Oklahoma business energy news

[ou48A]

This is a pretty good indication of the new oil & NG production growth in this part of Oklahoma.
The Mississippian Lime formation is providing wealth creating employment & investment opportunities for thousands.
Over time, this formation will provide Billions of dollars in new tax revenue to state and local governments.


http://finance.yahoo.com/news/Plains...50647.html?x=0
HOUSTON--(BUSINESS WIRE)-- Plains All American Pipeline, L.P. (NYSE:PAA) today announced it is converting an existing Oklahoma liquefied petroleum gas (LPG) pipeline into crude oil service. The pipeline, which extends from Medford, Okla. to PAA’s crude oil terminal facility in Cushing, Okla., will provide an initial crude oil throughput capacity of 12,000 barrels per day by January 2012 and will be expanded to 25,000 barrels per day by July 2012.

“Converting and expanding this pipeline provides timely take-away capacity for growing crude oil production in the Mississippian Lime formation in northern Oklahoma and southern Kansas,” said Harry N. Pefanis, President and COO of Plains All American. “This project extends our commitment to service Mississippian producers and is one of a number of projects PAA is progressing to service the growing infrastructure needs in this area and multiple resource plays throughout North America.”

PAA owns a network of approximately 16,000 miles of liquids pipelines, approximately 90 million barrels of liquids storage capacity and handles more than 3 million barrels of physical product on a daily basis.

[Bellaboo]

OU48A -

I have an interest in 480 acres of minerals just a few miles north of the Cimmaron river and east of I-35. Western Payne county.

Any chances this area is part of the ML formation ?

[ou48A]

OU48A -

I have an interest in 480 acres of minerals just a few miles north of the Cimmaron river and east of I-35. Western Payne county.

Any chances this area is part of the ML formation ?

I’m honestly not sure but there could be other possibilities for your acreage.

[Bellaboo]

I’m honestly not sure but there could be other possibilities for your acreage.

We've had a well on a part of it since 1980. Still puts out about a barrel a day after all these years. Red fork sand formation they say.

[ou48A]

We've had a well on a part of it since 1980. Still puts out about a barrel a day after all these years. Red fork sand formation they say.

Right now frac cost are high and there is a very long waiting list but maybe someday if rates come down and oil prices stay up they might consider a frac job for your well. Good luck

[ou48A]

This is great news.

Oklahoma's Continental Resources is the largest single player in the Bakken - with 500 wells - and it could possibly triple that number in five years

Read more: http://missoulian.com/business/local...#ixzz1h2Ze5ZaJ

[ou48A]

Continental Resources (NYSE: CLR ), who announced today its production increased 57% in the past year.

This phenomenal growth means Continental Resources will continue to grow its presents in OKC and will become a bigger part of the community.

[ou48A]

Continental Resources (NYSE: CLR ), who announced today its production increased 57% in the past year.

This phenomenal growth means Continental Resources (CLR) will continue to grow its presents in OKC and will become a bigger part of the community.

The NYSE loved the CLR report today.

It closed at $82.47 up $ 8.24 (+11.10%)

[ou48A]

Sand Ridge to by Dynamic Offshore Resources

http://www.thestreet.com/story/11397...u-to-know.html

[OKCisOK4me]

If you have any interest, you should check out Gulfport Energy. In 2010, in The Oklahoman, they were the #7 rated business in the state of Oklahoma, in 2011, they shot to #2.

[ou48A]

Since there are several Oklahoma companies and plenty of Oklahoma’s actively involved in this oil play this show tonight might be interesting.

http://www.cnbc.com/id/46167125

Premieres Monday, February 6th 9p | 12a ET

The epicenter of an oil rush is in Williston, North Dakota. CNBC’s Brian Shactman is on the ground for an inside-look at a town like no other in America, overflowing with growth, jobs and opportunity. The once quiet town sits on top of one of the largest oil deposits ever found in North America and the process known as fracking is turning that enormous oil reserve into cold hard cash.

CNBC cameras capture both incredible growth and the serious growing pains that come with it, exposing a small town bursting at the seams. Boomtown is under immense pressure, crushed by truck traffic, plagued by lagging infrastructure, and shocked by a surge in violent crimes. But the biggest threat is the controversy surrounding what goes on underground. From worries over contaminated ground water to concerns about earthquakes, all over the country fracking is making news and taking serious heat. Will regulation aimed at fracking derail Williston? Brian Shactman goes beyond the headlines inside the real story of an American oil rush.

[ou48A]

http://www.reuters.com/article/2012/...etsNews&rpc=43
Plains line could boost supply to Cushing by 175,000 bpd

* Plains signs deal with SandRidge Energy to transport crude

* New line to serve Mississippian Lime shale oil play in OK.

