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Updated on Monday, October 16, 2017
Energy East Pipeline and Eastern Mainline projects terminated — October 5, 2017
TransCanada Corporation announced that it will no longer proceed with the proposed Energy East pipeline and Eastern Mainline projects.
TransCanada President and Chief Executive Officer Russ Girling stated, "After careful review of changed circumstances, we will be informing the National Energy Board that we will no longer be proceeding with our Energy East and Eastern Mainline applications."
Girling went on to say, “We appreciate and are thankful for the support of labor, business and manufacturing organizations, industry, our customers, Irving Oil, various governments, and the approximately 200 municipalities who passed resolutions in favor of the projects. Most of all, we thank Canadians across the country who contributed towards the development of these initiatives.”
The TransCanada President concluded , “ We will continue to focus on our $24 billion near-term capital program which is expected to generate growth in earnings and cash flow to support an expected annual dividend growth rate at the upper end of an eight to 10 per cent range through 2020.”
Trades Unions hold federal and Quebec government responsible for Energy East pipeline termination — October 5, 2017
Canadian trades unions are holding the Trudeau Liberals and Quebec’s Couillard government responsible for the termination of the Energy East pipeline and eastern Mainline projects.
Robert Blakely, Canadian Operating Officer of Canada's Building Trades Unions, stated today in Ottawa that the Building Trades regrets the opportunities that have been lost in Atlantic Canada, Québec, Ontario and on the Prairies. He went on to say, “What have been lost are high quality, high paying jobs in all of those regions on the construction of this world-class, nation building project.”
Robert Blakely concluded, “It is clear that Canada needs and wants a regulatory system that is second to none and most of us thought that we had that. If we have a way to deal with our issues perhaps we need to stick to that. We do not need to have the rules of the game to be changed in midstream. That is neither fair nor appropriate; we ought not to ask a proponent to take a multi-billion-dollar gamble on a process that changes simply because a dog barked on Upper Teacup Road.”
Competition Bureau continuing to review Pembina / Veresen merger — October 3, 2017
According to Canada’s Competition Bureau, the announced merger between Pembina Pipeline Corporation and Veresen Incorporated is not yet final. The government body stated that it intends to review the merger on its merits.
The Competition Bureau stated that it will be focused on the parties' ethane transportation assets in Canada. The government agency has one year to review the merger. Should it find a substantial lessening or prevention of competition, the Bureau will take action where appropriate.
If the Bureau determines that a merger is likely to substantially affect competition, it may apply to the Competition Tribunal for an order to, among other things, sell certain assets to remedy the harm to competition.
Osum Oil Sands plans to quadruple bitumen production — October 2, 2017
A private oil sands producer, based in Calgary, has announced that it plans to increase its activity in northern Alberta and begin a new project.
Osum Oil Sands stated that it has raised enough capital to accelerate its bitumen production from the present 3,000 barrels per day to 12,000 barrels per day by 2019.
Osum stated that it has raised $500 million in investments and received $92.5 million from an undisclosed buyer of some of its properties..
In 2014, Osum began its operations by buying some oil sands assets from Royal Dutch Shell. It has successfully operated wells on these properties using steam to make the underground bitumen flowable.
A new assessment adds a significant increase to Alberta’s shale resources — September 27, 2017
National Energy Board and Alberta’s Geological Survey released their new resource assessment for the Duvernay Shale in central Alberta. Results show a significant increase in marketable light oil, condensate and natural gas reserves.
NEB estimates that the newly assessed region contains 3.4 billion barrels of light shale oil, 6.3 billion barrels of NLGs and 77 trillion cubic feet of marketable natural gas. This is equivalent to 25 years of Canada’s annual consumption.
The Duvernay Shale condensate will be a great addition to the development of Alberta’s oil sands. Bitumen requires large supplies of condensate as a mix for it to be flowable in pipelines. At present, condensate sells as a premium due to its high demand in the oil sands.
Peter Watson, Chair & CEO, National Energy Board, commented, "This new assessment further solidifies our understanding of the extensive and increasingly abundant natural gas and oil resources in Alberta. Studies like this one also demonstrate the collaboration between the NEB and other government agencies. And they enable all governments to be better informed when building policy around resource development and energy markets."
Abandoning Energy East Pipeline may prove to be very costly to Quebecers —September 11, 2017
The continuing delays and dithering by the National Energy Board, provincial and federal governments may spell doom to the Energy East pipeline. It appears that all are caving into opposing interest groups.
