CGG GeoConsulting announced today that it has been awarded a contract to supply digital well products to the Oil & Gas Authority (OGA), the UK Government industry regulator, as part of a wider tender for comprehensive subsurface databases and information sources to encourage further exploration in underexplored areas of the UK Continental Shelf (UKCS).
The data sets will help to support the OGA’s work across the exploration and production (E&P) lifecycle including the promotion of future licensing rounds and undeveloped discoveries, regional exploration projects, area strategies and asset stewardship.
Algeria has focused its exploration efforts in the south since oil and gas was discovered in the country in 1956.
Algeria holds the third-largest amount of proved crude oil reserves in Africa, all of which are onshore because there has been limited offshore exploration. According to Sonatrach, about two-thirds of Algeria’s territory remains largely underexplored or unexplored.
Algeria held an estimated 12.2 billion barrels (Bbbl) of proved crude oil reserves, a figure that has been unchanged for many years. Most proved oil reserves are in the country’s oldest and largest oil field, Hassi Messaoud, in the eastern part of the country, near the Libyan border. Hassi Messaoud is estimated to hold 3.9 billion barrels (Bbbl) of proved and probable recoverable reserves, followed by the Hassi R’Mel Field (3.7 Bbbl) and the Ourhoud Field (1.9 Bbbl). Currently, it produces 1.1 MMbbl/d, having slashed 50 Mbbl/d as per OPEC’s quota production cut.
Algeria’s oil and gas industry is lagging mainly due to the lack of major investment, though almost 95% of government revenue comes from oil and gas exports. Algeria requires cutting-edge technological solutions to improve oil recovery factors, which are low compared with neighboring countries in the Middle East. Currently, Algeria’s reservoirs, which require EOR techniques, have a recovery factor of less than 20%, compared with 34% in Egypt, according to Shaheen El-Sayed, vice chairman of production for Middle East and North Africa at IPR Egypt.
Sonatrach, Algeria’s state oil company, plans to invest over $50 billion in E&P projects in the country over the next five years, Salah Mekmouche, the company’s vice president for E&P, said earlier this year. The plan includes drilling more than 1,300 wells between 2017 and 2021 and reaching an annual production rate of nearly 230 million tonnes of oil equivalent. Algeria’s oil and gas production rate per year is currently at 190-200 million tonnes of oil equivalent on average.
Phase 1 of Coyanosa Survey to cover Ward, Reeves and Pecos counties in Texas.
FairfieldNodal and Schlumberger have just announced a strategic multiclient joint venture in the southern Delaware Basin of West Texas.
The area of mutual interest encompasses approximately 1,100 square miles. The first phase of the Coyanosa Survey will consist of approximately 306 square miles of high-quality, 3D seismic data in Ward, Reeves and Pecos Counties, Texas. The resulting 3D data, for which non-exclusive licenses will be available, will tie into existing FairfieldNodal and WesternGeco 3D data to provide customers with contiguous data coverage in the southern Delaware Basin.
“Under the present oil and gas market conditions, collaborations allow us to quickly and economically provide our customers not only high-end imaging solutions, but also an in-depth knowledge of the multiple reservoirs and drilling hazards that exist in the area,” said Maurice Nessim, president, WesternGeco, Schlumberger.
TGS announces its second Permian seismic project in 2017. The West Lindsey 3D multi-client seismic survey is located to the southwest of the previously announced West Kermit 3D. This new project will encompass a minimum of 190 square miles predominantly in Reeves County, TX.
The West Lindsey 3D will provide modern, high resolution 3D seismic data to an area that is seeing high interest from E&P companies. Strong potential exists in multiple zones from the Delaware sands through the prolific Wolfcamp, as well as deeper plays including the highly prospective Siluro-Devonian and Ordovician Ellenburger along the Grisham Arch.
The stock of CGG SA (ADR) (NYSE:CGG) hit a new 52-week low and has $5.51 target or 3.00% below today’s $5.68 share price. The 7 months bearish chart indicates high risk for the $126.19M company. The 1-year low was reported on May, 30 by Barchart.com. If the $5.51 price target is reached, the company will be worth $3.79M less. About 1,495 shares traded. CGG SA (ADR) (NYSE:CGG) has declined 77.16% since May 30, 2016 and is downtrending. It has underperformed by 93.86% the S&P500.
