Home » February 29th, 2012 Entries posted on “February, 2012”

CBSRC-23-1714830A1 – UH-60 Aircraft General Repair Mechanic

Job Description

Requisition Number: EGG63935
Interest Category: Operations Maintenance
Interest Sub Category: Operations Maintenance
Job Title : UH-60 Aircraft General Repair Mechanic
Employment Category/Status: full-time
Type of Position: Regular Hire
Country: U.S.State: Colorado
City: Fort Carson

Minimum Requirements: URS Corporation is hiring a qualified Aircraft General Repair Mechanics in support of RESET program at US Army aircraft maintenance facility in Ft. Carson, CO.High School graduate or equivalent with a minimum five (5) years actual and recent MWO/RESET level aircraft maintenance / repair experience is required.Must have completed military aviation maintenance training or aviation maintenance technical school curriculum or possess an FAA issued AP license.Only prior U.S. Army MOS (15U / 15T) UH-60 airframe maintenance trained experienced candidates will be preferred.Knowledge and use of special tools/equipment required to perform assigned maintenance tasks is mandatory.Must be able to meet physical requirements associated with and/or pass any medical examination requirements related to performing daily assigned tasks.May be required to pass and maintain a U.S. Government background security check.“Must be able to speak, read, write and understand English�

Job Description:
The Aircraft Mechanic I troubleshoots malfunctions in aircraft structure, landing gear, flight surfaces and controls, anti-icing, pneudraulic, engines, auxiliary power unit, and ventilation and heating systems. This mechanic repairs, replaces, and rebuilds aircraft structures, such as wings and fuselage, and functional components including rigging, surface controls, and plumbing and hydraulic units, using hand tools, power tools, machines, and equipment such as shears, sheet metal brake, welding equipment, rivet gun, and drills. This worker reads and interprets manufacturers’ and airline’s maintenance manuals, service bulletins, technical data, engineering data, and other specifications to determine feasibility and method of repairing or replacing malfunctioning or damaged components. This mechanic performs 100-hour, progressive, isochronal, phase, periodic, and other hourly or calendar inspections, examines reciprocating engines for cracked cylinders and oil leaks, and listens to operating engine to detect and diagnose malfunctions, such as sticking or burnt valves, inspects jet engines and components for cracks, corrosion, foreign object damage, burned areas, distortions, security, warping, wear, and missing segments. Inspects jet engine turbine blades to detect cracks, distortion, corrosion, burn-out, security, or breaks, tests engine operation, using testing equipment, such as ignition analyzer, compression checker, distributor timer, ammeter, and jet calibration (Jetcal) tester, to locate source of malfunction. Work involves: replacing or repairing worn or damaged components, such as carburetors, alternators, magnetos, fuel controls, fuel pumps, oil pumps, and engine mounted gearboxes, and compressor bleed valves using hand tools, gauges, and testing equipment; removing engine from aircraft, using hoist or forklift truck, disassembling and inspecting parts for wear, cracks, security, or other defects, and repairing or replacing defective engine parts and reassembles and installs engine in aircraft. Job duties require that this mechanic: adjusts, repairs, or replaces electrical wiring system and aircraft accessories, performs preflight, thru-flight, and post-flight maintenance inspections, performs miscellaneous duties to service aircraft, including flushing crankcase, cleaning screens and filters, greasing moving parts, and checking brakes. This incumbent supervises the jacking and towing of aircraft, enters in the maintenance records description of the work performed and verifies the work was performed satisfactorily, may service engines and airframe components at line station making repairs, short of overhaul, required to keep aircraft in safe operating condition, may specialize in work, repair and modification of structural, precision, and functional spare parts and assemblies, and may specialize in engine repair. This worker may be required to be licensed by Federal Aviation Administration.Overtime is mandaotry as required.To be considered, candidates must submit a resume directly online at www.bestworkofyourlife.com.For more information please call 469-888-4418.


Article source: http://www.careerboard.com/job/1737611-UH_60-Aircraft-General-Repair-Mechanic.aspx

February 29th, 2012 | Posted in Jobs | Read More »

CBSRC-23-1568712A4 – Oil & Gas Leader – Program Director

Job Description

Requisition Number: URS62198
Interest Category: Project/Program Management
Interest Sub Category: Program Management
Job Title : Oil Gas Leader – Program Director
Employment Category/Status: full-time
Type of Position: Regular Hire
Country: U.S.State: Colorado
City: Denver

Minimum Requirements: Minimum Bachelors Degree in business, environmental, engineering or similar field, or demonstrated related experienceMinimum of ten years of program experience and minimum of 20 years of combined experience in project/program management, construction and project related experience, including management of staff during the pre-construction and design phases. Minimum of 15 years of experience working for or with Oil, Gas and/or Pipeline companies specifically in engineering and/or environmental projectsMust possess strong leadership and organizational skills and be capable of managing teams to deliver desired resultsCreative high level strategic thinker capable of generating ideas, insight, and analyses, while increasing value for the business unitStrong communication skills with the ability to garner influence across the organization and at the highest levels of the organizationMust be self-assured and confident in business situationsStrong writing, business development and program management skills requiredThis position requires successful completion of the URS Project Management Certification program within 6 months of hire. This certification program is a series of learning modules and is available on-line through the URS Learning Management System at no financial cost to the employee.

