RobertJames
10 years ago
Altima's (TSX-V: ARH / FSE: AKC /OTC Pink: ARSLF) Commences Workover Operations on the 3-17-41-11 W5M Well at Chambers-Ferrier, Alberta
Vancouver, BC / TNW-ACCESSWIRE / August 6, 2014 / Altima Resources Ltd. (TSX-V: ARH / FSE: AKC / OTC Pink: ARSLF) announces that it has commenced workover operations on the UNE Chambers 3-17-41-11 W5M well (the "Well"), located in the Chambers-Ferrier area of the Western Sedimentary Basin, Alberta.
Altima has assumed Operatorship of the Well and will re-enter the well bore, remove existing packers and WR plugs, run tubing, and place the Well on production. The Well will produce through an existing flowline to the Conoco 9-4-41-11 W5M compressor station, which is tied into the Keyera Deep Cut Gas Processing Plant at Strachan.
The Well was originally drilled by Golden Eagle Exploration to a Total Depth of 3,349 meters and rig released in June 2006. In July-August 2006, the Well was perforated and fracture stimulated in the Rock Creek and tested at a rate of 300 MSCF/D. The Rock Creek was then suspended and the Well recompleted in the Ellerslie sands. In November 2007, the Well was placed on production, and produced through to March 2009. The Ellerslie sands were then suspended and the Second White Specks Formation perforated, after which the Well was left shut in. The current workover will commingle all intervals to enable placing the Well back on production.
The Well workover is being completed under Altima's Participation Agreement with Acumen Energy Partners Inc. (refer to news release dated January 30, 2014).
The Company's mostly contiguous land base at Chambers-Ferrier totals twenty-seven (27) sections (17,280 gross acres) with an approximate average working interest of 86% in 16 of the 27 sections and varying interests in eleven (11) wells.
Richard Switzer, CEO, President and a Certified Professional Geologist, is the Qualified Person under National Instrument 51-101 responsible for preparing and reviewing the data contained in this press release.
ON BEHALF OF THE BOARD
SIGNED: "Richard Switzer"
Richard Switzer, CEO and President
RobertJames
10 years ago
Altima Resources (TSX:ARH) (:ARSLF) Testing Chambers 5-35-41-11 W5M Well and Completing Pipeline and Production Facility
CALGARY, ALBERTA--(Marketwired - Jun 24, 2014) - Altima Resources Ltd. (TSX VENTURE:ARH)(FRANKFURT:AKC)(PINKSHEETS:ARSLF) announces that the Altima Chambers 5-35-41-11 W5M well (5-35 well) completed fracture stimulation operations on June 19, 2014. Three separate fracture stimulations treatments were conducted on five formations, and all flowed back gas and liquids. Operations are continuing to mill out plugs and commingle all zones, run production tubing, and perform a flow and build up test on the well.
Altima has completed the 1.37 kilometer, 4 inch natural gas pipeline from the 5-35 well to a newly constructed riser located at 9-35-41-11 W5M. This infrastructure will connect the 5-35 well into Altima's existing Chambers North production and gathering system. Well site facilities will be installed after the flow test is completed, and the Company anticipates production from the 5-35 well to commence in early July.
As reported in the Company's March 3 and March 17, 2014 News Releases, the 5-35 well is the second well drilled under Altima's Participation Agreement with Whistler Oil and Gas Pty. Ltd., and was drilled to a Total Depth of 3,158 meters and Rig Released on March 16, 2014. Under the subject Whistler Agreement, an additional follow up well has been licensed and new well location constructed at 9-35-41-11 W5M.
The Company's mostly contiguous land base at Chambers-Ferrier totals twenty-seven (27) sections (17,280 gross acres) with an approximate average working interest of 86% in 16 of the 27 sections and varying interests in eleven (11) wells.
Richard Switzer, CEO, President and a Certified Professional Geologist, is the Qualified Person under National Instrument 51-101 responsible for preparing and reviewing the data contained in this press release.
ON BEHALF OF THE BOARD
Richard Switzer, CEO and President
RobertJames
10 years ago
Altima (TSX VENTURE:ARH) Update Regarding Chambers 5-35-41-11 W5M Well and Pipeline
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 9, 2014) - Altima Resources Ltd. (TSX VENTURE:ARH)(PINKSHEETS:ARSLF)(FRANKFURT:AKC) announces that the Altima Chambers 5-35-41-11 W5M well (5-35 well) will be completed and the pipeline connecting the well to Altima's production infrastructure will commence operations within the next two weeks.
