Companies in the news

Vol. 227 No. 2

Oil and gas intelligent completion specialist WellDynamics acquired the Production Technology (ProTech) business of John Wood Group PLC for $24.5 million plus an additional working capital payment. The acquisition combines WellDynamics’ intelligent well systems with ProTech’s permanent downhole, subsea and surface monitoring products creating a broad portfolio of well technology solutions.

TGS-NOPEC Geophysical Company ASA has acquired privately held Aceca Ltd. The transaction adds new multi-client interpretive products and subsurface interpretation consulting services to the TGS product line. Final consideration included $10.25 million in cash and 71,333 TGS shares. In 2005, Aceca had revenue of GBP 5.4 million (about $9.3 million) and was profitable.

Devon Energy Corp. has established the Devon Energy Geology Laboratory at Oklahoma State University. The instructional lab and its 3-D visualization technologies came online at OSU’s Boone Pickens School of Geology, which seeks to increase recruitment, retention and graduation of geoscientists. The 3,300-sq-ft lab was established with $1.5 million of Devon’s $2.3-million gift to the university.

PetroQuest Resources, Inc., subsidiary Mountaineer Gas Transmission, Inc., acquired 12 gas and oil wells in Wood County, West Virginia. Currently, 11 of the wells are producing. Management believes that reworking these wells in their existing production zones could increase present production by as much as 400%. They are also good candidates for recompletion in additional uphole production zones.

Eidesvik Offshore ASA and Veritas DGC subsidiary Viking Maritime Inc. have entered into an agreement to charter a seismic research vessel, to be newly constructed. The charter is for a fixed period of eight years, with options for up to 10 more years. The vessel is scheduled to be delivered from the West Contractors yard in Olensvag, Norway, in February 2007. It will be the seventh seismic vessel in the Veritas fleet, and the fourth to be owned and operated for Veritas by Eidesvik on worldwide seismic operations. Measuring 105 x 24 meters, it will be capable of towing up to 12 long streamers. The approximately 11,500-ton vessel will have accommodations for up to 70 persons.

Roxar AS will partner with Energy Scitech Ltd, a UK-based independent consultancy and software development company, to sell and support Scitech’s EnABLE product in Latin America and the Asia Pacific. This software is a history matching and uncertainty estimation software in use worldwide for understanding and measuring uncertainty in reservoir production performance estimates. When linked with Roxar’s IRAP RMS reservoir modeling application and Tempest-MORE, a full-field simulator capable of running black oil or compositional simulation modes, numerous geological scenarios can be examined and history matched to create simulation models.

Varel International has increased its manufacturing capacity for large diameter roller cone bits measuring 16 to 36 in. This investment, one of the largest in the company’s 59-year history, will triple Varel’s monthly manufacturing capacity for large diameter bits. A key part of increasing capacity was the purchase of a 48-in. numerically controlled vertical turret lathe with programmable shuttle tables for Varel’s Matamoros, Mexico, plant. This lathe is the single largest piece of equipment in the company’s manufacturing arsenal. It provides the company more capacity to machine precision bearings on large diameter head sections.

Pride International, Inc., has acquired from Sonangol, the national oil company of Angola, an additional 40% interest in the joint venture companies that own the two ultra-deepwater drillships Pride Africa and Pride Angola, the jackup Pride Cabinda, and hold management agreements for the deepwater platform rigs Kizomba A and Kizomba B. The acquisition increases Pride’s interest in the joint venture companies from 51% to 91%, with Sonangol continuing to hold a 9% interest. The transaction was for about $175 million.

Mitsubishi Heavy Industries, Ltd, and Shell EP International Ltd have established a strategic alliance to cooperate on business opportunities relating to CO₂ capture and recovery in the Middle East.Areas of cooperation will include joint feasibility studies on CO₂ capture from flue gases, which will be linked, where appropriate, to enhanced oil recovery projects, using CO₂ in miscible flood techniques to improve flow and recovery of oil from developed reservoirs. Shell considers energy efficient CO₂ capture and utilization to be a part of the company’s commitment to CO₂ emissions reduction worldwide, in line with its Sustainable Development policy and the Kyoto Agreement.

Total E&P USA, Inc., agreed to a like-kind exchange with Shell Exploration & Production under which Total conveys its interests in four onshore fields in South Texas for Shell’s 17% interest in the deepwater Tahiti field in the Gulf of Mexico. The Tahiti field is operated by Chevron and located in Green Canyon blocks 596, 597, 640 and 641 in 1,250 m of water, about 306 km southwest of New Orleans. Chevron and partners announced the field as a major discovery on April 1, 2002, and launched the first phase of the development in 2005. First production is currently planned for mid-2008 from a floating production facility with daily capacity of 125,000 bbl of oil and 70 MMcf of natural gas. In the exchange, Shell acquires four natural gas fields in South Texas with net production of 107 MMcfd.

Enterra Energy Trust is pursuing the acquisition of oil and gas assets producing about 5,500 boepd in Oklahoma. The production is approximately 80% natural gas and 20% light oil. Enterra entered into agreements with a group of private sellers to acquire the assets, including producing wells, undeveloped land and an operating company with its employees, equipment and infrastructure for about $246 million. The purchase price will be paid through a combination of cash, the issuance of trust units and the assumption of debt.