Energy UpdateFebruary 25, 2013
Circle Star Energy Corp. of Fort Worth has drilled its second operated well in Trego County, Kan., with drill stem tests and electric log analysis indicating contact with multiple potential oil-bearing reservoirs.
The well, dubbed the Lynd 36-2, has reached a target depth of 4,100 feet. The well is expected to be completed, or ready for production, later this month.
“The analysis of data gathered during the drilling and testing process is very promising,” said CEO Jeff Johnson, commenting in a news release. “We look forward to completing the well and reporting a production rate as soon as it is available.”
Trego County has seen several major oil discoveries since the 1920s. The area has produced more than 67 million barrels of oil in its history. Circle Star operates the Lynd 36-2 well and owns a 25 percent working interest and a 20 percent net revenue interest until payout of the well.
At payout, the company plans to convert to a 43.75 percent working interest and a 35 percent net revenue interest after payout.
Circle Star Energy Corp., an energy exploration and production company, focuses on large-scale oil and gas plays. More information is available at www.circlestarenergy.com.
FTS International recognized in oil and gas awards
FTS International Inc. of Fort Worth has been named a finalist in both the 2012 Northeast Oil & Gas Awards and the 2012 Rocky Mountains Oil & Gas Awards.
The awards programs celebrate the achievements of oil and gas industry upstream and midstream companies, the former involved with underground oil and natural gas exploration, the latter focused on transportation, storage and marketing. The awards programs also recognize service providers and suppliers in relation to health and safety, environmental stewardship and corporate social responsibility.
FTS’ entries highlight the company’s health, safety and environment program.
“Continually improving safety is a team effort for us at FTSI,” said CEO Greg Lanham in a news release.
Lanham noted that the company’s services division decreased its Occupational Safety and Health Administration total recordable injury rate by 38.3 percent in the past year, making its incident rate 58.8 percent lower than its national industry peer group, as reported by the U.S. Bureau of Labor Statistics.
Award winners will be announced at the inaugural Northeast Oil & Gas Awards gala on March 14 in Pittsburgh and at the Rocky Mountains Oil & Gas Awards event on March 12 in Denver. Senior executives from the oil and gas industry reviewed almost 300 entries from about 200 companies, according to awards program representatives.
The list of finalists is posted at www.oilandgasawards.com.
FTS International, formerly Frac Tech International, provides well-stimulation services for the oil and gas industry. More information is available at www.ftsi.com.
Concho Resources reports
26 percent production increase
Concho Resources Inc. of Midland produced 29.8 million barrels of oil equivalent in 2012, 26 percent more than the previous year, according to the company’s newly released annual operational update.
Year-end estimated proven reserves totaled 447.2 million barrels of oil equivalent, representing about 16 percent more than in the same period in 2011.
“We are in the very early stages of driving proved reserves and production growth in the Delaware Basin,” said president and CEO Tim Leach, commenting in a news release.
The company’s northern Delaware Basin drilling activity has expanded to more than 4,200 gross locations, Leach added.
“Going forward, I expect that the robust returns from this deep inventory will continue to drive organic production and proved reserves growth for years to come,” Leach said.
Between 2007 and 2012, the company’s total proved reserves have grown at a five-year compounded annual growth rate of 37 percent. But 2012 growth proved challenging, according to the company, due to limited development history in the Delaware Basin, the company’s greatest area of capital investment. By year-end 2012, the company’s estimated proved reserves in the basin rose 64 percent compared with year-end 2011 while representing only 18 percent of its total estimated proved reserves.
Tristream opens third-party sweet condensate terminal
Tristream East Texas LLC of Houston has completed the first phase of expanding its condensate stabilization business at its Myrtle Springs facility in Van Zandt County, between Dallas and Longview.
The completion allows Tristream to stabilize up to 3,000 barrels per day of third-party sweet condensate at the facility. Expansion plans are under way to double capacity to 6,000 barrels per day.
“This project will provide a much-needed service to the booming shale gas production industry and better serve producers in the Eagle Ford shale and other active areas,” said Mark Thomas, vice president of commercial and project management, commenting in a news release.
“Due to the increased demand for condensate stabilization, Tristream is reactivating and expanding idle condensate stabilization capacity. This will serve to significantly enhance the value and marketability of producers’ condensate from the rapidly expanding resource plays in the southwest United States,” Thomas said.
Tristream East Texas LLC, a wholly owned subsidiary of Tristream Energy LLC, is a midstream operating company providing gas gathering and processing services to producers in East Texas. More information is available at www.tristreamenergy.com.
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