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  1. IHS Markit: Apache’s Alpine High discovery in ‘historically underperforming area’

    Analysis from IHS Markit indicates Apache Corp.’s southern Delaware basin Alpine High oil and gas discovery sits in a “historically underperforming area” where previous well results from other operators have been poor. Apache has secured more than 300,000 contiguous acres, mainly in Reeves County, Tex., that it says hold an estimated 75 tcf of gas and 3 billion bbl of oil in the Barnett and Woodford shales alone ( OGJ Online, Sept. 7, 2016 ). The firm also sees oil potential in the shallower Pennsylvanian, Bone Springs, and Wolfcamp formations. “Nearly 10 years ago, several Permian basin specialist companies left the area after drilling a handful of unsuccessful wells,” explained Imre Kugler, senior consultant, energy research, at IHS Markit, and lead author of a new report entitled IHS Energy Plays & Basins Analysis—Apache’s Alpine High: An Early Look. “Admittedly, unconventional drilling and completion technology has advanced a good bit since then, but well performance is critical, particularly in the current oil-price environment,” Kugler said. “You don’t have as much of a cushion or tolerance for failure or poor performance at today’s prices as you did at $120[/bbl].” Kugler said some quality Wolfcamp wells owned by a variety of operators sit within 10 miles of the Apache acreage. However, there are also some poor performing wells nearby, so “it remains to be seen whether Apache’s initial success in the play will carry over into the Wolfcamp formation,” he said. “It’s too early to tell, but more drilling and appraisal will be necessary.” According to the IHS Markit analysis, early economics for the area indicate gas production breaks even near $2.50/Mcf, and oil production breaks even at $55/bbl assuming a constrained 24-hr initial production rate equates to peak-month production and a $5-million well cost, the midrange guidance. If recently published IP rates indicate true 24-hr rates, then breakevens for the play will be closer to $65/bbl and $3/Mcf. Kugler also noted interest in the Woodford gas play where the ratio of oil at peak is about 15%, but a six-well sample shows a wide variance of 1-19%. The projections only consider Woodford as there is just one Barnett well drilled in the area to date. Kugler said “to make this part of the play viable, gathering infrastructure will need to be built out,” adding that “the play’s proximity to the nearby Waha hub helps.” He noted that associated gas production has doubled from 0.5 bcfd to nearly 1 bcfd during 2014-16 with Wolfcamp and Bone Spring development. “To fully monetize production from this gas and NGL play, additional takeaway capacity may be required,” he said. Apache is increasing its 2016 capital spending by $200 million, more than 25% of Apache’s total capital spending program, to accelerate the delineation and development of Alpine High.

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    Tue, 27 Sep 2016

  2. Noble clinches Leviathan natural gas export deal

    Noble Energy Inc. and its partners have agreed to supply natural gas from the Leviathan field offshore Israel to Jordan’s National Electric Power Co. for power production facilities.

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    Tue, 27 Sep 2016

  3. RAK Petroleum brings two gas fields on stream offshore Ivory Coast

    RAK Petroleum PLC said Marlin and Manta gas fields offshore the Ivory Coast were brought on stream following completion of a 4-year, $850-million development by operator Foxtrot International LDC, Abidjan, on Block CI-27.

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    Mon, 26 Sep 2016

  4. Jordanian firm agrees to buy Leviathan gas

    Partners in the Leviathan natural gas project offshore Israel have signed an agreement to supply as much as 45 billion cu m of gas to a Jordanian power company.

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    Mon, 26 Sep 2016

  1. Production license sought for Galt prospect on Gaspe Peninsula

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    Mon, 26 Sep 2016

  2. Shell, Emerson modernize Malampaya automation systems

    Emerson has upgraded automation technology to improve the reliability of Shell’s Malampaya gas production facilities offshore and onshore the Philippines.

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    Tue, 27 Sep 2016

  3. Santos group to prolong production from Oyong, Wortel fields

    The group led by Santos Ltd. of Adelaide has agreed to perform the work needed to extend by at least 2 years the production lives of Oyong and Wortel oil and natural gas fields in the Sampang production-sharing contract area offshore Indonesia.

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    Mon, 26 Sep 2016

  4. Dynegy Reports Illinois Power Agency Capacity Procurement Event Results

    The Illinois Commerce Commission announced yesterday that Dynegy (NYSE:DYN) is one of the winning suppliers of the Illinois Power Agency's MISO Zone 4 capacity procurement event.

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    Sat, 24 Sep 2016

  5. BOEM to offer 47 million acres in Lease Sale 247

    The Bureau of Ocean Energy Management (BOEM) has announced that it will offer approximately 47 million acres offshore Louisiana, Mississippi, and Alabama. 

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    Fri, 23 Sep 2016

  6. Middle East operators address aging offshore facilities

    The Middle East faces a substantial challenge to keep hundreds of aging offshore oil and gas structures operating safely and legally beyond their original design life, according to DNV GL Oil & Gas.

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    Fri, 23 Sep 2016

  7. Expectations fade for more gains in Iraqi oil output

    Expectations for further gains in Iraqi oil production have fallen victim to the country’s deteriorating finances and struggle with Islamic State militancy.

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    Fri, 23 Sep 2016

  8. MARKET WATCH: NYMEX, Brent crude oil prices gain for second day

    Light, sweet oil prices on the New York market and Brent prices on the London market both rose for a second consecutive day Sept. 22 while US natural gas futures prices fell after the government reported a storage increase.

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    Fri, 23 Sep 2016

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