The 5-35 well will be fracture stimulated over multiple prospective zones. The operation is anticipated to take approximately 24 days, and will be timed such that the well can be brought on stream in conjunction with the Keyera Strachan facility turnaround. Altima will immediately commence construction of a 1.37 Kilometer 4 inch natural gas pipeline and facilities from the 5-35 well to a riser at 9-35-41-11 W5M. The new line will tie into Altima's existing Chambers North production and gathering system.
As reported in the Company's March 3 and March 17, 2014 News Releases, the 5-35 well is the second well drilled under Altima's Participation Agreement with Whistler Oil and Gas Pty. Ltd., and was drilled to a Total Depth of 3,158 meters and Rig Released on March 16, 2014. The 5-35 well is located approximately 1.1 kilometers south of the 15-35-41-11 W5M well (which was drilled, completed, and placed on production in 2013), and 4 kilometers to the north of the COPOL ET AL HZ CHAMBERS 14-15-41-11 W5M well (which was drilled and completed in 2012, and placed on production in 2013).
The Company's mostly contiguous land base at Chambers-Ferrier totals twenty seven (27) sections (17,280 gross acres) with an approximate average working interest of 86% in 16 of the 27 sections and varying interests in eleven (11) wells.
Richard Switzer, CEO, President and a Certified Professional Geologist, is the Qualified Person under National Instrument 51-101 responsible for preparing and reviewing the data contained in this press release.
ON BEHALF OF THE BOARD
Richard Switzer, CEO and President
RobertJames
10 years ago
Altima (TSX VENTURE:ARH) Intends to Complete Equity Financing for $12,500,000 at a Premium to Market and Consolidate Share Capital on an 8:1 Basis
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 5, 2014) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Altima Resources Ltd. (TSX VENTURE:ARH) ("Altima" or the "Company") announces that it intends to complete a private placement for gross proceeds of $12,500,000 (the "Financing"), subject to acceptance by the TSX Venture Exchange. These funds will be raised by the issuance of 138,888,886 Units (the "Units") at a price of $0.09 per Unit (currently being a premium to the Company's market price), each Unit consisting of one common share and one-half share purchase warrant (the "Warrants"), each whole Warrant entitling the holder thereof to purchase one additional common share, exercisable for a period of one (1) year from the date of issuance at a price of $0.15 per share. The Units will be issued to five investors.
Proceeds raised from the Financing will be used to fund drilling and advancing development of oil and gas wells on the Company's assets towards commercial production, and for general working capital.
No finders' fees are being paid in connection with the Financing.
The Financing is expected to close on or about May 21, 2014, and is subject to certain conditions, including, but not limited to, receipt of acceptance from the TSX Venture Exchange.
8:1 Consolidation
Following closing of the Financing, the Company intends to consolidate its share capital on an 8 old shares for 1 new share basis, to be implemented by the Company's Board of Directors in its discretion, subject to receipt of acceptance from the TSX Venture Exchange ("TSX-V"). The Company does not intend to change its name in connection with the consolidation. The Company will disseminate a further News Release upon receipt of acceptance from the TSX-V, which will set out the Effective Date for the consolidation.
ON BEHALF OF THE BOARD
Joe DeVries, Director
RobertJames
10 years ago
Altima (ARH.V) Announces Drilling and Pipeline Construction at Chambers, Alberta With Whistler Oil and Gas Pty. Ltd.
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 21, 2014) - Altima Resources Ltd. (TSX VENTURE:ARH)(PINKSHEETS:ARSLF)(FRANKFURT:AKC) announces that together with its joint venture partner Whistler Oil and Gas Pty. Ltd. ("Whistler") (see Dec.13/13 press release), Altima and Whistler have licensed two new vertical wells in the Chambers-Ferrier area project, Alberta, Canada.
The 5-35-41-11 W5M well and 9-35-41-11 W5M well (the "Wells") are offsets to the 15-35-41-11 W5M well that Altima drilled with Whistler and placed on stream on September 3, 2013 (see Sept.5/13 press release). The Wells will be drilled vertically to an approximate depth of 3,100 meters, and are expected to encounter multiple prospective horizons, including the productive zones in the 15-35 well.
