Oklahoma City-based, SandRidge Energy Inc., an independent oil and natural gas company, is working hard to increase liquidity in the current climate.
The company is currently in negotiations to sell its midstream assets located in the Piñon Field. “We have received tremendous interest in our Piñon midstream assets from multiple parties and now anticipate a sale of these assets in the second quarter of 2009,” said Tom Ward, SandRidge chairman, CEO, and president.
The sale (which it expects to be valued at $500 million from a combination of net cash proceeds and reduction in midstream capital expenditures) is expected to run alongside the completion of a planned private placement.
SandRidge has priced a private offering of 2.25 million shares of a new series of 8.5% convertible perpetual preferred stock for net proceeds of nearly $207 million. The company has also granted a 30-day option to the initial purchasers to purchase an additional 400,000 shares, or $40 million, of convertible preferred stock solely to cover over-allotments, if any.
If both the private placement and the Piñon Field sale come to pass, the company plans to increase its 2009 capital expenditure budget from $500 million to $700 million.
“As we’re raising a CAPEX, it’s all in conjunction of having a midstream sale and the sale of preferred stock to give plenty of cushion to move forward in our capital structure,” a SandRidge spokesperson explained.
“By increasing our budget $200 million dollars in 2009, we will accelerate development drilling of our Warwick thrust high CO2 wells, and fill our Century plant Phase 1 in 2010,” said Ward.
These are continued positives for a company that expects to announce a 56% increase in production over 2007 numbers. Total production for 2008 is expected to be roughly 100 bcfe.
“We’re in a position to raise over $700 million dollars for the company in the next few months and put ourselves in the position of financial strength enabling substantial growth not only in 2009, but in 2010, and 2011, where we see ourselves at that point becoming a company that can be cash-flow positive,” Ward commented.
—Mikaila Adams
Intermoor completes mooring operations for CABGOC in Angola
InterMoor Inc., an Acteon company, has anchored a mobile offshore drilling unit and preset anchors for a tender assist drilling vessel for Cabinda Gulf Oil Co. Ltd. (CABGOC) offshore Angola.
InterMoor provided design, engineering, procurement and installation services for the permanent preset moorings at the Tombua Landana location and the Tombua South drill center. The company also handled the fabrication of a 60-foot suction follower and various installation aids that were required for the installation of suction-embedded plate anchors at the Tombua Landana location.
Eight mooring anchors were installed at both of the locations. At the Tombua Landana location, installation of the eight SEPLA anchors at a water depth of 1,250 feet began Oct. 28 and was completed Nov. 5.
This project marks the first time SEPLA anchors and a polyester preset (to be installed in mid-2009) were used offshore Angola for CABGOC, a Chevron subsidiary.
Photo courtesy of InterMoor Inc.
“Successful installation of the SEPLA anchors is an important milestone for InterMoor on a project that has included several challenges, including vessel availability, investigation of various installation methods, fabrication requirements and limited installation windows,” said Michael O’Driscoll, a project manager for InterMoor.
Polyester lines specifically designed and fabricated for the Tombua Landana site will be attached to the preset SEPLAs and anchor chain using subsea mooring connectors in mid-2009. The preset system will then be used to hook-up and moor the TAD vessel.
IFC will invest $25 million to support E&P in Thailand, Laos
The International Finance Corp. said on Jan. 14 that it has agreed to provide $25 million of financing for oil and gas exploration and production activities in Thailand and Laos.
The work will be led by Salamander Energy Plc., a London-based independent producer which operates exclusively in Southeast Asia. IFC said it would acquire a minority equity interest in the Savannakhet production sharing contract in western Laos and in two concessions in the underdeveloped Loei and Chaiyaphum provinces of northeastern Thailand.
The project in Laos may pioneer development of a local oil and gas industry since it is the first E&P investment in the country since 1998, according to the World Bank Group member. It said that if the project becomes commercial, it will supply income to the government, create jobs and provide training opportunities in local communities.
If the project is successful, it would increase supplies of natural gas which is in high demand in the Mekong River Delta, IFC said. It said that the project also could support regional cooperation between Laos and Thailand through the potential export of gas-generated electricity to Thailand and possibly lead to other infrastructure developments between the two countries.
IFC already is a Salamander shareholder and provided a $50 million loan to the company last year as part of a $200 million reserve-based facility, it indicated.
—Nick Snow, Washington Editor
European patent granted for Caledyne’s metal-to-metal seal
Aberdeen, Scotland-based Caledyne is an engineering company that provides mechanical engineering expertise to various industries. The company’s retrievable metal-to-metal (MTM) downhole seal system was introduced to the oil and gas industry in 2007 and has recently been granted a European patent.
Developed at the company’s base in Aberdeen, Scotland, the MTM downhole seal consists of flexible material contained inside a metal shell. The structure creates a complete metal barrier in the well. The system acts in a similar way to a standard rubber or elastomeric seal, while remaining resistant to high hydrogen sulphide (H2S) and carbon dioxide (CO2) concentrations.
Performance-rated to above 10,000psi at 300°C, the MTM seal can be installed on permanent and retrievable packers, bridge plugs, hanger packers, sliding sleeves, and subsea sealing applications such as plugs and flange seals.
The most recent installation of the technology has been in Asia for Talisman on the Bunga Kekwa project in Malaysia in conjunction with Caledyne’s retrievable bridge plug.
—Mikaila Adams
FMC Technologies to acquire 45% of Schilling Robotics for $116M
FMC Technologies has signed an agreement to acquire a 45% interest in Schilling Robotics LLC for $116 million.
FMC Technologies manufactures and supplies subsea production systems. Schilling Robotics produces of ROVs (remotely operated vehicles), ROV manipulator systems, control systems, and other equipment and services for oil and gas subsea exploration and production.
FMC Technologies chairman, president, and CEO, Peter D. Kinnear said, “This is a unique and exciting opportunity to expand our subsea business in a new direction. Our global subsea franchise will assist Schilling Robotics in extending its reach worldwide and better position it to serve its customers. Additionally, the relationship will allow FMC to participate more fully in the increasing integration of remote activities performed on the seabed such as subsea processing, well intervention and production optimization.”
Additionally, FMC Technologies is acquiring the rights to exercise an option over the two year period beginning in 2012 to acquire the remaining 55% of the company.
Davis, Calif.-based Schilling has regional offices in Houston and Aberdeen and a staff of more than 300.
A former FMC Technologies employee, David Marchetti, was recently named the director of Gulf of Mexico operations for Schilling.
—Mikaila Adams
