oil field news

Saskatchewan

How wet is it in Saskatchewan?

It’s so wet that Crescent Point Energy Corp. has had 8,000 barrels of oil equivalent shut in for the second quarter and expects that 1,500 boe/d will remain shut in until 2012.

President and chief executive Scott Saxberg said describing the weather as “wet” doesn’t begin to cover it.

“We describe it as a flooding. It’s not so much the wet weather and the rains, it’s the floods that created the disruption for us in the quarter,” he said.

“We saw that a year ago. Last year there was so much rain and bad weather so we knew the groundwater table was really high going into Q2 so we budgeted and prepared for it as much as we could. And it was a disaster out there … our field staff out there did a tremendous job. A few families had their houses flooded out completely and they battled through that.

“There’s lakes out there. It’s been hot and a lot of the water has evaporated and the flood waters are slowly subsiding and draining into the rivers but we feel it could be a full year before it really drains, depending on the future weather. There’s still a concern that if it rains hard as it did in September-October last year, we could have difficult conditions later this year.”

Some of the oil is trucked from single well batteries and inaccessible if the roads are washed out but the flooding has disrupted wells that are tied in too.

“Even wells that are tied in flooded because the water was higher than the pumpjack motors. Even though they were tied in so you didn’t have to truck it, you couldn’t produce it.”

 

http://blogs.calgaryherald.com

Energy Company Buys Oilfield Trucking Firm

CALGARY, Alta. -- Provident Energy has taken ownership of two-thirds of oilfield hauling fleet Three Star Trucking in a deal worth about $20 million.

 

Three Star Trucking is based in Alida, Sask. and operates in Saskatchewan, Manitoba and North Dakota hauling crude oil and other oilfield-related liquids.

 

"The acquisition of this two-thirds interest in Three Star expands Provident's logistics footprint in the Bakken area, one of the most exciting resource plays in North America, and creates a strong partnership with a highly regarded and growing player in the industry," announced Doug Haughey, president and CEO of Provident Energy.

 

Three Star Trucking operates 170 tractors and 160 trailers. Provident said the acquisition will also allow it to expand its NGL and diluent logistics services businesses.

 

The deal is expected to close on or before Oct. 1, and Provident has the option of buying the remainder of the company after three years.

 

Source:  www.trucknews.com

Provident Announces Purchase of Saskatchewan-Based Oilfield Hauling Company

CALGARY, ALBERTA, Jul 11, 2011 (MARKETWIRE via COMTEX) -- All values are in Canadian dollars.

Provident Energy Ltd. ("Provident") CA:PVE -0.24% PVX -0.23% is pleased to announce that it has reached an agreement to purchase a two-thirds interest in the equity of Three Star Trucking Ltd. ("Three Star"), a Saskatchewan based oilfield hauling company serving Bakken-area crude oil producers.

 

"The acquisition of this two-thirds interest in Three Star expands Provident's logistics footprint in the Bakken-area, one of the most exciting resource plays in North America, and creates a strong partnership with a highly regarded and growing player in the industry" said President and Chief Executive Officer, Doug Haughey.

 

Three Star is a privately held enterprise based in Alida, Saskatchewan operating in Saskatchewan, Manitoba and North Dakota, providing fee-for-service hauling of crude oil and related oilfield liquids for major Bakken area producers. Three Star has a new and well maintained fleet of approximately 170 tractors and 160 trailers. In addition to building a strong presence in crude oil hauling, the transaction will also provide Provident the opportunity to further expand its NGL and diluent logistics service businesses.

 

The transaction is valued at approximately $20 million, comprised of approximately $8 million in cash, 945,000 Provident shares and approximately $4 million of assumed bank debt and working capital. Provident will retain the option to purchase the remaining minority interest in Three Star after three years from the closing date, anticipated on or before October 1, 2011. This acquisition will be immediately accretive to both cash flow and earnings on a per share basis.

 

This news release contains certain forward-looking statements concerning Provident, as well as other expectations, plans, goals, objectives, information or statements about future events, conditions, results of operations or performance that may constitute "forward-looking statements" or "forward-looking information" under applicable securities legislation. Such statements or information involve substantial known and unknown risks and uncertainties, certain of which are beyond Provident's control, including the impact of general economic conditions in Canada and the United States, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, pipeline design and construction, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities.

 

Such forward-looking statements or information are based on a number of assumptions which may prove to be incorrect. In addition to other assumptions identified in this news release, assumptions have been made regarding, among other things, commodity prices, operating conditions, capital and other expenditures, and project development activities.

 

Although Provident believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Provident can give no assurance that such expectations will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by Provident and described in the forward-looking statements or information.

 

The forward-looking statements or information contained in this news release are made as of the date hereof and Provident undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise unless so required by applicable securities laws. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.

 

Source:  www.marketwatch.com

Palko Announces New Bakken Waste Facility at Stoughton, Sk and Renews Banking Agreement

Palko Environmental Ltd. ("Palko" or "the Company") CA:PLK -2.30% is pleased to announce that it has received regulatory approval and will commence construction of a new oilfield waste handling facility in the Stoughton/Viewfield area of Saskatchewan. Along with Palko's recently announced new Oungre facility, operations are expected to begin in the latter part of 2011.

