PALM BEACH, Florida, April 18, 2018 /PRNewswire/ --
MarketNewsUpdates.com News Commentary
The oil industry forecast remains favorable as global leaders are set to meet to discuss strategic alliances in light of enhancing and maximizing the supply of the natural resource. Industry strategists have indicated they expect high volatility in oil prices to continue, due to the push-pull of geopolitical and policy risks. In addition, crude-oil production from seven major U.S. shale plays are expected to see a climb of 125,000 barrels a day in May to 6.996 million barrels a day, according to a report from the Energy Information Administration released recently. Producers in the United States have recently seen their production forecast increase behind a favorable political and environmental climate under the current administration. Several prominent topics in the industry remain global alliances, the acquisition of new resources and aggressive drilling results. Active energy stocks in the markets include:Molori Energy Inc. (OTC: MOLOF) (TSX-V: MOL), ConocoPhillips (NYSE: COP), Andeavor (NYSE: ANDV), Marathon Petroleum Corporation (NYSE: MPC), Statoil ASA (NYSE: STO).
Molori Energy Inc. (OTCQB: MOLOF) (TSX-V: MOL.V) BREAKING NEWS: Molori is pleased to announce that the Company is selling oil produced from its Red Cave well the Thompson 23-1R.
The well was completed earlier this year following which the well was logged with the logs showing a hydrocarbon pay zone of approximately 40 feet across the 300 foot Red Cave zone.
In January, Molori's Borger-based operational team completed a large-scale water frac on the Thompson 23-1R. An initial production (IP) rate of approximately 28 boepd was achieved., Molori's ability to access light oil from the Red Cave demonstrates Proof of Concept of Molori's thesis on the Red Cave Formation
Having completed an extensive analysis on the production patterns from the 23-1R well Molori`s technical team has gleaned that revising its completion technique will achieve increased production rates. Future wells will include ball drops during the pre-frac breakdown and again during the water fracture treatments to divert the fluid and frac sand to treat the entire zone more uniformly. In addition, resin sand will be used during the tail of the job to reduce the amount of sand flow back during early production. It is expected that these fracture treatment changes will significantly enhance flow from the Red Cave zone in future wells.
Commented Joel Dumaresq, CEO of Molori: "Over 18 months ago Molori commissioned and has now completed, what we believe to be the largest and most extensive evaluation of the shallow Red Cave formation ever undertaken. Dozens of well logs have been accumulated and analyzed resulting in a strong understanding of this "virgin" and previously poorly understood hydrocarbon bearing formation. Now, Molori has validated its thesis by drilling into the Red Cave and discovering oil on its existing acreage. With this data in hand, Molori is now moving to complete upon its next phase of land acquisition, capitalizing upon its proprietary knowledge of the Red Cave ribbon of oil."
The Company is now moving forward with its plan to drill the remaining wells in its series of 8 appraisal wells. The remaining well locations will be strategically focused upon sections of land situated within as little as 350 feet of Adam's Affiliates Red Cave development where Adam's Affiliates have succeeded in the past two years in drilling over 50 oil wells all of which have been discoveries and where typical IP rates have been greater than 40 boepd with standard EUR's ("Estimated Ultimate Recovery") of 40,000 boe.Read this and more news for Molori Energy at: http://www.marketnewsupdates.com/news/molof.html
Additional industry related developments from around the markets:
ConocoPhillips (NYSE: COP) earlier this week announced it has concluded its 2018 winter exploration and appraisal program in Alaska. The company's original plan was to drill five wells on the Western North Slope comprising two appraisal wells of the Willow Discovery announced in January 2017, plus three exploration wells. Due to improved drilling efficiencies, the company was able to drill a total of six wells, including an additional Willow appraisal well. All six wells plus a sidetrack encountered oil and verified the potential of the play. The three Willow appraisal wells support the previously announced estimate of a recoverable resource potential of at least 300 million barrels of oil. The three exploration wells represent new discoveries for the company and further extend the play concept across the Western North Slope.
Andeavor (NYSE: ANDV) came to a close up 1.44% with over 1.5 million shares traded by the market close on Tuesday. In the news: The Environmental Protection Agency has exempted one of the nation's largest oil refining companies, Andeavor, from complying with U.S. biofuels regulations - a waiver historically reserved for tiny operations in danger of going belly up, two sources familiar with the matter told Reuters. The exemption, which applies to the three smallest of Andeavor's ten refineries, marks the first evidence of the EPA freeing a highly profitable multi-billion dollar company from the costly mandates of the U.S. Renewable Fuel Standard. The law requires refiners to blend biofuels such as ethanol into gasoline or purchase credits from those who do such blending. The decision, which has not been previously reported, raises the question of whether other big and profitable oil firms with small refineries - such as Exxon Mobil Corp (XOM), Chevron Corp (CVX.N) and Phillips 66 (PSX.N) - also have or could receive the waivers, which are granted by the EPA in secret. Such waivers were designed for refineries producing less than 75,000 barrels per day that can demonstrate that they suffer a "disproportionate economic hardship" from the costs of RFS compliance.
Marathon Petroleum Corporation (NYSE: MPC) wholly owned subsidiary Speedway LLC recently announced the signing of an agreement for the purchase of 78 store locations held by Petr-All Petroleum Consulting Corporation. These stores are located primarily in the Syracuse, Rochester and Buffalo markets in New York and operate under the Express Mart brand. "This acquisition is a great strategic fit for Speedway, and consistent with our growth plan," said Speedway President Tony Kenney. "These stores will enhance our existing network and expand our brand presence in a key growth market for Speedway." Following the acquisition, stores will be rebranded to Speedway. The transaction is anticipated to close by the end of the third quarter of 2018, and is subject to standard regulatory approvals, customary due diligence, and other closing considerations.
Statoil ASA (NYSE: STO) News - Odfjell Drilling announced Monday that Statoil has awarded the company a conditional letter of intent for a drilling contract for the Deepsea Atlantic rig for six firm wells. The contract, which has an estimated duration of 18 months, is scheduled to commence in the first quarter of 2019 and is said to be worth $160 million. "The contract is another important milestone for Odfjell Drilling in maintaining a close relationship with one of our key clients on NCS [Norwegian Continental Shelf]," Simen Lieungh, CEO Odfjell Drilling, said in a company statement. "We have enjoyed great operational success in our partnership with Statoil on Johan Sverdrup and we are setting our sights even higher to improve on previous performance going forward by implementing new digital solutions to increase efficiency in operations," Lieungh added.
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