Encore Energy buys $14.8M in Permian Basin oil and gas assets

Encore Energy Partners LP    said Tuesday it has closed on a $14.8 million purchase in the Permian Basin for oil and natural gas assets from a private seller.

The acquisition has estimated total net proved reserves of 1.03 million barrels of oil equivalent; about 87 percent are oil and natural gas liquids reserves. Current production is approximately 115 barrels of oil equivalent per day.

Houston-based Encore (NYSE: ENP) also has entered into a definitive agreement to pay $28.5 million for certain non-operated working interests in producing oil and natural gas assets in Sweetwater County, Wyo. The seller is undisclosed.

These assets have an estimated total of proved reserves of 4.175 million barrels of oil equivalent; approximately 65 percent are natural gas reserves, and 35 percent are oil and natural gas liquids reserves. The assets are 90 percent proved developed; the net production is about 880 barrels of oil equivalent per day.

Closing on this deal is expected in September.

Source: Houston Business Journal 

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Bering Exploration Identifies a New Prospect With a Potential of 950,000 Gross Barrels of Oil or $3.50 Per Share

HOUSTON, Aug. 3, 2011 /PRNewswire/ -- Bering Exploration, Inc. (OTCQB: BERX) announced today that it has identified a new prospect through its exclusive partnership with Glaux Oil & Gas, LLC (Glaux) that covers 500,000 acres in the Permian Basin.  This new prospect of approximately 640 acres has potential gross reserves of 950,000 barrels of oil and, based upon today's prices, equates to $88 million dollars of gross revenues or $3.50 per share.  There is no guarantee that this prospect will be successful or that these numbers will be achieved due to production and/or price fluctuations.  Bering is currently conducting its technical assessment and once satisfactorily completed will begin leasing the mineral rights. Bering expects to initially retain a100% working interest.

This prospect was the first identified as a result of its recently announced three year exclusive exploration agreement with Glaux for the development of numerous leads and prospects in approximately 500,000 gross acres in West Texas using a proprietary aeromagnetic survey. Once leased, Bering will use other advanced oil finding technologies such as telluric and seismic to identify well locations.

The Permian Basin is one of the largest and most active oil basins in the United States, with the entire basin accounting for approximately 19 percent of total U.S. oil production. The Permian Basin remains a significant oil-producing province and contains an estimated 30 Billion barrels of remaining mobile oil and has the biggest potential for additional oil production in the country, containing 29% of estimated future oil reserve growth. Through increased use of enhanced-recovery practices the Permian Basin can have a substantial impact on U.S. oil production.

Source: PR Newswire

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SandRidge Up on Permian Plays

Higher oil prices also chipped in with raised production but net realised oil and gas prices were eroded by derivatives elements.

Net profit for the three months to the end of June was $223.17 million as compared with $54.61 million in the second quarter of 2010.

The hike was due to oil revenues booming from $150 million to $312.11 million which sent total revenues soaring from $182.44 million to $364.77 million.

Although operating expenses were up, SandRidge managed to keep the increase in check.

The company operated an average of 29 rigs in the period drilling 238 wells, 200 of which were in the Permian Basin.

Permian production alone shot from 13,100 barrels of oil equivalent per day to 28,100 boepd, largely thanks to the acquisition of Arena Resources which was closed in July 2010.

Total production was up from 4.56 million boepd to 5.64 million boepd. The average realised price of oil shifted from $62.56 per barrel to $89.09, but the net figure when derivative instruments were included was $65.86 last year and $76.26 this time around.

The average realised price of gas was pretty steady year-on-year at $3.81 per thousand cubic feet but derivatives chopped the net realised amount to $3.31 whereas they had inflated the amount to $6.06 a year earlier.

SandRidge has up its production, cost and capital expenditure forecasts for the full year and plans to have over 800 wells drilled in the Permian Basin in 2011.

SandRidge also announced earlier on Thursday that it has entered into a $500 million joint venture agreement with an affiliate of South Korean investment company Atinum Partners.