Job Description:
Responsible for the growth, development and execution of URS’ Oil and Gas practice in the Mountain Region.Primary accountabilities for this position include: Responsible for identifying, developing and prioritizing pursuit of new opportunities to grow and diversify services to existing and new oil and gas clients. Will work with Oil and Gas team, Client Account Managers and Client Service Leaders, and local offices on these endeavors. Develops and orchestrates strategies to develop relationships, leading to securing Master Service Agreements (MSAs) with new oil and gas clients that meet URS’ risk profile and financial requirements. Lead and/or support, as appropriate, primary proposal efforts to bid and win major project opportunities, and on occasion serve as Senior Project Director, Manager or Senior Technical Advisor. Identify and hire key technical staff, as needed, to grow and diversify US Oil and Gas Business. Interface with URS’ Oil, Gas and Pipeline Leadership Teams on a national basis, and Global/National client account teams to ensure a quality service delivery. Assist in development and review of Strategic Business Plans for Offices and Regions that target serving key Oil and Gas clients and pursuit/capture of strategic opportunities with same.Other duties as required


Article source: http://www.careerboard.com/job/1737613-Oil-~26-Gas-Leader-_-Program-Director.aspx

February 29th, 2012 | Posted in Jobs | Read More »

CBSRC-246-1753615A0 – Sales Support Specialist

– Experience in Syteline preferred
– Intermediate computer skills with experience in Microsoft Office
– Ability to read and interpret documents such as safety rules, operating and maintenance instructions, and procedure manuals
– Ability to write routine reports and correspondence
– Ability to speak effectively before groups of customers or employees of the organization
– Intermediate Skills – Ability to calculate figures and amounts

Why join one great company when you can join many? We are more than 280,000 people with jobs that range from biochemist to finance specialist to wind energy engineer. We’re passionate about making life better with new ideas and technologies. We’re diverse, supporting our communities in more than 140 countries. Experience personal growth and competency development as part of the GE team. GE Energy is leading the field in the development, implementation and improvement of the products and technologies that harness our resources such as wind, oil, gas and water.

GE Oil Gas is a world leader in advanced technology equipment and services for all segments of the oil and gas industry, from drilling and production, LNG, pipelines and storage to industrial power generation, refining and petrochemicals. We provide pipeline integrity solutions, including inspection and data management, and also design and manufacture wire-line and drilling measurement solutions for the oilfield services segment. GE Oil Gas employs more than 12,000 people worldwide and operates in over 100 countries. By working closely with our customers to execute, we deliver innovation when it’s needed most – today. Be part of the innovation now!

To stay connected with exciting news and the latest job opportunities from GE AMSTC, Aviation, Energy and Transportation, follow us on twitter: @geconnections

Article source: http://www.careerboard.com/job/1735716-Sales-Support-Specialist.aspx

February 29th, 2012 | Posted in Jobs | Read More »

CBSRC-23-1752156A0 – Civil-Bridge Engineer

Job Description

Requisition Number: URS64434
Interest Category: Engineering
Interest Sub Category: Engineering – Transportation
Job Title : Civil-Bridge Engineer
Employment Category/Status: full-time
Type of Position: Regular Hire
Country: U.S.State: Maryland
City: Hunt Valley

Minimum Requirements: Bachelors level degree in Civil Engineering, with a concentration or courses in Structural/Geotechnical Engineering. Two or more years of relevant experience.Candidate must possess a current NBIS-Compliant Bridge Inspection Training Certification.Proficiency in Steel/Concrete Design and Analysis. Ability to perform field work (bridge inspections, drilling inspections, etc).Proficiency in using Structural Design and Analysis software, as well as Microsoft Office software.Good communication skills both verbal and written and an aptitude for technical report writing.Valid Driver’s License.

Job Description:
Engineer working under senior engineers in the Bridge Structures Group. Will perform calculations that will be checked by more experienced engineers.Day-to-day job duties will include: Bridge design and analysis Bridge inspections Geotechnical design and analysis Geotechnical field inspections/drilling monitoringMay be required to spend periods of time in the field performing inspections.URS does not accept unsolicited resumes from third party agencies or recruiters. No fee will be paid to third parties who submit unsolicited candidates directly to hiring managers. All resumes must be submitted by the applicant to be considered for a position at URS.


Article source: http://www.careerboard.com/job/1737625-Civil_Bridge-Engineer.aspx

February 29th, 2012 | Posted in Jobs | Read More »

Transocean says may face $473 million U.S. tax bill

By Braden Reddall

(Reuters) – Transocean Ltd (VTX:RIGN) (NYS:RIG) may face $473 million in U.S. back taxes, according to its annual filing, though it also said it was cleared in a similar dispute dating back eight years, which may give its lawyers a useful precedent.

Transocean, owner of the world’s largest offshore oil rig fleet, said the latest assessment received this month for 2008 and 2009 related to accounting between subsidiaries, for both engineering services performed between them and transfer pricing for rig charters.

