DNE: Dune Energy Closes Acquisition of Barnett Shale Properties for $7.0 Million; Agrees to Purchase Additional Barnett Shale Properties for $25.8 Million Friday October 13, 2:58 pm ET
HOUSTON, Oct. 13 /PRNewswire-FirstCall/ -- Dune Energy, Inc. (Amex: DNE - News; "Dune") announced today that it has entered into a Second Amended Purchase and Sale Agreement ("the Agreement") with Voyager Partners, Ltd. ("Voyager"). Pursuant to the Agreement, dated October 6, 2006, Dune will acquire 95% of Voyager's interest in producing and non-producing natural gas and oil properties, plus unrelated property and equipment. The properties are predominantly located in Denton County, Texas, on the fairway of the North Texas Fort Worth Basin Barnett Shale, and are largely contiguous with existing Dune acreage. To date, Dune has already purchased $31.8 million of Barnett Shale properties from Voyager. ADVERTISEMENT
The Agreement provides that we purchase Voyager's remaining properties, consisting of 2,457 gross acres, in two separate closings for total consideration of $32.8 million. Management estimates that these properties contain proved reserves totaling 29.9 BCFE plus probable reserves totaling 16.1 BCFE, for a total of 46 BCFE, representing an acquisition cost of $1.09 per MCFE for proved reserves and $0.71 per MCFE for proved plus probable reserves.
On October 10, 2006, Dune purchased an initial $7.0 million of Voyager's remaining properties. The new Agreement provides that the balance of Voyager's assets, totaling $25.8 million, be acquired by Dune on or before January 19, 2007. Dune's obligation to purchase such remaining assets is subject to financing.
The assets purchased on October 10, 2006 consist of 857 gross acres, two producing wells thereon, and two wells drilled and scheduled for fracture stimulation prior to year end. There are also a total of 18 additional drilling locations, three of which management presently anticipates will be drilled horizontally. The two producing wells that Dune acquired in this closing are the Underwood and Smith-East wells, which Dune placed on production August 30, 2006 and September 7, 2006, respectively. Management has estimated proved reserves totaling 11.9 BCFE and probable reserves totaling 3.5 BCFE were acquired at a cost of $0.59 per MCFE for proved reserves and $0.45 per MCFE for proved plus probable reserves. Dune drew down $4.0 million from its Senior Credit Facility in connection with this purchase.
The remaining Voyager assets totaling $25.8 million consist of 1,600 gross acres, with 29 additional drilling locations identified. Up to one third of this acreage is expected to be drilled horizontally. Management has estimated that these properties contain proved reserves totaling 18 BCFE and probable reserves of 12.6 BCFE, representing a potential acquisition cost of $1.43 per MCFE of proved reserves and $0.84 per MCFE for proved plus probable reserves.
Dune expects to shortly enter into a definitive contract for the construction of and subsequent long term contract for a drilling rig for the Company's exclusive use on its Barnett Shale properties. This rig, which will be the second such dedicated rig for Dune, will be capable of drilling deviated and horizontal wells. Pending execution of the definitive agreement, management expects the second rig to be delivered during the first quarter of 2007. Consistent with the terms of the contract for our existing rig, the initial term of the contract for this second rig will be two years with an extension clause. The day rate will be fixed, with a price renegotiation clause at the end of the initial twelve months of operation. Dune will retain the right to sublease the rig if needed.
Dune is a rapidly growing oil and gas exploration and development company with operations presently concentrated along the Louisiana/Texas Gulf Coast as well as the Fort Worth Basin Barnett Shale. Additional information is available at http://www.duneenergy.com.
International Power Group Names Fleishman-Hillard as Investor Relations/Public Relations Agency of Record Friday October 13, 5:31 pm ET
CELEBRATION, Fla.--(BUSINESS WIRE)--International Power Group, Ltd. (OTCPK: IPWG), today named Fleishman-Hillard, Inc., one of the world's top public relations firms, as its agency of record. Fleishman-Hillard was retained to increase International Power Group's outreach to the investor community, media, policymakers, and other stakeholders. ADVERTISEMENT
Peter Toscano, President/CEO of International Power Group, said, "We're excited to begin work with Fleishman-Hillard. Their extensive reach in the U.S. and abroad coupled with their expertise in the energy industry make them the right agency to help us build upon our positioning in the market."
