American Energy Production, Inc. Announces Increased Oil Production from Investee Production, Resources Inc.
September 20, 2005 09:00:28 (ET)
MINERAL WELLS, Texas, Sep 20, 2005 (BUSINESS WIRE) -- American Energy Production Inc. (AMEP, Trade) announced today its wholly owned investee, Production Resources, Inc. posted significant oil production increases after several months of testing various procedures utilizing AMEP HOA 800. PRI discovered a method of well treatment that combines the utilization of heat along with AMEP HOA-800 in a chemical process that has returned positive results. PRI has increased oil production from the Olmos formation on the 12 test wells by as much as 500% for the month of August. Plans are being implemented to expand the testing area to an additional 25 oil wells in the next 45 days. In august PRI produced 987 barrels of oil at gross sales of approximately $55,000.00
Charles Bitters, President of American Energy Production, Inc. stated, "This is the best month for oil production and revenues that PRI has done since AMEP bought the Company. PRI has been working extremely hard on achieving the desired results with AMEP HOA-800 and now believe its time to start expanding this treatment program. There is still room for improvement, but I believe PRI can now benefit because of current record high oil prices and increased production rates from the Olmos heavy oil sand field. This oil field is very difficult to produce because of the tight sand and the compaction of the heavy oil in the sand; still these are very exciting results."
Management cannot discuss the details and/or formulations being used with AMEP HOA- 800, but PRI believes the heat treatment once perfected can possibly be sold to other oil operators. The Company will keep investors informed of the expanded test results.
Also on June 28, 2005 AMEP announced that wholly owned investee Bend Arch Petroleum, Inc. is in the process of filing permits to re-enter another well in the Barnett Shale formation located on its 12 well Palo Pinto Project. This well could be our most significant to date and a major milestone for the company due to the 1000 to 1500 horizontal lateral line that will be drilled in the Barnett Shale. With the purchase of a 8,000 foot drilling rig by AMEP Strategic Investments Inc., another investee of American Energy Production Inc., this will be the first well the drilling rig will be moved to. In most scenarios a horizontal well will produce more oil and natural gas than a vertical well. The Company is extremely excited about the potential for this Barnett Shale well. Bend Arch Petroleum is in a great position to benefit from record high prices for oil and natural gas prices because the Company has accumulated over 7,000 acres of leases that have potential Barnett Shale production.
Gulf Oil Refineries, Rigs Hunker Down Wednesday September 21, 5:23 pm ET By David Koenig, AP Business Writer Texas Oil Refineries, Gulf Rigs Hunker Down As Rita Grows More Violent, Takes Aim
Oil companies began closing Texas refineries Wednesday, threatening the supply of gasoline to the nation's pumps as Hurricane Rita grew more violent and took aim at a stretch of Gulf coast that holds one-fourth of the nation's oil-refining capacity. ADVERTISEMENT
Experts say the refineries, nestled in a 300-mile swath from the Louisiana border to Corpus Christi, would recover within a couple days from a glancing blow. But if Rita swamps Houston as Hurricane Katrina did to a three-state area along the Gulf of Mexico last month, they warn, the storm will take more dollars from motorists' wallets and add to the problems of the nation's airlines.
BP PLC began closing its massive Texas City refinery on Wednesday. Marathon Oil Corp. and Shell Oil did the same at their refineries near Houston. Shell's refinery kept running through the last major Texas hurricane, Alicia in 1983.
"It was a split decision between taking a risk and playing that waiting game of seeing where it's going to land, and being sensitive to employees getting home," said David McKinney, a Shell spokesman. "Once we made the decision, everybody felt good."
Meanwhile in the Gulf of Mexico, Rita began to take a toll on oil production, which hadn't yet fully recovered from last month's Hurricane Katrina. Fresh evacuations that began this week in the eastern waters of the Gulf spread farther west, one step ahead of the storm.
Rita threatens to compound the havoc caused by Katrina, which damaged oil platforms and knocked out refineries, four of which in Louisiana remain dark. They had accounted for about 5 percent of U.S. refining capacity and weren't expected to resume operations anytime soon.