Production from the Wells will flow through a 1.4 km pipeline to be constructed from the 5-35 well and tie into Altima's existing 6.4 km pipeline that connects to the Baytex compressor station located at 4-4-42-10 W5M. From the Baytex compressor, gas and liquids will be routed through the Keyera North Strachan Gas Gathering System to the sales point at the Keyera deep cut gas facility located at 11-35-37-9 W5M.
Rick Switzer, President and CEO of Altima, confirmed that construction of the drilling leases and access road will commence the last week of January, with spud of the 5-35 well targeted for the first week of February. The 9-35 well is anticipated to be drilled immediately after rig release of the 5-35 well.
Mr. Switzer commented: "We are very pleased with our ongoing relationship with Whistler Oil and Gas Pty. Ltd. Last year we drilled the 15-35 well with Whistler and followed up with the 50/50 purchase of six additional sections adjacent and to the north of section 35. We also will construct the new pipeline under the earning arrangement with Whistler, and barring logistical or weather delay anticipate the new wells will be on production in Q2 2014."
Richard Switzer, CEO, President and a Certified Professional Geologist, is the Qualified Person under National Instrument 51-101 responsible for preparing and reviewing the data contained in this press release.
ON BEHALF OF THE BOARD
Joe DeVries, Director
RobertJames
10 years ago
Altima Enters (TSX VENTURE:ARH)(PINKSHEETS:ARSLF Into Amending Agreement for the Drilling of the 05-35-41-11 W5M and the 09-35-41-11 W5M Wells to Be Drilled at Chambers-Ferrier, Alberta
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 13, 2013) - Altima Resources Ltd. (TSX VENTURE:ARH)(PINKSHEETS:ARSLF)(FRANKFURT:AKC) announces that it has entered into an Amending Agreement (the "Amending Agreement") to the Participation and Joint Venture Agreement (the "JV Agreement") with Whistler Oil and Gas Pty. Ltd. ("Whistler") (see News Release dated January 24, 2013).
The JV Agreement provides that Whistler was granted the right to earn a 50% working interest (the "Working Interest") in three (3) conventional vertical wells (the "Future Wells") to be drilled on the Company's currently held oil and gas leases located in the Chambers-Ferrier area of the Western Canada Sedimentary Basin ("WCSB"), Alberta (the "Project").
The Amending Agreement provides that Whistler has agreed to invest additional funds estimated to be $7,000,000 (the "Additional Investment") for the drilling of the 05-35-41-11 W5M and the 09-35-41-11 W5M vertical wells. Of the Additional Investment, $1,000,000 (which was payable on execution of the Amending Agreement) will be a refundable deposit, with the balance $6,000,000 being due and payable on or before January 17, 2014. The parties have agreed that in the event an anticipated financing for Whistler's participation on January 4, 2014 does not occur, Whistler has the right to notify Altima that it is unable to complete the Additional Investment. Altima will then be free to either drill the wells for its own interest or to find an alternative partner to complete the drilling of the wells. Upon completion of either of these arrangements, Altima will reimburse Whistler for the funds advanced.
Pursuant to the Amending Agreement, Whistler has agreed to pay from its Investment 100% of the Drilling, Completion and Equipping costs (as those terms are defined in CAPL-2007) of each Future Well drilled in the Project to earn its 50% Working Interest, provided that Whistler shall receive 60% of the net revenue from the 15-35-41-11 W5M well, and 75% of the net revenue from the 05-35-41-11 W5M and the 09-35-41-11 W5M wells, until it has recovered 100% of its Initial Investment in the 15-35-41-11 W5M, the 05-35-41-11 W5M and the 09-35-41-11 W5M wells.
Upon Whistler having earned a 50% Working Interest in the 15-35-41-11 W5M well, the 05-35-41-11 W5M well, and the 09-35-41-11 well, Altima has agreed to deliver such documentation as is required to transfer to Whistler an undivided 50% Working Interest these three wells and a 50% working interest in Section 35-41-11 W5M upon the three wells being completed for production.
ON BEHALF OF THE BOARD
Joe DeVries, Director
RobertJames
11 years ago
Altima (ARH.V) Announces Chambers, Alberta 14-35-41-11 W5M Well Drilled and Cased
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Mar 5, 2013) - Altima Resources Ltd. (TSX VENTURE:ARH)(ARSLF)(FRANKFURT:AKC) announces that the Altima Chambers 14-35-41-11 W5M well was drilled to a Total Depth (TD) of 3,201m Measured Depth, casing set to TD, and Rig Released (RR) on February 28, 2013.
