Changing Times in the Oil Industry and What's in Store for Potential Growth in 2018
Information contained on this page is provided by an independent third-party content provider. Frankly and this Site make no warranties or representations in connection therewith. If you are affiliated with this page and would like it removed please contact email@example.com
PALM BEACH, Florida, February 12, 2018 /PRNewswire/ —
MarketNewsUpdates.com News Commentary
According to the EIA – U.S. Energy Information Administration – the estimated U.S. crude oil production averaged 10.2 million barrels per day (b/d) in January, up 100,000 b/d from the December level. EIA estimates that total U.S. crude oil production averaged 9.3 million b/d in 2017 and will average 10.6 million b/d in 2018, which would mark the highest annual average U.S. crude oil production level, surpassing the previous record of 9.6 million b/d set in 1970. EIA forecasts that 2019 crude oil production will average 11.2 million b/d. Oil-market fundamentals appear to be changing as recent increases in prices provided incentive for the U.S. to crank up output. In an article published recently by the Oil & Gas Journal, the industry will continue its slow recovery as upstream companies increase production, helping the midstream and services businesses as well, according to Moody’s 2018 outlook. Moody’s outlook is stable for the integrated oil and gas business over the next 12-18 months. Earnings will rise about 5% even as conditions remain strained as companies seek greater returns on upstream investments. The outlook for drilling and oil field services companies is also positive; with earnings likely to rise 10-12% as upstream capital spending and the global rig count continue to increase. Notable companies in the markets this week include Stamper Oil & Gas Corp. (TSX-V: STMP) (OTCQB: STMGF), Valeura Energy Inc. (TSX: VLE.TO), Suncor Energy Inc. (NYSE: SU) (TSX: SU.TO), Chesapeake Energy Corporation (NYSE: CHK), Southwestern Energy Company (NYSE: SWN).
Stamper Oil & Gas Corp. (TSX-V: STMP) (OTCQB: STMGF) (FSE: TMP2) is pleased to provide the following update on its operations in Sudan. Recently, Rawat C-10 well on Block 25 was drilled resulting in a discovery, proving up the economics of the well. It had impressive flow rates of 2,255 barrels per day (two thousand two hundred fifty five barrels) in two zones. The management believes that this discovery will add to the evaluated reserves previously announced in the (“Chapman Reserves Evaluation Report”) on January 23, 2018. Read this and more news for Stamper Oil & Gas at:http://www.marketnewsupdates.com/news/stmgf.html
Stamper Oil & Gas Discovery – The development well Rawat C-10 was drilled down to the Galhak sands of campanian age. Results from the drill stem tests (DST) within zones at 1,550m through 1,566m contributed to impressive oil flow rates of 2,065 barrels per day. A second test area in the Galhak sands at intervals tested 1,587m through 1,599m had oil flow rates of 190 barrels per day Correlation between the wells RC5-RC10-RC6 clearly indicates prospective Galhak sands for forthcoming additional potential infill wells. Well logs of all correlating wells indicate additional multiple oil bearing zones to be tested on completion.
The discovery of development well Rawat C-10 and the high oil flow rates gives management more confidence and complements Stamper’s aggressive development strategy put forth in the Oil & Gas reserves and economics evaluation report (“Chapman Reserves Evaluation Report”) for Stamper on the Sudan development prospect under National Instrument 51-101 (“NI 51-101”). Third party seismic interpretation within central basin shows potential Galhak sands run across the central sub basin at places formation thickness is recorded up to few hundred meters. Earlier test reports of drilled wells in Rawat central sub basin suggest flow rates range from 350 bbl/d to 1,741 bbl/d are significantly lower than new discovery well being reported.
David Greenway Chief Executive Officer of Stamper Oil & Gas, commented, “We are anticipating that we will receive an update from Chapman Petroleum Engineering on evaluated reserves shortly. We believe this will support the Company’s execution plan for our Sudan assets and to deliver growth in net asset value per share for our shareholders.”
