A&D Watch December 2005 - Oil and Gas Investor
A&D Watch December 2005 - Oil and Gas Investor
A&D Watch December 2005 - Oil and Gas Investor
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'<br />
<strong>December</strong> <strong>2005</strong>, Vol. 19, No. 12<br />
Shale sells. “Right now we are hearing the magic ‘shale’ word a lot,” Jeff Robertson,<br />
senior vice president, Lehman Brothers, said at the annual IPAA meeting in Houston.<br />
“Oftentimes companies can mention ‘shale’ enough times in their investor presentations<br />
<strong>and</strong> their stock price will have come up by the time the presentation is over. What<br />
investors don’t realize is the amount of risk involved.”<br />
Appalachian, Illinois. The Appalachian <strong>and</strong> Illinois basins have technically recoverable<br />
resources of 4.8 billion barrels of oil <strong>and</strong> 79- to 96 trillion cubic feet of gas, according<br />
to the Interstate <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong> Compact Commission. The gas reserves are mainly in<br />
coalseams, Devonian-age shales, <strong>and</strong> low-permeability tight-gas s<strong>and</strong>s. <strong>Oil</strong> reserves<br />
include heavy oil, oil s<strong>and</strong>s <strong>and</strong> oil shale. <strong>Oil</strong> s<strong>and</strong>s, primarily in Kentucky, are estimated<br />
at 3- to 4 billion barrels of oil in place, the commission reports.<br />
Dayrates. New contracts for Todco rigs are in the low-$80,000s up from between<br />
$50,000 <strong>and</strong> the mid-$60,000s, Lehman Brothers reports. Ensco International<br />
signed a Gulf jackup at $140,000 per day, up from $85,000, to work for Anadarko<br />
Corp.<br />
Rowan Cos. has signed three 116-C Gulf jackups at $130,000 (Cont. on p. 48.)<br />
Recent Deal-Making<br />
Special Report:<br />
Seitz <strong>and</strong> Transier’s Endeavour<br />
A&D Marketplace Notes<br />
TARC gains 56.4<br />
Bcfe/proved in DJ Basin.<br />
See p. 24.<br />
Santos takes in<br />
Tipperary. See p. 24.<br />
Dune revises<br />
Voyager deal. See<br />
p. 22.<br />
Parallel adds 2.9<br />
MMBOE/proved.<br />
See p. 24.<br />
THX to buy 88 Bcfe/proved<br />
from KMG. See p. 23.<br />
ERT trades for WI in<br />
Tiger discovery. See<br />
p. 23.<br />
Cadence gains Aurora’s<br />
295K net acres. See p. 21.<br />
Unit adds 42.5<br />
Bcfe/proved.<br />
See p. 25.<br />
Chesapeake gains stake<br />
in <strong>Gas</strong>tar. See p. 22.<br />
Chesapeake picks up<br />
CNR’s 1.1 Tcfe/proved.<br />
See p. 21.<br />
Burlington picks up 200K<br />
net acres. See p. 21.<br />
Delta to buy<br />
Castle Energy.<br />
See p. 22.<br />
ATP buys OCS properties<br />
for $40MM. See p. 21.<br />
Inside...<br />
Editor’s Commentary . . . . . . . . . . . . . . 2<br />
Special Report: Endeavour International<br />
Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4<br />
On The Market . . . . . . . . . . . . . . . . . . . . 7<br />
U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9<br />
Canada . . . . . . . . . . . . . . . . . . . . . . . . . 15<br />
International . . . . . . . . . . . . . . . . . . . . . . 17<br />
Service & Supply . . . . . . . . . . . . . . . . . . 17<br />
Divestment Services . . . . . . . . . . . . . . . 19<br />
E&P A&D News . . . . . . . . . . . . . . . . . . 20<br />
A&D U.S. . . . . . . . . . . . . . . . . . . . . . . . . 21<br />
A&D Canada . . . . . . . . . . . . . . . . . . . . . 25<br />
A&D Australia. . . . . . . . . . . . . . . . . . . . . 27<br />
A&D Europe . . . . . . . . . . . . . . . . . . . . . . 27<br />
A&D FSU . . . . . . . . . . . . . . . . . . . . . . . . 28<br />
A&D Latin America . . . . . . . . . . . . . . . . 28<br />
Joint Ventures . . . . . . . . . . . . . . . . . . . . 28<br />
New Companies . . . . . . . . . . . . . . . . . . 28<br />
A&D Advisors. . . . . . . . . . . . . . . . . . . . . 29<br />
Capital Providers . . . . . . . . . . . . . . . . . . 29<br />
Upstream Analysts . . . . . . . . . . . . . . . . 30<br />
E&P People . . . . . . . . . . . . . . . . . . . . . . 30<br />
E&P Other . . . . . . . . . . . . . . . . . . . . . . . 31<br />
In Memoriam . . . . . . . . . . . . . . . . . . . . . 32<br />
A&D Networking Opportunities . . . . . . . 33<br />
S&S A&D News<br />
A&D U.S. . . . . . . . . . . . . . . . . . . . . . . . . 34<br />
A&D Canada . . . . . . . . . . . . . . . . . . . . . 34<br />
A&D International. . . . . . . . . . . . . . . . . . 35<br />
People . . . . . . . . . . . . . . . . . . . . . . . . . . 35<br />
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . 35<br />
Financial News<br />
Equity. . . . . . . . . . . . . . . . . . . . . . . . . . . 37<br />
Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38<br />
Buybacks . . . . . . . . . . . . . . . . . . . . . . . . 38<br />
Insider Trading. . . . . . . . . . . . . . . . . . . 39<br />
Exploration News<br />
Eastern U.S.. . . . . . . . . . . . . . . . . . . . . . 41<br />
Gulf States. . . . . . . . . . . . . . . . . . . . . . . 42<br />
Midcontinent . . . . . . . . . . . . . . . . . . . . . 43<br />
Western U.S. . . . . . . . . . . . . . . . . . . . . . 44<br />
International . . . . . . . . . . . . . . . . . . . . . . 45<br />
Companies in This Issue. . . . . . . . . . . 46<br />
At Closing . . . . . . . . . . . . . . . . . . . . . . . 48<br />
© <strong>2005</strong> by Hart Energy Publishing LP. Federal copyright law prohibits unauthorized reproduction by any means <strong>and</strong> imposes fines of up to $100,000 for violations.
Editor’s<br />
Commentary<br />
Insurance Sea Change<br />
New Premiums For Gulf-Asset Insurance Are Quadrupling Or More For Some Owners<br />
From the desk of<br />
A&D <strong>Watch</strong>’s<br />
Nissa Darbonne<br />
Several Gulf of Mexico operators may be visiting their insurance brokers in London in the coming months in meetings that will decide<br />
whether these producers have to give up in the region. Word on the street is that post-KatRita insurance costs may force several Gulf independents<br />
to call it quits. One producer reports that insurance costs alone now represent a third of his lease operating expenses.<br />
New premiums are projected to cost four times more for production assets <strong>and</strong> 400% more for pipelines. Also, underwriters may begin<br />
to require separate, large windstorm deductibles, <strong>and</strong> cap this liability.<br />
“All in all, we expect our premium to increase by 110% <strong>and</strong> we might be one of the lucky ones,” another Gulf operator says.<br />
At press time, some 50% of oil production <strong>and</strong> 40% of gas production from the Gulf of Mexico remained offline, <strong>and</strong> a portion of it may<br />
never flow again. An ab<strong>and</strong>onment-services firm reports that 2006 orders to decommission destroyed or damaged platforms alone may<br />
exceed all the expected 2006 orders, pre-storms. Insurers estimate market losses for KatRita at more than $11 billion, <strong>and</strong> business-interruption<br />
claims remain open.<br />
“It is likely that no one will be fully covered anymore; rather, the producers will live with 50% to 60% of the assets under coverage <strong>and</strong><br />
simply hope that no group of storms in a 12-month period will ever destroy more than that percentage,” the operator says.<br />
The smallest of operators are most exposed, while larger producers have premium caps <strong>and</strong> they have other assets—onshore <strong>and</strong> abroad—<br />
that insurers want to underwrite, “so my best guess is that the end of the market (in the Gulf) that will suffer is middle <strong>and</strong> down.”<br />
As for the supply of Gulf assets on the market, affected producers may carry on at least until their new premium is due. “If you renewed<br />
in June, for example, you got a decent rate…However, you just might consider selling once the production is restored <strong>and</strong> before the next<br />
renewal date comes around…The producer might as well take insurance proceeds (from KatRita) <strong>and</strong> fix the damage <strong>and</strong> restore as much<br />
as possible.”<br />
Tim Sullivant, chief operating officer of Madison Energy Advisors, says, “I think everybody is concerned. Right now, it’s not going to<br />
push operators out of the Gulf unless commodity prices fall.”<br />
The Houston Exploration Co., Kerr-McGee Corp., Forest <strong>Oil</strong> Corp. <strong>and</strong> Pioneer Natural Resources are among producers divesting<br />
in the Gulf. But these plans were under way prior to this year’s major hurricanes. “Gulf properties are harder to sell,” Sullivant adds.<br />
“There are only so many players in the Gulf.”<br />
Insurance for Gulf of Mexico assets has been relatively inexpensive over the years, says Bill Martin, a Houston-based representative of<br />
Benfield Corporate Risk, which focuses on marine, energy <strong>and</strong> other areas for London-based reinsurer <strong>and</strong> risk intermediary Benfield, “It<br />
has been sold below cost…The market had been very soft.”<br />
Estimates are that, for each $1 paid in premiums for coverage of Gulf assets during the past four years, between $4 <strong>and</strong> $4.50 in loss<br />
claims have been paid, he says. “That’s not going to work.” One of the largest reinsurers, Munich Re, has already reported that its rates will<br />
go up 400%.<br />
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2 • A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong>
Editor’s Commentary<br />
During the soft market, insurance was a commodity—asset-owners didn’t look hard at<br />
how much they needed <strong>and</strong> on what assets because the premium was affordable to cover<br />
everything. “Everyone will take a look now at how much insurance they need.”<br />
Also, insurers will look harder at the assets to be covered. “There are a lot of old assets<br />
in the Gulf of Mexico that, due to reservoir technology, are still being used.” Coverage<br />
costs may have been in the past for old platforms at the same rate as for newer structures—<br />
like assigning the same cost to insure a Gulf Coast mobile home <strong>and</strong> a fixed, inl<strong>and</strong> home.<br />
Consideration will be given too to “air gap” or the difference in elevation between water<br />
<strong>and</strong> platform. “The underwriting will become much more technical.”<br />
There will likely be caps on windstorm coverage, so each producer will have to consider<br />
how to h<strong>and</strong>le this. “The board of directors doesn’t want to hear you’ve had a loss that<br />
has blown through your coverage.”<br />
One producer, whose coverage expired Nov. 1, received a 700% bigger invoice. That<br />
producer has insurance right now “but he’s not particularly happy with it…,” Martin says.<br />
“It’s a crisis when it sneaks up <strong>and</strong> bites you…That’s going to happen to people…This<br />
is going to be a hot topic.” The London insurance market is in turmoil right now, while<br />
many loss claims are still open, such as for business-interruption <strong>and</strong> pollution, he adds.<br />
Generally, he says, “higher premiums alone probably will not force the smallest operators<br />
out of the Gulf…but it may affect what you pay for assets.”<br />
Smaller Gulf operators may also encounter lowered credit ratings, thus a higher cost of<br />
capital. St<strong>and</strong>ard & Poor’s Ratings Services says restoration of Gulf production is taking<br />
longer post-KatRita than after Ivan, which affected the easternmost Central Gulf producing<br />
region <strong>and</strong> was most noted for causing Gulf shelf mudslides that rearranged pipelines like<br />
Pick-Up-Sticks game pieces. Katrina also affected most of the eastern-central Gulf region,<br />
<strong>and</strong> Rita affected all of the Central Gulf as well as some of the Western Gulf.<br />
“This is a fairly fresh story <strong>and</strong> the markets haven’t even settled yet....”<br />
—Bill Martin,<br />
Benfield Corporate Risk<br />
If there are credit downgrades, the likely targets will be small <strong>and</strong> midsize operators<br />
rather than large, diversified ones. “Strong realized commodity prices on (other) producing<br />
properties <strong>and</strong> healthy liquidity levels are expected to help offset near-term production<br />
disruptions <strong>and</strong> support ratings,” S&P reports.<br />
Already beaten down by reserve revisions, Stone Energy Corp., whose assets are nearly<br />
wholly in the Gulf <strong>and</strong> on the Gulf Coast, has been hurt not carrying business-interruption<br />
insurance, “which could cause concern if meaningful levels of production remain<br />
offline for any significant period of time,” S&P reports.<br />
New entrants will assume liabilities, such as Mariner Energy Inc., which will exp<strong>and</strong><br />
in the Gulf soon by taking in Forest <strong>Oil</strong> Corp.’s assets there in a deal that was announced<br />
post-Katrina but before Rita. As of Nov. 9, some 100 million cubic feet equivalent of Forest’s<br />
daily Gulf output remained offline, reduced from 180 million offline on Oct. 1, shortly<br />
after Rita. What remains offline is waiting for third-party processing <strong>and</strong> infrastructure<br />
repairs.<br />
The deal is a bit of a bonus to Mariner, however: at least 10 billion cubic feet equivalent<br />
of Forest’s proved, developed, producing Gulf reserves weren’t produced since Katrina.<br />
This easy revenue will go to Mariner’s balance sheet, instead, post-closing.<br />
Martin at Benfield says, “The key to senior management is to underst<strong>and</strong> this (insurance-cost)<br />
change <strong>and</strong> get in front of it in your thinking <strong>and</strong> business planning with financial<br />
<strong>and</strong> operational personnel to determine your risk profile…<br />
“This is a fairly fresh story <strong>and</strong> the markets haven’t even settled yet…This is a sea<br />
change, if you will, in terms of the offshore insurance market…I don’t suspect this will be<br />
a one-year deal <strong>and</strong> the markets will go back to where they were before.”<br />
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Clint Wetmore, Shell E&P<br />
Marty Searcy, Sawtooth Energy Partners LLC<br />
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'<br />
A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong> • 3
Special Report<br />
To The North Sea<br />
Bill Transier And John Seitz Are Applying Their International E&P Acumen To A Start-Up<br />
Interview by Taryn Maxwell<br />
When John Seitz left the president <strong>and</strong> chief executive officer post at<br />
Anadarko Petroleum Corp. in 2003, he called old friend Bill Transier.<br />
As chief financial officer <strong>and</strong> executive vice president of Ocean<br />
Energy Inc., Transier was in the throes of overseeing the sale of<br />
Ocean to Devon Energy Corp., but was already looking toward the<br />
next venture.<br />
The pair considered prospects all around the globe, <strong>and</strong> narrowed<br />
their focus to one area in particular: the North Sea, which<br />
they view as having the potential to become the next Gulf of Mexico<br />
for U.S. independents. Together they formed North Sea New Ventures<br />
(NSNV).<br />
To attract the capital they would need for such an enterprise, they<br />
decided to tap public-capital markets. Continental Southern<br />
Resources, a small publicly held E&P company with assets scattered<br />
throughout the U.S. <strong>and</strong> some in Thail<strong>and</strong>, had been recruiting<br />
Transier to head a restructuring. Instead, Transier <strong>and</strong> Seitz merged<br />
NSNV into Continental Southern through a reverse-merger in February<br />
2004, <strong>and</strong> turned it into Endeavour International Corp.<br />
(Amex: END).<br />
Today, Endeavour has amassed working interests in 18 blocks in<br />
the U.K. <strong>and</strong> various fields in Norway. Its proved reserves total some<br />
2.7 million barrels equivalent <strong>and</strong> it will drill four wells in the North<br />
Sea this year, counting on one to bring Endeavour its first exploration<br />
success.<br />
Seitz <strong>and</strong> Transier both hold the title of co-chief executive officer,<br />
an arrangement they say represents the partnership they have forged<br />
<strong>and</strong> helps them be in two places at once. Looking at what they have<br />
achieved in the past 18 months, it’s obvious they have been.<br />
A&D <strong>Watch</strong> Why form Endeavor as a public company?<br />
Transier We had a concept about bringing people together to compete<br />
effectively in the North Sea. We wanted to attract very senior<br />
people who had significant North Sea experience. But to do that, we<br />
wanted to offer them an ownership interest in the company.<br />
Of course, we also realized that to establish a company with the<br />
size <strong>and</strong> scope needed to compete effectively in the North Sea, we<br />
would need access to the type of funding sources that only a publicly<br />
traded company can access.<br />
We had lots of venture capitalists, or private-equity firms, that<br />
were willing to give us a lot of capital to get started, but they wanted<br />
too much control over the business strategy, the board <strong>and</strong> the<br />
management. John <strong>and</strong> I felt like we had the experience to run an<br />
E&P company.<br />
With the reverse-merger we raised $50 million of new equity, part<br />
of which was from our management team. The management team,<br />
including John <strong>and</strong> I, bought 10% of the offering.<br />
A&DW How did you proceed?<br />
Seitz The very first thing we did with that funding was put a technical<br />
team together. We already had a very large 3-D seismic database<br />
that we acquired within North Sea New Ventures called the<br />
MegaMerge. It’s a vast 3-D seismic program of about 94,500 square<br />
kilometers.<br />
We went to the 22nd Seaward Licensing Round in the U.K. <strong>and</strong><br />
won 18 blocks, which provides strong evidence that we have the<br />
right technical tools <strong>and</strong> people.<br />
“Our egos are in check <strong>and</strong> the only objective we<br />
have is to create value for the shareholders.”<br />
—John Seitz<br />
A&DW Does your team consist mainly of former Ocean <strong>and</strong><br />
Anadarko personnel?<br />
Seitz The entire technical team is really recruited from highly experienced<br />
North Sea personnel <strong>and</strong> their entire experience base is North<br />
Sea. The geosciences <strong>and</strong> the operating people at the executive level<br />
came from Anadarko <strong>and</strong> the finance <strong>and</strong> accounting people at the<br />
higher levels came from Ocean.<br />
A&DW Why the North Sea?<br />
Seitz It is a world-class petroleum province that has been ignored for<br />
a significant amount of time by the majors, mostly because of past<br />
low oil prices.<br />
4 • A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong>
Special Report<br />
A&DW What is your prior experience with operating in the North<br />
Sea?<br />
Seitz In the oil <strong>and</strong> gas business, most often you earn the highest<br />
returns when you’re relatively early—not the first, but when you’re<br />
early. If you look at the Gulf of Mexico 20 or 25 years ago, the independents<br />
pretty much took it over from the majors because they were<br />
focused on somewhere else in the world. We saw the same situation<br />
occurring in the North Sea. We’re in a very stable environment politically<br />
<strong>and</strong> I can’t think of anywhere else in the world I’d rather be.<br />
A&DW What potential does the North Sea hold for a start-up, U.S.<br />
independent?<br />
Transier It would be very tough to try to start Endeavour today <strong>and</strong><br />
do what we’ve done in the North Sea. The barriers to entry have gotten<br />
a lot more difficult, so our timing could not have been better.<br />
Now there are a number of companies on the scene, but we are<br />
pleased that we are recognized as a partner of choice in the region.<br />
We have more data <strong>and</strong> more exploration people focused on the<br />
North Sea than anyone.<br />
A&DW Have you experienced any difficulties operating in the<br />
North Sea?<br />
Transier It sounds odd, but the increase in commodity prices has<br />
actually worked against us. If you’re trying to build a solid E&P<br />
company over time, you have to have a balanced approach <strong>and</strong> when<br />
we went into this, we actually thought we would be doing a lot more<br />
M&A than we have.<br />
In February 2004, oil prices were $28 a barrel. We sit here today<br />
with $65 oil, so that’s made it tough for companies to want to do<br />
transactions. They all should be selling at these prices.<br />
On the flip side, the one transaction we completed has really<br />
worked well for us. It was a small company in Norway that has a<br />
producing base of a couple thous<strong>and</strong> barrels a day. With the increase<br />
in prices, the revenue from that production is covering our worldwide<br />
general <strong>and</strong> administrative costs.<br />
A&DW In what parts of the North Sea are you interested?<br />
Seitz We were U.K.-driven initially because of the licensing round,<br />
but with the acquisition of our production base in Norway, we’re<br />
gearing up for exploration there. We’ve also put together additional<br />
seismic data in the Netherl<strong>and</strong>s <strong>and</strong> we’re undertaking studies there<br />
now.<br />
A&DW Has funding been easy to find?<br />
Transier There has been a lot of interest in the energy business for<br />
the last several years. When we put our original deal together, we<br />
sold it on the basis of the strength of our management team <strong>and</strong> the<br />
business concept. It was very easy to sell—we were five times oversubscribed<br />
for our initial offering. At the end of the first year, we<br />
used part of that capital to buy the company in Norway.<br />
In January, the convertible markets were as hot as they’ve ever<br />
been historically, <strong>and</strong> hotter for energy issuances than for anything<br />
else. So we were able to raise another $81 million in convertible<br />
equity.<br />
We’re generating cash now from Norway, <strong>and</strong> we sold our<br />
Thail<strong>and</strong> assets that were carried over from the purchase of Continental<br />
Southern. Today we have about $100 million in cash on the<br />
balance sheet. That allows us a lot of flexibility to execute our business<br />
strategy.<br />
A&DW How does the partnership of co-CEOs work?<br />
Seitz Bill <strong>and</strong> I can do either role, the operating side or the financial.<br />
Obviously our individual strengths are greater in one area than the<br />
other, but the best part is we can be in two places at one time. It<br />
extends our visibility <strong>and</strong> our ability to h<strong>and</strong>le issues. We think<br />
amazingly alike on all issues.<br />
Transier This is a risk business, <strong>and</strong> John <strong>and</strong> I have a very similar<br />
view about how to build an E&P company. We also have a common<br />
impatience—we want to get there as quickly as we possibly can.<br />
Seitz Our egos are in check <strong>and</strong> the only objective we have is to create<br />
value for the shareholders.<br />
Transier It actually is an interesting position to be able to walk next<br />
door <strong>and</strong> discuss business issues with your co-CEO <strong>and</strong> not feel that<br />
you ultimately have to make these decisions all on your own.<br />
Seitz Sometimes it’s very hard to get an impartial or objective point<br />
of view from someone who is working for you, but since we’re<br />
working together, we don’t hold anything back.<br />
“The industry will continue to consolidate, <strong>and</strong> at<br />
some point we will consolidate with someone else.”<br />
—Bill Transier<br />
A&DW Will you exit eventually?<br />
Transier The industry will continue to consolidate, <strong>and</strong> at some<br />
point we will consolidate with someone else. The question is: will<br />
we run it, or will they? Either way, we’ll do what’s best for our<br />
shareholders. We’re not in this for the jobs, we’re in this to find oil<br />
<strong>and</strong> gas <strong>and</strong> create value for the equity-holders. Since our management<br />
team holds a large sum of equity, we are fully aligned with the<br />
interests of the stockholders.<br />
A&DW Even though making an acquisition has been difficult<br />
because of high commodity prices, do you expect to do that this<br />
year?<br />
Transier Yes. It’s more difficult right now with high commodity<br />
prices. But building a balanced E&P company means not shying<br />
away from transactions. For now, our best shot is to exp<strong>and</strong> our<br />
exploration inventory <strong>and</strong> drill some of these excellent prospects our<br />
technical team is generating. Our goal is to become a several-billiondollar<br />
company <strong>and</strong> with the right acquisition we could make that<br />
happen very quickly.<br />
Seitz Whatever you see us do will make a lot of sense.<br />
A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong> • 5
On The Market<br />
—United States<br />
—Canada<br />
—International<br />
Location Seller Agent Deal #<br />
For more information on each deal, see the text that follows this chart.<br />
U.S.<br />
Alabama Medallion Exploration The <strong>Oil</strong> & <strong>Gas</strong> Asset Clearinghouse 26<br />
California Chevron Corp. EnergyNet 5<br />
Gulf of Mexico Pioneer Natural Resources Co. R<strong>and</strong>all & Dewey 30<br />
Gulf of Mexico Shell Exploration & Production Co. IndigoPool 35<br />
Gulf of Mexico The Houston Exploration Co. Wachovia Securities 36<br />
Kansas NA Black Gold Trading LLC 2<br />
Louisiana Kaiser-Francis <strong>Oil</strong> Co. The <strong>Oil</strong> & <strong>Gas</strong> Asset Clearinghouse 22<br />
Louisiana Kilrush Petroleum Inc. Burks <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong> Properties Inc. 23<br />
Louisiana Lamar <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong> Inc. PetroSales 24<br />
Louisiana Main Energy Inc. The <strong>Oil</strong> & <strong>Gas</strong> Asset Clearinghouse 25<br />
Louisiana Mid-America Resources Corp. Burks <strong>Oil</strong> & <strong>Gas</strong> Properties Inc. 27<br />
Louisiana Reef <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong> Partners LLC The <strong>Oil</strong> & <strong>Gas</strong> Asset Clearinghouse 32<br />
Louisiana Will-Drill Resources Inc. Tristone Capital 37<br />
Louisiana Winwell Resources Inc., Nemours Energy Albrecht & Associates Inc. 39<br />
Mississippi Will-Drill Resources Inc. Tristone Capital 37<br />
Montana Citation The <strong>Oil</strong> & <strong>Gas</strong> Asset Clearinghouse 10<br />
Montana Main Energy Inc. The <strong>Oil</strong> & <strong>Gas</strong> Asset Clearinghouse 25<br />
New Mexico Bettis Brothers LP Riviera Energy Corp. 1<br />
New Mexico Chevron Corp. EnergyNet 5<br />
New Mexico Chi Energy Inc. et al. Scotia Waterous Inc. 7<br />
New Mexico Cimarron Exploration Co. Riviera Energy Corp. 9<br />
New Mexico Primexx Energy Partners Energy Spectrum Advisors Inc. 31<br />
New Mexico SDX Resources Energy Capital Solutions LP 34<br />
Oklahoma Chevron Corp. EnergyNet 5<br />
Oklahoma Chevron Corp. EnergyNet 5<br />
Oklahoma NA Energy Listings 17<br />
Oklahoma K&M <strong>Oil</strong> Co. EnergyNet 21<br />
Oklahoma Orion Energy Resources LLC Meagher <strong>Oil</strong> & <strong>Gas</strong> Properties Inc. 28<br />
Oklahoma Primexx Energy Partners Energy Spectrum Advisors Inc. 31<br />
Texas Black Stone Minerals Co. LP The <strong>Oil</strong> & <strong>Gas</strong> Asset Clearinghouse 3<br />
Texas Buckeye Energy Inc. Riviera Energy Corp. 4<br />
Texas Chevron Corp. EnergyNet 5<br />
Texas Chief <strong>Oil</strong> & <strong>Gas</strong> Lehman Brothers 6<br />
Texas Cimarex Energy Co. Tristone Capital 8<br />
Texas Cimarron Exploration Co. Riviera Energy Corp. 9<br />
Texas Compass <strong>Oil</strong> & <strong>Gas</strong> LP Albrecht & Associates Inc. 11<br />
Texas David H. Arrington Lehman Brothers 12<br />
Texas Denton Partners Ltd. PLS 13<br />
Texas Dominion Exploration & Production Inc. The <strong>Oil</strong> & <strong>Gas</strong> Asset Clearinghouse 14<br />
Texas Eagle <strong>Oil</strong> & <strong>Gas</strong> Co. Energy Spectrum Advisors Inc. 15<br />
Texas Encon Services Inc. Tristone Capital 16<br />
Texas Entre Energy Partners LP Tristone Capital 18<br />
Texas Lamar <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong> Inc. PetroSales 24<br />
Texas Main Energy Inc. The <strong>Oil</strong> & <strong>Gas</strong> Asset Clearinghouse 25<br />
Texas NA PetroSales 29<br />
Texas Primexx Energy Partners Energy Spectrum Advisors Inc. 31<br />
Texas Scythian Ltd. R<strong>and</strong>all & Dewey Inc. 33<br />
Texas Will-Drill Resources Inc. Tristone Capital 37<br />
A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong> • 7
On the Market<br />
Location Seller Agent Deal #<br />
Utah J-W Operating Co. Meagher <strong>Oil</strong> & <strong>Gas</strong> Properties Inc. 20<br />
Wyoming <strong>Gas</strong>Tech Inc. Meagher <strong>Oil</strong> & <strong>Gas</strong> Properties Inc. 19<br />
Wyoming Williams Production RMT Co. Meagher <strong>Oil</strong> & <strong>Gas</strong> Properties Inc. 38<br />
Canada<br />
Western Canada Acclaim Energy Trust, StarPoint Energy Trust NA 40<br />
Alberta Duna Resources Ltd. EnergyNet 41<br />
Alberta Grizzly Resources Ltd. Collins Barrow Securities Inc. 42<br />
Alberta, B.C., Sask. Imperial <strong>Oil</strong> Resources IndigoPool 43<br />
Alberta Innova Exploration Ltd. Sayer Securities Ltd. 44<br />
New Brunswick Innova Exploration Ltd. Sayer Securities Ltd. 45<br />
Alberta Ketch Resources Ltd. Canaccord Enermarket 46<br />
Alberta Ledge Resources Ltd. Canaccord Enermarket 47<br />
B.C., Alberta Northpoint Energy Ltd. Canaccord Enermarket 48<br />
Alberta Penn West Petroleum Ltd. Scotia Waterous Inc. 49<br />
Saskatchewan Profico Energy Management Ltd. Tristone Capital 50<br />
Alberta, B.C. Samson Canada Ltd. Scotia Waterous, BMO Nesbitt Burns 51<br />
Alberta Sawtooth International Resources Inc. Haywood Securities Inc. 52<br />
Alberta Solex Exploration Ltd. Tristone Capital Inc. 53<br />
Alberta NA Tiverton Petroleums Ltd. 54<br />
Alberta Vista Resources Inc. Sayer Securities Ltd. 55<br />
International<br />
Colombia Empresa Nacional del Petróleo Scotia Waterous Inc. 56<br />
Spain, Mediterranean Sea Petroleum <strong>Oil</strong> & <strong>Gas</strong> Espana SA Scotia Waterous 57<br />
Argentina Pioneer Natural Resources Scotia Waterous Inc., TD Securities 58<br />
Service & Supply<br />
Oklahoma Southeast Transmission & Compression Co. Inc. PetroSales 59<br />
U.S.<br />
1. Bettis Brothers LP has retained Riviera<br />
Energy Corp. to sell nonoperated interests<br />
in the Ingle Wells Field, Eddy County, New<br />
Mexico.<br />
The package includes 30 producing wells<br />
with gross production of 1,016 barrels of oil<br />
<strong>and</strong> 1.8 million cubic feet of gas per day (16<br />
barrels <strong>and</strong> 32,000 cubic feet per day, net).<br />
For more information, contact Monty Fields,<br />
432-686-9400.<br />
2. Black Gold Trading LLC has been<br />
retained by an undisclosed company to sell<br />
conventional- <strong>and</strong> coalbed-gas development<br />
properties in southeast Kansas.<br />
The package includes 27,000 acres with<br />
40 completed wells <strong>and</strong> eight wells on production.<br />
For more information, contact Tom<br />
Smart, 405-478-0404.<br />
3. Black Stone Minerals Co. LP has<br />
retained The <strong>Oil</strong> & <strong>Gas</strong> Asset Clearinghouse’s<br />
mid-value negotiated unit to sell<br />
interests in certain nonoperated producing<br />
properties in Tyler County, Texas, in a single<br />
divestment package.<br />
The sale includes net production of 115<br />
barrels of oil <strong>and</strong> 750,000 cubic feet of gas<br />
per day, varied working <strong>and</strong> net revenue<br />
interests, upside potential <strong>and</strong> development<br />
drilling. For more information, contact John<br />
Young, 218-873-4600.<br />
4. NEW—Buckeye Energy Inc. has<br />
retained Riviera Energy Corp. to sell its<br />
operated interest in the W.G. McMeans<br />
lease in Kent County, Texas.<br />
The sale includes one producing well,<br />
four inactive wells <strong>and</strong> one saltwater-disposal<br />
well on approximately 640 acres. For<br />
more information, contact Jeffrey Longbotham,<br />
432-686-9400.<br />
5. NEW—Chevron Corp. will offer properties<br />
via EnergyNet.com in Los Angeles<br />
<strong>and</strong> Orange counties, California; Leon <strong>and</strong><br />
Shackelford counties, Texas; Lea County,<br />
New Mexico; Ellis, Seminole, Harper <strong>and</strong><br />
Beaver counties, Oklahoma; <strong>and</strong> White <strong>and</strong><br />
Crawford counties, Illinois.<br />
6. NEW—Chief <strong>Oil</strong> & <strong>Gas</strong> reports it will<br />
put itself up for sale. At press time, the Barnett<br />
Shale producer was in the final stages of<br />
hiring an investment bank to represent it<br />
through the selling process. Sources report<br />
the banker will be Lehman Brothers.<br />
Chief is the No. 3 producer in the Barnett<br />
Shale. The company is expected to sell for<br />
between $1- <strong>and</strong> $1.2 billion. Bidders are<br />
expected to be Burlington Resources, The<br />
Williams Cos., Chesapeake Energy Corp.<br />
<strong>and</strong> Shell <strong>Oil</strong>.<br />
Devon Energy Corp. is the No. 1 producer<br />
in the Barnett; XTO Energy Inc. is<br />
No. 2.<br />
7. Chi Energy Inc. et al. have retained Scotia<br />
Waterous Inc. to sell certain producing<br />
assets in the Permian Basin.<br />
The package includes the company’s<br />
interest in certain producing assets in Eddy<br />
County, New Mexico, with forecast fourthquarter<br />
<strong>2005</strong> net production of approximately<br />
1,700 barrels of oil equivalent per day<br />
(70% oil).<br />
Net proved reserves on the properties are<br />
some 15.4 million barrels of oil equivalent.<br />
Major fields in the offering include the Benson<br />
Delaware, South Carlsbad, Happy Valley,<br />
HG <strong>and</strong> Turkey Track.<br />
A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong> • 9
On the Market<br />
For more information, contact Adrian<br />
Goodisman, 713-437-5050.<br />
8. Cimarex Energy Co. has retained Tristone<br />
Capital to sell certain oil <strong>and</strong> gas assets<br />
in the Permian Basin <strong>and</strong> North Texas three<br />
packages.<br />
The properties are in the Walnut Bend,<br />
Westbrook, Levell<strong>and</strong>, Slaughter, Abell <strong>and</strong><br />
P&P fields. They are waterflood properties<br />
that are geographically focused with cash<br />
flow that has been substantial <strong>and</strong> predictable<br />
to the owner.<br />
For more information, contact Miles<br />
Redfield, 832-601-7690.<br />
9. Cimarron Exploration Co. has retained<br />
Riviera Energy Corp. to sell operated<br />
properties in Cochran County, Texas, <strong>and</strong><br />
Lea County, New Mexico.<br />
The Cochran County package includes<br />
33 producing wells on 7,520 acres with<br />
gross production of approximately 56 barrels<br />
of oil <strong>and</strong> 93,000 cubic feet of gas per<br />
day.<br />
The Lea County package includes seven<br />
producing wells on 1,674 acres with current<br />
gross production of approximately 90 barrels<br />
