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An upstart driller in Mexico aims to provide 10% of the country’s natural gas needs as it develops prospects south of Texas’s border.
Jaguar E&P holds as much as 210 billion cubic feet of natural gas in areas like the shale-rich Burgos Basin, the southern extension of a formation that encompasses the Eagle Ford play in the U.S., as well as the Tampico-Misantla, the cradle of Mexico’s oil industry. By mid-year, the Mexico City-based explorer expects commercial production of 15 million cubic feet a day from the Dieciocho de Marzo gas field in Burgos.
“What we believe our portfolio is capable of producing is something in the order of 10% of the gas that Mexico needs to consume over a five to seven year horizon,” Jaguar Chief Executive Officer Warren Levy said in an interview. “There’s a lot of potential left in the Burgos Basin.”
Jaguar was awarded 10 blocks in Mexico under auctions held by the previous government, following landmark energy reforms that ended state-owned Petroleos Mexicanos’ monopoly.
President Andres Manuel Lopez Obrador has since dialed back on the push to bring in private explorers, but he’s also seeking to make Mexico self-sufficient in energy and the country currently relies heavily on gas imports from the U.S. to generate electricity.
With Pemex prioritizing increasing oil production, the rise of smaller and more nimble, private gas producers in Mexico could help the country reach its goal of becoming more independent from Texan gas supplies, Levy said.
Lopez Obrador highlighted the dangers of that dependency last month after 4.7 million Mexicans were left without power because the unprecedented cold blast in Texas froze pipelines.
“You have a very large amount of money leaking out of the Mexican economy” because of its natural gas import dependence, said Levy. “Pemex made a strategic decision to focus more on oil, but there’s a lot of potential left there in gas for operators willing to work hard for it.”
Jaguar holds about 50% of the onshore acreage that has been awarded to private companies in Mexico, Levy said.
“We’re flowing out of 18 fields in the Burgos basin, not a huge amount of volume yet, but what we’re finding is that by applying better science, we’re able to extract more value out of the fields."
Source: Bloomberg
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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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