This document discusses factors that influence oil and gas exploration activity. It notes that exploration spending declined from $55.7 billion in 1981 to $26.6 billion in 1986 due to world events that increased oil prices. As prices rose, exploration increased, but later declined as prices softened. The areas most affected were Texas, Louisiana, Oklahoma, Kansas, Colorado and Alaska. It also examines how oil and gas firms finance exploration projects through debt contracts with investors and financial institutions. Debt contracts aim to address agency problems and limit operator discretion through covenants.
This investor presentation provides an overview of Penn Virginia Corporation (PVA):
1) PVA has transitioned to focus on oil and liquids-rich plays like the Eagle Ford Shale, growing oil production over 250% since 2010.
2) The company is executing a strategy of continued drilling in the Eagle Ford with an inventory of up to 250 well locations, while maintaining gas assets for potential future price recovery.
3) Challenges include the capital intensity of the industry and building financial liquidity, which PVA is addressing through asset sales and reducing spending and dividends.
PVA is an E&P company focused on transitioning to oil and liquids production. It has built up a position in the Eagle Ford shale through drilling and leasing, with over 25,000 net acres and up to 250 well locations. PVA has successfully grown its oil and NGL production in recent years while retaining substantial gas assets. The company is taking steps to improve liquidity and focus on further expanding its oil reserves and drilling inventory through continued activity in the Eagle Ford and testing a new Viola Lime oil prospect. PVA's strategy is aimed at continuing its transition to oil and liquids in order to grow production and cash flows in the current environment of higher oil prices relative to natural gas prices.
- Teekay LNG Partners owns and operates liquefied natural gas (LNG) and liquefied petroleum gas (LPG) carriers under long-term, fixed-rate charters and is focused on expanding its fleet through acquisitions and new project opportunities.
- The presentation discusses Teekay LNG's growth opportunities through bidding on new LNG shipping and regasification projects and securing long-term contracts for two new LNG carrier newbuildings.
- Forward-looking statements note factors like availability of LNG shipping projects, changes in LNG/LPG production or trading patterns, and market fundamentals that could impact Teekay LNG's growth opportunities and ability to secure new
Teekay Corporation First Quarter Earnings PresentationTeekay Corporation
Teekay Corporation reported its Q1-2015 earnings, with the following highlights:
- Consolidated cash flow from vessel operations increased 21% compared to Q1-2014.
- Adjusted net income was $15.7 million, up from $3.5 million in Q1-2014.
- The Knarr FPSO commenced operations in March and is expected to be sold to Teekay Offshore in Q2-2015.
- Teekay expects to implement a new dividend policy in Q2-2015, increasing its dividend by approximately 75% to $0.55 per share annually.
- PVA is a small-cap E&P company focused on oil and liquids-rich plays like the Eagle Ford Shale, with excellent drilling results to date in the Eagle Ford
- PVA is executing a strategy to transition from natural gas to oil and liquids, through its Eagle Ford position and other oil-focused assets
- Key catalysts for PVA include further exploratory success in the Eagle Ford, increasing Eagle Ford production and margins, and selling its Granite Wash assets to boost liquidity
1. The presentation provides an overview of Penn Virginia Corporation (PVA), an independent oil and gas exploration and production company focused on oil and natural gas liquids plays like the Eagle Ford Shale.
2. PVA has successfully transitioned its portfolio towards more oil and liquids-rich assets through acquisitions and drilling in plays like the Eagle Ford Shale, growing its oil and NGL production significantly since 2010.
3. PVA believes it is attractively valued relative to its peers, trading at a discount on key valuation metrics like price-to-earnings and enterprise value to EBITDAX, given its higher oil and liquids weighting and growth profile.
1. The presentation provides an overview of Penn Virginia Corporation (PVA), an independent oil and gas exploration and production company focused on oil and natural gas liquids plays like the Eagle Ford Shale.
2. PVA has successfully transitioned its portfolio towards more oil and liquids-rich assets through acquisitions and drilling in plays like the Eagle Ford Shale, growing its oil and NGL production significantly since 2010.
3. PVA believes it is attractively valued relative to its peers, trading at a discount on key valuation metrics like price-to-earnings and enterprise value to EBITDAX, given its higher oil and liquids weighting and growth profile.
The document provides guidance on accounting for costs incurred on oil and gas exploration, development and production activities. It discusses two methods - successful efforts and full cost - for accounting for acquisition, exploration and development costs. Under successful efforts, unsuccessful exploration costs are charged to expense while under full cost, even unsuccessful costs are capitalized. The document also provides guidance on accounting for other costs like support equipment, abandonment costs, impairment of assets and interests in joint ventures. Extensive disclosures around reserves and costs are also required to be made as per the guidance.
This investor presentation provides an overview of Penn Virginia Corporation (PVA):
1) PVA has transitioned to focus on oil and liquids-rich plays like the Eagle Ford Shale, growing oil production over 250% since 2010.
2) The company is executing a strategy of continued drilling in the Eagle Ford with an inventory of up to 250 well locations, while maintaining gas assets for potential future price recovery.
3) Challenges include the capital intensity of the industry and building financial liquidity, which PVA is addressing through asset sales and reducing spending and dividends.
PVA is an E&P company focused on transitioning to oil and liquids production. It has built up a position in the Eagle Ford shale through drilling and leasing, with over 25,000 net acres and up to 250 well locations. PVA has successfully grown its oil and NGL production in recent years while retaining substantial gas assets. The company is taking steps to improve liquidity and focus on further expanding its oil reserves and drilling inventory through continued activity in the Eagle Ford and testing a new Viola Lime oil prospect. PVA's strategy is aimed at continuing its transition to oil and liquids in order to grow production and cash flows in the current environment of higher oil prices relative to natural gas prices.
