After a couple of recent acquisitions, Apache Corporation (NYSE:APA) has received new coverage from Credit Suisse, which started the company off with an "Outperform" rating. They also placed a price target of $120.00 on Apache.
Apache announced it will Mariner Energy for $2.7 billion, which will give them significant exposure to the deepwater Gulf of Mexico, where its presence has been minimal.
While not as important, the deal will expand an already strong position in the Permian Basin and shallow waters of the Gulf.
Devon Energy sold Apache its shallow water Gulf assets for $1 billion. That makes them the largest player in that area.
In another deal, Apache has acquired 254,000 net acres in the Anadarko Basin from Cordillera Energy Partners III LLC, for $2.85 billion.
All of this points to Apache being strongly positioned for future growth.
Showing posts with label Apache. Show all posts
Showing posts with label Apache. Show all posts
Friday, February 3, 2012
Friday, November 5, 2010
Halliburton (NYSE:HAL), Apache Corp (NYSE:APA), Chevron (NYSE:CVX) Up on Rising Oil Prices
Halliburton (NYSE:HAL), Apache Corp (NYSE:APA), Chevron (NYSE:CVX) were all moving up Thursday on the inflationary measures announced by the Federal Reserve through QE2, which pushed the overall commodity market up, along with companies within each sector, including the oil producers.
Commodity prices in general increased, including silver, which increased to over $26 an ounce. Gold prices surged to all-time record highs again, nearing the $1,400 an ounce mark. Aluminum increased to its highest levels since April, and silver went over $26 an ounce.
Light, sweet crude for December delivery settled the trading day up $1.80 a barrel on the New York Mercantile Exchange at $86.49.
Halliburton closed at $32.85 Thursday, rising $1.16, or 3.66 percent. Apache Corp surged to close at $107.79, gaining $5.21, or 5.08 percent. Chevron was up to $85.14 at the end of the trading session, rising by $2.44, or 2.95 percent.
Commodity prices in general increased, including silver, which increased to over $26 an ounce. Gold prices surged to all-time record highs again, nearing the $1,400 an ounce mark. Aluminum increased to its highest levels since April, and silver went over $26 an ounce.
Light, sweet crude for December delivery settled the trading day up $1.80 a barrel on the New York Mercantile Exchange at $86.49.
Halliburton closed at $32.85 Thursday, rising $1.16, or 3.66 percent. Apache Corp surged to close at $107.79, gaining $5.21, or 5.08 percent. Chevron was up to $85.14 at the end of the trading session, rising by $2.44, or 2.95 percent.
Apache (NYSE:APA) Soars as BP (NYSE:BP), Mariner (NYSE:ME) Expansion Deals Near Completion
Apache Corp. (NYSE:APA) closed the part of their deal with BP (NYSE:BP) for their oil and gas assets in Egypt, while are set to also close their acquisition of Mariner Energy Inc. (NYSE:ME) once shareholders vote on Wednesday on whether or not to approve the deal, which is valued at $2.6 billion.
The overall deal with BP was for $7 billion, including a variety of assets around the world.
Talking on their earnings call Thursday, Chief Executive Officer Steven Farris said, "The most important thing we face is how we allocate the cash flow that we have. That is key to taking advantage of what we bought. I think we have a truly formidable asset base now."
Company leaders said their major focus going forward will be to integrate the recent acquisitions into the operations of the company.
Profit for the most recent quarter rose to $778.3 million, or $2.12 a share, 76 percent over the $442 million, or $1.30 a share generated last year in the same quarter.
Earnings per share, even though solid, did significantly miss analysts' expectations of $2.24 a share.
The aggressive expansion and its near completion clouded out the miss by Apache, and share price soared by $5.21, closing at $107.79, a 5.08 percent increase.
The overall deal with BP was for $7 billion, including a variety of assets around the world.
Talking on their earnings call Thursday, Chief Executive Officer Steven Farris said, "The most important thing we face is how we allocate the cash flow that we have. That is key to taking advantage of what we bought. I think we have a truly formidable asset base now."