“If the authorities were to continue to pursue these positions with respect to subsequent years and were successful in such assertions, our effective tax rate on worldwide earnings with respect to years following 2009 could increase substantially,” said Transocean, which booked an overall 2011 income tax expense of $395 million.

The $473 million of proposed adjustments exclude interest, but the company said in the filing released this week that it believed its tax returns were correct and planned to defend against the claims.

The company declined to comment further on Wednesday.

Problems with transfer pricing, generally, have grown with globalization of the world economy. The issue involves how to tax the earnings of foreign affiliates that transfer goods and services between themselves.

By setting internal transfer prices higher or lower than market value, foreign affiliates can shift profits from high-tax countries to low-tax countries, reducing the parent company’s overall tax burden with the Internal Revenue Service (IRS).

“You can be a reasonable pig, but when you turn into a hog, the IRS comes after you,” said Larry Langdon, a former IRS commissioner for large mid-size business who is now at law firm Mayer Brown.

This is an especially important issue for rig contractors, since most of their assets are not fixed in one place.

Following President Barack Obama’s 2008 election, Transocean moved to Switzerland from the Cayman Islands to secure a low-tax domicile. Noble Corp (NYS:NE) made the same shift soon after, and Ensco Plc (NYS:ESV) then went to Britain in a move that Rowan Cos Inc (NYS:RDC) said on Tuesday it would mimic.

In Norway last year, authorities indicted two Transocean-owned companies and some advisers over suspicions of tax fraud, alleging underpaid taxes of up to $1.8 billion.

The company has also faced other U.S. tax disputes in the past, including claims related to transfer pricing in 2004, though Transocean said a U.S. tax judge ruled in its favor on January 12 in that case and the adjustments were withdrawn.

The U.S. tax authorities also withdrew previously proposed adjustments for 2005, apart from about $50 million related to rig charter transfer pricing between its subsidiaries.

Langdon of Mayer Brown described that as a “win” for Transocean. “It established what the rules should be for them going forward,” he said.

The company is still fighting a 2010 U.S. tax assessment of $278 million for 2006 and 2007 involving accounting between units, $295 million related to capital gains adjustments for 2006 to 2009 and a total of $248 million more for witholding taxes and penalties.

Transocean had enjoyed a good start to this week after reporting better-than-expected results and booking a lower-than-expected $1 billion charge related to the 2010 Gulf of Mexico disaster that destroyed one of its rigs.

Separately, Transocean said that Quantum, its partner in the joint venture which owns two ultra-deepwater rigs working for Reliance Industries (NSI:RELIANCE) off India, had exercised its option to exchange its stake for cash or Transocean shares.

The price will be negotiated for half of the JV, which has debts of $978 million, and Quantum must choose by March 29 whether to receive cash or shares, the latter based on a price of $49.69 each, Transocean said in a statement on Wednesday.

(Reporting by Braden Reddall in San Francisco and Kevin Drawbaugh in Washington; Editing by Bernard Orr, Tim Dobbyn and Bob Burgdorfer)

Article source: http://us.rd.yahoo.com/finance/news/rss/story/*http://finance.yahoo.com/news/transocean-says-may-face-473-004536897.html

February 29th, 2012 | Posted in Exploration | Read More »

EV Energy Partners’ CEO Discusses Q4 2011 Results

EV Energy Partners (EVEP) Q4 2011 Earnings Call February 29, 2012 5:00 PM ET


Good day ladies and gentlemen. Thank you for standing by. Welcome to the EV Energy Partners fourth quarter and full year 2011 earnings conference call. [Operator instructions.] I would now like to turn the conference over to Mr. John Walker, executive chairman. Please go ahead sir.

John Walker

Thank you. I’m calling from Houston’s Intercontinental Airport while the rest of our team is in EVEP’s offices in Houston. Mike Mercer will elaborate on our financial results, but results were generally in line with guidance except for GA expense, and I want to explain that.

On approximately $450 million of acquisitions in the fourth quarter, we recognized $2.3 million of due diligence and transaction related costs that flowed through to both EBITDA as well as distributable income.

Also, we recognized roughly a $4 million impairment charge on some noncore Austin properties that are going to be sold later this quarter. And that’s offset by the $4 million we received from Total and [unintelligible] from the sale of the assets in the Point Pleasant Utica NGL window.

Also, based upon successful efforts accounting, we had $9 million in dry hole costs, and that was primarily from the two horizontal wells that we drilled in the San Juan Basin. We continue to do a very good job of dropping our per-unit LOE costs. In 2010 these were $1.92 per Mcf equivalent, and we dropped those to $1.81 in 2011 and for the fourth quarter it was $1.78. We continue to expect to drive down costs in 2012. Our replacement costs were $1.43 last year and our acquisition costs were $1.21 per Mcf equivalent.

Our acquisition strategy of basin concentration allows us to continue to lower costs in a difficult natural gas and ethane market. Based on expected production, EVEP is about 90% hedged in natural gas, NGLs, and oils this year and 80% next year.