- Teekay LNG Partners owns and operates liquefied natural gas (LNG) and liquefied petroleum gas (LPG) carriers under long-term, fixed-rate charters and is focused on expanding its fleet through acquisitions and new project opportunities.
- The presentation discusses Teekay LNG's growth opportunities through bidding on new LNG shipping and regasification projects and securing long-term contracts for two new LNG carrier newbuildings.
- Forward-looking statements note factors like availability of LNG shipping projects, changes in LNG/LPG production or trading patterns, and market fundamentals that could impact Teekay LNG's growth opportunities and ability to secure new
Teekay Corporation First Quarter Earnings PresentationTeekay Corporation
Teekay Corporation reported its Q1-2015 earnings, with the following highlights:
- Consolidated cash flow from vessel operations increased 21% compared to Q1-2014.
- Adjusted net income was $15.7 million, up from $3.5 million in Q1-2014.
- The Knarr FPSO commenced operations in March and is expected to be sold to Teekay Offshore in Q2-2015.
- Teekay expects to implement a new dividend policy in Q2-2015, increasing its dividend by approximately 75% to $0.55 per share annually.
- PVA is a small-cap E&P company focused on oil and liquids-rich plays like the Eagle Ford Shale, with excellent drilling results to date in the Eagle Ford
- PVA is executing a strategy to transition from natural gas to oil and liquids, through its Eagle Ford position and other oil-focused assets
- Key catalysts for PVA include further exploratory success in the Eagle Ford, increasing Eagle Ford production and margins, and selling its Granite Wash assets to boost liquidity
1. The presentation provides an overview of Penn Virginia Corporation (PVA), an independent oil and gas exploration and production company focused on oil and natural gas liquids plays like the Eagle Ford Shale.
2. PVA has successfully transitioned its portfolio towards more oil and liquids-rich assets through acquisitions and drilling in plays like the Eagle Ford Shale, growing its oil and NGL production significantly since 2010.
3. PVA believes it is attractively valued relative to its peers, trading at a discount on key valuation metrics like price-to-earnings and enterprise value to EBITDAX, given its higher oil and liquids weighting and growth profile.
1. The presentation provides an overview of Penn Virginia Corporation (PVA), an independent oil and gas exploration and production company focused on oil and natural gas liquids plays like the Eagle Ford Shale.
2. PVA has successfully transitioned its portfolio towards more oil and liquids-rich assets through acquisitions and drilling in plays like the Eagle Ford Shale, growing its oil and NGL production significantly since 2010.
3. PVA believes it is attractively valued relative to its peers, trading at a discount on key valuation metrics like price-to-earnings and enterprise value to EBITDAX, given its higher oil and liquids weighting and growth profile.
The document provides guidance on accounting for costs incurred on oil and gas exploration, development and production activities. It discusses two methods - successful efforts and full cost - for accounting for acquisition, exploration and development costs. Under successful efforts, unsuccessful exploration costs are charged to expense while under full cost, even unsuccessful costs are capitalized. The document also provides guidance on accounting for other costs like support equipment, abandonment costs, impairment of assets and interests in joint ventures. Extensive disclosures around reserves and costs are also required to be made as per the guidance.
Teekay Tankers (NYSE: TNK) Investor Day Presentation September 30 2014Teekay Tankers Ltd
This document provides an overview of Teekay Tankers' investor day presentation. The summary includes:
1) Teekay Tankers discussed the tanker market fundamentals, noting improving market conditions in 2014 and projections for continued recovery through 2016 as tanker demand growth outpaces supply growth.
2) The presentation highlighted Teekay Tankers' strategy to position itself to benefit from the expected tanker market recovery, including increasing its spot market exposure and growing its fleet and fee-based revenues.
3) Teekay Tankers believes its operational platform and experience positions it well to pursue consolidation opportunities in the changing competitive landscape.
Lake Shore Gold exceeded production and cash cost targets in Q1 2012. Production was 16,180 ounces compared to a target of 15,000 ounces, and cash costs were $1,048 per ounce compared to a budget of $1,450. The company is on track with its development plans at the Timmins West and Thunder Creek mines to significantly increase production over the next two quarters. Exploration success also expanded resources and potential at the Fenn-Gib deposit.
Pa resources nordic energy summit 2013 21 march 2013PA Resources AB
PA Resources is an oil and gas company with operations in 9 countries and assets including 22 oil and gas licenses, 6 producing fields, and 9 potential commercial discoveries. In Q4 2012, average production was 7,100 barrels of oil per day. Key financial highlights from Q4 2012 include an operating profit of SEK 178 million after adjusting for one-time items, improved operating cash flow of SEK 175 million, and capital expenditures of SEK 186 million primarily for Azurite sidetrack preparations.
Teekay Corporation held an earnings presentation for Q1-2016. It reported adjusted net loss of $6 million compared to adjusted net income of $16 million in Q1-2015. Teekay and its daughter companies Teekay Tankers, Teekay Offshore, and Teekay LNG are pursuing various financing initiatives to strengthen their balance sheets and address near-term debt maturities. These initiatives include refinancing existing debt facilities, obtaining new debt financing, selling assets, and issuing equity. Successful completion of the financing plans is expected to improve the companies' liquidity and financial positions.