SeaBird Exploration Plc says it is highly likely that it will require new liquidity by Q3 2017 and is hoping to restructure to reduce debt and attract new equity.
The seismic survey company is proposing to its bondholders and certain of its other creditors a debt restructuring of the SeaBird group that, if successfully completed, will facilitate a comprehensive restructuring of the group’s balance sheet.
Following the restructuring, debt in Seabird will be reduced by US$22.0 million and lease obligations will be reduced by US$10.4 million. The remaining debt under the SBX04 bond loan and the Glander credit facility will be US$5.0 million and the remaining lease obligations (payable in kind until maturity) will be US$2.4 million.
Aker BP ASA (Aker BP) has entered into a framework contract with Schlumberger for acquisition of 4D seismic data.
The framework contract has a duration of four years, with an option for 2+2 years.
The contract includes WesternGeco marine acquisition of 4D seismic data over the Aker BP-operated fields Alvheim, Bøyla, Skarv/Snadd and Ula in 2017. This part of the agreement, which has the support of the partners on the four fields, has an independent market value of around USD 30 million.
“With this framework contract, Aker BP is fortifying our position as an operator with significant ambitions for growth and value creation on the Norwegian Shelf,” says SVP Reservoir, Ole-Johan Molvig.
This year’s extensive seismic acquisition effort starts in May, and will be carried out by the WG Amundsen seismic vessel.
The directors of SeaBird Exploration Plc convene the Extraordinary General Meeting (“EGM”) of the Shareholders on 13 June 2017 at 11.00 (local time) at Diagoras House 7th Floor, 16 Pantelis Catelaris Street, CY 1097 Nicosia, Cyprus.
The company advises that the EGM convened hereby is the extraordinary general meeting referred to in the stock exchange announcement from the Company on 26 May 2017.
The agenda and other relevant documents incl. proxy forms are distributed to the shareholders, attached hereto and are listed on the company’s web-page: www.sbexp.com
HIGHLIGHTS – First Quarter
- Strong operational performance results in best financial quarter to date
- Awarded an extension to Red Sea survey for BGP and Saudi Aramco
- Raised USD 40 million of new equity to finance planned expansion
- Started preparations for the rigging of our second high-capacity cable vessel
- Revenue of USD 21.1 million compared to USD 18.1 million in 2016
- EBITDA of USD 8.3 million compared to USD 1.6 million in 2016
- EBIT of USD 4.8 million compared to USD -2.5 million in 2016
- Net Income of USD 3.5 million compared to USD -3.9 million in 2016
Idar Horstad, CEO Statements:
“Q1 was another strong quarter for Magseis with USD 21.1 million in revenue, EBITDA of USD 8.3 million and a net profit before tax of USD 4.3 million. This demonstrates the efficiency of our operation in the Red Sea and robustness of our equipment as well as the very good cooperation with our partner BGP and Saudi Aramco. Based on this performance, we were awarded the S-78 Extension which is now well underway.
The preparations for the ConocoPhillips Ocean Bottom Seismic (OBS) 4D project on the Eldfisk Field in the southern North-Sea are progressing well and we are on plan with respect to building new equipment and recruiting staff for this mobile ”smart-operation.” The Eldfisk project represents a step change in OBS operations with a set up that reduces the cost of OBS data significantly for our customers. This lowers the adoption barrier and will result in an expansion of the customer base and a larger market.
During the first quarter, we successfully raised USD 40 million in new equity in a process that was met with significant interest from investors. We are very pleased to see that most of our existing shareholders participated in the new funding and welcome our new shareholders. The new capital will, in combination with additional funding, allow us to expand our capacity by 10,000 new MASS nodes, rig a new high capacity cable handling vessel and continue to improve our technology to provide new innovative and cost efficient solutions to our clients.
The preparations for our new cable vessel are progressing well. We have placed orders for long lead items and started to recruit additional staff. More than 20 different ship owners were invited to participate in the tender process and final negotiations are ongoing. We expect to announce the new charter party before the summer. The new vessel will have a capacity to handle up to 1,000 km of cable, more than 10,000 nodes and have permanent ROV capability onboard. This vessel represents a game changer for the OBS market and a significant step towards our Vision: “To re-shape the Ocean Bottom Seismic Market”.