November 9, 2016 • Volume 08, No. 16 InternationalDeals Serving the marketplace with news, analysis and business opportunities

Siccar Point buys OMV’s UK North Sea business for $875MM Total signs Iran deal to lead Integrated Austrian oil and gas company OMV made its largest yet in a series of South Pars 11 gas project recent divestments, selling its UK North Sea business to privately held Siccar Point Returning to Iran after a six-year Energy for up to US$875 million. This is the second acquisition for Siccar Point, absence, Total has signed an HOA with which launched in Aberdeen two years ago with a $500 million initial state-owned NIOC to develop Phase 11 commitment from Blackstone Energy Partners, Blue Water Energy of the giant South Pars gas field. The and Singaporean sovereign wealth fund GIC and bought a minority stake French supermajor will take in the Greater Mariner area this summer. an operated 50.1% stake in OMV UK’s key assets are Near-term output & growth potential for Blackstone & Bluewater-backed firm. the offshore project alongside concentrated in the prolific West China’s CNPC (30% WI) and NIOC of Shetlands area of the UK Continental Shelf, where it owns multiple operated subsidiary Petropars (19.9%) under a discoveries, 11.8% WI in the BP-operated Schiehallion redevelopment, and 20% 20-year agreement. This mark’s Iran’s WI in the Chevron-operated Rosebank project. A new FPSO with 130,000 bo/d and first oil and gas deal with a Western 220 MMcf/d capacity is being commissioned at Schiehallion and slated to startup company since a nuclear deal with world in 1H17, and the 50,000 boe/d Rosebank project is in the FEED stage and expected powers took effect in January. online after 2020. Continues On Pg 4 Will operate with 50.1% WI for 20 Chevron’s 738 MMcfe/d Bangladeshi gas attracts suitors years with 1.8 Bcf/d startup in 2020. As part of a US$5-10 billion divestment program for 2016 and 2017, Chevron said it is in commercial talks to sell its gas properties in Bangladesh. The supermajor owns South Pars 11 will be developed in 100% WI in three operated fields in the country’s northeast that produced 738 MMcfe/d two stages, the first of which is expected (5% condensate) last year, supplying more than half of Bangladeshi to cost US$2 billion and involve 30 wells, demand. India’s ONGC and Hong Kong-listed United Energy Group and two wellhead platforms and two subsea Brightoil are reportedly vying for the assets, and Bangladeshi pipelines connected to existing onshore officials say state-owned is treatment facilities. Startup is expected considering a bid as well. Supermajor’s three fields supply more in 2020 with production capacity of 1.8 than half of Bangladesh’s gas demand. The Jalalabad, Bibiyana and Moulavi Bcf/d, which will supply Iran’s domestic Bazar gas fields were discovered by Unocal in 1989, 1998 and 1999 and came online gas network. A second investment stage in 1999, 2009 and 2005, respectively. Since its acquisition of Unocal’s upstream involving construction of offshore business in 2005, Chevron has increased production tenfold to meet Bangladesh’s compression facilities will be launched growing demand. In 2014 it began production from a 324 MMcfe/d expansion project to maintain reservoir pressure and could Continues On Pg 11 at Bibiyana, the largest of the fields. Continues On Pg 8 cost up to $4 billion. & in $13B deal for India’s Essar Oil DEALS FOR SALE Rosneft signed a definitive agreement to acquire 49% of Indian refiner Essar AUSTRALIA OPPORTUNITY Oil from the billionaire Ruia brothers’ Essar Group. Commodities trader Trafigura 1-Permit. >600,000-Acres. teamed up with Russian fund United Capital Partners to buy Essar Group’s remaining COOPER BASIN 49% stake in the refiner. The remaining 2% will be retained by public shareholders Known Structural Prospects & Leads. that did not participate in Essar 2D & 3D Seismic Data Available. PP SEEKING JV PARTNER Oil’s December 2015 delisting. Downstream purchase marks largest direct foreign investment ever in India. Production Rates: 500-1,000 BOPD SEEKING The deal, which has an Cum Prod: 80+ MMBO From Surrounding JV enterprise value of INR861 billion ($12.9 billion), consists of INR728 billion for Or Nearby Fields the combined 98% Essar Oil stake plus INR133 billion for supporting infrastructure Potential Recoverable Oil: 50 MMBO including the Vadinar port. At a press briefing, Essar Group director Prashant Ruia PP 1097DV said the equity valuation for Essar Oil comes to ~$5.8 billion—roughly equivalent SOUTHEAST ASIA GAS RESERVES to the INR380 billion market cap at which the refiner delisted just 10 months ago. 8-Wells. Essar plans to expand capacity at the Vadinar refinery, which is India’s second HIGH IMPACT OPPORTUNITY DS largest, contributing 9% of national output, from 405,000 bo/d to 500,000 bo/d and Some Land & Title Issue - build a petrochemical plant. -- To Resolve. BANKRUPTCY NONOPERATED WI POSITION Commissioned in 2008, the Gujarat plant processes more than 75 varieties of DS 1013 crude including tough ultra-heavy and sour oils. Continues On Pg 10 All Standard Disclaimers & Seller Rights Apply. InternationalDeals 2 November 9, 2016 Asia Global Marketplace sells Okinawa downstream to Taiyo for $129MM PLS engages with buyers & A mothballed Okinawa refinery is the latest asset shed by Petrobras as it nears sellers at Africa expo a US$15.1 billion divestment goal for the year. The company’s board has approved In Cape Town last week, PLS attended a $129.3 million sale of subsidiary Nansei Seikyu to privately held Japanese refiner the annual Africa Oil Week conference Taiyo Oil. Nansei Seikyu wound down crude processing at its 100,000 bo/d refinery hosted by Global Pacific & Partners. in 1H15 but continues to provide maritime terminal services serving half of This year’s show highlighted Okinawa’s market. both the steady stream of Taiyo, which has its own Refinery shut down in 2015, terminal business supplies half Okinawa’s needs. independent E&P firms into refinery and petrochemical business in Africa and the growing role of indigenous Japan, plans to operate Nansei Seikyu terminal business to supply its existing products companies. Besides insight from 130 to Okinawa. Besides the refinery, Nansei Seikyu has 36 tanks with 9.5 MMbbl of oil speakers, the show allowed us to engage and products storage capacity as well as port facilities. Petrobras bought an initial with ~100 exhibitor companies and more 87.5% stake in Nansei Seikyu from than 1,000 senior executive delegates on Petrobras bought 87.5% of Nansei ExxonMobil for ~$50 million in 2007 both buy-side and sell-side opportunities Seikyu from Exxon in 2007 for ~$50MM. and the remainder in 2010. The following for our clients. year it began exploring a potential sale. Petrobras said the deal with Taiyo followed a PLS Energy Advisory Group is competitive process with the price appraised by three financial institutions. Closing is handling opportunities in South America, planned for December. Including Nansei Seikyu, Petrobras is about two-thirds of the Australia, the Atlantic Margin and way to its $15.1 billion divestment target. Southeast Asia, leveraging our expertise Talks underway to sell LPG unit Liquigas, sugarcane firm Guarani— in straight divestments and more complex Back home in Brazil, Petrobras said it is in advanced negotiations for the sale transactions. Another long-standing focus of LPG unit Liquigas Distribuidora to fuel distribution rival Ultrapar. Petrobras is bringing North American opportunities to initiated a competitive process in June for Liquigas, which has 23% market share buyers around the world. For example, we via a network of 4,800 authorized resellers. It is also in talks to sell its 45.9% stake are currently marketing US and Canadian in sugarcane company