Sunday, January 30, 2011

ExxonMobil Sees Future Profit in Natural Gas

Expanding prosperity for a growing world population will drive an increase in energy demand of about 35 percent by 2030 compared to 2005, even with significant efficiency gains, and natural gas will emerge as the second-largest energy source behind oil, ExxonMobil said today as it released its new edition of Outlook for Energy: A View to 2030.
The growing use of natural gas and other less-carbon intensive energy supplies, combined with greater energy efficiency in nations around the world, will help mitigate environmental impacts of increased energy demand. According to the Outlook, global energy-related carbon dioxide emissions growth will be lower than the projected average rate of growth in energy demand.
“Our energy outlook clearly points to a growing demand for energy globally which reflects improving living standards for millions of people around the world. ExxonMobil will continue to invest in technology and innovation to develop new economic energy supplies to help meet this demand while looking for ways to reduce environmental impacts,” said Rex W. Tillerson, chairman and chief executive officer.
“The forecasts also show a shift toward natural gas as businesses and governments look for reliable, affordable and cleaner ways to meet energy needs,” Tillerson said. “Newly unlocked supplies of shale gas and other unconventional energy sources will be vital in meeting this demand.”
The Outlook for Energy is developed annually to help guide ExxonMobil’s global investment decisions. The company shares the findings publicly to increase understanding of the world’s energy needs and challenges. The outlook is the result of a detailed analysis of approximately 100 countries, 15 demand sectors and 20 fuel types and is underpinned by economic and population projections and expectations of significant energy efficiency improvements and technology advancements.
Rising electricity demand -- and the choice of fuels used to generate that electricity -- represent a key focus area, which will have a major impact on the global energy landscape over the next two decades. According to the outlook, global electricity demand will rise by more than 80 percent through 2030 from 2005 levels. In the non-OECD (Organization for Economic Co-operation and Development) countries alone demand will soar by more than 150 percent as economic and social development improve and more people gain access to electricity.
According to ExxonMobil’s Outlook, efforts to ensure reliable, affordable energy while also limiting greenhouse gas emissions will lead to polices in many countries that put a cost on carbon dioxide emissions. As a result, abundant supplies of natural gas will become increasingly competitive as an economic source of electric power as its use results in up to 60 percent fewer CO2 emissions than coal in generating electricity. Demand for natural gas for power generation is expected to rise by about 85 percent from 2005 to 2030 when natural gas will provide more than a quarter of the world’s electricity needs. Natural gas demand is rising in every region of the world but growth is strongest in non-OECD countries, particularly China where demand in 2030 will be approximately six times what it was in 2005.

Tuesday, January 25, 2011

Shale Still in Play for Some

Shale drilling takes a particular expertise. Recently we have seen companies with this expertise do very well as shales and their millions of barrels are just waiting to be tapped. At first, horizontal drilling was performed on natural gas wells, and recently this was expanded to oil. If we are to use the Bakken shale as an example, where drillers are getting about 95% oil, companies like Brigham Exploration Company (BEXP) or Continental Resources Inc. (CLR) are making a mint.
Carrizo Oil and Gas Inc (CRZO) has this expertise. Carrizo is in a situation that could be something great. They were founded in 2003 and since then they have been busy. As of December 31st of 2009, they had participated in drilling 786 wells. At that time they had a 73% success rate.

Carrizo has a sizeable position in the North Sea. They also have accumulated several shale acreages:
Fort Worth Barnett 47000 acres
Marcellus Shale 111290 acres
Marfa Basin 58000 acres
Fayetteville Shale 26000 acres
Eagle Ford Shale 20000 acres
Niobrara Shale 61000 acres
Carrizo's plan is strong organic growth. To do this they are drilling for gas in the Barnett and Marcellus. The Eagle Ford and Niobrara will be drilled for oil. They plan to drill the low risk Barnett Shale initially. Estimates have this location's proved reserves at 570 Bcfe with potential for an additional 780 Bcfe. There are 470 potential well sites (500 foot spacing) . They are planning on developing their Marcellus Shale position. They are planning on being much more aggressive with respect to their liquids positions. Due to the better margins, the Niobrara and Eagle Ford Shales are a priority. In 2010, Carrizo drilled 5 wells and frac'd 3 in Eagle Ford. Eagle Ford will have up to 2 rigs running this year. The Niobrara had 3 drilled and 1 frac'd, and are expecting at least one rig running. These two areas could add up to 7000 BOED sometime this year. At today's prices this will increase production by one-third and double revenue. 