Teekay Tankers reported strong financial results in Q4-2015 compared to Q4-2014. The company generated adjusted net income of $48.5 million versus $18.6 million in the prior year quarter. Free cash flow increased to $74.0 million from $31.7 million. Looking ahead, tanker demand fundamentals are expected to remain strong in 2016, driven by oil demand growth and fleet utilization. The company recently acquired vessels and expanded its presence in the US Gulf to capitalize on growing oil trade in the region.
William Young has over 35 years of experience leading acquisitions, capital raises, and major projects totaling over $10 billion for midstream and upstream energy companies. He has expertise in areas such as business development, operations, logistics, finance, and regulatory compliance. The document outlines his extensive professional experience holding high-level positions with companies such as Linc Energy Resources, Probe Resources, Hydro Gulf of Mexico, Gulfport Energy, Arkla, and United Energy Resources.
Teekay Corporation Fourth Quarter and Business Outlook 2015 PresentationTeekay Corporation
Teekay Corporation held a presentation on its Q4-2015 earnings and business outlook. It reported generating $401.4 million in cash flow in Q4-2015, up 30% year-over-year. For fiscal year 2015, it generated $1.4 billion in cash flow, up 35% over 2014. Teekay temporarily reduced its dividend to $0.055 per share to allow its two MLP subsidiaries, Teekay Offshore Partners and Teekay LNG Partners, to retain cash flows of around $450 million annually to fund growth projects without issuing new equity. This will increase the subsidiaries' distributable cash flow per unit in the future once projects are completed. Teekay
Teekay Tankers acquired 12 Suezmax tankers from Principal Maritime in late Q3-2015 and early Q4-2015. Eight of the vessels are undergoing drydocking, including modifications to improve fuel efficiency. The acquisitions were financed and have been accretive to earnings and free cash flow per share. Spot tanker rates remained strong in Q3-2015 compared to historical levels, though softened seasonally, and are expected to increase further in Q4-2015 and Q1-2016 due to higher oil demand and potential weather delays.
1) PA Resources' Tunisian Didon North production well was suspended after encountering unexpected minor faults that prevented oil from flowing, despite good reservoir saturation. The investment will be impaired in Q4.
2) In Equatorial Guinea, PA Resources' Aseng field is ahead of schedule, with first production expected in Q4 2011 of approximately 3,000 boepd net to PA Resources.
3) In Tunisia, production tests of PA Resources' Jelma well were unsuccessful, and future plans include evaluating results and assessing the permit's potential.
The document is a resume for William N. Young, III highlighting his extensive experience over 35+ years in senior leadership roles with energy companies, focusing on upstream and midstream natural gas assets. He has overseen over $10 billion in acquisitions, projects, and financings. The resume emphasizes his expertise in acquisitions, major project management, operations, safety, and developing startup companies in the oil and gas industry.
This document provides an investor presentation by Teekay Offshore Partners. It highlights Teekay Offshore's market leadership positions in harsh weather FPSOs and shuttle tankers. It also outlines the partnership's growth strategy of acquiring additional vessels and offshore projects from its sponsor Teekay Corporation. This includes potential acquisitions of 7 FPSO units and 4 new shuttle tankers. The presentation notes industry fundamentals are strong, with record oil drilling and development planned, driving increased demand for offshore production, storage and transportation assets like FPSOs and shuttle tankers.
Royal Gold presented information on its business and recent developments. It discussed its strong near-term growth outlook due to increasing production at its Mt. Milligan and Phoenix streams. It highlighted the quality of its producing royalty portfolio and over $1 billion in liquidity to fund future investments. The presentation contained forward-looking statements and noted various risks and uncertainties that could impact projections.
Federal Court Rules that Assignment of Oil/Gas Lease May Not Extinguish Liabi...Robert Burnett
Landowners are often alarmed and angered when they receive word that the oil/gas lease
they executed several years ago, after months of intense and personal negotiations, has
been assigned to an unknown, unfamiliar gas operator. This anxiety is amplified when the landowner’s phone calls or letters go unanswered, the royalty checks are late or are not made at all and the once well-maintained well pad site is now overgrown and in a state of disrepair. Can the landowner seek redress against the original gas operator? A federal court in Pittsburgh recently addressed this issue and suggested that the assignment of an oil/gas lease may not relieve the original gas operator from liability.
An ebook published by the law firm Porter Wright Morris & Arthur LLP. Contains several blog posts they've published on the topic of oil and gas lease issues for landowners. Our favorite article: My Sister is a Fractivist and Won’t Sign an Oil and Gas Lease. What Can We Do?
Grant Thornton provided corporate finance advisory services to Advanced Insulation plc, a leading supplier of high performance insulation and fireproofing services to the offshore oil and gas industry. They helped the company find a private equity partner, Growth Capital Partners, to take the business to its next phase of growth and achieve the company's objectives of incentivizing management and securing value for shareholders. Grant Thornton managed a three stage bidding process that generated significant interest and secured an outcome that was beneficial for all involved parties.
This document provides tips for investing in oil and gas drilling projects legitimately. It advises to obtain documentation like leases and insurance from operators, request cost estimates, and check references. Investors should avoid brokers, low revenue interests, and salespeople pushing them to quickly invest. The tips suggest getting advice from experienced operators, diversifying investments across multiple small deals, and contacting the document's source for more crude oil investing guidance.