I decided to reorganize EnerVest, the GP, of EVEP in December of last year. Three of our entities, EVEP, EnerVest Institutional GP, and EnerVest [unintelligible] and the leaders named as CEO of those units including Mark Houser of EVEP.

The organization was needed as a result of the $3 billion in acquisition growth EnerVest entities have had within the last two years, and the further need to get even more focused on our assets. My role as CEO of EnerVest has not changed.

A few weeks ago, EVEP completed a 4 million share offering including the [sole] overallotment option for $268 million net to the company to provide a stable and conservative balance sheet. The offering was roughly three-times oversubscribed from both retail and institutional investors and obviously we’re very pleased with that.

In the Utica, EnerVest entities have participated with Chesapeake in 27 wells and have 5 producing. I want to particularly highlight the Burgett well, which had higher condensate yields than all the previous producing wells and we’re also pleased with how well the Burgett well is holding up.

We’re encouraged that the completion process in the NGL window is significantly improving and costs and days to drill are coming down. EnerVest Operating is drilling its first Utica well, the Frank 2H for EVEP and [Fund] 11 in Stark County to address, along with Chesapeake and other operators, the best completion technique for the oil window, and we still plan to commence the monetization process for our Utica assets later in the second quarter.

Now Mike Mercer will go over our financials, guidance, and [unintelligible].

Mike Mercer

Thank you John. For 2011 our adjusted EBITDA and distributable cash flow were $212 million and $126 million respectively, which were increases of 43% and 34% over 2010. These increases were primarily due to acquisitions completed during the fourth quarters of 2010 and 2011. Distributions related to 2011 were approximately $118 million.

Production for the year was 29.2 Bcf of natural gas, 891,000 barrels of crude oil, and 1.096 million barrels of natural gas liquids, or 41.2 Bcfe. This is a 47% increase over 2010 production of 27.9 Bcfe and, once again, it was primarily due to acquisitions we completed during the fourth quarters of 2010 and 2011.

2011 net income was $102.6 million, or $2.71 and $2.68 per basic and diluted weighted average LP unit outstanding, respectively. Several items to note that were included in that income for the year were $35.5 million of unrealized gains on commodity and interest rate derivatives, primarily due to the decrease in future natural gas prices that occurred from the end of 2010 to the end of 2011, and the effect of such prices on the mark-to-market value of our outstanding derivative portfolio.

$9.8 million of noncash compensation related costs contained in GA expense. $2.9 million of property acquisition due diligence and transaction-related costs for the acquisitions we did in 2011 and a little bit of tail over from 2010 acquisitions. $12.1 million of dry hole and exploration costs for the year. $11 million of impairment costs, primarily that related to the divestiture of noncore oil and gas properties and assets held for sale at the end of the year, and a $4 million gain on the sale of assets related to a small amount of our Utica acreage that was part of the Chesapeake and Total agreement completed in December 2011.

For the fourth quarter of this year, adjusted EBITDA was $54.5 million, which is a 31% increase over the fourth quarter of 2010, once again primarily due to the acquisitions we completed during the fourth quarter of 2010, and a 4% increase over the third quarter of 2011. Distributable cash flow for the fourth quarter was $30.8 million, 15% over the fourth quarter of 2010 and flat versus the third quarter of 2011. Distributions paid for the fourth quarter or related to the fourth quarter, which were paid on February 14, were $29.8 million.

For the fourth quarter, production was 8.1 Bcf of natural gas, 235,000 barrels of crude, and 269,000 barrels of NGLs or 11.1 Bcfe. This is a 34% increase from the prior year’s fourth quarter production of 8.3 Bcf, once again due to our acquisition activity, and a 10% increase over the third quarter production of 10.1 Bcfe.

Fourth quarter net income was $9.7 million, or $0.27 per basic and diluted weighted average unit outstanding. Several items to note were $2.3 million of unrealized gains on our commodity and interest rate derivatives. There was quite a large decrease in future natural gas prices that occurred from the end of the third quarter to the end of the fourth quarter, but that effect was significantly offset by changes in crude oil prices during the quarter, an increase in crude oil prices.

$10.5 million of dry hole and exploration cost. As John had mentioned, about $9 million of that was related to two wells in the San Juan that we [DAed]. $4.4 million of impairment cost related to the noncore Austin Chalk assets John mentioned we’re holding for sale, which we’ll sell this quarter. The $4 million gain on the Utica assets that we previously discussed. $3.2 million of noncash compensation costs contained in GA, and the $2.3 million of property acquisition and due diligence and transaction related cost, which were related to the almost $500 million of acquisitions we announced and completed in the last half of 2011.

Now I’ll turn to guidance. As you can see, we put out guidance for each quarter for 2012 and a summary for the whole year. I won’t go through each guidance item by quarter, but I’ll just hit a couple of the highlights.

The production guidance range for the year is 154.4 to 170.4 Mmcfe per day. Expected production in the first quarter is slightly impacted by the fact that we did have a small part of the Encana Barnett acquisition, which didn’t close initially in December, but did finally close, as we had noted in a recent 8-K, during February of this year. So we’ll have part of that production for that final piece of the asset for part of the first quarter, but then for the remainder of the year.

