GeoPetro Resources starts operations in Texas' Madisonville field

GeoPetro Resources reported that reworking and testing operations commenced in March 2014 in the Madisonville field, Madison County, Texas.

The Company initiated reworking and testing operations on the Ruby Magness #1 and the Angela Farris Fannin #1 wells in anticipation of restoring production in the Madisonville field. These two wells are expected to recommence production by mid-year 2014.

The Company owns a 100% working interest in certain leases in the Rodessa Formation interval within the Madisonville Field.The Company also owns a 100% interest in a natural gas treatment plant and related gas gathering pipelines and related facilities (collectively, the plant).The plant has a design capacity to treat 18 Mcf of natural gas per day.

The Company is currently conducting additional operations and work programs to restore its production from the Ruby Magness #1 and Angela Farris Fannin #1 wells. The Company also plans to further increase production in the Madisonville Field by performing workover operations in the Mitchell #1 and Wilson #1 wells in 2014.

Addressing the positive developments at the Madisonville Project, GeoPetro' s President and CEO, Stuart J. Doshi commented, "We are particularly pleased with the commencement of operations at Madisonville Field which represents a significant milestone for the Company.The recent strengthening of natural gas prices from the 10-year lows experienced over the previous two years provides us with an opportunity to position the Company to re-establish production and generate revenues and positive cash flow for the Company by not only bringing the Magness #1 and Fannin #1 wells online, but also further enhancing production by performing workovers at the Mitchell #1 and the Wilson #1 wells.Additionally, the Company continues to be focused on securing an industry partner to undertake the drilling of a deep well to test six highly prospective zones in the Madisonville Field.Our 3-D seismic shows a very attractive structural closure with a high potential for a major discovery."

The Madisonville Field has been a prolific producer of oil and natural gas.The Rodessa and shallower zones have to date produced in excess of 30 MMbbl of oil and 100 Bcf of natural gas.The six zones below the Rodessa Formation have potential recoverable reserves of approximately 1 Tcf of natural gas.

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Canada needs to push harder on Gateway pipeline, Alberta minister says

Canada’s federal government isn’t doing enough to build support for Enbridge Inc.’s proposed pipeline to ship crude from the oil sands to the nation’s Pacific coast, said Alberta Finance Minister Doug Horner.

“The federal government needs to step up here a little bit” to convince aboriginal groups and the general public that the Northern Gateway pipeline is in the nation’s interest, Horner said in an interview at Bloomberg headquarters in New York. “We’ve suggested to them that they may want to get involved.”

Opposition by aboriginal groups and environmentalists is clouding Canada’s plans to develop Alberta’s oil sands, home to the world’s third-largest recoverable crude reserves. Producers such as Royal Dutch Shell Plc and Total SA are counting on projects such as Northern Gateway and TransCanada Corp.’s Keystone XL to ease a transportation bottleneck that has suppressed the price of Canada’s heavy crude, costing the economy C$50 million ($46 million) a day, according to the Canadian Chamber of Commerce.

The federal government should make it clear the pipeline is of national economic importance, said Horner. “You have to remember that a lot of what we do in western Canada creates economic activity and jobs in eastern Canada,” he said.

Harper’s government must decide whether to approve Northern Gateway by June. A regulatory panel said in December the project could move ahead under certain conditions.

British Columbia, the country’s westernmost province, has said it will only back the project if it meets five conditions, including greater engagement with aboriginals and increased financial benefits for the province. Local communities say there’s too much risk and too little benefit to having an oil pipeline cross their region.

Canadian Finance Minister Joe Oliver, who was the country’s natural resources minister until last month, told reporters today the government is constrained in what it can say until the cabinet issues its decision.

Horner’s comments followed a speech by former Canadian prime minister Brian Mulroney in which he called for a “strong national commitment” to export the nation’s natural resources to markets around the world, in particular Asia.

“We cannot sit back, contemplating our collective navel and expect customers to knock on our door,” Mulroney said yesterday. “We have to demonstrate convincingly that we are capable of doing what is required to earn their confidence that we are a reliable, efficient source of supply.”