This document contains a presentation by Ledger Partnerships about investing in oil and gas production. It discusses the company's strategy of purchasing producing oil and gas leases and consolidating them into portfolios to generate predictable cash flows. It notes the risks involved in oil and gas investments and that past performance is not indicative of future results. The presentation provides examples of production assets generating monthly revenues ranging from $9,000 to $110,000 and argues that current low oil and gas prices create opportunities to purchase production assets.
Oil and Gas Case Law Update: Recent Decisions Impacting Oil and Gas PracticeLisa McManus
Pennsylvania oil and gas jurisprudence continues to evolve. On April 2, 2015, PBI's panel of energy law practitioners provided a webinar update on the latest appellate decisions that are shaping energy law practice. Included is an overview of Sabella v. Appalachian Dev. Corp.; Citizens for Pennsylvania’s Future v. Ultra Resources, Inc.; Sisson v. Stanley; Harrison v. Cabot Oil & Gas; Pennsylvania Environmental Defense Foundation v. Commonwealth.
The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) are currently finalizing the accounting regulations for leases, expecting to issue the new standards before the end of 2015. The new regulations will require organizations to capitalize many of their operating leases and record them in their balance sheets as assets and obligations.
With high volumes of complex lease contracts for drilling, equipment and joint operations, oil and gas operators are one of the groups that are most affected by the upcoming lease accounting standards. To ensure that they have the IT systems, applications, processes and controls ready to comply and to allow for potentially lengthy lead times, experts strongly recommend organizations to start considering today how technology can help them prepare, long before adopting the standard.
New Nominations for Oil and Gas Leases Received in Colorado Joshua Wolcott
Combining his project management and investment banking abilities, Joshua “Josh” Neale Wolcott of Denver brokers deals around the United States to lease and develop lands using environmentally friendly processes. As part of the management team of Cimmaron Resources, Inc., headquartered in Denver, Joshua “Josh” Neale Wolcott is the director of operations and land.
Bayshore develops conventional and unconventional oil/gas prospects in North America and International via Exploration and Development, Joint venture with local energy companies and Potential Merger & Acquisitions.
Law firm Harrington, Hoppe & Mitchell have issued a memo with some great tips for landowners--things to mull over as you think about whether or not to re-lease, and if you do, under what conditions.
Teekay Tankers (NYSE: TNK) Investor Day Presentation September 30 2014Teekay Tankers Ltd
This document provides an overview of Teekay Tankers' investor day presentation. The summary includes:
1) Teekay Tankers discussed the tanker market fundamentals, noting improving market conditions in 2014 and projections for continued recovery through 2016 as tanker demand growth outpaces supply growth.
2) The presentation highlighted Teekay Tankers' strategy to position itself to benefit from the expected tanker market recovery, including increasing its spot market exposure and growing its fleet and fee-based revenues.
3) Teekay Tankers believes its operational platform and experience positions it well to pursue consolidation opportunities in the changing competitive landscape.
Lake Shore Gold exceeded production and cash cost targets in Q1 2012. Production was 16,180 ounces compared to a target of 15,000 ounces, and cash costs were $1,048 per ounce compared to a budget of $1,450. The company is on track with its development plans at the Timmins West and Thunder Creek mines to significantly increase production over the next two quarters. Exploration success also expanded resources and potential at the Fenn-Gib deposit.
Pa resources nordic energy summit 2013 21 march 2013PA Resources AB
PA Resources is an oil and gas company with operations in 9 countries and assets including 22 oil and gas licenses, 6 producing fields, and 9 potential commercial discoveries. In Q4 2012, average production was 7,100 barrels of oil per day. Key financial highlights from Q4 2012 include an operating profit of SEK 178 million after adjusting for one-time items, improved operating cash flow of SEK 175 million, and capital expenditures of SEK 186 million primarily for Azurite sidetrack preparations.
Teekay Corporation held an earnings presentation for Q1-2016. It reported adjusted net loss of $6 million compared to adjusted net income of $16 million in Q1-2015. Teekay and its daughter companies Teekay Tankers, Teekay Offshore, and Teekay LNG are pursuing various financing initiatives to strengthen their balance sheets and address near-term debt maturities. These initiatives include refinancing existing debt facilities, obtaining new debt financing, selling assets, and issuing equity. Successful completion of the financing plans is expected to improve the companies' liquidity and financial positions.
Teekay Tankers reported strong financial results in Q4-2015 compared to Q4-2014. The company generated adjusted net income of $48.5 million versus $18.6 million in the prior year quarter. Free cash flow increased to $74.0 million from $31.7 million. Looking ahead, tanker demand fundamentals are expected to remain strong in 2016, driven by oil demand growth and fleet utilization. The company recently acquired vessels and expanded its presence in the US Gulf to capitalize on growing oil trade in the region.
William Young has over 35 years of experience leading acquisitions, capital raises, and major projects totaling over $10 billion for midstream and upstream energy companies. He has expertise in areas such as business development, operations, logistics, finance, and regulatory compliance. The document outlines his extensive professional experience holding high-level positions with companies such as Linc Energy Resources, Probe Resources, Hydro Gulf of Mexico, Gulfport Energy, Arkla, and United Energy Resources.