Guarani to French sugar and ethanol producer Tereos as projects for Kerogen Exploration. For part of a planned exit from the biofuel more info on this opportunity email sector. Petrobras is hiring Banco Itau to Also closes $52MM reacquisition of two [email protected]. former Petrobras Argentina properties. advise it on the sale. Petrobras also completed the final step in its $892 million sale of its 67% stake in ABOUT PLS Buenos Aires-listed Petrobras Argentina to power company Pampa Energia, which closed in late July. As agreed in that deal, Petrobras reacquired two strategic assets that InternationalDeals is published every were part of the Argentine unit for $52 million, plus $4 million in closing adjustments: three weeks by PLS Inc. 33.6% WI in Argentina’s Rio Neuquen block and 100% WI in Bolivia’s Colpa Carranda PLS InternationalDeals covers the active field. Petrobras, Pampa and Argentina’s state-owned YPF plan to jointly invest $450 global asset marketplace with mergers, million in unconventional gas development to triple Rio Neuquen’s 2015 production divestitures, transaction, analyst comments, of 60.1 MMcfe/d (10% oil). deals in play and deal metrics. To obtain additional PLS product details, Latin America drill www.plsx.com/publications. Pacific transfers frontier blocks to QGEP to exit Brazil PLS Inc. Brazilian conglomerate Queiroz Galvao’s E&P arm QGEP is acquiring Pacific One Riverway, Ste 2500 E&P’s stakes in three of its operated frontier licenses in Brazil’s equatorial margin. Houston, Texas 77056 Pacific’s 70% WI in PAMA-M-265 and 50% WI in PAMA-M-337 in the Para-Maranhao +1 713-650-1212 (Main) Basin will boost QGEP’s ownership to 100%, facilitating future farmouts. QGEP will +1 713-658-1922 (Facsimile) also get Pacific’s 30% WI in the Foz do Amazonas Basin’s FZA-M-90 block, To obtain additional listing info, contact us increasing its stake to 65%. at +1 713-650-1212 or [email protected] To exit the blocks, Pacific Combined with Karoon deal, marks with the listing code. Only clients are able to Brazil exit for Pacific amid restructuring. will pay outstanding seismic costs and receive additional information. To become a client call +1 713-650-1212. other obligations totaling US$10 million. This agreement follows Pacific’s $20.5 million deal in late September to sell its stakes in five Santos Basin blocks containing three © Copyright 2016 by PLS, Inc. light oil discoveries to partner Karoon Gas Australia. Combined, the two agreements Any means of unauthorized reproduction is will mark Pacific’s exit from Brazil—an objective announced in August to put the prohibited by federal law and imposes fines company on stronger financial footing when it comes out of a pending restructuring. up to $100,000 for violations.

Find more on the A&D marketplace at To learn more about PLS, call +1 713-650-1212 Volume 08, No. 16 3 A&D Supermajors selloffs pick up North Sea & Western Europe pace, despite tough E&P Statoil buys out Wintershall at near-term Byrding project Divestment programs continue to Wintershall is divesting its second Norwegian oil project in less than a month, pick up steam as the supermajors and selling its 25% WI in license PL090B containing the Byrding development to operator other large producers work toward their Statoil. Formerly known as Astero, the 2005 discovery lies north of Fram field in the targets heading into the final stretch of northern North Sea’s Viking area at 360-m water depth. Statoil’s stake will jump to the year. So far this year, 70% in the project, which has 11 MMboe of gross recoverable resources and IN THIS these efforts have mostly ISSUE is expected online in 3Q17. Idemitsu and Engie each own 15% WI. yielded and Statoil submitted a plan in downstream deals, as upstream asset August to develop Byrding via a 7-km- Using existing infrastructure, capex reduced 70% to $120 million. valuations remained under pressure from long dual-lateral well drilled from the oil prices. However, in recent weeks, large existing Fram H-Nord subsea template. Production will approach 8,000 boe/d during deals for the divestment of producing the 2017-2018 peak period and continue for eight to 10 years, with oil and gas flowing properties have been signed by Shell in to the Troll C platform. The new plan reduced anticipated capex to NOK1 billion the Canadian shale sector and advanced (US$120 million) from NOK3.5 billion. by Chevron in Bangladesh’s gas fields Wintershall also selling its 10% WI in “Byrding is a low-cost project that Yme redevelopment to Okea. (page 1). It is notable that these moves is profitable in the current oil price came amid Brent oil’s longest sustained environment. Through this transaction, we further deepen our position in a core area period YTD above $50. for Statoil,” western operations SVP Gunnar Nakken said. Statoil has struck multiple deals in the last year to boost its exposure to development opportunities in key areas of Statoil a buyside leader in 2016 with 12 upstream acquisitions so far. the Norwegian Continental Shelf including Utgard in the Viking area and Wisting in the Hoop area of the Barents Sea. Even ExxonMobil—the only For Wintershall, the Byrding exit follows an early October deal to sell its 10% supermajor not working through a WI in the Yme redevelopment to private startup Okea, which is also buying ’s multi-billion divestment program this operated 60% stake. Wintershall entered the Norwegian E&P sector in 2006 and has year—trimmed some fat, selling its retail grown into a major operator in the country with output exceeding 80,000 boe/d. business in Nigeria to an indigenous United Oil & Gas buys shut-in UK oil field from First Oil company to focus on E&P (page 9). As its first acquisition, Ireland-based startup United Oil & Gas picked up Chevron is working on a similar deal in First Oil’s 26.25% WI in the shut-in Waddock Cross oil field and 22.6% WI in the South Africa and has received offers from surrounding PL090 exploration license in the UK’s onshore Wessex Basin. Both multiple suitors with experience in the licenses are operated by Egdon Resources with expiration in 2024. Waddock sector (page 8). Meanwhile Petrobras Cross has an estimated 30 MMbo in place in shallow Bridport sandstone continues to chip away at its $15.1 reservoirs. Options are being evaluated to restore production to the field, billion target, most recently disposing of which first came online in 2013. The 45,200-acre exploration license targets multiple a defunct Okinawa refinery and related prospects in the Triassic Sherwood sandstone, which has produced 450 MMbo at the terminal business while advancing neighboring Wytch Farm oil field. talks for the sale of an LPG unit and a Privately held United was formed last year by former employee Brian sugarcane business (page 2). Larkin to acquire non-op stakes in European assets considered non-core by mid-cap On the buyside, it’s worth calling and larger oil and gas companies. First Oil, once the UK’s largest private domestic attention to Statoil (top right), perhaps North Sea producer, began selling off its assets in Q1 after entering administration. the most opportunistic international player of the downcycle with 12 upstream acquisitions so far this year. These Top Five New International Energy Deals in This Issue purchases have consisted of interests in Value near-term developments and exploration Date Buyer Seller ($MM) Type Country projects both at home in Norway and 10/31 GE Oil & Gas $25,070 OFS Multiple abroad, often with undisclosed prices. Rosneft, Trafigura, 10/15 United Capital Essar Oil $12,900 Downstream India In the current environment, Statoil’s 10/20 Tourmaline Oil Shell $1,037 Property Canada financial strength gives it the ability to bring to fruition projects that other 11/09 Siccar Point Energy OMV $875 Property