Combined, the damage from Katrina and the precautionary evacuations due to Rita have slashed normal Gulf oil production of 1.5 million barrels a day by 73 percent, the U.S. Minerals Management Service said Wednesday.
Since Katrina evacuations began Aug. 26, the storms have cut more than 27 million barrels of oil production, or 5 percent of the Gulf's annual production, the agency said. Natural gas production was 47 percent below normal on Wednesday.
Oil and gasoline prices could spike again if Rita causes additional disruptions in supply, market analysts say.
Rita became a Category 5, 165-mph behemoth Wednesday and was expected to hit the Texas coast this weekend.
"We're closely watching this hurricane, and we realize its full potential," said Neil Geary, a spokesman at the BP refinery, which produces gasoline, jet fuel and other products.
At first, Shell sent nonessential personnel home and kept parts of the refinery running. By afternoon, the decision was made to shutter the entire plant.
Texas refineries are clustered around Houston, Port Arthur and Corpus Christi, "and any one of those being forced to shut down is pretty bad," said Roger Diwan, who studies oil markets for research and consulting firm PFC Energy in Washington.
Diwan said under the best circumstances -- if the hurricane causes no damage to the plants -- it would take four to five days for the refineries to resume operations after a shutdown.
"That will reduce supply at a time when we don't need it," he said.
Oil prices climbed more than $1 a barrel on Wednesday, as traders calculated the possibility that Rita could damage oil-industry facilities on land or in the Gulf of Mexico. Heating oil jumped nearly 3 cents to $2.0387 a gallon, while gasoline surged more than 7 cents to $2.0531 a gallon.
Analyst Tom Kloza of research firm Oil Price Information Service called the reaction hysteria -- unless Rita scores a direct hit on Texas City or the Houston Ship Channel, which is lined with refineries and chemical plants.
Kloza said that unlike the Louisiana refineries that were knocked out by Katrina, the Houston-area plants are well above sea level and have withstood big storms before. The most likely threat, he said, might be power outages that could halt refineries for two to five days.
Some refiners were keeping their plants running until Rita got closer -- it can take 12 to 24 hours or longer to shut down, they said. For example, Exxon Mobil was continuing to operate refineries and chemical plants in Baytown, Beaumont and in Baton Rouge, La.
The Houston area is also home to many chemical plants. Dow Chemical's seaside plant behind a 16-foot levee in Freeport, southwest of Houston, remained operating normally at midday Wednesday, a spokesman said. But Lyondell Chemical Co. began closing two plants, one in a marshy inland area and the other near the Gulf.
With plants scattered along the Texas coast from Houston to Corpus Christi, "No matter where it hit, we were going to have to take some action," said Lyondell spokesman David Harpole.
Out on the Gulf waters, driller Transocean Inc. dragged four moveable rigs in the central Gulf out of the storm's projected path and evacuated about 500 workers from three rigs that are moored to the seabed floor. The Houston company's decision to evacuate was shaped by its experience last month with Katrina.
"Right now, the storm path is south of those (moored) rigs, but that's what happened with Katrina until it made a looping turn and went into the eastern side of New Orleans," said Transocean spokesman Guy Cantwell. "So we're not taking any chances."
BP, which began evacuating workers from platforms off the Alabama coast Sunday, said it was also removing nonessential employees from platforms in the western Gulf, out in front of Rita's path.
Exxon Mobil, Chevron Corp., Shell, a subsidiary of Royal Dutch/Shell Group, El Paso Corp. and others also continued to evacuate employees from many rigs and platforms.
The airline industry is likely to be a loser from Rita. Four of the nation's six oldest carriers are in bankruptcy protection, partly because U.S. carriers will pay $9.2 billion more for fuel this year than last year, according to the Air Transport Association, an airline trade group. Now Rita threatens to send jet fuel prices even higher.