Saturday, January 22, 2011

How Do You Frac a Well

Activist shareholder groups are pressing natural gas companies to reduce the environmental impact of a drilling technique called hydraulic fracturing.
The investor groups say they have filed resolutions with nine oil and gas companies that use hydraulic fracturing, or "fracking," to extract gas from shale formations thousands of feet underground. Critics contend that fracking has the potential to pollute groundwater. The industry says it is safe.
The shareholder proposals ask drillers to explain how they plan to manage the risks associated with fracking. The shareholders also want full disclosure of fracking chemicals, a reduction in the volume and toxicity of the chemicals and improvements in well construction

Friday, January 21, 2011

Chinese Participate in USA Well Drilling Program

PORTLAND, OR--(Marketwire - January 20, 2011) - Xun Energy, Inc. ("XNRG") (OTCBBXNRG) Xun Energy, Inc. announces the Company will participate in a planned 15 well drilling program with Global Energy Acquisitions, LLC and its affiliates ("GEA"). GEA is a Florida limited liability company. GEA intends to drill 15 oil and gas wells on a 416 acre parcel located in Adair County, Kentucky. Each well will be drilled to a depth of up to 2,000 feet in order to reach the Murfreesboro or Knox Formations. The targeted date for the completion of the $2,550,000 funding requirement has been set to February 28, 2011.
Upon the success of the drilling program, GEA will pay to XNRG up to 12.5% gross royalty on revenues generated from the drilling program. XNRG's participation will be based upon XNRG's investment in GEA's 15 well drilling program. XNRG's participation interest has not yet been established.
Peter Matousek, the Company's president, commented, "The agreement with GEA provides the Company with an opportunity to participate in an oil and gas program which would provide the Company with steady cash flow." 
About GEA
GEA is in the business of investing in oil and natural gas exploration programs.
About XNRG
Xun Energy, Inc. is a development stage company with limited assets. The Company's prospects will be subject to securing financing and the success of the drilling program.
This Press Release contains forward-looking information within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements provisions contained in the Private Securities Litigation Reform Act of 1995 and any amendments thereto. Such forward-looking statements by definition involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. In particular, there is no assurance that reserves, production, pricing levels or other factors pertaining to the oil and gas operations will be sustained at the expected rates or levels over time. Discussions of factors, which may affect future results, are contained in our recent filings. Under no circumstances does this Press Release constitute an offer to sell or a solicitation of an offer to buy the securities of the company described in this Press Release in which such offer, solicitation or sale of securities would be unlawful prior to registration, qualification or filing under the securities laws of any jurisdiction.
For Further information on this news release or on XNRG, please visit or contact XNRG's Investor Relations Department, telephone: 1-775-200-0505, e-mail address:

Thursday, January 20, 2011

Encana Selling Natural Gas Plant

Encana (TSX:ECA, NYSE: ECA) said Tuesday it has agreed to sell its Fort Lupon natural gas processing plant to Western Gas Partners (NYSE: WES) for $303 million.

The plant, located in Colorado, processes about 84 million cubic feet per day (MMcf/d) of natural gas. The sale also includes five natural gas gathering pipeline systems and associated compression facilities.

Under the agreement, Encana USA has processing fees that allows the company to extract about 3,500 barrels of natural gas liquids per day from its processed natural gas. 

"This divestiture is part of Encana's ongoing initiative to capture significant incremental value from its midstream assets -- natural gas processing plants, pipeline gathering systems and compression facilities,” said Renee Zemljak, an executive at Encana.  

“We are looking to enter into long-term and competitive fee-for-service agreements with industry-leading midstream companies.”