UK companies cannot afford to, and it is 10/26 National Oilwell Varco Akastor $145 OFS Norway leveraging that strength to its advantage Total $39,215 in the deal market. Note: Based on deals with disclosed values. Source: PLS Global M&A Database For general inquiries, email [email protected] Access PLS’ archive for previous A&D news InternationalDeals 4 November 9, 2016 North Sea & Western Europe Asia Siccar Point buys OMV’s UK North Sea business Continued From Pg 1 Blackstone parts ways with OMV also owns 5.6% WI in the producing Jade gas and condensate field SE Asia startup Tamarind operated by ConocoPhillips in the Central Graben area. The company had net 2015 Blackstone has lined up a strong asset production of 1,500 boe/d (60% oil) from Jade and two smaller fields in the area. In base for its North Sea-focused E&P startup all, OMV has stakes in 22 licenses on the UKCS. Siccar Point Energy with the US$875 “We identified OMV UK as a strategic fit for Siccar Point given million acquisition of OMV’s UK business, the scale, diversity, and quality of its asset portfolio,” Siccar Point but the private equity firm reportedly CEO Jonathan Roger said. “This acquisition turns Siccar Point into a full-cycle oil had to scrap another energy venture and gas company with a substantial and OMV UK targeted for ‘scale, diversity & focused on Southeast Asia after failing to high-quality UK North Sea portfolio.” quality of its asset portfolio.’ find attractive deals in the region. Like Blackstone managing director Mustafa Siccar Point, Malaysia-based Tamarind Siddiqui praised the “combination of low-cost production in the near term from Energy was formed in mid-2014 with Schiehallion and long-term growth” from other OMV development projects. Blackstone backing, but The Wall Street Siccar Point made its first acquisition in August, buying 8.9% WI in theStatoil - Journal reports that the two firms parted operated Greater Mariner area on the East Shetland platform from Japan’s JX ways in August with $800 million equity Nippon, which retains 20%. The area’s $7.7 billion Mariner heavy oil development commitment still undeployed. Led by is underway with first oil scheduled for 2H18. Mariner is expected to plateau at former Talisman execs, Tamarind was 55,000 bo/d and produce for 30 years. Blackstone’s first attempt to enter the Siccar Point made first deal this summer, OMV will receive $750 million at buying into $7.7B Mariner project. Southeast Asian E&P space. closing, which is expected in 1Q17, and PE-backed buyers have struggled to a contingent payment of up to $125 million related to the Rosebank partners reaching find assets for sale at attractive prices in FID. The companies have also agreed to a $125 million price adjustment for capex Southeast Asia and have had to compete spent since the effective date of Jan. 1, 2016. against aggressive buying by state-owned The UK exit caps a string of divestments for OMV over the past few months, oil companies in the region. KKR-backed including the sale of part of its Rosebank stake to Canada’s Suncor for $50 million Mandala Energy launched in March in August with another $165 million coming at FID. OMV is also selling 49% of 2015 and has secured only two deals so its regulated pipeline business Gas Connect to Italian gas infrastructure far, both in Indonesia: a 35% stake in a firm and insurance and finance development project for $180 million and $275MM Rosebank stake, $675MM giant Allianz for €601 million (US$675 two exploration blocks for $8.25 million. Austrian pipelines among recent OMV sales. million) and has divested non-op stakes in development projects offshore Norway. OMV is also working to divest its heavily Middle East & North Africa regulated Turkish retail fuel and import terminal network OMV . As a Apex opens Houston & Cairo first step, the Turkish subsidiary is recently agreed to sell its Aliaga terminal to an offices, ready for Egypt deals investor group led by Azerbaijan’s state-owned Socar. In a show of optimism for the Middle “This transaction is a major step towards the further optimization of our portfolio,” Eastern and North African deal market, OMV CEO Rainer Seele said of the UK divestment on a conference call. “OMV Warburg Pincus-backed E&P startup plans to use the proceeds for strategic investments in low-cost development regions Apex International Energy has opened and for strengthening the balance sheet.” offices in Cairo and Houston. Launched by former Apache president Roger Plank earlier this year and armed with a US$500 million war chest, Apex plans to pursue acquisitions, farm-ins and government bid rounds initially in Egypt with potential to expand to other countries in the region. “With significant funding in place and Transactions Metrics the launch of our two offices, Apex is now in a position to acquire and develop E&P and Comparables assets,” Plank said. “We have made Egypt our top-priority place to invest and are Providing critical valuation actively involved in the current concession information on oil & gas deals. bidding round and evaluating a number of www.plsx.com/ma Call +1 713-650-1212 or email [email protected]. interesting acquisition opportunities.”

Find more on the A&D marketplace at To learn more about PLS, call +1 713-650-1212 Volume 08, No. 16 5 A&D FSU & BP seals buy-in to Rosneft exploration acreage in Siberia ONGC closes 2nd Vankor buy Rosneft closed a Siberian onshore exploration pact with longtime collaborator from Rosneft for $930MM BP, contributing 64 million acres in the West Siberian and Yenisey-Khatanga basins to a new JV company called Yermak Neftegaz. BP and Rosneft own 49% Rosneft closed its sale of an additional and 51% of the JV, respectively, which will initially continue appraisal of 11% stake in northeast Siberia’s giant Rosneft’s 2009 Baikalofskiy discovery in the Yenisey-Khatanga AMI and Vankor oil project to partner ONGC for shoot seismic on the Zapadno-Yarudeiskoye block in the West Siberian AMI. US$930 million. The previously BP and Rosneft signed a preliminary deal last November and a definitive agreement undisclosed price tag implies to create the JV in June. Before closing they won auctions for two additional blocks the same $3.40 ppboe/g within the Yenisey-Khatanga AMI, bringing the JV’s total to seven blocks. BP will valuation applied in ONGC’s $1.27 contribute $300 million to fund two exploration phases on the acreage. billion acquisition of its initial 15% stake in Vankor, which has gross 2P reserves Max liquidates asset base in Kazakhstan’s Pre-Caspian Basin of 2.45 Bboe (79% oil and condensate). One year after its exit from the AIM exchange in London, Max Petroleum has ONGC closed the initial acquisition in completed the sale of its Kazakhstan-focused asset base. Founded in 2005, Max May and signed a definitive agreement for operated in western Kazakhstan's Pre-Caspian Basin where it had 100% WI in Blocks the additional stake in September. A and E and made eight post-salt discoveries. The company had drilled 47 shallow wells on the blocks and was Rosneft has made $5.3B selling stakes producing 2,380 bo/d when it put its assets up for sale. In addition, Max shot and in Siberian oil projects to Indian NOCs. interpreted 3D seismic to define a large inventory of pre-salt and post-salt prospects and Rosneft has now made more than leads on its 3.1 million acres. The company had a staff of ~160, mostly in Kazakhstan. $5.3 billion selling stakes in Siberian In mid-2014, Max struck a US$115.6 million deal to fund continuing operations by oil projects to state-owned Indian oil selling a 51% equity stake to AGR Energy Group, a special purpose acquisition vehicle companies over the past year. Besides of the Assaubayevs, a well-known business family in Kazakhstan. The cancellation ONGC, it sold 23.9% of Vankor and