NEW YORK, Feb 7 (Reuters) - Plains All American will build a new crude oil pipeline from a booming U.S. shale oil play to the largest U.S. oil hub at Cushing, Oklahoma, the company said on Tuesday, potentially boosting Cushing deliveries by 175,000 barrels per day (bpd).

The new line is expected to start up in mid-2013, Houston-based Plains said. It will transport crude pumped by producer SandRidge Energy, a major acreage holder in the up-and-coming Mississippian Lime shale play, which spans Oklahoma and Southern Kansas.

The pipeline is a huge expansion of a project Plains first announced last December, known as the Medford-to-Cushing line. Altogether, the new pipeline system will run 170 miles from near Alva, Oklahoma to Cushing, the delivery point for the NYMEX benchmark WTI crude contract.

Plains earlier plans had called for a modest flow of up to 25,000 bpd into Cushing, while the planned expansion could boost Cushing-bound capacity by seven times that volume.

The Plains announcement comes at a time when many oil producers in the U.S. Midcontinent have been seeking to ship oil away from Cushing and toward regions, such as the U.S. Gulf Coast, where crude commands a hefty premium to Cushing prices.

Light crude in the Gulf Coast has been trading around $10 a barrel higher than at Cushing, where outbound pipeline capacity it limited.

Enterprise Product Partners is working to reverse the 150,000 bpd Houston-to-Cushing Seaway pipeline by the middle of 2012, to siphon more crude away from big crude hub.

A glut of crude in the Midwest, largely due to increasing Canadian crude imports and growing shale oil production in North Dakota and other shale plays, has driven regional price disparities. Cushing tanks have been holding around 30 million barrels of crude, according to Department of Energy data.

In December, SandRidge announced it entered a $1 billion joint venture with Spanish oil major Repsol YPF to develop acreage it holds in the Mississippian play in Western Kansas. At the time, SandRidge said it had already drilled more than 195 wells in the play.

Plains said it could extend the new pipeline project northward from Oklahoma into Kansas if demand warrants further construction.

[ou48A]

Good news for DVN
http://www.rigzone.com/news/article....=115196&hmpn=1
HOUSTON - Devon Energy Corp. will increase its oil production by 20% in 2012 as the independent oil and gas producer joins its peers in fleeing a weak natural gas market.

Devon and other oil and gas producers have scaled back their gas production activities as prices for the commodity have fallen to their lowest point in a decade. New drilling technology has helped lead to a glut in natural gas supply that has pushed prices to $2.50 a million British thermal unit, down from nearly $14 in July 2008.

"We're focused on oil opportunities," Devon Chief Executive John Richels said during a call with investors. "In 2012, virtually all of our capital will be directed to our oil and liquids-rich project areas."

Devon budgeted up to $5.5 billion for capital expenditure projects for 2012, down nearly a quarter from 2011. About 90% of that will be spent increasing acreage holdings or drilling activity in liquids-heavy fields, Richels said.

Devon said for 2012 it will invest $1 billion in the Permian Basin in west Texas and New Mexico, $950 million in the Barnett shale formation in East Texas, and $870 million in the Cana field in west Oklahoma. Devon spent about $400 million the fourth quarter acquiring acres in the sprawling Utica shale in the Midwest and another undisclosed area.

The company said it was particularly excited by the results of test wells it drilled in the Mississippi Lime, a limestone formation stretching through Kansas and Oklahoma. The company plans to have 50 wells drilled in the formation in 2012 after a test well produced 590 barrels of oil equivalent a day that were "some of the best quality crude oil in the lower 48," according to David Hager, Devon's vice president of exploration and production.

Devon's production in natural gas wells for 2012 will decrease "slightly" as it stops investing in wells of that type. It still expects its overall natural gas production to stay steady as it captures the natural gas trapped in oil wells.

Devon will also boost its quarterly dividend by 18%, to 20 cents a share, Richels said

[Pete]

natural gas supply that has pushed prices to $2.50 a million British thermal unit, down from nearly $14 in July 2008.

Wow, I had no idea it was that bad.

At the same time, oil prices have gone through the roof.

[adaniel]

At my company, nearly all projects we get are now oil wells. Thank god for that or else we would be screwed right now.

Any nat gas wells that are being drilled right now are just an attempt to save leases and keep the losses to a minimum.

Gas fields that produces "dry gas", as in, gas with no corresponding condensates or oil, are winding down.

I know quite a few newish gas wells are being shut in out in Western OK. The Fort Worth portion of the Barnett Shale in Texas, for the most part, is done until gas gets back up.

