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Thanks to a partnership with a geoscientist in the Permian Basin, a family-owned oil company is celebrating its largest discovery yet: a 13,000-acre field in Val Verde County holding an estimated 417 billion cubic feet, or 74.2 million barrels, in oil and gas reserves.
Barron Petroleum, based in Graham, announced the discovery on Monday after working with scientist William J. Purves on the project since 2018. Using Purves’ 3D seismic model to estimate the location and size of the oil and gas reservoirs, the company confirmed the find by successfully drilling two wells at the site, located about 35 miles south of the West Texas town of Ozona.
“We found out that it was exactly what 3D had shown on Dr. Purves’ study,” said Roger Sahota, president and CEO of Barron Petroleum. “We’re very excited and now we’re trying to figure out how to develop it or get someone to join the venture with us. It’s a large project, and our company is small. It’s just me and my three sons and my wife involved.”
Albert G. McDaniel, a petroleum engineer based in Fort Worth, completed the evaluation of the oil and gas reserves and wrote that the project is now so low-risk that it “more resembles that of a development project than an exploration venture.”
In an interview, McDaniel added that Barron Petroleum will have the ability to drill some 60 new wells, allowing energy companies to purchase large quantities of gas or oil from one site.
“This is a major discovery because these new field designations are all going to be made from this one 13,000-acre lease,” McDaniel said. “These are going to be high-volume, high-rate wells from a major new field that will be developed over the next five to 10 years.”
Sahota agrees, and is already negotiating a contract with energy companies Kinder Morgan and Enterprise to lay down a miles-long gas line and sell natural gas drilled out of the field.
“We like to purchase these kinds of properties and take a risk,” he said. “We’ve got our own crews and our own rigs, so we do most of the work ourselves except for the scientific or seismic work.”
This has been a tough year for oil and gas companies, which have suffered from a lack of demand during the coronavirus crisis. Barron Petroleum has not been immune from the economic downturn, cutting its full-time workforce from more than 100 oil field hands before the pandemic to 20, according to Sahota.
But, with oil prices hitting their highest point in five months this week, Sahota is hopeful that his company can continue to explore more potential reserves and rebound from the crisis.
“We’re very happy to have found this, and in Texas,” Sahota said. “This is where all of our projects are right now, and we hope we will have some more discoveries so the state will flourish with our country and we’ll employ a lot of people.”
Source: Star Telegram
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Valaris Limited announced new contracts awarded subsequent to issuing the Company’s most recent fleet status report on February 21, 2023. Three-year contract with Petrobras for drillship VALARIS DS-8. The rig will be reactivated for this contract. The total contract value is approximately $500 million, including a $30 million mobilization fee. 100-day contract with a TotalEnergies affiliate for drillship VALARIS DS-12. The contract is expected to commence in second quarter 2023. 70-day contract with Beach Energy offshore New Zealand for heavy duty modern jackup VALARIS 107. The contract is expected to commence in third quarter 2023. The total contract value is approximately $26 million. President and Chief Executive Officer Anton Dibowitz said, “We are particularly pleased to have secured the award for preservation stacked drillship VALARIS DS-8, for a contract that is expected to generate a meaningful return over the firm contract term, and we remain focused on exercising our operational leverage in a disciplined manner. This most recent award represents the sixth contract awarded to one of our high-quality stacked floaters since mid-2021, and speaks volumes about our demonstrated track record of project execution when reactivating rigs.” Dibowitz added, “Following the reactivation of VALARIS DS-17 and DS-8, we will have ten floaters working across the golden triangle, including four drillships in Brazil, a market where we expect to see continued growth over the next several years.” Updated Guidance As a result of the contract awarded to VALARIS DS-8, which will require the rig to be reactivated from preservation stack, we are updating our first quarter 2023 and full-year 2023 guidance provided on our fourth quarter 2022 conference call on February 21, 2023. First Quarter 2023 Contract drilling expense is expected to increase by approximately $5 million to $385 million to $395 million. Adjusted EBITDA is expected to decrease by approximately $5 million to negative $5 million to breakeven. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $25 million to $30 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Full-Year 2023 Revenues are anticipated to be $1.8 billion to $1.9 billion, unchanged from the guidance provided on our fourth quarter 2022 conference call. Contract drilling expense is expected to increase by approximately $60 million to $1.49 billion to $1.59 billion. Adjusted EBITDA is expected to decrease by approximately $60 million to $180 million to $220 million. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $280 million to $320 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Capital expenditures are expected to increase by $60 million to $320 million to $360 million. Source: Valaris Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Seadrill Limited announced that the West Neptune has executed approximately six months of term extensions with LLOG Exploration Offshore, L.L.C in the US Gulf of Mexico. The extensions will commence in direct continuation of the existing term, and will keep the rig busy until Q3 2024, furthering Seadrill and LLOG’s long-term association. Total contract value for the extension is approximately $79 million. Source: Seadrill Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Semisub rig owner Dolphin Drilling has inked a new contract with Peak Petroleum in Nigeria for its 1974-built Blackford Dolphin. The firm contract, which follows the letter of award in January, gives the Euronext Growth-listed owner of three rigs the potential to extend the unit’s backlog by a minimum of 120 days and up to 485 days. The deal adds to and will be a direct continuation of the previously announced 12-month contract with General Hydrocarbon Limited (GHL). Øystein Stray Spetalen-backed company said the effective dayrate associated with the minimum firm period of the contract is $325,000, including the mobilisation fee. “The final award of the contract for Blackford Dolphin shows the opportunities in Nigeria at a strong dayrate, in addition to building on the backlog for the rig. It also underlines the attractiveness of our assets, and we look forward to returning to revenue-generating operations in 2023,” noted Bjørnar Iversen, CEO of Dolphin Drilling. Source: Dolphin Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
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