of Max’s shares from AIM late the following year resulted in part from financial 29.9% of its Taas-Yuryakh development uncertainty due to Kazakh anti-monopoly regulators’ resistance to the AGR deal. to a consortium of Oil India Ltd., Indian North Sea & Western Europe Oil Corp. and refinerBharat Petroleum for $3.14 billion. The Vankor deals Verus takes over UK side of Boa oil field from Maersk Oil fulfilled a goal of reducing Rosneft’s Privately held Verus Petroleum has agreed to acquire partner Maersk Oil’s stake to 50.1%. Rosneft retains 100% 86.3% stake in the UK portion of the Boa oil field, which straddles the maritime border ownership of associated infrastructure with Norway in the central North Sea. The deal includes net production of 1,800 including the Vankor-Purpe oil pipeline. boe/d. It boosts Verus’ stake to 100% WI in the UK portion and 11.35% in the overall field, which is operated on the Norwegian side by Aker BP as a four-well tieback to Five Indian NOCs to enter talks for stakes in cluster of nearby oil finds. the Alvheim FPSO. Boa lies 88.65% in Norwegian and 11.35% in UK waters. Also closes $7.1MM Vulcan satellites sale to Independent Oil & Gas. Rosneft said the closing of the final “After two years of working through Vankor sale completes the establishment the industry downturn, this milestone acquisition trebles the company’s production of an international oil hub centered on and sets us up for further deals over the coming months,” Verus CEO Alan Curran said. the project. Its four Indian partners plus So far this year Verus has been a seller, striking deals to sell exploration license stakes a fifth NOC,, plan off the UK to Cluff Natural Resources in March and to Independent Oil & Gas for to begin negotiations soon to acquire up to £5.0 million ($7.1 million) including contingent payments in June. stakes in the nearby Suzun, Tagul and The latter deal closed after the Maersk deal was announced, with IOG taking Lodochnoe discoveries, collectively over Verus’ 100% WI in four UK southern North Sea blocks containing the Vulcan called the Vankor cluster. The largest of satellite gas discoveries. The Vulcan East, North West and South discoveries these finds, Suzun, is expected online this have 2C contingent resources of 320.7 Bcf, roughly doubling IOG’s combined 2P year with a 90,000 bo/d plateau. reserves and 2C resources. Verus was formed in 2013 when Norwegian private Online since 2009, Vankor is the equity firm Hitecvision took UK North Sea explorer Bridge Energy private for largest Russian oil field discovered and £100 million (US$164 million). placed in operation in 25 years with gross oil production of 421,000 bo/d. It is also a key supply source for Transneft’s East Siberia Pacific Ocean pipeline, which exports Russian crude to China, South Korea and Japan. For general inquiries, email [email protected] Access PLS’ archive for previous A&D news InternationalDeals 6 November 9, 2016 FSU & Eastern Europe North Sea & Western Europe Mazarine acquires 19 Romanian oil fields from OMV ■■ Australia-listed ADX Energy Leading southeast Europe producer OMV Petrom agreed to sell 19 oil fields has engaged in preliminary talks with onshore Romania to privately held Mazarine Energy along with three workover potential farm-in partners and buyers rigs. With 2015 production of 1,000 boe/d, the fields represent less than 1% of OMV of a stake in its shallow-water Petrom’s 178,000 boe/d total but mark a significant milestone for Mazarine as its first Nilde redevelopment offshore producing properties. Sicily ahead of a formal farmout Although the price is undisclosed, the acquisition will be funded through process set to begin in November. The a $500 million equity line provided by The Carlyle Group in May. Mazarine company says it is well placed for such has identified multiple production optimization and workover opportunities to deals to fund 2017 appraisal drilling after grow production and is planning seismic to identify undrilled structures. Upon closing a new assessment more than doubled slated for Q4, Mazarine will assume operatorship of the fields and employment of more the project’s estimated 2C contingent than 200 OMV Petrom staff members. Founded in 2013, Mazarine has an operated resources to 60 MMbo. Discovered by , Nilde came online in 1980 via permit with two commercial discoveries in central December 31, 2014 • Volume 06, No. 15 InternatIonalCapItal Tunisia and is reviewing potential acquisitions in Serving the marketplace with news, analysis and business opportunities a single vertical well that produced Analysts assess project risk at various price points Petrobras scandal, possible In perhaps the most extreme prognostication to date, Goldman Sachs analysts default spurs lawsuits say $1.0 trillion in projects could fall by the wayside as $60/bbl Brent renders certain The ongoing investigation into the 10,000 bo/d of 39°API oil. The field Europe and North Africa. higher-priced projects around the world unprofitable. Projects aggregating $930 Petrobras scandal could soon have billion worth of future investment were no longer profitable with Brent at $70/bbl, the implications outside Brazil. That’s investment bank said, and that $10/bbl less would push that number to the $1.0 trillion because the company and its executives InternationalCapitalmark. The Goldman analysis looked at 400 of the world's largest new fields have been May named 27 excluding US shale. as the target was prematurely abandoned in 1988 as Goldman estimates that more than Led by Canadian The 19 fields were part of a larger asset package $1.0T in projects are at risk at current prices. of a new, $98-billion US class-action projects at $80/bbl and certain US shale lawsuit alleging Petrobras made material plays and other plays at $76, Energy Aspects say more than 12% of global oil misstatements about the value of production would be uneconomic if the majors were to move forward on existing projects at today’s prices. Brazil’s deepwater fields just wouldn’t be worth the expense at $75 and S&P says Petrobras would be junk- watercuts increased amid low oil prices. rated if not for government support. that OMV Petrom has been marketing since 2014 MazarineMexican projects would cease to be profitable Energy at $70. The group told the Financialbecomes Times a it believes 1.5 MMbopd of the world’s planned 2016 projects are at risk at $70 and that its assets. The suit, filed in Manhattan’s over 1.0 MMbopd of 2017 projects are chancy at that price point. Continues On Pg 4 federal court on behalf of the city Oil prices the scourge of noted investors in 2014 of Providence, Rhode Island by the Labaton Sucharow law firm, ■■ Egdon Resources and Petrichor CarlyleSome of the world’s most portfolio astute and followed investors couldn’t escapecompany. the grip covers all securities Petrobras sold under its portfolio optimization program. that a slumped oil price had on various securities during 2014, and has given the since 2010: including debt issued by $2.8 trillion hedge fund sector its worst year since 2008. Most notable is the loss Petrobras International Finance Co. incurred by legendary activist investor Carl Icahn courtesy and Petrobras Global Finance from of his investment in Talisman Energy, now prepping for a February, 2012. Continues On Pg 12 Energy UK agreed to take over partner Repsol takeover (see story on page 7). After accumulating more than 7% of Talisman’s shares and gaining board seats and influence in the company, the golden Icahn touch was no match for oil prices FEATURED DEALS this year—his almost $900 million investment was down $540 million until Icahn's investment was down 40% at TUNISIA PROJECT one point before rebounding somewhat. 1-Permit. 