of oil <strong>and</strong> 45,000 cubic feet of gas per day.<br />
For more information, contact Jeffrey<br />
Longbotham, 432-686-9400.<br />
10. NEW—Citation will offer its interests<br />
in the Big Wall Field, Musselshell County,<br />
Montana, via The <strong>Oil</strong> & <strong>Gas</strong> Asset Clearinghouse<br />
auction Dec. 14-15. For more<br />
information, go to ogclearinghouse.com.<br />
11. Compass <strong>Oil</strong> & <strong>Gas</strong> LP has retained<br />
Albrecht & Associates Inc. to sell its interests<br />
in the Jameson (Strawn) Field, Coke<br />
County, Texas.<br />
The sale includes total proved reserves of<br />
2.5 million barrels of oil equivalent, properties<br />
that are 100% operated <strong>and</strong> 51 proved<br />
undeveloped locations. For more information,<br />
contact Robert Albrecht, 713-951-<br />
9586.<br />
12. NEW—David H. Arrington, a private<br />
operator in the Barnett Shale, is for<br />
sale. The company is being represented<br />
by Lehman Brothers.<br />
13. NEW—Denton Partners Ltd. has<br />
retained PLS to sell its Denton County,<br />
Texas, package.<br />
The sale includes nine vertical gas wells<br />
on 500 acres in the Fort Worth Basin. The<br />
properties had production in September of<br />
57 barrels of oil <strong>and</strong> 3.6 million cubic feet of<br />
gas per day. For more information, contact<br />
Ronyld Wise, 713-753-1212.<br />
14. NEW—Dominion Exploration & Production<br />
Inc. has retained The <strong>Oil</strong> & <strong>Gas</strong><br />
Asset Clearinghouse’s mid-value negotiated<br />
unit to sell certain operated producing<br />
properties in the NE Thompsonville Field,<br />
Jim Hogg County, Texas.<br />
Net production is 600,000 cubic feet of<br />
gas per day from the Wilcox formation. The<br />
sale includes a working interest of 69% <strong>and</strong><br />
a net-royalty interest of 50%.<br />
For more information, contact John Dyer,<br />
281-873-4600.<br />
15. NEW—Eagle <strong>Oil</strong> & <strong>Gas</strong> Co. has<br />
10 • A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong>
On the Market<br />
retained Energy Spectrum Advisors Inc.<br />
to sell certain interests in the Pittsburg Field,<br />
Camp County, Texas.<br />
The sale includes 65 active producing<br />
wells, 35 active injection wells <strong>and</strong> three disposal<br />
wells on 6,234 gross acres. The properties<br />
have current net production of 313<br />
barrels of oil per day.<br />
For more information, contact Ch<strong>and</strong>ler<br />
Phillips, 214-987-6120.<br />
16. Encon Services Inc. has retained Tristone<br />
Capital to sell oil <strong>and</strong> gas assets in the<br />
Westhoff Ranch Field, Jackson County,<br />
Texas.<br />
The package includes 15 wells with current<br />
production of approximately 2.1 million<br />
cubic feet of gas <strong>and</strong> 450 barrels of oil per<br />
day. All properties are operated by Encon,<br />
which has 100% working interest.<br />
For more information, contact Christopher<br />
Simon, 832-601-7606.<br />
17. NEW—EnergyListings.com is offering<br />
an oil <strong>and</strong> gas package in Muskogee<br />
County, Oklahoma.<br />
The package includes two leases on 160<br />
acres with five producing wells. The leases<br />
are 100% operated <strong>and</strong> produce three barrels<br />
of oil <strong>and</strong> 3,000 cubic feet of gas per day.<br />
18. Entre Energy Partners LP has retained<br />
Tristone Capital to sell all of its assets in<br />
the El Campo Field, Wharton County,<br />
Texas.<br />
The properties are in the Yegua Trend of<br />
the Texas Gulf Coast <strong>and</strong> include a total of<br />
10 wells producing approximately 1.6 million<br />
cubic feet of gas <strong>and</strong> 112 barrels of oil<br />
per day. Entre controls operations on 99% of<br />
the production.<br />
For more information, contact Christopher<br />
Simon, 832-601-7606.<br />
19. NEW—<strong>Gas</strong>Tech Inc. has retained<br />
Meagher <strong>Oil</strong> & <strong>Gas</strong> Properties Inc. to sell<br />
the Bend acreage block in the Greater Green<br />
River Basin, Sweetwater County, Wyoming.<br />
The sale includes a 100% working interest<br />
in 48,740 acres with an intense surface<br />
fault swarm with fracture haloes to provide<br />
fracture permeability for upward gas migration.<br />
For more information, contact Julia<br />
Foster at 303-721-6354, ext. 229.<br />
20. NEW—J-W Operating Co. has<br />
retained Meagher <strong>Oil</strong> & <strong>Gas</strong> Properties<br />
Inc. to sell its Uinta Basin, operated,<br />
coalbed-methane Soldier Creek prospect.<br />
The project has the potential for 80 horizontal<br />
coal wells. The prospect includes<br />
15,000 gross acres (14,300 net) <strong>and</strong> a 100%<br />
working interest on a majority of the leases.<br />
A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong> • 11
On the Market<br />
For more information, contact Julia Foster,<br />
303-721-6354, ext. 229.<br />
21. NEW—K&M <strong>Oil</strong> Co. will offer properties<br />
via auction at EnergyNet.com in Canadian<br />
<strong>and</strong> Kingfisher counties, Oklahoma.<br />
22. NEW—Kaiser-Francis <strong>Oil</strong> Co. has<br />
retained The <strong>Oil</strong> & <strong>Gas</strong> Asset Clearinghouse’s<br />
mid-value negotiated unit to sell<br />
certain operated, producing properties in<br />
Lafayette Parish, Louisiana.<br />
Net production is 120 barrels of oil per<br />
day <strong>and</strong> prove, developed, nonproducing<br />
upside potential. For more information, contact<br />
John Dyer, 281-873-4600.<br />
23. Kilrush Petroleum Inc. has retained<br />
Burks <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong> Properties Inc. to sell<br />
its interests in the Edgerly <strong>and</strong> Barnes Creek<br />
fields in southwestern Louisiana.<br />
The Edgerly Field has five new producing<br />
completions in four wellbores with net<br />
production of approximately 75 barrels<br />
of oil <strong>and</strong> 60,000 cubic feet of gas per day.<br />
Net proven reserves are some 276,000 barrels<br />
of oil <strong>and</strong> 328 million cubic feet of gas<br />
on 800 gross acres.<br />
The Barnes Creek Field has one new gasproducing<br />
well, net production of approximately<br />
192,000 cubic feet of gas <strong>and</strong> 17 barrels<br />
of oil per day <strong>and</strong> net proven reserves of<br />
some 416 million cubic feet of gas <strong>and</strong><br />
32,000 barrels of oil on approximately 320<br />
gross acres.<br />
For more information, contact Don<br />
Burks, 281-580-4590.<br />
24. NEW—Lamar <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong> Inc. has<br />
retained PetroSales to sell its Texas <strong>and</strong><br />
Louisiana Gulf Coast properties.<br />
The sale includes 72 completions on 36<br />
properties with 6,056 operated gross acres<br />
<strong>and</strong> 14,257 nonoperated gross acres. The<br />
properties have net daily production of 2.2<br />
million cubic feet of gas <strong>and</strong> 150 barrels of<br />
oil <strong>and</strong> proved reserves of 1.06 million barrels<br />
of oil <strong>and</strong> 4.31 billion cubic feet of gas.<br />
For more information, contact Anthony<br />
Schroeder, 281-468-9510.<br />
25. Main Energy Inc. has retained The <strong>Oil</strong><br />
& <strong>Gas</strong> Asset Clearinghouse’s mid-value<br />
negotiated unit to sell the company, including<br />
properties in Louisiana, Texas <strong>and</strong> Montana,<br />
in a single divestment package.<br />
The properties are 71% operated <strong>and</strong><br />
include net production of 1.1 million cubic<br />
feet of gas equivalent per day, total proved<br />
reserves of 6.5 billion cubic feet of gas<br />
equivalent <strong>and</strong> proved upside in each area.<br />
For more information, contact John<br />
Young, 281-873-4600.<br />
26. NEW—Medallion Exploration will<br />
offer its interests in Fernbank <strong>and</strong> Yellow<br />
Creek fields in Lamar <strong>and</strong> Pickens counties,<br />
Alabama, via The <strong>Oil</strong> & <strong>Gas</strong> Asset Clearinghouse<br />
auction Dec. 14-15.<br />
For more information, go to ogclearinghouse.com.<br />
27. Mid-America Resources Corp. has<br />
retained Burks <strong>Oil</strong> & <strong>Gas</strong> Properties Inc.<br />
to sell its interest in the Sorrento Field,<br />
Ascension Parish, Louisiana.<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
12 • A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong>
On the Market<br />
The package includes a 100% interest in<br />
three wells, which are currently shut in.<br />
Net proved reserves are 65,000 barrels of<br />
oil <strong>and</strong> 152 million cubic feet of gas.<br />
For more information, contact Don<br />
Burks, 281-580-4590.<br />
28. Orion Energy Resources LLC has<br />
retained Meagher <strong>Oil</strong> & <strong>Gas</strong> Properties<br />
Inc. to sell its interests in the Lake<br />
McAlester, Big Mac <strong>and</strong> Buffalo Creek<br />
prospects, all in Pittsburg County, Oklahoma.<br />
The sale includes 22,720 gross acres<br />
(13,542 net) with 14 producing wells <strong>and</strong><br />
total proved reserves of 17 billion cubic feet<br />
of gas. For more information, contact Teri<br />
Williams, 918-481-5900, ext. 303.<br />
29. PetroSales has been retained to sell a<br />
Biel Field, northeast Webb County, Texas,<br />
oil package.<br />
The package includes 100% working<br />
interest (70% net revenue interest) in 10<br />
wells of which three are producing 270 net<br />
barrels of oil per month. For more information,<br />
contact David Smart, 281-468-9053.<br />
30. Pioneer Natural Resources Co., Dallas<br />
(NYSE: PXD) has retained R<strong>and</strong>all &<br />
Dewey to sell its deepwater Gulf of Mexico<br />
assets where it has drilled 33 successful<br />
wells since 1998.<br />
Pioneer has working interests in three<br />
producing deepwater projects, owns interests<br />
in several discoveries that are being considered<br />
for commercialization, <strong>and</strong> has interests<br />
in 90 deepwater blocks with exploration<br />
opportunities.<br />
For more information, contact Joe Gladbach,<br />
281-774-2000.<br />
31. NEW—Primexx Energy Partners has<br />
retained Energy Spectrum Advisors Inc.<br />
to sell certain interests in New Mexico,<br />
Oklahoma <strong>and</strong> Texas in a Permian package<br />
<strong>and</strong> a Midcontinent package. The majority<br />
of the properties are operated.<br />
The Midcontinent properties are concentrated<br />
in Woodward, Noble <strong>and</strong> Oklahoma<br />
counties, Oklahoma. The properties include<br />
91 wells with average daily production of<br />
1.2 million cubic feet of gas equivalent.<br />
The Permian properties are concentrated<br />
in Andrews <strong>and</strong> Kent counties, Texas, <strong>and</strong><br />
Eddy <strong>and</strong> Lea counties, New Mexico. The<br />
properties have 63 wells with average production<br />
of 203 barrels of oil per day.<br />
For more information, contact Ch<strong>and</strong>ler<br />
Phillips, 214-987-6120.<br />
32. NEW—Reef <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong> Partners<br />
LLC will offer its interests in the Cadeville<br />
Field, Ouachita Parish, Louisiana, via The<br />
<strong>Oil</strong> & <strong>Gas</strong> Asset Clearinghouse auction<br />
Dec. 14-15. For more information, go to<br />
ogclearinghouse.com.<br />
33. Scythian Ltd. has retained R<strong>and</strong>all<br />
& Dewey Inc. to sell all of its operated<br />
properties.<br />
The package includes approximately 335<br />
wells in the Permian Basin in Texas in 40<br />
fields with net production of some 1,200<br />
barrels of oil equivalent per day (86% oil)<br />
A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong> • 13
On the Market<br />
<strong>and</strong> preliminary proved developed producing<br />
reserves of 6.4 million barrels of oil<br />
equivalent.<br />
For more information, contact Steve<br />
Smith, 281-774-2000.<br />
34. NEW—SDX Resources has retained<br />
Energy Capital Solutions LP to sell its operated<br />
properties near Artesia, New Mexico.<br />
The sale includes two major operating<br />
areas, the East Artesia Area <strong>and</strong> the West<br />
Redlake Artesia Area, both in Eddy County,<br />
New Mexico. East Artesia currently has 19<br />
producing wells on five leases with 10 identified<br />
proved undeveloped locations, while<br />
West Redlake has 65 producing wells on 15<br />
leases with 32 proved, developed nonproducing<br />
<strong>and</strong> 42 proved, undeveloped locations.<br />
Production is approximately 476 barrels<br />
of oil equivalent per day, while net proved<br />
reserves are estimated to be 4.9 million barrels<br />
of oil <strong>and</strong> 15.6 billion cubic feet of gas<br />
with a reserves-production ratio of more<br />
than 20 years.<br />
For more information, contact Scott Trulock<br />
at 214-219-8204.<br />
35. NEW—Shell Exploration & Production<br />
Co. has retained IndigoPool to offer<br />
farm-in positions on prospects in the Gulf of<br />
Mexico.<br />
Most are in deep water with individual<br />
reserve potentials of up to 100 million barrels<br />
of oil equivalent. The farm-in offer<br />
includes a total of 27 prospects. For more<br />
information, contact Greg Mowlds, 713-<br />
513-1513.<br />
36. NEW—The Houston Exploration Co.,<br />
Houston, (NYSE: THX) has retained<br />
Wachovia Securities to sell its entire Gulf<br />
of Mexico asset base.<br />
Historically, the company’s Gulf of Mexico<br />
production has accounted for some 40%<br />
of its total production. This sale will shift<br />
Houston Exploration’s operations to<br />
onshore U.S. gas. Year-end 2004 offshore<br />
reserves totaled some 291 billion cubic feet<br />
of gas equivalent, or 37% of total proved.<br />
The company plans to use sale proceeds<br />
to acquire additional assets in U.S. onshore<br />
basins, pay for a recently announced $163-<br />
million acquisition in South Texas from<br />
Kerr-McGee Corp., decrease bank debt<br />
<strong>and</strong> potentially purchase common stock.<br />
“For several years we have been building<br />
our onshore business…We are taking<br />
advantage of the current favorable market<br />
conditions for offshore properties…<strong>and</strong><br />
focus our people <strong>and</strong> capital on longer-lived<br />
opportunities in the Lower 48,” says<br />
William G. Hargett, chairman <strong>and</strong> chief<br />
executive.<br />
After the sale, Houston Exploration’s<br />
reserve life would grow from six years to<br />
eight.<br />
St<strong>and</strong>ard & Poor’s lowered its corporate<br />
credit rating on Houston Exploration to<br />
BB- from BB after the Kerr-McGee assetpurchase<br />
announcement. THX had about<br />
$350 million of debt as of Sept. 30.<br />
“The rating action incorporates execution<br />
WELLS FARGO ENERGY ADVISORS<br />
Tom Hedrick<br />
Senior Vice President<br />
(713) 319-1614<br />
Kevin Neeley<br />
Senior Vice President<br />
(713) 319-1621<br />
Results-driven <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong> advisory<br />
services for Acquisitions <strong>and</strong> Divestitures,<br />
tailored to maximize the value of each<br />
transaction <strong>and</strong> grow our client’s companies.<br />
1000 Louisiana, Suite 600 Houston, TX 77002<br />
www.WFEnergyAdvisors.com<br />
14 • A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong>
On the Market<br />
risk associated with the planned sales <strong>and</strong><br />
necessary reinvestment at a time when oil<br />
<strong>and</strong> gas properties are trading at very high<br />
prices, combined with the company’s<br />
announced $200-million share repurchase<br />
program,” says S&P credit analyst Brian<br />
Janiak.<br />
“Moreover, the company’s significant<br />
drilling-expenditure plans, increasing finding<br />
<strong>and</strong> development cost structure, <strong>and</strong><br />
need for more acquisitions pressures the<br />
company’s overall financial profile, which is<br />
viewed as more commensurate with its peers<br />
at a BB- rating level.”<br />
37. NEW—Will-Drill Resources Inc. has<br />
retained Tristone Capital to sell properties<br />
involving 34 fields in North Louisiana, East<br />
Texas <strong>and</strong> Mississippi.<br />
The sale includes net proved reserves of<br />
143 billion cubic feet of gas equivalent <strong>and</strong> net<br />
proved upside of 49 proved, developed, nonproducing<br />
locations <strong>and</strong> 250 proved, undeveloped<br />
locations. The properties include 140<br />
producing wells, 107 of which are operated by<br />
Will-Drill Production Co. Inc.<br />
For more information, contact Terrence<br />
Manning, 832-601-7652.<br />
38. NEW—Williams Production RMT<br />
Co. has retained Meagher <strong>Oil</strong> & <strong>Gas</strong> Properties<br />
Inc. to sell operated properties in the<br />
Riley Ridge area of the Green River Basin,<br />
Sublette County, Wyoming.<br />
The sale includes three producing wells<br />
from two units with net production of<br />
175,000 cubic feet of gas <strong>and</strong> two barrels of<br />
oil per day on 4,887 net acres (15,600 gross).<br />
Upside potential exists with one identified<br />
proved, undeveloped location, 12 probable<br />
locations <strong>and</strong> 27 possible locations.<br />
Proved reserves on the property are estimated<br />
to be some 646 million cubic feet of<br />
gas <strong>and</strong> 11,600 barrels of oil.<br />
For more information, contact Julia Foster,<br />
303-721-6354, ext. 229.<br />
39. Winwell Resources Inc. <strong>and</strong> Nemours<br />
Energy have retained Albrecht & Associates<br />
Inc. to sell their interests in the Elm<br />
Grove <strong>and</strong> Caspiana fields in North<br />
Louisiana.<br />
The package includes 162 billion cubic<br />
feet of gas equivalent of net proved reserves,<br />
299 proved undeveloped infill locations,<br />
27,400 gross acres <strong>and</strong> 14.1 million cubic<br />
feet of gas equivalent per day in net sales.<br />
For more information, contact Harrison<br />
Williams, 713-951-9586.<br />
Canada<br />
40. Following the merger of Acclaim Energy<br />
Trust, Calgary, (Toronto: AE.UN) <strong>and</strong><br />
Calgary-based StarPoint Energy Trust<br />
(Toronto: SPN.UN), the new trust plans to<br />
consider selling noncore assets in western<br />
Canada involving production of 2,000 to<br />
3,000 barrels of oil equivalent per day.<br />
41. NEW—Duna Resources Ltd. will offer<br />
properties via auction at EnergyNet.com in<br />
the Coutts, Provost, Snowfall, Mitsue <strong>and</strong><br />
Turner Valley areas, Alberta.<br />
A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong> • 15
On the Market<br />
42. Grizzly Resources Ltd. has retained<br />
Collins Barrow Securities Inc. to sell its<br />
Tony Creek, Alberta, gas property <strong>and</strong> plant.<br />
The Tony Creek property currently produces<br />
approximately 1,200 barrels of oil<br />
equivalent per day on four contiguous sections<br />
of 100%-working-interest l<strong>and</strong> with a<br />
10-year proved-plus-probable reserve life.<br />
The property has an estimated 5 million<br />
barrels of oil equivalent of remaining proved<br />
<strong>and</strong> probable reserves.<br />
For more information, contact Darryl<br />
Derouin, 403-298-1515.<br />
43. Imperial <strong>Oil</strong> Resources has retained<br />
IndigoPool to sell properties in Alberta,<br />
British Columbia <strong>and</strong> Saskatchewan. The<br />
properties are oil <strong>and</strong> gas-producing. For<br />
more information, contact Greg Mowlds,<br />
713-5513-1513.<br />
44. Innova Exploration Ltd. has retained<br />
Sayer Securities Ltd. to sell its Ukalta,<br />
Alberta, gas property.<br />
The sale includes an 80% working interest<br />
in approximately 10.5 sections of Crown<br />
<strong>and</strong> freehold l<strong>and</strong>s. The property is currently<br />
not producing, though it contains five wells<br />
<strong>and</strong> reserves of 2.55 billion cubic feet.<br />
For more information, contact Tom<br />
Pavic, 403-266-6133.<br />
45. Innova Exploration Ltd. has retained<br />
Sayer Securities Ltd. to sell three exploration<br />
licenses in New Brunswick.<br />
This package includes a 50% working<br />
interest in three exploration licenses held<br />
jointly with Corridor Resources Inc. The<br />
licenses cover 106,700 acres.<br />
For more information, contact Tom<br />
Pavic, 403-266-6133.<br />
46. Ketch Resources Ltd. has retained<br />
Canaccord Enermarket to sell some<br />
20,100 net acres of l<strong>and</strong> in the Camrose area<br />
of central Alberta. Ketch has 100% working<br />
interest in the l<strong>and</strong>s included in the offering.<br />
For more information, contact Stu Venables,<br />
403-537-9836.<br />
47. Ledge Resources Ltd. has retained<br />
Canaccord Enermarket to sell seven sections<br />
of l<strong>and</strong> in the Garrington area of central<br />
Alberta.<br />
The package includes shallow gas potential<br />
from the Edmonton s<strong>and</strong> play <strong>and</strong> 4,480<br />
acres of l<strong>and</strong> at about a 100% working interest.<br />
For more information, contact Stu Venables,<br />
403-537-9836.<br />
48. NEW—Northpoint Energy Ltd. has<br />
retained Canaccord Enermarket to sell its<br />
properties in Bernadet, Inga, Red Creek,<br />
Teal <strong>and</strong> Two Rivers in British Columbia<br />
<strong>and</strong> Boundary Lake, Puskwaskau, Simonette,<br />
Strachan <strong>and</strong> Benton in Alberta.<br />
Northpoint is willing to accept offers on a<br />
single property group or any combination of<br />
property groups. For more information, contact<br />
Martin Peters, 403-537-9829.<br />
49. Penn West Petroleum Ltd. has retained<br />
Scotia Waterous Inc. as its exclusive advisor<br />
to sell certain noncore gas assets in<br />
Psst!<br />
Where is your news?<br />
2250 OIL & GAS PROPERTIES<br />
Properties located in: Alabama, Arkansas, Colorado, Kansas,<br />
Louisiana, Michigan, Mississippi, Montana, New Mexico,<br />
North Dakota, Oklahoma, Texas, Utah, Wyoming<br />
Sellers include: Dominion, ExxonMobil, Citation,<br />
Reef Partners, Total <strong>and</strong> many more<br />
DECEMBER 14-15, <strong>2005</strong><br />
HOUSTON, TEXAS<br />
Qualified Bidders Only • Advance Registration Required<br />
PHONE (281) 873-4600 FAX (281) 873-0055<br />
K.R. OLIVE, JR., PRESIDENT<br />
Call 713-993-9325 Ext.165 <strong>and</strong> let<br />
us tell the marketplace.<br />
It’s free!<br />
TX License No. 10777<br />
This notice is not an offer to sell or a solicitation of buyers<br />
in states where prohibited by law.<br />
16 • A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong>
On the Market<br />
northern Alberta in two packages but a single<br />
transaction is preferred.<br />
Preference will be given to exchange proposals;<br />
however, Penn West will consider<br />
cash offers.<br />
The assets involve 100% working interest<br />
with infrastructure control <strong>and</strong> an undeveloped<br />
l<strong>and</strong> position of 377,000 net acres<br />
September <strong>2005</strong> sales averaged 11.9 million<br />
cubic feet of gas per day. Proved reserves<br />
are 3.22 million barrels of oil equivalent;<br />
proved-plus-probable reserves total 4.14 million.<br />
The reserve life is 4.6 years for proved<br />
<strong>and</strong> 5.9 years for proved plus probable.<br />
The assets are in the Hotchkiss/Vista<br />
Creek area <strong>and</strong> the Mega/Gutah area. For<br />
more information, contact Hilary Foulkes,<br />
403-261-4241.<br />
50. NEW—Profico Energy Management<br />
Ltd. has retained Tristone Capital to sell<br />
the company.<br />
Profico’s assets are 97% gas in western<br />
Saskatchewan with a concentration in the<br />
Shackleton area. The company’s properties<br />
produce approximately 18,000 barrels of oil<br />
equivalent per day. The sale also includes an<br />
undeveloped l<strong>and</strong> position of 750,000 net<br />
acres <strong>and</strong> 3,000 identified step-out <strong>and</strong> infill<br />
locations.<br />
For more information, contact Ian van<br />
Staalduinen, 403-303-8660.<br />
51. NEW—Samson Canada Ltd. has<br />
retained Scotia Waterous <strong>and</strong> BMO Nesbitt<br />
Burns to evaluate strategic alternatives<br />
for its assets. The company’s producing<br />
properties are in central <strong>and</strong> northern Alberta<br />
<strong>and</strong> British Columbia.<br />
Further information is expected in the<br />
first quarter of 2006.<br />
52. Sawtooth International Resources<br />
Inc., Calgary, (Toronto Venture: SAW) has<br />
retained Haywood Securities Inc. as its<br />
financial advisor to assist in identifying <strong>and</strong><br />
evaluating strategic alternatives.<br />
Sawtooth has approximately 90% of<br />
its operations in the Redwater area,<br />
northeast of Edmonton, Alberta. It has<br />
interests in some 32 sections of l<strong>and</strong> with<br />
an average working interest of 90%, an<br />
extensive gas- <strong>and</strong> oil-gathering system<br />
<strong>and</strong> operates 100% of production.<br />
53. Solex Exploration Ltd. has retained<br />
Tristone Capital Inc. to sell the company,<br />
which was formed in 2002 <strong>and</strong> has a single<br />
asset at Princess in southeastern Alberta.<br />
The asset is producing approximately<br />
1.77 million cubic feet of sweet gas <strong>and</strong> two<br />
barrels of condensate per day net to Solex<br />
from the Basal Colorado <strong>and</strong> Lower Mannville.<br />
For more information, contact Leslie F.<br />
Kende, 403-539-4353.<br />
54. NEW—Tiverton Petroleums Ltd.,<br />
Calgary, (Toronto: TIV) has initiated a<br />
process to examine strategic alternatives that<br />
may include acquisitions or the sale, merger,<br />
takeover or restructuring of the company.<br />
Tiverton operates largely in southeastern<br />
Alberta with production <strong>and</strong> exploration<br />
concentrated in the core area of the Western<br />
Canadian Sedimentary Basin, primarily in<br />
Alberta.<br />
55. NEW—Vista Resources Inc. has<br />
retained Sayer Securities Ltd. to sell its<br />
Valhalla, Alberta, property.<br />
The package includes high working interests<br />
in 10 producing wells, six of which are<br />
operated by Vista. Net production is approximately<br />
58 barrels of oil <strong>and</strong> 35,000 cubic<br />
feet of gas per day. The property has a<br />
reserve life of 14.4 years.<br />
For more information, contact Tom<br />
Pavic, 403-266-6133.<br />
International<br />
56. Empresa Nacional del Petróleo<br />
(ENAP) has retained Scotia Waterous Inc.<br />
to sell its Colombian subsidiary, Sipetrol<br />
SA, Sucursal, Colombia.<br />
Sipetrol Colombia owns a 90.6% operated<br />
interest in the Dindal <strong>and</strong> Rio Seco blocks<br />
containing the producing Guaduas Field <strong>and</strong><br />
a 27.27% nonoperated interest in the Caguan<br />
Block containing the producing Rio Ceibas<br />
Field, both in the Upper Magdalena Basin.<br />
The package includes current production<br />
of 3,000 barrels per day from the Guaduas<br />
<strong>and</strong> Río Ceibas fields <strong>and</strong> 7.2 million barrels<br />
of estimated total proved reserves.<br />
For more information, contact Chris Slubicki,<br />
403-261-4242.<br />
57. NEW—Petroleum <strong>Oil</strong> & <strong>Gas</strong> Espana<br />
SA has retained Scotia Waterous to evaluate<br />
strategic alternatives.<br />
The company’s assets are in Spain within<br />
the Guadalquivir Basin <strong>and</strong> offshore in<br />
the Catalono-Balearic Basin in the northwest<br />
Mediterranean <strong>and</strong> produce approximately<br />
8.9 million cubic feet of gas equivalent<br />
per day.<br />
For more information, contact Doug De<br />
Filippi, +44 20 7569 1312.<br />
58. Pioneer Natural Resources has<br />
retained Scotia Waterous Inc. <strong>and</strong> TD<br />
Securities to sell its 35% working interest in<br />
the Union Transitoria de Empresas-Tierra<br />
del Fuego (UTE TDF) <strong>and</strong> its 50% operating<br />
working interest in the Lago Fuego Field.<br />
Both properties are in the Austral Basin,<br />
Tierra del Fuego, Argentina.<br />
Production is 12,460 barrels of oil equivalent<br />
per day (82% gas) <strong>and</strong> proved reserves<br />
are some 51.75 million barrels of oil equivalent.<br />
Some production is exported to Chile.<br />
The package also includes 715,605 gross<br />
acres.<br />
For more information, contact Byron<br />
Bahnsen, 403-261-2375.<br />
Service & Supply<br />
59. Southeast Transmission & Compression<br />
Co. Inc. has retained PetroSales to sell<br />
the ongoing operations of its southeast Oklahoma<br />
gas-compression business in Pittsburg<br />
County in the Arkoma Basin area.<br />
The company’s compression plant<br />
includes a fleet of Ajax two-stage compressors<br />
<strong>and</strong> two additional field compressors.<br />
Corporate assets include the compression<br />
plant, surplus compressors, operating agreements,<br />
office buildings, real estate, shop<br />
facilities <strong>and</strong> a residence on the property.<br />
The compressed gas is “dry gas” derived<br />
largely from Hartshorne coalbed-methane<br />
reserves.<br />
For more information, contact David<br />
Smart, 281-468-9053.<br />
—Taryn Maxwell<br />
A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong> • 17
On the Market<br />
<strong>Oil</strong> & <strong>Gas</strong> Asset-Divestment Services<br />
Company Contact Region Phone Website<br />
Albrecht & Associates Harrison Williams or Bob Albrecht U.S. 713-951-9586 albrechtai.com<br />
American Energy Advisors Stephen Liberman U.S. 303-674-7759 NA<br />
Bainbridge Capital Brian Miller U.S. 858-410-0917 bainbridge-capital.com<br />
Banks Petroleum Inc. Roy Jackson U.S. 512-478-0059 banksinfo.com<br />
Baxter Bold & Co. Scott Baxter or Jim Bold Global 212-682-4601 baxterbold.com<br />
Black Gold Trading Paul Smart U.S. 405-478-0404 blackgoldtrading.com<br />
Blackstone Group Raffiq Nathoo Global 212-583-5820 blackstone.com<br />
Buckley & Boots Martin Buckley or Myron Boots U.S. 713-468-4888 buckleyboots.com<br />
Burks <strong>Oil</strong> & <strong>Gas</strong> Properties Don Burks U.S. 281-580-4590 burksoil<strong>and</strong>gas.com<br />
CB Securities Darryl S. Derouin Canada 403-298-1515 cbsecurities.com<br />
CEC Energy Consultants Mike Cherry U.S. 281-298-9961 cecenergyconsultants.com<br />
CIBC World Markets John Koyanagi Canada 403-216-3013 cibcwm.com<br />
Compass Advisers Bob Israel or Paul Rapisarda Global 212-702-9800 ca-llp.com<br />
Energy Auction Place John R. Bower U.S. 303-623-0747 energyauctionplace.com<br />
Energy Exchange David Mangum Global 281-367-1234 enex.com<br />
Energy Spectrum Advisors Jim Benson or Ben Davis U.S. 214-987-6122 energyspectrum.com<br />
Energy Listings LLC Anthony Motto U.S. 281-467-8818 EnergyListings.com<br />
EnergyNet Bill Britain U.S. 806-351-2953 energynet.com<br />
Enermarket Solutions Ltd. Martin Peters Canada 403-262-1442 enermarket.com<br />
Ensley Properties Inc. Art Ensley U.S. 713-622-7332 episolutions.net<br />
Ernst & Young Corp Finance Adam B. Pollack Global 713-750-1482 adam.pollack@eycf.com<br />
Ervin Anderson & Co. JV Tom Ervin <strong>and</strong> Bill Anderson U.S. 214-363-2401 eetradeco.com<br />
Foundation Energy Eddie Rhea U.S. 972-934-8385 foundationenergy.com<br />
Friedman, Billings Ramsey Patrick Keeley Global 703-469-1221 fbr.com<br />
Gaffney, Cline & Associates Ian Dunderdale Global 713-850-9955 gaffney-cline.com<br />
Graves & Co. John Graves Global 713-650-0811 graves-co.com<br />
Greenhill Capital Partners Scott L. Bok Global 212-389-1500 greenhill-co.com<br />
Griffis & Associates Richard Griffis U.S. 713-650-8600 rgriffis.com<br />
Growth Capital Partners Jonathan Hough U.S. 281-445-6611 growth-capital.com<br />
GT International Inc. Robert Patterson Global 713-298-4997 globaltradedays.com<br />
Harrison Lovegrove LP Paul Willcocks or Justin Loweth Global 713-877-9588 hargrove.co.uk<br />
IndigoPool Les Finalle <strong>and</strong> Greg Mowlds Global 713-513-1513 indigopool.com<br />
Jefferies & Co. Inc. Mike Morgan Global 281-774-2000 jefferies.com<br />
Kobayashi Partners Ltd. Ross Kobayashi Canada 403-298-9728 kobayashi.ab.ca<br />
Lantana <strong>Oil</strong> & <strong>Gas</strong> Partners David Nini or Andy Taurins U.S. 713-426-9001 lantanaoil<strong>and</strong>gas.com<br />
Laredo NB Energy Advisors Delbert Pierson U.S. 713-967-7252 lnb.com<br />
Madison Energy Advisors Tim Sullivant U.S. 713-963-6204 ogjexchange.com<br />
Meagher <strong>Oil</strong> & <strong>Gas</strong> Properties Matt Meagher U.S. 303-721-6354 meagheroil.com<br />
Mitchell Energy Advisors Mike Mitchell or Mynan Feldman U.S. 469-916-7484 mitchellenergypartners.com<br />
Moyes & Co. Inc. Chris Moyes Global 214-363-9020 moyesco.com<br />
<strong>Oil</strong>exchange.com Geoff Jackson U.S. 303-825-0775 oilexchange.com<br />
<strong>Oil</strong>Properties.com James Heck U.S. 512-467-7724 oilproperties.com<br />
Petrie Parkman & Co. Sylvia Barnes Global 713-650-3383 petrieparkman.com<br />
PetroAdvisor SA Ivar Haal<strong>and</strong> Europe 47 23 11 28 83/85 petroadvisor.no<br />
PetroGrowth Advisors Grant Schwartzwelder U.S. 972-432-1470 petrogrowth.com<br />
PetroSales David M. Smart U.S. 281-468-9053 PetroSales.com<br />
PLS Ronyld Wise U.S. 713-650-1212 plsx.com<br />
R<strong>and</strong>all & Dewey Inc. Joe Gladbach or Bill Marko Global 281-774-2000 r<strong>and</strong>ew.com<br />
Reef Energy Resources LLC Arun K. Metre U.S. 713-529-5231 reef-energy.com<br />
Richardson Barr & Co. Scott Richardson or Stephen Barr U.S. 713-585-3300 richardsonbarr.com<br />
Riviera Energy Corp. Jeffrey P. Longbotham U.S. 432-686-9400 rivieraenergy.com<br />
Sayer Securities Ltd. Alan Tambosso Canada 403-266-6133 sayersecurities.com<br />
Scotia Waterous Adrian Goodisman or Jay Brown Global 713-437-5050 waterous.com<br />
Simplex Energy Solutions David Fowler U.S. 432-683-3791 simplexenergy.com<br />
Skipping Stone Dave Denbina N. America 281-902-5104 skippingstone.com<br />
Stellar Energy Advisors Ltd. John McCallum Europe 44 0 (20) 7493 1977 stellarlimited.com<br />
The Dillard Anderson Group Max Dillard or Sam Anderson Global 281-873-6100 dillard<strong>and</strong>erson.com<br />
The <strong>Oil</strong> & <strong>Gas</strong> Asset Clearinghouse Ron Barnes or Dan Sodersten U.S. 281-873-4600 ogclearinghouse.com<br />
The <strong>Oil</strong> Auction.com Keith Sackett U.S. 402-232-5949 theoilauction.com<br />
The Scotia Group Inc. David Heather Global 281-448-6188 scotia-group.com<br />
Tristone Capital-Canada Brad Hurtubise Canada 403-294-9541 tristonecapital.com<br />
Tristone Capital-U.S. Rob Bilger or David Marcell U.S. 832-601-7650 tristonecapital.com<br />
Upstream Advisors LP Lee Moncrief U.S. 713-658-1001 upstreamadvisors.com<br />
Wachovia Capital Markets Bill Haskins U.S. 713-346-2705 wachovia.com<br />
Weisser, Johnson & Co. Frank Weisser or Scott Johnson U.S. 713-659-4600 weisserjohnson.com<br />
Wells Fargo Energy Advisors Tom Hedrick or Kevin Neeley U.S. 713-319-1324 wfenergyadvisors.com<br />
Listings in bold are new or updated this month. To be listed here, call 713-993-9325 Ext. 165. The listing is free.<br />
A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong> • 19
E&P A&D News<br />
—Acquisitions<br />
—Divestitures<br />
—Capital Providers<br />
—Joint Ventures<br />
—People<br />
Buyer Seller Location of Assets Comments<br />
For more details on each deal, see the text that follows this chart. The deals are described in the order in which they appear here.<br />
U.S.<br />
