PetroQuest erases liability by giving away gulf assets
PetroQuest Energy Inc. has eliminated a $35.4 million undiscounted abandonment liability from future obligations by
releasing certain oil and gas assets in the Gulf of Mexico to
Northstar Offshore Ventures LLC, Houston.
PetroQuest received no proceeds from the sale but paid
$3.75 million in cash to satisfy future abandonment costs.
Connected with the sale, the PetroQuest expects to receive a
cash refund of $10.3 million related to a depositary account
that served to collateralize a portion of the company’s offshore
bonds. PertoQuest now derives all production from onshore
Louisiana and Texas assets.
During fourth-quarter 2017, the Outer Continental Shelf assets, consisting of seven producing fields, produced 26.1 MMcfd
of gas equivalent (21% oil, 75% gas, and 4% NGL). PetroQuest
estimates net production for January to be 13. 8 MMcfed (24%
oil, 71% gas, and 5% NGL), or 47% below the fourth-quarter
2017 rate, a result of natural declines, the company said.
Northstar, purchased by Orinoco Natural Resources LLC
in August 2017 for $71 million, said the deal fits in with the
company’s plan to expand through acquisition. In recent years,
Orinoco’s owners, who control the Virginia Conservation Legacy Fund Inc., a nonprofit seeking sustainable approaches and
public awareness about natural resource use, have acquired oil
and gas and decommissioning assets.
Financing kills Samson’s Foreman Butte Project sale
Samson Oil & Gas Ltd. intends to proceed with a new $30-mil-
lion debt facility following the cancellation of its proposed
Foreman Butte Project sale by Firehawk Oil & Gas LLC, Denver
(OGJ Online, Jan. 23, 2018).
The sale, a divestiture of substantially all of Samson’s assets
for $41.5 million, was terminated as Firehawk was unable to
complete its financing plan for the transaction.
Dependent upon transactional expenses, Samson will proceed with refinancing for funds to repay its existing lender in
full and to provide working capital for recommencement of its
development drilling program. If expenses cannot be meaningfully reduced, the company said, another asset sale may be
EXPLORATION & DEVELOPMENT QUICK TAKES
Stampede comes on stream in Gulf of Mexico
Stampede, a Gulf of Mexico deepwater oil and gas development,
has come onstream, said CNOOC whose subsidiary Nexen Petroleum Offshore USA is a partner. Hess Corp. operates Stampede, which is 185 km south of Fourchon, La., in about 1,066
m of water with a reservoir depth of 9,100 m.
“Three production wells are currently completed, and production is expected to ramp up through 2018,” CNOOC said.
Partners include Unocal, a subsidiary of Chevron Corp., Statoil
Gulf of Mexico LLC, and Nexen. Nexen, Chevron, Statoil, and
Hess each have a 25% working interest.
The Stampede tension-leg platform is designed for a processing capacity of 80,000 b/d of oil, 40 MMscfd, and 100,000
b/d of water injection.
Current development plans call for six subsea production
wells and four water injection wells tied back to the TLP. Three
production wells are currently completed, and production is
expected to ramp up through 2018.
Stampede involves development of the Pony and Knotty Head
deepwater fields on Green Canyon Blocks 468, 511, and 512.
QP, Total join as exploration partners in South Africa
Total SA reported signing an deal to sell 25% interest in the exploration Block 11B/12B, off South Africa, to Qatar Petroleum.
The transaction, said Arnaud Breuillac, Total president, ex-
ploration and production, “enhances the partnership on Block
11B/12B in preparation for the high-potential exploration well
scheduled to be drilled on the block at the end of 2018.”
Block 11B/12B covers 19,000 sq km in 200-1,800 m of water
in the Outeniqua basin 175 km offshore southern South Africa.
The new partnership structure will be as follows: Total, operator, 45%;, Qatar Petroleum, 25%; CNR international, 20%;
and Main Street, 10%.
Total acquires interests offshore Guyana
Total SA will acquire two exploration licenses covering more
than 12,000 sq km offshore Guyana.
It agreed to acquire a 35% working interest in the Canje
Block from an affiliate of JHI Associates Inc., Toronto, and Mid-Atlantic Oil & Gas Inc. of Guyana. The block, operated by ExxonMobil with a 35% interest, is in 1,700-3,000 m of water.
JHI and Mid-Atlantic will retain a shared 30% interest.
Total also agreed to acquire a 25% working interest in the
Kanuku Block from operator Repsol, which will retain a 37.5%
interest. Tullow Oil holds a 37.5% interest in the block, which
has water depths of 70-100 m.
Total in September 2017 acquired an option to purchase a
25% working interest in the Orinduik Block from an affiliate
of Eco (Atlantic) Oil & Gas Ltd., Toronto, which would retain
a 15% interest. Tullow, with 60%, operates the block, which is
in 70-100 m of water.
Kosmos’ Requin Tigre-1 well off Senegal dry hole
Kosmos Energy, Dallas, continues to evaluate oil prospects
across Mauritania and Senegal ahead of the next phase of exploration offshore the two countries despite results of its latest
The well, Requin Tigre-1, was drilled in Senegal’s Saint
Louis Offshore Profond block to 5,200 m total depth and was
designed to evaluate Cenomanian and Albian reservoirs in a
structural-stratigraphic trap charged from an underlying Neo-comian-Valanginian source kitchen. The well encountered no
Post-well analysis continues as the company believes there
is “substantial remaining prospectivity” in its acreage position.