Dong Energy considers sale of oil and gas assets to focus on windfarms

Sale could help Danish company enhance position as leading exponent of wind power in UK The biggest windfarm operator in the UK is considering selling its oil and gas business, four decades after it was set up to manage Denmark’s North Sea oilfields. Dong Energy, which is majority owned by the Danish government, said it had appointed JP Morgan to perform a strategy review that could result in the sale of the oil and gas business. Offloading oil assets would result in the company, whose initials stand for Danish Oil and Natural Gas, focus on wind power instead, completing its transformation from fossil fuels to renewables. Dong did not say whether selling its oil and gas operations would result in a change of name and added that it had yet to decide on the division’s future. The stories you need to read, in one handy email Read more The company floated on the Copenhagen stock exchange this year, saying it would use the flow of cash from oil sales to fund ongoing investment in renewable energy projects. But on Wednesday, Dong said it might now look to raise funds more quickly by selling the division. Any sale could help it cement its position as the UK’s leading exponent of wind power. Dong has stakes in windfarms that can produce more than 2.2GW in total, equivalent to about 4% of the UK’s predicted peak demand of 52.7GW during cold weather. It has plans to add a further 1.5GW of wind power capacity, including the Hornsea 1 project 55 miles off the coast of Grimsby, which would be the world’s largest offshore windfarm. https://www.theguardian.com/business/2016/oct/26/dong-energy-considers-sale-oil-and-gas-assets-focus-windfarms

Ridgewood Energy wraps up third oil and gas fund at more than $1.9 bln: UPDATED

Ridgewood Energy Corp has raised more than $1.9 billion for its third oil and gas-focused private equity fund, sweeping past its $1.5 billion target, the firm announced today.

Ridgewood Energy Oil & Gas Fund III LP will focus on finding and developing oil in the deepwater Gulf of Mexico.

The vehicle’s limited partners include state and corporate pension plans, university endowments and foundations, private wealth managers and family offices.

Eaton Partners LLC was the placement agent.

Ridgewood Energy’s previous oil and gas fund closed at $1.1 billion in early 2014. As of December 31, 2014, Ridgewood Energy Oil & Gas Fund II LP generated an average IRR of -9.51 percent and an average multiple of .95x, according to data provider Bison. UPDATED: Ridgewood Energy Fund II closed at $1.1 billion in early 2014. The second pool produced a gross IRR of 31 percent and a gross multiple on invested capital of 1.29x as of March 31, a source familiar with the fund said.

https://www.pehub.com/2015/07/ridgewood-energy-wraps-up-third-oil-and-gas-fund-at-more-than-1-9-bln/

Domestic energy goes beyond oil, gas

I respond to the March 3 letter “Energy policy must benefit Ohio business” from Lyn Bliss, president of the Ohio Federation of Republican Women, which mentioned a simplified tax code and green energy. The federal government says there were 3.4 million green jobs created in 2011, according to the latest estimates, while a national oil and gas trade group says there were 2.59 million oil and gas jobs created.
The latest freeze on energy-efficiency standards ignores Ohio businesses in the renewable-energy sector, and their economic benefits.
I am unclear whether Bliss is saying there should be no subsidies for energy production, or subsidies only for fossil fuels. Meaningful tax reform would shift fossil-fuel subsidies to renewable-energy subsidies. This would provide a direct economic benefit to many more small businesses in Ohio.
Bliss wrote, “If the Democrats had their way, they would likely snuff out domestic energy in America through punitive taxes.” So if I have solar panels, I am a domestic-energy producer. Does the writer support domestic-energy production or not?
Finally, many conservative, independent and progressive citizens support energy production from cleaner, renewable, American sources. Major Ohio universities and the Department of Defense, among others, are already pursuing green-energy initiatives precisely because they are reasonable, sustainable and an economically prudent investment.
So unlike what the writer suggested, energy policy that supports the renewable-energy sector does benefit Ohio business. It also benefits all Ohioans by producing energy without the hidden tax of dirty air, something the writer failed to mention.

http://www.dispatch.com/content/stories/editorials/2015/03/15/01-domestic-energy-goes-beyond-oil-gas.html

Horizon Energy Signs Oil and Gas Lease Option

HOUSTON--(BUSINESS WIRE)--Horizon Energy Corporation (OTCQB: HORI) today announced it has signed an option agreement for an oil and gas lease in Webb County, Texas. The land under consideration consists of two tracts totaling 1,340 acres located close to Mirando City. The agreement is part of Horizon’s ongoing efforts to identify prospective opportunities for the exploration, development and production of domestic oil and gas.

