CNOOC Limited, a subsidiary of China National Offshore Oil Corporation (CNOOC), the country's third largest oil company, announced a new deepwater gas discovery Tuesday.
The Liuhua (LH) 29-1 gas field was discovered by CNOOC Ltd's exploration partner Husky Oil China Limited, a wholly owned subsidiary of Husky Energy.
It was the third such deepwater discovery in the eastern South China Sea, following the discoveries of the Liwan (LW) 3-1 gas field in 2006 and the LH 34-2 field in December. All three discoveries were on the same block.
The gas well unveiled this time was located close to the previously discovered two deepwater gas fields. "LH 29-1 field will share the development and production facilities with LW 3-1 and LH 34-2," said an announcement posted on CNOOC's website.
The gas fields LW 3-1 and LH 34-2 will be developed in parallel. The LW 3-1 field is expected to see initial gas production in 2013, according to the announcement.
The deepwater gas discoveries will become indispensable gas resources in years to come given that common gas explorations are already saturated and their gas production is coming to the end of their lifespans, said Li Lingxuan of Zhuochuang Info. Co, an energy consulting firm.
Currently, deepwater is defined as waters from the seabed to the surface reaching a vertical distance of 300-500 meters.
The deepwater gas discoveries won't likely account for a large proportion of gas supply in the future, given their limited reserves, Li said.
Global verified gas reserves had recorded 183.66 trillion cubic meters as of January 1 this year, according to data collected by Zhuochuang Info. Co. That dwarfs the deepwater gas reserves.
The LH 29-1-1 well can expect daily gas production of 57 million cubic feet (1.61 million cubic meters), according to a drill stem test (DST) that provides data to estimate recoverable gas reserves, CNOOC said in the announcement. The gas production from LH 29-1- 1 largely equals that from the LH 34-2-1 well, which can produce 55 million cubic feet (1.56 million cubic meters) per day based on a DST, and the LW 3-1- 2, which can produce 53 cubic feet (1.50 million cubic meters) per day.
The LW 3-1 field is verified to have a gas reserve of between 100 billion and 150 billion cubic meters, with an annual production of 5-8 billion cubic meters. The gas reserve of LH 34-2 and LH 29-1 has not been published. Husky will appraise the LH 29-1 field later this year to further verify its reserves, said the CNOOC announcement.
Deepwater exploration is costly and worthwhile only if it proves more commercially valuable than exploration in shallow sea areas, Li said.
Coalbed gas that is technologically feasible and much less costly will become a vital resource in the future, Li believes.
The other two national oil and gas giants, China National Petroleum Corporation (CNPC) and China Petroleum and Chemical Corporation (Sinopec), both of which are reported to have been involved in deepwater exploration in the South China Sea, have not announced such discoveries.
CNOOC's moves in deepwater exploration won't likely have an influence on the other two oil giants in the foreseeable future, as CNOOC is less capable of oil refining and conducting mergers and acquisitions than CNPC and Sinopec, said Wang Gang, an oil and gas analyst with Great Wall Securities.
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Wednesday, February 10, 2010
Palliser Oil & Gas Corporation to Commence Trading on the TSX Venture Exchange
CALGARY, ALBERTA--(Marketwire - Feb. 9, 2010) - Palliser Oil & Gas Corporation ("Palliser" or the "Company") is pleased to announce the final receipt for its Non-Offering Prospectus was received February 2, 2010 and the Company's common shares will commence trading on the TSX Venture Exchange, at the market open, on February 10, 2010 under the symbol "PXL".
Palliser is a Calgary-based emerging junior oil and gas company with current production of approximately 450 boepd (80% oil). The Company is currently focused on high netback conventional heavy oil production in the greater Lloydminster area of both Alberta and Saskatchewan.
The management team of Palliser is led by Kevin J. Gibson, P.Geol., President & CEO, formerly President and Director of TSX listed Innova Exploration Ltd. Innova was sold to Crescent Point Energy Trust for $400 million ($7.55/share) plus assumption of bank debt in October 2007. Prior to Innova, Kevin was President and Director for TSX listed Western Star Exploration Ltd. The members of the Palliser senior management team each bring years of relevant experience in their respective fields as well as experience with high growth publicly listed oil and gas companies:
- Alan B. Carswell, P.Geol, VP Exploration - previously with NuVista Energy, Bonavista Petroleum and Canadian Natural Resources.