Horner said he’s “cautiously optimistic” the U.S. will approve TransCanada Corp.’s Keystone XL pipeline, which would link the oil sands to refineries along the Gulf Coast.

President Barack Obama’s administration is reviewing the route, which was first proposed in 2008.

“We are not just focused on Keystone,” Horner said. “We are looking at all three of the opportunities that are there today -- that’s east coast, west coast and to the south.”

Horner also said he is “seriously considering” running to succeed Alison Redford as leader of Alberta’s ruling Progressive Conservative Party. Redford stepped down last month amid questions about her expenses and leadership.

Horner is also speaking today to the Canadian Association of New York.

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CEPSA acquires a 30% stake in an exploratory block in Liberia

CEPSA has acquired a 30% stake in a hydrocarbon exploration block off the Liberian coast in West Africa. Block LB-10 is operated by Anadarko Liberia Block 10 Company, a wholly-owned subsidiary of Anadarko Petroleum headquartered in The Woodlands, Texas.

The farmout agreement provides, in part, that CEPSA will participate in the drilling of two exploratory wells before August 2016. The block is in a deepwater area, with depths of approximately between 1,000 and 2,000 m. Anadarko has extensive experience as an operator in this basin. Other companies with participation in the block are the London-based company Liberia Japan Petroleum and Spanish integrated Repsol.

This acquisition has enabled CEPSA to add to its offshore portfolio, which already includes two exploratory blocks in Brazil and one in Suriname and exploration and production blocks in Thailand and Malaysia.

The operation is part of CEPSA' s expansion strategy in exploration and production. It will also be an opportunity to increase our technical capacities in the high potential offshore area in West Africa.

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Statoil brings North Sea's Gudrun field on stream

Statoil and its partners, GDF SUEZ and OMV, have started production from the Gudrun oil and gas field in the North Sea.

"Gudrun is the first new Statoil-operated platform to come on stream on the Norwegian continental shelf since 2005. This is a red-letter day for the company," says Arne Sigve Nylund, Statoil' s executive V.P. for the Development and Production Norway business area.

The new field contributes to important production from the Norwegian shelf. Statoil expects to recover 184 million barrels of oil and gas (oil equivalent) from the field.

"Gudrun illustrates how we can maximize value creation and realize new projects on the Norwegian shelf by combining new field developments with existing pipelines and facilities," says Nylund.

The Gudrun investment decision was made during the financial crisis. When the plan for development and operation (PDO) was submitted in 2010, Gudrun was Statoil' s only mega-project (investments in excess of NOK 12 billion). Now Gudrun is the first in a long line of field developments operated by Statoil.

"We have delivered the Gudrun field on time and below the cost estimate in the PDO. Choosing a global strategy for Gudrun has contributed to reducing the costs," says Margareth Øvrum, head of the Technology, Projects and Drilling business area in Statoil.

Gudrun was discovered in 1975. It is a high temperature-high pressure field, and the need for new drilling technology was one of the reasons why these reserves were left in the bank for such a long time. Now Statoil also has available capacity in existing facilities and pipelines.

Oil and gas from Gudrun is sent to Sleipner, where it will be processed before the oil is sent on to KårstØ and the gas to Europe, all through existing pipelines tied in to Sleipner. This allows Statoil to benefit from previous investments made on the Norwegian shelf.

"The Gudrun concept is a win-win situation. By using existing infrastructure, the Gudrun development costs less and Sleipner gains an extra customer. Gudrun' s start-up came at the perfect time," Nylund explained. 

Modifications have also been carried out on Sleipner and at KårstØ as part of the Gudrun project.

Gudrun will be operated from Statoil' s offices at Vestre Svanholmen in Sandnes, and is the first new field Statoil operates from the Stavanger region since Sleipner in 1993.

"It' s good to see a new field joining the old giants - Statfjord, Snorre and Sleipner. Later on, Gina Krog will also come to Operations South. This field will also be tied in to Sleipner - yet another win-win situation," says Nylund.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Blockline and Associate Ltd Nigeria Ltd, online.