556,481-Acres. (2,252km2) Celtique Energie’s stake in two recently the Repsol offer and the resulting share GHADAMES BASIN price boost cut his losses down to $286 million. His company’s total portfolio was Skyland advances $100 million acquisition in East ContainsSiberia One Discovery. FO up 4.4% through the end of Q3, filings show. Looking at his Talisman experience, 8 Identified Leads: Silurian Sandstone Icahn told the Wall St. Journal: “In this oil environment, I’m certainly glad a bidder Seismic Data Available. came along for it. Continues On Pg 6 Also Re-Entry Project for 2-Wells. RE-ENTRY SEEKING JV PARTNER FOR --- awarded UK onshore licenses --EXPLORATION PROGRAM. Australia-listed Skyland Petroleum has completed Oil-linkeddue contracts diligence put many LNG projects in limbofor Estits Mean EUR: 57 MMBOplanned While BG Group celebrates the loading of the first commercial cargo at its Gladstone Est Total In-Place Reserves: 385 MMBO LNG plant on Queensland’s Curtis Island, the current pricing climate has already altered Exploration Term Expires April 2016. CA Required To View Data Room. the fate of the Pacific NorthWest LNG megaproject in Canada and may affect investment CONTACT AGENT TO LEARN MORE in the East Midlands area at decisions in other large-scale LNG projects worldwide. While not an oil FO 1022DV acquisition of the Mirnisky license (100% WI) in East Siberia,drilling project, conventional or otherwise,which the $32 billion, multi-partnered contains four -led effort has been put on hold as the Malaysian NOC defers a final OFFSHORE AFRICA FARMOUT investment decision on the gas project with a list of entirely Asian prospective customers 1-PSC. 420,079-Acres. (1,700km2) that are used to paying for LNG based on SENEGAL & GUINEA-BISSAU LNG prices in Asia now below AGC MARITIME COMMISSION ZONE DV no cost. Egdon is increasing oil-indexed contracts. $10/MMbtu, disturbing to profitability. Contains One Identified Prospect. named oil and gas discoveries including one on pilot production.With the drop in crude, LNG prices However,Shallow Water: 328 Ft. (100m) it has landing in Asia have now sunk below $10/MMbtu, down from $16/MMbtu as recently 3-D Seismic Data Available. SHALLOW as April 2014. In North America alone, nearly 40 mtpa of LNG projects are under 40% WORKING INTEREST AVAILABLE Estimated Reserves: 475 MMBO construction with another 30 mtpa expected to reach FID in the next twelve months. CA Required To View Data Room. its stake from 37.5% WI to 60% and In Australia, LNG breakeven prices are $13-$14/MMbtu. Globally, as with oil, LNG CALL AGENT FOR MORE INFORMATION pushed back the anticipated closing date from October landedto prices willyear’s adjust to market dynamics. end.Continues Following On Pg 10 DV 5234L the deal announcement in August, Skyland disclosed a US$100 million price All Standardtag Disclaimers &for Seller Rights Apply. the Petrichor from 25% to 40% in PEDL334 acquisition and named Yakutsk Fuel & Energy Co. as the private Russian seller. in the Humber Basin. At PEDL306 in Skyland also announced the results of a new independent resource evaluation for the Widmerpool Basin, Egdon will jump the 605,900-acre license. The two largest discoveries Machobinskoye and Nelbinskoye from 18.75% to 30% and Petrichor from were assigned 2P reserves of 152.4 MMboe (50% oil and condensate), while the smaller 12.5% to 20%, with Hutton Energy and North Nelbinskoye and Mirninskoye, plus a number of smaller, unnamed finds, were Coronation Oil & Gas each retaining estimated to have 2C contingent resources of 91.4 MMboe (38% oil). 25%. Petrichor is a subsidiary of US “We have demonstrated our commitment to this project, making good progress in onshore explorer Heyco Energy Group, a short period of time, and are now taking the next steps in completing this high-value which also owns an equity stake in Egdon. acquisition,” Skyland managing director David Robson said. For over 25 years, PLS has been the central access point Skyland Touts Deal Comparables in Mirninsky Acquisition for buyers & sellers. Value US$/ US$/ PLS manages the oil & gas industry’s largest multiple listing service, Field Location (US Seller Buyer bbl boe currently offering over 1,300 active $MM) C1+C2 C1+C2 listings for sale including prospects, TAAS E. Siberia $750 Rosneft BP $3.03 $1.58 properties, farmouts, shale acreage, TAAS E. Siberia $1,100 Rosneft OIL, IOC, Bharat > $3.03 > $1.58 royalties, overrides, nonproducing minerals and midstream assets. Vankor W. Siberia $1,350 Rosneft ONGC $2.40 $1.94 Clients can run noncommissioned Yamal LNG Yamal $1,400 Novatek/ Silk Road/CNPC n/a (gas) $1.70 listings in any of PLS’ U.S. core or Total regional reports. To submit a listing(s) Corporate Russia $1,000 Burneft- Bashneft $2.59 n/a (oil) today, email [email protected]. egaz To obtain additional info on a listing, Govt. call 713-600-0154 and provide listing Kubalakhskiy E. Siberia $30 auction Rosneft n/a n/a code or email [email protected]. Only PLS clients are able to receive Monulakhsky E. Siberia $38 Govt. SyuldyukarNefteGaz n/a n/a additional information. To become a auction client, call +1 713-650-1212. Mirninsky E. Siberia $100 YATEC Skyland $1.02 $0.39 Visit www.plsx.com/listings Note: Based upon 2015/2016 East Siberia average metrics, Mirninsky license has an asset value of for more opportunities. US$273 million (oil only). Source: Skyland Petroleum Oct. 27 Presentation via PLS docFinder

Find more on the A&D marketplace at To learn more about PLS, call +1 713-650-1212 Volume 08, No. 16 7A&D Africa Cobalt hooks a variety of buyers in new Angola sale process ■■ Canada-based Africa Energy Supermajors, NOCs and mid-sized E&P firms are vying forCobalt International Corp. closed three December 2015 Energy’s operated Blocks 20 and 21 (40% WI) offshore Angola, CEO Tim Cutt said on deals to acquire 90% WI in South a conference call. Many of the suitors took part in the previous sale process Africa’s shallow-water Block 2B, that led to a US$1.75 billion deal with state-owned Sonangol last year, but where a 1988 well tested light there are new entrants as well. The Sonangol deal was terminated this summer. oil. A member of the Lundin Despite high interest, Cobalt is preparing data rooms to farm down part of its US Group formerly called Horn portfolio as a contingency to extend its liquidity and, consequently, its Petroleum, which took an operated window to close the Angola deal. Cobalt has made seven pre-salt discoveries on the 34.5% WI by acquiring Thombo Angolan blocks with estimated gross oil resources of 1.3 Bbo. Petroleum for $2 million cash plus Woodside seals $350MM pickup of Conoco’s Senegal oil finds 14.8 million shares, bought Afren’s ConocoPhillips completed the first step in its planned exit from deepwater 25% for $1 million cash and completed exploration, closing the US$350 million sale to Woodside Petroleum of its 35% WI in a 30.5% farm-in with remaining partner the Cairn Energy-operated Rufisque, Sangomar and Sangomar Deep blocks offshore Crown Energy. The Thombo deal Senegal. The blocks contain the 2014 SNE and FAN oil discoveries, which includes 20 million shares and $1.5 were Senegal’s first offshore wells in more than 20 years and its first deepwater million in cash and/or stock contingent wells ever. Based on four successful appraisal wells, SNE contains gross 2C on commercialization milestones. Four recoverable resources of 641 MMbo. companies have approached African Including $90 million in net customary Acquisition faced preemption challenge Energy to partner on Block 2B. from JV member Far Ltd. in August. adjustments, Woodside paid $440 million ■■ Middle East and Africa producer cash at closing. Conoco expects to recognize a Q4 gain on the sale of the blocks, which had Genel is negotiating with multiple a net carrying value of $285 million at the end of Q3. Announced in mid-July, the deal faced potential