Last week, TransCanada Corporation announced that it has asked the NEB to 30 day suspension. This would allow the corporation time to conduct a careful review of recent changes announced by the NEB regarding the list of issues and environmental assessment factors which will be implemented by the federal government.
The latest reaction comes from the Montreal Economic Institute. It states that people of Quebec will be the big losers if the pipeline project is abandoned. The conducted study states that the province could lose $16 billion in investments. This is not counting savings in lower fuel and energy costs.
Germain Belzile, Senior Associate Researcher at the MEI, commented, " Pipelines are a very safe way of transporting oil over long distances and even in a scenario where absolutely no new pipelines are built, oil production in the country will increase significantly from now until 2040, as the NEB itself pointed out in a report published last year. The systematic opposition to the construction of pipelines will not reduce our production, nor our consumption, of oil in the coming years, as certain commentators imply."
Federal and Provincial government regulators once again stall an oil sands mining project —August 25, 2017
A proposed oil sands mining project is once again subject to a review. Teck Resources submitted an application to National Energy Board for a bitumen production project in November of 2011.
The federal Liberal government under Prime Minister Justin Trudeau and the socialist Alberta government of Premier Rachel Notley, have now agreed to scrutinize the project once again due to environmental reasons.
Federal Environment and Climate Change Minister, Jim Ellis stated that a Joint Review Panel would once again review the potential effects of the proposed project.
Teck Resources proposed, almost 6 years ago, to construct an oil sands mining operation in northern Alberta. The site was to be located 110 miles north of Fort McMurray.
The Frontier Oil Sands project was to be a truck and shovel operation, and be operated in similar manner to Suncor mining operations which have existed since the early 1960’s in northern Alberta.
Teck Resources stated in its initial submission that the mining project would have an initial capacity of 160,000 barrels per day of bitumen oil. In its second phase, production would increase to 260,000 barrels per day.
The project would employ 7000 workers while being developed and employ 2500 workers during initial phase of operation.
It was assumed by Teck Resources that the project would receive federal government approval this year and construction would soon follow.
Our most recent ‘Shouts & Toots’ from the Oil Patch — October 16, 2017
Frontera Energy Corporation (FEC:TSX) announced on October 16th that it has signed an agreement to acquire the outstanding 36.36% ownership of Pacific Midstream Limited from the International Finance Corporation. Frontera will own 100% of PML which will enable the company to pursue initiatives related to the reduction of, and unwinding of, various transportation commitments, including fixed rate take-or-pay arrangements.
Consideration for the acquisition will be $225 million in cash, paid in installments over a 36-month period, plus accrued interest over unpaid amounts.
The completion of the transaction is subject to obtaining modifications to Frontera's take-or-pay contracts, which are expected to reduce tariffs, and other customary conditions of closing. In addition, the consent of the company's noteholders and secured lenders is required to complete the transaction.
Gabriel de Alba, Chairman of Frontera, commented, "This is a very strategic acquisition for Frontera as we pursue a series of initiatives intended to reduce our corporate transportation costs, provide long term transportation flexibility, and reduce fixed cost transportation obligations."
Frontera is a Toronto based international company and a leading explorer and producer of crude oil and natural gas, with operations focused in Latin America. Company has a market cap of $1.9 billion and approximately 50 million shares outstanding.
Jadestone Energy Inc. (JSE:TSXV) announced on October 16th an operations update. Company reported that that the Stag Oilfield has now reached a milestone average production rate exceeding 3,600 bbl/d over the past ten-day period ending October 14, 2017. This is a 40% increase in production since the company overtook operatorship of the field 14 weeks ago, on July 10, 2017.
Chairman and Chief Executive Officer Paul Blakeley commented, “I am very proud of the Jadestone team, both offshore and onshore, in managing to bring Stag production up to this rate, even without the additional benefit of drilling new infill wells. Not only have we demonstrated the ability of our people to identify opportunities to better manage mature producing assets like Stag, including significant reductions in operating costs, but we have proven that achievements like this can be accomplished with the highest regard for Health, Safety, and the Environment. Earlier this month, the team was recognized for having achieved five years of operations without a Lost Time Incident.”
The Stag Oilfield produces crude oil from a shallow, low pressure reservoir, situated 60 kms north of the Australian coast. The field was initially developed in 1998, and achieved peak rates of 25,000 bbls/d, then entered a phase of steady decline, having produced just 2,570 bbls/d in the last reported quarter to June 30, 2017, or just prior to the company taking over operatorship on July 10, 2017. The company has implemented various topside process changes, and is managing the asset meticulously, on a well-by-well basis.
