merged with Petrohawk Energy Corp. Other members of the company's senior management team include:
•Charlie Prioleau, EVP – Finance & CFO
•Wes VanNatta, EVP – Engineering
•Bruce Hamilton, EVP – Land and Legal
•Jim Travillo, EVP – Geology and Geophysics

Origin raises $1.54B on credit facility

Origin Energy Ltd. has raised $1.54 billion including oversubscriptions of $420 million from the syndication of its underwritten 3-year credit facility. Origin will pay a margin of 65 basis points per annum above the applicable base rate for each tranche of the facility.