Teekay Corporation Fourth Quarter and Business Outlook 2015 PresentationTeekay Corporation
Teekay Corporation held a presentation on its Q4-2015 earnings and business outlook. It reported generating $401.4 million in cash flow in Q4-2015, up 30% year-over-year. For fiscal year 2015, it generated $1.4 billion in cash flow, up 35% over 2014. Teekay temporarily reduced its dividend to $0.055 per share to allow its two MLP subsidiaries, Teekay Offshore Partners and Teekay LNG Partners, to retain cash flows of around $450 million annually to fund growth projects without issuing new equity. This will increase the subsidiaries' distributable cash flow per unit in the future once projects are completed. Teekay
Teekay Tankers acquired 12 Suezmax tankers from Principal Maritime in late Q3-2015 and early Q4-2015. Eight of the vessels are undergoing drydocking, including modifications to improve fuel efficiency. The acquisitions were financed and have been accretive to earnings and free cash flow per share. Spot tanker rates remained strong in Q3-2015 compared to historical levels, though softened seasonally, and are expected to increase further in Q4-2015 and Q1-2016 due to higher oil demand and potential weather delays.
1) PA Resources' Tunisian Didon North production well was suspended after encountering unexpected minor faults that prevented oil from flowing, despite good reservoir saturation. The investment will be impaired in Q4.
2) In Equatorial Guinea, PA Resources' Aseng field is ahead of schedule, with first production expected in Q4 2011 of approximately 3,000 boepd net to PA Resources.
3) In Tunisia, production tests of PA Resources' Jelma well were unsuccessful, and future plans include evaluating results and assessing the permit's potential.
The document is a resume for William N. Young, III highlighting his extensive experience over 35+ years in senior leadership roles with energy companies, focusing on upstream and midstream natural gas assets. He has overseen over $10 billion in acquisitions, projects, and financings. The resume emphasizes his expertise in acquisitions, major project management, operations, safety, and developing startup companies in the oil and gas industry.
This document provides an investor presentation by Teekay Offshore Partners. It highlights Teekay Offshore's market leadership positions in harsh weather FPSOs and shuttle tankers. It also outlines the partnership's growth strategy of acquiring additional vessels and offshore projects from its sponsor Teekay Corporation. This includes potential acquisitions of 7 FPSO units and 4 new shuttle tankers. The presentation notes industry fundamentals are strong, with record oil drilling and development planned, driving increased demand for offshore production, storage and transportation assets like FPSOs and shuttle tankers.
Royal Gold presented information on its business and recent developments. It discussed its strong near-term growth outlook due to increasing production at its Mt. Milligan and Phoenix streams. It highlighted the quality of its producing royalty portfolio and over $1 billion in liquidity to fund future investments. The presentation contained forward-looking statements and noted various risks and uncertainties that could impact projections.
Federal Court Rules that Assignment of Oil/Gas Lease May Not Extinguish Liabi...Robert Burnett
Landowners are often alarmed and angered when they receive word that the oil/gas lease
they executed several years ago, after months of intense and personal negotiations, has
been assigned to an unknown, unfamiliar gas operator. This anxiety is amplified when the landowner’s phone calls or letters go unanswered, the royalty checks are late or are not made at all and the once well-maintained well pad site is now overgrown and in a state of disrepair. Can the landowner seek redress against the original gas operator? A federal court in Pittsburgh recently addressed this issue and suggested that the assignment of an oil/gas lease may not relieve the original gas operator from liability.
An ebook published by the law firm Porter Wright Morris & Arthur LLP. Contains several blog posts they've published on the topic of oil and gas lease issues for landowners. Our favorite article: My Sister is a Fractivist and Won’t Sign an Oil and Gas Lease. What Can We Do?
Grant Thornton provided corporate finance advisory services to Advanced Insulation plc, a leading supplier of high performance insulation and fireproofing services to the offshore oil and gas industry. They helped the company find a private equity partner, Growth Capital Partners, to take the business to its next phase of growth and achieve the company's objectives of incentivizing management and securing value for shareholders. Grant Thornton managed a three stage bidding process that generated significant interest and secured an outcome that was beneficial for all involved parties.
This document provides tips for investing in oil and gas drilling projects legitimately. It advises to obtain documentation like leases and insurance from operators, request cost estimates, and check references. Investors should avoid brokers, low revenue interests, and salespeople pushing them to quickly invest. The tips suggest getting advice from experienced operators, diversifying investments across multiple small deals, and contacting the document's source for more crude oil investing guidance.
This document contains a presentation by Ledger Partnerships about investing in oil and gas production. It discusses the company's strategy of purchasing producing oil and gas leases and consolidating them into portfolios to generate predictable cash flows. It notes the risks involved in oil and gas investments and that past performance is not indicative of future results. The presentation provides examples of production assets generating monthly revenues ranging from $9,000 to $110,000 and argues that current low oil and gas prices create opportunities to purchase production assets.
Oil and Gas Case Law Update: Recent Decisions Impacting Oil and Gas PracticeLisa McManus
Pennsylvania oil and gas jurisprudence continues to evolve. On April 2, 2015, PBI's panel of energy law practitioners provided a webinar update on the latest appellate decisions that are shaping energy law practice. Included is an overview of Sabella v. Appalachian Dev. Corp.; Citizens for Pennsylvania’s Future v. Ultra Resources, Inc.; Sisson v. Stanley; Harrison v. Cabot Oil & Gas; Pennsylvania Environmental Defense Foundation v. Commonwealth.
The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) are currently finalizing the accounting regulations for leases, expecting to issue the new standards before the end of 2015. The new regulations will require organizations to capitalize many of their operating leases and record them in their balance sheets as assets and obligations.
With high volumes of complex lease contracts for drilling, equipment and joint operations, oil and gas operators are one of the groups that are most affected by the upcoming lease accounting standards. To ensure that they have the IT systems, applications, processes and controls ready to comply and to allow for potentially lengthy lead times, experts strongly recommend organizations to start considering today how technology can help them prepare, long before adopting the standard.