Production is expected to grow through the year, with fourth quarter guidance range averaging approximately 8.5% higher than the production range for the first quarter of the year. Natural gas and crude oil price differential ranges versus Nimex are 96-103% on natural gas and 91-97% on crude oil.

We have a net transportation margin range on third-party transported volumes of $1.2 to $1.4 million. The guidance range for LOE, which includes gathering and transportation costs, is $101-$113 million. Production tax as a percentage of revenue, between 4% and 4.4% of revenue. Cash GA expense, which is typical with our guidance.

We do not include any potential acquisition or possible acquisition related due diligence and transaction costs, as we don’t have any right now that we have announced but haven’t closed on. That cash GA expense range is $23.6 million to $26.4 million, with a slightly higher relative amount in the first quarter. That’s typical for us in the first quarter of the year due to the cash costs that we have related to annual restricted unit investing that we have occurring in January of each year.

Capital expenditure range is $140-180 million, which does not include any amounts for any potential acquisitions of oil and gas properties.

Now I’d like to turn to our hedge position. At the end of the earnings release, we’ve highlighted our natural gas, NGL and crude oil hedges that we entered into since the end of 2011. We also, in a subsequent table, fold those in with the hedges that we had a year in, and it shows you our full hedge position that we now have as of the end of February.

Now, during December and the beginning of January, we did have a significant amount of hedging of natural gas, NGLs, and crude oil. The ones we added in December were more related to the acquisitions that we closed in December, significantly in the Barnett Shale acquisitions. But then at the beginning of the year, in January, we added quite a bit more hedges, natural gas and crude oil.

Now, most of these hedges that we added, there were some in 2014, but we added significantly to our hedge position in 2012 and 2013, so that, as John had earlier mentioned, we’re now approximately 90% hedged for 2012 and 80% hedged on expected production for 2013. So we have significantly mitigated – not eliminated, but mitigated – commodity price volatility from our potential results, all other things being held equal.

The last thing I’d like to note is that subsequent to the equity offering that we completed a few weeks ago, the debt under our credit facility was reduced. It is now at $420 million. What I’d like to do now is turn it over to Mark Houser to review our operations for the quarter and discuss a little bit of what our plans are for 2012.

Mark Houser

Thank you Mike, and good afternoon everybody. I’ll start with our year end proved reserves. At the end of last year, our 2010 SEC reserves were 817 Bcf equivalent, and through 2011 we’re now at 1.14 Bcf equivalent. That’s an increase of 327 Bs, or 40% for the year.

Our reserves are now 71% natural gas, 21% natural gas liquids, and 8% oil, and the reserves are 68% proved developed. Acquisitions accounted for about 380 Bcf of equivalent proved reserve additions in 2011 and divestments were 6. We have revisions and additions of -5, and production was 41 Bcf, as Mike had mentioned. So our all-in reserve replacement cost was around $143 per Mcf equivalent, and acquisitions, which accounted for most of our reserve additions, were made at a cost of about $1.20 per Mcf equivalent.

So, in summary, we’ve increased our reserves significantly during 2011, including a strong undeveloped position with a good liquids content in the Barnett and it’s mostly held by production in nature, and therefore we can throttle up or down activity depending on what commodity prices and costs are doing. And we’ve done all this at a low unit cost.

Our challenge now, our task, is to manage our portfolio. We’d like to be, over time, more around 80% PDP, so as we do acquisitions, particularly later this year, you’ll probably see us ramp that back up toward a more 80% type level.

Now, if I go to production and LOE, that’s already been spoken to a bit, but when I spoke to you last quarter, we had experienced some delays in bringing Barnett and Chalk wells online in the third quarter, and that had kept production at the low end of guidance. But I mentioned we were making progress late in the quarter. Some of that came to pass, and indeed we showed a good increase in production from the third to fourth quarter, and we fell within our range of guidance.

We’re still experiencing some line pressure problem issues in the Barnett, and it’s not just tied to the Barnett. Our first looping project reduced our back pressure in the Barnett, and we experienced about a million cubic feet a day rate gain there, and we have several other looping and compression projects in the area. We’re also continuing to work with the midstream folks to help bring these out over time and give us more capacity.

We had a really good quarter in controlling lease operating expenses. It ended up near the low end of the guidance. That’s a real credit to our guys in the field, who are also busy integrating our new acquisitions. The full year average unit cost declined by $0.11 to $1.81 per Mcfe, from $1.92, and our fourth quarter cost actually declined by about $0.13 versus the third quarter.

Now I’ll speak to capital. We had about $23 million that we spent over the quarter. Most of this activity was in three of our four current active growth areas, the Barnett, the Chalk, and our non-op activity in the mid-continent. In the Barnett, where EVEP holds a 31% interest, we had two rigs active all year, and drilled about 40 wells in 2011, not including some of the wells that were being drilled in the new acquisitions when we were closing.

We brought on 12 wells during the quarter, eight in October and another four in December. We have 4 more that were recently fracked and came online in February. Our drilling and completion guys continue to do a good job with keeping costs as expected, averaging about $2.2 million to drill and complete each well. And in the quarter, we were averaging about 10 days from spud to release, which is our best performance yet.