Its a bit concerning given the fact many of these wells aren't forecast to recoup their costs for another 4-5 years, and that was made w/ a price projection of $4-5/mcf. Also, keep in mind OK gas generally sells less than the well known NYMEx spot price.

[ou48A]

Wow, I had no idea it was that bad.

At the same time, oil prices have gone through the roof.

Crude is still trading well below its record peak of $145 that occurred in the summer of 2008.
By the following December WIT had fallen to about $30.28 a barrel,


“Ten of the last 11 recessions were preceded by oil price hikes”

http://reason.org/news/show/oil-pric...-the-recession

There seems to be a 6 to 9 month lag time before it shows up with higher unemployment statistics.



Currently Brent Crude is trading at about $120 and is believed by some analyst to be approaching demand destruction levels.

WTI crude trades at a significant discount at about $102

Because of a lack of pipeline transportation capacity Bakken crude has been trading for as low as $71 in recent weeks. As a result the average price of gasoline in Wyoming is $2.90 right now.
http://www.businessweek.com/finance/...-02142012.html

[blangtang]

Good news for DVN

"We're focused on oil opportunities," Devon Chief Executive John Richels said during a call with investors. "In 2012, virtually all of our capital will be directed to our oil and liquids-rich project areas."

Devon budgeted up to $5.5 billion for capital expenditure projects for 2012, down nearly a quarter from 2011. About 90% of that will be spent increasing acreage holdings or drilling activity in liquids-heavy fields, Richels said.

Devon said for 2012 it will invest $1 billion in the Permian Basin in west Texas and New Mexico, $950 million in the Barnett shale formation in East Texas, and $870 million in the Cana field in west Oklahoma. Devon spent about $400 million the fourth quarter acquiring acres in the sprawling Utica shale in the Midwest and another undisclosed area.

Devon will also boost its quarterly dividend by 18%, to 20 cents a share, Richels said

Saw an interview last night with the Richels guy and he said they are acquiring 3-500,000 acres in a new play but would not divulge where this new play was.

[ou48A]

http://finance.yahoo.com/news/Contin...33016.html?x=0

OKLAHOMA CITY, Feb. 22, 2012 /PRNewswire/ -- Continental Resources, Inc. (NYSE: CLR - News) reported EBITDAX of $411.9 million for the fourth quarter of 2011, an 86 percent increase over EBITDAX for the fourth quarter of 2010. The Company attributed the EBITDAX growth to strong oil and natural gas production growth.

Continental's production averaged 75,219 Boepd (barrels of oil equivalent per day) for the fourth quarter of 2011, a 57 percent increase over production of 48,034 Boepd for the fourth quarter of 2010. Crude oil accounted for 72 percent of Continental's fourth quarter 2011 total production.
"With this momentum, we now expect to grow production in a range of 37 percent to 40 percent for the year," Mr. Hamm said

[OKCTalker]

http://finance.yahoo.com/news/Contin...33016.html?x=0

OKLAHOMA CITY, Feb. 22, 2012 /PRNewswire/ -- Continental Resources, Inc. (NYSE: CLR - News) reported EBITDAX of $411.9 million for the fourth quarter of 2011, an 86 percent increase over EBITDAX for the fourth quarter of 2010. The Company attributed the EBITDAX growth to strong oil and natural gas production growth.

EBITDA I've got - what's the X at the end?

[ou48A]

EBITDA I've got - what's the X at the end?

I don’t know what the X means?
Maybe one of the boards more experienced / enlighten posters could inform us?

[FRISKY]

I don’t know what the X means?
Maybe one of the boards more experienced / enlighten posters could inform us?

It stands for "eXploration expenses."

[ou48A]

It stands for "eXploration expenses."

Thanks

[ou48A]

This is a good indication of good drilling results in the areas mentioned.

http://www.ogj.com/articles/2012/02/...-pipeline.html

HOUSTON, Feb. 21
02/21/2012
By Christopher E. Smith
OGJ Pipeline Editor

SemGroup Corp., Gavilon Group LLC unit Gavilon Midstream Energy LLC, and a unit of Chesapeake Energy Corp. plan to form a joint venture to build a 210-mile pipeline in western and north-central Oklahoma. The line will transport oil to a 1 million bbl storage facility in Cushing. The companies described the project as meeting growing midstream requirements resulting from drilling activity in western Oklahoma and the Mississippi Lime play.

The pipeline will consist of two laterals, one starting near Alva in Woods County, Okla., and the other near Arnett in Ellis County, Okla. The laterals will intersect near Cleo Springs in Major County, Okla., where the pipeline will increase in diameter and continue east to storage at Cushing.