farmout partners a challenge in August from Conoco’s JV partner Far Ltd., which tried to preempt the sale. for its operated Sidi This is Woodside’s first acquisition of discovered resources in West Africa, Moussa license offshore although the Australian producer has exploration acreage in the region. The SNE Morocco (60% WI), which has been development plan, involving subsea wells tied to an FPSO, will benefit from extended to 3Q17. The license contains Woodside’s considerable experience in remote offshore basins. SNE is expected to multiple prospects defined by 3D cost $5.6-8.6 billion and plateau at 50,000-100,000 bo/d. seismic with 750 MMboe of estimated gross unrisked resources. The largest FSU & Eastern Europe is the potentially play-opening Nour Valeura buys out partner TransAtlantic in JV onshore Turkey Deep prospect targeting a 350 MMbo TransAtlantic Petroleum is exiting a five-year-old JV in northwest Turkey’s Thrace accumulation in the Lower Jurassic Basin, selling its operated 41.5% WI in 14 licenses covering 293,670 gross acres to partner clastic play, which is proven onshore. Valeura Energy for US$22 million. The deal doubles Calgary-based Valeura’s stake to A late 2014 wildcat drilled to 2,825 m 81.5%; Pinnacle Turkey Inc. retains 18.5%. Concurrently, Valeura will encountered 26°API oil in fractured sell 50% WI in deep rights on the western part of the acreage to Statoil and crecciated carbonates but was for $15 million. abandoned after testing failed to TransAtlantic had September net Flips deep rights to Statoil, expanding produce at sustainable rates. Thrace Basin exploration partnership. production of 2.27 MMcfe/d (99% gas) from shallow wells on the JV licenses, and acquisition metrics of $0.85 ppmcfe/g reported by Valeura (based on an expected $18.5 million price after closing adjustments) imply acquired net 2P reserves of 21.85 Bcfe. Valeura also reported deal metrics of 3.2x cash flow and $7,227 ppmcfe/d based on Q2 net production of 2.56 MMcfe/d. It says the acquisition will boost company-wide production 59% and 2P reserves 85%. The transfer of 87,023 net acres of deep rights to Statoil expands joint exploration A simpler way efforts with the Norwegian producer, which signed a definitive farm-in agreement in to track global August for half the deep rights on Valeura’s adjacent Banarli licenses. Valeura expects to close the acquisition from TransAtlantic, the Banarli farmout and a $12 million O&G activity portion of the Thrace Basin deep rights sale by year’s end. Cormark Securities advised Valeura on the acquisition. A unique tool for monitoring global TransAtlantic will use sale proceeds to fund drilling in southeast Turkey. It remains activity by country, project, etc. active in the Thrace Basin via its Temrez block (100% WI), which it plans to explore wire.plsx.com if Valeura and Statoil establish deep productivity in the area.

For general inquiries, email [email protected] Access PLS’ archive for previous A&D news InternationalDeals 8 November 9, 2016 Asia Africa Chevron’s Bangladeshi gas attracts suitors Continued From Pg 1 Total, & vie Chevron’s contracts for the fields cover 186,000 acres and expire in 2024-2034. for Chevron South Africa All gas from the fields is sold to Petrobangla, which has preemptive rights to the Chevron has reportedly attracted assets under Chevron’s production sharing agreement. All gas from the fields is sold to multiple bids for its downstream business Petrobangla, which has preemptive rights to the assets under Chevron’s production sharing in South Africa, which it announced plans agreement. Petrobangla is assumed to be considering a bid but is waiting to be approached in January to sell. The second bidding by Chevron; however, it lacks experience managing such large-scale, technically advanced round run by Rothschild fields and would likely need to bring in a foreign partner to operate them. closed Sept. 30 with offers United Energy submitted made by a number of suitors a joint offer with Chinese ONGC, United Energy, Brightoil & NOC including supermajor rival Total, Anglo- Petrobangla named as potential buyers. conglomerate Orient Group, Swiss commodities trading and mining according to a Bloomberg story citing unnamed sources. The story also named ONGC firm Glencore and Swiss oil trader and Brightoil as suitors. The news agency previously reported that Chevron was seeking Gunvor as frontrunners, according to ~$2 billion for the assets, whereas others said they were worth ~$4 billion. Government a Reuters story citing unnamed sources. officials put the value closer to $1 billion, according to NikkeiAsian Review. Multiple media outlets suggest the sale United Energy has oil and gas properties in Pakistan’s southern Sindh province process also includes Chevron’s assets in with 2013 production of 20.3 MMcfe/d (66% gas) and a large-scale thermal EOR neighboring Botswana and is expected to project at China’s Liaohe field. It bought the Pakistani assets fromBP for $775 million result in a ~$1 billion deal. in 2011 in the country’s largest oil and gas deal. Oil trading and shipping firm Brightoil entered the upstream sector in 2014 with its $1.1 billion acquisition of Anadarko’s Chevron owns 75% stake in 110,000 legacy oil fields in China’s Bohai Bay. bo/d refinery & 845 service stations. Also marketing gas assets in Myanmar, Chevron’s gas fields in Bangladesh Chevron owns 75% equity in the Indonesian & Philippine geothermal. join a growing list of Asian assets South African business, the remainder reportedly put up for sale in recent months. In Myanmar it has 28.3% WI in the Total- of which is owned by employees and a operated Yadana and Sein offshore gas fields and in a pipeline system that transports consortium of local partners. The business most of the gas to Thailand. unit operates a 110,000 bo/d refinery in Chevron is also reportedly working with Citigroup to sell Asian geothermal Cape Town and has a stake in a lubricants interests that could fetch up to $3 billion. In the Philippines it owns a 40% stake in the plant in Durban. It also has a network of Philippine Geothermal Production Co. and an interest in the Kalinga geothermal more than 845 Caltex-branded service prospect area. In Indonesia’s West Java province, it operates the Darajat and Salak stations, making it one of the country’s geothermal fields and owns 95% WI in two power plants totaling 270 megawatts. top five petroleum brands. Chevron listed its South African downstream business among assets targeted for monetization Chevron Targeting $5-10 Billion in Divestments for 2016-2017 in a March 8 presentation, along with Proceeds Successful program New Zealand marketing, Hawaiian downstream, US Gulf of Mexico shelf and $ billions (before tax) Target •Well-timed transactions ~$5–10 Western Canadian gas-storage operations. •Captured good value In July, Johannesburg-based energy and petrochemical company Sasol said Public domain Divestment criteria it was negotiating to acquire Chevron’s Hawaii downstream South African business. The retail •Non-strategic fit $5.7 South Africa network could provide a higher margin downstream •Unable to compete for fuel from Sasol’s costly coal-to-liquids Canada downstream for capital operation, which is the world’s largest and Myanmar has struggled amid low oil prices. With its $2.9 Caltex Australia Geothermal •Receive fair value Nigeria limited retail footprint, Sasol has had to sell Bangladesh its fuel at wholesale prices to competitors. $2.2 South Africa’s state-owned Strategic Fuel 3Q 2016 YTD Fund also made an offer, but its CEO and 2006 – 2015 2015 2016 – 2017 chairman resigned soon afterward when annual average it was revealed that the fund did not seek Source: Chevron Nov. 1 Presentation via PLS docFinder www.plsx.com/finderr government clearance first.