New Nominations for Oil and Gas Leases Received in Colorado Joshua Wolcott
Combining his project management and investment banking abilities, Joshua “Josh” Neale Wolcott of Denver brokers deals around the United States to lease and develop lands using environmentally friendly processes. As part of the management team of Cimmaron Resources, Inc., headquartered in Denver, Joshua “Josh” Neale Wolcott is the director of operations and land.
Bayshore develops conventional and unconventional oil/gas prospects in North America and International via Exploration and Development, Joint venture with local energy companies and Potential Merger & Acquisitions.
Law firm Harrington, Hoppe & Mitchell have issued a memo with some great tips for landowners--things to mull over as you think about whether or not to re-lease, and if you do, under what conditions.
This document provides an overview of the oil, gas, and energy law solutions available through LexisNexis. It highlights several authoritative treatises, analytical works, news sources, forms and model documents, case law, administrative materials, and blogs and articles related to emerging issues in energy law. The document emphasizes the comprehensive coverage LexisNexis offers across federal and state primary law, regulations, and secondary sources to support legal research and transactions in the energy sector.
Oil & Gas Programs
This session is a follow up to the introduction to private oil and gas investments given last October. The focus will be on recent Reg. D activity in leases, drilling, and royalty acquisitions. Discussion will also include opinions as to how this asset class differs from other alternatives and how it continues to deliver competitive economic benefits for investors. Additional topics include: Recent trends/opportunities, how to separate the excellent companies from the chaff, how to evaluate opportunities and implement due diligence best practices, liquidity considerations and exit plan strategies.
Moderator: Brad Updike, Mick & Associates
Panelists: Brett Evans, Hull, Evans, Kob LLP; Shawn Smith, FactRight LLC; Gail Schneck, Buttonwood Investment Services
The document discusses investing in oil shale deposits in the United States. It notes that U.S. reliance on foreign oil has decreased to its lowest level in over 20 years due to production from oil shale deposits, with imports down to 40% from 60% a few years ago. The largest known oil shale deposits in the world are in the U.S., with total known reserves of nearly 5 trillion barrels. Investing in finding, extracting, and delivering oil from these large domestic shale deposits is promoted as a way to profit from America's largest petroleum resource. Specific formations like the Bakken in North Dakota and Montana and areas in Texas and Louisiana are highlighted as particularly promising for continued oil and gas production.
A bill introduced into the 129th General Assembly in Ohio by Rep. Mark Okey (D-Carrollton) in July 2012. The bill is supposed to fix "predatory" practices by oil and gas companies. But it also introduces new drilling rules aside from leasing practices. This is anti-drilling legislation.
Erhc south africa conference october 2013 finalDan Keeney
ERHC Energy is a small independent oil and gas exploration company pursuing opportunities in sub-Saharan Africa. The company acquires early stage exploration assets with low entry costs and works to increase their value through geological and geophysical work. While exploration involves high risks, the business model aims to sell assets or the entire company at a significant profit once prospects are proven. ERHC has acquired new exploration blocks in Kenya, Chad, and São Tomé and Príncipe and is seeking partners to help develop the areas and validate their potential through drilling. Success could result in large valuation increases as seen with other African discoveries, though monetization is not guaranteed given the uncertainties of exploration.
ERHC Presentation at the 8th Annual Sub-Saharan Africa Oil & Gas ConferenceDan Keeney
ERHC Energy President and CEO Dr. Peter Ntephe presented during the opening day of the 8th Annual Sub-Saharan Africa Oil & Gas Conference, explaining how the decline in oil prices have impacted small exploration companies.
The document discusses PVA's transition from a natural gas producer to an oil and liquids producer through acquisitions in the Eagle Ford Shale. It has grown its oil and natural gas liquids production significantly and expanded its acreage position in the Eagle Ford. PVA's strategy is to continue developing the Eagle Ford, expanding its oil and liquids reserves and production, while retaining its substantial gas assets. This transition has shifted the value of PVA towards oil as oil and natural gas liquids prices have increased relative to natural gas prices.
1) The document is an investor presentation for Penn Virginia Corporation (PVA) that provides an overview of the company and its strategy.
2) PVA has transitioned its business strategy and capital investments toward oil and natural gas liquid plays like the Eagle Ford Shale, growing its oil production significantly.
3) The company aims to continue expanding its oil and liquids reserves and drilling inventory through continued development of the Eagle Ford and exploration of new oil prospects, while maintaining a conservative financial strategy and balance sheet.
PVA is an E&P company focused on transitioning from natural gas to oil production through development of its Eagle Ford Shale position. It has grown its Eagle Ford acreage and is seeing strong production and reserve growth from its Eagle Ford drilling program. PVA is also taking steps to improve its financial liquidity by selling non-core assets and reducing capital spending and dividends. Its strategy is focused on continued expansion of its Eagle Ford drilling inventory and reserves to grow its oil and liquids production and cash flows.