Company leaders said their major focus going forward will be to integrate the recent acquisitions into the operations of the company.
Profit for the most recent quarter rose to $778.3 million, or $2.12 a share, 76 percent over the $442 million, or $1.30 a share generated last year in the same quarter.
Earnings per share, even though solid, did significantly miss analysts' expectations of $2.24 a share.
The aggressive expansion and its near completion clouded out the miss by Apache, and share price soared by $5.21, closing at $107.79, a 5.08 percent increase.
Wednesday, October 27, 2010
BP (NYSE:BP), Conoco (NYSE:COP), Exxon (NYSE:XOM), Total (NYSE:TOT), Shell (NYSE:RDS-A), Apache (NYSE:APA) Land North Sea Licenses
Major oil companies like BP PLC (NYSE:BP), Royal Dutch Shell SA (NYSE:RDS-A), ConocoPhillips (NYSE:COP), ExxonMobil Corp. (NYSE:XOM), Total SA (NYSE:TOT) and Apache Corp. (NYSE:APA) were awarded gas and oil licenses by the British government to drill in the North Sea.
According the the government, 83 companies were awarded 144 licenses to drill for oil and gas in over 268 blocks in the region.
Although a lower number of licenses were awarded than the previous round of licensing in 2008, where 192 were offered, another 99 blocks entailing up to 45 licenses will be available after more research is done on them.
Oil production in British waters have dropped by about 5 percent annually since peaking in 1999 at 2.6 million barrels a day. In the next five years, even with an estimated 20 billion barrels of oil equivalent estimated to be left in the North Sea, production is expected to drop to about 1 million barrels a day.
In 2009-2010, 1.36 million barrels a day are being produced in British waters.
According the the government, 83 companies were awarded 144 licenses to drill for oil and gas in over 268 blocks in the region.
Although a lower number of licenses were awarded than the previous round of licensing in 2008, where 192 were offered, another 99 blocks entailing up to 45 licenses will be available after more research is done on them.
Oil production in British waters have dropped by about 5 percent annually since peaking in 1999 at 2.6 million barrels a day. In the next five years, even with an estimated 20 billion barrels of oil equivalent estimated to be left in the North Sea, production is expected to drop to about 1 million barrels a day.
In 2009-2010, 1.36 million barrels a day are being produced in British waters.
Wednesday, October 13, 2010
Catalysts for EOG Resources (NYSE:EOG), Anadarko (NYSE:APC), Apache (NYSE:APA) and EnCana (NYSE:ECA)
Potential near-term catalysts in the large cap oil & gas sector concerning results from Anadarko Petroleum's (NYSE:APC), Newfield Exploration (NYSE:NFX), Occidental Petroleum (NYSE:OXY), EnCana (NYSE:ECA), Newfield Exploration (NYSE:NFX), Range Resources (NYSE:RRC), Apache (NYSE:APA) and EOG Resources (NYSE:EOG) have been released by Barclays (NYSE:BCS).
Barclays said, "The Barclays Capital E&P Potential Catalyst Watch highlights potential market-moving events for companies we cover and addresses laterals across the sector. The E&P Potential Catalyst Watch is available on Barclays Capital Live under Tom Driscoll's bookshelf."
Notable potential catalysts: (1) Results from Anadarko Petroleum's exploration wells in Brazil and Mozambique, (2) Results form Newfield Exploration appraisal wells in the Maverick Basin (Eagleford shale) along with 3Q results, (3) 3Q Earnings reports next week: Occidental Petroleum, EnCana, Newfield Exploration, Range Resources ...We recommend oil-oriented Apache and MEG, as well as EOG Resources (our top pick) with its focus on liquids assets and attractive valuation."
Barclays said, "The Barclays Capital E&P Potential Catalyst Watch highlights potential market-moving events for companies we cover and addresses laterals across the sector. The E&P Potential Catalyst Watch is available on Barclays Capital Live under Tom Driscoll's bookshelf."
