NEW YORK, May 16, 2018 /PRNewswire/ --
Oil prices increased this week on positive trajectories of tighter global oil market. OPEC has boosted its new forecasts for oil demand this year, while simultaneously cutting down its outlook of global production. CNBC reported Brent crude, the international benchmark for oil prices, ended Monday's session at $78.23 barrel, the highest closing level since 2014. On Tuesday, the contract took aim at $80 a barrel, striking a new three-and-a-half-year intraday high at $79.47. OPEC has pointed out that emerging economies seem to have fared better and a global growth recovery in the remainder of 2018 is seen as likely, supported by large US fiscal stimulus measures that will continue to materialize in the second quarter of the year. In addition, ongoing positive developments in global trade, and ongoing relatively accommodative monetary policy by the G4 central banks. International Frontier Resources Corp. (OTC: IFRTF), VAALCO Energy, Inc. (NYSE: EGY), Gran Tierra Energy Inc. (NYSE: GTE), EP Energy Corporation (NYSE: EPE), Sanchez Energy Corporation (NYSE: SN)
In OPEC recent report, published May 14th, the organization explains that, "In conclusion, global growth momentum seems to be well established in the short-term, and the most recent weakness, seen mainly in some OECD economies, may only be temporary. Major emerging economies' growth dynamics have thus far counterbalanced this soft spot, and global growth may recover in the remainder of the year due to US fiscal stimulus and a rebound in OECD growth. However, after a period of a considerable growth, uncertainties seem to be on the rise."
International Frontier Resources Corp. (OTCQB: IFRTF) is also listed on the TSX Venture Exchange under the ticker (TSX-V: IFR). Earlier this morning the company announced breaking news that, "in partnership with Mexican petrochemical leader Grupo IDESA, is pleased to announce production test results of its workover of the previously drilled TEC-2 well.
- On May 8th, Tonalli commenced a production test of the TEC-2 well producing from existing perforations.
- The well was tested for a total of seven days and recovered an average of 125 barrels of oil per day ("bopd").
- Last recorded production rate in January 2016 from TEC-2 was 9 bopd and 9 thousand cubic feet ("mcf") of natural gas per day.
- Over the final day of the test, the TEC-2 well averaged an estimated 105 bopd and 288 mcf of gas producing 514 bbls/d of fluid.
- Throughout the test, TEC-2 flowed naturally on a restricted 20/64 inch well head choke with a final wellhead flowing pressure of 660 psig. The ratios of crude oil, water, and natural gas remained consistent throughout the multi-day test.
"Rates from the TEC-2 well exceeded our expectations based on the age of the well and historical production records provided by the previous operator," stated Steve Hanson, President and CEO of International Frontier Resources and Director of Tonalli Energia. "The results of the test have indicated that the El Abra reservoir in the Tecolutla Field is capable of delivering high volumes of fluid."
TEC-2 is an existing well that produced for sixty years from 1956 until January 2016 without the use of artificial lift and was shut-in by the previous operator. TEC-2 is located approximately 800 meters north of the recently drilled TEC-10 well. Tonalli is also pleased to announce that completion operations on the newly drilled TEC-10 well (see press release dated May 7th, 2018) have commenced. Production testing of the TEC-10 well will be performed over the next few weeks as part of completion operations. Results of this test will be announced when further information becomes available.
Through its joint venture, IFR was one of the first foreign companies to participate in Mexico's historic reform of the oil and gas sector. The Tecolutla block was awarded to Tonalli on May 12, 2016 as part of the first round and third call of Mexico's oil and natural gas "mature fields" bid round ("Round 1.3"), the first in almost 80 years."
VAALCO Energy, Inc. (NYSE: EGY) is a Houston, Texas based independent energy company principally engaged in the acquisition, exploration, development and production of crude oil. VAALCO's strategy is to increase reserves and production through the development and exploitation of international oil and natural gas properties. The Company's properties and exploration acreage are located primarily in Gabon and Equatorial Guinea in West Africa. Recently, the company announced that reported operational and financial results for the first quarter 2018. For the first quarter of 2018, VAALCO reported income from continuing operations of $8.7 million, or $0.15 per diluted share. The average realized price for crude oil in the first quarter of 2018 was $68.69 per barrel, an increase of 32% from $51.99 per barrel in the first quarter of 2017. In the fourth quarter of 2017, the average realized price for crude oil was $59.89 per barrel.
Gran Tierra Energy Inc. (NYSE: GTE) is an independent international energy company focused on oil and natural gas exploration and production in Colombia. Earlier this month, the company provide an operations update. Gran Tierra's production averaged a record high of 35,075 barrels ("bbl") of oil equivalent per day ("BOEPD") during first quarter 2018, which was 23% higher compared with 28,481 BOEPD in first quarter of 2017 and 2% higher compared with 34,477 BOEPD in fourth quarter of 2017. The Company's first quarter 2018 production was also up 55% from second quarter 2015 when the strategy to refocus Gran Tierra on Colombia began, an annual growth rate of 17%. Since acquiring the Acordionero field in the Middle Magdalena Valley Basin in August 2016, Gran Tierra has increased its production by 266% to a record high average rate during March 2018 of 17,302 barrels of oil per day. Gran Tierra's production averaged a record high of 35,075 BOEPD during first quarter 2018, which was 23% higher compared with 28,481 BOEPD in the first quarter of 2017 and 2% higher compared with 34,477 BOEPD in fourth quarter of 2017. Gran Tierra has now grown production for four consecutive quarters.
EP Energy Corporation (NYSE: EPE) focuses on enhancing the value of its high quality asset portfolio, increasing capital efficiency, maintaining financial flexibility, and pursuing accretive acquisitions and divestitures. Recently, the company reported first quarter 2018 financial and operational results. In the first full quarter under new leadership, the company improved results by increasing production and profitability while significantly reducing costs. First quarter 2018 total equivalent production and oil production volumes were above the high end of the company's guidance ranges, while capital expenditures were below the low end of the guidance range. The improvement was a result of better well performance driven by new completion techniques and lower capital and operating costs. The company produced 35.9 MBoe/d, including 24.0 MBbls/d of oil in the first quarter of 2018, a 17 and 24 percent increase from the fourth quarter of 2017, respectively. The increase from year-end 2017 was driven by increased activity, improved production results from new well designs and completion techniques, and acquisition properties.
Sanchez Energy Corporation (NYSE:SN) is an independent exploration and production company focused on the acquisition and development of U.S. onshore unconventional oil and natural gas resources, with a current focus on the Eagle Ford Shale in South Texas where we have assembled approximately 285,000 net acres. On May 8, 2018, the company announced financial and operating results for the first quarter 2018. Production was nearly 7.3 million barrels of oil equivalent, or 80,572 barrels of oil equivalent per day. Revenues was approximately $251 million, an 88 percent increase compared to the first quarter 2017. The Company's first quarter 2018 production came in below corporate guidance due to a weather-related disruption, a temporary third-party bottleneck in natural gas takeaway capacity, and a variety of operational issues associated with completions tests conducted with the goal of optimizing the development of the Comanche asset.
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