In other industry related developments in the markets:
Valeura Energy Inc. (TSX: VLE.TO) announced last week that, in connection with its previously announced bought deal financing, Valeura and the syndicate of underwriters led by GMP FirstEnergy and including Cormark Securities Inc. (collectively, the “Underwriters”), have agreed to increase the size of the financing (the “Offering”). Valeura will now issue 10,527,000 common shares at $5.70 per common share for aggregate gross proceeds of approximately $60 million. The Corporation expects to use the net proceeds of the Offering to fund the continued appraisal of its basin-centered gas play in Turkey and for general corporate purposes.
Suncor Energy Inc. (NYSE: SU) (TSX: SU.TO) recently announced it recorded fourth quarter 2017 operating earnings of $1.310 billion ($0.79 per common share) compared to $636 million ($0.38 per common share) in the prior year quarter. Highlights of the quarter include improved crude oil pricing and benchmark crack spreads, lower operating and exploration costs, refinery utilization of 94%, higher sales volumes at Oil Sands and continued strong upstream production. Improved benchmark pricing in the quarter was partially offset by the strengthening of the Canadian dollar. Funds from operations were $3.016 billion ($1.83 per common share) compared to $2.365 billion ($1.42 per common share) in the fourth quarter of 2016 and were influenced by the same factors impacting operating earnings noted above. Cash flow provided by operating activities, which includes changes in non-cash working capital, was $2.755 billion for the fourth quarter of 2017, compared to $2.791 billion for the fourth quarter of 2016.
Chesapeake Energy Corporation (NYSE: CHK) last week provided an update to certain operational results for the 2017 fourth quarter as well as recent asset divestiture activity. Highlights include: Average 2017 fourth quarter production projected at 593,000 boe per day, including oil production of 100,000 barrels per day, as previously targeted – Three Mid-Continent sales agreements for approximately $500 million – Sold approximately 4.3 million shares of FTSI for proceeds of $78 million, retain approximately 22.0 million shares – Average daily production for the 2017 fourth quarter is currently projected to be approximately 593,000 barrels of oil equivalent (boe) per day, representing an increase of 15% year over year and 10% sequentially when adjusting for asset sales. This volume consisted of approximately 100,000 barrels of oil, 2.6 billion cubic feet of natural gas and 59,500 bbls of natural gas liquids per day. The increase in production was primarily driven by stronger oil production from the company’s Eagle Ford operating area, as well as from significantly higher gas production from its Marcellus and Haynesville operating areas.
Southwestern Energy Company (NYSE: SWN) last week announced several strategic steps to reposition its portfolio, sharpen its focus on the Company’s highest return assets, strengthen its balance sheet and enhance its financial performance. These initiatives are: Actively pursue strategic alternatives for the Fayetteville Shale E&P and related midstream gathering assets; Identify and implement structural, process and organizational changes to further reduce costs; Utilize funds realized from the foregoing to reduce debt, supplement Appalachia development capital, potentially return capital to shareholders, and for general corporate purposes.
DISCLAIMER: MarketNewsUpdates.com (MNU) is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. MNU is NOT affiliated in any manner with any company mentioned herein. MNU and its affiliated companies are a news dissemination solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. MNU’s market updates, news alerts and corporate profiles are NOT a solicitation or recommendation to buy, sell or hold securities. The material in this release is intended to be strictly informational and is NEVER to be construed or interpreted as research material. All readers are strongly urged to perform research and due diligence on their own and consult a licensed financial professional before considering any level of investing in stocks. All material included herein is republished content and details which were previously disseminated by the companies mentioned in this release. MNU is not liable for any investment decisions by its readers or subscribers. Investors are cautioned that they may lose all or a portion of their investment when investing in stocks. For current services performed MNU has been compensated forty-four hundred dollars for news coverage of the current press releases issued by Stamper Oil & Gas Corp. by a non-affiliated third party. MNU HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and MNU undertakes no obligation to update such statements.
©2017 PR Newswire. All Rights Reserved.