"Even if we can get through this," said the group's chief economist, John Heimlich, referring to Rita, "it comes at a price, which is difficult when you're sitting on the fence of Chapter 11."
Posts: 210 | From: tampa, fl, us | Registered: Nov 2004
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NEW YORK (CNN/Money) - Remember when gas spiked to $3-plus a gallon after Hurricane Katrina? By this time next week, that could seem like the good old days.
Weather and energy experts say that as bad as Hurricane Katrina hit the nation's supply of gasoline, Hurricane Rita could be worse.
Katrina damage was focused on offshore oil platforms and ports. Now the greater risk is to oil-refinery capacity, especially if Rita slams into Houston, Galveston and Port Arthur, Texas.
"We could be looking at gasoline lines and $4 gas, maybe even $5 gas, if this thing does the worst it could do," said energy analyst Peter Beutel of Cameron Hanover. "This storm is in the wrong place. And it's absolutely at the wrong time," said Beutel.
Michael Schlacter, chief meteorologist at Weather 2000, said Rita now appears most likely to hit between Port Arthur and Corpus Christi, Texas, sometime between Friday afternoon and Saturday morning.
Just about all of Texas's refinery capacity lies in that at-risk zone. (For a look at CNN.com's coverage of Hurricane Rita, click here.)
"There is no lucky 7-10 split scenario to use a bowling analogy," he said. "If you're [a refiner] within 200 miles, you're going to feel the effect."
Compounding Katrina's impact When Katrina hit, 15 refineries, nearly all in Louisiana and Mississippi, with a combined capacity of about 3.3 million barrels a day were shut down or damaged, according to the Energy Department. That represented almost 20 percent of U.S. refining capacity.
Within a week, almost two-thirds of that damaged capacity had resumed some operations, according to the department. But four refineries with nearly 900,000 barrels a day of capacity are still basically shut down.
If Rita hits both the Houston-Galveston area, as well as the Port Arthur-Beaumont region near the Texas-Louisiana border, that could take out more than 3 million barrels of capacity a day,according to Bob Tippee, editor of the industry trade journal Oil & Gas Journal in Houston.
"Before Katrina, the system was already so tight that the worst-case scenario was for a disruption that took 250,000 barrels of capacity out of the picture. That would have been considered a major jolt," said Tippee.
"We're already in uncharted territory now. We can't project what happens from another shot the size of Katrina or worse."
Part of the problem is that skilled crews needed to make refinery repairs are already busy trying to fix the Katrina damage. That would extend recovery time from Rita.
"[Rita] could have a significant impact on supply and prices -- this really is a national disaster," Valero Energy (Research) CEO Bill Greehey in an interview with Reuters Tuesday evening.
Anyone watching the news??? expect gas to hit $5.00 or so,right now its moving up in Maryland to well over $3.
NYMEX declares force majeure due to Rita
NATURAL GAS WILL EXPLODE MONDAY!!!!!!!
5 minutes ago NEW YORK (Reuters) - The New York Mercantile Exchange said Friday it declared force majeure on September natural gas deliveries due to the closure of the Sabine Pipeline which operates the key Henry Hub delivery point in Erath, Louisiana.
On Thursday, Sabine shut down a pipeline ahead of Hurricane Rita's expected landfall along the Gulf Coast and declared a force majeure, the exchange said in a statement
Quest, I think I know how you think this will play out, but looks like there can be two possible scenario's here with the weather. The downside, operations are halted and nothing is refined, produced, sold, whatever you want to call it. The upside, when things return to "normal" next week, prices skyrocket and one would believe AMEP and others will do extremely well. Is that your position that today people are looking at the negative of having operations curtailed and hence a great time to pick up more shares and then you expect the big positive boom next week? Thanks for your input!
-------------------- I may be wrong, but I don't think so.... Posts: 837 | From: Madison, WI | Registered: Sep 2005
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in simpler terms the meaning is that major companies will not be responsible for any issues caused to anyone due to lack of natural gas including life threatening such as lack of heating,N gas supplied electrical issues and so on.