 

"With estimates of total oil in place starting at 4 billion barrels of high netback oil, the Stoughton/Viewfield Bakken is the second largest conventional light oil pool in Canada. We are pleased to provide our Bakken customers with superior oilfield waste handling, recovery and disposal through the Stoughton spoke of Palko's southeast Saskatchewan network of four facilities" said Steven Peterson, Palko's President.

 

Palko obtained a wellbore next to the Stoughton facility and will recomplete the well for disposal. The facility will accept upstream oilfield waste fluids and treat produced oil emulsions. The facility is adjacent to a provincial highway and Enbridge's crude oil pipeline network. Future expansion possibilities for the site include solid waste management, water recycling and pipeline connected terminalling. Funding for the Stoughton facility will be attained from 2011 operating cash flows and availability on credit facilities.

 

Palko is also pleased to announce that it has renewed and increased its available credit facilities from $21.6-million to $23.5-million. The credit facilities consist of: a $3-million operating facility due on demand; and a $20.5-million committed 364-day extendible revolving credit facility. If not extended for a further 364 days on May 31, 2012 the extendable revolving facility will be repayable in 24 equal monthly payments and fully repaid by May 31, 2014. 2011 anticipated cash flow in combination with the increased credit facility should provide ample liquidity to fund current year operating and capital programs.

 

Source:  www.marketwatch.com

Flooding Engulfs Oil-Patch Producers

Farms aren't the only businesses in the province suffering from the worst spring flooding in recent memory, especially in the southeastern part of the province where agriculture has taken second place to oil production.

 

The Bakken oil field in the Estevan-Weyburn area has become the toast of North America's oil industry, employing thousands of people. Flooding there has delayed work by months as drilling sites remain submerged, forcing companies to shut down production and lay off workers.

Muddy, washed out roads have added another layer of difficulty, making it impossible for crews to reach some rigs, industry spokesmen say, leading to worries about leaks and other maintenance problems.

 

Andy Schroeder, who runs A&S Oilfield Operating Ltd. in Estevan, says the situation facing oil patch operators couldn't be worse.

 

Exploration and drilling is down about 15 per cent, Schroeder told CBC Radio's Blue Sky program last week, thanks to a perfect storm of flooding and road bans instituted by many rural municipalities on anything much bigger than a half-tonne pickup truck.

 

The terrible situation on the ground means there is little the companies can do.

 

"The ground is so saturated in this area you can't ... do anything out on the land without sinking out of sight," Schroeder said, adding that any temporary measures to ease the situation would be throwing good money after bad.

 

The companies can only wait until the water recedes, he said, adding that even if the rain stopped immediately, it would likely take until September for full production to resume. Even that might be optimistic, he said. Full resumption might not return until the winter freeze.

 

And that means layoffs not only in the immediate industry, he said, but also in supporting businesses, including firms that service the rigs and trucking outfits that supply them.

 

The job losses will even extend to farmers, many of whom have turned to oilpatch jobs as a means to keep the family farm solvent, Schroeder said: Firms would be unlikely to hire them while they still have staff waiting to go back to work.

 

Source:  www.cbc.ca/news

Palko Announces Approval and Construction of a New Oungre, SK Waste Handling Facility

Palko Environmental Ltd. ("Palko" or "the Company") (TSX:PLK) announces that it has received final regulatory approval and will commence construction of a new waste handling facility in the Oungre/Hoffer area of Saskatchewan. Palko expects operations to begin before the end of 2011.

 

"We are excited to announce the addition of the Oungre/Hoffer facility. This addition demonstrates Palko's commitment to servicing our expanding customer base in southern Saskatchewan and expanding Palko's network of Oilfield services," said Steven Peterson, Palko's President. The new facility will service the emerging multi-zone Mississippian play in the area, existing Bakken and Weyburn production in south Saskatchewan, and industrial customers generating hydrocarbon impacted wastes.

 

Palko previously obtained wellbores in this area and will now recomplete one waste disposal well while maintaining the others for future development. The Oungre facility will be approved to accept upstream and downstream oilfield wastes, hydrocarbon impacted industrial waste fluids, and treat produced oil emulsions. The facility is adjacent to a provincial highway, within pipeline distance to Enbridge's crude oil pipeline network, and located close to North Dakota's substantial Bakken production. Future expansion possibilities include solid waste management and pipeline connected terminalling.

 

In conjunction, Palko is pleased to announce that the company has increased its board approved capital budget for 2011 from $1.7M to $8.3M. According to Mr. Peterson, "This increase allows us to take advantage of opportunities in south Saskatchewan and capitalize on the ongoing recovery in oil and gas exploration in Western Canada". The revised capital budget includes Palko's Oungre facility, another previously announced planned facility servicing Bakken production, and service expansions in Alberta. Funding for the revised capital budget will come from operating cash flow and availability on our existing credit facilities.

 

Source:  www.marketwire.com

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