The well-side fees are still ranging from about $1.7 to $2.7 million a day, but on average around our targeted $2 million a day. We’d like to see a bit better IP, but appear to be experiencing slightly flatter decline rates on these wells. We’re already applying some of our learnings from all the drilling in the Barnett to our new areas.

Now I’ll move to the Chalk, where EVEP holds about a 13.5% interest. We drilled our targeted 18 wells, which is only about three net to EVEP during ’11, and we brought those three wells in October, and another two wells were brought online around the first of the year. We’re waiting on two more wells to be brought online.

Results across all 18 wells were pretty much as expected from a production perspective, and our guys kept costs around AFE levels. Just for your example, on average these are about 6.5 million a day wells and they average about 4-5 million equivalent per well, so pretty strong wells. You get a good component of that [oil and the other windows] of that.

The Chalk continues to be a great net cash flow provider for EVEP, and it’s been a wonderful acquisition for EVEP and all the EnerVest partnerships. Our mid-continent area continues to benefit mostly from our non-op activity. We participate in a large number of wells, somewhere around 170-200, with a very small interest in formations such as the [Takwa] and Cleveland granite wash and other formations.

Chesapeake, Sanguine, Chevron, and others are reasonably active in these areas, and we expect drilling to continue in the liquidy areas into 2012. And just a couple of examples in the granite wash, one of our most recent Sanguine wells, came on at 300 barrels a day and 2 million a day, and it’s producing from granite wash formation.

Again, this is the first horizontal test in an area called the Hog Shooter. We also had two other wells drilled by Chevron, the Ledbetter 4021H and 5021H, and Chevron is reporting that they made about a combined 1800 barrels a day and about 2.3 million a day. We have about a 24% net interest in those wells, so we’re really excited about some of that. Again, our information is a bit delayed on those, but it’s nice when we get that in.

If we go to Appalachia, our Appalachia conventional assets have been steady this past quarter. We’ve been a bit slower in the Knox, but as I said last quarter, we did pick up some late in the year. We’ve also been fortunate with some small [clinton] oil drilling, which helps keep things rolling and keeps our oil production reasonably flat.

In the Marcellus in West Virginia, both PetroEdge wells are online and they’re netting about 1 million a day each to our 7% net revenue interest. These are really strong wells. We expect another two wells to be drilled this year, and again, we’re getting carried on those.

So if I look now to acquisitions, if we include subsequent closing in early February, EVEP closed on $498 million of acquisitions in 2011. About $391 million of that is in the Barnett, the remainder for bolt-on acquisitions in existing operating areas, including the Southwest Oklahoma and conventional Ohio. We also sold about $9.8 million of noncore properties.

This level of acquisitions was surprisingly close to our stated goal of approximately $500 million, and our total acquisition costs were about $1.21. A majority of these assets were closed in the fourth quarter, and we have spent the past month integrating these assets. Operationally, we’re off and running.

From an accounting perspective, we’re still in a normal transition period with the sellers, so it will take a month or two before all our detailed information on production and expenses is being managed in house. But so far we appear to be in good shape.

So now let me turn to the Utica. Our Utica acreage position is about 150,000 net working interest acres. We also have the equivalent of a 7.5% override at over 230 net acres. On a growth acreage basis, this translates to about a 2% average override on 880,000 gross acres.

As has been disclosed, we at EnerVest are participants with Chesapeake and Total in a joint venture across several counties in the liquids-rich area of the Utica. The overall deal was $15,000 per acre, for a 25% interest in 619,000 acres. The consideration for the deal was 30% cash and a 70% carry, which we expect to be used over a 3-5 year period. More likely 3 or maybe even less.

EnerVest contributed a total of 77,000 acres into the deal, and EVEP was about 4,000 of that total. EVEP is also participating with a 9% interest in the gathering and a 6% interest in processing and fractionation for this area. We will provide more information on this opportunity as it evolves over the next few months.

The activity continues to increase in the Utica. Our last count had over 120 wells permitted, and Chesapeake alone is [unintelligible] 42. Seven are on production and 35 are waiting on completion. EnerVest entities have participated in 27 of these wells, with now 5 turns in line.

As we understand it, there are several other operators who are also active and moving in to test the potential oil window. EnerVest will participate in about 25-50 wells in the JV this year that’s still being planned out by Chesapeake, Total, and us. As a matter of fact, our guys are in a meeting over the last two days.

We will also participate in a few wells with other operators in the oil window. EnerVest is also partners in the two recent completions, the Burgett and the Shaw, in Carroll County, which were referenced to produce at peak rates of greater than 700 barrels and 3 million cubic feet a day.

We’re pleased with these flow rates, and particularly the condensate yields over the last month, which were around 150 barrels per million. In fact, looking at some economics based on what is a relatively short 1-month period, the economics of the Burgett suggest strong rates of return, very similar to what is being realized by many operators in some of the other liquids-rich shales.

We recently spudded our first EnerVest operated well, the Frank 2H well in Stark County. EnerVest plans on drilling 3-5 wells on our operated production this year, mostly in areas such as the eastern edge of the oil window and other place where it’s not being delineated thoroughly. Generally, EVEP will have a 20-40% interest in these wells.