Webb County (3,376 sq. miles) is located in south Texas. The county is a legacy producing area that produces oil and natural gas from the Lobo and Wilcox formations and is home to a large swath of the Eagle Ford shale play. According to Texas oil and gas provider texasdrilling.com, there are currently 81 producing operators in Webb County, with 3,799 active leases that produced 7,859 barrels of oil and 35,368,299 MCF of natural gas in September, 2013.
“We are actively evaluating this and other acquisition opportunities of oil and gas properties that are a match with our strategy,” said Robert Bludorn, President and CEO of Horizon Energy Corporation. He added, “We are encouraged by the deal flow we are identifying that has the potential to allow us to build our company with quality assets.”
Major operators in Webb County include SM Energy (NYSE:SM) and Lewis Energy in partnership with BP (NYSE:BP). Other top operators with active leases in the area include Chevron USA (NYSE:CVX), ConocoPhillips (NYSE:COP) and Laredo Energy.
About Horizon Energy Corporation
Horizon Energy Corporation was incorporated in the state of Wyoming in 2010. Its business model and scope of operation includes traditional and nontraditional energy sector opportunities. It is currently in the business of acquiring, discovering and developing oil and gas properties.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipates," or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from those expressed or implied by such forward looking statements. In addition, description of anyone's past success, either financial or strategic, is no guarantee of future success. This news release only speaks as of the date of its distribution.

http://www.businesswire.com/news/home/20140404005778/en/Horizon-Energy-Signs-Oil-Gas-Lease-Option#.Uz-h4KJWHIU

Study: Oil and gas companies should pay higher royalties

Colorado got $93.2 million as its 50 percent share of federal royalties from oil and gas production public lands in fiscal 2012, but the state could have gotten as much as $55 million more if federal royalty rates were higher, according to a new study from the Center for Western Priorities.
The center, in a study titled “A Fair Share: the Case for Updating Federal Royalties,” was released Thursday. It’s available for download here.
The federal onshore royalty rate for oil and gas is 12.5 percent, which means that energy companies pay the government $12.50 for every $100 worth of oil and gas that’s produced from federal land.
In Colorado, energy companies pay a higher royalty rate, 16.67 percent, for oil and gas produced from state-owned mineral rights overseen by the Colorado State Land Board.
Money from federal royalties is split 50-50 with the states where production occurs. In Colorado, that money, $93.2 million in federal fiscal year 2012, is then split with the local communities and school districts affected by oil and gas production.
“Hundred-year-old federal royalty rates are putting an unnecessary strain on many western communities,” said Greg Zimmerman, the center’s director.
“Updating the federal rates will mean more teachers in classrooms, more cops on patrol, improved infrastructure, and conservation efforts that keep pace with industrial development,” he said.
If the federal rates were raised to match Colorado’s rates, 16.67 percent, the state would see it’s share of federal royalties jump by an additional $36.6 million. Increasing the rates from 12.5 percent to 18.75 percent would raise Colorado’s take by nearly $54.9 million, the center calculated.
Looking at five western states, Colorado, Montana, New Mexico, Utah, and Wyoming, the center said raising federal royalty rates to 16.67 percent would bring a total of an additional $403 million to the states. Raising the rates to 18.75 percent would bring in an additional $604 million to the states, the center said.

http://www.bizjournals.com/denver/blog/earth_to_power/2013/06/study-says-energy-companies-should.html