The pipeline will have an initial capacity of 140,000 b/d, expandable to 180,000 b/d through additional horsepower. SemGroup will design, build, and operate the pipeline; Chesapeake is the project’s anchor shipper; and Gavilon will perform risk management and clear the shipped crude in the Cushing market.

The companies plan to begin building the pipeline in July for an in-service date of third-quarter 2013.

SemGroup unit SemCrude LP last year contracted to build 1.95 million bbl of additional crude oil storage at its Cushing terminal to service expanded flows from the Denver-Julesburg basin on its White Cliffs Pipeline

[ou48A]

TransCanada Corporation announces that the Cushing to U.S. Gulf Coast portion of the Keystone XL will be constructed due to significant increased crude oil production.

This is very good news for Oklahoma.

http://transcanada.com/5966.html

TransCanada Corporation (TSX, NYSE: TRP) (TransCanada) announced today it has sent a letter to the U.S. Department of State (DOS) informing the Department the company plans to file a Presidential Permit application (cross border permit) in the near future for the Keystone XL Project from the U.S./Canada border in Montana to Steele City, Nebraska. TransCanada would supplement that application with an alternative route in Nebraska as soon as that route is selected.

The company also informed the DOS that what had been the Cushing to U.S. Gulf Coast portion of the Keystone XL Project has its own independent value to the marketplace and will be constructed as a stand-alone Gulf Coast Project, not part of the Presidential Permit process. The approximate cost is US$2.3 billion and subject to regulatory approvals, we anticipate the Gulf Coast Project to be in service in mid to late 2013.

"Our application will include the already reviewed route in Montana and South Dakota," said Russ Girling, TransCanada's president and chief executive officer. "The over three year environmental review for Keystone XL completed last summer was the most comprehensive process ever for a cross border pipeline. Based on that work, we would expect our cross border permit should be processed expeditiously and a decision made once a new route in Nebraska is determined."

TransCanada will continue to work collaboratively with the State of Nebraska on determining an alternative route for Keystone XL that avoids the Sandhills. TransCanada has been working on assessing the routing in Nebraska since November 2011, following the State Department's notice to delay a decision on a Presidential Permit until an adjusted route that avoids the Sandhills was developed.

U.S. crude oil production has been growing significantly in States such as Oklahoma, Texas, North Dakota and Montana. Producers do not have access to enough pipeline capacity to move this production to the large refining market at the U.S. Gulf Coast. The Gulf Coast Project will address this constraint.

"The Gulf Coast Project will transport growing supplies of U.S. crude oil to meet refinery demand in Texas," added Girling. "Gulf Coast refineries can then access lower cost domestic production and avoid paying a premium to foreign oil producers. This would reduce the United States' dependence on foreign crude and allow Americans to use more of the crude oil produced in their own country."

Reapplying for the Keystone XL permit is supported by words used in President Obama's statement January 18, 2012 when he said the denial of the permit was not based on the merits of the pipeline but rather on an imposed 60-day legislative timeline to make a decision on the project.

With respect to moving forward on an initiative like the Gulf Coast Project, President Obama stated: "In the months ahead, we will continue to look for new ways to partner with the oil and gas industry to increase our energy security - including the potential development of an oil pipeline from Cushing, Oklahoma to the Gulf of Mexico."

TransCanada's commitment is to treat landowners with honesty, fairness and respect. The company has negotiated over 99 per cent of voluntarily easements in Texas and close to 100 per cent in Oklahoma. Easements make up the route of a pipeline and are similar to an easement for water, sewer and utility lines. Residents maintain ownership of the land and landowners receive a payment equal to or greater than the land's market value.

Keystone XL remains in the national interest of the United States as it would allow Americans to move closer toward achieving energy security and create thousands of much needed jobs. Building the Gulf Coast Project would be a positive step in creating approximately 4,000 jobs. From an energy security standpoint, the U.S. consumes 15 million barrels of oil each day and imports 10 to 11 million - forecasts suggest this will not change for decades. The Keystone XL project offers Americans a choice of receiving Canadian and U.S. oil through this pipeline system or continuing to import crude oil from unstable places such as the Middle East and Venezuela that do not share American values.

The U.S. manufacturing sector would continue to experience the economic benefits of the project, as TransCanada has contracts with over 50 suppliers across in the U.S. Manufacturing locations for our equipment include: Texas, Missouri, Pennsylvania, Michigan, Oklahoma, South Carolina, Indiana, Georgia, Maryland, New York, Louisiana, Oklahoma, Minnesota, Ohio, Arkansas, Kansas and California. There are hundreds of additional suppliers sub-contracted through our suppliers for our material and equipment.

[ou48A]

FYI
OKC’s Harold Hamm, CEO of CLR, will be on CNBC Tonight at 6 PM central