As we have mentioned several times before, we are currently putting data together to pursue some form of monetization of some or all of our acreage position this year. We plan to formally start the process in the second quarter. We’re obviously visiting with many current and potential Utica participants already.

We will consider joint ventures, swaps, and/or outright sales. We hope to finalize this process sometime later in the year. Ron Gajdica, our head of AD, who has some good experience in doing joint ventures along with Phil Delozier, our head of business development for EnerVest, are playing key roles in coordinating this process. And as a matter of fact, that’s really one of Ron’s full time jobs right now.

So now if I look briefly at the overall budget, or overall guidance that Mike has spoken to, just to reiterate, we continue to believe that the MLP’s overall goal over time is moderately grow production organically, while leaving the dramatic growth to come from acquisitions. We require 20% return on any capital project at current prices.

That being said, our 2011 capital program is expected to range somewhere between $140 million and $180 million, which again doubles, or almost doubles, last year’s spending levels and will provide some growth in production as the year progresses.

This increase is mostly attributable to our larger Barnett position, particularly in the liquids or combo areas. Our mid-continent granite wash and Cleveland activity, ongoing Knox activity, and increased Utica activity, which will include our first EnerVest-operated wells, kind of finish out our capital program.

So if we assume the midpoint of around $160 million, about 80% is for drilling. About 40% of that will go into the Barnett, with about 94 growth wells, and we’ll have about 3-4 rigs running and can ramp up as it makes sense, although we’re not planning on that at this point.

About 20% of our capital will go into the mid-continent for mostly non-op granite wash Cleveland, etc. About 10% in the Knox, about 10% for Utica, including both our participation interest Chesapeake Total joint venture and EVEP’s share of 3-5 Utica operated wells. Again, as a reminder, on the Chesapeake Total acreage, it’s small for EVEP and we do have a carry.

So 2012 will be a very interesting year for EVEP as we move forward. We’ll be continuing our efforts to modestly grow production in areas where we’re making a return on capital while keeping costs down and continuing to create value in the Utica. While we focus on these areas, we’ll also continue to look for good acquisitions, particularly PDP-oriented deals, and we’ll likely be active in that market as things evolve later in the year.

So, with that, John, I’ll turn it back to you.

John Walker

Okay, thank you Mark. We’re ready for questions.

Article source: http://us.rd.yahoo.com/finance/external/trsa/rss/SIG=13i89hp06/*http://seekingalpha.com/article/403011-ev-energy-partners-ceo-discusses-q4-2011-results-earnings-call-transcript?source=yahoo

February 29th, 2012 | Posted in Exploration | Read More »

SeaDrill Still Tops Among Drilling Stocks



    Travis Hoium

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    SeaDrill (NYSE: SDRL  ) didn’t blow away the market this morning with its earnings report, but after choppy earnings from competitors, just meeting expectations may not be a bad thing. Transocean is still dealing with remnants of the Macondo Well oil spill, and Hercules Offshore is struggling in shallow water. But SeaDrill and Noble are performing very well in deep water.

    During the fourth quarter, SeaDrill said revenue increased slightly to $1.06 billion and operating profit fell 9% to $436 million. The company reported a loss of $82 million, or $0.23 per share, driven by a $463 million mark-to-market impairment of its investment in Archer Limited. Without the Archer loss, the per-share loss would have been about $0.81.

    Adding to future growth
    Earlier this week, SeaDrill announced orders for two more ultra-deepwater drillships to be delivered in 2014. The cost of these ships is $600 million total, but the opportunity for ultra-deepwater drilling is only expanding.

    The company recently signed contracts for three semi-submersible rigs totaling up to $1.6 billion in potential revenue, all in the ultra-deepwater segment. Capitalizing on this opportunity now is the right move.

    Bumping up the dividend
    One of the reasons I picked SeaDrill as my top drilling stock was its strong dividend. Well, it got even better today, at $0.80 per quarter. On a full-year basis, that’s a 7.7% yield at the current stock price.

    The dividend is nice for investors, but it also highlights management’s comfort level with risk. SeaDrill now has $9.99 billion of long-term debt and must pay for the new drillships in the coming years. I would have liked to see the extra cash used to reduce operational risk than pay investors at this stage in the game. If contract rates fall down the road, this is what could lead to trouble at SeaDrill.

    Foolish bottom line
    Right now, Noble and SeaDrill are the two top-performing drilling stocks with increasing focus on the ultra-deepwater market. SeaDrill continues to consistently perform well financially and pay a strong dividend, and until I see oil prices fall significantly or contract rates fall, I will hang on to this stock.

    Interested in reading more about SeaDrill? Add it to My Watchlist, and My Watchlist will find all of our Foolish analysis on this stock.