- PVA is a small-cap E&P company focused on oil and liquids-rich plays like the Eagle Ford Shale, with excellent drilling results to date in the Eagle Ford
- PVA is executing a strategy to transition from natural gas to oil and liquids, through increased drilling in plays like the Eagle Ford where it has over 23,000 net acres
- Key catalysts for PVA include further exploratory success in the Eagle Ford, improving production and cash flows from the Eagle Ford, and a potential Granite Wash asset sale to boost liquidity
PVA is an E&P company focused on growing its oil and NGL production and reserves. It has successfully transitioned to focus on oil-rich plays like the Eagle Ford shale through acquisitions and drilling. This strategy has increased revenues and cash flows as oil and NGL production rose 192% from 2010 to 2011. PVA will continue developing the Eagle Ford and testing new oil prospects while retaining gas assets for potential future price increases to further optimize its portfolio.
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1. DETERMINANTS OF OIL AND GAS
EXPLORATION ACTIVITY
By
NIKHIL SINGH
&
NAVEEN GUPTA
2. INTRODUCTION
• 1981-Domestic oil companies spent $55.7 billion
for developing oil and gas reserves
• 1986-Less than one half that US amount $26.6
billion
Factors responsible for this precipitous decline in
exploration and development expenditures:-
• 1978-1981 world events such as Iran-Iraq War
• Increased cooperation within OPEC
As a consequence of which oil price jump from $8-
$35 per barrel
3. Continued
• As world oil prices rose, so did domestic
exploration: large onshore and offshore
projects were planned and
undertaken.
• During the latter half of 1981 & early 1982 oil
prices softened.
• Some companies cut back their exploration
whereas many continued to issue new shares
and long term debt.
4. Continued
Reason for cutback
• Areas affected by hardest hit were
Texas,Louisiana,oklahoma,Kansas,
Colorado & Alaska.
• 1978-1983 – prices for newly found gas rose
from less than $1 -$2.70 per mcf(thousand
cubic feet).
5. Continued
Increase occurred
• But this increase was not forever due to
mild winters and severe gas glut
dropped the price from $2.70-$1.65 per
mcf.
Natural gas
price
Pipeline
deregulation
End user
substitution
from oil to
natural gas
6. Why do we need to know all this and
how it is helpful for economists?
• Structure of oil and gas industry also provides
opportunity to study the input and output of
investments projects.
• Accounting standards in this industry require
firms to release detailed information on their
capital structures.
• Not only different measures of the returns to
investment but also detailed information on
firm’s finances.
• It has price taking firms ,each producing a
relatively homogeneous good .
8. Expoloration vs Development
• Oil and gas firms divide their exploration &
development expenditures into three categories:-
1. Exploration
2. Development
3. Property acquistion
Eg:-Out of $30 billion in 1986 firms approxmiately
spent 37% on exploration and 52% on
development,rest of them went for acquiring
undeveloped oil & gas properties.
9. Continued
• “Exploratory” or “wildcats” drilling takes place on
unexplored land or at depths.
• In addition to drilling expenses,expenditures include :-
1. Basic geologic research
2. Applied geologic research
Stats :-In 1958->12,208 exploratory wells were
completed in US .Kansas(4174) and Texas(1503).
On an average from 1978-1986 only out one in four
exploratory wells yielded commercial quantities of oil
and gas.
10.
11. Continued
• “Development” takes place on properties proven
to contain oil or gas. Development drilling usually
involves locating a series of wells that “step out”
from the initial exploratory play or find.
• Development wells are required to improve the
recovery of oil from nearby wells.
• These expenditures include those for drilling and
completion(exclude expense assosciated with the
actual pumping or transportation of oil & gas)
12. Firms
Firms
explore
for oil
& gas
MAJOR(Rank among top 10-15 firms in industry )
Eg:-Texaco,Mobil
DIVERSIFIED(Somewhat smaller than the
majors,typically have a much smaller fraction of their
operations in oil and gas)
Eg:-Pacific lighting & union pacific.
INDEPENDENT COMPANIES(Range in size from several
person firms to large producing firms ,they mainly
explore and develop onshore properties ,tend to
emphasize natural gas exploration over oil exploration.)
Eg:-willard pease oil co,adobe oil and gas
13. EXPLORATION PROCESS AND WELL
COSTS
Some terms to know
Royalty interest:-landowner usually receives a per
acre fee and a production bonus.Operators
commonly grant landowners a one eighth(12.5%)
in the gross revenue generated by wells.
Large firms use their in-house
staff and public and private
geologic data bases to identify
prospects.
Smaller firms typically rely on
independent geologists and lease
brokers.
14. Some terms to know
• Override royalty:-some lease contract also invlove
third parties who put together the deal ,such as
geologists or lease brokers . These dealmakers
receive without cost ,an override royalty. It may
amount to between 1/32-1/16 of gross revenue.
• Standard lease agreement:-operator incurrs all
drilling and production costs the so called
“working “or “operating” interests in wells.
• Net revenue interest:-operators term the
remaining interest.
16. Continued
• Exploratory wells:-sunk set up cost=>lease
infection,drilling platforms , geophysical
research and site development.
• Development wells:-offsets , work-overs ,
secondary extension and step out.
Depending on the drilling process used and
the well test results , completion costs can
double or triple the cost of a well.
17. Continued
• $1-$2 million for a successful well (does not
include additional costs of abandoning wells
or completion costs.)
• On an average exploratory well is successful
one out of four or five tries.
• Operators require substantial financial capital
to obtain a successful well.
19. Empirical Model of Oil & Gas
Exploration and development
• Empirical model describe the investment
process, how capital investment for oil & gas
firms changes with swing in oil & gas prices.
• It does not, however, consider how a firm
finances its exploration & development
investments.
20. The model states, why firms
choose to hold large reserves
Large Inventories will reduce firms extraction cost.
Large inventories improves the chances of
recovering significant reserves through secondary
or tertiary drilling.
