<a href="http://youngpetro.org/2013/03/06/how-is-it-possible-to-produce-oil-from-sand/"><b>How is it possible to produce oil from sand?</b></a> <a href="http://youngpetro.org/2011/10/09/people-engineers-and-spe-members/"><b>People, Engineers and SPE Members</b></a> <a href="http://youngpetro.org/2012/12/19/if-i-were-a-prime-minister/"><b>If I Were a Prime Minister…</b></a> <a href="http://youngpetro.org/2012/12/26/polish-shales-delayed/"><b>Polish shales delayed?</b></a> <a href="http://youngpetro.org/2013/01/11/russia-continues-the-policy-of-states-companies-monopoly/"><b>Russia continues the policy of state companies’ monopoly</b></a>

Ophir sells 20% interest in offshore blocks,Tanzania to Pavilion Energy.

Ophir sells 20% interest in offshore blocks,Tanzania to Pavilion Energy.

Ophir Energy announced on Monday that the transaction reported on 14 November 2013 to sell a 20% interest in Blocks 1, 3 and 4, Tanzania to Pavilion Energy has now completed.

The company has received cash of US$1,255million reflecting the purchase price consideration of US$1,250million plus a completion adjustment of US$5million to reflect interest and working capital movements since the effective date of the transaction of 1 January 2014. A further US$38 million is payable following the final investment decision of the development of Blocks 1, 3 and 4, expected in 2016.

A tax liability will be incurred on the transaction in Tanzania. The timing of the payment will be finalised after discussion with the relevant tax authorities. Net proceeds after tax from the transaction are expected to be ca. US$1.0bn based on Management estimates. This estimate will be subject to finalisation of the 2013 and 2014 corporate tax returns which impact the basis of the calculation with respect to allowable losses arising from brought forward and current year expenditure.

The proceeds from this transaction will support our forward plans which includes investing in a number of new opportunities that are under consideration and have transformational growth potential. This is in addition to having the flexibility to rapidly capitalise on any exploration success from the forward drilling programme which is well funded from our existing cash resources.

Management remain committed to maximising and delivering returns to shareholders and the Board continues to monitor closely the capital needs of the business and the appropriate level of cash liquidity.

Nick Cooper, CEO, commented:

“We are delighted to welcome Pavilion Energy into the Tanzanian LNG development across Blocks 1, 3 and 4. The partial monetisation of our interests is in keeping with Ophir’s strategy of minimising exposure to development capex and realising the value created from exploration success at the appropriate time”

Photos: Ophir Energy

Read more: ophir-energy.com

YoungPetro is organizing Europe-wide FrackNation screenings

YoungPetro is organizing Europe-wide FrackNation screenings

Fracking – this topic seems to be a never ending story since the few past years. Mainstream media feed us with lots of news connected to hydraulic fracturing. With that talk there is little understanding of the process and even less attention paid to reality of people whose lives are directly affected by natural gas exploration. That creates field for many pros and cons arguments. One of big NO for fracking in 2010 was Gasland, American documentary written and directed by Josh Fox. It has created an antifracking movement in the US and also in Europe.

FrackNation, a documentary created by Irish-Polish trio and funded through Kickstarter is the answer for every accusations and manipulation of facts shown in Gasland.

Goal of FrackNation directors was to make an honest research on fracking in full context: economic, personal, scientific, political and historical.  In FrackNation an investigative journalist Phelim McAleer travels across the USA and Europe to uncover the science suppressed by environmental activists and ignored by much of the media. He talks with scientists and ordinary Americans who live in fracking areas and who tell him the truth behind the exaggerations and misrepresentations of anti-fracking activists.

What is most important FrackNation explicitly rejected and rejects funding from oil and gas companies or senior executives of such companies. This is completely independent movie.

Together with the Kosciuszko Institute and Claeys & Casteels Pubilshing, YoungPetro is the co-organizer of two big events:

BRUSSELS, 10.02.2014 – Premiere of FrackNation in the European Parliament

WARSAW, 13.02.2014 – Premiere of FrackNation in Kino Muranów


 FB fanpage – FrackNation

FrackNation official website


Why Canada ???

17 September, 2013 News 2 comments
Why Canada ???

A North American country, located in the Northern part of the continent, Canada attracts with its landscape and outstanding nature.  Views are great and beautiful, but potential of this country is even greater.  Recently three Polish companies connected with mining industry showed its interest in this region.

What convince them to aim in such faraway place?  

First signal came from KGHM which made a friendly acquisition of Quadra FNX. The value of the transaction amounted to CAD 2 900 000.00 (i.e. 3 343 720.00 $) Now renamed to KGHM International has become a leading producer of copper and silver. KGHM International Group has a diversified portfolio of assets in low risk countries and a portfolio of projects ensuring the development of the current production base, including 9 mines in: Poland, Canada, the USA, Chile, and 5 projects in the investment stage.

Next step was made by one of the richest people in Poland – Jan Kulczyk. His company Kulczyk Oil Ventures(KOV) bought Winstar Resources also connected with hydrocarbons industry. After acquisition it changed name into SERINUS ENERGY.  For KOV this transaction meant 50% production increase, triple increase of reserves and  13 concession in 5 countries.

