Page 11 - NorthAmOil Week 29

NorthAmOil
NEWS IN BRIEF
NorthAmOil
UPSTREAM
Ring Energy announces
amended 2019 capital
expenditure budget of
approximately $152mn
Ring Energy announced today an amended capital expenditure budget for 2019 of approximately $152mn.
e amended capex results in a reduction of approximately $2mn from the preliminary budget of $154mn announced on April 29, 2019.
e decrease is the result of a reduction
in new horizontal wells to be drilled in 2019 from 50 to 32 and the reallocation of those funds to the upgrading/reworking of a large number of existing wells and necessary improvements to current infrastructure which will improve operational e ciencies.
e company drilled 20 new horizontal wells and four new saltwater disposal wells in the rst six months of 2019. e company employed one drilling rig in the rst
quarter of 2019, added a second rig with the completion of the Northwest Shelf Property acquisition in early April, retained two rigs through the remainder of the second quarter, and currently has gone back to one drilling rig.
e additional 12 new horizontal wells will all be one-mile horizontals, and all will be drilled on the company’s newly acquired Northwest Shelf property.
e result for 2019 will be 18 (16 1-mile horizontals/two 11⁄2-mile horizontals) new horizontal San Andres wells on the Northwest Shelf property, 13 (10 1-mile horizontals/three 11⁄2-mile horizontals) new horizontal San Andres wells on the Central Basin Platform Property and one new 1-mile horizontal
Brushy Canyon well on the Delaware Basin property.
RING ENERGY, July 22, 2019
DOWNSTREAM
FERC approves MIDSTREAM commissioningatFreeport
Medallion Pipeline launches binding open season
Medallion Pipeline today announced a binding open season to solicit binding, long- term commitments for rm transportation utilising capacity that Medallion has leased
on the crude oil pipeline owned by EPIC Crude Pipeline, LP (EPIC Pipeline). e EPIC Pipeline, which is currently being constructed, will provide potential shippers with access to multiple destination points including re nery and crude oil export markets through the
Port of Corpus Christi. Prospective shippers will have the opportunity to participate in the open season to acquire rm transportation capacity by making a minimum volume commitment of 10,000 barrels per day to Medallion pursuant to a volume commitment transportation agreement.
e existing Medallion pipeline is a network of approximately 800 miles of six-inch and larger crude oil pipeline in the Midland Basin.
e Medallion system consists of eight pipeline segments providing diversi ed market access to seven downstream pipelines, which interconnect with the Medallion system at three major market hubs at the Crane Hub, Midland Hub, Colorado City Hub as well as the Alon USA Big Spring re nery. At the Crane Hub, the Medallion Pipeline will interconnect with the EPIC Pipeline. Service utilising the leased capacity is expected to commence during the rst quarter of 2020.
MEDALLION PIPELINE, July 19, 2019
LNG
I grant your July 16, 2019 request for Freeport LNG Development, FLNG Liquefaction, FLNG Liquefaction 2 and FLNG Liquefaction 3’s (collectively referred to as Freeport
LNG) to introduce hazardous uids for the commissioning of Train 1 and associated utility systems (Units 11, 17, and 18) at the liquefaction facility as described in your lings. Your request is consistent with Environmental Conditions 11 and 67-74 of the Commission’s July 30, 2014 order granting authorisations under Section 3 of the Natural Gas Act in the above referenced dockets. is approval is based on FERC sta inspections, review of the information led on August 9, 2018, and April 16, June 10, and July 16, 2019, and subsequent correspondence.
In order to demonstrate the progress in testing needed to show that the facilities
can safely and reliably operate at or near
the design production rate speci ed in the commission order, Freeport LNG shall le weekly reports on the ongoing commissioning activities once LNG is produced from
Train 1 until the commission authorises commencement of service.
is authorisation does not grant approval for commencement of service of Train 1. In accordance with Condition 12 of the Order in the above referenced dockets, Freeport LNG must receive written authorization before placing the Train 1 facilities into service. FERC, July 19, 2019
Cameron LNG requests start up permission
On June 19, 2014, the Federal Energy Regulatory Commission (FERC) issued
its Order Granting Authorization under Section 3 of the Natural Gas Act and Issuing Certi cates, in the above-referenced docket. e Order authorises Cameron LNG to construct and operate its Liquefaction Project subject to the conditions listed in Appendix A of the Order. In today’s submittal, Cameron LNG is requesting authorization to place Train 1 and related facilities in-service in accordance with Condition No.12 of the Order.
Cameron LNG has successfully completed commissioning of Train 1, the OSBL facilities, and the associated regas facility equipment
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