ConocoPhillips raises Eagle Ford resource estimate

ConocoPhillips has reaffirmed its objective to deliver double-digit returns annually to shareholders at its Analyst Meeting held at the New York Stock Exchange. Members of the company’s executive leadership team outlined ConocoPhillips’ goal to consistently deliver 3 to 5% compound annual growth in production and margins.
 
ConocoPhillips also highlighted its substantial U.S. unconventional position and announced an increase of its estimated resource base in the prolific Eagle Ford play. Based on its prime acreage position and technical knowledge, the company has increased its estimates from 1.8 billion to 2.5 billion bbl of oil in place. Production is also expected to increase from current volumes to more than 250,000 boed by 2017.
 
“ConocoPhillips’ wells in the Eagle Ford have the highest oil rates per well and are leading the industry in value. This is attributable not only to the fact that we are in the best part of the play, but also to our relentless focus on  technical innovation and drilling and completion cost efficiencies,” said Chairman and CEO Ryan Lance. “We are applying these benefits and efficiencies across our unconventional portfolio in the Bakken, Permian, Niobrara, Canada, and outside of North America. We believe our unconventional resource base is unmatched, particularly for a company our size."
 
“Beginning this year, we will be growing production and margins across our diverse asset base, and allocating 95% of our annual capital expenditures to growth projects and programs with margins that are higher than our average margin today. We believe we have the asset base, technical capability, world-class workforce and financial strength to deliver on our unique value proposition,” Lance added.
 
Since 2009, ConocoPhillips has added 6.7 billion boe of resources through a diverse and balanced exploration and appraisal portfolio of high-value opportunities. Among the high-quality prospects are four large U.S. Gulf of Mexico discoveries – Tiber, Gila, Shenandoah and Coronado. Further activity is targeting offshore prospects in Australia, Angola and Senegal; conventional exploration in Norway and Indonesia; and unconventional exploration in North America, Poland and Colombia.
 
In its first two years as an E&P company, ConocoPhillips generated proceeds of $12.4 billion from non-core asset sales, advanced new growth projects, achieved visible margin growth, accessed new organic growth opportunities, participated in successful deepwater Gulf of Mexico discoveries and maintained a strong dividend.
 
Over the next several years, ConocoPhillips plans to execute a disciplined capital program of approximately $16 billion per year and achieve the company’s organic reserve replacement target of more than 100%. The company expects to generate 3 to 5% compound annual production growth and margin growth from major development programs and projects already under way in the U.S. Lower 48, Canadian oil sands, UK and Norwegian North Sea, Malaysia and Australia.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Tolfem Investments Limited, online.

Cub Energy commences drilling of Olgovskoye-11 well

Cub Energy reports that the Olgovskoye-11 (O-11) development well has commenced drilling. The O-11 well is operated by KUB-Gas, a partially-owned subsidiary in which Cub has a 30% effective ownership interest through its 30% shareholding of Kubgas Holdings.
 
The O-11 well will be drilled as a step out to the O-9 well for the R30c zone in the Bashkirian and an appraisal of the O-15 well in the S6 zone of the Serpukhovian. The well is located approximately one km southeast of the company’s Olgovskoye-15 (O-15), which was drilled last year and began producing from the S6 in July 2013.
 
The well will be drilled with the KUB-Gas owned K-200 drilling rig and the company expects that both zones targeted in the O-11 will require fracture stimulation.The O-11 well is expected to take approximately 70 days to reach TD.
 
The company’s Olgovskoye field comprises approximately 43% of gross KUB-Gas production and is Cub’s second-highest producing field. Given the success last year in the Serpukhovian with the O-15, and the M-16 well on the Makeevskoye field, the company’s new exploration and development efforts have been expanded to include the deeper Serpukhovian targets.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Tolfem Investments Limited, online.

Aker Solutions wins subsea contract for Total's Kaombo project

Aker Solutions won a contract worth $234 bn from Total to provide a subsea production system for the Kaombo Block 32 development in Angola.

Aker Solutions will deliver 20 subsea manifolds and 65 vertical subsea wellsets. The order also includes associated controls as well as work-over and tie-in systems. The first deliveries are scheduled for the second quarter of 2015.

"This is a landmark contract and further strengthens an important relationship with a key partner," said Oyvind Eriksen, Executive Chairman of Aker Solutions."It' s a significant commercial achievement for our subsea business as well as an important strategic development in our expansion in Angola and the broader region."

Kaombo, one of the world' s largest subsea developments, is located in block 32 about 150 km off the coast of Angola.

Aker Solutions is committed to developing local content and project execution capabilities in Angola, where it employs about 130 people. The company has set up a JV with Prodiaman Oil Services, an Angolan company that will execute local content activities related to this and other future Aker Solutions subsea projects in Angola.

"I am delighted to be part of this significant project with Aker Solutions for Total," said Prodiaman' s president Pedro Godinho."I look forward to seeing that this project makes significant contributions to the education system through knowledge transfer and job creation in a high-tech industry, all for the benefit of Angola."

Aker Solutions has been in Angola since 1999.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Tolfem Investments Limited, online.