Encana is also trying to sell its Cabin Gas Plant, which has received regulatory approval for two phases of development for a total processing capacity of 800 MMcf/d.  The plant is in the early stage of constructing the first phase, which is designed to have capacity of about 400 MMcf/d.  The plant is scheduled to start processing natural gas from Horn River, British Columbia in 2012.

The sale of the Fort Lupon plant, subject to regulatory approval, is expected to close in the first quarter of 2011.  

Monday, January 17, 2011

Anderson Energy Ltd Update

CALGARY, ALBERTA--(Marketwire - Jan. 17, 2011) - Anderson Energy Ltd. ("Anderson Energy" or the "Company") (TSX:AXL) is pleased to provide an update of its Cardium drilling operations and its 2011 capital budget.
As of January 16, 2011, the Company has drilled 24 gross (17.2 net) Cardium horizontal oil wells with a 100% success rate. Of these wells, twenty gross (13.4 net) Cardium wells have been placed on production. The remaining four wells are expected to be producing in February 2011.
In November 2010, the Company reduced its interstage frac density from 100 meters to 75 meters with improved initial productivity when compared to offsetting wells. In January 2011, the Company conducted its first operated water based frac. The completion costs of this well are expected to be approximately $500,000 less than other oil based 18-20 tonne fracs. Initial oil production rates from the first water frac have been encouraging. The Company is continuing to evaluate the merits of water based fracs. If further evaluation is positive, this may prove to be a method to significantly decrease the costs of Cardium completions and improve economic returns.
The Company continues to add land through farm-ins, acquisitions and property swaps. The Company's non contingent drilling inventory has grown to 143 gross (85.3 net) development locations. Ultimate potential drilling inventory based on three wells per section is 309 gross (180 net) drilling locations. The Company has increased the Cardium prospective land that it owns or controls to 103 gross (60 net) sections of land.
In 2010, the Company developed Cardium horizontal core areas in Garrington, Willesden Green and Pembina East. This winter, a new Cardium core area is being developed in Ferrier. In each core area, tank batteries are built and individual wells drilled off pads are pipelined to the tank batteries further increasing efficiencies and decreasing operating costs. The Company consolidates its position in each core area through land acquisitions and farm-ins.

Wednesday, January 12, 2011

Devon's Nichols Bullish on Natural Gas

The chairman of Devon Energy Corp. says he expects a "revolution" in the growing use of natural gas as a power source for electricity generating facilities across the country according to press reports.
Devon co-founder and Chairman Larry Nichols made the comments Tuesday during a "Legislative Boot Camp" for new Oklahoma lawmakers sponsored by The State Chamber it was widely reported in the press.
Oklahoma City-based Devon is a natural gas and oil exploration and production company that employs more than 5,400 people worldwide and  Nichols says the growing use of technologies like hydraulic fracturing and horizontal drilling has dramatically boosted the amount of natural gas available in the United States for use and recovery. And while he says he predicts natural gas prices to remain fairly low this year, he says he expects prices to rebound as the nation's economy recovers from the recent recession and further uses of natural gas are exploited.

Tuesday, January 11, 2011

Honda to Offer Natural Gas Civic

Honda Motor Co. says it plans to sell a natural-gas version of its new Civic sedan in all 50 states starting this year. The company currently sells around 1,500 natural-gas Civics each year, mostly to government fleets. Until now, it only sold natural-gas Civics to individual buyers in four states.
Natural gas-burning vehicles produce lower emissions, and 98 percent of the natural gas used in the U.S. comes from North America. But there are only 1,000 natural gas fueling stations in the U.S.
Honda is also releasing a gas-electric hybrid version of the Civic.  Honda introduced the new Civic on Monday at the Detroit auto show. It has a more aerodynamic, chiseled look than the outgoing Civic. The compact sedan goes on sale this spring. 

