Page 8 - NorthAmOil Week 27 2022

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In its statement, Freehold noted that the Mid- sites were on track to see production average 210
land basin sites were on track to see produc- boepd in the fourth quarter of 2022, rising to 250
tion average 550 boepd in the fourth quarter of boepd in 2023, with liquids accounting for just
2022, rising to 750 boepd in 2023, with liquids over three quarters of output. These assets are
accounting for about 95% of output. These assets expected to generate some CAD5mn ($3.87mn)
are anticipated to generate some CAD23mn next year, it said. There is potential for future
($17.8mn) next year, it said. There is potential growth, it reported, as some 700 future drilling
for future growth, it reported, as approximately sites have already been identified across an area
650 future drilling sites have already been identi- of 41,000 acres (165.92 square km).
fied across an area of 51,000 acres (206.39 square The acquisition will increase Freehold’s
km). exposure to both the Eagle Ford and Midland
The company also said that the Eagle Ford basins. ™

PERFORMANCE
Chinese imports of US LNG sink by 95%

IN the months between February and April, secure a contract with China, Russia had to offer
Chinese imports of US-produced LNG plum- a bargain deal: China pays far less for Russian
meted by 95%, according to figures from Beijing. gas than Europe does”, he added in an analysis
At the same time, China has slowly ramped released in May.
up imports of Russian LNG. Just a year ago, however, the US was Chi-
Customs data released by the central govern- na’s leading supplier of spot LNG cargoes. And
ment indicate imports from China’s northern despite the current moves away from US LNG
neighbour have increased by at least 50% year and preference for Russian-produced gas, in the
on year. long term, China is still expected to honour pre-
This has raised more than a few eyebrows in agreed deals with US exporters beginning later
East Asia, where many are worried about Chi- this year and into next.
na’s long-term geopolitical ambitions regarding Indeed, a number of Chinese companies
Taiwan and other territorial claims in the South have recently struck new supply agreements
China Sea region. with US LNG producers.
Speaking recently at the Center for Strategic For now, though, in the year to date, US
and International Studies (CSIS), Nikos Tsafos, sources indicate that cargoes being sent to China
the James R. Schlesinger Chair in Energy and are very few and far between. The majority, in
Geopolitics at the Energy Security and Climate the wake of Russian aggression against Ukraine
Change Programme, highlighted some of the and subsequent sanctions, have instead been
dynamics at play. heading to mainland Europe.
“Russia could eventually build a sizable It is understood that European customers are
business geared toward Asian markets, but the willing to pay more for LNG spot cargoes than
shift (to this end) will be neither immediate their Asia-based counterparts; one reason Rus-
nor easy,” Tsafos said. “It will depend critically sia’s own move east to offload LNG of late will
on foreign partners, including China,” and “to start to sting financially the longer it continues.

The US has been exporting more LNG to Europe in recent months (File Photo)

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