Jan 29

European unconventional gas attracts firms

By ckeddy natural gas in the USA No Comments »

The Ukraine unit of EuroGas Inc., New York, acquired three unconventional gas concessions in eastern Ukraine’s Donbas basin and increased activities in the Lublin basin that extends from Poland into western Ukraine.

The acquisition brings to five the number of shale gas and coalbed methane concessions held by EuroGas Ukraine Ltd. in eastern Ukraine under a joint activity agreement with Nadra Luganshchiny Ltd.

The five concessions total 512 sq km, and the largest, Marijewvskogo Poligon, covers 251 sq km. Horizontal drilling is to start this year.

Meanwhile, EuroGas GMBH signed a memorandum of understanding to explore for unconventional gas, such as shale and CBM gas, in the Lublin basin where it was the first foreign company to successfully drill a CBM well in the Ukrainian sector in the late 1990s.

Meanwhile, Realm Energy International Corp., Vancouver, BC, said it applied for oil and gas rights in eight undisclosed basins in seven unidentified European countries where it plans to exploit shale gas on more than 1.5 million acres.

Realm Energy, which is collaborating with Halliburton Consulting to apply North American shale gas technology in Europe, is evaluating other undeveloped shale plays and intends to make more applications in early 2010.

By OGJ editors

SOURCE: OIL & GAS JOURNAL

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Jan 29

Poland ‘Bubbles Up’ as Marathon Target for Next Shale-Gas Boom

By ckeddy natural gas in the USA No Comments »
ConocoPhillips and Marathon Oil Corp. are betting that Poland, which gets half of its natural gas from Russia, can yield a development boom in shale formations like those that drove a jump in U.S. output of the heating fuel.
The third- and fourth-biggest U.S. oil companies obtained exploration licenses this year covering hundreds of thousands of acres in Poland. The country, which imports 72 percent of its gas, could become an exporter of the fuel, said Maciej Wozniak, chief adviser on energy security to Prime Minister Donald Tusk.
“Everything leads to a conclusion that in four or five years, and this is how much time we have to prepare for this, Poland will become a place with quite a lot of gas,” Wozniak said in a telephone interview.
Shale developments, where rock formations are fractured and injected with water and sand to release trapped fuel, account for about 15 percent of U.S. gas output, according to Oklahoma City-based Chesapeake Energy Corp. After successes in the U.S., producers such as Houston-based Marathon seek to exploit similar geological formations around the world.
“We looked at a number of countries in Europe and through Asia,” Marathon Executive Vice President David Roberts told investors in a Nov. 19 presentation after the company obtained its license. “Poland bubbled up to the top of our list.”
Russia Reliance
Shale projects contributed to a drop in U.S. gas prices from a 2008 high of $13.69 per million British thermal units to a 2009 average of about $4.06.
Successful drilling wouldn’t end Poland’s reliance on Moscow-based OAO Gazprom, which disrupted gas supplies to 20 European nations in January on a price dispute with Ukraine. Poland’s gas-distribution monopoly, Polskie Gornictwo Naftowe i Gazownictwo SA, agreed Nov. 3 to contract with Gazprom for almost three-fourths of its gas until 2037. The deal is pending approval by governments of both countries.
“It would have no choice but to pay the price agreed to in the contract even if the price on the cash market falls due to additional supplies from the shale formations,” said Vince Kaminski, an adjunct professor at Rice University in Houston and former risk-management director at Enron Corp.
Gas discoveries could enhance energy security for Poland and neighboring countries such as the Czech Republic and Slovakia. Polskie Gornictwo, based in Warsaw, cut sales to the nation’s largest refiner, PKN Orlen SA, and the biggest fertilizer maker, Zaklady Azotowe Pulawy SA, after the Russian- Ukrainian conflict left Poland with limited supplies.
Energy Security
“Increasing natural-gas production in Poland, especially in such a sustainable way, is very important for us,” Wozniak said. “Given our situation and the problems we had over the last years with securing stable supply on the gas market in the country, this initiative is particularly valuable.”
Polish shale gas is “a long way off” from having a “serious” impact, Gazprom said in a statement. Long-term contracts are needed for gas users to secure supplies and for producers to finance infrastructure projects, the company said.
Polskie Gornictwo, which produces about 4.1 billion cubic meters of gas a year in Poland, plans to drill in shale formations with Marathon and Chevron Corp., said Piotr Gliniak, the company’s exploration director. It may turn out that Polish shale formations have too much water to tap using techniques currently employed in the U.S., he said. “It seems to me that at the moment, the foreign companies are a bit too optimistic about what may be found in Poland,” Gliniak said.
Silurian Shale
Representatives of Marathon and ConocoPhillips of Houston declined to comment for this article. If the 430 million-year-old Silurian shale that stretches through Poland proves to be “an economic resource,” 48 trillion cubic feet (1.4 trillion cubic meters) of gas could be recovered over decades, according to Rhodri Thomas, a project adviser at Wood Mackenzie Ltd. in Edinburgh. That much gas would sell for more than $240 billion at current futures prices.
ConocoPhillips has an option to develop as many as 1 million acres in the Silurian shale under an exploration agreement with Warsaw-based Lane Energy, the U.S. company said in a Sept. 9 presentation to investors. The companies plan to drill the first well near the northern Polish town of Lebork, said Kamlesh Parmar, country manager at Lane Energy.
Parmar said the concession area has all the geological attributes, including a thick and organically rich rock formation, to become a successful shale-gas development.