Rick Switzer, President and CEO reported: "Altima, in only twelve days, has drilled and cased a directional well faster than anyone else in the area. There are 93 wells drilled within a 10km radius of the 14-35 Chambers well, averaging depths around 3,100 meters and ranging from 24 to 66 days to drill - averaging around 43 days. Our Engineers researched, planned, and implemented techniques and systems for directional drilling, mud systems and overall drilling techniques that may now be standard bearers for industry to follow. Everyone involved not only carried out their jobs at high and efficient levels, but also safely. Altima extends its thanks to all those individuals who made drilling this well so successful."
As reported in the Company''s February 19, 2013 News Release, the 14-35 well is the first well drilled under Altima''s Participation Agreement with Whistler Oil and Gas Pty. Ltd., and is located approximately 5km to the north of the COPOL ET AL HZ CHAMBERS 14-15-41-11 W5M well that was drilled and completed in 2012.
The Company''s mostly contiguous land base at Chambers-Ferrier totals twenty (20) sections (12,800 gross acres) with an approximate average working interest of 97.2% in 10 of the 20 sections and varying interests in nine (9) wells.
Richard Switzer, CEO, President and a Certified Professional Geologist, is the Qualified Person under National Instrument 51-101 responsible for preparing and reviewing the data contained in this press release.
Smart Stocks
11 years ago
Altima Updates Status of Horizontal Well at Chambers-Ferrier, Alberta and Announces the Grant of Stock Options
Source: http://mwne.ws/TI7tkr
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec 5, 2012) -Altima Resources Ltd. (TSX VENTURE:ARH)(ARSLF)(FRANKFURT:AKC) announces that the Operator of the COPOL ET AL HZ CHAMBERS 14-15-41-11 W5M well completed 124.5 hours of production testing on November 26, 2012. The subject well is a confidential New Pool Wildcat (NPW), in which Altima holds a 30% working interest in the well and 2,560 acres of surrounding lands with the operator.
The well tested varying amounts of natural gas and associated high API condensate with no water recovery over the test period. Down-hole pressure recorders were run at the conclusion of the testing operation and will be recovered for analysis in late December. It is anticipated that pipelining will commence in Q1 2013, with production to follow in the first quarter.
On November 15, 2012, the Company announced it had licensed a New Pool Wildcat well at Chambers, Alberta. The well, Altima Chambers 14-35-41-11 W5M, is anticipated to be drilled in Q1 2013 to a depth of 3,065 meters into the Nordegg formation. Altima has a 100% Working Interest in the subject well and offsetting section. The 14-35 well is located approximately 5 kilometers to the north of the COPOL ET AL HZ CHAMBERS 14-15-41-11 W5M well.
The Company''s mostly contiguous land base at Chambers-Ferrier totals twenty (20) sections (12,800 gross acres) with an approximate average working interest of 97.2% in 10 of the 20 sections and varying interests in eight (8) wells.
Richard Switzer, CEO, President and a Certified Professional Geologist, is the Qualified Person under National Instrument 51-101 responsible for preparing and reviewing the data contained in this press release.
Grant of Stock Options:
The Company also announces the grant pursuant to a Fixed Stock Option Plan (the "Fixed Plan"), of options entitling eligible participants to purchase up to 12,000,000 common shares at an exercise price of $0.10 per share for a three year term expiring December 4, 2015. Under the Fixed Plan, the Company has reserved 19,500,000 common shares for issuance, 400,000 of which are currently outstanding. Following this stock option grant a balance of 7,100,000 remains available for future grants.
Smart Stocks
11 years ago
Altima Licenses New Well and Updates Status of Horizontal Well at Chambers-Ferrier, Alberta
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov 15, 2012) - Altima Resources Ltd. (TSX VENTURE:ARH)(ARSLF)(FRANKFURT:AKC) announces that it has licensed a New Pool Wildcat well at Chambers, Alberta. The well, Altima Chambers 14-35-41-11 W5M, is anticipated to be drilled to a depth of 3,065 meters into the Nordegg formation. Altima has a 100% Working Interest (WI) in the subject well and offsetting section. The 14-35 well is located approximately 5 kilometers to the north of the COPOL ET AL HZ CHAMBERS 14-15-41-11 W5M well that completed drilling in March 2012. The 14-35-41-11 W5M well is scheduled to be drilled in the first quarter of 2013.