Fleishman-Hillard replaces The Investor Relations Group, Inc., which had worked with International Power Group since August. Fleishman-Hillard brings extensive experience in developing and implementing integrated investor relations/public relations programs that raise both company profile and market share. The agency was recently named International Agency of the Year by The Holmes Report, one of the leading publications serving the communications industry.
About Fleishman-Hillard Inc.
Fleishman-Hillard Inc., one of the world's leading public relations firms, has built its reputation by using strategic communications to deliver what its clients value most: meaningful, positive, and measurable impact on the performance of their organizations. The firm is widely recognized for excellent client service and a strong company culture founded on teamwork, integrity, and personal commitment. Based in St. Louis, the firm operates throughout North America, Europe, Asia, Latin America, Australia, and South Africa through its 80 owned offices. For more information, visit the Fleishman-Hillard Web site at http://www.fleishman.com.
Fleishman-Hillard is a part of Omnicom Group Inc. (NYSE: OMC - News). Omnicom is a leading global advertising, marketing and corporate communications company. Omnicom's branded networks and numerous specialty firms provide advertising, strategic media planning and buying, direct and promotional marketing, public relations, and other specialty communications services to over 5,000 clients in more than 100 countries.
About International Power Group, Ltd.
International Power Group, Ltd. is dedicated to providing multifaceted alternative energy solutions in a sustainable and environmentally friendly manner. Through its subsidiaries, strategically placed around the world, and its strategic partnerships, the Company intends to provide turnkey solutions for waste disposal and electricity and potable water production. The Company intends to establish waste-to-energy facilities to convert commercial, hazardous, organic and toxic wastes into saleable electricity and potable water. IPWG believes it is uniquely positioned to produce revenue from the in- processing of waste and the out-processing of electricity and drinking water, while addressing the growing need for "green" sources of energy.
Mariner Energy Announces Appointment of Chief Financial Officer Friday October 13, 6:58 pm ET
HOUSTON, Oct. 13 /PRNewswire-FirstCall/ -- Mariner Energy, Inc. (NYSE: ME - News) announces today that John H. Karnes will join Mariner on October 16, 2006, as its Senior Vice President, Chief Financial Officer and Treasurer. Mr. Karnes will replace Rick G. Lester who announced on June 29, 2006, his intended departure from Mariner and who has continued in his role at the company on a consulting basis. ADVERTISEMENT
Scott D. Josey, Mariner's Chief Executive Officer and President said, "John Karnes brings a rich complement of skills and a wealth of business experience to Mariner. I believe he will be a great addition to our management team."
Previously, Mr. Karnes was the Senior Vice President and Chief Financial Officer of The Houston Exploration Company from November 2002 through December 2005. Prior to his service at Houston Exploration, in 2002 he was Vice President and General Counsel for Encore Acquisition Company, a NYSE-listed exploration and production company. He served as Executive Vice President and Chief Financial Officer at Cybercash, Inc., a NASDAQ-listed software and services provider, from 2000 to 2001. He has served in other management roles at publicly-traded companies during his career, including positions at Snyder Oil Corporation and Apache Corporation. He is an attorney and practiced at the national law firm of Kirkland & Ellis, from 1987 to 1991, focusing on securities matters and mergers and acquisitions.
Mr. Karnes received his Bachelor of Business Administration degree in accounting, with honors, from the University of Texas at Austin and his Juris Doctorate, with honors, from Southern Methodist University School of Law.
PRB Energy, Inc. Announces Stock Repurchase Program Friday October 13, 8:40 am ET
DENVER--(BUSINESS WIRE)--PRB Energy, Inc., ("PRB" or the "Company") (AMEXRB - News) today announced that its Board of Directors has authorized the repurchase of up to 10%, or approximately 750,000 shares, of the Company's outstanding common stock. The stock repurchase authorization is effective immediately and continues through the end of 2006. The repurchases will be made from time to time in open market or in negotiated transactions in such amounts as determined in the discretion of the Company's management and will be funded out of working capital. All purchases at prices below the Company's per share book value will be accretive. ADVERTISEMENT
Robert W. Wright, Chairman & CEO stated, "Our Board of Directors believes that the recent trading price of our common stock does not adequately reflect the Company's present net asset value and strong prospects for growth in revenue and cash flow in the future. We believe that, based on current market prices, the repurchase program is a good investment of our available funds."
PRB is an oil and gas exploration and development company operating in the Rocky Mountain States. In addition, PRB also provides gas gathering, processing and compression services on properties it operates and for third party producers.
