Energy company sells most of its Colorado assets for $910 million

WPX Energy Inc., Colorado’s biggest producer of natural gas, said Tuesday it will sell most of its Colorado assets to private equity firm Terra Energy Partners LLC for $910 million in cash.

The deal for WPX’s assets and operations in Colorado’s Piceance Basin, in western Colorado, is intended to shore up the Tulsa, Oklahoma, company’s balance sheet and help it survive the downturn. WPX has 215 employees in its Parachute office, plus an additional 16 in its Denver office.

WPX Energy Inc., Colorado’s biggest producer of natural gas, said Tuesday it will sell most of its Colorado assets to private equity firm Terra Energy Partners LLC for $910 million in cash.

The deal for WPX’s assets and operations in Colorado’s Piceance Basin, in western Colorado, is intended to shore up the Tulsa, Oklahoma, company’s balance sheet and help it survive the downturn. WPX has 215 employees in its Parachute office, plus an additional 16 in its Denver office.

Related Story: WPX Energy completes No. 2 Niobrara producing well in the US. WPX’s first well was No. 1

Continue reading story at The Denver Business Journal

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Press Release: Oil & Gas Veteran, John Stude, Joins Citadel Advisory Group

John Stude - Citadel Advisory Group - VP Business evelopment

John Stude – Citadel Advisory Group – VP Business evelopment

Brings Decades of Energy Experience to Team

Citadel Advisory Group, LLC, a Colorado based investment banking firm specializing in the energy services and related industries, is pleased to announce the addition of John Stude to their team of transaction experts as Vice President of Business Development.

Most recently, John served as Vice President – Business Development, North America Services for Superior Energy Services (NYSE:SPN). Prior to their acquisition by Superior, John was Vice President – Corporate Development for Complete Production Services (NYSE:CPX) where he was instrumental in executing their significant growth through strategic acquisitions.

Prior to his tenure at Superior and Complete, John was a member of the management teams of both Cardwell Manufacturing and Cooper Manufacturing rig companies. Continue reading “Press Release: Oil & Gas Veteran, John Stude, Joins Citadel Advisory Group” »

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Press Release: Mineral Owners Appreciation Breakfast for Weld County and Surrounding Areas, CO

NARO_Colorado_LogoThe National Association of Royalty Owners (NARO), Colorado Chapter, and Extraction Oil & Gas have united to co-sponsor an event for mineral owners and families in Weld County and the surrounding areas. Representatives of Extraction and NARO will speak about the issues facing oil and gas development in Weld County and the important role that mineral owners play in combating the regulatory constraints facing the industry.

The event will be held next Thursday, January 28th from 8 a.m. – 10 a.m. at the Union Colony Civic Center’s Hensel Phelps Theater located at 701 10th Ave in Greeley. Breakfast will be provided for attendees, beginning at 8 a.m. in the first floor lobby. For those who are in town for the Colorado Farm Show, please stop by before the day’s events on Thursday. The Civic Center is located only 1.5 miles from Island Grove Regional Park.

For more information on this event or to RSVP, please contact Emily Stibbs by email at Emily.stibbs@hkstrategies.com or by phone at 346-302-4993.

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Oil’s Next ‘Scary Price Point’ May Close The Spigot

oil-drop-dollarsignBY GILLIAN RICH, INVESTOR’S BUSINESS DAILY – January 15, 2016

Oil prices are nearing the point where pumping crude out of the ground ceases to be economical across the U.S., meaning the flow of oil — and cash for production companies — could dry up.

On Friday, U.S. crude futures settled down 5.7% at $29.42 a barrel, and Brent fell 6.3% to $28.94. With prices already below $30, no U.S. shale oil company is making money from operations, said Jason Wangler, a managing director at Wunderlich Securities.

The next “scary price point” is $20 a barrel, he said. That’s when the production of oil itself — just the cost of lifting it to the surface, excluding overhead, interest and one-time drilling expenses — is no longer feasible.

And $20 a barrel is a possibility. Analysts at Citigroup (NYSE:C) and Goldman Sachs (NYSE:GS) have said oil could fall as low as $20 a barrel this year. That would be the “absolute bottom for oil prices in the short term,” and in some places $30 a barrel is the bottom in terms of the marginal cost of production, said James Williams, an energy economist at WTRG Energy.

Continue reading at Investor’s Business Daily

 

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Next goal: Reclaim unused well pads

Colorado Oil and Gas Commission

Colorado Oil and Gas Commission

By Dennis Webb Friday, The Daily Sentinel – January 1, 2016

When falling prices caused natural gas development to start dropping off in places like western Colorado after peaking in 2008, in some cases it ended up in companies doing little or no drilling on well pads they’d already built.