Altima also announces that the Operator of the COPOL ET AL HZ CHAMBERS 14-15-41-11 W5M well has notified Altima of its intent to continue flow and build up testing operations, which are anticipated to commence within the next week, subject to weather conditions permitting access. Altima had previously reported a limited four day test completed over the period May 23 through May 27, 2012 (see News Release dated August 8, 2012, and for further reference, News Release April 12, 2012), with the well flowing varying rates of natural gas, associated condensate, and frac fluid. Downhole pressure recorders were run and the well shut-in. On June 21, 2012, the recorders were recovered. Altima holds a 30% WI in the subject well. Adverse seasonal conditions have prevented further operations to this time.
The Company''s mostly contiguous land base at Chambers-Ferrier totals twenty (20) sections (12,800 gross acres) with an approximate average working interest of 97.2% in 10 of the 20 sections and varying interests in eight (8) wells.
Richard Switzer, CEO, President and a Certified Professional Geologist, is the Qualified Person under NI 43-101 responsible for preparing and reviewing the data contained in this press release.
Source: http://yhoo.it/T3vxxN
jball1
12 years ago
Lets take a second and go threw some of these news releases, And see were we fall into Conoco Phillips a 247 billion Dollar a year companies 2012 Objectives for Exploration & production of Liquids- rich High return resource plays.
On November 21, 2011 Altima released news stating they tied into Conoco pipe line and commenced production. I talked with one of my long time friends thats a power engineer in a local gas plant close to the action of Chambers and he said 40 to 50 bbl of condensate per day is above average, he was impressed and also stated that facilities are very strategically placed were they are and its because the longevity of wells in the area that produce for many many years.
Altima Resources
The 14-6-41-10W5M well commenced production on October 12, 2011 and continues to produce through a restricted choke as well production rates stabilize. Production for the first 12 days of November averaged 1.05MMcf/d and 41 bpd condensate at the well head. The well is produced through the ConocoPhillips Chambers gas gathering system to the Keyera deep cut plant in Strachan, Alberta for liquids removal and sales. The Company expects a minimum additional 15 barrels of liquids per 1MMcf obtained from the natural gas at the plant. Altima holds a 19.3545% interest in the subject well in addition to sections 5 and 6 Twp. 41 Range 10 W5M and the 6-5-41-10W5M well approximately one mile to the east.
Note the Tie into a Conoco pipe line.
On February 1, 2012 Altima announced to drill Horizontal test ( exploration )
Altima Resources Ltd. (TSX VENTURE:ARH)(PINKSHEETS:ARSLF)(FRANKFURT:AKC) announces that it has entered into an agreement to pool four sections of joint lands at Chambers-Ferrier and drill a horizontal test into the Upper Mannville formation. The well, COPOL ET AL HZ CHAMBERS 14-15-41-11 W5M, is scheduled to spud approximately mid February. Altima holds a 30% working interest in the well and pooled lands and an interest in a total of 24 sections in the Chambers-Ferrier area.
Here Is well name break down.
COPOL ET AL HZ CHAMBERS 14-15-41-11 W5M.
COP = CONOCO PHILLIPS
OL= OPERATOR
ET AL= WITH OTHERS
HZ= HORIZONTAL
CHAMBERS= FIELD
14-15-41-11 = LEGAL LAND LOCATION
W5= WEST OF 5TH MERIDIAN.
On February 13, 2012 Altima announced spud and 3D Seismic In vertical portion to be done.
Altima Resources Ltd. (TSX VENTURE:ARH)(PINK SHEETS:ARSLF)(FRANKFURT:AKC) reports it has been notified by the Operator that the COPOL ET AL HZ CHAMBERS 14-15-41-11 W5M well (reference News Release February 1, 2012) was spud on February 12, 2012. The well will evaluate certain formations defined by 3D seismic in the vertical portion of the well prior to drilling the horizontal leg, which is anticipated to be over 1,250 meters in length.
Altima's Chambers project takes advantage of changes to the Alberta Royalty Framework (ARF). The New Gas royalty rate is 5% for the first twelve (12) months of production up to 500 million cubic feet (MMCF). The "Natural Gas Deep Drilling Program" (NGDDP) is also of great benefit to Altima, with offset credits to royalty payments of $625.00/meter drilled for depths of 2,000-3,500 meters. The ARF provides for approximately a $750,000 reduction in royalty for a typical vertical and up to $1.2 Million for a typical horizontal Chambers-Ferrier well (100% interest). This approach facilitates the ability for investors to more quickly recover upfront capital investments.
