Hercules Offshore Files Bankruptcy For Second Time In Less Than A Year
May 27, 2016
Oilfield services company Hercules Offshore filed for Chapter 11 bankruptcy protection, the second time it's done so in less than year.
This time, however, the company is selling assets to pay off investors.
Hercules transferred the right to acquire the rig, formerly named Hercules Highlander, to a subsidiary of Maersk Drilling. Maersk Highlander UK Ltd. succeeds to the right to take delivery of the rig and will settle the final payment of approximately $196 million with Jurong.
In August of 2015, the company filed for bankruptcy and emerged in November after restructuring with a new $450 million credit facility. That filing showed that the Houston company had $1.3 billion in debt and $546.3 million in assets, at the time.
Hercules completed its first restructuring in early November.
On November 6, 2015, Hercules completed its initial financial restructuring under Chapter 11 of the U.S. Bankruptcy Code with a new $450 million senior secured credit facility in place. While there has been a slight recovery in crude prices, a barrel broke $50 for the first time this year, there has been tremendous damage in the energy industry.
Trump Appeals To Oil Sector, Vows To Cancel Obama’s Climate Agenda
May 27, 2016
Donald Trump, the presumptive Republican presidential nominee, promised on Thursday, to roll back some of America’s most ambitious environmental policies, actions that he said would revive the ailing US oil and coal industries and bolster national security.
Among the proposals, Trump said he would pull the United States out of the UN global climate accord, approve the Keystone XL oil pipeline from Canada and rescind measures by President Barack Obama to cut US emissions and protect waterways from industrial pollution.
Trump and His Democratic Rivals: A Stark Contrast
Trump addressed an audience of 7,7000 people at the Williston Basin Petroleum Conference in Bismarck, the capital of oil-rick North Dakota. It was Trump’s first speech detailing the energy policies he would advance if elected president. He received a loud applause from the crowd of oil executives.
"Any regulation that’s outdated, unnecessary, bad for workers or contrary to the national interest will be scrapped and scrapped completely. We’re going to do all this while taking proper regard for rational environmental concerns."
The comments painted a stark contrast between the New York billionaire and his Democratic rivals for the White House, Hillary Clinton and Bernie Sanders, who advocate a sharp turn away from fossil fuels and toward renewable energy technologies to combat climate change.
With $50 Oil Pioneer Natural Resources Plans To Start Drilling
May 27, 2016
As oil hovers near $50 per barrel, Pioneer Natural Resources has become more optimistic and is planning for the return of five to 10 rigs, once it is confident the upturn in oil is more sustainable.
"I think it is fair to say we're more optimistic than we were last month and even the month before that. We're cautiously optimistic that we're going to see improvement here in the second half of the year," said Frank Hopkins, senior vice president of investment relations at Pioneer.
Pioneer said in its earnings release last month that it is "expecting to add five to 10 horizontal drilling rigs when the price of oil recovers to approximately $50 per barrel and the outlook for oil supply/demand fundamentals is positive."
Hopkins said the company has been monitoring the oil inventory data from the U.S. Energy Information Administration and when officials are convinced the market has turned, they will move on putting the rigs into operation in the Northern Spraberry/Wolfcamp. "What's really going to convince us is that inventory levels continue to come down," he said. Wednesday's EIA report showed a drawdown in U.S. supply of 4.2 million barrels last week from the week earlier level.
Massive Drilling Project Planned For Utah's Uinta Basin
May 26, 2016
The vast oil and natural gas deposits of Utah's Uinta Basin are like a multilayered "cake of opportunity" waiting to be sliced into with horizontal drilling, which is why Scott Saxberg believes the area's worth another $50 million investment this year.
Saxberg, president and chief executive officer of Crescent Point Energy, joined Gov. Gary Herbert at a news conference Wednesday during the fifth annual Governor's Utah Energy Development Summit to detail plans for a potential 4,000-well oil and gas project in the basin.
"We're (starting) now, and by the time oil prices come back, we can pursue the project in a greater way," Saxberg said, describing rich layers of oil and gas deposits that have yet to be tapped in the region in any earnest way via horizontal drilling.
The new wells would be phased in over three decades in locations dependent on where the resources are, he added.
Saxberg said the region is a multilayered cake of opportunity, yet is home to only 300 horizontally drilled wells.
By comparison, the southern Saskatchewan region in Canada, home to the Bakken shale formation, has 20,000 horizontally drilled wells and comprises the bulk of the relatively young company's drilling activity.
"The basin has not yet been developed through horizontal means, which has been very successful in other states in opening up plays that people didn't realize were as good," he said.
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