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    Article source: http://us.rd.yahoo.com/finance/external/mfool/rss/SIG=131ac2h5n/*http://www.fool.com/investing/general/2012/02/29/seadrill-still-tops-among-drilling-stocks.aspx?source=eptyholnk303100&logvisit=y&npu=y

    February 29th, 2012 | Posted in Exploration | Read More »

Marcellus & Utica Shale Story Links: Wed, Feb 29, 2012

Marcellus Utica Shale Story Links: Wed, Feb 29, 2012

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:

Exterran called just the start
That sentiment underscored global energy equipment supplier Exterran’s groundbreaking Tuesday for a 103-worker factory to serve oil and gas drillers pouring into eastern Ohio’s Marcellus and Utica shale fields.

Dryden Town Board schedules meeting on lawsuit
Ithaca Journal
The Dryden Town Board plans a special meeting to discuss the lawsuit against the town over its efforts to keep out hydraulic fracturing for natural gas exploration.

Southwestern Energy’s CEO Discusses Q4 2011 Results – Earnings Call Transcript
Seeking Alpha
Greetings, and welcome to Southwestern Energy’s Fourth Quarter Earnings Teleconference Call.

Chesapeake Midstream Partners, L.P. Reports Financial Results for the 2011 Fourth Quarter and Full Year
Business Wire
Chesapeake Midstream Partners, L.P. today announced financial results for the 2011 fourth quarter and full year.

Guessing Wrong
Morris Daily Herald
Natural gas has been good to Wyoming. The discovery of large shale deposits in the early 2000s put Wyoming at the center of a new energy boom in the West, bringing enough jobs to keep unemployment low through the recession and causing tax revenues to skyrocket.

Exterran gets tax incentive to build $13M Ohio facility
Business Journal
The Houston-based oil and gas production and processing company said it will build the new 65,000-square-foot facility, estimated to create 103 jobs in the next three years, in Youngstown, Ohio.

Commisioners to hold Marcellus Shale fee hearing
Centre Daily Times
The Centre County commissioners will hold a public hearing March 20 to discussing imposing a Marcellus Shale impact fee in the county.

Clearfield County to Consider Impact Fee Ordinance
The Clearfield County Commissioners authorized advertising the county’s consideration of an ordinance to adopt an unconventional gas well impact fee at Tuesday’s regular meeting.

Enforce Well Casing Regulations Strictly
Wheeling News
Gas wells into the Marcellus and Utica shale formations drive thousands of feet below the water table.

Keep feds out of shale, Ohio leader says
Keeping the U.S. government out of shale natural gas developments in Ohio will help transform the regional economy, a lawmaker stated.

Obama Loses His First Debate
The American Spectator
Lying is not going to rebut Newt Gingrich’s compelling understanding of America’s energy policy and huge energy reserves.

South Fayette schools urged not to transfer drilling lease
Pittsburgh Post-Gazette
Residents urged the South Fayette school board Tuesday night to deny reassigning the district’s natural gas drilling lease to a different driller.

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Related posts:

  1. Marcellus Utica Shale Story Links: Thu, Feb 23, 2012
  2. Marcellus Utica Shale Story Links: Wed, Feb 15, 2012
  3. Marcellus Utica Shale Story Links: Fri, Jan 20, 2012

Jim on February 29, 2012 | Filed Under Best of the Rest

Article source: http://feedproxy.google.com/~r/MarcellusDrilling/~3/Ztql0G34jdE/

February 29th, 2012 | Posted in Drilling & Production | Read More »

TEXT-Fitch assigns Southwestern Energy initial rating of ‘BBB-’

Wed Feb 29, 2012 12:40pm EST

Article source: http://www.reuters.com/article/2012/02/29/idUSWNA126420120229

February 29th, 2012 | Posted in Headlines | Read More »

PDC to suspend Marcellus drilling

Suspended: PDC Mountaineer to stop drilling in Marcellus until gas prices go up

Image courtesy of Keith Srakocic/AP/Scanpix

PDC to suspend Marcellus drilling

US player Petroleum Development Corporation (PDC) said PDC Mountaineer, its
joint venture in the Marcellus shale, will temporarily suspend drilling
there due to low gas prices.

Luke Johnson

 29 February 2012 23:39 GMT

PDC Mountaineer, jointly owned by Lime Rock Partners 5, is currently drilling
a third horizontal Marcellus well and plans to drill one more well prior to
suspending operations, PDC said in a release.

The joint venture also plans to complete seven wells over the next several
months, including three wells that were drilled last year.

While the group’s capital budget for the year will stay at $284 million, it
will reallocate $12 million of that to operations in the liquids-rich
Wattenberg field.

Most of the joint venture’s Marcellus acreage is held by production, “which
provides us the flexibility to wait for improved gas pricing before
recommencing our drilling programme”, PDC chief executive James Trimble said
in a statement.

PDC also announced the closing of the sale of its assets in the Permian basin
to Concho Resources, which was agreed last year.

The total sale price came to about $184.4 million after customary closing

PDC will use proceeds from the sale to pay down a significant portion of its
revolving bank debt and to fund its 2012 capital budget.

“The sale of our remaining Permian basin assets enables us to¿ strengthen our
balance sheet as we focus on increasing liquids production in our core
Wattenberg field and de-risking our emerging Utica shale position,” Trimble

Article source: http://www.upstreamonline.com/live/article305963.ece

February 29th, 2012 | Posted in Headlines | Read More »

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