- Carrie L. McLauchlin, VP Finance & CFO - previously with Luke Energy, KeyWest Energy, KPMG
- Robert R. Padget, P.Eng., VP Engineering - previously with Great Plains Exploration, Seventh Energy, Encal Energy
- Glenn Taylor, VP Operations - previously with TransGlobe Energy, Western Star Exploration, Inverness Petroleum
- Gordon Timm, P.Land, VP Land. - previously with NuVista Energy, Signal Energy, Penn West Petroleum
The Board of Directors is comprised of Daryl S. Fridhandler, QC, Partner with Burnet Duckworth & Palmer LLP (Chairman); Kevin J. Gibson, President & CEO of Palliser; Wayne R. Toole, P.Eng, President of Silver Strand Energy; Ken Crowther, P.Eng., former President of Sproule Associates Ltd.; and Stephen C. Hayden, MBA LLB, Founder and Managing Director of Ivy Capital Partners.
Corporate Highlights:
- Current production of 450 boepd (80% conventional heavy oil). Based on favourable oil pricing and narrow differentials, Palliser's conventional heavy oil is receiving excellent field net backs ranging from $30 - $35 per bbl.
- 50,300 gross acres (40,200 net acres) of undeveloped land.
- Over 80 drilling/reactivation locations on existing acreage (75% oil prospects).
- 21.7 million basic shares outstanding (23.9 million diluted).
- Approximately $2 million of estimated net debt at December 31, 2009 and a credit facility of $3 million.
- Proved plus probable reserves of 1,424 mboe at December 31, 2009 (per an independent report prepared by GLJ Petroleum Consultants Ltd.) and $28.7 million net present value of proved plus probable reserves at a 10% discount before tax.
- 100% working interest and operatorship in oil properties and prospects.
[via]
Palliser is a Calgary-based emerging junior oil and gas company with current production of approximately 450 boepd (80% oil). The Company is currently focused on high netback conventional heavy oil production in the greater Lloydminster area of both Alberta and Saskatchewan.
The management team of Palliser is led by Kevin J. Gibson, P.Geol., President & CEO, formerly President and Director of TSX listed Innova Exploration Ltd. Innova was sold to Crescent Point Energy Trust for $400 million ($7.55/share) plus assumption of bank debt in October 2007. Prior to Innova, Kevin was President and Director for TSX listed Western Star Exploration Ltd. The members of the Palliser senior management team each bring years of relevant experience in their respective fields as well as experience with high growth publicly listed oil and gas companies:
- Alan B. Carswell, P.Geol, VP Exploration - previously with NuVista Energy, Bonavista Petroleum and Canadian Natural Resources.
- Carrie L. McLauchlin, VP Finance & CFO - previously with Luke Energy, KeyWest Energy, KPMG
- Robert R. Padget, P.Eng., VP Engineering - previously with Great Plains Exploration, Seventh Energy, Encal Energy
- Glenn Taylor, VP Operations - previously with TransGlobe Energy, Western Star Exploration, Inverness Petroleum
- Gordon Timm, P.Land, VP Land. - previously with NuVista Energy, Signal Energy, Penn West Petroleum
The Board of Directors is comprised of Daryl S. Fridhandler, QC, Partner with Burnet Duckworth & Palmer LLP (Chairman); Kevin J. Gibson, President & CEO of Palliser; Wayne R. Toole, P.Eng, President of Silver Strand Energy; Ken Crowther, P.Eng., former President of Sproule Associates Ltd.; and Stephen C. Hayden, MBA LLB, Founder and Managing Director of Ivy Capital Partners.
Corporate Highlights:
- Current production of 450 boepd (80% conventional heavy oil). Based on favourable oil pricing and narrow differentials, Palliser's conventional heavy oil is receiving excellent field net backs ranging from $30 - $35 per bbl.
- 50,300 gross acres (40,200 net acres) of undeveloped land.
- Over 80 drilling/reactivation locations on existing acreage (75% oil prospects).
- 21.7 million basic shares outstanding (23.9 million diluted).
- Approximately $2 million of estimated net debt at December 31, 2009 and a credit facility of $3 million.
- Proved plus probable reserves of 1,424 mboe at December 31, 2009 (per an independent report prepared by GLJ Petroleum Consultants Ltd.) and $28.7 million net present value of proved plus probable reserves at a 10% discount before tax.
- 100% working interest and operatorship in oil properties and prospects.
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