How to ensure such pads are reclaimed through reseeding and other measures is part of a stepped-up focus by the Colorado Oil and Gas Conservation Commission. It comes as COGCC Commissioner Richard Alward, a Grand Junction ecologist and consultant whose work includes oil and gas reclamation, continues to call for an update of the agency’s reclamation rules.

A new report by commission staff finds that of some 98,000 wells under the agency’s jurisdiction, about 45,000 are eligible for final reclamation, and 58 percent of those have passed final reclamation inspection. That leaves 18,685 locations that the agency plans to focus on inspecting, including about 12,000 sites with wells that either were dry from the start, or produced before being plugged. The nearly 6,800 remaining sites are what the commission calls abandoned locations — sites where companies planned to drill wells but never drilled them. Continue reading “Next goal: Reclaim unused well pads” »

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Bank of Montreal Asks If “Oil Prices Could Collapse To $20”; Answers: “Yes”

oil-drop-dollarsignTyler Durden – ZeroHedge – December 27, 2015

When looking at the price of oil in 2015, Canada’s Bank of Montreal admits it was wrong. Very, very wrong.

In our “2015 Year Ahead” report we laid out three plausible scenarios: (1) our base case, which forecast Brent crude oil prices of $50-60/bbl over the first half of 2015 and $60-80/bbl over the second half of the year; (2) a bull case, which forecast a Brent trading range of $85-95; and a bear case, which suggested a Brent trading range of $50-60/bbl. The actual trading range in 2015 proved to be even more ‘bearish’ than our bear case, with Brent generally trading between $36 and $60/bbl. So what did we get wrong?

The answer: pretty much everything but mostly the fact that in the race to the production bottom (“we’ll make up for plunging prices with soaring volumes”) only dramatic outcomes, which shock the status quo, have any impact, to wit:

“we assumed that Iraq production would average 2.9 million bpd; actual production was roughly 1 million bpd higher. We also assumed that Saudi Arabia would be content to hold production at 9.2 million bpd whereas actual production was roughly 800,000 bpd higher. In our view, this incremental 1.8 million bpd of production was the principal reason that global oil inventories swelled by more than 340 million barrels to a record high of approximately 3.1 billion barrels and why crude oil prices have collapsed.”

Well, that, and the fact that the financial BTFD community finally threw in the towel on the most financialized commodity, and following two failed attempts at dead cat bounces, may have thrown in the towel. That said, just looking at speculative positions, oil may have a long way to drop still.

Continue reading story at ZeroHedge

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Weld’s top oil, gas exploration companies reporting increased fourth-quarter production

weld_co_sealSharon Dunn – Greeley Tribune – December 18, 2015

Weld County’s two largest oil and gas drillers have updated their production levels for the last few months of the year, noting increased drilling efficiencies without spending more money.

Both Anadarko Petroleum and Noble Energy — which together account for most of Weld’s production — this month have issued updates to production reports for the fourth quarter, as crews have improved wells in and outside Colorado.

The updates for these public companies are required by the Securities and Exchange Commission. Every year, the companies report expected production rates; when those change in any way, the reporting needs to be updated.

On Thursday, Anadarko reported a 2 million-barrels-of-oil-equivalent increase throughout its portfolio, which spans the globe. The primary drivers of the increase, however, are its assets in Weld and in the Delaware Basin in Texas, according to a company news release. Barrels of oil equivalent means the total volume of a well’s production, which includes crude, natural gas and natural gas liquids such as butane and ethane, all of which are sold in their respective markets.

Continue reading story at The Greeley Tribune

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Groups appeal suspension of federal oil, gas drilling rules

USEPABy MEAD GRUVER – Associated Press – December 3, 2015

CHEYENNE, Wyo. (AP) — Environmental groups have appealed a judge’s decision to suspend new rules for oil and gas drilling on federal land across the U.S. pending the outcome of a legal challenge to those rules.

The rules should be allowed to take effect to protect land, water and wildlife from practices including hydraulic fracturing, the Sierra Club and others argue in court documents.

On Sept. 30, U.S. District Judge Scott Skavdahl in Wyoming disagreed and blocked the rules from taking effect while the lawsuit contesting them moves ahead.

The environmental groups, which have sided with the federal government in the case, appealed Skavdahl’s decision Nov. 27 to the 10th U.S. Circuit Court of Appeals. The case itself remains before Skavdahl in Casper.

The plaintiffs are Wyoming, Colorado, Utah, North Dakota, the Ute Tribe and two petroleum industry groups, the Western Energy Alliance and the Independent Petroleum Association of America. They say the rules would be costly for industry and cause economic harm to the states.

Continue reading story at Yahoo Finance

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