ATP <strong>Oil</strong> & <strong>Gas</strong> Corp. NA Gulf of Mexico OCS Production: 25 MMcfe/d, net<br />
Black Dragon Resource Cos. NA Louisiana Shallow rights<br />
Black Dragon Resource Cos. Petrol Industries Inc. Louisiana & Texas 400 oil wells<br />
Black Gold <strong>Gas</strong> & <strong>Oil</strong> Inc. Foster <strong>Oil</strong> & <strong>Gas</strong> Kansas Cherokee Basin acreage<br />
Burlington Resources Inc. T-Bar-X Texas Production: 47 MMcfe/d<br />
Cadence Resources Corp. Aurora Energy Ltd. Mich., Ill. basins Acreage<br />
Canyon Creek <strong>Oil</strong> & <strong>Gas</strong> Inc., NA Texas Lease<br />
Universal Property Development <strong>and</strong> .<br />
Acquisition Corp<br />
Chesapeake Energy Corp. Columbia Natural Resources LLC W. Va., Ky., Ohio, Pa., N.Y. Proved: 1.1 Tcfe<br />
Chesapeake Energy Corp. <strong>Gas</strong>tar Exploration Ltd. Texas Stock in co.; interest in prospect,<br />
acreage<br />
Delta Petroleum Corp. Castle Energy Corp. Pennsylvania Production<br />
Dune Energy Inc. Voyager Partners Ltd. Texas Proved: 27 Bcfe<br />
EGPI Firecreek Inc. NA Wyoming WI<br />
EnDevCo Inc. NA Oklahoma WI<br />
Energy Resource Technology Inc. Deep Gulf Energy LP Gulf of Mexico WI<br />
Exxel Energy (USA) Ltd. NA Washington WI<br />
Greater Sooner Exploration Inc. NA Oklahoma Leases<br />
The Houston Exploration Co. Kerr-McGee Corp. Texas Proved: 88 Bcfe<br />
IAS Communications Inc. NA Tennessee WI<br />
Jay Petroleum LLC Ness Energy Texas WI<br />
MAB Resources LLC American <strong>Oil</strong> & <strong>Gas</strong> Inc. Utah Leases<br />
New Century Energy Corp. NA Texas WI<br />
Parallel LP Various Texas Proved: 2.9 MMBOE<br />
Petrosearch Energy Corp. Quinduno Energy LLC Texas WI<br />
Phoenix Associates L<strong>and</strong> Syndicate NA Wyoming Lease<br />
Public <strong>Gas</strong> Partners Inc. Various U.S. Proved: 115 Bcfe<br />
Santos Ltd. Tipperary Corp. Australia, Colo., Neb. Acreage<br />
Texas American Resources Co. NA Colorado Proved: 56.4 Bcfe<br />
NA The X-Change Corp. Texas Wells<br />
Unit Petroleum Co. Various Okla., Ark., Texas Proved: 42.5 Bcfe<br />
Vinoble Inc. NA Louisiana WI<br />
Wentworth Energy Inc. NA Utah <strong>Oil</strong>-s<strong>and</strong>s project<br />
Canada<br />
Canex Energy Inc. NA Alberta Production: 150 BOE/d<br />
Chamaelo Exploration Ltd. Tournament Energy Ltd., et al. Alberta Production: 3,100 BOE/d<br />
Golden Apple <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong> Inc. NA Quebec Acreage<br />
Keeper Resources Inc. NA Alberta WI<br />
Kootenay Energy Inc. NA Saskatchewan Production: 90 BOE/d<br />
Kootenay Energy Inc. NA Saskatchewan Proved: 93,000 BOE<br />
Rolling Thunder Exploration Ltd. San Telmo Energy Ltd. Alberta Production<br />
Temple Energy Inc. Relentless Energy Corp. Alberta, B.C. Production<br />
True Energy Inc. et al. True Energy Inc. et al. Saskatchewan, Alberta Production: 14,000 BOE/d<br />
Tuscany Energy Ltd. NA Saskatchewan Production: 190 BOE/d<br />
Australia<br />
Santos Ltd. Tipperary Corp. Australia, Colo., Neb. WI<br />
20 • A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong>
E&P A&D News<br />
Buyer Seller Location of Assets Comments<br />
Europe<br />
Fairfield Energy Ltd. Acorn <strong>Oil</strong> & <strong>Gas</strong> Ltd. North Sea Acreage<br />
Maersk Olie og <strong>Gas</strong> AS Kerr-McGee Corp. North Sea Proved: 231 MMBOE<br />
Sonoran Energy Inc. Baron <strong>Oil</strong> Middle East, Texas NA<br />
FSU<br />
Cardinal Resources Plc Rudis Drilling Co. Ukraine Reserves: 9.1 MMBOE<br />
CNPC International Ltd. PetroKazakhstan Inc. Kazakhstan 2P: 549.8 MMBOE<br />
Latin America<br />
Coplex Petroleo do Brasil Ltda. Queiroz Galvao Perfuracao SA Brazil Reserves: 7 MMBOE<br />
Kerr-McGee Corp. NA Trinidad <strong>and</strong> Tobago Acreage<br />
E&P A&D—U.S.<br />
ATP <strong>Oil</strong> & <strong>Gas</strong> Corp., Houston, (Nasdaq:<br />
ATPG) has acquired substantially all of the<br />
oil <strong>and</strong> gas properties of a privately held<br />
company for $40 million. The properties are<br />
on the Gulf of Mexico shelf.<br />
Net production is 25 million cubic feet of<br />
gas equivalent per day <strong>and</strong> ATP has agreed<br />
not to disclose the total associated reserves.<br />
ATP will be the operator of most of the<br />
acquired blocks.<br />
Black Dragon Resource Cos. Inc., Austin,<br />
Texas, (Pink Sheets: BDGR) plans to<br />
acquire the shallow rights to Ferry Lake in<br />
Caddo Pine Isl<strong>and</strong> Field, Louisiana, for $3.4<br />
million. The acquisition will be financed<br />
through debt secured by the property.<br />
Black Dragon Resource Cos., Austin,<br />
Texas, (Pink Sheets: BDGR) has purchased<br />
some 400 oil wells in Caddo Pine Isl<strong>and</strong><br />
Field in Louisiana <strong>and</strong> Texas from Petrol<br />
Industries Inc., Shreveport, La., (OTCBB:<br />
PTLD) for $3 million.<br />
Petrol plans to use the proceeds to<br />
acquire additional oil-services equipment.<br />
The sale completes Petrol’s transition to an<br />
energy-services company.<br />
Black Gold <strong>Gas</strong> & <strong>Oil</strong> Inc., Fort Lauderdale,<br />
Fla., (Pink Sheets: BKGD) plans to<br />
acquire approximately 8,000 acres in the<br />
Cherokee Basin of southeastern Kansas<br />
from Kansas-based Foster <strong>Oil</strong> & <strong>Gas</strong>. Foster<br />
will be the operator.<br />
Burlington Resources Inc., Houston,<br />
(NYSE: BR) plans to acquire substantially<br />
all the assets of a privately held company<br />
that is a co-owner with Burlington in the<br />
Savell Field, East Texas, for $400 million.<br />
Sources report the seller is T-Bar-X.<br />
The transaction is expected to close in the<br />
beginning of January.<br />
The acquisition will increase Burlington’s<br />
production in the field <strong>and</strong> raise its<br />
Bossier Trend lease-holdings to approximately<br />
200,000 net acres. Burlington will<br />
also gain additional exploratory rights in the<br />
area <strong>and</strong> related 3-D seismic data, as well as<br />
small nonoperated interests in the nearby<br />
Bald Prairie <strong>and</strong> Garby fields.<br />
The acquisition includes some 26,870 net<br />
acres with current production of some 47<br />
million cubic feet of gas equivalent per day.<br />
Burlington’s interests in 16 producing wells<br />
in the Savell Field will increase to 100% as<br />
a result of this transaction.<br />
“We are very pleased to have this opportunity<br />
to exp<strong>and</strong> our holdings in such a<br />
promising new drilling trend,” says Bobby<br />
Shackouls, Burlington chairman, president<br />
<strong>and</strong> chief executive. The expansion does not<br />
require additional equipment or personnel,<br />
he adds.<br />
St<strong>and</strong>ard & Poor’s reports this acquisition<br />
will not immediately affect Burlington’s<br />
rating of BBB+/Stable/A-2. The transaction<br />
will be financed with cash on h<strong>and</strong> <strong>and</strong> is<br />
consistent with S&P’s expectations <strong>and</strong><br />
Burlington’s growth strategy, the credit-rating<br />
firm says.<br />
Cadence Resources Corp., Traverse City,<br />
Mich., (OTCBB: CDNR) has acquired Traverse<br />
City, Mich.-based Aurora Energy<br />
Ltd. for 37.5 million Cadence common<br />
shares.<br />
Aurora develops unconventional gas<br />
reservoirs including black shales, coal seams<br />
<strong>and</strong> tight s<strong>and</strong>s from properties in the Michigan<br />
<strong>and</strong> Illinois basins. Aurora’s assets<br />
include some 143,000 gross acres (65,000<br />
net) of leases in Michigan’s Antrim play,<br />
<strong>and</strong> interests in some 520,000 gross acres<br />
(225,000 net) in the New Albany shale gas<br />
play in Indiana <strong>and</strong> Kentucky.<br />
Privately held, Houston-based Canyon<br />
Creek <strong>Oil</strong> & <strong>Gas</strong> Inc. <strong>and</strong> Universal Property<br />
Development <strong>and</strong> Acquisition Corp.<br />
(OTCBB: UPDA) have completed the purchase<br />
of a 266.73-acre lease in Starr County,<br />
Texas. The lease is in the Boyle Field.<br />
Chesapeake Energy Corp., Oklahoma<br />
City, (NYSE: CHK) has closed the acquisition<br />
of Columbia Natural Resources LLC<br />
<strong>and</strong> certain affiliated entities from West Virginia-based<br />
Triana Energy Holdings LLC<br />
for $2.2 billion in cash, the assumption of an<br />
estimated $75 million working-capital<br />
deficit <strong>and</strong> liabilities related to Columbia’s<br />
prepaid sales agreement <strong>and</strong> hedging positions.<br />
Chesapeake financed the acquisition<br />
from cash on h<strong>and</strong> <strong>and</strong> through the issuance<br />
of senior notes <strong>and</strong> stock. Morgan Stanley<br />
& Co. Inc. <strong>and</strong> Credit Suisse First Boston<br />
LLC were advisors to Triana.<br />
The acquisition includes an estimated 2.5<br />
trillion cubic feet of gas equivalent of<br />
proved, probable <strong>and</strong> possible reserves, of<br />
which 1.1 trillion equivalent are proved.<br />
Chesapeake will initially recognize 56% of<br />
the total reserves. The difference is due to<br />
Columbia Natural’s obligations in a gassales<br />
contract estimated at $750 million in<br />
remaining liability.<br />
Columbia’s current daily net production<br />
is approximately 125 million equivalent,<br />
indicating a proved reserves-to-production<br />
index of 23 years.<br />
The properties are principally in West<br />
Virginia, Kentucky, Ohio, Pennsylvania <strong>and</strong><br />
New York.<br />
After the preliminary allocation of $175<br />
million of the $2.2-billion purchase price to<br />
Columbia’s midstream gas assets being<br />
A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong> • 21
E&P A&D News<br />
acquired <strong>and</strong> $500 million to the unevaluated<br />
portion of the 4.1 million net leasehold<br />
acres being acquired—3.5 million net acres<br />
in the U.S. <strong>and</strong> 0.6 million net acres in<br />
Canada—Chesapeake’s acquisition cost for<br />
the 1.1 trillion equivalent of estimated<br />
proved reserves was some $1.45 per equivalent,<br />
according to Chesapeake.<br />
Chesapeake estimates that its all-in cost<br />
of acquiring <strong>and</strong> developing the 2.5 trillion<br />
equivalent of reserves will be about $2.48<br />
per thous<strong>and</strong> cubic feet of gas equivalent.<br />
Chesapeake has identified 1,316 proved<br />
undeveloped locations, 6,286 probable locations<br />
<strong>and</strong> 1,833 possible locations for a total<br />
of 9,435 undrilled locations, or an estimated<br />
drilling inventory of more than 15 years.<br />
Chesapeake now owns an internally estimated<br />
14.3 trillion cubic feet equivalent of<br />
proved <strong>and</strong> unproved reserves, of which 7.3<br />
trillion equivalent are proved (92% gas;<br />
100% onshore). The company intends to<br />
spend some $200 million per year to further<br />
develop the acquired properties.<br />
Aubrey K. McClendon, Chesapeake<br />
chairman <strong>and</strong> chief executive, says the deal<br />
adds l<strong>and</strong> <strong>and</strong> gas-resource inventories <strong>and</strong><br />
moves the company into the “large, prolific<br />
<strong>and</strong> generally underexplored <strong>and</strong> unconsolidated<br />
Appalachian Basin;” <strong>and</strong> the gas gets<br />
a premium price to Nymex, “rather than for<br />
the steep discount to Nymex that most other<br />
U.S. natural gas sells for today.”<br />
He adds that the basin is similar to its traditional<br />
area of operation: the Midcontinent.<br />
Triana was formed in 2001 by management<br />
<strong>and</strong> executives of Metalmark Capital<br />
LLC as a Morgan Stanley Capital Partners<br />
portfolio company. It had purchased<br />
CNR in 2003 for only $330 million plus<br />
assumption of forward-sales contracts.<br />
Chesapeake Energy Corp., Oklahoma<br />
City, (NYSE: CHK) has closed the acquisition<br />
of 19.9% of the common shares of<br />
Houston-based <strong>Gas</strong>tar Exploration Ltd.<br />
(Toronto: YGA; Pink Sheets: GSREF) <strong>and</strong><br />
the 33% working interest in <strong>Gas</strong>tar’s Deep<br />
Bossier play in the Hilltop prospect area of<br />
Leon <strong>and</strong> Robertson counties, East Texas.<br />
The companies have also formed an area of<br />
mutual interest to explore 13 counties in<br />
East Texas.<br />
The 26.9 million new shares of <strong>Gas</strong>co<br />
were purchased at $2.80 each for a total of<br />
approximately $72 million. <strong>Gas</strong>tar will use<br />
proceeds to accelerate drilling in East Texas,<br />
reduce short-term debt <strong>and</strong> other purposes.<br />
The price Chesapeake paid for interest in the<br />
Deep Bossier prospect area is approximately<br />
US$8.6 million in cash, plus Chesapeake<br />
will pay some drilling costs. <strong>Gas</strong>tar is operator<br />
of all wells in the Hilltop prospect.<br />
Separately, the area of mutual interest<br />
(AMI) covers all of Leon, Robertson, Houston,<br />
Cherokee, Madison, Anderson, Angelina,<br />
Nacogdoches, Trinity, Polk, Shelby, San<br />
Augustine <strong>and</strong> Sabine counties, Texas. For<br />
three years after closing, Chesapeake may<br />
purchase up to 50% of any leasehold/working<br />
interest rights acquired by <strong>Gas</strong>tar in the<br />
area.<br />
Aubrey K. McClendon, Chesapeake<br />
chairman <strong>and</strong> chief executive, says, “We are<br />
pleased to have closed this transaction <strong>and</strong><br />
now look forward to working closely with<br />
<strong>Gas</strong>tar in the years ahead to more fully<br />
develop the Hilltop prospect property <strong>and</strong> to<br />
participate in new prospects in the 13-county<br />
AMI.”<br />
J. Russell Porter, <strong>Gas</strong>tar president <strong>and</strong><br />
CEO, says, “We believe that entering into<br />
this transaction with Chesapeake creates significant<br />
value for <strong>Gas</strong>tar through Chesapeake’s<br />
contribution of expertise, capital <strong>and</strong><br />
access to drilling rigs <strong>and</strong> services. With<br />
Chesapeake’s involvement we will be able<br />
to accelerate exploration <strong>and</strong> development<br />
drilling of the Hilltop area resulting in the<br />
creation of that value sooner, <strong>and</strong> hopefully<br />
in greater amounts, than had <strong>Gas</strong>tar continued<br />
exploration <strong>and</strong> development of the<br />
Hilltop area independently.”<br />
Delta Petroleum Corp., Denver, (Nasdaq:<br />
DPTR) plans to acquire Castle Energy<br />
Corp., King of Prussia, Pa., (Nasdaq:<br />
CECX) for 8.5 million common shares.<br />
The acquisition includes 6.7 million<br />
shares of Delta currently held by Castle. Castle<br />
also holds $40 million in net cash <strong>and</strong> producing<br />
properties in western Pennsylvania.<br />
Lehman Brothers Inc. is advisor to<br />
Delta for the transaction, which is expected<br />
to close by the end of February. This merger<br />
was not possible until Castle’s recent settlement<br />
of litigation with Chevron for $5.8<br />
million in September.<br />
St<strong>and</strong>ard & Poor’s says Delta’s rating<br />
of B-/Stable/-- will be unaffected by this<br />
acquisition because the acquisition was<br />
anticipated in the current rating <strong>and</strong> the equity<br />
financing is consistent with expectations<br />
for a significant equity component to all<br />
material acquisitions.<br />
Houston-based Dune Energy Inc.’s (Amex:<br />
DNE) planned acquisition of 95% of Voyager<br />
Partners Ltd.’s interest in producing<br />
<strong>and</strong> nonproducing oil <strong>and</strong> gas properties in<br />
the Barnett Shale play in the Fort Worth<br />
Basin, Texas, for $56 million has been<br />
increased to $68.3 million. The revision is<br />
due to higher allocated values for certain<br />
properties as well as the substitution of new<br />
properties for properties that are no longer<br />
part of the acquisition.<br />
Voyager has also assigned to Dune a contract<br />
to purchase properties in Denton County,<br />
Texas, from a third party for approximately<br />
$5 million. Dune expects to close this<br />
purchase by mid-November.<br />
Dune has received a written financing<br />
commitment from St<strong>and</strong>ard Bank Plc for<br />
up to $50 million. The remainder of the purchase<br />
price <strong>and</strong> drilling will be funded by<br />
selling subordinated debt <strong>and</strong> equity.<br />
It is estimated that 100 drilling locations<br />
exist on the acquired properties with approximately<br />
27 billion cubic feet of gas equivalent<br />
of net proved reserves. Dune Operating<br />
Co., a wholly owned subsidiary of Dune<br />
Energy, will be operator. Voyager will retain<br />
a 5% working interest, <strong>and</strong> an affiliate of<br />
Voyager will operate for Dune on a contract<br />
basis after the closing.<br />
This acquisition is expected to provide<br />
Dune with a third core area of operations<br />
<strong>and</strong> multi-year inventory of drilling locations.<br />
Closing will be in three tranches between<br />
mid-<strong>December</strong> <strong>and</strong> the end of February.<br />
EGPI Firecreek Inc., Scottsdale, Ariz.,<br />
(OTCBB: EFCR) has acquired a 50% working<br />
interest in 1,600 acres of proven undeveloped<br />
<strong>and</strong> probable gas reserves in Green<br />
River Basin, Wyoming. The project will be<br />
operated by Newport <strong>Oil</strong> Corp.<br />
EnDevCo Inc., Houston, (OTCBB: ENDE)<br />
plans to purchase 100% rights in the west<br />
<strong>and</strong> central units of Short Junction Field in<br />
Oklahoma City.<br />
The field includes 12,000 acres with 19<br />
active wells that are currently producing 121<br />
barrels of oil <strong>and</strong> 400,000 cubic feet of gas<br />
per day.<br />
22 • A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong>
E&P A&D News<br />
The company has made a $500,000<br />
deposit on the deal, <strong>and</strong> will use debt to<br />
complete the purchase by the beginning of<br />
this month.<br />
Energy Resource Technology Inc., Houston,<br />
a wholly owned subsidiary of Cal Dive<br />
International Inc., (Nasdaq: CDIS) has<br />
acquired a 40% working interest in the Tiger<br />
discovery in the Gulf of Mexico through an<br />
exchange with Deep Gulf Energy LP in<br />
which Energy Resource traded a 15% working<br />
interest in the Bass Lite discovery.<br />
Each party reimbursed the other for sunk<br />
costs, resulting in an approximate $1-million<br />
payment by Energy Resource to Deep Gulf.<br />
The Tiger discovery contains proved<br />
undeveloped gas reserves in a Pliocene-age<br />
s<strong>and</strong>. Expected start of production is mid-<br />
2006 at a gross rate of 40 million cubic feet<br />
of gas per day.<br />
Exxel Energy (USA) Ltd., a wholly owned<br />
subsidiary of Exxel Energy Corp., Vancouver,<br />
(Toronto Venture: EXX) has acquired a<br />
100% working interest in some 52,000 acres<br />
of state-owned l<strong>and</strong>s in the Columbia River<br />
Basin of central Washington. The interests<br />
are undeveloped.<br />
Greater Sooner Exploration Inc., Healdton,<br />
Okla., (Pink Sheets: GSNH) plans to<br />
acquire two leases in Carter County, Oklahoma.<br />
The leases consist of 35 acres of<br />
proven oil reserves <strong>and</strong> four wells. Additional<br />
details of the transaction were not disclosed.<br />
The Houston Exploration Co., Houston,<br />
(NYSE: THX) plans to acquire an estimated<br />
88 billion cubic feet of gas equivalent (75%<br />
gas; 40% proved developed) of proved<br />
reserves in South Texas for $163 million<br />
from Oklahoma City-based Kerr-McGee<br />
Corp. (NYSE: KMG).<br />
Net production is approximately 10 million<br />
cubic feet of gas equivalent from four<br />
fields. The assets will be operated by Houston<br />
Exploration. Closing is expected by the<br />
end of November.<br />
The properties will increase THX’s position<br />
in South Texas by 26,300 net acres. The<br />
company plans to finance this transaction<br />
with borrowings under its existing revolving<br />
credit facility.<br />
IAS Communications Inc., Vancouver,<br />
(OTCBB: IASCA) plans to purchase a<br />
100% interest in an oil-producing well in<br />
Overton, Clay County, Tennessee. Additional<br />
details of the transaction were not disclosed.<br />
Houston-based Jay Petroleum LLC, a<br />
wholly owned subsidiary of Isramco Inc.,<br />
(Nasdaq: ISRL) has acquired a 15% participation<br />
in the development of Barnett Shale<br />
acreage in Parker County, Texas, from Ness<br />
Energy, Willow Park, Texas, (OTCBB:<br />
NESS) for $2.1 million.<br />
In addition, Jay Petroleum now has the<br />
right to participate for up to a 40% working<br />
interest in any well that will be drilled by<br />
Ness in shallower formations in the Barnett<br />
Shale.<br />
A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong> • 23
E&P A&D News<br />
Kerr-McGee Corp., Oklahoma City,<br />
(NYSE: KMG) has entered sales agreements<br />
with multiple parties as part of its<br />
divestiture program of select U.S. onshore<br />
oil <strong>and</strong> gas properties for gross proceeds of<br />
approximately $510 million.<br />
The figure includes estimated proceeds<br />
from the November auction of minor-value<br />
properties, cash received in a recently closed<br />
property trade <strong>and</strong> the previously announced<br />
sales agreement with Encore Acquisition<br />
Co.<br />
Properties included in the divestiture program<br />
are noncore assets in Texas, Oklahoma,<br />
Louisiana, Colorado <strong>and</strong> Wyoming<br />
with estimated proved reserves of approximately<br />
48 million barrels of oil equivalent<br />
(50% undeveloped) <strong>and</strong> production of<br />
approximately 8,000 barrels of oil equivalent<br />
per day. The sale includes some 2,300<br />
wells <strong>and</strong> 100 fields.<br />
New Zeal<strong>and</strong>-based Chinese company King<br />
Win Laurel Ltd. filed papers with the SEC<br />
offering to buy Irving, Texas-based Exxon<br />
Mobil Corp. (NYSE: XOM) for $450 billion<br />
last week, but Exxon executives aren’t<br />
inclined to take the offer seriously, the L.A.<br />
Times reports.<br />
MAB Resources LLC plans to acquire<br />
three oil <strong>and</strong> gas leases covering approximately<br />
6,400 net mineral acres in Box Elder<br />
County, Utah, from American <strong>Oil</strong> & <strong>Gas</strong><br />
Inc., Denver, (Amex: AEZ) <strong>and</strong> various<br />
third parties for a total of $1.2 million in<br />
cash.<br />
The deal is expected to close in <strong>December</strong>.<br />
The leases are in Utah’s Great Salt Lake<br />
Basin in the West Rozel Field.<br />
American <strong>Oil</strong> & <strong>Gas</strong> will retain an overriding<br />
royalty interest of approximately<br />
2.65% <strong>and</strong> will receive $0.48 for each barrel<br />
of hydrocarbon produced <strong>and</strong> sold.<br />
Maverick <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong> Inc., Fort Lauderdale,<br />
Fla., (OTCBB: MVOG) has settled<br />
litigation with Camden Resources Inc.,<br />
Dallas, over a planned acquisition.<br />
Maverick had sued Camden for the return<br />
of a $5-million, earnest-money deposit.<br />
Camden countersued. The matter was settled<br />
for the return of $750,000 to Maverick;<br />
Camden will retain the balance.<br />
Maverick was to purchase Camden’s<br />
assets, which are in South Texas <strong>and</strong> were<br />
estimated in 2004 to contain 59 billion cubic<br />
feet equivalent of proved gas reserves <strong>and</strong><br />
71 billion cubic feet equivalent of total<br />
reserves (96% gas; 98% operated).<br />
Production net to Camden in 2004 was<br />
approximately 6 million cubic feet of<br />
gas equivalent per day. The producing<br />
fields are in south <strong>and</strong> southeast Texas <strong>and</strong><br />
contain 17 operated producing wells.<br />
New Century Energy Corp., Houston,<br />
(OTCBB: NCEY) plans to acquire an additional<br />
1.75% working interest in the Wishbone<br />
Field in McMullen County, Texas,<br />
increasing its ownership to 15.2%.<br />
The field has net proved <strong>and</strong> probable gas<br />
reserve potential of some 12 billion cubic<br />
feet in this field. Closing is expected by mid-<br />
January. US Enercorp Ltd. is operator of<br />
the field.<br />
Parallel LP, a subsidiary of Parallel Petroleum<br />
Corp., Midl<strong>and</strong>, Texas, (Nasdaq:<br />
PLLL) has completed a portion of its acquisition<br />
of producing <strong>and</strong> undeveloped properties<br />
from six of 10 unaffiliated parties for a<br />
combined price of $20.8 million.<br />
The closings involve approximately 2.9<br />
million barrels of oil equivalent of proved<br />
reserves. All 10 deals involve 6.4 million<br />
proved barrels equivalent for a total of<br />
approximately $44.5 million. Additional<br />
closings are expected by mid-January.<br />
The acquired properties are in the Permian<br />
Basin of West Texas <strong>and</strong> have current<br />
gross production from 35 wells of approximately<br />
650 barrels equivalent per day (440<br />
barrels equivalent, net). Parallel is operator,<br />
with a 90% working interest <strong>and</strong> 67.5% net<br />
revenue interest.<br />
The properties include approximately<br />
6,100 gross acres in Andrews <strong>and</strong> Gaines<br />
counties, Texas. Approximately 1,300 gross<br />
acres of the total leasehold have been developed.<br />
Petrosearch Energy Corp., Houston, (Pink<br />
Sheets: PTSG) has completed the acquisition<br />
of a 100% working interest in 1,780<br />
acres in the Quinduno Field, Roberts County,<br />
Texas, from Quinduno Energy LLC.<br />
Phoenix Associates L<strong>and</strong> Syndicate, Covington,<br />
La., (Pink Sheets: PBLS) has<br />
acquired an oil lease for its Mid-<br />
South/Rome oil <strong>and</strong> gas division for cash.<br />
The lease is in Wyoming <strong>and</strong> consists of 880<br />
acres.<br />
Public <strong>Gas</strong> Partners Inc., Kennesaw, Ga.,<br />
has closed three transactions <strong>and</strong> signed an<br />
agreement for a fourth transaction to purchase<br />
approximately 115 billion cubic feet<br />
of gas equivalent of proved reserves (73%<br />
proved, developed <strong>and</strong> producing) for a total<br />
cost of $330 million. Current production<br />
from the properties totals some 35 million<br />
cubic feet of gas equivalent per day (75%<br />
gas).<br />
The interests are nonoperated. The fourth<br />
transaction is expected to close by January.<br />
Dallas-based Mitchell Energy Advisors<br />
was advisor to Public <strong>Gas</strong> Partners on the<br />
largest transaction.<br />
The combined assets include working<br />
interests in more than 2,000 predominantly<br />
gas wells in nine states.<br />
Susan Reeves, president of Public <strong>Gas</strong><br />
Partners, says, “We are very pleased with<br />
the property characteristics <strong>and</strong> future development<br />
opportunities of the reserves. More<br />
importantly, we have aligned PGP with<br />
industry experts that will provide the technical<br />
<strong>and</strong> operational support we need to maximize<br />
the assets.”<br />
Public <strong>Gas</strong> Partners is a non-profit gas<br />
agency formed by seven municipally owned<br />
gas <strong>and</strong> electric utilities in Georgia, Florida,<br />
Alabama, Tennessee <strong>and</strong> South Carolina. It<br />
was created to secure economical, long-term<br />
wholesale gas supplies for member agencies<br />
to stabilize <strong>and</strong> reduce the cost of gas feedstock.<br />
Australia-based Santos Ltd. (Nasdaq:<br />
STOSY) has completed the acquisition of<br />
Tipperary Corp., Denver, (Amex: TPY)<br />
for US$7.41 per Tipperary share, for a deal<br />
value of approximately $466 million,<br />
including assumption of debt. (For more on<br />
this, see “E&P A&D News—Australia.”)<br />
Texas American Resources Co., Austin,<br />
Texas, has acquired several producing properties<br />
in the Denver-Julesburg Basin, northeast<br />
Colorado, for $70 million.<br />
The acquisition includes producing properties<br />
in the Wattenberg Field in Adams <strong>and</strong><br />
Weld counties, Colorado, with estimated<br />
proved reserves of some 56.4 billion cubic<br />
feet of gas equivalent (43% developed; 66%<br />
gas). The properties have current production<br />
24 • A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong>
E&P A&D News<br />
of approximately 6 million cubic feet of gas<br />
equivalent per day (69% gas) <strong>and</strong> five wells<br />
waiting completion.<br />
Pro forma for this acquisition, Texas<br />
American Resources will have proved<br />
reserves of some 124 billion cubic feet of<br />
gas equivalent (63% developed; 36% gas)<br />
<strong>and</strong> net production of approximately 19 million<br />
cubic feet of gas equivalent per day<br />
(34% gas).<br />
The acquisition was financed with proceeds<br />
from the company’s $70-million senior<br />
revolving credit facility <strong>and</strong> a new fiveyear,<br />
$55-million subordinated, secured<br />
term loan.<br />
BNP Paribas, Union Bank of California<br />
NA <strong>and</strong> Hibernia Bank were agents for<br />
the financings, while Rivington Capital<br />
Advisors LLC was advisor for the transaction.<br />
“The DJ acquisition gives Texas American<br />
Resources an anchor asset in the Rockies<br />
<strong>and</strong> allows our company to grow our natural<br />
gas reserves in a repeatable play,” says<br />
David Honeycutt, president of Texas American<br />
Resources.<br />
The X-Change Corp., Dallas, (OTCBB:<br />
XCHC) has completed the sale of low <strong>and</strong><br />
nonproducing wells in East Texas to an<br />
undisclosed East Texas operator for<br />
$500,000 in cash.<br />
Unit Petroleum Co., a wholly owned subsidiary<br />
of Unit Corp., Tulsa, Okla., (NYSE:<br />
UNT) has closed the acquisition of oil <strong>and</strong><br />
gas properties from a group of private entities<br />
for approximately $82 million in cash.<br />
The acquisition consists of approximately<br />
42.5 billion cubic feet of gas equivalent of<br />
proved reserves mostly in Oklahoma <strong>and</strong><br />
also in Arkansas <strong>and</strong> Texas. The fields produce<br />
6.5 million cubic feet of gas equivalent<br />
per day.<br />
Larry Pinkston, Unit president <strong>and</strong> chief<br />
executive, says the Oklahoma properties<br />
“will fit well with Unit’s core area of operations<br />
<strong>and</strong> will help us to further develop <strong>and</strong><br />
exploit fields <strong>and</strong> supply a basis for future<br />
drilling.”<br />
Vinoble Inc., Malibu, Calif., (OTCBB:<br />
VNBL) has completed the acquisition of a<br />
minority interest in the Clovelly prospect in<br />
Lafourche Parish, La. Additional details of<br />
the transaction were not disclosed.<br />
Wentworth Energy Inc., Fort Worth,<br />
Texas, (Pink Sheets: WNWG) has acquired<br />
an oil-s<strong>and</strong>s project in Utah’s Uinta Basin<br />
for 1 million shares of Wentworth common<br />
stock <strong>and</strong> a 12% royalty on net. The acquisition<br />
includes a 1,592-acre lease known as<br />
the Asphalt tar-s<strong>and</strong>s project.<br />
E&P A&D—Canada<br />
Canex Energy Inc., Calgary, (Toronto Venture:<br />
CXO) has acquired interests in certain<br />
gas wells <strong>and</strong> undeveloped l<strong>and</strong> in the Peace<br />
River Arch area of Alberta for C$5.5 million.<br />
A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong> • 25
E&P A&D News<br />
The properties have current production of<br />
approximately 150 barrels of oil equivalent<br />
per day (95% operated) <strong>and</strong> proved reserves<br />
of 190,000 barrels of oil equivalent. The<br />
package also includes varying interests in<br />
two field compressors, two generators, one<br />
sweetening unit <strong>and</strong> one compressor.<br />
Chamaelo Exploration Ltd., Calgary,<br />
(Toronto: CXN) plans to acquire privately<br />
held Tournament Energy Ltd. <strong>and</strong> a private<br />
technology company.<br />
Tournament has assets in Chamaelo’s<br />
west-central Alberta core area valued at<br />
approximately C$190 million. The assets<br />
include production of 3,100 barrels of oil<br />
equivalent per day (85% operated; 60%<br />
gas), 65,000 gross undeveloped acres <strong>and</strong><br />
51,000 net undeveloped acres. The assets<br />
also have estimated reserves of 6.1 million<br />
barrels of oil equivalent proved <strong>and</strong> 6.4 million<br />
of proved plus probable, giving the<br />
acquisition a price of C$28.60 per proved<br />
barrel equivalent, according to Chamaelo.<br />
The technology company’s business will<br />
be distributed to Chamaelo’s existing shareholders.<br />
Upon closing, which is expected in January,<br />
the combined company will have production<br />
of more than 5,000 barrels of oil<br />
equivalent per day (60% gas), an asset base<br />
focused in west-central Alberta, an undeveloped<br />
l<strong>and</strong> base of more than 115,000 net<br />
acres <strong>and</strong> some 60 identified potential<br />
drilling locations.<br />
GMP Securities Ltd. is advisor to<br />
Chamaelo; Tristone Capital Inc. is advisor<br />
to Tournament; <strong>and</strong> Sprott Securities Inc.<br />
is advisor to Chamaelo with respect to the<br />
technology company.<br />
Golden Apple <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong> Inc., Phoenix,<br />
(Pink Sheets: GAPJ) has acquired a property<br />
consisting of 17,976 hectares of l<strong>and</strong> in<br />
southern Quebec. Additional details of the<br />
transaction were not disclosed.<br />
Keeper Resources Inc., Calgary, (Toronto<br />
Venture: KEE) has purchased an additional<br />
interest in its Meekwap property in central<br />
Alberta for C$458,331. This purchase<br />
increases Keeper’s interest in a Nisku well to<br />
35% before pay-out (17.5% after pay-out).<br />
Kootenay Energy Inc., Calgary, (Toronto<br />
Venture: KTY) has completed the acquisition<br />
of a private Alberta corporation for 100<br />
Kootenay shares at C$0.50 each plus debt<br />
assumption of C$3.6 million.<br />
Kootenay gains oil <strong>and</strong> gas assets in the<br />
Hasting, Viewfield, Weyburn <strong>and</strong> Elswick<br />
areas of southeast Saskatchewan, establishing<br />
another core area to complement current<br />
gas production in central Alberta.<br />
The properties are nonoperated with<br />
working interests varying from 40% to 10%,<br />
<strong>and</strong> have light-oil production with a reservelife<br />
index of more than 10 years. The properties<br />
include approximately 360,000 barrels<br />
equivalent of proven <strong>and</strong> 435,000 barrels<br />
equivalent of proven-plus-probable reserves<br />
<strong>and</strong> associated infrastructure.<br />
Production is approximately 90 barrels of<br />
oil equivalent per day, resulting in new<br />
Kootenay production of approximately 190<br />
barrels equivalent per day.<br />
Kootenay Energy Inc., Calgary, (Toronto<br />
Venture: KTY) plans to acquire oil assets in<br />
southeast Saskatchewan for approximately<br />
C$2.1 million, including C$1.3 million in<br />
cash <strong>and</strong> 815,000 common shares.<br />
The purchase includes properties in the<br />
Hasting <strong>and</strong> Viewfield areas of southeast<br />
Saskatchewan. The acquisition at Hastings,<br />
where Kootenay recently gained a 40%<br />
working interest, will make Kootenay the<br />
