Page 10 - NorthAmOil Week 01 2023

NorthAmOil PROJECTS & COMPANIES NorthAmOil

Extreme weather closes Suncor

refinery in Colorado until March

COLORADO EXTREMELY cold weather in the US has taken equipment [are] ongoing. Based on our current
Suncor Energy’s refinery offline in Commerce assessment, we anticipate a progressive restart
City, Colorado. of the facility, with a return to full operations
Suncor said that the refinery may not start full expected to be completed by late Q1 2023,” it
operation again until late in the first quarter of added.
2023. It was formally taken offline on December Not mentioned in the press release were
24 after the cold triggered a shut-down in the two fires. The Denver Post cited the cause as a
preceding days. “vapour release”.
There has been extensive damage at the facil- On December 21, the shutdown of the
ity, according to reports. refinery started when freezing weather caused
The plant is the state’s only refinery, and Suncor’s hydrogen plant to trip, creating a cas-
usually processes 98,000 barrels per day (bpd) cading effect throughout the refinery, said the
of oil. newspaper.
“Due to the extreme and record-setting That day, the temperature dropped by 20.6
weather impacting much of the United States, degrees Celsius (37 degrees Fahrenheit) in one
including Denver, Colorado, Suncor’s Com- hour at Denver International Airport – from 5.6
merce City refinery experienced equipment C (42F) to -15 C (5F).
damage in the days leading up to December 24, The refinery represents around 21% of Sun-
2022,” said the company. cor’s refining capacity. According to a note by
“Consistent with our operational excellence Bank of Nova Scotia analyst, Jason Bouvier, the
and safe operating practice, on December 24 it outage will likely have about a 2% impact on
was determined that the entire facility would be 2023 cash flow for Suncor, a “modest negative”.
shut down and put into safe mode to allow for the The repairs are expected to cost less than
inspection of all units and repair of the damaged $20mn, said Bouvier, who added that Suncor was
equipment,” it continued. exploring whether its lost profits can be recov-
“The inspection and repair of the damaged ered via business interruption insurance.™

NEWS IN BRIEF

UPSTREAM including a $15mn promissory note. The SERVICES
sellers are also to receive 2,000,000 common
HNRC-sponsored SPAC HNRA shares, and 500,000 shares are to be ProChem Energy Services,
placed in escrow for HNRA’s benefit. Aside
files for $120mn business from these shares, HNRA is to receive a 100% a Creedence company,
interest in Pogo Resources on the first day of
combination the calendar month that is four months prior updates legal name and
to the deal’s close.
Houston Natural Resources Corp. (HNRC) In October, HNRA entered into a common unifies national branding
has previously announced that its subsidiary stock purchase agreement with White Lion
Houston Natural Resources, Inc, through Capital, under which White Lion Capital under Creedence Energy
its majority owned HNRAC Sponsors, could be directed to purchase up to $150mn
sponsored a Special Purpose Acquisition in newly issued shares of the combined Services
Corp. (SPAC), HNR Acquisition (HNRA). company between close and December 31,
HNRA has entered into a membership 2025. Creedence Energy Services, a portfolio
purchase agreement with Pogo Resources and The 15 oil and gas companies that have company of Tower Arch Capital, joined forces
two affiliates for a purchase price of $120mn completed SPAC deals dating back to 2011 are with ProChem Energy Services in early 2021
dollars. Dallas-based Pogo acquires, develops, also trading at a median share price of $7.70 to create a leading, independent production
and exploits oil and gas assets in Texas’ with four of these last closing above $22. chemical company. The partnership with
Permian Basin. HOUSTON NATURAL RESOURCES CORP., John Turner, John Eric Turner, and the entire
HNRA has an estimated $86mn in its January 05, 2023 ProChem team has helped the combined
current trust and the transaction is expected company service tens of thousands of oil
to provide $100mn in cash proceeds to Pogo, and gas wells across leading basins in North

P10 www. NEWSBASE .com Week 01 05•January•2023