PXP Completes Divestment of Its Gulf of Mexico Shallow Water Shelf Properties

Plains Exploration & Production Company announces it has completed the divestment of its Gulf of Mexico shallow water shelf properties to McMoRan Exploration Co. The transaction was approved by McMoRan shareholders at a special meeting of the stockholders held today. At closing and after preliminary closing adjustments, PXP received approximately $86 million in cash, which includes $11 million in working capital adjustments, and 51 million shares of McMoRan common stock in exchange for all of PXP's interests in its Gulf of Mexico leasehold located in less than 500 feet of water.
PXP has designated James C. Flores, PXP's Chairman of the Board, President and Chief Executive Officer, and John F. Wombwell, Executive Vice President, General Counsel and Secretary of PXP, to McMoRan's Board of Directors.
James C. Flores, Chairman of the Board, President and Chief Executive Officer of PXP commented, "The Gulf of Mexico shallow water ultra-deep exploration program has been and continues to be a successful value creation strategy, and we look forward to our future participation as a significant McMoRan shareholder. The unique operator/ownership structure approved today maximizes value for both PXP and McMoRan shareholders from the ultra-deep program's current discoveries and exploration potential, and through PXP's ownership position, PXP shareholders maintain growth exposure to this dynamic and emerging play without substantial capital requirements."
Barclays Capital and Jefferies & Company acted as advisors to PXP on the transaction.
PXP is an independent oil and gas company primarily engaged in the activities of acquiring, developing, exploring and producing oil and gas in California, Texas, Louisiana and the Gulf of Mexico. PXP is headquartered in Houston, Texas.
Source: Press release

Posted on 12/31/2010 / 0 comments / Read More

Petrobras Announces Record Oil Production In Brazil

Petrobras informs that in December it achieved three new records in Brazil: the monthly, annual and daily oil production averages. The monthly average for December will be approximately 2,120 thousand barrels a day, against the previous record of April of this year of 2,033 thousand barrels. The volume produced in the month is 4.4% higher than the production achieved in November of this year (2,030 thousand bpd).
In addition to the monthly record, the Company recorded yet another daily record. On December 27th, oil production reached 2,256 thousand barrels. With these results, the Company closes 2010 with a level of production higher than 2 million barrels a day (2,003 thousand bpd), which also represents a new annual record.
This performance was mainly due to five new wells coming into production in the Campos Basin during the month: CHT-9 and BFR-3, in the Cachalote and Baleia Franca fields, both interconnected to FPSO Capixaba; wells JUB-9 and JUB-14, which produce connected to the newly installed P-57 platform, in the Jubarte field; and CRT-43, which was given the working name Carimbé and is a producer well nestled in the pre-salt layer of the Caratinga field, which is connected to platform P-48. 
With the aggregate contribution of these five wells, it was possible to add more than 100,000 barrels per day to Petrobras' production in Brazil. Furthermore, it is important to highlight the high level of operational efficiency achieved in the month by the Stationary Production Units (SPU) of all operating units. 
 The good performance of fields located in mature areas in Northern and Northeastern Brazil and in the state of Espírito Santo also contributed to the results. These fields, where production had been declining in recent years, managed to maintain an average production of around 213,000 barrels of oil per day in 2010 thanks to the revitalization effort undertaken by Petrobras.  
Another highlight was production being kicked-off at well SPS-55, which initiated the Extended Well Test in the Guará area, in the Santos Basin pre-salt layer.
Source: Press release

Posted on 12/31/2010 / 0 comments / Read More

California Gasoline Use Rose 0.8% in Third Quarter

Gasoline consumption in California rose 0.8 percent during the third quarter, with use of the motor fuel increasing 1.5 percent in September from a year earlier, the State Board of Equalization said in a report today.
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Source: Bloomberg

Posted on 12/31/2010 / 0 comments / Read More