Notable potential catalysts: (1) Results from Anadarko Petroleum's exploration wells in Brazil and Mozambique, (2) Results form Newfield Exploration appraisal wells in the Maverick Basin (Eagleford shale) along with 3Q results, (3) 3Q Earnings reports next week: Occidental Petroleum, EnCana, Newfield Exploration, Range Resources ...We recommend oil-oriented Apache and MEG, as well as EOG Resources (our top pick) with its focus on liquids assets and attractive valuation."
Tuesday, October 12, 2010
BP (NYSE:BP) Closes Deal with Apache (NYSE:APA) for Canadian Assets
BP (NYSE:BP) and Apache Corp (NYSE:APA) have closed another part of the $7 billion deal where BP is divesting of assets in the Permian Basin, Egypt and Western Canada, this one being the Canadian assets held by the oil giant. They've already closed on the Texas Permian Basin assets.
The Canadian assets were valued at $3.25 billion, which entailed natural gas projects and some oil.
Proven oil reserves were 224 million barrels of oil equivalent, with production in the first half reaching 46,500 barrels of oil equivalent a day.
About 1.3 million net acres were part of the agreement, which included some unconventional oil and natural gas assets.
The Canadian division of Apache will take over operations on November 1.
BP is divesting of about $30 billion in assets to pay for liabilities connected to the Macondo Gulf of Mexico oil well disaster.
The Canadian assets were valued at $3.25 billion, which entailed natural gas projects and some oil.
Proven oil reserves were 224 million barrels of oil equivalent, with production in the first half reaching 46,500 barrels of oil equivalent a day.
About 1.3 million net acres were part of the agreement, which included some unconventional oil and natural gas assets.
The Canadian division of Apache will take over operations on November 1.
BP is divesting of about $30 billion in assets to pay for liabilities connected to the Macondo Gulf of Mexico oil well disaster.
Tuesday, September 7, 2010
BP (NYSE:BP) Raises Assets Sale Target to $40 Billion
With mounting liabilities, BP (NYSE:BP) has reportedly increased its asset sale target from about $30 billion to $40 billion, according to The Sunday Times newspaper.
There is a double-edge sword to the selling of assets by BP, as while they are raising capital to take care of immediate liabilities, they are losing production, which ultimately leads to loss of revenue and profits.
Estimates are after assets sales production will decrease by close to 8 percent. It's uncertain how much that'll increase with an additional $10 billion in asset sales added to the final amount, although if they're similar to estimates based on $30 billion, they could be as high a $11 to $12 billion in lost production, depending on the assets sold.
Although the former talks with Apache over the 26 percent stake BP has in the Prudhoe Bay oil field in Alaska, fell apart, reports are Apache (NYSE:APA)is back in talks again with BP about acquiring at least a portion of the asset, while Occidental Petroleum (NYSE:OXY) has also been named as a potential suitor.
There is a double-edge sword to the selling of assets by BP, as while they are raising capital to take care of immediate liabilities, they are losing production, which ultimately leads to loss of revenue and profits.
Estimates are after assets sales production will decrease by close to 8 percent. It's uncertain how much that'll increase with an additional $10 billion in asset sales added to the final amount, although if they're similar to estimates based on $30 billion, they could be as high a $11 to $12 billion in lost production, depending on the assets sold.
Although the former talks with Apache over the 26 percent stake BP has in the Prudhoe Bay oil field in Alaska, fell apart, reports are Apache (NYSE:APA)is back in talks again with BP about acquiring at least a portion of the asset, while Occidental Petroleum (NYSE:OXY) has also been named as a potential suitor.
Monday, August 2, 2010
BP (NYSE:BP) Seeks Rights To New Mexico Assets
There are two oil and gas companies which are suing BP (NYSE:BP) and Apache Corporation. With Regards to the rights to purchase almost $400 million of assets in New Mexico.
