CGG, TAQA strengthen cooperation across the Middle East

CGG and Industrialization & Energy Services Company (TAQA) have signed a Framework Agreement which strengthens and extends their historical and long-term partnership in the Middle East. The new agreement provides a simplified, more focused structure to better address the growing industry demand for high-end seismic solutions throughout the region.

CGG and TAQA are currently shareholders of two Joint Ventures in the Middle East: ARGAS, a Saudi company established in 1966, covering geophysical activities in the Kingdom of Saudi Arabia (KSA), of which TAQA owns 51% and CGG owns 49%; ARDISEIS, a company established in 2006 in Dubai, covering land & shallow water data acquisition activities in the rest of the Middle East, of which CGG owns 51% and TAQA 49%. Through the Framework Agreement, ARGAS will become the sole shareholder of ARDISEIS, with ARGAS and ARDISEIS pooling all their resources to create a more efficient and powerful combined ARGAS Group. The new ARGAS group will have a stronger capital base, will cover a larger business scope, and will be 51% owned by TAQA and 49% owned by CGG.

Under the terms of the Framework Agreement, CGG and TAQA also extend their partnership to Seabed Geosolutions (SBGS), the Joint Venture addressing the seabed data acquisition market, which is owned 60% by FUGRO and 40% by CGG. In the same way as CGG will support the new ARGAS Group on all technological, industrial and commercial matters relating to land data acquisition, SBGS will provide similar support on all such matters relating to seabed data acquisition.

In addition, the Framework Agreement formalizes a strategic supplier agreement between SERCEL, CGG’s seismic equipment division, and the new ARGAS Group, aimed at mutually reinforcing the competitiveness of SERCEL and ARGAS and their respective positions in Middle East markets, which are set to see major growth notably driven by the mega-crews trend.

Jean-Georges Malcor, CEO, CGG said: “The Middle East will be at the heart of a technology revolution with ultra-high-channel-count crews and broadband technologies delivering previously unseen image definition to help our clients delineate and better utilize reservoirs in an optimum and sustainable manner. CGG and SERCEL technologies, from Equipment to Data Acquisition and Subsurface Imaging, are at the forefront of this revolution and we envision the new ARGAS Group, backed by its two shareholders, playing a leading role in this new paradigm.”

Mahmoud Abdulbaqi, Chairman, ARGAS, said: “The combination of ARGAS and ARDISEIS will provide the new ARGAS Group with a leadership position on the high-end land and seabed data acquisition markets across the Middle East. With its strong and experienced team, ARGAS will be able to fully benefit from the operational expertise of CGG and Seabed Geosolutions, as well as TAQA’s financial support and SERCEL’s latest technological innovations, to offer our customers in the region the best geophysical solutions.”

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By O'Niel Petroserve Nigeria Ltd, online.

Pan American Energy renews Wavefront fluid injection contract

Wavefront Technology Solutions, a provider of fluid injection processes primarily for mature field revitalization (EOR), as well as oil and gas well stimulation, has announced that Pan American Energy has awarded it (through agent Chilicote) a renewed, 12-month Powerwave contract worth approximately $533,000.

The contract renewal with PAE is for the Los Flores Norte–Cerro Dragon field in Argentina, and expands the existing project from three to seven Powerwave-driven water injectors.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By O'Niel Petroserve Nigeria Ltd, online.

Mexco Energy Corp. announces drilling of properties, acquisition

Mexco Energy Corporation has announced the drilling of certain properties in the Permian basin of West Texas and the acquisition of producing properties in four states.

Mexco Energy Corporation is participating as a working interest owner in a JV drilling four vertical development wells to a depth of 11,000 ft on 160 acre spacing in the Dean, Wolfcamp, Cline and Atoka formations on 640 acres in Reagan County, Texas.  Initial per day production rates from two of these wells respectively are 128 bbl of oil and 110,000 cubic feet of natural gas and 94 bbl of oil and 179,000 cubic feet of natural gas.  Mexco' s working interest in this JV is .3% (.24% net revenue interest).

These wells will hold the deep rights for further development by horizontal drilling.  The Wolfcamp formation in this area is an approximately 1,700 ft thick section consisting of interbedded organic shales and carbonates and includes two reservoir units, the "A" and "B" benches that have both been successfully developed with horizontal wells.  These four vertical wells in Reagan County, Texas, are in addition to two horizontal wells in which Mexco is also participating in Reagan County, Texas.

Also, Mexco has acquired for $450,000, a package of non-operated producing properties consisting of 10 oil wells and 1 gas well located in Webster Parish, Louisiana; Eddy County, New Mexico; Billings County, North Dakota; and, Nolan and Smith Counties, Texas.  The purchase price was funded from the company' s $4.9 million bank credit facility.

This purchase, effective March 1, 2014, includes working interests ranging from 27.5% to .13% (net revenue interests of 24.06% - .11%) adding estimated net proved reserves of approximately 35,000 boe at a cost of $12.86 per bbl.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By O'Niel Petroserve Nigeria Ltd, online.