The Company's mostly contiguous land base at Chambers-Ferrier totals twenty four (24) sections (15,360 gross acres) with an approximate average working interest of 82% in 17 of the 24 sections (100% in 11 sections) and varying interests in seven (7) wells.
On February 28, 2012 Altima announced progress. and go ahead with Horizontal leg to be drilled to 1260m (1.26KM ) NOT THE 1250m they anticipated prior to spud This means they found more formation than anticipated by a extra 10m must of been some pretty good 3D logs in vertical section. Formation top probably came in early 10m high wich in turn stands to hold great potential for extra 10m of production zone
Altima Resources Ltd. (TSX VENTURE:ARH)(PINKSHEETS:ARSLF)(FRANKFURT:AKC) announces that the COPOL ET AL HZ CHAMBERS 14-15-41-11 W5M well (reference News Release February 1 & 13, 2012) has completed the drilling and evaluation of the vertical pilot hole to a depth of 3,147 meters into the Upper Mannville formation. Management is pleased with the preliminary results of the pilot hole, which the Operator successfully completed under budget and ahead of schedule. The well will now be plugged back for the drilling of the horizontal leg, which is anticipated to be approximately 1,260 meters in length.
The Company's mostly contiguous land base at Chambers-Ferrier totals twenty four (24) sections (15,360 gross acres) with an approximate average working interest of 82% in 17 of the 24 sections (100% in 11 sections) and varying interests in seven (7) wells.
On December 2, 2011 Conoco Phillips announced.
ConocoPhillips Reports on Strategic Progress
2012 Capital Program and Share Repurchase Program Announced
HOUSTON, Dec. 2, 2011 - ConocoPhillips [NYSE:COP] today reported on the progress of its three-year strategic plan to improve returns and create value for its shareholders. The company also announced a 2012 capital program of $15.5 billion and a program to repurchase up to an additional $10 billion of the company’s common stock. The company additionally provided an update on its $15-20 billion asset divestiture program for 2010-2012.
“We have made strong progress on the plan set out in 2010 to enhance our business through a disciplined approach to capital investment, maintaining a strong balance sheet and growing distributions to our shareholders,” said Jim Mulva, chairman and chief executive officer. “We continue to optimize the portfolio, selling noncore holdings and allocating investments to the highest-returning projects to position our business for improved returns and greater value.”
The company is also on track to complete its plans to reposition into two leading energy companies during the second quarter of 2012. The downstream company, Phillips 66, will offer a unique approach to downstream integration, comprising segment-leading refining and marketing, midstream and chemicals businesses. ConocoPhillips will become one of the largest and most diverse global pure-play exploration and production companies.
“Our planned repositioning in 2012 will help us grow the value of these two companies for our shareholders and unlock the potential of our assets and employees,” said Mulva. “We believe this is the best way for us to succeed and be competitive in the long term.”
Capital Program
The 2012 capital program of $15.5 billion reflects an increase in Exploration and Production (E&P) segment expenditures. Approximately 90 percent will be in support of E&P, while the Refining and Marketing (R&M) segment represents 8 percent of 2012 planned expenditures.
“The 2012 capital program reflects our strategic emphasis on delivering value by investing in the most profitable opportunities,” said Mulva. “We expect competitive returns from our increased investments in sanctioned unconventional resource projects, such as our growing oil sands business in Canada, liquids-rich shale plays in the U.S. Lower 48, and APLNG venture in Australia. As our production profile adjusts over time to reflect our increased levels of investment in liquids plays and lower levels in North American conventional natural gas, we expect to continue increasing margins in the upstream business.”
The company also expects to deliver on its production and organic reserve replacement targets by continuing to convert its captured resource base to proved reserves, exploring high-impact prospects and building high-quality acreage positions for future development.
Exploration and Production
The 2012 capital program for E&P is $14.0 billion and includes $2.2 billion for worldwide exploration,
.4 billion of capitalized interest and
.7 billion for the company’s contributions to the FCCL business venture and loans to other affiliates.
Approximately 60 percent of the E&P capital program will be spent in North America. This represents an increase in the U.S. Lower 48 and Canada compared with prior years, reflecting improved market conditions, with additional emphasis on liquids-rich resource plays and high-return investments.