Increase in the level of reserves , increases the
productivity of exploration and developments.
21. Continued
To examine investment process, financial data were
assembled in between 1978-1986.
Sample data of 44 oil & gas firms were collected
from the list of top 400 oil & gas firms.
During this investment process, several firms
were acquired or merged with other firms.
22. continued
If a sample firm acquires another large oil & gas
firm, the firm data were pooled for prior years.
When firm acquires small firm or the acquired
firm’s assets were sold off, no adjustment were
made to the data.
This investment process comes out with the
information that the average firm in the sample
drilled between 15-30 net wells per year and in this
process investment was $10-$20 million on
exploration and development.
23. FINANCIAL ARRANGEMENTS IN
OIL AND GAS
In general, most of the oil and gas firms drill well
with financial backing of outside investors.
OIL & GAS FIRMS INVESTORS
Financial
Service
companies
Pipelines
Companies
& Refiners
Bank Loan
24. OIL AND GAS INVESTORS
When the outside investors are other oil & gas firms,
these outside firms typically have an active interest in
operators & operators wells.
For Ex:- In a farm outs, a lease holders allow
another firms to drill well on its leases in return for
an override or revenue interest. Typically the
leaseholders uses this kind of arrangements when
it needs extra drilling rig capacity or when it wishes
to purchase expertise in drilling a particular
geologic horizon.
25. Continued
Outside oil & gas investors finance
because of following reasons
1. Capacity constraints
2. Bankruptcy Risks
3. Tax incentives
4. Common pool problems
26. CONTRACT ISSUE
Firms & Investors face two major problems when
signing contracts:-
1. In many instances the operator has private
information about what contingencies might arise
& the operator need not have incentive to reveal.
2. Lenders face substantial monitoring & verification
costs, when trying to enforce contracts.
27. STORY LINE OF THE CONTRACT
o One operators warns investors “They make them
clearly understand that if they can’t afford to take their
money then they can’t afford to be in the oil business.
o Curiously, there must be other mechanism by which
outside investors affects on operators drilling plan
o The terms on which outside equity investors participate
in drilling projects differs across deals for variety of
reasons.
28. continued
o Relationship between operators and inventors is
through bonds or debt contracts.
o Debt contracts in this industry also recognize
agency problems & then attempt to control
them by limiting operator discretion.
o Debt holders also have difficult time in securing
their loans.
o Bank & Insurance companies provide most of
the oil companies debt capital.
29. Terms of Debt Contracts
1. In the agreement, Debt holders formally attach a
firm’s primary source of collateral, its reserves,
outsiders have a hard time in determining the
market value of firms reserves.
2. These institutions rarely make loans for specific
drilling projects, instead, they issue lump sum
amount of credits or revolving lines of credit.
30. Continued
3. To mitigate incentives problems, they often place
covenants & penalties in their debt contracts.
4. These contracts defines trouble as the failure to
maintain certain financial ratio.
5. Debt covenants also limits the flexibility of both
lender & borrower.
31. Conclusion
1. This presentation aims to explain the effects of
liquidity & other financial factors may have on the
exploration and development activities of oil & gas
firms.
2. It started with by noting that there were dramatic
changes in oil & gas industry between 1978-1986
that affected both firms investments opportunities
& their financial viability.
32. continued
Using an investment model that controlled for firms
investment opportunities, we found that financial
factors such as cash flow & current maturities of long-
term debt explained some variables in investment
spending.
Further we’ve seen role of debt contracts in placing
constraints on the firms. In particular, use of oil & gas
reserves as collateral.
Clearly, the availability of finance depends not just on
availability & cost of external finance but also on the
internal conditions that determines how a firms
allocate its own resources.
Editor's Notes
Increase in price can be explained from demand and supply curve
These cutbacks had a pronounced effect not only on the oil and gas
industry but also on economic and financial activity in a number of oilproducing
states
In addition, the oil and gas industry provides a
useful reference industry for evaluating the predictions of theoretical investment
Models
In contrast to investment studies that have samples of diversified firms with different production technologies here we can hold constant many technolo
Gical differences that affect the returns to investment.
For a typically exploratory well, firms spend anywhere from several 100,000-1000000 dollars.
During 1986, roughly 32,000 development wells were completed in
the United States, about 4.5 development wells for each exploratory well.
Table 7.1 also contains information on U.S. development spending
For example, according
to a recent issue of the Oil and Gas Investor, Donald Slawson, an independent
operator, recently developed several 8,000-foot wildcat wells in the
Wyoming Powder River basin. Each well cost about $150,000 to drill. Completion
costs on the successful wells were an additional $225,000 per well. In
contrast, Foreland Company drilled similar 7,500-8,500-foot wildcat wells
in tighter formations in eastern Nevada. Foreland's drilling costs averaged
$700,000 per well. Completion costs were an additional $600,000 per well
(Daviss 1987, 29-31).
Empirical Model provide baseline investment specification against which we can assess of financial variables on investment decisions.
Here the model simply assume that the total production(extraction) costs always have negative rate of change with respect to the Stock reserves of firms.
Information on the operation of these companies were gathered from a variety of public and private sources.
Small and medium size oil companies choose to drill their well on their owns, certainly because of lack of outside investors.
When the outside investors are other Oil and gas firms, these outside firms typically have an active interest in the operators & operators wells.
Ex:-- Companies with complementary assets
(drilling equipment, input suppliers) choose
to pool their resource so as to reduce their
transaction costs.