There are two pending transactions being disputed. Both properties in question were announced June 20th. The first is BP's sale of assets to Apache for $7 billion. The second is Concho Resources Incorporated purchase of Marbob Energy Corporation for $1.66 billion.
There are certain operating agreements in place for the properties which Concho has valued at $400 million. BP told Marbob that they had full plans to exercise their rights to the land, which will be turned over to Apache. Under the operating agreement, BP is required to give Marbob a purchase right notification which the company has failed to do.
Marbob and Concho have filed a lawsuit in New Mexico state court. They are seeking a judgement requiring BP to file the correct paperwork. When BP was questioned, they declined comment. Bill Mintz Apache spokesman stated that he believes that BP has exercised a valid preferential right. "We expect Marbob to deliver the property," said Mintz.
There are two pending transactions being disputed. Both properties in question were announced June 20th. The first is BP's sale of assets to Apache for $7 billion. The second is Concho Resources Incorporated purchase of Marbob Energy Corporation for $1.66 billion.
There are certain operating agreements in place for the properties which Concho has valued at $400 million. BP told Marbob that they had full plans to exercise their rights to the land, which will be turned over to Apache. Under the operating agreement, BP is required to give Marbob a purchase right notification which the company has failed to do.
Marbob and Concho have filed a lawsuit in New Mexico state court. They are seeking a judgement requiring BP to file the correct paperwork. When BP was questioned, they declined comment. Bill Mintz Apache spokesman stated that he believes that BP has exercised a valid preferential right. "We expect Marbob to deliver the property," said Mintz.
Friday, July 30, 2010
BP (NYSE:BP) Oil UPDATE: Static Kill Progress, Asset Sales
According to the soon to be CEO for BP (NYSE:BP), the company is planning on attempting the "static kill" operation on Tuesday. If successful it will seal the broken well. The the focus will turn to the relief well and permanently plugging it by the end of August.
The "static kill" process entails pumping heavy drilling mud followed by cement into the top of the Macondo well. The goal is to push a column of oil back into the reservoir almost three miles below the seafloor. Crews were installing a final pipe like casing into the well Thursday evening.
At a news conference in Mississippi, Dudley stated that BP is currently in the process of a $25 to $30 billion global asset sale. The Apace deal of $7 billion has also been agreed on. The sales are part of the company's plan to pay for the costs they've incurred from the massive oil leak that has spilled out over $200 million gallons of toxic crude.
The "static kill" process entails pumping heavy drilling mud followed by cement into the top of the Macondo well. The goal is to push a column of oil back into the reservoir almost three miles below the seafloor. Crews were installing a final pipe like casing into the well Thursday evening.
At a news conference in Mississippi, Dudley stated that BP is currently in the process of a $25 to $30 billion global asset sale. The Apace deal of $7 billion has also been agreed on. The sales are part of the company's plan to pay for the costs they've incurred from the massive oil leak that has spilled out over $200 million gallons of toxic crude.
Tuesday, July 27, 2010
BP (NYSE:BP) Doubling Assets to be Sold to Raise Cash
It seems everything is on the table now as BP (NYSE:BP) fights to raise enough cash to help pay for the mounting liabilities related to the Gulf of Mexico oil spill.
Originally they had announced the goal of selling about $10 billion in assets to handle the load, but they raised that projection Monday to about $20 billion.
Once thought untouchable, and among their choice assets - oil fields in the North Sea - could reportedly be put up for sale, with the French company Total eager to enlarge their presence in the region. It would also be an easy deal to do if BP decides to go in that direction.
Prudhoe Bay was almost sold to Apache (NYSE:APA), but that deal fell through, although Apache acquired other assets in a separate transaction.
With BP securing billions in credit from a number of different banks, it seems to imply they're wary of using that credit line to pay off liabilities, as it could put them in an even weaker position, and would be expensive to access.
However they do it, this does show BP is struggling to raise the needed capital to handle the situation, and will evidently become a much smaller and weaker company before it's all through.