Find more on the A&D marketplace at To learn more about PLS, call +1 713-650-1212 Volume 08, No. 16 9 A&D Asia-Pacific Africa ■■ New Zealand Oil & Gas and Beach Exxon sells Nigerian retail business to local player NIPCO Energy are in talks with potential farm- In Nigeria’s latest supermajor divestment, ExxonMobil agreed to sell its retail in partners that have scale and capability operations in the country to indigenous downstream outfit Nigerian Independent to operate their deepwater Petroleum Co. NIPCO will take Exxon’s 60% stake in Mobil Oil Nigeria, one of six Barque oil prospect in the major petroleum products marketers in the country with more than Canterbury Basin. Located 200 retail outlets and a 450,000 bbl/d lube oil blending plant. It will on the Clipper license offshore New continue to use the Mobil lubricants brand Zealand’s , Barque has best- under a licensing agreement with Exxon. Indigenous firms are primary buyers of supermajor assets in Nigeria. estimate prospective resources of 530 NIPCO managing director MMbo. The two companies have 50% WI Venkataraman Venkatapathy told Nigerian newspaper BusinessDay that Exxon made each in the license with NZOG operating. the sale to focus on upstream activity. Mobil Oil Nigeria’s stock rose 2% on the news Under newly approved conditions, the to NGN190/share, implying a market value of NGN41.1 billion (US$130 million) for partners must make a drill-or-drop Exxon’s controlling stake. With roots dating back to 1907, Mobil Oil Nigeria was decision by April 2018 and drill an initial incorporated in 1951 and listed on the Nigerian Stock Exchange in 1991. well by June 2010 to hold the license. The integrated oil producers have sold many of their Nigerian assets to local ■■ Tag Oil struck a A$2.5 million companies in recent years, citing oil theft, pipeline vandalism and tax uncertainty. (US$1.9 million) definitive agreement to Meanwhile the government has actively encouraged local ownership. Most recently, acquire Southern Cross Petroleum & Shell, Total and Eni sold their combined 45% WI in Exploration’s license January 29, 2016 four producing oil blocks to indigenous companies InternatIonal Scout PL 17 (100% WI) in Serving the international upstream industry with information, analysis & prospects for sale Volume 08, No. 02 for ~$5 billion in 2014. In the downstream space, Eni’s third West Hub field on stream in Angolan deepwater Who dat? Eni started up the Mpungi oil field offshore Angola in Block 15/06. Mpungi is part of Readers will notice a change in the the West Hub development project, which lies 350 km northwest of Luanda, and its start- mastheads for our international products. up follows that of Sangos field in November 2014 and Cinguvu field in April 2015. With Changing the “Explorer” name to eastern Australia’s onshore Surat Basin. three fields now producing to the N'Goma FPSO, West Hub’s output is projected to grow “Scout” is the first step in bringing our Chevron sold its majority stake in Chevron Oil to 100,000 bo/d during 1Q16. The field was brought on stream on time and on budget. international report in step with our U.S. Approved in 2010, West Hub reports, where we have InternationalScoutStart of Mpungi will bring West Hub to October 31 taps or will tap Block 15/06’s been publishing Regional 100,000 bo/d during 1Q16. Sangos, Cinguvu, Mpungi, Scouts for three-plus years The 25,700-acre block lies 20 km from Mpungi North and Vandumbu fields. They hold a gross 3 Bbbl (24-34° API), all in in plays like the Bakken and Eagle Nigeria to local player MRS Group in 2008. With Lower-Middle Miocene formations that feature normal pressure and temperature ranges. Ford. The new name is also an effort to Of the oil in place, 850 MMbbl can be recovered via 21 planned wells, all producing dovetail our global E&P report with our to the project FPSO anchored at Sangos field. Future plans include the addition of the Mpungi North and Vandumbu finds after start-up of West Hub’s sister project, East Hub. Mardi Gras offers the promise that Exxon's Owowo-3 appraisalthe good times will roll again. the historic Moonie oil field and contains East Hub in turn aims to develop 230 MMbbl at the Cabaca Norte and Cabaca Exxon’s exit, Total will be the only supermajor still South East discoveries, which also lie in Block 15/06. Continues On Pg 6 acquisition of Paris-based PetroWire Premier expands Falklands potential with Isobel Deep re-drill last April, and PLS plans to integrate Twitter-like abstracts, original content Off the Falkland Islands, Premier Oil’s Well 12/20-2 re-drill confirmed the confirms 500-1,000 and MMbo. research archives in the perfect Isobel Deep discovery as well as found pay in additional sandstones. Drilled to 3,014 complement to the new (wire.PetroWire. the Bennett and Leichhardt oil fields, m, the well intersected oil-bearing intervals in a number of reservoir sands between com) and the old (traditional publishing). active in Nigeria’s downstream sector. 2,564-2,861 m. No oil-water contact was detected by the deepened well, and Herein we are also adding new content Premier estimates that it has found gross oil pay of ~300 m. The partners like page 13, which shows additional permit will plug and abandon the well and combine these results with existing 3D data taken from PetroWire that might seismic to better estimate the size of the not be worthy of a story but interesting which have produced intermittently from discovered reservoir. Re-drill extends initial 23-m gross oil column to 300 m. just the same. Continues On Pg 3 Isobel Deep lies in the North Falkland Basin in the southern part of PL 004a, just 30 km south of Premier’s undeveloped, 400 MMbbl Sea Lion field in PL 032. In May 2015, exploration Well FEATURED DEALS Oceania 14/20-1 reached 2,526 m in water 400-450 m deep and intersected the top 23 m of CARIBBEAN LEASES Permian reservoirs since their discovery an oil-bearing reservoir in the F3 sands. The formation’s oil is similar to Sea Lion’s 4-Key Blocks. hydrocarbons (26-29°API), but the well registered higher-than-expected pressure FOR SALE OR JV DV that resulted in borehole influx. Continues On Pg 10 OFFSHORE GAS PLAY 2014 3-D Seismic On Blocks. CARIBBEAN Gas Infrastructure Nearby. ExxonMobil leads work in hot Guyanese offshore Analogous To Major Fields In Trinidad. in the 1960s. Leichhardt currently flows Offshore work is on the decline most everywhere in 2016, but Guyana is OPERATED WI AVAILABLE continuing to attract interest because of ExxonMobil’s Liza-1 discovery in the Estimated Recoverable: 15+ TCF Cooper buys Santos’ Victorian gas for upStabroek Block. Theto supermajor will$62 drill four wells there this yearmillion starting in DV 5350L 1Q16, assisted by more than 6,000 sq km of 3D data recently collected by CGG and Fugro. In addition to determining Liza’s SOUTH AMERICA OPPORTUNITY Massive Acreage Position. 