Jadestone Energy Inc. is an international oil and gas company headquartered in Singapore. Company is currently engaged in production, development and exploration and appraisal activities in Australia, Indonesia, Vietnam and the Philippines. Company has a market cap of $89.6 million and approximately 221 million shares outstanding.
Pulse Oil Corp. (PUL:TSX) announced on October 16th that Pulse has agreed to terms on two transactions to consolidate its interests in the Bigoray Assets. After the completion of the transactions, Pulse will hold a 100% working interest in the Nisku-D Pool and the Nisku-E Pool acreage previously owned by Pulse and two other parties. It is estimated that these two pools together held an estimated 26 million barrels of petroleum initially in place of which approximately 9.3 million boe (averaging 35% of estimated PIIP) has been recovered to date.
Pulse plans to execute a cost-effective miscible flood project to target the recovery of up to an additional 12 million barrels of estimated remaining recoverable reserves which would represent an 80% recovery factor, the average in nearly 50 offsetting Nisku Pinnacle Reef pools surrounding the Nisku D and E pools.
Pulse CEO, Garth Johnson commented, "The asset swap to consolidate the interests in the Nisku-D pool is a strategic transaction that opens up substantial upside for Pulse. We will swap our JV's interest in mature assets that have already undergone a miscible flood, recovering an estimated 87% of the PIIP. In return we will receive an interest in a similar pool that has yet to have undergone miscible flooding, and which has been estimated to have recovered just 35% of the PIIP to date. With this transaction and the acquisition of our partner's interest at Bigoray, we will have increased reserves and taken control of the Bigoray Assets.”
For further information, see company website http://www.pulseoilcorp.com .
Pulse is a Calgary based Canadian oil and gas company with assets and operations in western Canada. Company has a market cap of $4.8 million and approximately 47 million shares outstanding.
San Angelo Oil Limited (SAO.H:TSX) announced on October 16th that Cabral Gold Ltd. has closed the first tranche of their private placement financing previously announced on May 11, 2017. The Offering is being conducted in connection with the business combination between San Angelo and Cabral. San Angelo is also pleased to provide an update regarding the Business Combination.
The funds will be held in escrow pending closing of the Business Combination. San Angelo has now received conditional approval of the Business Combination from the TSX Venture Exchange. San Angelo and Cabral have agreed that the deadline for completion of the Business Combination, including the offering sufficient to satisfy the conditions precedent, will be October 31, 2017.
San Angelo Oil Ltd is a Vancouver based exploration company. Company is engaged in the identification, exploration and development of reserves via drilling or acquisition with a focus on central Texas. San Angelo has a market cap of $0.7 million and approximately 5.6 million shares outstanding.
Surge Energy Inc. (SGY:TSX) announced on October 16th a cash dividend to be paid on November 15, 2017 in respect of October 2017 production, for the shareholders of record on October 31, 2017 will be $0.007917 per share. The dividend is an eligible dividend for the purposes of the Income Tax Act (Canada).
Surge Energy Inc. is a Calgary based oil-weighted production and development company with high quality, large oil in place, crude oil reservoirs in western Canada. Company has a market cap of $485 million and approximately 233 million shares outstanding.
Superior Plus Corp. (SPB:TSX) announced on October 16th that its indirect wholly-owned subsidiary, Superior Plus LP (Superior LP), has closed on its previously announced private placement of CDN $150 million principal amount of 5.25% Senior Unsecured Notes (due February 27, 2024. Superior LP intends to use the net proceeds of the offering to fund the redemption of Superior's issued and outstanding 6.00% convertible unsecured subordinated debentures due June 30, 2019.
For further information about Superior, visit its website at: www.superiorplus.com.
Superior Plus Corp. is a Toronto based company. Superior consists of two primary operating businesses: Energy Distribution includes the distribution of propane and distillates, and supply portfolio management; and Specialty Chemicals includes the manufacture and sale of specialty chemicals. Company has a market cap of $1.8 billion and approximately 143 million shares outstanding.
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There are about 3,000 ‘petroleum products’ or products made from crude oil including motor gasoline, diesel, aviation fuel, agricultural fertilizers, ink, synthetic fabrics, plastics, imitation wood, crayons, bubble gum, dishwashing liquids, deodorant, eyeglasses, tires, ammonia, and even heart valves.
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October 16, 2017
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