This is important, as everyone knew they would be smaller before things were over, but assumed their top assets would remain under the company umbrella and be a foundation to build on in the future. That idea could very well fall apart if assets in the North Sea end up being sold.
Originally they had announced the goal of selling about $10 billion in assets to handle the load, but they raised that projection Monday to about $20 billion.
Once thought untouchable, and among their choice assets - oil fields in the North Sea - could reportedly be put up for sale, with the French company Total eager to enlarge their presence in the region. It would also be an easy deal to do if BP decides to go in that direction.
Prudhoe Bay was almost sold to Apache (NYSE:APA), but that deal fell through, although Apache acquired other assets in a separate transaction.
With BP securing billions in credit from a number of different banks, it seems to imply they're wary of using that credit line to pay off liabilities, as it could put them in an even weaker position, and would be expensive to access.
However they do it, this does show BP is struggling to raise the needed capital to handle the situation, and will evidently become a much smaller and weaker company before it's all through.
This is important, as everyone knew they would be smaller before things were over, but assumed their top assets would remain under the company umbrella and be a foundation to build on in the future. That idea could very well fall apart if assets in the North Sea end up being sold.
Wednesday, July 21, 2010
Dudley Replacing Hayward as BP (NYSE:BP) Chief
Tony Hayward, Chief Executive Officer is expected to step down from his position with BP (NYSE:BP) within the next two weeks, according to an anonymous source. The person most likely to replace him is Robert Dudley. The announcement of Hayward's successor isn't expected until August or September.
The leadership change is part of BP's strategy to rebuild their image, company, and reputation. Part of this process is raising money for the $20 billion fund by selling off some of their oil fields. The money raised will be used to compensate those in the Gulf Coast region. BP is making good strides in that direction with the agreement with Apache to sell $7 billion of their assets in North America and Egypt.
Hayward has gotten much criticism over public relation blunders. On May 30th he stated, I want my "life back." He took the job in 2007, promising a "laser like focus" on safety while boosting output and reducing expenses.
The leadership change is part of BP's strategy to rebuild their image, company, and reputation. Part of this process is raising money for the $20 billion fund by selling off some of their oil fields. The money raised will be used to compensate those in the Gulf Coast region. BP is making good strides in that direction with the agreement with Apache to sell $7 billion of their assets in North America and Egypt.
Hayward has gotten much criticism over public relation blunders. On May 30th he stated, I want my "life back." He took the job in 2007, promising a "laser like focus" on safety while boosting output and reducing expenses.
Tuesday, July 13, 2010
BP (NYSE:BP) Selling $289 Million In Assets
Amid all the speculation of who will buy BP's (NYSE:BP) assets, Magellan Midstream Partners LP is the front runner ready to purchase $289 million worth. They have agreed to buy some of BP's storage and pipeline assets.
Magellan Midstream says they feel this will help them in the developing of its terminal in East Houston into a main distribution point. They will be getting more than 100 miles of pipeline, including a stretch of 40 miles that goes as far as the Texas City, Texas refining region.
Magellan is in the process of constructing a 2 million barrel capacity for oil storage. They will purchase a total of $7.8 million barrels of storage capacity. It will be stored at a U.S. oil hub located in Cushing, Oklahoma.
The deal is expected to close within 60 days according to Magellan, and to add to their earning immediately. The other talk pending is between BP and Apache, if agreed upon Apache would purchase $10 billion of BP's assets.
Magellan Midstream says they feel this will help them in the developing of its terminal in East Houston into a main distribution point. They will be getting more than 100 miles of pipeline, including a stretch of 40 miles that goes as far as the Texas City, Texas refining region.
Magellan is in the process of constructing a 2 million barrel capacity for oil storage. They will purchase a total of $7.8 million barrels of storage capacity. It will be stored at a U.S. oil hub located in Cushing, Oklahoma.
The deal is expected to close within 60 days according to Magellan, and to add to their earning immediately. The other talk pending is between BP and Apache, if agreed upon Apache would purchase $10 billion of BP's assets.