By Katarzyna Klimasinska

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Jan 29

Russian Gas Giant Feeling the Effects of Shale Gas

By Trevor J. Murphy energy independence 1 Comment »

The exponential potential for shale gas exploration overseas and the shale boom in the United States is forcing one of Europe’s gas giants to re-evaluate what was once considered to be a largely ambitious gas extraction project in the Arctic.

Gazprom, Russia’s biggest gas company and Europe’s biggest gas supplier, said this week they would have to reassess its plan to develop the 3.8 trillion cubic meter Shtokman gas field in the Barents Sea.  Together with partners Statoil and Total, Gazprom has planned to send as much as 90 per cent of Shtokman’s extracted natural gas to the North America, but the company admits that alternative gas suppliers and quickly developing markets for shale gas in the US and abroad is putting Shtokman development plans in jeopardy.

Andrew Neff, an energy analyst at HIS Global Insight says shale gas is “playing havoc” with Gazprom’s prices and projects.

“The potential spread of the shale gas production revolution to Europe, which is believed to have significant untapped reserves of its own, would clearly have a profound impact on Gazprom’s production and marketing strategy,” he told The Guardian.

In an interview with Russia Today television in December, a Gazprom spokesman called shale gas “a joke” and dismissed concerns that a growth in the production of shale gas would pose a threat to the company’s foreign sales.

But the reassessment of the Shtokman fields demonstrates that Gazprom is now taking the threat of shale gas and energy independence very seriously.

Over the past two years, gas exports and revenues fell dramatically for Gazprom. While high monopolistic prices and European dependency on the Moscow-based company certainly played a role in causing country’s to look elsewhere for gas, the role of shale and the desire for energy independence by some countries in Europe such as Poland has undoubtedly been affecting Gazprom.

Oddgeir Danielson, an oil and gas expert in the Norwegian Barents Secretariat, said the repeated postponement of the Shtokman project illustrates current uncertainties in that market and highlights Gazprom’s conflict with shale.

Directors at Shtokman Development will meet again on February 5, 2010 to agree on a new marketing plan for the offshore field. There is a possibility the directors may also delay a final investment decision on the venture.

SOURCES:
Alaska Dispatch: “Gazprom eating crow on shale gas?”
Barents Observer: “Gazprom might abandon Shtokman”
The Guardian: “BP chief hails American breakthrough in gas supplies from shale rocks”
The Moscow Times: “Shtokman Meeting to Consider Gas Buyers”
Business Insider: “Gazprom: Shale is a joke, and it can’t possibly compete with gas”

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Jan 28

Oil Executives Talk Up Shale Gas at Davos

By ckeddy natural gas in the USA No Comments »

New reserves of natural gas found in shale rock are a “big deal” and a “game changer.”  That’s the message today from oil company executives at the World Economic Forum in addressing global concerns about rising dependency on oil and the need to develop cleaner energy to slow climate change.

New extraction methods have opened up large reserves of gas embedded in shale rock in North America. The potential for tapping shale gas reserves in Europe are being explored by companies like Realm Energy.

The surge in gas supplies, combined with new technology, could also reduce the need for oil to fuel the world’s automobiles. Natural gas burns 50 percent cleaner than oil, making it a `greener`fuel choice.

The new shale gas supplies support energy security and energy independence; however, have negative implications for Russia, whose state-controlled company Gazprom provides Europe with about 20 percent of its gas and depends on European sales for the bulk of its profits.

Source: AP

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Jan 28

Exploring France’s Shale Potential

By Trevor J. Murphy shale gas in Europe No Comments »

Though French energy giant Total recently announced a $2.25 billion joint venture with Oklahoma-based Chesapeake Energy Corp., the venture isn’t saying much about the potential for shale gas in France.

This particular deal will see Total invest billions of dollars to acquire 25 per cent of Chesapeake’s Barnett Shale assets – a natural gas field in Texas – rather than staying close to home and exploring the rich resources the European country has to offer.