operator with 100% working interest. This<br />
property also adds production of approximately<br />
53 barrels of oil per day.<br />
The nonoperated Viewfield assets will<br />
add approximately five barrels of oil per day<br />
to Kootenay’s production. The acquisition<br />
includes some 93,000 barrels of proven <strong>and</strong><br />
126,000 barrels of proven-plus-probable<br />
light-oil reserves.<br />
According to Kootenay, the acquisition<br />
price is C$16.78 per proved-plus-probable<br />
<strong>and</strong> C$22.74 per proved barrel of oil equivalent.<br />
Rolling Thunder Exploration Ltd., Calgary,<br />
(Toronto Venture: ROL) plans to<br />
acquire San Telmo Energy Ltd. (Toronto<br />
Venture: STU; OTCBB: STUOF) for<br />
C$0.60 per San Telmo share.<br />
San Telmo’s assets are in west-central<br />
<strong>and</strong> northern Alberta. On a pro forma basis,<br />
the combined company will have production<br />
of approximately 450 barrels of oil equivalent<br />
per day (82% gas) with approximately<br />
11,680 gross (9,266 net) acres of undeveloped<br />
l<strong>and</strong>, <strong>and</strong> 2,560 gross (1,920 net) acres<br />
under option.<br />
Sayer Securities Ltd. is advisor to San<br />
Telmo, while Acumen Capital Finance<br />
Partners Ltd. is advisor to Rolling Thunder.<br />
Privately held, Calgary-based Temple<br />
Energy Inc. has acquired privately held<br />
Relentless Energy Corp. for 24 million<br />
Temple shares.<br />
The combined company has approximately<br />
3.5 million barrels of oil equivalent<br />
of proven-plus-probable reserves <strong>and</strong> production<br />
is expected to average approximately<br />
1,100 barrels of oil equivalent per day<br />
(99% gas) in this quarter.<br />
This acquisition will allow Temple to<br />
exp<strong>and</strong> operations from the Deep Basin area<br />
of northwest Alberta into northeast British<br />
Columbia where Relentless operates a gas<br />
exploration <strong>and</strong> development project.<br />
FirstEnergy Capital Corp. was advisor<br />
to Temple.<br />
Calgary-based True Energy Inc., (Toronto:<br />
TUI) True Energy Trust <strong>and</strong> Vero Energy<br />
Inc. have completed the reorganization of<br />
True, TKE Energy Trust <strong>and</strong> Vero.<br />
In the deal, TKE acquired True <strong>and</strong><br />
changed its name to True Energy Trust. Previous<br />
shareholders of True received common<br />
shares of Vero.<br />
True Energy Trust has assets in<br />
Saskatchewan <strong>and</strong> Alberta <strong>and</strong> an enterprise<br />
value of approximately C$800 million. It<br />
now owns all of the assets of TKE <strong>and</strong><br />
approximately 90% of the assets of True.<br />
The trust has production of some 14,000<br />
barrels of oil equivalent per day <strong>and</strong> 350,000<br />
net acres of undeveloped l<strong>and</strong>.<br />
Tuscany Energy Ltd., Calgary, (Toronto<br />
Venture: TUS) has completed the acquisition<br />
of a private oil <strong>and</strong> gas company for<br />
C$5.97 million, consisting of C$4.9 million<br />
in cash <strong>and</strong> 2.2 million Tuscany common<br />
shares.<br />
The acquired assets include 3.5 net sections<br />
in west-central Saskatchewan with current<br />
production of approximately 190 net<br />
barrels of oil equivalent per day <strong>and</strong> proved<br />
<strong>and</strong> probable reserves of 557,000 barrels of<br />
oil equivalent.<br />
26 • A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong>
E&P A&D News—Australia<br />
Australia-based Santos Ltd. (Nasdaq:<br />
STOSY) has completed the acquisition of<br />
Tipperary Corp., Denver, (Amex: TPY)<br />
for US$7.41 per Tipperary share, for a deal<br />
value of approximately $466 million,<br />
including assumption of debt.<br />
Tipperary focused primarily on coalseam<br />
<strong>and</strong> conventional gas in Queensl<strong>and</strong>, Australia.<br />
The company’s assets include a<br />
75.25% capital interest <strong>and</strong> a 71.7% pre-royalty<br />
revenue interest in southeastern Queensl<strong>and</strong>’s<br />
Comet Ridge coalseam gas project<br />
totaling approximately 1.23 million acres<br />
<strong>and</strong> other exploration permits in Queensl<strong>and</strong><br />
totaling approximately 77,000 acres.<br />
Tipperary also holds interests in several<br />
exploration projects in Colorado <strong>and</strong><br />
Nebraska covering approximately 623,000<br />
acres.<br />
David Bradshaw, chief executive of Tipperary,<br />
says, “Our board of directors views<br />
this transaction as the successful culmination<br />
of our business plan. The strategy of<br />
building natural gas reserves in Australia<br />
<strong>and</strong> the United States has resulted in the creation<br />
of an asset base that is attractive to<br />
larger energy companies. This transaction<br />
represents an opportunity to deliver significant<br />
value to our shareholders.”<br />
Merrill Lynch was financial advisor to<br />
Santos. Tipperary’s financial advisor for the<br />
transaction was Houlihan Lokey Howard<br />
& Zukin, while the company’s legal advisor<br />
was Jones & Keller PC.<br />
Slough Estates USA Inc. owned 54% of<br />
Tipperary shares. Petrie Parkman & Co.<br />
was financial advisor to Slough, whose legal<br />
advisor was Skadden, Arps, Slate,<br />
Meagher & Flom LLP.<br />
E&P A&D—Europe<br />
Fairfield Energy Ltd., a newly formed<br />
U.K.-based E&P company, plans to acquire<br />
certain subsidiaries from Acorn <strong>Oil</strong> & <strong>Gas</strong><br />
Ltd., including interests in the ab<strong>and</strong>oned<br />
E&P A&D News<br />
Maureen <strong>and</strong> Crawford fields in the central<br />
<strong>and</strong> northern North Sea.<br />
The Maureen partnership, with<br />
Apache Corp. (NYSE: APA) as operator,<br />
recently acquired new 3-D-seismic<br />
data over the field <strong>and</strong> plans a multiwell<br />
appraisal program for 2006.<br />
Fairfield investors include Warburg<br />
Pincus, SGAM/4D Global Energy Development<br />
Capital Fund <strong>and</strong> Kern Energy<br />
Partners I Fund.<br />
Kerr-McGee Corp., Oklahoma City,<br />
(NYSE: KMG) has completed the sale of<br />
100% of the stock of Kerr-McGee (G.B.)<br />
Ltd. to Maersk Olie og <strong>Gas</strong> AS, a subsidiary<br />
of A.P. Moller-Maersk A/S, for<br />
US$2.95 billion. This transaction completes<br />
Kerr-McGee’s exit from the North Sea.<br />
The combination of this transaction <strong>and</strong><br />
the previously closed sale of the nonoperated<br />
portion of the company’s North Sea properties<br />
to Centrica Plc provides net after-tax<br />
proceeds of approximately $3.1 billion to<br />
Kerr-McGee.<br />
A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong> • 27
E&P A&D News<br />
“The company now has closed approximately<br />
75% of the expected $4.4 billion in<br />
net after-tax proceeds to be received this<br />
year, which enables us to continue our<br />
efforts to reduce leverage,” says Bob<br />
Wohleber, Kerr-McGee chief financial officer.<br />
“We expect to receive the remaining<br />
proceeds by year-end <strong>2005</strong>. In addition, we<br />
currently are evaluating bids for our Gulf of<br />
Mexico shelf properties.”<br />
Centrica purchased Kerr-McGee’s interests<br />
in four nonoperated North Sea fields <strong>and</strong><br />
related exploratory acreage <strong>and</strong> facilities for<br />
approximately US$566 million.<br />
The North Sea assets include proved<br />
reserves of approximately 231 million barrels<br />
of oil equivalent, <strong>and</strong> daily production<br />
of approximately 77,700 barrels of oil<br />
equivalent during second-quarter <strong>2005</strong>. Production<br />
was 21% of total Kerr-McGee output<br />
during that period.<br />
Sonoran Energy Inc., Phoenix, (OTCBB:<br />
SNRN) has acquired privately held, Norwegian-based<br />
Baron <strong>Oil</strong> for 19 million Sonoran<br />
shares. Baron has a presence in the Middle<br />
East, proven oil <strong>and</strong> gas reserves in<br />
Texas <strong>and</strong> opportunities in the Caspian<br />
Region.<br />
E&P A&D—FSU<br />
Cardinal Resources Plc, London, (AIM:<br />
CDL) has completed the acquisition of Rudis<br />
Drilling Co. from Hares Group Ltd. for an<br />
undisclosed sum.<br />
The acquisition adds 9.1 million barrels<br />
of oil equivalent, an increase of approximately<br />
50%, to Cardinal’s existing reserves,<br />
<strong>and</strong> increases net daily production 75% to<br />
more than 1,100 barrels of oil equivalent per<br />
day.<br />
With this acquisition, Cardinal will now<br />
own <strong>and</strong> operate three oil <strong>and</strong> gas licenses—<br />
Dubrivska, Bilousivsko-Chornukhinska <strong>and</strong><br />
North Yablunivska—<strong>and</strong> a 50% working<br />
interest in a joint activity agreement with<br />
Ukrgazvydobuvannya, a subsidiary of<br />
Naftogaz Ukraine.<br />
All acquired license areas are in eastern<br />
Ukraine.<br />
A wholly owned subsidiary of China-based<br />
CNPC International Ltd. has completed<br />
the acquisition of PetroKazakhstan Inc.,<br />
Calgary, (NYSE: PKZ) for US$55 per share<br />
in cash, giving the transaction a total value<br />
of approximately US$4.18 billion.<br />
PetroKazakhstan is now an indirect,<br />
wholly owned subsidiary of CNPC.<br />
“We are delighted that the process, which<br />
we started several months ago, has been successfully<br />
concluded,” says Bernard F. Isautier,<br />
PetroKazakhstan chairman, president <strong>and</strong><br />
chief executive. “CNPC has acquired a business<br />
full of opportunities <strong>and</strong> with high-caliber<br />
employees. We wish them future success<br />
in Kazakhstan.”<br />
PetroKazakhstan has operations in the<br />
South Turgai Basin in south-central Kazakhstan.<br />
As of Jan. 1, <strong>2005</strong>, its proved <strong>and</strong><br />
probable reserves were 549.8 million barrels<br />
of oil equivalent.<br />
Goldman Sachs International was<br />
financial advisor to PetroKazakhstan.<br />
E&P A&D—Latin America<br />
Coplex Petroleo do Brasil Ltda., a wholly<br />
owned subsidiary of Vancouver-based Naftex<br />
Energy Corp., has purchased an additional<br />
15% interest in the Cavalo Marinho<br />
Field <strong>and</strong> an additional 30% interest in the<br />
Estrela-do-Mar Field in Brazil for US$14<br />
million from Queiroz Galvao Perfuracao<br />
SA.<br />
After closing, the company will own<br />
42.5% of Cavalo Marinho <strong>and</strong> 57.5% of<br />
Estrela-do-Mar. This acquisition includes 7<br />
million barrels of reserves <strong>and</strong> increases<br />
Coplex Petroleo’s proved-plus-probable<br />
reserves 21%.<br />
Through its Trinidad <strong>and</strong> Tobago affiliates,<br />
Kerr-McGee <strong>Oil</strong> & <strong>Gas</strong> Corp., Oklahoma<br />
City, (NYSE: KMG) has acquired a 25%<br />
interest in the southern part of Block 2(c)<br />
retained exploration area <strong>and</strong> a 30% interest<br />
in Block 3(a), offshore Trinidad <strong>and</strong> Tobago.<br />
The blocks are adjacent to the Angostura<br />
Field in depths ranging from 150 to 300 feet<br />
of water. Partners in Block 2(c) are BHP<br />
Billiton (39% working interest) <strong>and</strong> Talisman<br />
(36%). Partners in Block 3(a) are BHP<br />
Billiton (30% working interest), Talisman<br />
(30%) <strong>and</strong> Total (10%). BHP Billiton operates<br />
both blocks.<br />
With the addition of these blocks, Kerr-<br />
McGee holds interests in more than 340,000<br />
gross acres offshore Trinidad <strong>and</strong> Tobago.<br />
Joint Ventures<br />
Global Environmental Energy Corp.,<br />
Nassau, Bahamas, (OTCBB: GEECF) its<br />
wholly owned subsidiary Sahara Petroleum<br />
Exploration Corp. <strong>and</strong> Algerian company<br />
Geoinvest Ltd. plan to form a joint<br />
venture with Sinopec Shengli <strong>Oil</strong>field Co.<br />
Ltd., a wholly owned subsidiary of China<br />
Petroleum <strong>and</strong> Chemical Corp., (NYSE:<br />
SHI) to develop three oil <strong>and</strong> gas projects.<br />
The projects involve two locations in<br />
Algeria <strong>and</strong> one is in Mauritania. The Shenzhen<br />
branch of Yankuang Group Co. Ltd.<br />
is the liaison party between Global <strong>and</strong><br />
Sinopec.<br />
New E&P Companies<br />
U.K.-based producer Fairfield Energy Ltd.<br />
has been formed with up to $200 million of<br />
funding from management <strong>and</strong> a syndicate<br />
of private-equity investors led by Warburg<br />
Pincus <strong>and</strong> including SGAM/4D Global<br />
Energy Development Capital Fund <strong>and</strong><br />
Kern Energy Partners I Fund.<br />
In its first deal, Fairfield plans to acquire<br />
certain subsidiaries from U.K.-based Acorn<br />
<strong>Oil</strong> & <strong>Gas</strong> Ltd. that hold interests in the<br />
ab<strong>and</strong>oned Maureen <strong>and</strong> Crawford fields in<br />
the central <strong>and</strong> northern North Sea. The<br />
Maureen partnership is with Apache Corp.<br />
(NYSE: APA), which is operator.<br />
Fairfield Energy is led by executive<br />
chairman Chris Wright, who was senior vice<br />
president for global exploration <strong>and</strong> technology<br />
at Unocal Corp. Mark McAllister is<br />
Fairfield chief executive. He was managing<br />
director of Acorn <strong>Oil</strong> & <strong>Gas</strong>, which he<br />
formed in 2001 to pursue North Sea exploration<br />
<strong>and</strong> development opportunities.<br />
Triangle Petroleum Corp., Calgary,<br />
(OTCBB: TPLM) has created Triangle<br />
USA Petroleum Corp., a wholly owned subsidiary<br />
that will pursue projects in the United<br />
States.<br />
The Northern Ute Indian Tribe has launched<br />
Fort Duchesne, Utah-based Ute Energy, with<br />
John Jurrius as chief executive <strong>and</strong> Robert<br />
Ogle as chief financial officer. The company<br />
plans to develop 236,000 acres on the North<br />
Ute reservation in Utah’s Uinta Basin.<br />
28 • A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong>
E&P A&D News<br />
“Ute Energy is the beginning of a great<br />
movement for the Northern Utes,” says<br />
Maxine Natchees, chairman of the tribal<br />
business committee. “This company is part<br />
of a progressive financial plan, set in place<br />
four years ago, that led us to becoming<br />
active partners for the first time in the development<br />
of our l<strong>and</strong> <strong>and</strong> resources. This<br />
translates to great things for our tribe, surrounding<br />
communities <strong>and</strong> the state.”<br />
The Northern Utes have aligned themselves<br />
with business partners that include<br />
Questar <strong>Gas</strong> Co., Fidelity <strong>Investor</strong>s Management<br />
LLC, Bill Barrett Corp. <strong>and</strong><br />
Berry Petroleum Co.<br />
During the next year, Ute Energy will<br />
participate in some $60 million of mineral<br />
development with wells between the Naval<br />
<strong>Oil</strong> Shale Reserve <strong>and</strong> Brundage areas.<br />
A&D Advisors<br />
Canaccord Capital Inc., Vancouver,<br />
(Toronto: CCI) has acquired Calgary-based<br />
advisory firm Enermarket Solutions Ltd.,<br />
which will operate as part of Canaccord’s<br />
global capital markets group as Canaccord<br />
Enermarket.<br />
Rick Grafton, global co-head of energy<br />
for Canaccord, says, “This significant addition<br />
to our outst<strong>and</strong>ing international energy<br />
team’s capabilities <strong>and</strong> expertise will provide<br />
our clients with a comprehensive view<br />
of the marketplace <strong>and</strong> we are proud to welcome<br />
Enermarket to our global team.”<br />
Martin Peters, president of Enermarket,<br />
says, “Canaccord has one of the strongest<br />
platforms for energy offerings in North<br />
America <strong>and</strong> Europe, <strong>and</strong> joining forces significantly<br />
enhances Enermarket’s ability to<br />
offer innovative <strong>and</strong> superior client service.”<br />
Anthony Motto has formed Energy Listings<br />
LLC, the operator of EnergyListings.com,<br />
a new web site for the exchange of<br />
upstream assets, ranging from prospects to<br />
royalty interests to producing properties.<br />
Motto was previously with property-marketer<br />
PLS Inc. as director of marketing, <strong>and</strong><br />
with <strong>Oil</strong> & <strong>Gas</strong> Journal Exchange in the<br />
auction division. He can be reached at 281-<br />
467-8818.<br />
Amarillo, Texas-based EnergyNet.com<br />
Inc. has exp<strong>and</strong>ed its auctions into Canada,<br />
with the first Canadian auction taking place<br />
in November. Operations for EnergyNet<br />
Canada will be based in Calgary.<br />
EnergyNet also reports it has exceeded<br />
$200 million in property sales since it began<br />
auctioning properties online in February<br />
2000.<br />
The online auction-house had property<br />
sales of $55 million in 2004 <strong>and</strong> has sold<br />
$89 million through October <strong>2005</strong>. The<br />
company has grown more than 100% annually<br />
since 2000, while selling some 15,600<br />
properties since inception.<br />
Jefferies International Ltd., London, a<br />
subsidiary of U.S.-based Jefferies Group<br />
Inc., New York, (NYSE: JEF) has named<br />
Richard Kent a managing director, Neil<br />
Schroeder <strong>and</strong> Paul Wheeler as directors,<br />
<strong>and</strong> Alex Grant as a vice president to exp<strong>and</strong><br />
its R<strong>and</strong>all & Dewey oil <strong>and</strong> gas group in<br />
London. All four previously worked for<br />
ABN Amro in London.<br />
Houston-based asset-brokers PLS Inc. <strong>and</strong><br />
Burks <strong>Oil</strong> & <strong>Gas</strong> Properties Inc. have<br />
signed a partnership <strong>and</strong> joint-marketing<br />
agreement.<br />
Burks will move to PLS’ corporate<br />
offices, downtown Houston, <strong>and</strong> each will<br />
market the others’ services <strong>and</strong> work together<br />
on some assignments.<br />
Burks markets Gulf Coast properties <strong>and</strong><br />
has h<strong>and</strong>led some $2 billion in asset sales in<br />
the past 18 years, while PLS provides A&D<br />
information <strong>and</strong> asset-marketing.<br />
Both companies will continue to operate<br />
independently.<br />
Capital Providers<br />
Dallas-based investment bank Challenger<br />
Capital Group Ltd., along with Credit<br />
Suisse First Boston <strong>and</strong> UBS, will act as<br />
financial advisors to Alaska in its participation<br />
in construction of a gas pipeline from<br />
the North Slope to existing pipelines in<br />
Alberta for distribution into the U.S., or to<br />
Valdez, Alaska, for liquefaction <strong>and</strong> shipment<br />
to the western U.S.<br />
The cost of the project is estimated to be<br />
between $13- <strong>and</strong> $20 billion. It could bring<br />
to market 30 trillion cubic feet of proved<br />
reserves <strong>and</strong> 100 trillion of probable.<br />
The role is Challenger’s first energy deal<br />
as a new firm, although several of its senior<br />
members have completed 75 energy transactions<br />
with $87 billion in total value. The firm<br />
was founded in early 2004 to offer financial<br />
services for middle-market companies.<br />
Employees of energy investment-banker<br />
Howard Weil Inc. plan to purchase the firm<br />
from Citigroup in a deal that is expected to<br />
close this month. The firm will continue to<br />
be based in New Orleans with an office in<br />
Houston.<br />
While some employees have returned to<br />
the New Orleans office post-Hurricane Katrina,<br />
most displaced employees expect to<br />
return to New Orleans by Christmas <strong>2005</strong>.<br />
Separately, the firm reports that its 34th<br />
annual energy conference will be held in<br />
New Orleans on March 19-23, 2006. The<br />
<strong>2005</strong> conference included 477 buy-side<br />
investors, 403 management representatives<br />
from 130 companies <strong>and</strong> 60 corporate<br />
guests.<br />
Michael Lou <strong>and</strong> Victor Barcot have joined<br />
Cliff Adams <strong>and</strong> Bob Brooks in the global<br />
oil <strong>and</strong> gas group of Sydney-based Macquarie<br />
Securities Inc. They will be based in<br />
the Houston office.<br />
Lou <strong>and</strong> Barcot were vice presidents with<br />
First Albany Capital Inc.’s energy investment-banking<br />
group.<br />
Macquarie’s U.S. energy team has raised<br />
more than $30 billion in capital <strong>and</strong> transacted<br />
more than $50 billion in advisory deals.<br />
Tortoise North American Energy Corp.,<br />
Overl<strong>and</strong> Park, Kan., (NYSE: TYN) has<br />
been approved for an initial public offering<br />
of 4.6 million shares at $25 each for expected<br />
proceeds of $115 million. Underwriters<br />
have a 690,000-share overallotment<br />
allowance.<br />
RBC Capital Markets was co-lead<br />
manager <strong>and</strong> bookrunner, <strong>and</strong> Stifel, Nicolaus<br />
& Co. Inc. was co-lead manager.<br />
Tortoise North America is a newly<br />
organized, non-diversified, closed-end management<br />
investment company that invests in<br />
publicly traded Canadian royalty trusts,<br />
income trusts <strong>and</strong> U.S. master limited partnerships.<br />
A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong> • 29
E&P A&D News<br />
Upstream Analysts<br />
Paul Ferretti has joined Ferris Baker Watts<br />
as an equity oil analyst. He has initiated coverage<br />
on GMX Resources (Nasdaq:<br />
GMXR), American <strong>Oil</strong> & <strong>Gas</strong> (Amex:<br />
AEZ), <strong>Gas</strong>co Energy Inc. (Amex: GSX)<br />
<strong>and</strong> Warren Resources Inc. (Nasdaq:<br />
WRES) <strong>and</strong> will be adding up to five more<br />
stocks by year-end.<br />
Previously, he was a managing director<br />
with Morgan Joseph & Co.’s equityresearch<br />
department; a senior energy analyst<br />
with Ladenburg Thalmann & Co.; <strong>and</strong> held<br />
similar positions with Dresdner Kleinwort<br />
Wasserstein, ABN Amro <strong>and</strong> Dillon Read<br />
& Co.<br />
Ferretti will be based in Baltimore <strong>and</strong><br />
can be reached at 410-659-0376.<br />
Jay Saunders has joined privately held New<br />
York-based asset manager Jennison Associates<br />
as an energy analyst. Saunders was an<br />
oil analyst with Deutsche Bank.<br />
E&P—People<br />
Anadarko Petroleum Corp., Houston,<br />
(NYSE: APC) reports that Robert J. Allison<br />
will resign as chairman at year-end <strong>and</strong><br />
assume the chairman emeritus position for<br />
his 32 years with the company. Jim Hackett,<br />
president <strong>and</strong> chief executive, will become<br />
chairman.<br />
Aztec <strong>Oil</strong> & <strong>Gas</strong> Inc., Houston, (OTCBB:<br />
AZGS) has named Kirk N. Blackim <strong>and</strong><br />
Mark Vance to the board. Blackim is president<br />
of Aztec; Vance is chief financial officer<br />
of G1SG.<br />
Canadian Superior Energy Inc., Calgary,<br />
(Toronto: SNG; Amex: SNG) has appointed<br />
Mike Coolen <strong>and</strong> Kory Idl<strong>and</strong> to its board.<br />
Coolen is Canadian Superior vice president,<br />
East Coast operations; Idl<strong>and</strong> is<br />
founder, owner, president <strong>and</strong> chief executive<br />
of Kidd Construction Ltd.<br />
Canary Resources Inc., Stilwell, Kan.,<br />
(Pink Sheets: CYRR) has named Stephen<br />
Allee senior vice president, operations;<br />
James Steinheider senior vice president,<br />
finance; <strong>and</strong> Rex Ashlock senior vice president,<br />
drilling <strong>and</strong> exploration. Each were<br />
with Osborn Energy LLC.<br />
Cardinal Resources Plc, London, (AIM:<br />
CDL) has named Misbah Al Droubi to its<br />
board. Al Droubi is chief executive of Hares<br />
Group Ltd.<br />
Charles R. Williamson, executive vice president<br />
of Chevron Corp., San Ramon, Calif.,<br />
(NYSE: CVX) <strong>and</strong> former chairman <strong>and</strong><br />
chief executive of Unocal Corp., has retired.<br />
Williamson was with Unocal since 1977.<br />
Cirrus Energy Corp., Calgary, (Toronto<br />
Venture: CYR) has appointed Wim Korndorffer<br />
a director. Korndorffer was a director<br />
of Aventura Energy Corp.<br />
Deer Creek Energy Ltd., Calgary, (Toronto:<br />
DCE) has exp<strong>and</strong>ed its board <strong>and</strong> added<br />
Jean-Luc Guiziou as chairman <strong>and</strong> Verne<br />
Johnson as lead director.<br />
Robert A. Mosbacher has resigned from the<br />
Devon Energy Corp., Oklahoma City,<br />
(NYSE: DVN) board upon his appointment<br />
as president <strong>and</strong> chief executive of the<br />
Overseas Private Investment Corp.<br />
El Paso Corp., Houston, (NYSE: EP) has<br />
named John R. Sult senior vice president<br />
<strong>and</strong> chief accounting officer. Sult was vice<br />
president <strong>and</strong> controller of Halliburton<br />
Energy Services.<br />
Gwyn Morgan, founding president <strong>and</strong> chief<br />
executive of EnCana Corp., Calgary,<br />
(Toronto, NYSE: ECA) plans to step down<br />
at year-end. Morgan will remain as executive<br />
vice chairman for 2006, mainly as an advisor<br />
to the new CEO, R<strong>and</strong>all K. Eresman.<br />
Eresman will succeed Morgan as president<br />
<strong>and</strong> CEO Jan. 1. He is currently chief<br />
operating officer.<br />
Morgan joined EnCana’s predecessor<br />
Alberta Energy Co. Ltd. in October 1975.<br />
In 2002, he led the merger of Alberta Energy<br />
<strong>and</strong> PanCanadian Energy to create<br />
EnCana.<br />
Encore Acquisition Co., Fort Worth,<br />
Texas, (NYSE: EAC) has named Jon S.<br />
Brumley chief executive, in addition to his<br />
current roles of president <strong>and</strong> director.<br />
I. Jon Brumley, chairman, said, “This is<br />
an opportune time to step down as CEO. For<br />
the past three years, all of the officers have<br />
reported to Jonny <strong>and</strong> look to him for leadership.<br />
This is an obvious <strong>and</strong> positive step<br />
in the evolution of a great company.”<br />
In another announcements, Ben Nivens<br />
has been named senior vice president, chief<br />
financial officer, treasurer <strong>and</strong> secretary.<br />
Nivens has been vice president of corporate<br />
strategy <strong>and</strong> treasurer since June <strong>2005</strong>.<br />
Robert C. Reeves has been named senior<br />
vice president, controller <strong>and</strong> chief accounting<br />
officer. Reeves was vice president <strong>and</strong><br />
controller.<br />
Roy W. Jageman has resigned as executive<br />
vice president, CFO <strong>and</strong> secretary to<br />
pursue other interests.<br />
Forest <strong>Oil</strong> Corp., Denver, (NYSE: FST)<br />
has named Glen J. Mizenko vice president,<br />
business development. Mizenko was director,<br />
business development.<br />
Paul J. Dusha has been named vice president,<br />
human resources. Dusha was director,<br />
human resources. Michael N. Kennedy has<br />
been named managing director, capital markets,<br />
<strong>and</strong> treasurer. Kennedy was director,<br />
investor relations.<br />
Patrick J. Redmond has been named<br />
director, investor relations. Redmond was<br />
manager, insurance <strong>and</strong> financial analysis.<br />
Geocan Energy Inc., Calgary, (Toronto:<br />
GCA) reports that Christopher Bloomer has<br />
resigned as a director. Thomas M. Walter<br />
has been appointed to the board. Walter has<br />
practiced law in Okotoks, Alberta.<br />
Indocan Resources Inc., Bangkok, Thail<strong>and</strong>,<br />
(OTCBB: IDCN) has appointed Sutida<br />
Suwunnavid to its board. Suwunnavid is<br />
with Knightsbridge Group.<br />
Miller Petroleum Inc., Huntsville, Tenn.,<br />
(OTCBB: MILL) has named John S. Miller<br />
drilling, completion <strong>and</strong> production manager.<br />
Miller was with CNX <strong>Gas</strong> where he<br />
designed stimulation techniques <strong>and</strong> supervised<br />
drilling <strong>and</strong> completion operations.<br />
Mystique Energy Inc., Calgary, (Toronto<br />
Venture: MYS) has named Rick Webb senior<br />
geologist. Webb has some 20 years of<br />
exploration experience in western Canada.<br />
Noble Energy Inc., Houston, (NYSE:<br />
30 • A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong>
E&P A&D News<br />
NBL) has named Frederick B. Bruning chief<br />
accounting officer. Bruning was vice president<br />
of business operations for Fidelity<br />
National Financial.<br />
William T. Van Kleef has been named to<br />
the Noble board. Van Kleef was executive<br />
vice president <strong>and</strong> chief operating officer of<br />
Tesoro Corp.<br />
Nord <strong>Oil</strong> International Inc., Montreal,<br />
(Pink Sheets: NDOL) has named Igor Nikolaevitch<br />
Bratchikov executive vice president,<br />
mergers <strong>and</strong> acquisitions. Bratchikov<br />
has been working with Nord as a consultant.<br />
Pioneer Natural Resources Co., Dallas,<br />
(NYSE: PXD) has named A.R. (Ray)<br />
Alameddine executive vice president,<br />
worldwide negotiations; William F. (Bill)<br />
Hannes executive vice president, worldwide<br />
business development; Jay P. Still executive<br />
vice president, western division; <strong>and</strong> Denny<br />
B. Bullard vice president, engineering <strong>and</strong><br />
development.<br />
Alameddine was executive vice president<br />
of worldwide business development;<br />
Hannes was vice president, engineering <strong>and</strong><br />
development; Still was head of the western<br />
division; <strong>and</strong> Bullard was vice president,<br />
Gulf Coast operations.<br />
Pogo Producing Co., Houston, (NYSE:<br />
PPP) has appointed Charles G. Groat to its<br />
board. Groat is director of the Center for<br />
International Energy <strong>and</strong> Environmental<br />
Policy <strong>and</strong> director of the energy <strong>and</strong> mineral<br />
resources graduate program, University of<br />
Texas, Austin.<br />
Premium Petroleum Inc., Calgary, (Pink<br />
Sheets: PPTL) has appointed Paul J. Bennett<br />
vice president, exploration. Bennett was<br />
with ExxonMobil Canada.<br />
PYR Energy Corp., Denver, (Amex: PYR)<br />
has appointed David B. Kilpatrick chairman.<br />
Kilpatrick is president of Kilpatrick Energy<br />
Group.<br />
Sky Petroleum Inc., Austin, Texas,<br />
(OTCBB: SKPI) has appointed Brent D.<br />
Kinney chief executive officer. Kinney is an<br />
international petroleum lawyer based in<br />
Dubai, United Arab Emirates.<br />
Brent D. Kinney, Ian R. Baron, Peter J.<br />
Cockcroft <strong>and</strong> Michael D. Noonan have<br />
been named to the Sky board.<br />
Kinney is chief executive officer of Sky;<br />
Baron is a founding partner in ESG Dubai;<br />
Cockcroft is a director with Baraka Petroleum<br />
Ltd. <strong>and</strong> Australian <strong>Oil</strong> Co.; <strong>and</strong><br />
Noonan is vice president, corporate, of Sky.<br />
Also, Sheikh Hamad Bin Jassim Bin Jabr<br />
al-Thani, a member of the ruling family of<br />
Qatar, has become a major shareholder,<br />
holding approximately 36% of issued<br />
shares.<br />
Hamad has appointed Karim Jobanputra<br />
to Sky’s board. Jobanputra is an entrepreneur<br />
<strong>and</strong> owns several companies that do<br />
business in the Middle East <strong>and</strong> Europe.<br />
Sonoran Energy Inc., Amman, Jordan,<br />
(OTCBB: SNRN) has appointed Kamel<br />
Khalidi exploration <strong>and</strong> new ventures manager<br />
for the Middle East, North Africa <strong>and</strong><br />
Caspian. Khalidi has worked with Saudi<br />
Aramco.<br />
Strata <strong>Oil</strong> & <strong>Gas</strong> Inc., Calgary, (OTCBB:<br />
SOIGF) has named Pratt Barndollar to its<br />
board. Barndollar was chief geophysicist<br />
<strong>and</strong> exploration portfolio manager for<br />
Devon Energy Corp.<br />
Terax Energy Inc., Austin, Texas,<br />
(OTCBB: TERX) reports that Bill Rhea has<br />
been terminated as chief executive for cause<br />
<strong>and</strong> removed as a director. Lawrence J. Finn<br />
has been named chief financial officer <strong>and</strong><br />
interim chief executive. Finn was vice president<br />
of finance <strong>and</strong> CFO of Petrol <strong>Oil</strong> <strong>and</strong><br />
<strong>Gas</strong>.<br />
Bill Chester <strong>and</strong> Rex White have<br />
resigned as Terax directors.<br />
Mike Governale has been named vice<br />
president of operations; Mickey Field field<br />
engineer, <strong>and</strong> Andrew Hromyk <strong>and</strong> John<br />
Legg directors.<br />
Governale was production superintendent<br />
of Swift Energy Co.; Field was a contract<br />
drilling engineer for XTO Energy;<br />
Hromyk is president of Century Capital<br />
Management Ltd.; <strong>and</strong> Legg is a private<br />
attorney.<br />
Tri-Valley Corp., Bakersfield, Calif.,<br />
(Amex: TIV) has named Art Evans chief<br />
financial officer, succeeding Tom Cunningham,<br />
who has been named vice president<br />
<strong>and</strong> chief administrative officer. Evans has<br />
accounting <strong>and</strong> financial management experience<br />
in several industries.<br />
Triangle Petroleum Corp., Calgary,<br />
(OTCBB: TPLM) has named Aly Musani<br />
chief financial officer. Musani was with an<br />
oilfield-services firm.<br />
Tusk Energy Corp., Calgary, (Toronto:<br />
TSK) has named Jeffrey W.C. Arsenych a<br />
director. Arsenych has been a director of<br />
TKE Energy Trust (Toronto: TKE.UN)<br />
since November 2004.<br />
Dallas-based Zion <strong>Oil</strong> & <strong>Gas</strong> Inc. has<br />
named Richard J. Rinberg president <strong>and</strong><br />
chief operating officer; David Patir chief<br />
financial officer; <strong>and</strong> Forrest A. Garb <strong>and</strong><br />
Yehezkel (Charlie) Druckman directors.<br />
Rinberg has been a private investor <strong>and</strong><br />
manager of family funds since 1996. Patir<br />
was a principal consultant with BRI Consulting<br />
Group. Garb is founder of Forrest<br />
A. Garb & Associates Inc. Druckman was<br />
petroleum commissioner of Israel.<br />
E&P—Other<br />
Fort Worth, Texas-based Stroud Energy<br />
Inc. has filed for an IPO of 10.8 million<br />
shares at $16 each for expected proceeds of<br />
$173 million. The proposed symbol on the<br />
Nasdaq National Market is STRO. All proceeds<br />
will go to the selling stockholders.<br />
Stroud is sole underwriter of the transaction.<br />
Stroud is an independent with operations<br />
in the Central Gulf Coast (Austin Chalk), the<br />
Fort Worth Basin (Barnett Shale) <strong>and</strong> East<br />
Texas. Its management team <strong>and</strong> technical<br />
staff have experience in developing unconventional<br />
gas reserves <strong>and</strong> horizontal<br />
drilling.<br />
From Jan. 1, 2003, through June 30,<br />
<strong>2005</strong>, its predecessor drilled <strong>and</strong> completed<br />
28 wells. Its net production increased from<br />
an average of 12.5 million cubic feet equivalent<br />
per day in 2002 to an average of 23.8<br />
million per day in 2004.<br />
S<strong>and</strong>y, Utah-based Colorado Utah Natural<br />
<strong>Gas</strong> Inc. has filed for an IPO of 3 million<br />
shares at $10 each for expected proceeds of<br />
$30 million. The proposed symbol on the<br />
Nasdaq SmallCap Market is CUNG.<br />
Colorado Utah Natural <strong>Gas</strong> is the sole<br />
underwriter.<br />
A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong> • 31
E&P A&D News<br />