Friday, January 7, 2011

Apache Production at Balboa Field

HOUSTONJan. 6, 2011 /PRNewswire/ -- Apache Corporation (NYSE, Nasdaq: APA) today announced that hydrocarbon production has begun at its Balboa Field, located on East Breaks Block 597.  Initial gross flow rates have stabilized at approximately 30 million cubic feet of natural gas and 1,400 barrels of oil per day. Apache's subsidiary is the operator of the field and holds a 50 percent working interest.
Balboa is located in estimated water depths of 3,350 feet approximately 130 miles south of Galveston, Texas.  The field is a one-well development with a six-mile tieback to the Anadarko-operated Boomvang spar on East Breaks 643. The reservoir features oil-bearing sandstones with a natural gas cap. The well has been completed near the crest of the structure to optimize overall hydrocarbon recovery. This completion was designed to initially produce natural gas and liquids with increasing liquids and decreasing gas volumes throughout the life of the field.
"Subsea tieback technology has significantly improved the economics for deepwater developments by lowering the threshold for commercial accumulations," said John Crum, co-chief operating officer and president -- North America. "Through acquisitions completed in 2010, Apache now has both the capability in-house and the portfolio of properties in the deepwaterGulf of Mexico to exploit assets such as Balboa and add shareholder value."
Apache assumed operatorship of Balboa with the acquisition of Mariner Energy in November 2010.  The field commenced production on Dec. 28, 2010.
Apache Corporation is an oil and gas exploration and production company with operations in the United StatesCanadaEgypt, the United Kingdom North Sea, Australia and Argentina. Apache posts announcements, updates, investor information and all press releases, on its website,
Forward-looking statements
This news release contains certain "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 including, without limitation, expectations, beliefs, plans and objectives regarding production and exploration activities. Any matters that are not historical facts are forward-looking and, accordingly, involve estimates, assumptions, risks and uncertainties, including, without limitation, risks, uncertainties and other factors discussed in our most recently filed Annual Report on Form 10-K, recent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K available on our website,, and in our other public filings and press releases. There is no assurance that Apache's expectations will be realized, and a number of factors could cause actual results to differ materially from projections, anticipated results or other expectations expressed in this news release, including Apache's drilling risks, and the ability to execute on production and development plans. We assume no duty to update these statements as of any future date. However, readers should review carefully reports and documents that Apache files periodically with the Securities and Exchange Commission.

Thursday, January 6, 2011

Natural Gas Processing Plant for West Virginia

MarkWest Liberty Midstream & Resources, L.L.C., a partnership between MarkWest Energy Partners, L.P. (NYSE: MWE) and The Energy & Minerals Group, today announced the development of a midstream natural gas processing complex in Logansport, West Virginia.

