PALM BEACH, Florida, May 9, 2017 /PRNewswire/ --
The Trump administration wants to reduce dependency on foreign oil and gas production with intentions of providing more jobs to the American people and putting a spring back into the U.S. economy. Opening more federal lands and waters to oil and gas drilling is a pillar of Trump's plan to make the United States energy independent. Companies currently ramping up U.S. operations and / or restructuring for the near future include: Petro River Oil Corp. (OTC: PTRC), Approach Resources Inc. (NASDAQ: AREX), Chesapeake Energy Corporation (NYSE: CHK), Whiting Petroleum Corporation (NYSE: WLL), Oasis Petroleum Inc. (NYSE: OAS).
Petro River Oil Corp. (OTC: PTRC) just announced it made a significant oil discovery. Read more of the announcement below. In a recent OGMarketReport.com article, while most oil and gas industry headlines are focusing on the ability to make a profit with oil trading at near rock bottom prices, why is a discovery important? Previously announced oil discoveries in Alaska by Spanish oil company Repsol SA and Hurricane Energy's claim of 'largest undeveloped (oil) discovery on the U.K. continental shelf,' rocketed the valuation of each company. Each of these discoveries will not impact the actual supply chain until 2021 for Alaska production and 2019 for the UK discovery, meaning additional carrying costs on top of other major company legacy costs. Petro River, with a market cap of $13.5 million, has no legacy costs and no debt and is looking at potential discovery reserves of over 21 mm barrels from its Oklahoma and California projects that can be added to the supply chain as quickly as Petro can drill. Other oil companies making news include Approach Resources (NASDAQ: AREX) and Comstock Holdings Companies as they both beat Street expectations. Read more at OGMarketReport.com
Petro River Oil Corp. announced yesterday a new oil field discovery in its 106,500 acre concession in Osage County, Oklahoma upon successfully drilling the Chat 2-11 exploration well. The Chat 2-11 was drilled to a depth of 2,800 feet into the Mississippian Chat. Initial results indicate up to 20 feet of oil productive formation, following flow and fracking tests, the Company plans to confirm IP rates. Additional wells are being planned to evaluate the extent of this chat field discovery. Read this and more news for Petro River Oil Corp at: http://www.marketnewsupdates.com/news/ptrc.html
The Company is also planning to drill the Channel 1-3 to test Red Fork channel sand and the Chat 1-30 to test a separate chat field. These structures were identified utilizing 3D seismic technology, indicating a potential of over 2.5 million barrels of oil. "This discovery confirms that our exploration technique utilizing 3D seismic is working," said Stephen Brunner, President of Petro River. "We plan to spud two other wells, the Channel 1-3 based on the data from logs of the Channel 1-11 which found approximately 45 feet of tight non-productive Red Fork sand, and the Chat 1-30 a separate chat structure test. Also, we plan to shoot more seismic along the southern part of our concession later this year."
In other industry financial reporting and developments:
Approach Resources Inc. (NASDAQ: AREX) closed up over 13% on Monday at $2.58 trading over 1.6 million shares by the market close. AREX last week reported results for first quarter 2017. Ross Craft, Approach's Chairman and CEO commented, "We accomplished a great deal this quarter and our transformation is on track. We reduced our senior notes outstanding by approximately $145 million and increased our financial flexibility with the completion of a strategic recapitalization that passed with 82% shareholder approval. The resulting interest expense savings, coupled with improving commodity prices, allow us to substantially increase our capital budget to $50 million - $70 million in 2017, to be entirely funded out of operating cash flow.
Chesapeake Energy Corporation (NYSE: CHK) closed up slightly on Monday at $5.55 trading over 39 million shares by the market close. Chesapeake Energy also reported last week its financial and operational results for the 2017 first quarter plus other recent developments. Doug Lawler, Chesapeake's Chief Executive Officer, commented, "Our operational momentum continues to build in our Eagle Ford, Powder River Basin and Mid-Continent oil assets, as we remain on track to reach our production target of 100,000 barrels of oil per day by year-end. We expect our production to grow significantly in the second half of 2017 as we place more wells to sales, and as a result, we have raised the bottom range of our 2017 production guidance.
Whiting Petroleum Corporation (NYSE: WLL) closed up over 4% on Monday at $8.62 trading over 14.2 million shares by the market close. Whiting's production in the first quarter 2017 totaled 10.6 million barrels of oil equivalent (MMBOE), comprised of 84% crude oil/natural gas liquids (NGLs). First quarter 2017 production averaged 117,360 barrels of oil equivalent per day (BOE/d), at the high end of guidance. Lease operating expense (LOE) benefited from a comprehensive water-handling plan and a maintenance program that has reduced well downtime across Whiting's properties. Depreciation, depletion and amortization (DD&A) benefited from enhanced completions and the sale of the Company's North Dakota midstream assets. Oil differentials benefited from the addition of new pipeline infrastructure in the Williston Basin.
Oasis Petroleum Inc. (NYSE: OAS) closed up slightly on Monday as well at $12.12 trading over 11.8 million shares by the market close. Oasis Petroleum announced after the close yesterday its intention to contribute a portion of its midstream assets to a Master Limited Partnership (MLP) and sell a minority interest in the MLP in an initial public offering. The MLP is intended to support Oasis's strategy to grow its midstream business. The midstream assets that are expected to be contributed to the MLP are located in the Williston Basin area of North Dakota and/or Montana and include a portion of Oasis's crude oil gathering and transportation system, natural gas gathering and processing system and water handling systems.
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