Page 11 - NorthAmOil Week 28

NorthAmOil PROJECTS & COMPANIES NorthAmOil
California orders Chevron to tackle oil spill
CALIFORNIA
CALIFORNIA’S Department of Conservation has ordered Chevron to immediately “take all measures” necessary to stop a spill of an oil-water mixture in the Cymric oil eld in Kern County Canyon. About 800,000 gallons (3mn litres, or 18,000 barrels) of the mixture have been spilled at Chevron’s site in the eld over the past two months, where the super-major injects steam to produce oil. Crude is estimated to comprise around 30% of what has been spilled.
But a spokesman for California’s Division of Oil, Gas and Geothermal Resources (DOGGR), Don Drysdale, told CNN that state o cials had a slightly di erent preliminary estimate of the oil spill. e agency is working with Chevron to collect data and more accurately determine the amount spilled, he said.
California has said Chevron allowed “surface expressions” of oil to occur on May 10, June 8 and June 23. e company has been ordered to stop steam injection in the area where the spill took place. Chevron rst became aware of the
leak on May 10, and said it had immediately noti ed regulators.
On July 14, Chevron said no new uid had come to the surface since July 9, and that 90% of the released material had been recovered. e company added that the spill was not near any waterway and had not signi cantly a ected wildlife.
e order for Chevron to address the spill came a day after California Governor Gavin Newsom fired DOGGR director Ken Harris. e move was attributed to a recent increase in hydraulic fracturing permits, which has hap- pened amid a con ict of interest investigation of other division employees.
Chevron has said it will review the order and will work with the relevant agencies to address the spill.
The incident could exacerbate tensions between California’s strong environmental move- ment and the oil industry, which remains a major player in both the state and Kern County.™
UPSTREAM
Mach Resources announces first acquisitions within its new partnership with Bayou City Energy, BCE-Mach II
As previously announced, Mach Resources and Bayou City Energy Management formed BCE-Mach II to pursue low-risk, high cash owing oil and gas properties with drilling inventory in the Western Anadarko Basin spanning across Western Oklahoma and the Texas Panhandle. BCE-Mach II is the second collaboration between Mach and BCE. e rst partnership, BCE-Mach, continues to own, operate and acquire properties in the Mississippi Lime.
Today, BCE-Mach II announces it has signed a Purchase and Sale Agreement to purchase producing properties in Beckham, Custer, Dewey, Roger Mills and Washita Counties, Oklahoma and Hemphill and Roberts Counties, Texas from an undisclosed seller. Closing on this rst acquisition is
NEWS IN BRIEF
subject to customary conditions and is expected to occur in September 2019.
Additionally, in a separate transaction with a di erent undisclosed seller, BCE-Mach II announces it has signed a second Purchase and Sale Agreement to acquire producing properties across 32 counties in Oklahoma and seven counties in Texas. Closing on this second acquisition is subject to customary conditions and is expected to occur in September 2019.
MACH RESOURCES, July 15, 2019
Ring Energy releases
second-quarter 2019
operations update
Ring Energy today released its operations update for the second quarter of 2019. In
the three months ended June 30, 2019, the Company drilled thirteen new horizontal San Andres wells. On its Central Basin Platform (CBP) asset, Ring drilled seven new horizontal San Andres wells, ve 1-mile horizontal
wells and two 11⁄2-mile horizontal wells. On its newly acquired Northwest Shelf property
(NWS), Ring drilled six new horizontal San Andres wells, four 1-mile horizontal wells, two 11⁄2 mile horizontal wells, and were in
the process of drilling two more at the end
of the quarter. Of the thirteen wells drilled, four were waiting on completion (2 CBP / 2 NWS), seven were drilled, completed and are in varying stages of testing (5 CBP / 2 NWS), and two were drilled (NWS), completed, nished testing and had Initial Potentials (“IPs”) led. e Bruce E Gentry JR 647 A 2H had an IP of 359 barrel of oil equivalents per day, or 88 boe per 1,000 feet, and the Sooner 662A2HhadanIPof767boeperday,or181 boe per 1,000 feet.
Mr Danny Wilson, Ring’s executive
Vice president and chief operating o cer, commented: “We drilled thirteen wells in
the second quarter, seven on our Central Basin property and six on our newly acquired Northwest Shelf property. Only two of the wells drilled in the second quarter were IP’d, the remaining eleven are in varying stages
of completion and testing. We expected it to take time to replenish the inventory of new wells as there had been no drilling activity on the NWS property since last October. Upon completing the acquisition of the NWS assets
Week 28 18•July•2019
w w w . N E W S B A S E . c o m
P11