Monday, July 12, 2010
BP (NYSE:BP): Share Prices, Oil Futures, Energy Stocks
Based on the optimism that Apache Corporation may purchase about $12 billion of BP's (NYSE:BP) assets, BP's shares saw another incline. BP's reasoning for this possible sale is to help raise $10 billion to help cover the cost from the devastating explosion and sinking of the Deepwater Horizon rig.
BP saw a 5.6 percent increase to $35.96, continuing last weeks surge of 13 percent. Even though it's reported that the BP bill has reached over $3.5 billion. This lift in stock prices has helped raise energy stocks across the board. Anadarko rose 2 percent to $46.43. In an emailed statement to Dow Jones Wires, John Christiansen, Anadarko's spokesman said, " We have notified BP that we are withholding reimbursements to BP at this time."
While Apache Corporation declined 2.2 percent to $85.95. An analysts from Tudor Pickering Holt said that if Apache were to continue ahead with their possible move, it would prove their track record of purchasing mature assets and wringing the profits from them. " APA made their company buying mature assets from majors and making them work stronger/harder/longer. So it shouldn't surprise if they are hunting BP's Prudhoe assets, as reported in various newspapers over the weekend," said the analyst from Tudor Pickering Holt.
The New York Stock Exchange Arca Oil Index rose 0.7 percent to 952. While The Philadelphia Oil Service Index increased 0.6 percent to 179. The New York Stock Exchange Arca Natural Gas Index inclined 0.3 percent to 511.
BP saw a 5.6 percent increase to $35.96, continuing last weeks surge of 13 percent. Even though it's reported that the BP bill has reached over $3.5 billion. This lift in stock prices has helped raise energy stocks across the board. Anadarko rose 2 percent to $46.43. In an emailed statement to Dow Jones Wires, John Christiansen, Anadarko's spokesman said, " We have notified BP that we are withholding reimbursements to BP at this time."
While Apache Corporation declined 2.2 percent to $85.95. An analysts from Tudor Pickering Holt said that if Apache were to continue ahead with their possible move, it would prove their track record of purchasing mature assets and wringing the profits from them. " APA made their company buying mature assets from majors and making them work stronger/harder/longer. So it shouldn't surprise if they are hunting BP's Prudhoe assets, as reported in various newspapers over the weekend," said the analyst from Tudor Pickering Holt.
The New York Stock Exchange Arca Oil Index rose 0.7 percent to 952. While The Philadelphia Oil Service Index increased 0.6 percent to 179. The New York Stock Exchange Arca Natural Gas Index inclined 0.3 percent to 511.
Friday, May 28, 2010
Citigroup (NYSE:C) On Gulf Lawsuits, Lobbying
While we hear a lot about BP (NYSE:BP) and Transocean (NYSE:RIG) in the Gulf oil crisis, there are a lot of oil companies who could have exposure to the fallout from the oil spill, which could result in some significant pressure in the months ahead, according to a Citigroup (NYSE:C) analyst.
The analyst said, In the Independent Oil & Gas industry, Anadarko (NYSE:APC), Apache (NYSE:APA), Newfield (NYSE:NFX), Nexen (NYSE: NXY) and Noble Energy (NYSE:NBL) have offshore Gulf of Mexico exposure. Of the US integrated oil industry, Chevron (NYSE:CVX) and Marathon (NYSE:MRO) have the highest level of activity taking place in the deep waters of the GOM. ExxonMobil (NYSE:XOM) and Hess (NYSE:HES) have limited exposure. Occidental Petroleum (NYSE:OXY) has zero exposure and is likely to benefit from the current environment."
Ultimately what some consider an over-response from the Obama administration, this could be devastating to the overall U.S. economy at a time when it continues to struggle to recover from the great recession.