“There is much shale gas in France,” said Francois Laurant, the man in charge of shale gas at Institut Francais du Petrole. “It has been seeping for centuries around the town of Grenoble in midsoutheastern France. But the disputed areas hold black shale in shallower ground than elsewhere in France like the Paris basin.”

Since late 2008, several companies have been seeking permits to explore shale gas prospects in the southern regions of the country. In August 2009, Toreador was granted a contract for the exploitation of the Paris Basin Oil Shale earning the right to develop 649,000 acres (with an additional 153,000 acres pending approval) where an estimated 65 billion barrels of oil are believed to remain in shale plays.

France’s potential – and, undoubtedly Europe’s potential – was further highlighted when oil giants BP, Shell and Statoil began talks of buying Toreador earlier this month (read: Oil giants BP, Shell and Statoil in talks to buy US-based Toreador Resources) in the interest of acquiring its French shale opportunities.

Shale gas is experiencing an unprecedented boom in the United States, but its popularity is pushing companies and entrepreneurs to look beyond US borders for prime investment opportunities. Recently, Vancouver-based Realm Energy publicly threw its hat into the ring for European exploration, concentrating on eight discrete sedimentary basins in seven European countries and submitted applications for oil and gas rights that collectively extend over 1.5 million acres of land.

SOURCE:
Oil & Gas Journal: “Shale Gas Acreage, European Database Draw Interest”
Rigzone: “Toreador Zeroes is on Paris Basin Oil Shale for Future Developments”
Toreador: “Global Activity – France”
Realm: “Realm Energy Makes Aggressive Play for European Shale Gas Deposits”

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Jan 27

MR. W. Gordon Lancaster Joins Realm Energy’s Board of Directors

By Michaela Davies natural gas in the USA No Comments »

Realm Energy International Corporation (“Realm Energy”) (TSX-V: RLM) (www.realmenergy.ca) is pleased to announce that Mr. W. Gordon Lancaster has joined the Board of Directors of Realm Energy.  Concurrent with Mr. Lancaster’s appointment to the Board, Mr. Stuart Macgregor has resigned as a Director of Realm Energy.

Mr. Lancaster is a Chartered Accountant who has had a distinguished career in executive and board positions.  Mr. Lancaster spent 20 years with Deloitte & Touche, the last five of which were as a partner in the Vancouver office, and following this, he served as Executive Vice President and Chief Financial Officer of the First City group of companies for 10 years.  In 1992, Mr. Lancaster joined the Vancouver International Airport Authority as Chief Financial Officer until 1998 when he joined Lions Gate Entertainment Corp. as Senior Vice President and CFO.  In August 2000, he joined Power Measurement Inc., a Victoria-based high-tech company; a world leader in the design, development, manufacture and marketing of enterprise energy management systems to energy consumers and suppliers.

In 2004, Mr. Lancaster joined Ivanhoe Energy Inc. as Chief Financial Officer where, until his retirement in November 2009, he was responsible for all financial accounting and reporting, including SEC and Canadian regulatory and public disclosure compliance. Mr. Lancaster was also responsible for corporate finance, including the sale of securities and related prospectus filings, negotiations of bank financings, risk management and treasury and cash management.  During this career, Mr. Lancaster has also served on the Boards of Directors of several public and private entities.

“We are very pleased to have Mr. Lancaster join the Board of Realm Energy,” said Craig Steinke, Executive Chairman. “His wealth of experience, especially in the oil & gas industry, will be an invaluable asset to the company. We look forward to his contributions as Realm Energy actively focuses on continued growth and success in developing European shale gas.”

Steinke continued, “Realm Energy would also like to take this opportunity to thank Mr. Stuart Macgregor for his past support.  While he has resigned as Director, we look forward to an ongoing relationship with him as an active shareholder.”


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Jan 26

Realm Energy Makes Aggressive Play for European Shale Gas Deposits

By Michaela Davies shale gas in Europe 1 Comment »
Oil and gas rights could span more than 1.5 million acres
Realm Energy International Corporation (“Realm Energy”) (TSX-V:RLM) (www.realmenergy.ca), is pleased to announce its recent applications for oil and gas rights in multiple countries throughout Continental Europe. The applications were filed following a rigorous evaluation of high potential shale deposits throughout the continent and, if successful, will permit Realm Energy to bring North American technological advancements in shale gas and oil extraction to Europe.
Realm Energy is now concentrating on eight discrete sedimentary basins in seven European countries and submitted applications for oil and gas rights that collectively extend over 1.5 million acres of land. Realm Energy received confirmation of receipt from government bodies that its applications are under active consideration.
“After months of rigorous evaluation, confirmation that our applications are under active consideration is an important step toward our goal of acquiring oil and gas rights over significant lands containing high-potential shale formations,” said Craig Steinke, Executive Chairman. “We stand behind our extensive evaluation process and strongly believe that Realm Energy is positioned to maximize the possibility of favorable outcomes from these applications.”
Realm Energy is collaborating with Halliburton Consulting ( HAL) in aggressively evaluating high potential shale deposits throughout Europe and select emerging countries. In addition to its filed applications, Realm Energy is evaluating other undeveloped shale plays and intends to make further applications to various governments for oil and gas rights in early 2010.
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Jan 21