Most of the net proceeds will be used for<br />
development drilling on the company’s oil<br />
<strong>and</strong> gas leases in Utah. The company plans<br />
to drill 100 development wells in Gr<strong>and</strong><br />
County, Utah, for an estimated cost of $7.5<br />
million <strong>and</strong> four gas wells in the Brennan<br />
Bottoms Field in Uinta County, Utah, for $6<br />
million.<br />
In addition, Colorado Utah will build a<br />
gas-gathering system in Gr<strong>and</strong> County for<br />
about $500,000. Remaining proceeds will be<br />
used for general <strong>and</strong> administrative expenses,<br />
the acquisition of additional oil <strong>and</strong> gas<br />
leases <strong>and</strong> working capital.<br />
Colorado Utah is a development-stage oil<br />
<strong>and</strong> gas exploration company. Since August<br />
2004 it has drilled three wells to the Morrison<br />
formation; two wells have been completed<br />
<strong>and</strong> are awaiting pipeline connection,<br />
while the third is awaiting completion. The<br />
company commenced drilling its fourth well<br />
in October.<br />
Southwestern Energy Co., Houston,<br />
(NYSE: SWN) <strong>and</strong> Denbury Resources<br />
Inc., Dallas, (NYSE: DNR) plan two-forone<br />
stock splits.<br />
Quest Resource Corp., Oklahoma City,<br />
(OTCBB: QRES) reports a reverse stock<br />
split of 2.5 to 1. Separately, its trading symbol<br />
on the OTC Bulletin Board has been<br />
changed from QRCP to QRES.<br />
Shell Exploration & Production Co.,<br />
Houston, reports that Shell Offshore Inc. is<br />
the high bidder on all 33 blocks on which it<br />
bid in the Alaska Peninsula lease sale in<br />
Anchorage in October. Shell exposed nearly<br />
$1 million.<br />
“We are pleased with the outcome of<br />
[the] sale, which allows us to build a position<br />
in Bristol Bay,” says Annell Bay,<br />
regional vice president for exploration in the<br />
Americas.<br />
Shell acquired 84 leases in the Beaufort<br />
Sea during the March <strong>2005</strong> Outer Continental<br />
Shelf Lease Sale 195. Building an Alaska<br />
portfolio is part of the company’s increased<br />
focus on more upstream, the company<br />
reports.<br />
“Alaska holds the potential to yield the<br />
large hydrocarbon discoveries needed to<br />
become a new core area for Shell, to build<br />
Shell’s reserves <strong>and</strong> to help provide future<br />
energy resources for America’s growing<br />
dem<strong>and</strong>,” says Ch<strong>and</strong>ler Wilhelm, Alaska<br />
exploration manager.<br />
Calgary-based Ziff Energy Group<br />
announced the winners of its 6th annual<br />
Canadian upstream achievement awards.<br />
Apache Canada Ltd., BP Canada<br />
Energy Co. <strong>and</strong> Provident Energy Trust<br />
fared best in the operating-cost category. In<br />
the finding <strong>and</strong> development category, the<br />
winners were Anadarko Canada Corp.,<br />
Burlington Resources Canada Ltd. <strong>and</strong><br />
Talisman Energy Inc.<br />
The awards are based on analysis of two<br />
Ziff major industry studies: one on finding<br />
<strong>and</strong> development costs <strong>and</strong> the other on<br />
reducing field-operating costs.<br />
Shell Exploration & Production plans to<br />
return to permanent offices in New Orleans.<br />
“We expect to have a substantial number<br />
of currently displaced New Orleans Shell<br />
employees back home <strong>and</strong> back at work in<br />
the city we cherish early next year <strong>and</strong> expect<br />
almost all to return in the first-quarter/second-quarter<br />
time frame,” says Marvin Odum,<br />
executive vice president, EP Americas.<br />
“The success of the area’s rebuilding<br />
effort is critically important to the long-term<br />
viability of the Gulf Coast, <strong>and</strong> will allow us<br />
to continue to be an important part of the<br />
business <strong>and</strong> social fabric of this community,”<br />
Odum says.<br />
Shell had approximately 1,474 E&P staff<br />
in the New Orleans area.<br />
Rice University’s Amy Myers Jaffe, the<br />
Wallace S. Wilson Fellow in energy studies<br />
at the James A. Baker III Institute for Public<br />
Policy <strong>and</strong> associate director of the Rice<br />
energy program, is on Esquire magazine’s<br />
<strong>2005</strong> “best <strong>and</strong> brightest” list, which appears<br />
in the <strong>December</strong> issue.<br />
Jaffe is one of 12 honorees in the society<br />
category. Esquire’s write-up about Jaffe<br />
includes her views on seven ways to fix the<br />
oil crisis.<br />
Jaffe, a Princeton University graduate in<br />
Arabic studies, leads the Baker Institute energy<br />
forum, a program that promotes discussion<br />
<strong>and</strong> research on the energy-related challenges<br />
facing society in the 21st century. Her<br />
research focuses on oil geopolitics, strategic<br />
energy policy <strong>and</strong> energy economics.<br />
Calvalley Petroleum Inc., Calgary, (Toronto<br />
Venture: CVI) has been approved for<br />
trading on the Toronto Stock Exchange as<br />
CVI.<br />
Calgary-based Goldstrike Inc. (OTCBB:<br />
GDSK) has completed a share exchange<br />
with Gran Tierra Energy Inc. <strong>and</strong> will<br />
now trade on the OTC Bulletin Board as<br />
GTRE.<br />
Titan Exploration Ltd., Calgary, will now<br />
trade on the Toronto Stock Exchange as<br />
TTN.<br />
Former U.S. Secretary of Energy Spencer<br />
Abraham <strong>and</strong> former top aides have formed<br />
The Abraham Group LLC, an international<br />
consulting firm based in Washington.<br />
It will provide advice <strong>and</strong> h<strong>and</strong>s-on assistance<br />
to clients seeking opportunities or<br />
solutions in global energy markets.<br />
The firm’s other principals are Joseph<br />
McMonigle, former chief of staff at the U.S.<br />
Department of Energy <strong>and</strong> vice chairman of<br />
the International Energy Agency Board of<br />
Governors; <strong>and</strong> Majida Mourad, former senior<br />
advisor at the U.S. Department of Energy<br />
working on international affairs.<br />
Prior to becoming secretary of energy,<br />
Abraham served six years in the U.S. Senate<br />
<strong>and</strong> was deputy chief of staff to Vice President<br />
Dan Quayle.<br />
In Memoriam<br />
Range Resources Corp., Fort Worth, Texas,<br />
(NYSE: RRC) reports that Robert E. Aikman,<br />
a member of the board since 1990, has<br />
passed away. Aikman had more than 50 years<br />
of experience in the oil <strong>and</strong> gas industry.<br />
—Taryn Maxwell<br />
32 • A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong>
E&P A&D News<br />
A&D Networking Opportunities<br />
Event Date City Venue More Info<br />
ADAM-Dallas/Fort Worth First Thursday/Month Dallas Dallas Petroleum Club AdamEnergyForum.org<br />
TIPRO-IPAA Speaker Series Second Wedn/Month Houston Houston Petroleum Club tipro.com<br />
Houston Producers’ Forum Third Tuesday/Month Houston Houston Petroleum Club HoustonProducersForum.com<br />
Dallas Energy Finance Grp Third Tuesday/Month Dallas Dallas Petroleum Club DallasEnergyFinance.org<br />
Houston Energy Finance Grp Third Wedn/Month Houston Houston Center Club NA<br />
ADAM-East Texas <strong>December</strong> <strong>2005</strong> Tyler, Texas Hollytree CC adamenergyforum.org<br />
SPE-GCS Bus. Dvlpmt Group Jan. 18, 2006 Houston Four Seasons spegcs.org<br />
NAPE <strong>2005</strong> Feb. 2-3, 2006 Houston GR Brown CC napeonline.com<br />
OGIS Small-Caps Feb. 7-9, 2006 Hollywood, Fla. Westin Diplomat ipaa.org<br />
ADAM-East Texas February 2006 Tyler, Texas Hollytree CC adamenergyforum.org<br />
HAPL Monthly Luncheon February 2006 Houston Hyatt hapl.org<br />
IPAA Wildcatters’ Ball March 3, 2006 Houston Hilton Americas ipaa.org<br />
Cosco Private Capital March 7, 2006 Calgary Westin coscocap.com<br />
Houston <strong>Oil</strong> Tennis Tournmt March 2006 Houston TBA hottournament.com<br />
NTEC Energy Symposium March 2006 Dallas TBA ntenergycouncil.org<br />
SPE-GCS Bus. Dvlpmt Group March 2006 Houston Four Seasons spegcs.org<br />
Waterous World <strong>Oil</strong> & <strong>Gas</strong> March 2006 TBA TBA waterous.com<br />
HAPL Monthly Luncheon March 2006 Houston Hyatt Downtown hapl.org<br />
IPAA Wildcatters’ Golf Open March 30, 2006 Houston Cypresswood GC ipaa.org<br />
OGIS-New York April 10-12, 2006 New York Sheraton NY ipaa.org<br />
ADAM-East Texas April 2006 Tyler, Texas Hollytree CC adamenergyforum.org<br />
Howard Weil Energy Conf. April 2006 New Orleans Sheraton (Canal) HowardWeil.com<br />
Ziff North American <strong>Gas</strong> April 2006 Houston Four Seasons ZiffEnergyconferences.com<br />
Executive <strong>Oil</strong> Conference April 2006 Midl<strong>and</strong> Midl<strong>and</strong> Center petroleumstrategies.com<br />
Gulf Coast Energy Marketplace April 2006 New Orleans Fairmont Hotel gcem.net<br />
ADAM Golf Tournament April 2006 Plano, Texas Gleneagles CC adamenergyforum.org<br />
LIOGA Annual Meeting April 2006 Point Clear, Ala. The Gr<strong>and</strong> Hotel Lioga.com<br />
HAPL Golf Tournament April 2006 Houston Meadowbrook Farms hapl.org<br />
HAPL Monthly Luncheon April 2006 Houston Hyatt hapl.org<br />
Dallas Geological Society Golf April 2006 Grapevine, Texas Cowboys GC dgs.org<br />
R<strong>and</strong>all & Dewey A&D Summit April 2006 Houston The Houstonian RanDew.com<br />
SPE-GCS Bus. Dvlpmt Group May 2006 Houston Four Seasons spegcs.org<br />
HAPL Monthly Luncheon May 2006 Houston Hyatt hapl.org<br />
ADAM-East Texas June 2006 Tyler, Texas Hollytree CC adamenergyforum.org<br />
Cosco Private Capital June 7, 2006 Houston Four Seasons coscocap.com<br />
CAPP-OGIS June 2006 Calgary TBA capp.ca<br />
IPAA Midyear June 12-14, 2006 Naples, Fla. The Ritz Carlton ipaa.org<br />
IPAMS Annual June 2006 TBA TBA ipams.org<br />
AAPL Annual Meeting June 2006 TBA TBA l<strong>and</strong>man.org<br />
OGIS-London July 2006 London The Berkeley Hotel ipaa.org<br />
Louisiana Energy Golf Classic July 2006 Broussard, La. Le Triomphe GC Lioga.com<br />
Gulf Coast Prospect Expo July 2006 Lafayette Cajundome Lioga.com<br />
ADAM-East Texas August 2006 Tyler, Texas TBA adamenergyforum.org<br />
The <strong>Oil</strong> & <strong>Gas</strong> Conference August 2006 Denver TBA The<strong>Oil</strong>And<strong>Gas</strong>Conference.com<br />
COGA August 2006 Denver Colorado Conv. Center coga.org<br />
KIOGA Annual Meeting August 2006 Kansas TBA kioga.org<br />
Summer NAPE August 2006 Houston George R. Brown CC napeonline.com<br />
A&D Strategies/Opportunities August 2006 Dallas The Fairmont hartenergyconferences.com<br />
SPE-GCS Bus. Dvlpmt Group September 2006 Houston Four Seasons spegcs.org<br />
KidLinks Golf Tournament September 2006 Las Colinas, Texas TPC-Las Colinas KidLinksDFW.org<br />
John S. Herold Pacesetters September 2006 Old Greenwich, CT Hyatt Regency Herold.com<br />
ADAM-East Texas October 2006 Tyler, Texas Hollytree CC adamenergyforum.org<br />
Small Steps Golf Tournament October 2006 Houston Champions GC ssnc.org<br />
HPF Golf Tournament October 2006 Houston Cypresswood GC houstonproducersforum.com<br />
OGIS-West October 2006 San Francisco The Palace Hotel ipaa.org<br />
C.C.O.T.T.-SPE Tennis October 2006 Corpus Christi HEB Tennis Center ccott.org<br />
East TX KidLinks Golf Classic October 2006 Tyler, Texas Hollytree CC kidlinksdfw.org<br />
Have an upcoming event that presents A&D networking opportunities? List it here. There is no fee. E-mail details to ndarbonne@hartenergy.com.<br />
A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong> • 33
Service & Supply<br />
A&D News<br />
—Acquisitions<br />
—Divestitures<br />
—People<br />
S&S A&D—U.S.<br />
Cal Dive International Inc., Houston,<br />
(Nasdaq: CDIS) has completed the acquisition<br />
of the Gulf of Mexico diving assets of<br />
Stolt Offshore. The assets include seven<br />
diving-support vessels, a portable saturation<br />
diving system, various general diving equipment<br />
<strong>and</strong> Louisiana operating bases at the<br />
Port of Iberia <strong>and</strong> Port Fourchon.<br />
Additional purchases will be closed when<br />
those assets complete their present work<br />
campaigns in Trinidad waters. The total<br />
transaction value for all of the assets will be<br />
approximately $123 million.<br />
Hercules Offshore Inc., Houston, (Nasdaq:<br />
HERO) has completed the acquisition of a<br />
fleet of eight liftboats from Danos & Curole<br />
Marine Contractors LLC for $44 million.<br />
Three of the liftboats are in the U.S. Gulf<br />
of Mexico, four are in Nigeria, <strong>and</strong> one was<br />
damaged during Hurricane Katrina <strong>and</strong> is<br />
being evaluated.<br />
Houston-based driller Nabors Industries<br />
Ltd. (Amex: NBR) has purchased certain<br />
drilling assets from San Antonio-based<br />
Lewis Energy Group, a privately held,<br />
South Texas-focused E&P company that is<br />
the most active producer in Webb, LaSalle<br />
<strong>and</strong> Dimmitt counties.<br />
More details of the transaction were not<br />
disclosed. Parks Paton Hoepfl & Brown<br />
was exclusive financial advisor to Lewis.<br />
A Dallas-based technology investment<br />
group led by R. Douglas Cronk of Rampart<br />
Petroleum has purchased Grapevine,<br />
Texas-based Metrix Networks Inc., a threeyear-old<br />
oil-service company that provides<br />
remote monitoring services for rotating<br />
equipment, gas <strong>and</strong> liquid measurement,<br />
rod-pump control <strong>and</strong> tank-level status.<br />
Cronk was senior vice president, operations,<br />
for Irving, Texas-based Magnum<br />
Hunter Resources, which had owned Metrix<br />
<strong>and</strong> was purchased recently by Cimarex<br />
Energy Co. (NYSE: XEC).<br />
“As the operations manager for Magnum<br />
Hunter, I saw firsth<strong>and</strong> the improvement in<br />
field effectiveness <strong>and</strong> efficiencies that the<br />
Metrix monitoring-system technology<br />
brought to our organization,” Cronk says.<br />
Metrix uses satellite telemetry <strong>and</strong> proprietary<br />
software to offer monitoring in oil <strong>and</strong><br />
gas producing regions around the world.<br />
Smith International Inc., Houston,<br />
(NYSE: SII) has acquired privately held,<br />
Odessa, Texas-based Nunez <strong>Oil</strong> Field Pipe<br />
Ltd. for an undisclosed sum.<br />
The acquired operations rent <strong>and</strong> repair<br />
drill-pipe, tubing, drill-collars, heavy-weight<br />
drill-pipe, h<strong>and</strong>ling tools <strong>and</strong> blow-out preventers<br />
used in drilling <strong>and</strong> completing oil<br />
<strong>and</strong> gas wells.<br />
These operations will be integrated into<br />
the Smith Services business unit <strong>and</strong> will<br />
serve the Permian Basin <strong>and</strong> East Texas<br />
markets.<br />
Tesco Corp., Calgary, (Nasdaq: TESOF;<br />
Toronto: TEO) has purchased the assets of<br />
Lafayette, La.-based Tong Specialty <strong>and</strong><br />
Houston-based Cheyenne Services for a<br />
combined purchase price of US$50 million.<br />
Both companies provide tubular running<br />
<strong>and</strong> related services in the Gulf of Mexico<br />
<strong>and</strong> onshore Texas <strong>and</strong> Louisiana.<br />
The assets will be combined with Tesco’s<br />
existing tubular-services operations in the<br />
U.S. <strong>and</strong> provide immediate expansion of<br />
Tesco’s proprietary casing-running service.<br />
Parks Paton Hoepfl & Brown was advisor<br />
to Tesco in these transactions.<br />
Tri-Valley Corp., Bakersfield, Calif.,<br />
(Amex: TIV) plans to purchase <strong>and</strong> operate<br />
its own drilling <strong>and</strong> workover rig at an estimated<br />
cost of approximately $1 million for<br />
the next six months.<br />
“We are convinced in this day of equipment<br />
shortages, this purchase has significant<br />
upside implications for the company, its<br />
shareholders, drilling partners <strong>and</strong> royalty<br />
owners as we can very materially speed up<br />
our exploration <strong>and</strong> exploitation,” says F.<br />
Lynn Blystone, Tri-Valley president <strong>and</strong><br />
chief executive.<br />
The production rig component will be<br />
available to workover Tri-Valley’s existing<br />
wells this quarter while the component for<br />
drilling to 8,000 feet will be available firstquarter<br />
2006.<br />
Joseph R. K<strong>and</strong>le, president of Tri-Valley<br />
<strong>Oil</strong> & <strong>Gas</strong> Co., says, “We will still go to<br />
contractors to drill deeper wells but won’t<br />
have to twiddle our thumbs in between rig<br />
availability. This will greatly accelerate production<br />
cash flow <strong>and</strong> the achieving of our<br />
immediate goal of having at least one producing<br />
barrel of oil equivalent behind every<br />
Tri-Valley share as we certainly have the<br />
property inventory to do that.”<br />
S&S A&D—Canada<br />
Big Country Energy Services LP plans to<br />
acquire Patch Point Enterprises Ltd. from<br />
Producers <strong>Oil</strong>field Services Inc., Calgary,<br />
(Toronto: POS) for approximately C$7.5<br />
million.<br />
Producers plans to use the proceeds from<br />
this sale to fund future acquisitions <strong>and</strong> for<br />
general corporate purposes. The transaction<br />
is expected to close by the end of November.<br />
Mullen Group Income Fund, Aldersyde,<br />
Alberta, (Toronto: MTL.UN) has made an<br />
unsolicited takeover bid for Pe Ben <strong>Oil</strong>field<br />
Services Ltd. (Toronto: PBN) for C$12 in<br />
cash per share, representing a premium of<br />
approximately 28% based on the average<br />
trading price of Pe Ben shares.<br />
“The trust conversion process we undertook<br />
during the first half of <strong>2005</strong> caused us<br />
to closely examine all of our operating <strong>and</strong><br />
nonoperating assets, including our approxi-<br />
34 • A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong>
S&S A&D News<br />
mate 10% share position in Pe Ben. With the<br />
trust conversion now behind us we believe<br />
the time is right to add Pe Ben to the Mullen<br />
Group,” says Stephen H. Lockwood, president<br />
<strong>and</strong> co-chief executive officer of<br />
Mullen.<br />
Pe Ben provides contract transportation,<br />
h<strong>and</strong>ling <strong>and</strong> storage of oilfield tubular products<br />
<strong>and</strong> supplies; the hauling, stringing <strong>and</strong><br />
stockpiling of large diameter oil <strong>and</strong> gas<br />
transmission pipe: <strong>and</strong> the transportation of<br />
bulk petroleum products to the oil <strong>and</strong> gas<br />
industry.<br />
Raymond James Ltd. is advisor to<br />
Mullen.<br />
Producers <strong>Oil</strong>field Services Inc., Calgary,<br />
(Toronto: POS) plans to acquire privately<br />
held, Alberta-based R. Robinson Transport<br />
Ltd. <strong>and</strong> Supply-Rite Transport Ltd.<br />
for approximately C$20.5 million, including<br />
a combination of cash <strong>and</strong> Producers common<br />
shares.<br />
Both companies provide general oilfield<br />
trucking, warehousing <strong>and</strong> transportation of<br />
drilling mud in central <strong>and</strong> southern Alberta.<br />
Both transactions are expected to close<br />
by mid-January.<br />
S&S A&D—International<br />
Cal Dive International Inc., Houston,<br />
(Nasdaq: CDIS) has acquired Aberdeenbased<br />
Helix Energy Ltd. (Australia) for<br />
US$31 million.<br />
Helix provides reservoir <strong>and</strong> well-technology<br />
services <strong>and</strong> has offices in London,<br />
Kuala Lumpur (Malaysia) <strong>and</strong> Perth, Australia.<br />
Owen Kratz, Cal Dive chairman <strong>and</strong><br />
chief executive, says, “This acquisition will<br />
aid in our ability to establish our production<br />
contracting model in the North Sea <strong>and</strong> elsewhere.”<br />
S&S—People<br />
G. Stephen “Steve” Finley, senior vice president,<br />
finance <strong>and</strong> administration, <strong>and</strong> chief<br />
financial officer of Baker Hughes Inc.,<br />
Houston, (NYSE: BHI) will retire at the end<br />
of March.<br />
Dallas-based Dresser Inc. has named<br />
Stephen Berger to its board to replace Paul<br />
D. Barnett, who has resigned. Berger is<br />
chairman of Odyssey Investment Partners<br />
LLC <strong>and</strong> one of the principal investors in<br />
Dresser.<br />
Hercules Offshore Inc., Houston, (Nasdaq:<br />
HERO) has named James Noe vice president,<br />
general counsel, chief compliance officer<br />
<strong>and</strong> secretary; Leslie Taylor vice president,<br />
human resources; <strong>and</strong> Johnny Vincent<br />
vice president, corporate controller.<br />
Noe was corporate counsel for BJ Services<br />
Co.; Taylor was director, human<br />
resources, for Calpine Corp.; <strong>and</strong> Vincent<br />
was controller, state <strong>and</strong> local government<br />
sales, at Dell Inc.<br />
Offshore Logistics Inc., Houston, (NYSE:<br />
OLG) reports that Brian C. Voegele has<br />
resigned as senior vice president, chief<br />
financial officer, principal accounting officer,<br />
secretary <strong>and</strong> treasurer to pursue an<br />
opportunity as CFO of a larger oilfield-services<br />
company.<br />
Parker Drilling Co., Houston, (NYSE:<br />
PKD) has appointed George J. Donnelly <strong>and</strong><br />
Robert W. Goldman as independent directors.<br />
Donnelly is president <strong>and</strong> chief executive<br />
of the Houston Hispanic Chamber of<br />
Commerce, while Goldman retired as senior<br />
vice president, finance, <strong>and</strong> chief financial<br />
officer of Conoco.<br />
In addition, James W. Whalen, senior<br />
vice president <strong>and</strong> CFO, was appointed vice<br />
chairman.<br />
Patterson-UTI Energy Inc., Snyder,<br />
Texas, (Nasdaq: PTEN) reports that John E.<br />
Vollmer, senior vice president, corporate<br />
development, has also been named chief<br />
financial officer. Vollmer replaces Jonathan<br />
D. (Jody) Nelson, who has resigned for personal<br />
reasons.<br />
Precision Drilling Corp., Calgary, (Toronto:<br />
PDS) has appointed Gene Stahl chief<br />
operating officer <strong>and</strong> president; Doug Strong<br />
chief financial officer; <strong>and</strong> Darren Ruhr vice<br />
president, corporate services <strong>and</strong> corporate<br />
secretary.<br />
Stahl was vice president, rentals, for Precision;<br />
Strong was group controller for Precision’s<br />
Canadian drilling business; <strong>and</strong><br />
Ruhr was director, information technology,<br />
real estate <strong>and</strong> travel.<br />
Premium Drilling, Houston, has appointed<br />
Michael F. Pope vice president, marketing<br />
<strong>and</strong> contracts, <strong>and</strong> Anirudha “Sunil” Pangarkar<br />
vice president, operations.<br />
Pope was manager of marketing <strong>and</strong> contracts<br />
for Noble Drilling, while Pangarkar<br />
was general manager of Schlumberger<br />
Drilling Services.<br />
Producers <strong>Oil</strong>field Services Inc., Calgary,<br />
(Toronto: POS) reports that Robert J. Baldwin,<br />
chief financial officer <strong>and</strong> vice president,<br />
finance, will retire at year-end.<br />
Bob German has been named chief financial<br />
officer. German was vice president,<br />
finance, <strong>and</strong> chief accounting officer of Precision<br />
Drilling Corp.<br />
Carson Urlacher has been named chief<br />
accounting officer. Carson was director of<br />
accounting for Producers.<br />
Veritas DGC Inc., Houston, (NYSE,<br />
Toronto: VTS) has appointed Vincent M.<br />
Thielen vice president, business development,<br />
<strong>and</strong> Dennis S. Baldwin as vice president,<br />
corporate controller.<br />
Thielen was vice president, corporate<br />
controller, while Baldwin was chief financial<br />
officer for Veritas’ North<br />
America/South America region.<br />
S&S—Other<br />
Hercules Offshore Inc., Houston, (Nasdaq:<br />
HERO) debuted on the Nasdaq National<br />
Market through an IPO of 9.2 million shares<br />
at $20 each. The original price range for the<br />
shares was $18 to $20.<br />
Credit Suisse First Boston LLC <strong>and</strong><br />
Citigroup Global Markets Inc. were joint<br />
bookrunning managers. Simmons & Co.<br />
Int., Deutsche Bank Securities Inc. <strong>and</strong><br />
Howard Weil Inc. were co-managers.<br />
Hercules offered 6.3 million shares; the<br />
remaining shares were offered by selling<br />
stockholders. Hercules expects to receive<br />
proceeds of $115.1 million after expenses,<br />
which will be used to pay debt <strong>and</strong> for other<br />
general corporate purposes.<br />
Net proceeds will be used to pay approximately<br />
$45 million of debt under the company’s<br />
new $140-million, senior-secured<br />
term, cover the purchase price of $44 million<br />
A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong> • 35
S&S A&D News<br />
for eight liftboats from Danos & Curole, <strong>and</strong><br />
for corporate purposes (which may include<br />
the refurbishment of Rig 16 <strong>and</strong> Rig 31 <strong>and</strong><br />
the acquisition of additional rigs <strong>and</strong> liftboats).<br />
Hercules provides shallow-water drilling<br />
<strong>and</strong> liftboat services in the Gulf of Mexico.<br />
It owns eight jackup rigs that can drill in 85<br />
to 250 feet of water <strong>and</strong> 39 liftboats with leg<br />
lengths ranging from 105 to 260 feet. In the<br />
Gulf, it has the fourth-largest fleet of jackup<br />
rigs operating in water depths of 250 feet or<br />
less <strong>and</strong> the largest fleet of liftboats with leg<br />
lengths greater than 100 feet.<br />
Union Drilling Inc., Bridgeville, Pa., has<br />
filed for an IPO of 9.4 million shares at an<br />
initial price range of $15 to $17 each. The<br />
proposed symbol on the Nasdaq National<br />
Market is UDRL.<br />
JPMorgan <strong>and</strong> Jefferies & Co. Inc. are<br />
underwriters. Bear, Stearns & Co. Inc. is<br />
sole book-running manager <strong>and</strong> RBC Capital<br />
Markets is joint-lead manager.<br />
Net proceeds are expected to be approximately<br />
$71.2 million, assuming a price of<br />
$16 per share plus the overallotment, if exercised.<br />
About $50.8 million will pay debt under<br />
its revolving credit facility (which was<br />
incurred to acquire Thornton Drilling Co.,<br />
eight rigs from SPA Drilling LP <strong>and</strong> other<br />
additional drilling rigs); $500,000 will pay<br />
the balance owed on drilling rigs; $5.7 million<br />
will upgrade its rig fleet <strong>and</strong> purchase<br />
related equipment; <strong>and</strong> the balance is to be<br />
used for working capital <strong>and</strong> general corporate<br />
purposes.<br />
Formed in 1997, Union provides contract<br />
l<strong>and</strong>-drilling services <strong>and</strong> equipment to natural<br />
gas producers in the U.S. It has 69 l<strong>and</strong>drilling<br />
rigs, which it expects to increase by<br />
two during the fourth quarter. Union’s operations<br />
are focused in the Appalachian, Arkoma,<br />
Fort Worth, Piceance <strong>and</strong> Uinta basins.<br />
Englewood, Colorado-based IHS Inc. has<br />
filed for an IPO of 14.5 million shares at a<br />
price range of $14.50 to $16.50 each for proceeds<br />
of about $275.4 million. The proposed<br />
symbol on the New York Stock Exchange is<br />
IHS.<br />
Citigroup Global Markets Inc. <strong>and</strong><br />
Goldman, Sachs <strong>and</strong> Co. are lead underwriters.<br />
KeyBanc Capital Markets, Morgan<br />
Stanley <strong>and</strong> Co. Inc., Piper Jaffray &<br />
Co. <strong>and</strong> UBS Investment Bank are also<br />
underwriters.<br />
IHS Inc.’s energy segment provides oil<br />
<strong>and</strong> gas industry data on exploration, development,<br />
production <strong>and</strong> transportation.<br />
Schlumberger Ltd. (NYSE:SLB) reports<br />
that its U.S. corporate office will be relocated<br />
from New York to Houston in the second<br />
half of 2006. It will continue to maintain<br />
corporate offices in Paris, France, <strong>and</strong> The<br />
Hague, The Netherl<strong>and</strong>s.<br />
Chairman <strong>and</strong> chief executive Andrew<br />
Gould says, “Our focus on growth in oilfield<br />
services will be enhanced by a closer proximity<br />
of our corporate office to key engineering<br />
<strong>and</strong> operational facilities. Houston is<br />
a vibrant energy capital that is vital to the oil<br />
<strong>and</strong> gas industry. We look forward to consolidating<br />
our presence in the community<br />
that was instrumental in our development.”<br />
—Taryn Maxwell<br />
36 • A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong>
Financial<br />
News<br />
—Equity<br />
—Debt<br />
—Buybacks<br />
EQUITY<br />
Company/Market:<br />
Ticker/Headquarters<br />
Chesapeake Energy Corp./NYSE:<br />
CHK/Oklahoma City<br />
Amount<br />
US$500 million<br />
Comments<br />
Plans to privately place cumulative convertible preferred stock with a liquidation preference of<br />
US$100 per share to partially fund the acquisition of Columbia Natural Resources LLC for<br />
US$2.2 billion in cash.<br />
IHS Inc./NYSE: IHS/Englewood, Colo. US$275.4 million Filed for an initial public offering of 14.5 million shares at US$14.50 to $16.50 each. Agents<br />
are Citigroup Global Markets Inc., Goldman, Sachs & Co., KeyBanc Capital Markets,<br />
Morgan Stanley & Co. Inc., Piper Jaffray & Co. <strong>and</strong> UBS Investment Bank.<br />
Quest Resource Corp./OTCBB:<br />
QRES/Oklahoma City<br />
Stroud Energy Inc./Nasdaq: STRO/Fort<br />
Worth, Texas<br />
Hercules Offshore/Nasdaq:<br />
HERO/Houston<br />
Brigham Exploration Co./Nasdaq:<br />
BEXP/Austin, Texas<br />
Bronco Drilling Co. Inc./Nasdaq:<br />
BRNC/Oklahoma City<br />
RedStar <strong>Oil</strong> & <strong>Gas</strong> Inc./Toronto Venture:<br />
RED/Calgary<br />
US$184.5 million<br />
US$173 million<br />
Sold 15.3 million common shares to refinance debt under Quest Cherokee’s credit agreement,<br />
pay promissory notes owed by Quest Cherokee to Cherokee Energy Partners LLC <strong>and</strong> to<br />
purchase all units in Quest Cherokee owned by Cherokee Energy Partners. Quest Cherokee is<br />
now a wholly owned subsidiary of the company.<br />
Filed for a self-underwritten, initial public offering of 10.8 million shares at US$16 each.<br />
US$115.1 million Priced its initial public offering of 9.2 million common shares at US$20 each to pay debt <strong>and</strong><br />
for general corporate purposes. Agents are Credit Suisse First Boston LLC, Citigroup Global<br />
Markets Inc., Simmons & Co. International, Deutsche Bank Securities Inc. <strong>and</strong> Howard<br />
Weil Inc.<br />
US$111.9 million Plans to sell 8.5 million common shares. Agents are Raymond James, RBC Capital Markets<br />
Corp., Friedman, Billings, Ramsey & Co., Johnson Rice & Co. <strong>and</strong> Dahlman Rose & Co.<br />
US$92.6 million Privately placed 4.02 million common shares at US$23 each to pay debt <strong>and</strong> refurbish rigs, <strong>and</strong><br />
for general corporate purposes. Agents were Johnson Rice & Co. LLC, Jefferies & Co. Inc.,<br />
Friedman Billings Ramsey <strong>and</strong> Raymond James.<br />
C$40 million Plans to issue 4.4 million special warrants at C$2.70 each <strong>and</strong> 8.5 million flow-through special<br />
warrants at C$3.30 each to exp<strong>and</strong> <strong>2005</strong>-06 capital spending <strong>and</strong> for general corporate purposes.<br />
Agents are GMP Securities Ltd., Blackmont Capital Inc., Canaccord Capital Corp., Orion<br />
Securities Inc., Raymond James Ltd., Acumen Capital Finance Partners Ltd. <strong>and</strong><br />
Jennings Capital Inc.<br />
Medora Resources Inc./NA/Calgary C$33 million Closed a private placement to fund exploration, development <strong>and</strong> acquisition activities in southern<br />
Saskatchewan. Resource Capital Partners Inc. was advisor while Camcor Capital Inc., JOG<br />
Capital Inc. <strong>and</strong> Kern Energy Partners I Fund were joint leads.<br />
Eurogas Corp./Toronto Venture:<br />
EUG/Calgary<br />
C$32.1 million<br />
Privately placed 24.3 million common shares to fund construction <strong>and</strong> installation of production<br />
facilities, recompletion costs, oil development offshore Tunisia, C$5 million in debt reduction<br />
<strong>and</strong> general corporate purposes.<br />
Angle Energy Inc./NA/Calgary C$29 million Privately placed 7.83 million common shares at C$3 each <strong>and</strong> 1.53 million flow-through shares<br />
at C$3.60 each to fund exploration <strong>and</strong> development in its core areas. Canaccord Capital<br />
Corp. <strong>and</strong> Acumen Capital Finance Partners Ltd. were agents.<br />
Ivanhoe Energy Inc./Nasdaq: IVAN;<br />
Toronto: IE/Vancouver<br />
Petrolifera Petroleum Ltd./Toronto:<br />
PDP/Calgary<br />
Storm Cat Energy Corp./Amex: SCU;<br />
Toronto: SME/Calgary<br />
US$18.25 million<br />
C$21.3 million<br />
US$10.9 million<br />
Privately placed 11.2 million special warrants with four investors at US$1.63 each to acquire<br />
half of a joint-venture company.<br />
Closed its initial public offering of 12.2 million units at C$1.75 each. Agents were Jennings<br />
Capital Inc., GMP Securities Ltd., Octagon Capital Corp., Dominick & Dominick<br />
Securities Inc., Haywood Securities Inc., Bolder Investment Partners Ltd. <strong>and</strong> Salman<br />
Partners Inc.<br />
Privately placed 5.1 million common shares at US$2.15 each to fund exploration <strong>and</strong> drilling on<br />
Powder River Basin properties <strong>and</strong> its shallow-gas project in Saskatchewan.<br />
Jade Energy Services Inc./NA/Calgary C$12.2 million Closed a private-equity financing to fund the expansion of Canyon Technical Service’s fleet of<br />
nitrogen fracing equipment, <strong>and</strong> to design, build <strong>and</strong> implement other specialized stimulation<br />
equipment.<br />
Sonoran Energy Inc./OTCBB:<br />
SNRN/Phoenix<br />
Arapahoe Energy Corp./Toronto Venture:<br />
AAO/Calgary<br />
PanTerra Resource Corp./Toronto Venture:<br />
PAN/Calgary<br />
US$8.5 million Closed a private-equity placement to fund development of oil <strong>and</strong> gas projects in Louisiana <strong>and</strong><br />
Texas, <strong>and</strong> prospects in the Middle East.<br />
C$4.9 million<br />
Privately placed 3.6 million common shares at C$0.65 each <strong>and</strong> 3.4 million flow-through shares<br />
at C$0.75 each to fund <strong>2005</strong>-06 exploration <strong>and</strong> development, <strong>and</strong> general working capital.<br />
Dominick & Dominick Securities Inc. was agent.<br />
C$4 million Plans to issue up to 12 million flow-through shares at C$0.25 each <strong>and</strong> up to 4.5 million common<br />
shares at C$0.22 each to fund exploration at Shell Lake, Foam Lake <strong>and</strong> Moose Jaw,<br />
Saskatchewan, <strong>and</strong> working capital. Wolverton Securities Ltd. is agent.<br />
A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong> • 37
Financial News<br />
EQUITY<br />
Kootenay Energy Inc./Toronto Venture:<br />
KNY/Calgary<br />
C$3.7 million<br />
Plans to privately place up to 4.6 million common shares at C$0.80 each to fund drilling <strong>and</strong><br />
acquisitions in Saskatchewan.<br />
Zion <strong>Oil</strong> & <strong>Gas</strong> Inc./NA/Calgary C$3.2 million Sold 646,000 common shares.<br />
Deep Resources Ltd./Toronto Venture:<br />
DEP/Calgary<br />
C$3 million Plans to issue 3 million flow-through common shares at C$1 each to fund exploration. Jennings<br />
Capital Inc. is agent.<br />