Shell Says Energy Efficiency in Oil, Gas Production a Challenge

Royal Dutch Shell PLC (RDSB) said Thursday that maintaining energy efficiency in its oil and gas production will prove a challenge in coming years.
"We expect that maintaining the energy efficiency levels of recent years will be more difficult in the future as existing fields age and production comes from more energy-intensive sources," Shell said in its 2012 sustainability report.
The Anglo-Dutch oil major said its energy efficiency record for oil and gas production, excluding oil sands and gas to liquids, worsened last year compared to the year before.
According to Shell's data, it used 0.78 gigajoules of energy per ton of production last year, up from 0.75 gigaoules the year before, a level of energy intensity last seen in 2008.
Energy efficiency at the company's chemical plants also worsened last year compared to 2011, although the performance of its refineries improved.
Despite the worsening record in terms of efficiency, the company said its greenhouse gas emissions fell to 72 million tons on a carbon dioxide equivalent basis from 74 million tons in 2011, largely due to reduced gas flaring in Nigeria and divestments in the company's downstream business.
Write to Sarah Kent at sarah.kent@dowjones.com

Read more: http://www.foxbusiness.com/news/2013/04/11/shell-says-energy-efficiency-in-oil-gas-production-challenge/#ixzz2QAKXYlRF

Cabot Oil & Gas shines among energy stocks

SAN FRANCISCO (MarketWatch) — Cabot Oil & Gas Corp. rallied Friday, leading energy stocks higher after the company reported increased production and quarterly results that beat market expectations. Shares of Cabot (US:COG) advanced 11%, landing among Friday’s top gainers in the S&P 500 index (US:SPX). Read: U.S. stocks rebound to trim weekly losses. Cabot was the week’s fourth largest gainer on the index. The company late Thursday reported fourth-quarter adjusted earnings of 27 cents a share, compared with expectations of 22 cents a share. Profits reached $40.9 million, from $26.4 million a year earlier. Production in the quarter was higher than expected and reserves expanded, paced by strong drilling results in the key Marcellus shale formation. Cabot also unveiled a $1 billion capital expenditure program for this year, foretelling “aggressive production growth in 2013,” analysts at GHS Research said in a note. Shares of Exxon Mobil Corp. (US:XOM) turned higher, up 0.7% at the end of the session. Shares of ConocoPhillips (US:COP) rose 0.2% and Chevron Corp. (US:CVX) rose 0.8% after a listless start to the session. U.S.-listed shares of Royal Dutch Shell PLC (US:RDS.A) rose 1.3%. Shell said late Thursday it is reassessing its development plan for the Fram oil and gas field in the U.K. sector of the North Sea after initial drilling showed “unexpected well results.” The company did not elaborate on the results, but said it is considering alternative plans for the field and has terminated several key contracts associated with its development. The company had planned an average of 35,000 barrels of oil equivalent out of Fram, with production to start up expected within three years. Exxon’s U.K. unit is a partner at the field. Shares of refiner PBF Energy Inc. (US:PBF) rose 5.2%. Analysts at Simmons & Co. upgraded PBF Energy to overweight, on “early signs of success” from the company’s crude procurement strategy. “PBF recently increased its expectations for crude deliveries by rail and has shown success procuring crudes at substantial discounts to Brent,” the analysts said. “PBF is the high reward/risk stock in the refining universe in our view,” with the cheapest valuation and most upside potential, the analysts added. PBF debuted on the New York Stock Exchange in December, and recently reported adjusted earnings of $1.70 a share compared with expectations of $1.63 a share. Phillips 66 (US:PSX) was up 2.9%, while shares of Tesoro Corp. (US:TSO) and Valero Energy Corp. (US:VLO) rose 2.5% and 1.2%, respectively. The SPDR Energy Select Sector (US:XLE) exchange-traded fund rose 1%. Crude futures were off 0.3%, with April crude (US:CLJ3) at $93.13 a barrel on the New York Mercantile Exchange. http://articles.marketwatch.com/2013-02-22/markets/37233074_1_cabot-oil-pbf-energy-crude-futures