Oil giants BP, Shell and Statoil in Talks to Buy US-based Toreador Resources

By Michaela Davies shale gas in Europe 1 Comment »

Oil giants BP, Shell and Statoil are in talks to buy US-based Toreador Resources, which holds extensive assets in France’s oil shale play, according to reports.

Source: News wires  Thursday, 21 January, 2010, 08:54 GMT

The companies have signed confidentiality agreements with Toreador, which has a market capitalisation of $210 million, and concluded technical due diligence on the company’s oil properties, Reuters quoted a report on the New York Times’ DealBook blog as saying.

Toreador has the right to develop 649,000 acres in the Paris basin, with a further 153,000 acres pending regulatory approval. Toreador believes the basin’s source rock hosts an estimated 65 billion barrels of oil.  New drilling technology has opened up drilling for oil and gas in complex rock formations, including shale, which were previously uncommercial.  In November, Toreador said it was exploring strategic alternatives, including raising capital by equity or debt offerings, and possible partnership in the Paris basin oil shale.

Shell declined comment. BP and Statoil were not available for comment, Reuters said.

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Jan 20

IEA: “Unconventional gas is unquestionably a game-changer”

By Trevor J. Murphy shale gas in Europe 1 Comment »

The recent capitalization on the exploration of shale gas in North America has transformed the global gas-market outlook, says the International Energy Agency.

The rapid development and extraction of the unconventional gas in places like Haynesville and Marcellus in the Unites States have kick-started the ambition by some companies to look to Europe for vast, unexplored shale plays.

“Unconventional gas is unquestionably a game-changer in North America with potentially significant implications for the rest of the world,” said Nobuo Tanaka, Executive Director of the International Energy Agency in a November press release.

The International Energy Agency estimates that unconventional gas resources in Europe, including coal-bed methane, could amount to 35 trillion cubic meters, six times higher than the continent’s conventional gas resources.

Some oil companies have already begun capitalizing on Europe’s un-tapped shale plays. Royal Dutch Shell PLC, for example, is expected to finish drilling its first three wells by the end of March hoping to extract what one spokesman called “enough gas to cover Sweden’s gas needs for at least 10 years.”

Other companies, such as Vancouver-based Realm Energy International, have also announced the will aggressively continue the evaluation and the acquisition of high potential shale deposits throughout Europe (read: Realm Energy, Halliburton Driving Shale Play Development Outside North America).

The Oil & Gas Journal reports that countries currently being evaluated by international oil and gas companies include France, Germany, Austria, Poland, Hungary and the UK.

SOURCES:
International Energy Agency: Press Releases
Oil and Gas India: “Shell begins drilling for shale gas in Sweden”
Oil & Gas Journal

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Jan 15

What is Shale Gas?

By Michaela Davies natural gas in the USA No Comments »

Discussions about unconventional natural gas resources have become increasing topical in energy circles. So what exactly is unconventional gas?  

In the broadest sense, unconventional natural gas resources (as opposed to conventional natural gas) are gas resources that are generally more difficult, and less economically sound, to extract.  This is usually because the technology to reach it has not been developed fully, or is too expensive.  However,  what was unconventional yesterday, may through some technological advance or ingenious new process, become conventional tomorrow. That is precisely the situation with one form of unconventional resource – shale gas.  

Through technology and geological knowledge advances, shale gas is beginning to make up an increasingly larger percent of the supply picture.  Shale gas is natural gas produced from shale formed from the mud of shallow seas that existed about 350 million years ago (during the Devonian period of the Paleozoic era.) Shale is a very fine-grained sedimentary rock which is easily breakable into thin, parallel layers. It is a very soft rock, but does not disintegrate when it becomes wet. These shales can contain natural gas, usually when two thick, black shale deposits ‘sandwich’ a thinner area of shale.  Although extraction of natural gas from shale formations is more difficult  than extraction of conventional natural gas, the shale gas boom in recent years has been due to modern technology in hydraulic fracturing. 

Shale gas has become an increasingly more important source of natural gas in the United States over the past decade, and interest has spread to potential gas shales in Canada, Europe, Asia, and Australia.

source: Wikipedia, natural gas.org

 

 

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