This press release contains certain statements concerning expectations for the future that are forward-looking statements. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that are difficult to predict and many of which are beyond management's control. An extensive list of factors that can affect future results are discussed in the Company's Form 10-K and other periodic reports filed with or furnished to the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements to reflect new information or events.
Contact: PRB Energy, Inc. Robert W. Wright, Chairman and CEO, 303-308-1330 info@prbenergy.com Or Investor Relations Counsel: The Equity Group Inc. Linda Latman, 212-836-9609 or Lena Cati, 212-836-9611 http://www.theequitygroup.com
Alberta land sales vault past $3B mark Craving for land may be cooling off
Lisa Schmidt, Calgary Herald Published: Saturday, October 14, 2006
Land sales in Alberta have topped $3 billion for the first time -- more than all of Western Canada last year -- but the height of the feeding frenzy appears to have passed.
And energy companies are expected to tighten the reins on spending for the final quarter of 2006 as oil and natural gas prices have fallen more than expected.
"Most people are out of money now," said Tom Ebbern, an analyst with Tristone Capital in Calgary.
"The first thing to get cut is discretionary spending, which is land."
To the end of the third quarter, Alberta has taken in a total of $3.1 billion as soaring prices for oil and gas earlier this year led more energy firms to bolster exploration budgets and boost production. That's well ahead of last year's total of $2.2 billion for sale of crown rights and leases, all of which goes into government coffers.
More than half the revenue is from oilsands leases, which have totalled about $1.8 billion so far this year, compared to $388 million for all of 2005.
"This will go down as the biggest year -- period," Ebbern said.
Sales of oilsands leases totalled $457 million last month. That was the most since February, when the province raked in nearly $560 million in a single sale.
Between July and September, Alberta sold off the largest amount of hectares in nearly a decade, another analyst noted.
"The volume of land sales is reaching heights last seen in 1995 as more oilsands leases are sold than ever before," Steven Paget, an analyst with FirstEnergy Capital Corp. in Calgary said in a report released this week.
"Some of these leases are 20 plus years away from coming on production, but Shell Canada was buying leases in the 1960s that only came on stream in this decade, so long-term thinking continues to be crucial."
This month, however, energy firms appear to be holding back, spending less than $500,000 for oilsands leases at the latest of the province's bi-weekly sales.
The results of next week's sale will likely show land costs for conventional oil and gas exploration in Alberta continuing to decline, said Tristone's Ebbern.
"I'm hearing from producers that they are picking up land for $100 an acre (0.4 hectares) that next door was going for $800 to $1,000 an acre six months ago," he said.
"There's way less competition at land sales."
Across the rest of Western Canada, it's also shaping up to be a record year for land sales.
Although recording only a fraction of Alberta's colossal gains, both Saskatchewan and British Columbia are on track to beat previous highs.
Saskatchewan has taken in $128 million in the first nine months and sales are on pace to hit $200-million mark for the first time. Land prices hit a record $223 per acre (0.4 hectares) in August.
If trends continue, British Columbia is expected to surpass a 2003 high of $650 million in land sales. Prices have fallen to 40 per cent of highs that topped $800 per acre (0.4 hectares). In Manitoba, land sale revenues have fallen to half of last year's record, at $2 million, but are still on track to reach their second highest level in a decade.
HUSKY ENERGY CELEBRATES ITS INAUGURAL OIL SANDS PROJECT
Husky Energy Inc. today conducted the official opening of its Tucker oil sands project in a ribbon-cutting ceremony at the facility site near Cold Lake, Alta. The event was attended by the Honourable Ralph Klein, Premier of Alberta, the Honourable Greg Melchin, Minister of Energy, and other distinguished guests.
The Tucker oil sands project is the first in Husky's portfolio of oil sands assets. The project, located 30 kilometres northwest of Cold Lake, Alta., was completed on time and below its $500-million budget. Construction on the project began in the fall of 2004 and at its peak employed about 700 workers on site. The facility will employ approximately 40 full-time workers.
"Corporate citizens like Husky Energy represent the grand entrepreneurial spirit of Alberta. Benefits from projects like Tucker don't stop in the boardroom. They are shared throughout Alberta, whether by the worker in Fort McMurray or the retired couple in Brooks, and indeed are felt right across Canada. We thank Husky for contributing to Alberta's oil sands development and for providing energy for generations to come," said Mr. Klein.