MarkWest Liberty will construct a 120 million cubic feet per day (MMcf/d) cryogenic gas processing facility and associated natural gas liquids (NGL) pipeline by mid 2012 to process liquids-rich gas transported in EQT Corporation’s Equitrans gas pipeline, which recently announced a significant expansion to increase transmission capacity. EQT has substantial rich-gas Marcellus acreage in northern West Virginia and has contracted with MarkWest Liberty for the majority of the Logansport plant capacity. The NGLs recovered at Logansport will be transported via pipeline to MarkWest Liberty’s fractionation, storage, and marketing complex in Houston, Pennsylvania.
The Logansport complex is MarkWest Liberty’s third processing complex serving Marcellus production in southwestern Pennsylvania and northern West Virginia. The new processing facility and associated NGL pipeline significantly expands the integrated processing, fractionation, and NGL marketing services that MarkWest provides to producers in the Appalachian region.
“We continue to expand our midstream presence in the rich-gas area of the Marcellus and the Logansport complex will allow EQT and other producers to fully develop their Marcellus acreage in Wetzel and Doddridge counties,” said Frank Semple, Chairman, President and Chief Executive Officer of MarkWest. “We are excited to access significant new Marcellus acreage and to take advantage of the tremendous downstream takeaway options for residue gas on the Equitrans system, including Equitrans’ planned expansion to five interstate pipelines. MarkWest Liberty is the largest provider of midstream services in the rich-gas areas of the Marcellus and is committed to continue investing significant capital to develop the critical midstream infrastructure necessary to meet our producer customers’ long-term needs.”
"We are excited about the strategic value created from the combination of MarkWest's industry leading Appalachian processing and fractionation footprint with EQT's Equitrans pipeline header system expansion," said Randall Crawford, Senior Vice President of EQT. "The linking of NGL processing with downstream transportation will provide the critical infrastructure solution to facilitate the development of EQT’s and other liquids-rich Marcellus acreage in northern West Virginia."
About MarkWest Energy Partners
MarkWest Energy Partners, L.P. is a master limited partnership engaged in the gathering, transportation, and processing of natural gas; the transportation, fractionation, marketing, and storage of natural gas liquids; and the gathering and transportation of crude oil. MarkWest has extensive natural gas gathering, processing, and transmission operations in the southwest, Gulf Coast, and northeast regions of the United States, including the Marcellus Shale, and is the largest natural gas processor in the Appalachian region.
About The Energy & Minerals Group
The Energy & Minerals Group is the management company for a series of private equity funds totaling in excess of $2.5 billion of commitments. EMG focuses exclusively on making direct investments across the natural resources industry in conjunction with experienced management teams focused on hard assets that are integral to existing and growing markets. For additional information on EMG, please contact John Raymond at 713-579-5000.
This press release includes “forward-looking statements.” All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Actual results could vary significantly from those expressed or implied in such statements and are subject to a number of risks and uncertainties. Although MarkWest believes that the expectations reflected in the forward-looking statements are reasonable, MarkWest can give no assurance that such expectations will prove to be correct. The forward-looking statements involve risks and uncertainties that affect operations, financial performance, and other factors as discussed in filings with the Securities and Exchange Commission. Among the factors that could cause results to differ materially are those risks discussed in the periodic reports filed with the SEC, including MarkWest’s Annual Report on Form 10-K for the year ended December 31, 2009, and Quarterly Report on Form 10-Q for the quarter ended September 30, 2010. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading “Risk Factors.” MarkWest does not undertake any duty to update any forward-looking statement except as required by law.

Tuesday, January 4, 2011

Natural Gas Prices Could Go Up in 2011

NEW YORK, NY--(Marketwire - January 3, 2011) - 2010 marked a year that most natural gas investors would like to forget. The reason for the drop in prices and stocks was simply supply and demand. Natural gas supplies have grown in recent years as new technologies have made it easier for producers to unlock previously unreachable reservoirs in onshore shale formations. Some natural gas producers have vowed to reduce natural gas drilling until the gas becomes more valuable, however the chances of supply being greatly reduced are minimal. In the last few months, reports have surfaced implying that the industry appears to be taking steps to avoid catastrophe, though the outlook is highly dependent on political action and (as always) the weather. The Bedford Report examines investing opportunities in natural gas and provides research reports on Chesapeake Energy Corporation (NYSECHK) and Petrohawk Energy Corporation (NYSEHK). Access to the full company reports can be found at:
According to the Energy Department, around 52 percent of American households use natural gas for heating. While weather forecasts still call for a cooler-than-usual winter, a recent government report showed there was an adequate supply of natural gas to meet cold-weather needs, while the US Energy Information Association (EIA) said that natural gas in storages declined by 89 billion cubic feet.
The Bedford Report releases regular market updates on the natural gas so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at and get exclusive access to our numerous analyst reports and industry newsletters.
Going forward there is slightly more optimism surrounding natural gas. Analysts argue that the natural gas oversupply in the United States could make the nation a major natural gas exporter in upcoming years. Demand for gas is soaring in Asia and other emerging markets as their economies expand.
More liquefied natural gas export facilities could be developed going forward. The Wall Street Journal reported that a subsidiary of Cheniere Energy is working on a deal to supply liquefied natural gas to one of China's largest independently owned natural gas companies. Chesapeake Energy's Chief Executive Aubrey McClendon told investors at a conference he has been in talks with Cheniere to supply gas to the proposed facility. While Cheniere would still need to build the liquefaction facility, the company's CEO believes that interest in the project from natural gas suppliers such as Chesapeake, as well as Chinese interest "confirms the global appetite for US natural gas."
The Bedford Report provides Analyst Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above-mentioned publicly traded companies. The Bedford Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at