Exile Resources Inc./Toronto Venture:<br />
ERI/Toronto<br />
C$2 million Closed its initial public offering of 10 million shares at C$0.20 each to fund exploration <strong>and</strong><br />
development, acquisitions in Africa <strong>and</strong> general working capital.<br />
Raptor Capital Corp./Toronto Venture:<br />
RCP/Calgary<br />
Nordic <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong> Ltd./Toronto Venture:<br />
NOG/Winnipeg<br />
C$1.5 million Plans to privately place up to 13.9 million flow-through shares at C$0.07 each <strong>and</strong> up to 10.5<br />
million common shares at C$0.05 each to fund drilling in northeast Alberta, secure a drilling<br />
license at Whiskey Creek, Alberta, <strong>and</strong> working capital.<br />
C$1 million Plans to offer up to 2.5 million units at C$0.40 each. Union Securities Ltd. is agent.<br />
Exile Resources Inc./NA/Calgary C$817,793 Issued 2.7 million flow-through common shares at C$0.30 each to fund exploration <strong>and</strong> drilling.<br />
Secutor Capital Management Corp. was agent.<br />
Goldnev Resources Inc./Toronto Venture:<br />
GNZ/Calgary<br />
Mystique Energy Inc./Toronto Venture:<br />
MYS/Calgary<br />
DEBT<br />
Chesapeake Energy Corp./NYSE:<br />
CHK/Oklahoma City<br />
Chesapeake Energy Corp./NYSE:<br />
CHK/Oklahoma City<br />
Compton Petroleum Corp./Toronto:<br />
CMT/Calgary<br />
Maverick Tube Corp./NYSE: MVK/St.<br />
Louis<br />
Encore Acquisition Co./NYSE: EAC/Fort<br />
Worth, Texas<br />
Tesco Corp./Nasdaq: TESOF; Toronto:<br />
TEO/Calgary<br />
Petrol <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong> Inc./OTCBB: POIG/Las<br />
Vegas<br />
BUYBACKS<br />
C$500,000<br />
C$333,850<br />
US$600 million<br />
US$400 million<br />
US$300 million<br />
US$220 million<br />
US$150 million<br />
US$100 million<br />
US$50 million<br />
Plans to privately place 10 million units at C$0.05 each to fund reorganization into a junior producer.<br />
Privately placed 207,000 shares at C$0.55 each <strong>and</strong> 400,000 options at C$0.55 each.<br />
Plans to privately place senior unsecured contingent convertible notes due 2035 to partially fund<br />
the acquisition of Columbia Natural Resources LLC for US$2.2 billion in cash.<br />
Plans to privately place senior notes due 2020 to partially fund the acquisition of Columbia<br />
Natural Resources LLC for US$2.2 billion in cash.<br />
Priced an offering of 7.63% senior notes due 2013 to pay other debt.<br />
Sold 1.9% convertible senior subordinated notes due 2025 to repurchase shares <strong>and</strong> enter convertible<br />
note hedge <strong>and</strong> warrant transactions.<br />
Sold senior subordinated notes due 2017 to pay revolving credit-facility debt. Citigroup Global<br />
Markets Inc. is agent.<br />
Entered a new credit facility with JP Morgan Chase to fund acquisitions <strong>and</strong> working capital.<br />
Entered an agreement with Laurus Master Fund to provide debt financing to fund drilling.<br />
ConocoPhillips/NYSE: COP/Houston US$1 billion To buy back stock during the next two years.<br />
Burlington Resources Inc./NYSE: US$1 billion<br />
Restored its share-repurchase authorization at US$1 billion.<br />
BR/Houston<br />
NQL Energy Services Inc./Toronto:<br />
NQL/Nisku, Alberta<br />
C$11.4 million Plans to buy back up to 2.2 million Class A common shares.<br />
38 • A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong>
Insider Trading<br />
—Who<br />
—What<br />
—How Much<br />
Ticker Company Date Seller Affiliation # Shares Avg. Est./<br />
to be Sold Share Total<br />
Value<br />
AHC Amerada Hess 10-7 Howard Paver, New York SVP 2,050 $133.33 $273,327<br />
AHC Amerada Hess 11-9 Barclay Collins, New York EVP 1,000 $129.00 $129,000<br />
APA Apache Corp. 10-31 Anthony Lannie, Houston SVP 573 $62.67 $35,910<br />
APA Apache Corp. 10-31 Jon Sauer, Houston VP 982 $62.67 $61,542<br />
APA Apache Corp. 10-31 Floyd Price, Houston EVP 1,824 $62.67 $114,310<br />
APA Apache Corp. 10-31 Roger Plank, Houston CFO 2,351 $62.67 $147,337<br />
APA Apache Corp. 10-31 Cheri Peper, Houston Ofcr 532 $62.67 $33,340<br />
APA Apache Corp. 10-31 Kregg Olson, Houston VP 1,123 $62.67 $70,378<br />
APA Apache Corp. 10-31 Thomas Mitchell, Houston VP 942 $62.67 $59,035<br />
APA Apache Corp. 10-31 Janine McArdle, Houston VP 606 $62.67 $37,978<br />
APA Apache Corp. 10-31 Anthony Lentini, Houston VP 876 $62.67 $54,899<br />
APA Apache Corp. 10-31 John Crum, Houston EVP 1,400 $62.67 $87,738<br />
APA Apache Corp. 10-31 John Christmann, Houston VP 790 $62.67 $49,509<br />
APA Apache Corp. 10-31 Michael Bahorich, Houston EVP 1,688 $62.67 $105,787<br />
APA Apache Corp. 10-31 Jeffery Bender, Houston VP 1,579 $62.67 $98,956<br />
APA Apache Corp. 10-31 Michael Benson, Houston VP 825 $62.67 $51,703<br />
APA Apache Corp. 10-31 Thomas Chambers, Houston VP 841 $62.67 $52,705<br />
APA Apache Corp. 10-31 Robert Dye, Houston VP 1,298 $62.67 $81,346<br />
APA Apache Corp. 10-31 Rodney Eichler, Houston EVP 1,509 $62.67 $94,569<br />
APA Apache Corp. 10-31 Steven Farris, Houston CEO 4,561 $62.67 $285,838<br />
ATPG ATP <strong>Oil</strong> & <strong>Gas</strong> 10-11 Gerard Swonke, Houston Dir 3,000 $29.94 $89,820<br />
BHI Baker Hughes 11-7 Stephen Finley, Houston CFO 52,665 $55.99 $2.9MM<br />
BRY Berry Petroleum 10-3 Ralph Goehring, Bakersfield, Calif. CFO 2,000 $66.74 $133,480<br />
BEXP Brigham Expl. 10-3 Lance Langford, Austin, Texas EVP 10,000 $13.00 $130,000<br />
BEXP Brigham Expl. 11-1 Lance Langford, Austin, Texas EVP 35,000 $14.22 $497,700<br />
BEXP Brigham Expl. 10-31 David Brigham, Austin, Texas EVP 10,000 $12.68 $126,800<br />
CVX Chevron Corp. 11-7 Peter Robertson, San Ramon, Calif. VP 17,800 $58.79 $1MM<br />
COP ConocoPhillips 10-11 John Lowe, Houston EVP 40,000 $62.62 $2.5MM<br />
COP ConocoPhillips 11-1 John Carrig, Houston VP 1,619 $61.74 $99,957<br />
COP ConocoPhillips 11-8 Philip Frederickson, Houston EVP 16,864 $67.12 $1.1MM<br />
CAM Cooper Cameron 10-3 Jane Schmitt, Houston VP 9,302 $73.93 $687,697<br />
CAM Cooper Cameron 11-8 Baker Cunningham, St. Louis Dir 20,580 $74.98 $1.5MM<br />
CAM Cooper Cameron 11-4 William Lemmer, Houston VP 29,700 $75.00 $2.2MM<br />
CAM Cooper Cameron 11-4 Sheldon Erikson, Houston CEO 70,000 $73.95 $5.2MM<br />
CAM Cooper Cameron 11-4 Jack Moore, Houston VP 12,000 $76.00 $912,000<br />
CAM Cooper Cameron 11-4 Franklin Myers, Houston SVP 22,835 $76.09 $1.7MM<br />
DPTR Delta Petroleum 10-12 Roger Parker, Denver CEO 47,109 $19.04 $896,955<br />
DNR Denbury Resources 9-29 Harold Dubuisson, Plano, Texas VP 1,000 $49.09 $49,090<br />
DVN Devon Energy 10-3 Darryl Smette, Oklahoma City SVP 6,000 $68.75 $412,500<br />
DVN Devon Energy 10-12 Duke Ligon, Oklahoma City SVP 50,000 $64.67 $3.2MM<br />
DO Diamond Offshore 10-4 Charles Fabrikant, New York Dir 230,200 $61.52 $14.2MM<br />
DO Diamond Offshore 9-29 Alan Batkin, Houston Dir 500 $61.46 $30,730<br />
EPEX Edge Petroleum Co. 10-4 Michael Long, Houston CFO 12,000 $26.70 $320,400<br />
FPP FieldPoint Pete 10-5 Mel Slater, Scottsdale, Ariz. Dir 7,495 $9.73 $72,926<br />
FPP FieldPoint Pete 10-7 Ray Reaves, Austin, Texas CEO 79,000 $8.43 $665,970<br />
FXEN FX Energy 11-2 Andrew Pierce, Salt Lake City COO 25,311 $10.41 $263,488<br />
HAL Halliburton 9-30 David Lesar, Houston CEO 63,334 $69.36 $4.4MM<br />
HAL Halliburton 10-7 David Lesar, Houston CEO 28,000 $60.00 $1.7MM<br />
HAL Halliburton 10-24 Mark McCollum, Houston SVP 500 $66.10 $33,050<br />
A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong> • 39
Insider Trading<br />
Ticker Company Date Seller Affiliation # Shares Avg. Est./<br />
to be Sold Share Total<br />
Value<br />
HAL Halliburton 10-21 Weldon Mire, Houston VP 125 $66.10 $8,263<br />
HAL Halliburton 10-21 Andrew Lane, Houston COO 182 $68.52 $12,471<br />
HAL Halliburton 10-21 David Lesar, Houston CEO 8,154 $68.52 $558,712<br />
HAL Halliburton 10-21 Albert Cornelison, Houston EVP 276 $68.52 $18,912<br />
HAL Halliburton 10-27 David Lesar, Houston CEO 10,000 $58.79 $587,900<br />
HAL Halliburton 11-7 David Lesar, Houston CEO 28,000 $63.57 $1.8MM<br />
HYDL Hydril Co. 9-29 Neil Russell, Houston SVP 5,000 $65.48 $327,400<br />
HYDL Hydril Co. 11-3 Chris North, Houston CFO 1,200 $67.85 $81,420<br />
IFNY Infinity Energy Res. 10-26 Stanton Ross, Chanute, Kan. Chr 10,000 $6.91 $69,100<br />
KMG Kerr-McGee 11-3 John Reichenberger, Oklahoma City VP 16,516 $86.01 $1.4MM<br />
MRO Marathon <strong>Oil</strong> 11-3 Steven Hinchman, Houston SVP 6,500 $61.07 $396,955<br />
MUR Murphy <strong>Oil</strong> 11-4 Michael Hulse, El Dorado EVP 15,000 $48.78 $731,700<br />
NE Noble Corp. 10-26 James Day, Sugar L<strong>and</strong>, Texas CEO 6,632 $64.71 $429,157<br />
NE Noble Corp. 10-26 Julie Robertson, Sugar L<strong>and</strong>, Texas SVP 1,458 $64.71 $94,347<br />
NE Noble Corp. 10-26 Mark Jackson, Sugar L<strong>and</strong>, Texas SVP 1,094 $64.71 $70,793<br />
NE Noble Corp. 10-26 Danny Adkins, Sugar L<strong>and</strong>, Texas SVP 1,658 $64.71 $107,289<br />
NE Noble Corp. 10-27 Danny Adkins, Sugar L<strong>and</strong>, Texas SVP 2,073 $66.31 $137,461<br />
NE Noble Corp. 10-27 James Day, Sugar L<strong>and</strong>, Texas CEO 7,047 $66.31 $467,287<br />
NE Noble Corp. 10-27 Julie Robertson, Sugar L<strong>and</strong>, Texas SVP 1,823 $66.31 $120,883<br />
PDE Pride Int'l. 10-3 Bruce Kain, Houston VP 34,450 $28.68 $988,026<br />
QRCP Quest Resource 10-4 Marsha Lamb, Benedict, Kan. Invstr 2.2MM $3.00 $6.5MM<br />
QRCP Quest Resource 10-4 Doug Lamb, Benedict, Kan. COO 2.2MM $3.00 $6.5MM<br />
QRCP Quest Resource 10-11 Jerry Cash, Oklahoma City CEO 1.1MM $3.00 $3.5MM<br />
RRC Range Resources 10-5 Anthony Dub, Forth Worth, Texas Dir 10,000 $39.69 $396,900<br />
REM Remington OG 10-5 Thomas Rollins, Dallas Dir 450 $41.45 $18,653<br />
REM Remington OG 10-4 J.R. Simplot, Boise, Idaho Invstr 2,000 $40.30 $80,600<br />
REM Remington OG 10-11 J.R. Simplot, Boise, Idaho Invstr 1,000 $39.57 $39,570<br />
REM Remington OG 10-26 J.R. Simplot, Boise, Idaho Invstr 1,000 $36.89 $36,890<br />
REM Remington OG 11-2 J.R. Simplot, Boise, Idaho Invstr 500 $35.30 $17,650<br />
REM Remington OG 11-4 Thomas Rollins, Dallas Dir 450 $35.00 $15,750<br />
SM St. Mary L&E 10-26 John Seidl, Denver Dir 25,048 $32.43 $812,307<br />
SGY Stone Energy 10-5 Jerome Wenzel, Lafayette, La. VP 707 $61.11 $43,205<br />
SGY Stone Energy 10-3 Robert Bernhard, New York Dir 1,500 $61.20 $91,800<br />
SGY Stone Energy 11-1 Robert Bernhard, New York Dir 1,500 $45.39 $68,085<br />
TEC Teton Energy 10-20 Howard Cooper, Stmbt Springs, CO Invstr 38,100 $6.21 $236,601<br />
RIG Transocean 10-11 Jean Cahuzac, Houston EVP 8,334 $56.85 $473,788<br />
UPL Ultra Petroleum 9-30 James Nielson, Houston Dir 22,000 $41.73 $918,060<br />
UPL Ultra Petroleum 11-4 George Patterson, Houston VP 35,000 $55.35 $1.9MM<br />
WGR Western <strong>Gas</strong> Res. 11-7 Peter Dea, Denver CEO 30,000 $47.00 $1.4MM<br />
XTO XTO Energy 9-30 Phillip Kevil, Fort Worth, Texas Dir 3,300 $45.50 $150,150<br />
Information is based on forms filed with the SEC as reported by Edgar Online (edgar-online.com).<br />
For information on Edgar Online products <strong>and</strong> services, contact Jay Sears at<br />
203-852-5666 or sears@edgar-online.com.<br />
40 • A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong>
Exploration News<br />
—Eastern U.S.<br />
—Gulf States<br />
—Midcontinent<br />
—Western U.S.<br />
—International<br />
Eastern U.S.<br />
Denbury Onshore LLC, Plano, Texas,<br />
marked a discovery at its #1 Richards “35-2”<br />
wildcat on the northern flank of the Black<br />
Warrior Basin in Lamar County, Ala. The<br />
well, in Section 35-16s-14w near Kennedy<br />
Field, tested flowing 925,000 cu. ft. of gas a<br />
day from fracture-treated Lewis perforations<br />
between 3,866-86 ft. in the 4,100-ft. well.<br />
The company asked the Alabama State <strong>Oil</strong><br />
& <strong>Gas</strong> Board for a field designation for<br />
Kennedy Northeast Field for four sections<br />
around the discovery, 25, 26, 35 <strong>and</strong> 36.<br />
Kennedy Field also produces from Lewis.<br />
The closest well in that field is more than<br />
three miles south-southwest of the Denbury<br />
well. That well, the #1 Carolyn Davis “15-<br />
3,” was completed a year ago for 135,000 cu.<br />
ft. of gas a day. It produced 6.84 million cu.<br />
ft. of gas <strong>and</strong> 664 bbl. of water in its first two<br />
months online.<br />
Two independents, Golden Petroleum<br />
Corp. <strong>and</strong> Black River <strong>Oil</strong> Corp., both of<br />
Traverse City, Mich. have teamed to drill a<br />
horizontal Niagaran wildcat in Section 12-<br />
24n-14w, Springdale Township in northeastern<br />
Manistee County, Mich. The #1-12HD1<br />
State-Springdale & K&B is a mile northwest<br />
of Copemish <strong>and</strong> more than two miles southwest<br />
of an ab<strong>and</strong>oned Niagaran producer in<br />
Colfax 31-25n-13w Field in neighboring<br />
Colfax County. There, the #2-31 State-Colfax<br />
produced a cumulative 149,094 bbl. of<br />
oil from Brow Niagaran between April 1987<br />
<strong>and</strong> April 2002 from perforations between<br />
5,037-43 ft., according to IHS Energy.<br />
Muskegon Development Co., Mount Pleasant,<br />
Mich., took out a drilling permit to drill<br />
to Devonian Dundee at 4,000 ft. about 4.5<br />
miles northeast of Mecosta in Mecosta<br />
County, Mich. The #1-34 Perry is in Section<br />
34-15n-7w, Sheridan Township. The well is<br />
approximately 1.25 miles southwest of the<br />
discovery well for Sheridan Section 26<br />
Field. That discovery, the #1 Theodore R.,<br />
May et al. in Section 26, pumped 15 bbl. of<br />
oil <strong>and</strong> 40 bbl. of water a day from Devonian<br />
Traverse between 3,369-79 ft. It produced<br />
less than 200 bbl. of oil before the operator<br />
plugged it a year after it came onstream,<br />
according to IHS Energy. The nearest production<br />
from Dundee is three miles southwest<br />
in Wheatl<strong>and</strong> Field, which produced<br />
141,700 bbl. of oil from Dundee around<br />
3,700 ft. between 1945 <strong>and</strong> 1960.<br />
RK Petroleum Corp., Midl<strong>and</strong>, plans to<br />
look at Silurian oil potential to 3,900 ft. with<br />
its #1 Decker Comm wildcat in Section 3-<br />
7n-5e in Effingham County, Ill. The well is<br />
about four miles west of the Effingham city<br />
limits <strong>and</strong> more than two miles northeast of<br />
Keptown field, which produces from Geneva<br />
dolomite. The discovery well in that field,<br />
the #1-7 Smith Trust, tested at 40 bbl. of oil<br />
<strong>and</strong> 40 bbl. of water a day from perforations<br />
between 3,731-33 ft. <strong>and</strong> produced 52,000<br />
bbl. of oil through July 2004. Last January,<br />
RK staked another 3,900-ft. Silurian test<br />
0.75-mile southwest for the #1 Barclay-<br />
Davis Comm, about 1.5 miles northeast of<br />
Keptown Field.<br />
Nashville, Ill., independent Oelze Equipment<br />
Co. LLC has two wildcats in planning<br />
in western Washington County, Ill., on the<br />
southwestern flank of the Illinois Basin. The<br />
company will drill the #1 Ven-Oka Farms in<br />
Section 3-2s-5w about four miles south of<br />
the town of Venedy. That well will test Silurian<br />
to 2,600 ft. The sister well, the #1<br />
Raphael Lintker Trust, is about four miles<br />
south-southwest in Section 29 of the same<br />
township. The Lintker well will go to 3,400<br />
ft. to look at formations through Trenton.<br />
The only production in the township is<br />
from Stone Church Field more than three<br />
miles southeast of the Ven-Oka well <strong>and</strong> 3.5<br />
miles east-northeast of the Lintker well. That<br />
field has produced 158,000 bbl. of oil since<br />
2001 from six Siluro-Devonian wells.<br />
Pioneer <strong>Oil</strong> Co., Lawrenceville, Ill., wants<br />
to examine oil-production potential in<br />
Devonian sediments at its 2,000-ft. #1<br />
Peabody Coal wildcat in Section 35-14n-<br />
10w in southern Vermillion County, Ind.<br />
The well is about two miles west of the town<br />
of Universal. The site is more than four<br />
miles northwest of an unnamed 465-ft.<br />
Pennsylvanian coalbed-methane discovery<br />
completed 15 years ago. The closest Devonian<br />
oil production is more than 11 miles<br />
northeast in Montezuma Field.<br />
A nonproducing, lightly drilled township in<br />
western Warrick County, Ind., will see<br />
action as Mount Carmel, Ill.-based Dee<br />
Drilling Co. plans three wildcats to evaluate<br />
Salem at 2,300 ft. The company’s #1 Lake<br />
Group in Section 21-5s-9w is about five<br />
miles east-northeast of Evansville <strong>and</strong> 4.5<br />
miles west-northwest of the closest producing<br />
well in Ch<strong>and</strong>ler Field, which produces<br />
from multiple zones. That field has produced<br />
38,000 bbl. of oil from 11 wells in 21 years.<br />
To date, 10 dry holes have been drilled in the<br />
township. The company’s #1 Newmaster,<br />
also targeting Salem lime at the same depth,<br />
is in Section 27 <strong>and</strong> the 2 Lake Group,<br />
scheduled to the same target, is in Section<br />
32, according to IHS Energy.<br />
Bakerwell Inc., Westerville, Ohio, staked a<br />
3,900-ft. wildcat to Clinton S<strong>and</strong> in search of<br />
oil <strong>and</strong> gas at its #1 Forrest Unit in Lot 7,<br />
Section 9, Russell Township, Russell Quad,<br />
in Geauga County, Ohio. The venture is 5.5<br />
miles north of East Bainbridge Field, which<br />
produces from Clinton, <strong>and</strong> two miles north<br />
of the town of Chagrin Falls, Ohio, says IHS<br />
Energy.<br />
The #1 Richard Shively wildcat will look at<br />
Trempealeau in Lot 36, Kingston Township,<br />
Kilbourne Quad in Delaware County, Ohio.<br />
Operator MFC Drilling, Coshocton, Ohio,<br />
will drill to 3,200 ft. in a search for oil <strong>and</strong><br />
gas at the well. The wildcat is 2.5 miles<br />
southwest of an unnamed field that produces<br />
A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong> • 41
Exploration News<br />
from the Black River Group <strong>and</strong> six miles<br />
east of the town of Delaware, Ohio.<br />
Gulf States<br />
A discovery rewarded drilling efforts by<br />
Barrow-Shaver Resources Co., Tyler,<br />
Texas, as it completed the #1 Shiels Unit in<br />
Eliza R. Caraway Survey, A-214, in Smith<br />
County, Texas, (RRC 6) for 124 bbl. of oil,<br />
158,000 cu. ft. of gas <strong>and</strong> 1,266 bbl. of water<br />
a day. The well, 0.33-mile south of the<br />
Wood County boundary line <strong>and</strong> two miles<br />
south-southwest of the Hawkins city limits,<br />
produced from Lower Cretaceous perforations<br />
between 9,639-52 ft. through a 20/64-<br />
in. choke with 95 psi of flowing tubing pressure,<br />
IHS Energy says. The nearest well to a<br />
similar depth was a 1950 well in Red<br />
Springs Field. The #1 H.S. Chambers tested<br />
at 1.06 million cu. ft. of gas a day from an<br />
unreported formation.<br />
Corpus Christi, Texas, independent Geodominion<br />
Petroleum scheduled a wildcat to<br />
5,000 ft. in northwestern Limestone County,<br />
Texas, (RRC 5) about three miles east of<br />
Prairie. The #1 Findley is in Section 16,<br />
H&TC RR Co. Survey, A-655. The wildcat<br />
is nearly seven miles west of two wells in<br />
Christman Creek field, which produces from<br />
Woodbine perforations shallower than 3,225<br />
ft., according to IHS Energy.<br />
Burlington <strong>Oil</strong> & <strong>Gas</strong> Co. LP, Houston,<br />
received a permit for the #1 N.R. Lutz wildcat<br />
in southwestern Robertson County,<br />
Texas (RRC 5). The well is more than two<br />
miles west of Hearne <strong>and</strong> about the same<br />
distance from the Milam County border in<br />
George Antonio Nixon Survey, A-31.<br />
Burlington will drill the well to 14,500 ft.<br />
The nearest production lies more than<br />
three miles south-southwest at the #3<br />
Cotopia-Ferrara Unit well, which produces<br />
from the Austin Chalk through dual laterals<br />
in Giddings Field. Another 4.5 miles southeast,<br />
the #1R Mary Muse showed an initial<br />
potential of 350,000 cu. ft. of gas a day from<br />
Cotton Valley perforations between 12,228<br />
<strong>and</strong> 12,766 ft. The well produced a cumulative<br />
24.61 million cu. ft. of gas <strong>and</strong> 71,412<br />
bbl. of water between February 2001 <strong>and</strong><br />
April <strong>2005</strong> as part of the two-well Mumford<br />
North Field.<br />
Duncan <strong>Oil</strong> Inc., Denver, completed two<br />
directional wildcats as Miocene discoveries<br />
in Jefferson County, Texas (RRC 3). The<br />
wells are a couple miles west of the<br />
Louisiana border <strong>and</strong> immediately outside<br />
the Port Arthur city limits. Duncan’s #1<br />
South Texas L<strong>and</strong> LP et al., in John<br />
McGaffey Survey, A-167, tested at 1.51 million<br />
cu. ft. of gas a day. The company tested<br />
perforations between 9,571-79 ft. on a<br />
12/64-in. choke with 1,715 psi of flowing<br />
tubing pressure. Less than two miles northwest,<br />
the company’s #1 Iles et al. tested at<br />
713,000 cu. ft. of gas <strong>and</strong> two bbl. of condensate<br />
through a 9/64-in. choke with 2,532<br />
psi of flowing tubing pressure from perforations<br />
between 8,724-32 ft.<br />
A wildcat in southwestern Matagorda County,<br />
Texas, (RRC 3) flowed 4.6 million cu. ft.<br />
of gas, seven bbl. of condensate <strong>and</strong> 117 bbl.<br />
of water a day for El Paso Production <strong>Oil</strong><br />
& <strong>Gas</strong> Co., Houston. The #1 Mad Isl<strong>and</strong><br />
Unit “1” produced through a 9/64-in. choke<br />
with 7,992 psi of flowing tubing pressure<br />
from Textularia mississippiensis perforations<br />
between 17,619 ft. <strong>and</strong> 20,428 ft. in<br />
Joseph Bishop Survey, A-115. The company<br />
also took out a permit for the #2 Mad<br />
Isl<strong>and</strong> but has not yet drilled that well,<br />
according to IHS Energy observations. The<br />
nearest production below 15,000 ft. is 5.5<br />
miles south-southwest in Matagorda Bay,<br />
where the #1 East Matagorda Bay Unit<br />
flowed 487.71 million cu. ft. of gas, 1,629<br />
bbl. of condensate <strong>and</strong> 18,497 bbl. of water<br />
in one year online.<br />
A discovery tested at 2.92 million cu. ft. of<br />
gas a day as Erskine Energy LLC, Houston,<br />
reestablished production in the singlewell<br />
Ruidoso Field in northern Goliad<br />
County, Texas, (RRC 2) about 10 miles<br />
northwest of Goliad. The #1 Simmons Unit<br />
in Jose Maria Mancha Survey, A-203, also<br />
produced 23 bbl. of condensate <strong>and</strong> 78 bbl.<br />
of water a day through an 18/64-in. choke<br />
with 2,038 psi of flowing casing pressure<br />
from Wilcox perforations between 12,768 ft.<br />
<strong>and</strong> 12,884 ft. The discovery is nearly two<br />
miles east-northeast of the only previous<br />
well in Ruidoso Field. That well, the #1<br />
Parkhill-Bednorz Unit in the same survey,<br />
produced 73.14 million cu. ft. of gas <strong>and</strong> 784<br />
bbl. of water from Wilcox between 1994 <strong>and</strong><br />
1997. Erskine has scheduled several more<br />
wells below 15,000 ft. in the area in its Lions<br />
Field drilling program.<br />
Manti Operating Co., Corpus Christi,<br />
Texas, pulled in a discovery in northern<br />
McMullen County, Texas, (RRC 1) for 156<br />
bbl. of oil <strong>and</strong> 33,000 cu. ft. of gas a day<br />
from Wilcox perforations between 5,385-94<br />
ft., says IHS Energy. The #1 Kassner is<br />
about 1.5 miles south of the Atascosa County<br />
line in Section 959, George Elliott Survey,<br />
A-181. It ran tests through a 14/64-in.<br />
choke with 213 psi of flowing tubing pressure.<br />
A half-mile north, production comes<br />
from Wilcox at the #4-A Victor Houston.<br />
That 1973 well tested for 65 bbl. of oil <strong>and</strong><br />
34,000 cu. ft. of gas a day.<br />
A Frio discovery added 101 bbl. of oil <strong>and</strong><br />
315,000 cu. ft. of gas with 285 bbl. of water<br />
a day to the production inventory of Continental<br />
Trend Resources Inc., Enid, Okla.<br />
The company drilled the #1 Jalufka in<br />
BS&F Survey, A-960, in central Nueces<br />
County, Texas, (RRC 4) about two miles<br />
west of Corpus Christi. It tested the well on<br />
a 48/64-in. choke with 160 psi of flowing<br />
tubing pressure from perforations between<br />
8,504-74 ft. The closest Frio production is<br />
1.5 miles east, where the #7 Cody tested at a<br />
rate of 1.16 million cu. ft. of gas <strong>and</strong> 12 bbl.<br />
of condensate a day.<br />
EOG Resources Inc., Houston, claimed an<br />
apparent discovery flowing 1.39 million cu.<br />
ft. of gas, 15 bbl. of condensate <strong>and</strong> eight<br />
bbl. of water a day from Middle Frio at its #1<br />
Progresso Deep <strong>Gas</strong> Unit. The southeastern<br />
Hidalgo County, Texas, (RRC 4) well, some<br />
three miles north of the border with Mexico,<br />
is in Juan Jose Balli Survey, A-54. EOG<br />
tested the 17,000-ft. well through a 12/64-in.<br />
choke with 2,065 psi of flowing tubing pressure<br />
from perforations between 10,716-56 ft.<br />
Nearby Lower Frio production comes from<br />
the two-well Progresso Field 1.5 miles<br />
south-southeast, according to IHS Energy.<br />
Active Gulf of Mexico explorer Walter <strong>Oil</strong><br />
& <strong>Gas</strong> Corp., Houston, completed a discovery<br />
earlier this year <strong>and</strong> filed an initial development<br />
operations coordination document<br />
to bring the well online. The #1 OCS-G-<br />
21736, renamed the #SS1, was drilled offshore<br />
in Viosca Knoll 986 <strong>and</strong> flowed gas<br />
from Pliocene perforations between 5,440<br />
42 • A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong>
Exploration News<br />
<strong>and</strong> 5,664 ft. in 895 ft. of water. The discovery<br />
is on the same surface location as the<br />
company’s #SS2 OCS-G-14618 well in<br />
Block 986. That well has produced 4.16 billion<br />
cu. ft. of gas <strong>and</strong> 1,950 bbl. of water<br />
since November 2002 as part of Viosca<br />
Knoll Block 986 Field.<br />
Kerr-McGee Corp., Oklahoma City, submitted<br />
exploration plans for as many as four<br />
wildcats on three blocks in the Garden<br />
Banks area of the Gulf of Mexico. All four<br />
will be drilled from separate locations on<br />
Garden Banks 521. The wells under blocks<br />
521 <strong>and</strong> 565 will look at the company’s Nassau<br />
prospect, while the Block 566 well is the<br />
Kingston prospect. Water depths in the area<br />
range from 2,543 to 2,681 ft. There is no<br />
nearby production. The nearest well is nine<br />
miles west-southwest at the temporarily<br />
ab<strong>and</strong>oned #1 OCS-G-20794 in Block 562.<br />
The nearest production is more than 10<br />
miles northwest in the Cooper <strong>and</strong> Llano<br />
fields in Block 388.<br />
Midcontinent<br />
Red Oak Energy Inc., Wichita, Kan.,<br />
received a permit to drill a wildcat seven<br />
miles south <strong>and</strong> slightly west of Sharon<br />
Springs, Kan., in Wallace County. The #1-<br />
33 Sommerfield, in Section 33-14s-40w on<br />
the Las Animas Arch, is planned to reach a<br />
total depth of 5,250 ft. to target the Morrow<br />
s<strong>and</strong>s. The nearest Morrow producers are in<br />
Okeson Field more than 6.5 miles westsouthwest.<br />
The #1-8 Okeson was shut in<br />
after it initially pumped seven bbl. of 36-<br />
gravity oil daily from the Lower Morrow<br />
between 4,977-86 ft. <strong>and</strong> produced 146 bbl.<br />
of oil during one month of tests.<br />
Wichita, Kan.-based Abercrombie Energy<br />
LLC is producing oil at a daily average rate<br />
of 259 bbl. from the #1-12 Cox, designated<br />
the Santa Fe Field opener. Located in the<br />
Hugoton Embayment in Section 14-28s-<br />
33w, 11 miles north of Sublette, Kan., in<br />
Haskell County, the 5,635-ft. well is producing<br />
from the Mississippian Chester s<strong>and</strong>.<br />
According to state figures, the well recovered<br />
8,042 bbl. of oil in May <strong>and</strong> 5,522 bbl.<br />
the previous month. The multi-pay Santa Fe<br />
Northeast Field is approximately two miles<br />
northwest of Santa Fe Field. It has produced<br />
154,000 bbl. of oil <strong>and</strong> 638 million cu. ft. of<br />
gas from four wells from reservoirs between<br />
4,200 <strong>and</strong> 5,250 ft.<br />
The Seeco Inc. unit of Houston-based<br />
Southwestern Energy Co. is forming an<br />
exploratory unit in a nonproducing township<br />
in the Ozark National Forest in eastern Johnson<br />
County, Ark., according to a case on the<br />
Arkansas <strong>Oil</strong> & <strong>Gas</strong> Commission docket.<br />
The area, which includes Section 23-11n-<br />
22w <strong>and</strong> integration of unleased mineral<br />
interests underlying the unit, is 11 miles<br />
northeast of Clarksville, six miles northeast<br />
of Ludwig Field <strong>and</strong> six miles northwest of<br />
Silex Field, both of which produce from various<br />
Pennsylvanian formations, according to<br />
IHS Energy. Two wells in Silex Field were<br />
recompleted flowing between 102,000 <strong>and</strong><br />
257,000 cu. ft. of gas per day from the<br />
Fayetteville Shale.<br />
Hanna <strong>Oil</strong> & <strong>Gas</strong> Co., Fort Smith, Ark.,<br />
filed a case with the Arkansas <strong>Oil</strong> & <strong>Gas</strong><br />
Commission for an exploratory unit comprised<br />
of Section 16-6n-16w in southern<br />
Conway County, Ark., <strong>and</strong> integration of<br />
unleased mineral interests in the unit. The<br />
operator also sought approval to drill a<br />
remote wildcat projected to Penters/Hunton<br />
with a total depth of 10,000 ft. The nearest<br />
producer in the area is more than eight miles<br />
northeast. The #7-6 Epperson, designated<br />
the Cypress Valley Field opener, flowed<br />
198,000 cu. ft. of gas from the Lower Hale<br />
through perforations between 5,279 <strong>and</strong><br />
5,300 ft. However, the 5,481-ft. well was<br />
never connected to a pipeline.<br />
Oklahoma City-based Marshall <strong>Oil</strong> Corp.<br />
completed a wildcat flowing 500,000 cu. ft.<br />
of gas with one bbl. of condensate daily during<br />
initial tests of the Cottage Grove s<strong>and</strong><br />
perforated between 5,602-10 ft. The #1-32<br />
Whitlaw is in Section 32-24n-16w, about<br />
five miles south-southwest of Waynoka,<br />
Okla., on the northern shelf of the Anadarko<br />
Basin in Woods County. The 5,800-ft. well<br />
is more than a mile south of the #29-1 Whitlaw<br />
in the Waynoka South/Southwest Field<br />
region. The 4,503-ft. well has produced 448<br />
million cu. ft. of gas from the Tonkawa<br />
between 5,116-21 ft.<br />
Ward Petroleum Corp., Enid, Okla.,<br />
staked a wildcat 5.5 miles west of Weatherford,<br />
Okla., in southern Custer County. The<br />
#1-5 Alfred, in Section 5-12n-15w, is set to<br />
reach a total depth of 12,500 ft., testing<br />
potential pays in four Pennsylvanian s<strong>and</strong>s<br />
between 8,850 <strong>and</strong> 12,150 ft. About 1.25<br />
miles east of the drill site is a pair of producers<br />
on the eastern edge of Indianapolis Field.<br />
According to IHS Energy, that well recovered<br />
116,000 bbl. of oil with 1.2 billion cu.<br />
ft. of gas from a Skinner reservoir at about<br />
11,800 ft.<br />
Chesapeake Operating Inc., Oklahoma<br />
City, completed a Morrow wildcat more<br />
than 20 miles west-southwest of Eunice,<br />
N.M., in southwestern Lea County. The #1<br />
Gurney “3” State, in Section 3-23s-33e, was<br />
tested flowing 1.98 million cu. ft. of gas, 10<br />
bbl. of condensate <strong>and</strong> seven bbl. of water<br />
daily through stimulated perforations<br />
between 14,679 <strong>and</strong> 14,810 ft. Flowing tubing<br />
pressure was gauged at 1,300 psi<br />
through a 16/64-in. choke. Total well depth<br />
is 15,665 ft. A half-mile south is the 15,753-<br />
ft. #1 State “IK” in Brinninstool Field. During<br />
a year online the well has produced<br />
1,602 bbl. of oil, 2.59 million cu. ft. of casinghead<br />
gas <strong>and</strong> 632 bbl. of water from the<br />
Bone Spring.<br />
Artesia, N.M. independent Yates Petroleum<br />
Corp. completed a wildcat in eastern<br />
Chaves County less than 30 miles west of<br />
the town of Tatum, N.M. The #2 Patsy State<br />
Unit, in Section 11-12s-31e, was tested<br />
flowing 1.99 million cu. ft. of gas <strong>and</strong> 39 bbl.<br />
of condensate daily in the Atoka through<br />
perforations between 10,722-36 ft. Flowing<br />
tubing pressure was gauged at 2,000 psi on a<br />
19/64-in. choke. Total depth of the well is<br />
11,262 ft. The nearest Morrow production is<br />
less than a mile southeast in Caprock West<br />
Field. During 14 months online, the #1 State<br />
“14” has produced 76.87 million cu. ft. of<br />
gas, 686 bbl. of condensate <strong>and</strong> 7,910 bbl. of<br />
water.<br />
Holmes Exploration LLC, Tulsa, Okla.,<br />
completed a horizontally drilled wildcat nine<br />
miles northwest of Higgins in the Texas<br />
Panh<strong>and</strong>le. The #4501H Domino, in Section<br />
450, Block 43, H&TC Survey, A-785, eastern<br />
Lipscomb County (RRC 10), produced<br />
401 bbl. of oil with 504,000 cu. ft. of gas per<br />
day <strong>and</strong> no water through a fracture-stimulated<br />
lateral in the Clevel<strong>and</strong> s<strong>and</strong> perforated<br />
A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong> • 43
Exploration News<br />
between 8,950 <strong>and</strong> 10,170 ft., according to<br />
IHS Energy. Flowing tubing pressure was<br />
gauged at 684 psi on a 20/64-in. choke. The<br />
well was drilled south-southwest to a measured<br />
depth of 10,275 ft. with a bottomhole<br />
location in the same section. The company<br />
reported the well recovered 1,000 bbl. of oil<br />
before its initial test.<br />
The well’s bottomhole location is within<br />
0.75-mile generally north of two vertical<br />
wells on the northern portion of Trosper<br />
Field. The wells produce oil from the<br />
Tonkawa at 7,000 ft. <strong>and</strong> the Atoka at about<br />
9,400 ft., but numbers were not available at<br />
press time. The other well in the section produced<br />
noncommercial amounts of oil <strong>and</strong><br />
gas.<br />
Western U.S.<br />
The FEX LP subsidiary of Talisman Energy<br />
Inc., Calgary, plans as many as eight<br />
exploratory wells in the northwestern part of<br />
the National Petroleum Reserve-Alaska.<br />
The wells will be drilled south of Cape<br />
Simpson <strong>and</strong> west of the Ikpikpuk River,<br />
according to IHS Energy, <strong>and</strong> the company<br />
will ab<strong>and</strong>on all of the wells before the end<br />
of the winter drilling season. The well sites<br />
are in Township 15n-11w, Umiat Meridian.<br />
The closest drilling was the #1 Puviaq in<br />
Section 35-16n-10w, but no details were<br />
released on that well. FEX already has l<strong>and</strong>ed<br />
supplies <strong>and</strong> equipment, <strong>and</strong> when ice<br />
conditions permit, it will build a 31-mile ice<br />
road to the well sites, water sources <strong>and</strong><br />
airstrips. The main camp will house up to<br />
120 people.<br />
A preliminary finding of approval paves the<br />
way for Healy, Alaska-based Usibelli Coal<br />
Mine Inc. to explore in the Healy Basin of<br />
Alaska in Denali Borough east of Denali<br />
National Park. Exploration could affect the<br />
communities of Healy, Anderson, Cantwell,<br />
Ferry <strong>and</strong> McKinley Village, according to<br />
the Alaska Division of <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong>. The 10-<br />