Source: Upstream Online

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Blacksands Petroleum Spuds Permian Well; Files NASDAQ Application

Blacksands Petroleum, Inc. BSPE -0.25% ("Blacksands") has drilled the BVR 6 Well No. 1 to a total depth of 7,949'. This is Blacksands' first operated well in the Permian Basin in Borden County Texas. Blacksands is evaluating the Lower Spraberry (Jomill and Dean sands) and Lower and Upper Wolfcamp, and anticipates perforating and fracture stimulating and producing all of the formations. Blacksands has an interest in approximately 9,000+ acres (5,000 net mineral acres) in the Apclark field. Blacksands plans to evaluate formations below the established Jo Mill Field pays, including the Wolfcamp, Strawn and Upper Mississippian formations, with future drilling.

In addition, Blacksands has filed application to be listed on NASDAQ Capital Markets.

About Blacksands Petroleum:

Blacksands Petroleum, Inc. is engaged in the acquisition, exploration, and development of conventional and unconventional oil and gas fields in N. America. Blacksands owns approximately (i) 9,000 gross (5,000 net) acres in the Midland Basin, Texas and (ii) 147,262 gross (73,631 net) acres in the Pedregosa Basin, New Mexico. Blacksands operates three producing properties in Texas.

Source: Market Watch

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American Standard Annouces 2nd Spud for Phase 1 Permian Basin Drilling Program

SCOTTSDALE, Ariz., July 25th, 2011 -- /PRNewswire/ -- American Standard Energy Corp. (the "Company") (OTCBB:ASEN), announces 2nd spud for 10 net well drilling program in Andrews County, Texas.

The JW #5 rig is on location, rigging up and is expected to spud within 24 hours on the University 8 #1 location in Andrews County, Texas.

The Company intends to drill the University Andrews 8 #1 well to the Strawn and completed in the Strawn, Wolfcamp, Spraberry and Lower Clearfork formations.  The Company will own 100% working interests in all 10 wells.

About American Standard Energy:

American Standard Energy Corp. is a non-operated exploration and production company based in Scottsdale, AZ. ASEN's primary focus is balanced between the Permian Basin, the Bakken and Eagle Ford oil shale resource prospects in the continental United States. ASEN currently controls approximately 38,500 net acres in the following three primary prospect areas:

• 30,800 core net acres targeting the Bakken/Three Forks in North Dakota;
• 6,500 net acres targeting the Permian formation in West Texas;
• 1,200 net acres targeting a specific Eagle Ford prospect in South Texas;

Source: The Sacramento Bee 
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Crosstex Energy, Apache to develop Permian Basin project

* Cost to invest $85 mln in natural gas processing plant

* Each Co to hold a 50 percent working interest

* Crosstex will construct and operate the facilities (Follows alerts)

July 12 (Reuters) - Pipeline operator Crosstex Energy LP , Crosstex Energy Inc , and Apache Corp will invest $85 million in a new-build natural gas processing plant in the Permian Basin in West Texas.

Crosstex Energy Inc owns a 25 percent limited partner interest of Crosstex Energy LP.

The Crosstex companies and Apache will hold a 50 percent working interest in the project and fund it equally.

Crosstex companies will construct and operate the facilities.

The initial phase of the project will provide interim and long-term processing, compression and residue gas takeaway for Apache's Deadwood development in Glasscock County.

They will install a refrigeration plant with a capacity of 20 million cubic feet (mmcf) per day, expected to be operational by the fourth quarter.

A cryogenic gas processing facility with a capacity of 50 mmcf per day is expected to be operational in the second quarter.

Crosstex also said it will invest $12 million to buy and upgrade a nearby rail terminal to transport natural gas liquids (NGL) to its Eunice fractionation facility in southern Louisiana. (Reporting by Swetha Gopinath in Bangalore; Editing by Don Sebastian)

Source: Reuters

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