In the U.S. Lower 48, capital funding will be focused on the Eagle Ford and other liquids-rich plays in the Permian, Bakken and Barnett fields. The program also funds ongoing development in the San Juan Basin as well as the company’s contribution to the Marine Well Containment Company.
Spending in Canada will focus on existing steam-assisted gravity drainage oil sands projects and selective programs in western Canada conventional basins, primarily on high-graded resource plays and to maintain a substantial position for future development.
Capital spending in Alaska is expected to be slightly down compared to 2011 levels, and will be directed toward development of the existing Prudhoe Bay and Kuparuk fields, as well as fields on the Western North Slope.
In Europe, Asia Pacific and Africa, total spending is expected to be approximately 40 percent of the E&P capital program.
Within the Asia Pacific region, funds will be used for further development of the coalbed methane-to-LNG project being developed by the Australia Pacific LNG (APLNG) joint venture, as well as for the development of new fields offshore Malaysia and Indonesia.
In the North Sea, spending is planned for existing and new opportunities in the Greater Ekofisk Area, the Greater Britannia fields and development of the Jasmine and Clair Ridge projects.
The company will continue its focus on accessing, testing and appraising material opportunities in both conventional and non-conventional oil and gas plays. ConocoPhillips plans further appraisal of the Poseidon discovery in the Browse Basin, offshore Australia, and the Tiber and Shenandoah discoveries in the Gulf of Mexico. The company also plans to test material prospects in the Gulf of Mexico and Kazakhstan. Delineation of the company’s position in the Eagle Ford shale play will continue, as will pilot programs in shale plays in the Canadian Horn River Basin, Australia and Poland.
Refining and Marketing
The 2012 capital program for R&M is approximately $1.2 billion, with $1.0 billion for its U.S. businesses and the remaining
.2 billion for international operations. These funds will be used primarily for projects related to sustaining and improving the existing business with a focus on safety, regulatory compliance, efficiency and reliability.
Other
Consistent with prior years, the 2012 capital program for Corporate and all other segments is approximately
.3 billion, primarily for global information systems and corporate facilities.
Share Repurchase Program
For 2011, ConocoPhillips expects to repurchase approximately 155 million of its own shares, or 11 percent of shares outstanding, for $11 billion. This will bring the company’s total shares repurchased to 15 percent of the shares outstanding at the inception of the $15 billion repurchase program in 2010.
ConocoPhillips today announced its board of directors had approved a share repurchase program for up to a further $10 billion of common stock.
Share acquisitions will be made at management’s discretion at prevailing prices as permitted by securities laws and other legal requirements, and subject to market conditions and other factors. Purchases may be increased, decreased or discontinued at any time without prior notice. Shares of stock repurchased under the plans are held as treasury shares.
Asset Divestiture Program
The company remains committed to its previously announced $15-20 billion asset divestiture program for 2010-2012. Through September 2011, the program has yielded proceeds of $8 billion. Recently announced agreements to sell the company’s interests in two U.S. pipeline companies, along with other sales already closed in the fourth quarter, will increase that total to approximately $10.5 billion.
Separately, ConocoPhillips also completed the sale of its interest in LUKOIL in early 2011, generating total proceeds of $9.5 billion in 2010 and 2011, which were largely used to fund share repurchases by the company.
“We have made significant progress toward optimizing our portfolio by divesting low-return, noncore assets,” said Mulva. “We are well-positioned to meet our three-year target and position the company for growth and enhanced rates of return in the future.”
Proceeds from 2012 asset sales are expected to be used primarily to fund share repurchases under the new program announced today.
“The execution of our strategic plan uniquely positions our businesses for growth and long-term value creation,” said Mulva. “We believe our commitment to capital discipline, portfolio optimization and increasing shareholder distributions will deliver the greatest value to our owners.”
ConocoPhillips is an integrated energy company with interests around the world. Headquartered in Houston, the company had approximately 29,700 employees, $155 billion of assets, and $247 billion of annualized revenues as of Sept. 30, 2011. For more information, go to www.conocophillips.com.
Now we wait and see what results will be and for the drill program to come out for the pooled 4 sections out of there 24 sections, Things are looking very very good at this stage and I would anticipate a summer drill program with Conoco to be announced. Couple this with Conoco's mandate for 2012 to increase exploration and production things could very well work into a buy out from one of the worlds biggest oil & gas producers. A 247 billion Dollar a year company
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