year, $500,000 work commitment covers<br />
only exploration for natural gas in shallow<br />
coalbeds in the area.<br />
EnCana <strong>Oil</strong> & <strong>Gas</strong> (USA) Inc., Denver,<br />
armed with a new deeper-capacity drilling<br />
rig, will resume drilling its deep gas well<br />
seven miles east of Mattawa in southwestern<br />
Grant County, Washington. The company’s<br />
#1 Anderville Farms is in Section 6-14n-<br />
25e. The previous rig had set surface casing<br />
to 1,500 ft. The new rig will take the well to<br />
a planned depth of 14,000 ft. The site is<br />
about five miles northwest of Saddle Mountain<br />
National Wildlife Refuge. The only previous<br />
drilling to a similar depth was the #1-<br />
9 BN, about five miles north-northeast.<br />
There, Shell Western drilled to 17,518 ft.<br />
<strong>and</strong> conducted an extensive drilling program,<br />
measuring gas flows to 3.1 million cu.<br />
ft. a day.<br />
Petrogulf Corp., Denver, plans a couple of<br />
new-field wildcats in California’s San<br />
Joaquin County. Both are in Township 3s-6e<br />
<strong>and</strong> the company did not disclose target formations<br />
other than to say it was looking for<br />
natural gas. The company’s #1-7 Matsuoka<br />
in Section 7 is 5.7 miles southeast of the<br />
town of Tracy <strong>and</strong> 1.5 miles southwest of<br />
Vernalis Field, a Panoche producer. The #1-<br />
18 Reinstein is in Section 18. It is 6.6 miles<br />
southeast of Tracy <strong>and</strong> 1.6 miles west of<br />
Vernalis Field.<br />
Two wildcats in Nevada’s Railroad Valley<br />
were permitted by Makoil Inc., Orange,<br />
Calif. The ventures both are in Township<br />
7n-57e in northeastern Nye County, about<br />
65 miles southwest of Elko. The company’s<br />
#19-43 West Bacon Flat is in Section 19.<br />
That well is projected to 6,200 ft. The #18-<br />
43 West Bacon Flat well is less than a mile<br />
north in Section 18, <strong>and</strong> it is planned to<br />
6,510 ft. Nevada targets typically are oilbearing<br />
zones <strong>and</strong> the probable target for<br />
these two wells are Devonian Guilmette.<br />
The #19-43 well is a mile south-southwest<br />
of Bacon Flat Field <strong>and</strong> more than a<br />
mile west of Grant Canyon Field, according<br />
to IHS Energy. Both fields produce from<br />
Guilmette. The discovery well for Bacon<br />
Flat Field, the #8 Railroad Valley, tested at<br />
270 bbl. of oil <strong>and</strong> 631 bbl. of water a day<br />
<strong>and</strong> produced a cumulative 314,640 bbl. of<br />
oil <strong>and</strong> 3.6 million bbl. of water from 1981<br />
until late 1988.<br />
Enduring Resources LLC, Denver, will<br />
look for Mesaverde gas at a couple of Uinta<br />
Basin wildcats about 2.5 miles southeast of<br />
Bonanza in Uintah County, Utah. It will drill<br />
both wells from the same pad in Section 6-<br />
10s-25e. Enduring will drill the #10-25-11-6<br />
Southam Canyon as a vertical hole, <strong>and</strong> it<br />
will drill the #9-24-44-36 Southam Canyon<br />
as a directional well to the northwest to a<br />
bottomhole location in Section 36-9s-24e to<br />
a depth of 6,922 ft. The wells are some three<br />
miles southeast of Bonanza Field, where the<br />
#2D-27 Bonanza produced 24.3 million cu.<br />
ft. of gas, 423 bbl. of condensate <strong>and</strong> 3,712<br />
bbl. of water from Mesaverde during its first<br />
10 months online. It now produces at stripper<br />
rates.<br />
Utah’s Paradox Basin will see action as<br />
EnCana <strong>Oil</strong> & <strong>Gas</strong> USA drills its #36-14-<br />
29-24 Middle Mesa-State wildcat to 7,350<br />
ft. about 28 miles southeast of Moab in<br />
northeastern San Juan County, according to<br />
IHS Energy. The operator didn’t disclose the<br />
objective for the well, staked in Section 36-<br />
29s-24e, but probably includes Honaker<br />
Trail <strong>and</strong> Ismay intervals. A mile westsouthwest<br />
lies the company’s #35-24 Big<br />
Indian discovery well, completed earlier this<br />
year for 2.1 million cu. ft. of gas a day from<br />
Honaker Trail. The well produced 77.7 million<br />
cu. ft. of gas, 139 bbl. of condensate <strong>and</strong><br />
230 bbl. of water in its first two months<br />
online.<br />
Klabzuba <strong>Oil</strong> & <strong>Gas</strong> Inc., Fort Worth, will<br />
drill for Cambrian at its #31-7-32-22B<br />
Venus wildcat seven miles west of Fort<br />
Belknap in central Blaine County, Mont.<br />
The 6,500-ft. well is just west of the Fort<br />
Belknap Indian Reservation in Section 31-<br />
32n-22e. The company will evaluate the<br />
Upper Cretaceous Judith River, Eagle, Telegraph<br />
Creek, Niobrara, Second White<br />
Specks formations <strong>and</strong> Jurassic Sawtooth on<br />
the way down the hole. The well will drill<br />
about 10 miles southeast of Chinook Field,<br />
an Eagle gas producer.<br />
A horizontal discovery five miles west of<br />
Sidney in southeastern Richl<strong>and</strong> County,<br />
Mont., flowed 405 bbl. of oil, 203,000 cu. ft.<br />
of gas <strong>and</strong> 173 bbl. of water a day from<br />
Bakken. Headington <strong>Oil</strong> LP, Dallas, drilled<br />
the #14X-15 O’Brien in Section 15-22n-58e<br />
<strong>and</strong> produced from a lateral reaching north<br />
from 10,571 ft. to 19,868 ft. The bottomhole<br />
location is in Section 10. The closest Bakken<br />
production is 2.5 miles north at Headington’s<br />
#42X-4 Atchison. That dual-lateral<br />
Bakken well produced an average 295 bbl.<br />
of oil, 106,400 cu. ft. of gas <strong>and</strong> 95 bbl. of<br />
44 • A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong>
Exploration News<br />
water a day during May.<br />
The JMG Exploration Inc. affiliate of JED<br />
<strong>Oil</strong> Inc., Calgary, brought in a single-lateral<br />
horizontal Bakken discovery but revealed no<br />
test details for its #3-9HD Rindel in eastern<br />
Divide County, N.D. The well is in Section<br />
9-162n-96w, about six miles west-southwest<br />
of Noonan. The company drilled the well<br />
south toward a projected bottomhole location<br />
in Section 16. A dual-lateral horizontal<br />
Bakken discovery 4.5 miles east-southeast,<br />
the #44-7H Miller in Section 7-162n-95w,<br />
showed an initial potential of 140 bbl. of oil,<br />
130,000 cu. ft. of gas <strong>and</strong> 125 bbl. of water<br />
a day.<br />
International<br />
BP has made its ninth discovery on Angola’s<br />
deepwater Block 31. The Hebe-1 was<br />
drilled in 2,008 meters of water to a depth of<br />
4,823 meters <strong>and</strong> tested at a maximum rate<br />
of 5,956 barrels of oil per day. The well is 16<br />
kilometers southwest of the Ceres discovery<br />
made earlier this year. BP operates Block 31<br />
<strong>and</strong> holds a 26.67% interest. Its partners are<br />
ExxonMobil, with 25%; Statoil, 13.33%;<br />
Marathon, 10%; <strong>and</strong> Total, 5%.<br />
Block 31 encompasses approximately<br />
5,000 square kilometers in the Lower Congo<br />
Basin. Water depths are between 1,500 <strong>and</strong><br />
2,500 kilometers. Hebe may now be added<br />
to a project that will produce the Ceres,<br />
Palas, Astraea <strong>and</strong> Juno finds on the southeast<br />
portion of the block. The partners are<br />
also looking at a project for the northeast<br />
part of the block, encompassing the Plutao,<br />
Saturno, Marte <strong>and</strong> Venus discoveries.<br />
Angola currently produces about 1.2 million<br />
barrels of oil per day <strong>and</strong> ranks as the<br />
second-largest oil producer in sub-Saharan<br />
Africa. Since 1996, about 14 billion barrels<br />
of oil have been discovered in offshore<br />
blocks in Miocene <strong>and</strong> Oligocene turbidite<br />
sediments deposited by the Congo River.<br />
Husky Energy, operator of Exploration<br />
License 397, intends to drill two wells in<br />
2006 on the Central Mackenzie Valley block<br />
in the Northwest Territories, Canada. The<br />
block contains the Summit Creek B-44 discovery,<br />
which was drilled in 2004 to a depth<br />
of 3,063 meters <strong>and</strong> encountered a 180-<br />
meter hydrocarbon column. This past<br />
spring, the well was tested at a combined<br />
rate of 20 million cu. ft. of gas <strong>and</strong> 6,000 bbl.<br />
of light oil <strong>and</strong> condensate per day from two<br />
perforated intervals.<br />
The discovery, which lies about 100 kilometers<br />
south of Norman Wells, was the first<br />
find made in the Central Mackenzie Valley<br />
since 1920. Husky assumed operatorship of<br />
the block earlier this year; its partners in EL<br />
397 are Northrock Resources, EOG<br />
Resources, Pacific Rodera Energy Inc.<br />
<strong>and</strong> International Frontier Resources<br />
Corp. The group acquired 200 kilometers of<br />
2-D seismic on the license this summer, <strong>and</strong><br />
now plans to drill an appraisal well to the<br />
discovery <strong>and</strong> an exploration well on a separate<br />
undrilled prospect. Northrock, a subsidiary<br />
of Unocal Corp., drilled the Summit<br />
Creek discovery well.<br />
Calgary-based EnCana Corp. <strong>and</strong> Oklahoma<br />
City-based Kerr-McGee Corp. have<br />
drilled a successful appraisal well to their<br />
Chinook discovery on their jointly held<br />
Block BM-C-7 in the southwestern part of<br />
the Campos Basin, Brazil. The 3-ENC-3-<br />
RJS well tested oil at a rate of 1,800 bbl. per<br />
day from the Cretaceous Carapebus formation,<br />
limited by the capacity of the test<br />
equipment. EnCana’s calculations show the<br />
well is capable of producing some 5,000 bbl.<br />
of oil per day. The appraisal, which was<br />
drilled about four kilometers southwest of<br />
the discovery, encountered about 34 meters<br />
of net pay. The partners plan another delineation<br />
well. The field offers potential<br />
resources between 100- <strong>and</strong> 200 million bbl.<br />
of oil.<br />
Petro Andina Resources of Calgary will<br />
initiate a $12-million exploration <strong>and</strong> pilot<br />
waterflood program on its properties in the<br />
Neuquen Basin, Argentina. The company<br />
has drilled eight shallow wells this year on<br />
the onshore CNQ-7A block in southern<br />
Mendoza province <strong>and</strong> plans up to 13 wells<br />
by year-end, according to Business News<br />
Americas. Petro Andina is the operator with<br />
a half-interest in the block shared with partner<br />
Repsol YPF. The Canadian company is<br />
acquiring additional properties in the basin.<br />
Chevron Corp. played an active part in the<br />
23rd U.K. Offshore Licensing Round as it<br />
picked up interests in blocks 205/2, 212/30,<br />
213/16 <strong>and</strong> 213/17, all near the company’s<br />
Rosebank/Lochnagar discovery some 126<br />
kilometers west of Shetl<strong>and</strong>. Chevron is<br />
operator on the blocks. The company also<br />
successfully bid on blocks 215/30, 216/27<br />
<strong>and</strong> 216/27 near the Capercaille prospect<br />
west of Shetl<strong>and</strong> <strong>and</strong> will be the operator on<br />
those blocks. Finally, it was top bidder for<br />
Block 13/22d in the Moray Firth south of the<br />
company’s Captain field. The company may<br />
have to delay drilling plans on the Rosebank/Lochnagar<br />
discovery while it tries to<br />
find an available rig in the tight North Sea<br />
market. Reserve estimates for the discovery<br />
have gone as high as 500 million bbl. of oil.<br />
Canada’s Nexen Inc. chalked up a small discovery<br />
in Block 15/18b in the U.K. North<br />
Sea, about 350 kilometers northeast of<br />
Aberdeen. The 15/18b-11 wildcat was<br />
drilled on its Yeoman prospect <strong>and</strong> encountered<br />
10 meters of gas pay <strong>and</strong> 16 meters of<br />
oil pay. During testing, the well flowed at<br />
rates up to 1,500 bbl. of oil equivalent per<br />
day. OMV, Paladin <strong>and</strong> <strong>Oil</strong>exco are Nexen’s<br />
partners in the venture.<br />
Norsk Hydro came up with a discovery on<br />
its deepwater Stetind prospect in Production<br />
License 283 in the Norwegian Sea, which<br />
includes blocks 6605/5, 6605/7, 6605/8,<br />
6605/9 <strong>and</strong> 6606/7. The wildcat was drilled<br />
in a very lightly explored area in 838 meters<br />
of water to Cretaceous s<strong>and</strong>s at 4,490<br />
meters. The company tested gas at a rate of<br />
4.2 million cu. ft. of gas per day. It plans<br />
appraisal wells to assess the discovery’s<br />
commercial potential. Hydro operates the<br />
find <strong>and</strong> owns a 30% interest. Its partners are<br />
Chevron, with 25%; ConocoPhillips, 25%;<br />
<strong>and</strong> Petoro, 20%.<br />
—Don Lyle, Rebecca Torellas <strong>and</strong><br />
Peggy Williams<br />
A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong> • 45
Companies in This Issue<br />
A<br />
A.P. Moller-Maersk A/S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27<br />
Abercrombie Energy LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43<br />
ABN Amro . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29, 30<br />
Acclaim Energy Trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15<br />
Acon Investments LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48<br />
Acorn <strong>Oil</strong> & <strong>Gas</strong> Ltd.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27, 28<br />
Acumen Capital Finance Partners Ltd.. . . . . . . . . . . . . . . 26, 37<br />
Alberta Energy Co. Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30<br />
Albrecht & Associates Inc. . . . . . . . . . . . . . . . . . . . . . 10, 15, 19<br />
Amerada Hess . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39<br />
American Energy Advisors . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
American <strong>Oil</strong> & <strong>Gas</strong> Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . 24, 30<br />
Anadarko Canada Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32<br />
Anadarko Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 4, 30<br />
Angle Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37<br />
Apache Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27, 28, 32, 39<br />
Arapahoe Energy Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37<br />
ATP <strong>Oil</strong> & <strong>Gas</strong> Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21, 39<br />
Aurora Energy Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21<br />
Australian <strong>Oil</strong> Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31<br />
Aventura Energy Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30<br />
Aztec <strong>Oil</strong> & <strong>Gas</strong> Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30<br />
B<br />
Bainbridge Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
Baker Hughes Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35, 39<br />
Bakerwell Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41<br />
Banks Petroleum Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
Baraka Petroleum Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31<br />
Baron <strong>Oil</strong> . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28<br />
Barrow-Shaver Resources Co. . . . . . . . . . . . . . . . . . . . . . . . . 42<br />
Baxter Bold & Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
Bear, Stearns & Co. Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36<br />
Benfield Corporate Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2<br />
Berry Petroleum Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29, 39<br />
Bettis Brothers LP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9<br />
BHP Billiton. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28<br />
Big Country Energy Services LP . . . . . . . . . . . . . . . . . . . . . . 34<br />
Bill Barrett Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29<br />
BJ Services Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35<br />
Black Dragon Resource Cos. Inc. . . . . . . . . . . . . . . . . . . . . . 21<br />
Black Gold <strong>Gas</strong> & <strong>Oil</strong> Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21<br />
Black Gold Trading LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . 9, 19<br />
Black River <strong>Oil</strong> Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41<br />
Black Stone Minerals Co. LP . . . . . . . . . . . . . . . . . . . . . . . . . . 9<br />
Blackmont Capital Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37<br />
Blackstone Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
BMO Nesbitt Burns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17<br />
BNP Paribas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25<br />
Bolder Investment Partners Ltd.. . . . . . . . . . . . . . . . . . . . . . . 37<br />
BP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32, 45<br />
BRI Consulting Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31<br />
Brigham Exploration Co.. . . . . . . . . . . . . . . . . . . . . . . . . . 37, 39<br />
Bronco Drilling Co. Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37<br />
Buckeye Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9<br />
Buckley & Boots . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
Burks <strong>Oil</strong> & <strong>Gas</strong> Properties Inc. . . . . . . . . . . . . . . 12, 13, 19, 29<br />
Burlington Resources . . . . . . . . . . . . . . . . . . . . 9, 21, 32, 38, 42<br />
C<br />
Cadence Resources Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . 21<br />
Cal Dive International Inc.. . . . . . . . . . . . . . . . . . . . . . 23, 34, 35<br />
Calpine Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35<br />
Calvalley Petroleum Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32<br />
Calyon Securities (USA) Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . 48<br />
Camcor Capital Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37<br />
Camden Resources Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24<br />
Canaccord Capital Corp. . . . . . . . . . . . . . . . . . . . . . . . . . 29, 37<br />
Canaccord Enermarket. . . . . . . . . . . . . . . . . . . . . . . . . . . 16, 29<br />
Canadian Natural Resources Ltd.. . . . . . . . . . . . . . . . . . . . . . 48<br />
Canadian Superior Energy Inc.. . . . . . . . . . . . . . . . . . . . . . . . 30<br />
Canary Resources Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30<br />
Canex Energy Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25<br />
Canyon Creek <strong>Oil</strong> & <strong>Gas</strong> Inc. . . . . . . . . . . . . . . . . . . . . . . . . . 21<br />
Canyon Technical Service . . . . . . . . . . . . . . . . . . . . . . . . . . . 37<br />
Cardinal Resources Plc . . . . . . . . . . . . . . . . . . . . . . . . . . 28, 30<br />
Carlyle Group/Riverstone Holdings . . . . . . . . . . . . . . . . . . . . 48<br />
Castle Energy Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22<br />
CB Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
CEC Energy Consultants . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
Center for International Energy <strong>and</strong> Environmental Policy. . . 31<br />
Centrica Plc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27<br />
Century Capital Management Ltd. . . . . . . . . . . . . . . . . . . . . . 31<br />
Challenger Capital Group Ltd. . . . . . . . . . . . . . . . . . . . . . . . . 29<br />
Chamaelo Exploration Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . 26<br />
Cherokee Energy Partners LLC . . . . . . . . . . . . . . . . . . . . . . . 37<br />
Chesapeake Energy Corp. . . . . . . . . . . . . . . . . 9, 21, 22, 37, 38<br />
Chesapeake Operating Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . 43<br />
Chevron Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9, 30, 39, 45<br />
Cheyenne Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34<br />
Chi Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9<br />
Chief <strong>Oil</strong> & <strong>Gas</strong> . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9<br />
China Petroleum <strong>and</strong> Chemical Corp. . . . . . . . . . . . . . . . . . . 28<br />
CIBC World Markets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
Cimarex Energy Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10, 34<br />
Cimarron Exploration Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10<br />
Cirrus Energy Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30<br />
Citation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10<br />
Citigroup . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29, 35, 36, 37, 38<br />
CNPC International Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28<br />
CNX <strong>Gas</strong> . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30<br />
Collins Barrow Securities Inc.. . . . . . . . . . . . . . . . . . . . . . . . . 16<br />
Colorado Utah Natural <strong>Gas</strong> Inc. . . . . . . . . . . . . . . . . . . . . . . . 31<br />
Columbia Natural Resources LLC . . . . . . . . . . . . . . . 21, 37, 38<br />
Compass Advisers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
Compass <strong>Oil</strong> & <strong>Gas</strong> LP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10<br />
Compton Petroleum Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . 38<br />
ConocoPhillips . . . . . . . . . . . . . . . . . . . . . . . . . . . 35, 38, 39, 45<br />
Continental Southern Resources . . . . . . . . . . . . . . . . . . . . . . . 4<br />
Continental Trend Resources Inc. . . . . . . . . . . . . . . . . . . . . . 42<br />
Cooper Cameron . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39<br />
Coplex Petroleo do Brasil Ltda. . . . . . . . . . . . . . . . . . . . . . . . 28<br />
Corridor Resources Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16<br />
Credit Suisse First Boston . . . . . . . . . . . . . . . . . . 21, 29, 35, 37<br />
D<br />
Dahlman Rose & Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37<br />
Danos & Curole Marine Contractors LLC. . . . . . . . . . . . . 34, 36<br />
David H. Arrington . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10<br />
Dee Drilling Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41<br />
Deep Gulf Energy LP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23<br />
Deep Resources Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38<br />
Deer Creek Energy Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30<br />
Dell Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35<br />
Delta Petroleum Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . 22, 39<br />
Denbury Resources Inc. . . . . . . . . . . . . . . . . . . . . . . . 32, 39, 41<br />
Denton Partners Ltd.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10<br />
Deutsche Bank Securities Inc. . . . . . . . . . . . . . . . . . . 30, 35, 37<br />
Devon Energy Corp. . . . . . . . . . . . . . . . . . . . . . . 4, 9, 30, 31, 39<br />
Diamond Offshore. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39<br />
Dillon Read & Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30<br />
Dominick & Dominick Securities Inc. . . . . . . . . . . . . . . . . . . . 37<br />
Dominion Exploration & Production Inc.. . . . . . . . . . . . . . . . . 10<br />
Dresdner Kleinwort Wasserstein. . . . . . . . . . . . . . . . . . . . . . . 30<br />
Dresser Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35<br />
Duna Resources Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15<br />
Duncan <strong>Oil</strong> Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42<br />
Dune Energy Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22<br />
E<br />
Eagle <strong>Oil</strong> & <strong>Gas</strong> Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10<br />
Edge Petroleum Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39<br />
EGPI Firecreek Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22<br />
El Paso Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30, 42, 48<br />
Empresa Nacional del Petróleo . . . . . . . . . . . . . . . . . . . . . . . 17<br />
EnCana Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30, 44, 45, 48<br />
Encon Services Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11<br />
Encore Acquisition Co. . . . . . . . . . . . . . . . . . . . . . . . . 24, 30, 38<br />
Endeavour International Corp. . . . . . . . . . . . . . . . . . . . . . . . . . 4<br />
EnDevCo Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22<br />
Enduring Resources LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44<br />
Energy Auction Place . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
Energy Capital Solutions LP . . . . . . . . . . . . . . . . . . . . . . . . . . 14<br />
Energy Exchange . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
Energy Listings LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19, 29<br />
Energy Resource Technology Inc. . . . . . . . . . . . . . . . . . . . . . 23<br />
Energy Spectrum Advisors Inc. . . . . . . . . . . . . . . . . . 11, 13, 19<br />
Energy Listings LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11, 19<br />
EnergyNet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9, 12, 16, 19, 29<br />
Enermarket Solutions Ltd. . . . . . . . . . . . . . . . . . . . . . . . . 19, 29<br />
Enron . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48<br />
Ensco International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1<br />
Ensley Properties Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
Entre Energy Partners LP . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11<br />
EOG Resources Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42, 45<br />
Ernst & Young Corporate Finance . . . . . . . . . . . . . . . . . . . . . 19<br />
Erskine Energy LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42<br />
Ervin Anderson & Co. JV . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
ESG Dubai . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31<br />
Eurogas Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37<br />
Exile Resources Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38<br />
Exxel Energy (USA) Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23<br />
Exxel Energy Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23<br />
ExxonMobil Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24, 31, 45<br />
F<br />
Fairfield Energy Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27, 28<br />
Ferris Baker Watts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30<br />
FEX LP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44<br />
Fidelity <strong>Investor</strong>s Management LLC . . . . . . . . . . . . . . . . . . . . 29<br />
Fidelity National Financial . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31<br />
FieldPoint Petroleum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39<br />
First Albany Capital Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29<br />
FirstEnergy Capital Corp. . . . . . . . . . . . . . . . . . . . . . . . . . 26, 48<br />
Forest <strong>Oil</strong> Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 3, 30, 48<br />
Forrest A. Garb & Associates Inc. . . . . . . . . . . . . . . . . . . . . . 31<br />
Foster <strong>Oil</strong> & <strong>Gas</strong> . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21<br />
Foundation Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
Friedman, Billings Ramsey . . . . . . . . . . . . . . . . . . . . . . . . 19, 37<br />
FX Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39<br />
G<br />
G1SG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30<br />
Gaffney, Cline & Associates . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
<strong>Gas</strong>co Energy Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30<br />
<strong>Gas</strong>tar Exploration Ltd.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22<br />
<strong>Gas</strong>Tech Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11<br />
Geocan Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30<br />
Geodominion Petroleum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42<br />
Geoinvest Ltd.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28<br />
Global Environmental Energy Corp. . . . . . . . . . . . . . . . . . . . . 28<br />
GMP Securities Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26, 37<br />
GMX Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30<br />
Golden Apple <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong> Inc. . . . . . . . . . . . . . . . . . . . . . . . . 26<br />
Golden Petroleum Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41<br />
Goldman, Sachs <strong>and</strong> Co. . . . . . . . . . . . . . . . . . . . . . . 28, 36, 37<br />
Goldnev Resources Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38<br />
Goldstrike Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32<br />
Gran Tierra Energy Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32<br />
Graves & Co.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
Greater Sooner Exploration Inc. . . . . . . . . . . . . . . . . . . . . . . . 23<br />
Greenhill Capital Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
Griffis & Associates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
Grizzly Resources Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16<br />
Growth Capital Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
GT International Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
H<br />
Halliburton. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30, 39<br />
Hanna <strong>Oil</strong> & <strong>Gas</strong> Co.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43<br />
Hares Group Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28, 30<br />
Harrison Lovegrove LP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
Haywood Securities Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . 17, 37<br />
Headington <strong>Oil</strong> LP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44<br />
Helix Energy Ltd.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35<br />
Hercules Offshore Inc. . . . . . . . . . . . . . . . . . . . . . . . . 34, 35, 37<br />
Hibernia Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25<br />
Highpine <strong>Oil</strong> & <strong>Gas</strong> Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48<br />
Holmes Exploration LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43<br />
Houlihan Lokey Howard & Zukin . . . . . . . . . . . . . . . . . . . . . . 27<br />
Houston Hispanic Chamber of Commerce . . . . . . . . . . . . . . 35<br />
Howard Weil Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29, 35, 37<br />
Husky Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45<br />
Hydril Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40<br />
I<br />
IAS Communications Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23<br />
IHS Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36, 37<br />
Imperial <strong>Oil</strong> Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16<br />
IndigoPool. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14, 16, 19<br />
Indocan Resources Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30<br />
Infinity Energy Res. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40<br />
Innova Exploration Ltd.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16<br />
International Frontier Resources Corp.. . . . . . . . . . . . . . . . . . 45<br />
Isramco Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23<br />
Ivanhoe Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37<br />
J<br />
Jade Energy Services Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . 37<br />
Jay Petroleum LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23<br />
JED <strong>Oil</strong> Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45<br />
Jefferies & Co. Inc. . . . . . . . . . . . . . . . . . . . . . . . . 19, 29, 36, 37<br />
Jennings Capital Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37, 38<br />
Jennison Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30<br />
JMG Exploration Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45<br />
JOG Capital Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37<br />
Johnson Rice & Co. LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37<br />
Jones & Keller PC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27<br />
JP Morgan Chase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36, 38<br />
J-W Operating Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11<br />
K<br />
K&M <strong>Oil</strong> Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12<br />
Kaiser-Francis <strong>Oil</strong> Co.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12<br />
Keeper Resources Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26<br />
Kern Energy Partners I Fund . . . . . . . . . . . . . . . . . . . 27, 28, 37<br />
Kerr-McGee Corp. . . . . . . . . . . 2, 14, 23, 24, 27, 28, 40, 43, 45<br />
Ketch Resources Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16<br />
KeyBanc Capital Markets . . . . . . . . . . . . . . . . . . . . . . . . . 36, 37<br />
Kidd Construction Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30<br />
Kilpatrick Energy Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31<br />
Kilrush Petroleum Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12<br />
King Win Laurel Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24<br />
Klabzuba <strong>Oil</strong> & <strong>Gas</strong> Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44<br />
Knightsbridge Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30<br />
Kobayashi Partners Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
Kootenay Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26, 38<br />
L<br />
Ladenburg Thalmann & Co. . . . . . . . . . . . . . . . . . . . . . . . . . . 30<br />
46 • A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong>
Companies in This Issue<br />
A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong> • 47<br />
Lamar <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong> Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12<br />
Lantana <strong>Oil</strong> & <strong>Gas</strong> Partners . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
Laredo NB Energy Advisors . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
Laurus Master Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38<br />
Ledge Resources Ltd.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16<br />
Lehman Brothers . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 9, 10, 22<br />
Lewis Energy Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34<br />
M<br />
MAB Resources LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24<br />
Macquarie Securities Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29<br />
Madison Energy Advisors . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 19<br />
Maersk Olie og <strong>Gas</strong> AS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27<br />
Magnum Hunter Resources . . . . . . . . . . . . . . . . . . . . . . . . . . 34<br />
Main Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12<br />
Makoil Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44<br />
Manti Operating Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42<br />
Marathon <strong>Oil</strong> . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40, 45<br />
Mariner Energy Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 48<br />
Marshall <strong>Oil</strong> Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43<br />
Maverick <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong> Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 24<br />
Maverick Tube Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38<br />
Meagher <strong>Oil</strong> & <strong>Gas</strong> Properties Inc.. . . . . . . . . . . . 11, 13, 15, 19<br />
Medallion Exploration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12<br />