Latest news comes from PKN ORLEN S.A., through its subsidiary ORLEN Upstream Sp. z o.o. it made an agreement with TriOil Resources Ltd.,  a Canadian company listed on the TSX Venture Exchange, which will initiate the acquisition of TriOil. PKN ORLEN has agreed with TriOil to acquire 100% of the shares of the company for CAD 2.85 per share, representing total cash consideration of approximately CAD 183 700 000 (i.e. 178 042 000 $) The offer has been accepted by the Board of Directors of TriOil, and will be considered by the shareholders of TriOil at the meeting of shareholders in November 2013.

In our view, TriOil is an optimal acquisition target. If the transaction is successfully completed, we will gain access to producing fields and will diversify our asset portfolio geographically. It also  offers an opportunity for the transfer of know-how from the mature and technologically advanced Canadian market,” Jacek Krawiec, PKN ORLEN’s CEO, said.

The past few years have been a period of intense growth for TriOil. In 2012, its hydrocarbon production increased by 65% year over year. In the first two quarters of 2013, its average daily production doubled over the corresponding period of 2012, reaching approximately 4,000 barrels of oil equivalent. Over the past few years TriOil has taken steps to expand the areas in which it has working interests, with TriOil’s principal operations now spanning some 3 500 square kilometers, including 1 100 square kilometers of hydrocarbon formations from which it produces both oil and natural gas.

This deal is the latest for a Polish company to buy Canadian assets, but obviously it is not the last one.

9,984,670 km sq (3,854,085 sq mi) of land and inland water bodies gives Canada the second place in the world by total area list. According to these  numbers we can imagine how many natural resources this land owns. Canada also dispose one of the biggest variety of minerals on earth (second place, after Russia). What attracts foreigners is not only about hydrocarbons and minerals, but also very rare elements.

What is more, comparing to other natural resources rich regions like Africa or Middle East, Canada  is very stable and safe place to invest. Low risk investments of course requires higher taxes and payments for government, but clear law and many years old steady economy is worth it for sure. Best example is current situation in Syria, investments there are frozen (or worse) because of civil war. Another advantage of buying an existing company is massive certainty that we will actually have a successful mine or well.

In conclusion it is important to mention the great potential of Canadian energy, mining, and exploration industry. In the mean time similar news are forecasted .








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Seadrill orders four new ultra-deepwater drillships for delivery in 2015

Seadrill orders four new ultra-deepwater drillships for delivery in 2015

Seadrill Limited  has entered into  contracts to build four new ultra-deepwater drillships. Two of them will be built at the Daewoo Shipbuilding & Marine Engineering yard and the other two at the Samsung yard, in South Korea. The project value price is estimated to be below US$600 million per unit.  Delivery of the 4 units is scheduled for the second half 2015.  Seadrill has in addition received fixed priced options for delivery of two further units for delivery in the first half 2016.

The drillships will have a hook load capability of 1,250 tons and a water depth capacity of up to 12,000 feet targeting operations in areas such as the Gulf of Mexico, Brazil and West and East Africa.

Ultra deepwater production is estimated to increase from around 1 million barrels per day today to 5 million barrels per day over the next 6 years. In order to reach this target significant new development drilling capacity will have to be added. At the same time, the industry faces a situation where approximately 49% of the current floater fleet is older than 20 years.

John Fredriksen, Chairman of Seadrill Limited, says: “We have been able to use the current weakness in the shipbuilding industry to order drilling units at very attractive price levels. At the same time we are securing future growth by continuing to build a homogenous fleet with all the operational benefits which come from fleet standardization.

Read more: Seadrill Ltd.

Lundin Petroleum look for profit from Johan Sverdrup field

Lundin Petroleum look for profit from Johan Sverdrup field

Lukas Lundin, investment manager for his billionaire Swedish family, said the oil stock bearing their name should double in value in next 10 years after its biggest North Sea discovery.

Lundin Petroleum, which is Sweden’s largest oil company has become the most expensive European explorer,  since it began trading in 2001, with value of $6.8 billion it may rise up to $16 billion now. Lundin family owns  about 30 percent of Stockholm-based Lundin Petroleum.

The company jumped in trading after discovering the Avaldsnes prospect in 2010 and Aldous in 2011, which were later renamed Johan Sverdrup. It holds about 3.6 billion barrels of oil under the seabed and it’s Norway’s largest field in almost four decades.

“I am extremely optimistic about Lundin Petroleum, short-term as well as longer-term,”  – said Lukas Lundin last week. The company has “proven that they have capability to deliver world-class exploration successes. It is hard not to be bullish.”

Optimistic plans can be stopped by pressure of Norway’s government, it plans to change oil and gas taxation this year.

The Lundin family have been involved in oil exploration and production for over thirty years. The family’s fortune has shifted into oil from mining, with Lundin Group’s investment in petroleum explorers over 50 percent of the total.

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Harald Pettersen/Statoil ASA


Lekoil – next steps in West Africa

Lekoil – next steps in West Africa

Young oil company Lekoil Nigeria raised $48.6 million from investors as part of its listing on London’s Alternative Investment Market. The firm plans to use the funds to become a pan-African oil and gas business.

Until now it has an agreement with Afren witch gain a 27-percent interest in the OPL310 license, offshore Nigeria, and its holds a 69.75-percent interest in Blocks 2514 A & B, offshore Namibia.

OPL310 license located in the Dahomey-Benin Basin , has prospective resources estimated at around 128.5 million barrels of oil equivalent (MMboe).

According to Chief Executive Olalekan Akinyanmi, Lekoil plans to take advantage of the undoubted opportunities in Nigeria for indigenous businesses. Obviously these are great steps towards development and production business in Africa.

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