The analyst said, In the Independent Oil & Gas industry, Anadarko (NYSE:APC), Apache (NYSE:APA), Newfield (NYSE:NFX), Nexen (NYSE: NXY) and Noble Energy (NYSE:NBL) have offshore Gulf of Mexico exposure. Of the US integrated oil industry, Chevron (NYSE:CVX) and Marathon (NYSE:MRO) have the highest level of activity taking place in the deep waters of the GOM. ExxonMobil (NYSE:XOM) and Hess (NYSE:HES) have limited exposure. Occidental Petroleum (NYSE:OXY) has zero exposure and is likely to benefit from the current environment."
Ultimately what some consider an over-response from the Obama administration, this could be devastating to the overall U.S. economy at a time when it continues to struggle to recover from the great recession.
Thursday, October 30, 2008
Sharon announces acquisition of oil and gas leases on the Eagleford Shale trend in Texas
CALGARY, Oct 30, 2008 /PRNewswire-FirstCall via COMTEX/ ----Sharon Energy Ltd. (TSXV:SHY) today reported that the Company has acquired, over the last three months, approximately 5,400 gross acres in the Eagleford Shale play, located in Texas. Sharon and its partner have 4,250 net acres. Sharon has a 50 % working interest in the net acres and is the Operator of the project.
Sharon's acreage is on trend with the recently announced gas discovery by Petrohawk Energy Corporation and a large development program, operated by Apache Corporation.
On October 21, 2008, Petrohawk announced the successful completion of the STS #241-1H well that had an initial production of 7.6 MMcfd and 250 Bbls condensate per day.
Apache's investor presentation, released on October 23, 2008, which can be found on Apache's web site, confirmed that it has an ongoing program to evaluate the play and had drilled and completed four horizontal oil wells to date, with initial production rates of 170 to 345 bopd.
Sharon's acreage has numerous existing wellbores which Sharon believes can be re-entered, drilled horizontally and stage frac'd within the Eagleford Shale. The use of existing wellbores will significantly reduce the capital expenditures required for Sharon's development program.
Sharon is continuing to acquire additional acreage in the area and a development plan for the area is being prepared.
Sharon is an oil and gas exploration and production company based in Calgary, Alberta. Sharon's current focus is on gas and oil development and exploration in Texas.
ADVISORY: Certain information regarding the Company in this News Release including management's assessment of future plans and operations, drilling and completion plans and the timing thereof, may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, capital expenditure costs, including drilling, completion and facilities costs, unexpected decline rates in wells, wells not performing as expected, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhausted. Additional information on these and other factors that could effect the Company's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) and at the Company's website (www.sharonenergy.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. SOURCE Sharon Energy Ltd.
Copyright (C) 2008 PR Newswire. All rights reserved
Sharon's acreage is on trend with the recently announced gas discovery by Petrohawk Energy Corporation and a large development program, operated by Apache Corporation.
On October 21, 2008, Petrohawk announced the successful completion of the STS #241-1H well that had an initial production of 7.6 MMcfd and 250 Bbls condensate per day.
Apache's investor presentation, released on October 23, 2008, which can be found on Apache's web site, confirmed that it has an ongoing program to evaluate the play and had drilled and completed four horizontal oil wells to date, with initial production rates of 170 to 345 bopd.
Sharon's acreage has numerous existing wellbores which Sharon believes can be re-entered, drilled horizontally and stage frac'd within the Eagleford Shale. The use of existing wellbores will significantly reduce the capital expenditures required for Sharon's development program.
Sharon is continuing to acquire additional acreage in the area and a development plan for the area is being prepared.
Sharon is an oil and gas exploration and production company based in Calgary, Alberta. Sharon's current focus is on gas and oil development and exploration in Texas.
ADVISORY: Certain information regarding the Company in this News Release including management's assessment of future plans and operations, drilling and completion plans and the timing thereof, may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, capital expenditure costs, including drilling, completion and facilities costs, unexpected decline rates in wells, wells not performing as expected, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhausted. Additional information on these and other factors that could effect the Company's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) and at the Company's website (www.sharonenergy.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. SOURCE Sharon Energy Ltd.
Copyright (C) 2008 PR Newswire. All rights reserved
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