"We are very pleased with our project planning and execution," said John Lau, president and chief executive officer of Husky Energy. "The Husky project team and our contractors have done an outstanding job in completing the facilities on time and below budget, notwithstanding an overheated economy and increased labour costs."
During the 35-year life of the project, Husky expects to produce approximately 350 million barrels of bitumen. First oil is expected in November of this year with peak production of more than 30,000 barrels per day to be reached within 18 to 24 months.
The Tucker oil sands project is an integrated development and is located in close proximity to Husky's existing heavy-oil pipeline infrastructure. The product will be blended with a diluent to be transported to Husky's upgrader located in Lloydminster, Sask. The diluted bitumen will be upgraded into a premium synthetic crude oil and then transported to refineries in Canada and the United States.
Husky's oil sands leases total approximately 484,000 acres in the Fort McMurray and Cold Lake regions with original bitumen in place of 39.3 billion barrels.
PetroMed, a Canada-based oil and gas exploration company, announced earlier this week that it had officially received permit approval from the National Infrastructures Ministry to begin exclusive exploratory pursuit of hydrocarbons off the coast of Haifa. The permit area covers 3,500 square kilometers. PetroMed's chairman and CEO, Hagai Amir, said the company's mission was to help Israel free itself of dependence on importing oil and gas.
Amir noted Israel consumes some 385,000 barrels of oil a day, yet produces fewer than 1,000 barrels.
Chavez Spreads Oil Wealth Abroad to Muster Support Natalie Obiko Pearson, Associated Press
MONTEVIDEO, 15 October 2006 — As Venezuela lobbies for a UN Security Council seat, President Hugo Chavez has bolstered its chances by spreading petrodollars across the Americas and beyond — extending an airstrip on a Caribbean island, sending emergency food aid to Africa, fixing a rundown hospital in Uruguay.
Chavez’s international support will be put to the test tomorrow as Venezuela goes up against US-backed Guatemala in a General Assembly vote. At the same time, Chavez is confronting accusations at home that his generosity has been excessive, and has argued it’s a modest amount of aid for nations he sees as suffering from US domination.
At Uruguay’s Hospital de Clinicas, a state-of-the-art transplant unit is being built with Venezuelan money. The emergency ward’s leaky roof and exposed cinderblocks have given way to freshly painted walls, windows in rust-corroded frames are being replaced, and new elevators are on order. Hospital Director Graciela Ubach put a hand over her heart to show her gratitude to Chavez. “I thank him with my soul,” she said. “Honestly, it’s been a dream for the country.”
The public hospital struggled for funding for years until Venezuela came through with $20 million — half in donations and the other half to be paid off in reciprocal training and other services. Other Chavez pledges include: $260 million in financing to repave a Jamaican highway and $17 million in upgrades to airports on the Caribbean islands of Antigua and Dominica.
Chavez also came up with $5 million for an Uruguayan tire plant, glass business and leather factory as part of a $400 million flow of aid since March 2005, when Uruguay’s leftist President Tabare Vazquez took office, according to the Venezuelan Embassy in Uruguay.
According to the US State Department, which tracks the bulk of US foreign aid, $3.3 billion was allocated in financial and development aid to Latin America and the Caribbean for all of 2005 and 2006, including military and anti-narcotics programs. Other estimates, which include aid not tallied by the State Department, put that figure closer to $4 billion.
A consolidated figure for Venezuelan aid is harder to come by, but a review of public pledges by its government suggest Venezuela, with an economy one-ninetieth the size of America’s, has offered at least $1.1 billion since the beginning of 2005 in loans, donations and financial aid in the region.
US aid to Jamaica for 2005-2006 is listed as $42 million; the Chavez-financed highway job is six times costlier. The Venezuelan figure of $400 million for Uruguay compares with US aid of $49,000 through the State Department plus an estimated $800,000 in military education and counterdrug assistance. No US money was specifically set aside for Dominica.
In the case of Bolivia, the State Department estimates about $117 million in aid for 2006 compared with $140 million in Venezuelan donations and loans for scholarships and other programs.
Some of the aid involves relatively small sums aimed at highly symbolic targets, such as the tire-making cooperative in Montevideo that was abandoned three years ago by a US company that ran into economic troubles. The factory was restarted with money from Chavez.