Medora Resources Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37<br />
Merrill Lynch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27<br />
Metalmark Capital LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22<br />
Metrix Networks Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34<br />
MFC Drilling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41<br />
Mid-America Resources Corp. . . . . . . . . . . . . . . . . . . . . . . . . 12<br />
Miller Petroleum Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30<br />
Mitchell Energy Advisors . . . . . . . . . . . . . . . . . . . . . . . . . 19, 24<br />
Morgan Joseph & Co.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30<br />
Morgan Stanley. . . . . . . . . . . . . . . . . . . . . . . . . . . 21, 22, 36, 37<br />
Moyes & Co. Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
Mullen Group Income Fund . . . . . . . . . . . . . . . . . . . . . . . . . . 34<br />
Munich Re. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2<br />
Murphy <strong>Oil</strong>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40<br />
Muskegon Development Co. . . . . . . . . . . . . . . . . . . . . . . . . . 41<br />
Mystique Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30, 38<br />
N<br />
Nabors Industries Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34<br />
Naftex Energy Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28<br />
Naftogaz Ukraine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28<br />
Nemours Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15<br />
Ness Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23<br />
New Century Energy Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . 24<br />
Newport <strong>Oil</strong> Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22<br />
Nexen Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45<br />
Noble Drilling Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35, 40<br />
Noble Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30<br />
Nord <strong>Oil</strong> International Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 31<br />
Nordic <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong> Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38<br />
Norsk Hydro . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45<br />
North Sea New Ventures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4<br />
Northpoint Energy Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16<br />
Northrock Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45<br />
NQL Energy Services Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 38<br />
Nunez <strong>Oil</strong> Field Pipe Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34<br />
O<br />
Ocean Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4<br />
Octagon Capital Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37<br />
Odyssey Investment Partners LLC . . . . . . . . . . . . . . . . . . . . . 35<br />
Oelze Equipment Co. LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . 41<br />
Offshore Logistics Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35<br />
<strong>Oil</strong> & <strong>Gas</strong> Journal Exchange . . . . . . . . . . . . . . . . . . . . . . . . . . 29<br />
<strong>Oil</strong>exchange.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
<strong>Oil</strong>exco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45<br />
<strong>Oil</strong>Properties.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
OMV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45<br />
Orion Energy Resources LLC . . . . . . . . . . . . . . . . . . . . . . . . . 13<br />
Orion Securities Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37<br />
Osborn Energy LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30<br />
Overseas Private Investment Corp. . . . . . . . . . . . . . . . . . . . . 30<br />
P<br />
Pacific Rodera Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . 45<br />
Paladin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45<br />
PanCanadian Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30<br />
PanTerra Resource Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37<br />
Parallel Petroleum Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24<br />
Parker Drilling Co.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35<br />
Parks Paton Hoepfl & Brown . . . . . . . . . . . . . . . . . . . . . . . . . 34<br />
Patch Point Enterprises Ltd.. . . . . . . . . . . . . . . . . . . . . . . . . . 34<br />
Patterson-UTI Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . 35<br />
Pe Ben <strong>Oil</strong>field Services Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . 34<br />
Penn West Petroleum Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . 17<br />
Petoro . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45<br />
Petrie Parkman & Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19, 27<br />
Petro Andina Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45<br />
PetroAdvisor SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
PetroGrowth Advisors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
Petrogulf Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44<br />
PetroKazakhstan Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28<br />
Petrol Industries Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21<br />
Petrol <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31, 38<br />
Petroleum <strong>Oil</strong> & <strong>Gas</strong> Espana SA. . . . . . . . . . . . . . . . . . . . . . . 17<br />
Petrolifera Petroleum Ltd.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 37<br />
PetroSales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12, 13, 17, 19<br />
Petrosearch Energy Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . 24<br />
Phoenix Associates L<strong>and</strong> Syndicate . . . . . . . . . . . . . . . . . . . 24<br />
Pioneer Natural Resources. . . . . . . . . . . . . . . . . . . 2, 13, 17, 31<br />
Pioneer <strong>Oil</strong> Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41<br />
Piper Jaffray & Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36, 37<br />
PLS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10, 19, 29<br />
Pogo Producing Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31<br />
Prairie Schooner Petroleum Ltd. . . . . . . . . . . . . . . . . . . . . . . 48<br />
Precision Drilling Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35<br />
Premium Drilling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35<br />
Premium Petroleum Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31<br />
Pride International. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40<br />
Primexx Energy Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13<br />
Producers <strong>Oil</strong>field Services Inc. . . . . . . . . . . . . . . . . . . . . 34, 35<br />
Profico Energy Management Ltd.. . . . . . . . . . . . . . . . . . . . . . 17<br />
Provident Energy Trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32<br />
Public <strong>Gas</strong> Partners Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24<br />
Purcell Energy Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48<br />
Q<br />
Queiroz Galvao Perfuracao SA . . . . . . . . . . . . . . . . . . . . . . . . 28<br />
Quest Resource Corp. . . . . . . . . . . . . . . . . . . . . . . . . 32, 37, 40<br />
Questar <strong>Gas</strong> Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29<br />
Quinduno Energy LLC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24<br />
R<br />
R. Robinson Transport Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . 35<br />
Rampart Petroleum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34<br />
R<strong>and</strong>all & Dewey. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13, 19, 29<br />
Range Resources Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . 32, 40<br />
Raptor Capital Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38<br />
Raymond James Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35, 37<br />
RBC Capital Markets . . . . . . . . . . . . . . . . . . . . . . . . . 29, 36, 37<br />
Red Oak Energy Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43<br />
RedStar <strong>Oil</strong> & <strong>Gas</strong> Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37<br />
Reef Energy Resources LLC. . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
Reef <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong> Partners LLC . . . . . . . . . . . . . . . . . . . . . . . 13<br />
Relentless Energy Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26<br />
Remington <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40<br />
Repsol YPF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45<br />
Resource Capital Partners Inc.. . . . . . . . . . . . . . . . . . . . . . . . 37<br />
Richardson Barr & Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
Riviera Energy Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . 9, 10, 19<br />
Rivington Capital Advisors LLC . . . . . . . . . . . . . . . . . . . . . . . 25<br />
RK Petroleum Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41<br />
Rolling Thunder Exploration Ltd. . . . . . . . . . . . . . . . . . . . . . . 26<br />
Rowan Cos. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1<br />
Royal Dutch/Shell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9, 14, 32<br />
Rudis Drilling Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28<br />
S<br />
Sahara Petroleum Exploration Corp. . . . . . . . . . . . . . . . . . . . 28<br />
Salman Partners Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37<br />
Samson Canada Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17<br />
San Telmo Energy Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26<br />
Santos Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24, 27<br />
Saudi Aramco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31<br />
Sawtooth International Resources Inc.. . . . . . . . . . . . . . . . . . 17<br />
Sayer Securities Ltd. . . . . . . . . . . . . . . . . . . . 16, 17, 19, 26, 48<br />
Schlumberger Drilling Services. . . . . . . . . . . . . . . . . . . . . . . . 35<br />
Schlumberger Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36<br />
Scotia Waterous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9, 17, 19<br />
Scythian Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13<br />
SDX Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14<br />
Secutor Capital Management Corp.. . . . . . . . . . . . . . . . . . . . 38<br />
Seeco Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43<br />
SGAM/4D Global Energy Development Capital Fund . . . 27, 28<br />
Simmons & Co. International . . . . . . . . . . . . . . . . . . . 35, 37, 48<br />
Simplex Energy Solutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
Sinopec Shengli <strong>Oil</strong>field Co. Ltd. . . . . . . . . . . . . . . . . . . . . . . 28<br />
Sipetrol SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17<br />
Skadden, Arps, Slate, Meagher & Flom LLP . . . . . . . . . . . . . 27<br />
Skipping Stone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
Sky Petroleum Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31<br />
Slough Estates USA Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27<br />
Smith International Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34<br />
Smith Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34<br />
Solex Exploration Ltd.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17<br />
Sonoran Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . 28, 31, 37<br />
Southeast Transmission & Compression Co. Inc. . . . . . . . . . 17<br />
Southwestern Energy Co.. . . . . . . . . . . . . . . . . . . . . . . . . 32, 43<br />
SPA Drilling LP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36<br />
Sprott Securities Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26<br />
St. Mary L<strong>and</strong> & Exploration. . . . . . . . . . . . . . . . . . . . . . . . . . 40<br />
St<strong>and</strong>ard & Poor’s . . . . . . . . . . . . . . . . . . . . . . . . . 3, 14, 21, 22<br />
St<strong>and</strong>ard Bank Plc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22<br />
StarPoint Energy Trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15<br />
Statoil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45<br />
Stellar Energy Advisors Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
Stifel, Nicolaus & Co. Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29<br />
Stolt Offshore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34<br />
Stone Energy Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 40<br />
Storm Cat Energy Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37<br />
Strata <strong>Oil</strong> & <strong>Gas</strong> Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31<br />
Stroud Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31, 37<br />
Supply-Rite Transport Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . 35<br />
Swift Energy Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31<br />
T<br />
Talisman Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . 28, 32, 44<br />
T-Bar-X . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21<br />
TD Securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17<br />
Temple Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26<br />
Terax Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31<br />
Tesoro Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31, 34, 38<br />
Teton Energy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40<br />
Texas American Resources Co. . . . . . . . . . . . . . . . . . . . . . . . 24<br />
The Abraham Group LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32<br />
The Dillard Anderson Group . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
The Houston Exploration Co. . . . . . . . . . . . . . . . . . . . . 2, 14, 23<br />
The <strong>Oil</strong> & <strong>Gas</strong> Asset Clearinghouse . . . . . . . . . 9, 10, 12, 13, 19<br />
The <strong>Oil</strong> Auction.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
The Scotia Group Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
The Williams Cos. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9, 15<br />
The X-Change Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25<br />
Thornton Drilling Co.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36<br />
Tipperary Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24, 27<br />
Titan Exploration Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32<br />
Tiverton Petroleums Ltd.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17<br />
TKE Energy Trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26, 31<br />
Todco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1<br />
Tong Specialty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34<br />
Tortoise North American Energy Corp. . . . . . . . . . . . . . . . . . 29<br />
Total SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28, 45<br />
Tournament Energy Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26<br />
Transocean . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40, 48<br />
Triana Energy Holdings LLC . . . . . . . . . . . . . . . . . . . . . . . . . . 21<br />
Triangle Petroleum Corp. . . . . . . . . . . . . . . . . . . . . . . . . . 28, 31<br />
Tristone Capital . . . . . . . . . . . . . . . . . . . . 10, 11, 15, 17, 19, 26<br />
Tri-Valley <strong>Oil</strong> & <strong>Gas</strong> Co. . . . . . . . . . . . . . . . . . . . . . . . . . . 31, 34<br />
True Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26<br />
True Energy Trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26<br />
Tuscany Energy Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26<br />
Tusk Energy Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31<br />
U<br />
UBS Investment Bank . . . . . . . . . . . . . . . . . . . . . . . . 29, 36, 37<br />
Ukrgazvydobuvannya . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28<br />
Ultra Petroleum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40<br />
Union Bank of California NA. . . . . . . . . . . . . . . . . . . . . . . . . . 25<br />
Union Drilling Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36<br />
Union Securities Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38<br />
Unit Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25<br />
Unit Petroleum Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25<br />
Universal Property Development <strong>and</strong> Acquisition Corp. . . . . 21<br />
Unocal Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28, 30, 45<br />
Upstream Advisors LP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
US Enercorp Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24<br />
Usibelli Coal Mine Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44<br />
Ute Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28<br />
V<br />
Vaquero Energy Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48<br />
Veritas DGC Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35<br />
Vero Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26<br />
Vinoble Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25<br />
Vista Resources Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17<br />
Voyager Partners Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22<br />
W<br />
Wachovia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14, 19<br />
Walter <strong>Oil</strong> & <strong>Gas</strong> Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42<br />
Warburg Pincus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27, 28<br />
Ward Petroleum Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43<br />
Warren Resources Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30<br />
Weisser, Johnson & Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
Wells Fargo Energy Advisors . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
Wentworth Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25<br />
Western <strong>Gas</strong> Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40<br />
Will-Drill Resources Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15<br />
Winwell Resources Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15<br />
Wolverton Securities Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37<br />
X<br />
XTO Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9, 31, 40<br />
Y<br />
Yankuang Group Co. Ltd.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 28<br />
Yates Petroleum Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43<br />
Z<br />
Ziff Energy Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32<br />
Zion <strong>Oil</strong> & <strong>Gas</strong> Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31, 38
A&D Marketplace<br />
Notes<br />
(Cont. from p. 1) per day; a Gorilla to El Paso Corp. at $170,000 per<br />
day; <strong>and</strong> another jackup at $165,000 per day for six months <strong>and</strong><br />
$170,000 thereafter. North Sea dayrates are more than $200,000.<br />
Transocean Inc. has signed one drillship at $475,000 a day <strong>and</strong><br />
another at $425,000 a day, according to a Calyon Securities (USA)<br />
Inc. report.<br />
Peak oil. There are three types of oil <strong>and</strong> gas reserves today, Matt<br />
Simmons, chairman of Simmons & Co. International, said at the<br />
annual IPAA meeting in Houston. “The proven conventional, the<br />
proven unconventional <strong>and</strong> the ‘conceptual’ reserves—they’re not<br />
found yet but we’re sure they’re there. There are way too many longterm<br />
[supply] models banking on conceptual reserves.”<br />
He added that “natural gas is going to be the next big surprise.<br />
Too many areas have already passed the peak <strong>and</strong> not enough str<strong>and</strong>ed<br />
gas has been discovered. <strong>Gas</strong> depletes much faster than oil.”<br />
Canadian gas. During the past four years, Western Canada’s top gas<br />
wells were almost all found in the Canadian Rockies in thick, fractured,<br />
high-pressure reservoirs, Calgary-based FirstEnergy Capital<br />
Corp. reports.<br />
Canadian Natural Resources Ltd. led all the explorers in 2001-<br />
04 with 28 high-volume wells. EnCana Corp. ranked second, with<br />
10. EnCana also holds the distinction of bringing the most gas<br />
onstream in Western Canada: during 2004, it added nearly 1 billion<br />
cubic feet of new daily production.<br />
Junior M&A. Several Canadian juniors in <strong>2005</strong> went straight from<br />
IPO to M&A, reports Calgary-based Sayer Securities Ltd. For<br />
example, a day after its IPO, Highpine <strong>Oil</strong> & <strong>Gas</strong> Ltd. announced<br />
that it would acquire Vaquero Energy Ltd. And, since its IPO,<br />
Prairie Schooner Petroleum Ltd. has announced four acquisitions,<br />
including the purchase of Purcell Energy Ltd.<br />
At<br />
Closing<br />
Houston-based, Gulf of Mexico-focused<br />
Mariner Energy Inc.’s story is kind of<br />
like the Yellow Brick Road, says chairman<br />
<strong>and</strong> chief executive Scott Josey. “It<br />
starts out okay, it gets bad pretty fast, but<br />
it turns out well in the end. It’s like being<br />
in the middle of a Salvador Dali painting.<br />
It’s surreal, but true.”<br />
Mariner’s 96% owner, Enron, was<br />
bankrupt, but Mariner was not. “Even though Mariner wasn’t<br />
bankrupt, it got treated like it was,” Josey told Houston Producers’<br />
Forum members at a recent program. “People were hesitant<br />
to do business with it <strong>and</strong> banks didn’t want to stay with it<br />
because they were the same banks that had significant exposure<br />
to Enron. Mariner was guilty by association.”<br />
Mariner did have good cash flow <strong>and</strong> healthy operations, <strong>and</strong><br />
the Enron situation helped it to develop strong discipline. “We<br />
had to learn to run the company on cash.”<br />
Mariner was bought out the Enron bankruptcy by private<br />
investors Carlyle Group/Riverstone Holdings <strong>and</strong> Acon<br />
Investments LLC in early 2004. This year, Mariner made a<br />
144(a) stock offering <strong>and</strong> plans to go public.<br />
At the time of the 144(a), Josey was contacted by Forest <strong>Oil</strong><br />
Corp., Denver, (NYSE: FST) about rolling Forest’s Gulf of<br />
Mexico assets into Mariner. “The whole transaction was their<br />
idea. They wanted to put their Gulf of Mexico business with us<br />
in exchange for stock. We’ll be getting assets that, in our view,<br />
are underexploited, people who know the assets, <strong>and</strong> cash flow.<br />
We plan to transform the assets from maintenance mode to<br />
growth mode.”<br />
In exchange for the Gulf business, Forest shareholders will<br />
gain a 42% equity interest in Mariner. Most of the Forest assets<br />
are where Mariner has operations.<br />
“This gives us a great real estate position to work in that would<br />
have been very expensive to buy,” Josey said. “We would have<br />
written a big check <strong>and</strong> acquired a lot of debt. We probably couldn’t<br />
have done it.”<br />
Josey acknowledges that the Gulf can be a difficult area in<br />
which to work. “The Gulf of Mexico can be a contrarian play, but<br />
we’re excited about it,” he said. “We’re also excited about the<br />
upcoming lease sales. Because of the Forest deal, we will be able<br />
to go after leases aggressively.”<br />
The deal with Forest was announced after Katrina <strong>and</strong> before<br />
Rita. “A friend of mine said to me, ‘It looks like God doesn’t like<br />
your deal,’” Josey said.<br />
“It’s kind of hard to do due diligence with God. In light of<br />
these hurricanes, I’ve been thinking about doing some animal<br />
sacrifices to make everything right again. I have some goats <strong>and</strong><br />
a fatted weenie dog I’m willing to offer up.”<br />
—Taryn Maxwell<br />
48 • A&D <strong>Watch</strong> • <strong>December</strong> <strong>2005</strong>
'<br />
Breaking News<br />
<strong>December</strong> <strong>2005</strong><br />
NORTH LOUISIANA:Rippy Energy Inc. has retained Madison<br />
Energy Advisors to sell certain assets in the Thorn Lake Field in<br />
North Louisiana’s Red River Parish.<br />
The sale includes a 100% working interest in these properties,<br />
which have behind-pipe <strong>and</strong> development-drilling opportunities.<br />
Additionally, the sale includes 8,390 gross (8,361 net) contiguous<br />
undeveloped acres <strong>and</strong> the potential for 135 drilling locations. Net<br />
production on the properties is 97% gas. For more information, contact<br />
Tim Sullivant, 713-963-6204.<br />
DENBURY: Denbury Resources Inc., Dallas, (NYSE: DNR)<br />
plans to acquire oil properties in Mississippi <strong>and</strong> Alabama for $250<br />
million. The acquisition is expected to close by the end of January.<br />
The purchase includes controlling interests in the Tinsley Field<br />
near Jackson, Miss.; the Citronelle Field in southwest Alabama; <strong>and</strong><br />
the South Cypress Creek Field in eastern Mississippi. All three fields<br />
are potential carbon-dioxide, tertiary-flood c<strong>and</strong>idates with reserve<br />
potential from the floods of approximately 60- to 75 million net barrels<br />
of oil equivalent.<br />
The acquisition also includes an eight-inch pipeline from the<br />
company’s Jackson Dome area to the Tinsley Field.<br />
Based on initial estimates, the properties have estimated conventional<br />
(non-CO2) proved reserves of 14.3 million barrels of oil<br />
equivalent. The fields have current production of approximately<br />
2,200 barrels of oil equivalent per day, increasing Denbury’s preliminary<br />
2006 production forecast to 37,000 barrels per day, a 24%<br />
increase from the <strong>2005</strong> estimated average production.<br />
Denbury will operate all three fields <strong>and</strong> own the majority of<br />
working interest. St<strong>and</strong>ard & Poor’s reports its BB/Stable/-- rating<br />
on Denbury will not be affected.<br />
ENERGEN: Energen Resources Corp., a subsidiary of Energen<br />
Corp., Birmingham, Ala., (NYSE: EGN) plans to acquire Permian<br />
Basin properties from Houston-based EnerVest Management<br />
Partners Ltd. for $168 million. Closing is expected by year-end.<br />
The properties include the North Westbrook Unit in Mitchell<br />
County, Texas, <strong>and</strong> two smaller fields nearby, <strong>and</strong> encompass<br />
approximately 15,000 gross acres. Proved reserves are approximately<br />
21.8 million barrels of oil equivalent (80% undeveloped, 90% oil)<br />
<strong>and</strong> probable total some 15 million barrels equivalent.<br />
Assuming future development costs of approximately $145 million<br />
on proved reserves <strong>and</strong> $80 million on probable reserves, the<br />
all-in acquisition cost is $10.62 per barrel ($1.77 per thous<strong>and</strong> cubic<br />
feet equivalent), Energen reports.<br />
The properties are 100% operated <strong>and</strong> have a more than 30-year<br />
reserve life. Production is estimated to be 500,000 barrels of oil<br />
equivalent in 2006. Energen has entered hedge contracts on the oil<br />
comparable to approximately 85% of the acquisition’s total estimated<br />
proved production for 2006 through 2009. Energen plans to use<br />
cash <strong>and</strong> existing credit lines to finance the purchase.<br />
NOBLE: Noble Royalties Inc., Dallas, has closed the acquisition of<br />
a royalty asset for $91 million. The acquisition was made through<br />
Teal Royalties LLC, a wholly owned subsidiary of Noble. The seller<br />
was not disclosed.<br />
The acquisition allows Noble to exp<strong>and</strong> its positions in the<br />
Midcontinent <strong>and</strong> Permian Basin, <strong>and</strong> includes a minimum of<br />
519,700 gross acres <strong>and</strong> 4,434 wells in 22 states <strong>and</strong> 220 counties.<br />
SWIFT: Swift Energy Co., Houston, (NYSE: SFY) has closed the<br />
acquisition of interests in South Bearhead Creek Field in Beauregard<br />
Parish, La., for approximately $24.3 million. The purchase was funded<br />
with current cash flow.<br />
Swift Energy acquired a 100% working interest in the operated<br />
wells in the field <strong>and</strong> a 25% working interest in certain nonoperated<br />
wells. Proved reserves are approximately 3.6 million barrels of oil<br />
equivalent, giving the properties an all-in acquisition cost of $2.19<br />
per thous<strong>and</strong> cubic feet equivalent. Current production is less than<br />
160 barrels of oil equivalent per day (90% oil) net to the purchased<br />
working interests.<br />
Terry Swift, Swift chief executive, says the acquisition provides<br />
Swift with additional opportunities to enhance value. “Over the next<br />
12-18 months, our technical teams will exploit <strong>and</strong> further quantify<br />
the hydrocarbon potential of this area. We will also continue to look<br />
at additional niche acquisition opportunities with a focus on the Gulf<br />
Coast region.”<br />
DUNE: Dune Energy Inc., Houston, (Amex: DNE) has acquired an<br />
undivided interest in certain leases on approximately 320 acres in<br />
Denton County, Texas, <strong>and</strong> an undivided interest in four producing<br />
wells for $5.4 million from an undisclosed party. The acquired wells<br />
produce some 600,000 cubic feet of gas per day.<br />
© <strong>2005</strong> by Hart Energy Publishing LP. Federal copyright law prohibits unauthorized reproduction by any means <strong>and</strong> imposes fines of up to $100,000 for violations.
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Profiles<br />
Who’s Who in E&P A&D<br />
<strong>December</strong> <strong>2005</strong><br />
The following are new or updated profiles of E&P company A&D team members. The complete directory, Who’s Who in E&P A&D <strong>2005</strong>, was published<br />
in September. For a copy of the directory, call 713-933-9325 Ext. 129. If you have a directory already, add this update to it. To be listed in the<br />
2006 directory, write to ndarbonne@hartenergy.com <strong>and</strong> a form will be provided.<br />
Bonanza Creek <strong>Oil</strong> Co LLC<br />
Gregory S. Craley, VP-Western Region<br />
P.O. Box 21974<br />
Bakersfield, CA 93380<br />
4900 California Ave., Ste 350B<br />
Bakersfield, CA 93309<br />
661-638-2730<br />
Direct: Ext. 215<br />
Fax: 661-638-2733<br />
gsc@bonanzacrk.com<br />
Previously with: Carneros Energy Inc.<br />
(204-05) VP-Engineer; Vintage Petroleum<br />
(2002-04) Acquisition Engr; Nuevo Energy<br />
Co. (1992-2002) Reservoir/Operations<br />
Engr<br />
Education: BS-Petroleum Engineering,<br />
Pennsylvania State University<br />
Area of focus: Rockies, California<br />
Sports: Golf, Hunting, Fishing<br />
Bonanza Creek <strong>Oil</strong> Co LLC<br />
Patrick A. Graham, SVP<br />
410 17th St., Ste 1380<br />
Denver, CO 80202<br />
720-279-2330<br />
Direct: Ext. 204<br />
Fax: 720-279-2331<br />
pag@bonanzacrk.com<br />
Previously with: Berry Petroleum Co.<br />
(1995-2001) Lead Acquisition Engr;<br />
Dowell-Schlumberger (1986-95) Sales<br />
Engineer<br />
Education: BS-Petroleum Engineering,<br />
Texas A&M<br />
Area of focus: Rockies, California<br />
Sports: Golf<br />
Bonanza Creek <strong>Oil</strong> Co LLC<br />
Gary A. Grove, Chief Operations Officer<br />
P.O. Box 21974<br />
Bakersfield, CA 93380<br />
4900 California Ave., Ste 350B<br />
Bakersfield, CA 93309<br />
661-638-2730<br />
Direct: Ext. 206<br />
Fax: 661-638-2733<br />
ggrove@bonanzacrk.com<br />
Previously with: Nuevo Energy (1996-<br />
2003) California Exploration Mgr; Unocal<br />
(1982-96) Sr. Petroleum Engr/Reservoir<br />
Engrg Coordinator<br />
Education: BS-Petroleum Engineering,<br />
Marietta College<br />
Area of focus: Rockies, California<br />
Sports: Golf, Taekwondo<br />
Bonanza Creek <strong>Oil</strong> Co LLC<br />
Michael R. Starzer, President<br />
P.O. Box 21974<br />
Bakersfield, CA 93380<br />
4900 California Ave., Ste 350B<br />
Bakersfield, CA 93309<br />
661-638-2730<br />
Direct: Ext. 208<br />
Fax: 661-638-2733<br />
mrs@bonanzacrk.com<br />
Previously with: Berry Petroleum Co.<br />
(1995-2001) VP, Corporate Dvlpmt;<br />
Unocal-California Business Unit (1993-95)<br />
Asset Team Leader, Coalinga, N. San<br />
Joaquin Area; State of California-State<br />
L<strong>and</strong>s Commission (1991-93) Statewide<br />
Reservoir Engr<br />
Education: B.S.-Petroleum Engineering,<br />
Colorado School of Mines; M.S.-<br />
Engineering Management, University of<br />
Alaska<br />
Area of focus: Rockies, California<br />
Sports: Golf, Tennis, Hunting, Fishing<br />
Coronado Resources LLC<br />
Mark D. Wilson, Pres & CEO<br />
8556 East 101 St., Ste C<br />
Tulsa, Okla. 74133<br />
918-369-4000<br />
Direct: 918-369-4060<br />
Fax: 918-369-4005<br />
mwilson@coronadoresources.com<br />
Previously with: The Williams Cos. (2000-<br />
04) Sr VP, Corp Dvlpmt & Planning; Koch<br />
Industries/Koch Petroleum Group (1997-<br />
2000) Sr VP/Mng Dir; Booz-Allen’s<br />
Hamilton (1995-07) Sr Associate<br />
Education: B.S. Chemical Engineering,<br />
Oklahoma State University; MBA, Harvard<br />
Graduate School of Business<br />
Administration<br />
Area of focus: Unconventional gas<br />
(Midcontinent <strong>and</strong> Eastern U.S.)<br />
To acquire in: Unconventional gas<br />
(Midcontinent <strong>and</strong> Eastern U.S.)<br />
Sports: Golf, Hunting, Fishing<br />
Hillwood Energy<br />
Mark Rollins, Mng Dir<br />
13600 Heritage Parkway, Ste 200<br />
Fort Worth, TX 76177<br />
817-224-6000<br />
Direct: 817-224-6031<br />
Fax: 817-224-6062<br />
mark.rollins@hillwood.com<br />
Previously with: PetroGrowth Advisors<br />
(<strong>2005</strong>) Mng Dir; KPMG Consulting (1997-<br />
<strong>2005</strong>) Sr Mgr<br />
Education: BS-Civil Engineering, Texas<br />
A&M; MBA, University of Texas-Austin<br />
To acquire in: Lower 48<br />
Sports: Golf, Tennis, Hunting, Fishing
Layne Energy Inc.<br />
Colin B. Kinley, President<br />
1900 Shawnee Mission Parkway<br />
Mission Woods, KS 66205<br />
913-748-3987<br />
Fax: 913-748-3970<br />
cbkinley@layneenergy.com<br />
Previously with: Layne Cristensen Co.<br />
(1995-2002) President, Energy Dvsn; Elgin<br />
Exploration Canada (1981-1995) President<br />
Education: Business, Calgary<br />
Area of focus: Midcontinent<br />
To acquire in: Midcontinent unconventional<br />
gas<br />
Mustang Fuel Corp.<br />
R<strong>and</strong> Phipps, SVP<br />
13439 Broadway Extension<br />
Oklahoma City, OK 73114-2202<br />
405-748-9400<br />
Direct: 405-748-9232<br />
Fax: 405-748-9420<br />
r<strong>and</strong>.phipps@mustangfuel.com<br />
Previously with: Samson Cos. (1987-<br />
1996); Mapco <strong>Oil</strong> & <strong>Gas</strong> (1983-87); Arco<br />
(1981-93)<br />
Education: JD, University of Nebraska;<br />
BS, University of Nebraska<br />
Area of focus: Midcontinent, onshore Gulf<br />
Coast, Rockies<br />
To acquire in: Midcontinent, onshore Gulf<br />
Coast, Rockies<br />
Sports: Golf, Biking, Travel<br />
TXOK Energy Resources Co.<br />
Kenneth D. Lovell , President<br />
100 W. Fifth St., Ste 1200<br />
Tulsa, OK 74103<br />
Direct: 918-588-7717<br />
Fax: 918-588-7773<br />
klovell@oneok.com<br />
Previously with: Oneok Energy Resources<br />
Co. (1982-<strong>2005</strong>) VP, Acquisitions &<br />
Exploration<br />
Education: JD, University of Tulsa College<br />
of Law; BA, Brigham Young University<br />
Area of focus: Midcontinent<br />
Winchester Energy Co./<br />
Winchester Production Co.<br />
Bob Deacy, President<br />
P.O. Box 1981<br />
Raleigh, N.C. 27602<br />
100 East Davie St.<br />
Raleigh, N.C. 27601<br />
919-546-4928<br />
Fax: 919-546-7480<br />
bob.deacy@pgnmail.com<br />
Education: B.S., Northeastern University<br />
Area of focus: ArkLaTex, Permian,<br />
Oklahoma<br />
To acquire in: ArkLaTex, Permian,<br />
Oklahoma<br />
Sports: Golf, Hunting, Fishing