RIYADH, Oct 14: Contradictory signals from major Opec players, which some accuse is deliberate, are making global crude markets confused - tumbling still further in the process and stabilising around $60 mark for the first time in many months. And as markets tumbled, with the US mid-term election just round the corner, proponents of conspiracy theories seemed at overwork. The lack of firm Saudi position, a close Bush ally, reinforced the conspiracy theorists. Markets are susceptible to politics, pundits consent, and oil markets are no exception. Rather some, and indeed with logic, reason and recent history underlining, assert the oil markets are even more susceptible to politics than other commodities. One cannot dare deny at this stage!
Gasoline prices in the US are down some 70 cents a gallon from its peak in August – just a month prior to the November US Congressional elections and the timing crucial, generating speculative reviews all around –a huge fodder for talk shows.
According to a Gallup Poll conducted late September, 42 per cent of respondents — and almost two-third of them registered Democrats — agreed with the statement that the Bush administration "deliberately manipulated the price of gasoline so that it would decrease before this fall’s elections." Indeed they have fallen! However, 53 per cent of those surveyed did not believe in the conspiracy theory, while five per cent said they had no opinion. Interesting indeed!
In the meantime, the rapid downward price slide generated a frenzy of activity within the energy corridors of the world. The real reason of concern to the crude suppliers, many argue, was the current high level of global fuel stocks, and not primarily the softening global crude market prices.
US data showed crude inventory at 328.1 million barrels on September 29, 13 per cent above the five year average for the period. Distillates, including diesel and heating oil, were also reported late September at 151.5 million barrels, 19 per cent above the five year average.
Already in September, the call on Opec crude was less than previous months. Against an official output ceiling of 28 million bpd, Opec pumped 29.47 million bpd in September a Reuters survey pointed out underlining the cartel’s overall oil output fell by 380,000 bpd in September – the lowest since April this year.
And with markets tumbling rapidly, literal mid-night lamps could be seen burning in the energy corridors of Riyadh and other Opec capitals – in the fasting month of Ramazan, when many people in the region tend to stay awake late, even otherwise.
That the Opec was taking time to respond was apparent to most of the analysts. Some attributed it to lack of preparation within the cartel in the face of this eventuality. Opec was in for some criticism!
First reports of a possible reduction move poured in from Nigeria and Venezuela. Then Kuwait became the first among the Gulf producers to join, and the announcement was made despite Kuwait having close relations with the US at the political level.
Iran and Libya, generally regarded as hawks within the cartel, also consented to the cuts. The UAE was also mentioned as ready to join. Opec President Edmund Daukoru also confirmed the reduction could be a million bpd. Chatter was all around.
OPEC to cut oil output, no quota talks: president Sat Oct 14, 2006 7:52am ET OPEC agrees on output cut: Algeria
LAGOS (Reuters) - OPEC's planned oil output cut is a temporary response to a "catastrophic" fall in prices and not intended as a permanent re-alignment of production quotas, the group's president said on Saturday.
Oil prices have dropped by 20 percent since July to below $60 per barrel and the oil exporters' club must act now to stem the slide, Edmund Daukoru of Nigeria told Reuters by telephone from the Niger Delta.
"It's just the catastrophic drop. The time to do something is about now because we don't know where the floor of this drop will end. It would be foolish to wait till it gets to $10 before we do anything because that would really kill the capacity initiatives," Daukoru said.
There was broad agreement in the cartel that the cut should be made from the average actual output level over the past 12 months, which is close to OPEC's existing production ceiling of 28 million bpd, Daukoru said. But there was no time to start renegotiating quotas within the group.
"We will take one thing at a time and stabilize the market first. We are just taking practical measures. None of what we are doing is to make a permanent arrangement. What we are doing is just reacting to what is happening in the market," he said.
"There is general agreement on the equity of using the average actual production over the past year ... It shows more equity to those who have put on more capacity over this period. It does not penalize them as much as it would have if we had used 28."
QUOTAS
Some members of the cartel, such as the world's top oil producer Saudi Arabia, have pumped far above their quotas this year to feed a surge in oil demand from Asia. Others, such as Venezuela and Indonesia, have been unable to meet their quotas due to capacity decline.
Logged
RB - News) today announced that its Board of Directors has authorized the repurchase of up to 10%, or approximately 750,000 shares, of the Company's outstanding common stock. The stock repurchase authorization is effective immediately and continues through the end of 2006. The repurchases will be made from time to time in open market or in negotiated transactions in such amounts as determined in the discretion of the Company's management and will be funded out of working capital. All purchases at prices below the Company's per share book value will be accretive.