15 bo/d. A work program is being designed size, the campaign will target the separate Ranger prospect—an Upper Jurassic- SHALLOW ONSHORE Lower Cretaceous carbonate build-up 2-D Seismic Defined. EX After selling its stake in the Kipper development for A$520with draped Lower Tertiarymillion clastics that Drilling program (US$367 will size up Liza find Offsets Prolific Basin. million) in the deepwater Stabroek block. could support up to 20,000 bo/d per well. Emerging Province. Low Cost. Access To Local Markets. EXPLORATION Exxon has been tight-lipped about how much oil Liza-1 found, saying only OPERATED WI AVAILABLE to improve understanding of reservoir that the well intersected a 90-m pay column. However, signs indirectly point to a Operatorship To Buyer If Qualified. substantial find. The Guyanese government estimates peg the find at 700 MMbbl-1.5 $15 Oil Breakeven Projected. in March, Santos is divesting its remaining gas assets Bbbl,offshore and officials have said hydrocarbons worthVictoria 12 times Guyana’s entire economy EXto 1033L Cooper likely lie there. Another clue is that Exxon is reportedly fast-tracking development of Liza and is looking at a 60,000 bo/d early-production FPSO that would later be More listings at plsx.com/listings properties. The purchase price consists of replaced by a 150,000-200,000 bo/d offshore unit. Continues On Pg 10 Energy for up to A$82 million cash (US$62 million). Cooper will acquire anAll Standard Disclaimersoperated & Seller Rights Apply. $1.25 million cash plus $1.25 million in 50% WI in the Sole development and onshore Orbost gas plant and 100% WI in either cash or shares at Tag’s discretion. the depleted Patricia-Baleen field in the Gippsland Basin. In the Otway Basin, it ■■ KrisEnergy acquired the stakes will get an operated 50% WI in the producing Casino-Henry project, 10% WI in of partners Mitsui and GS Energy in the BHP Billiton-operated Minerva field and gas plant, and three prospective blocks. Cambodia’s Block A in the Gulf of The acquisition includes 1H16 net production of 28.6 MMcf/d and net 2P gas Thailand, boosting its operated stake from reserves of 54 Bcf from the producing properties plus net 2C contingent gas resources of 52.5% WI to 95% with the remainder 121 Bcf from Sole, where Cooper already has 50% WI. The company also owns 50% of held by the government. A deal was the Orbost plant. Cooper will pay A$62 million at closing, slated for early 2017, and an signed Aug. 31 to acquire Mitsui’s 28.5% additional A$20 million upon either reaching an FID for Sole or selling down any of the and GSE’s 14.25% and closed Oct. 7, acquired interests. An FID is expected by the company reported in its Q3 earnings next March, with first production by 1Q19. Purchase hikes Cooper production 7.2x, 2P reserves 9.1x. statement. Block A contains the 1994 Cooper managing director David Apsara discovery, which has gross 2C Maxwell called the acquisition transformational, saying it will strengthen the resources of 10.3 MMboe and is planned company’s position as a southeast Australian gas supplier. Its fiscal 2016 net production for first-phase development via a platform will increase 7.2x to 38 MMcfe/d and 2P reserves 9.1x to 69.6 Bcfe, with more than with a peak rate of 8,000 bo/d. There is 85% of pro forma output sold under stable, long-term contracts. potential for nine additional platforms. Cooper also announced the A$5.7 million (US$4.4 million) sale of its last Indonesian property, the operated Tangai-Sukananti oil complex in the onshore South Sumatra Basin (55% WI). Bass Strait Oil will pay A$2.77 million cash and transfer 180 million shares www.plsx.com to Cooper, whose equity stake in the buyer will increase from 13.5% to 24.1%. Deal Call to advertise! value also includes A$2.7 million in working capital. Cooper’s Indonesian exit is part of a For options, call +1 713-650-1212. strategic focus on growing its Gippsland Basin gas business.

For general inquiries, email [email protected] Access PLS’ archive for previous A&D news InternationalDeals 10 November 9, 2016 Asia Latin America Rosneft & Trafigura in deal for Essar Oil Continued From Pg 1 ■■ Chilean LPG distributor Abastible, It is served by a captive 1.01-gigawatt power plant and a 58 million-tonne deep a subsidiary of forestry and energy draft port capable of accommodating VLCC tankers (both included in the transaction). conglomerate Copec Group, closed its Essar Oil owns India’s largest private-sector retail network with 2,700 fueling US$33 million acquisition of Repsol’s stations. It plans to expand to 5,000 stations within the next two years. Ecuadorian LPG unit Duragas. With For Rosneft, the acquisition secures access to the fast-growing Indian market and annual volumes of 405,000 tons, strengthens its trading business in the Asia-Pacific region. Indian demand Duragas has 37% market share in for refined petroleum products Ecuador. The acquisition was announced is expected to grow 5-7% in Essar Oil owns India’s No. 2 refinery & in April along with Abastible’s $302 No. 1 private-sector retail network. the next five years. Rosneft will also million purchase of Repsol’s Peruvian benefit from synergies such as the ability to process its Venezuelan heavy oiland LPG unit Solgas, which closed in the cross-supply of oil products to Asia-Pacific countries such as Indonesia, Vietnam June. Combined, the acquisitions make and the Philippines. The Russian producer signed a non-binding term sheet for the Abastible the thirdlargest LPG company Essar Oil acquisition in July 2015 and in South America. Both Rosneft & Trafigura see Essar Oil ■■ Calgary-based Alvopetro Energy as gateway to growing Indian market. also agreed to supply 200,000 bo/d to the Vadinar refinery. is farming out 95% WI in its 7,561- The deal also further strengthens Rosneft’s ties with India, whose state-owned oil firms acre exploration block 107 onshore have spent more than $5.3 billion this year to acquire stakes in its Vankor and Taas-Yuryakh Brazil, which it won in a 2013 bid oil projects in Siberia (see sidebar). Rosneft’s board approved the Essar deal Oct. 13. round. Alvopetro received US$300,000 As for Trafigura, the deal confirms media reports dating back to June. The company cash up front and has close ties to Rosneft, handling much of its crude export. The relationship has helped will be carried on make Trafigura the world’s second-largest two wells to satisfy work commitments Close ties to Rosneft make Trafigura independent oil trader, with volumes for the initial exploratory phase, which world’s No. 2 independent oil trader. exceeding 4 MMbo/d. Trafigura and UCP expires March 1, 2017. After the work will each take a 24.5% stake in Essar Oil, which Trafigura CEO Jeremy Weir said “will is complete it can exchange its 5% WI create multiple synergies with our trading business” and provide “a platform to extend to a 5% GORR. If drilling is successful, our exposure to the growing domestic market in India.” it will also be entitled to a 5% GORR on The Essar Group says the sale will allow it to deleverage almost half of its INR880 an adjacent block owned by the partner. billion ($13 billion) debt and substantially reduce interest costs. Group chairman Shashi ■■ Canadian investment group Ruia said the sale will “help drive the next level of growth for our other businesses,” Samarium Tennessine signed a US$4.8 which include steel, power and ports. million deal to farm into London-listed Gulfsands Petroleum’s exploration acreage in Colombia’s onshore Putumayo India Seen as Second-Largest Driver of Liquids Demand by IEA Basin. Its energy and mining subsidiary Samarium Energy & Resources Long-term liquids demand forecast will earn 70% WI in the 115,000-acre (MMbbl/d) PUT-14 block by covering Gulfsands’ pro forma 30% share of up to $16.1 80 million in required exploration work up. Gulfsands also granted Samarium an 60 option to acquire its remaining 30% WI. Gulfsands owns one other Colombian contract area, the 127,000-acre LLA- 40 50 block in the Llanos Basin. Its other assets are in Morocco, Tunisia and Syria. 20 Increase deal 0 2000 2005 2010 2015 2020e 2025e 2030e 2035e flow & business opportunities. Other non-OECD China India OECD Subscribe to PLS! For available options, email [email protected] Source: BHP Billiton Oct. 5 Presentation via PLS docFinder www.plsx.com/finderr

Find more on the A&D marketplace at To learn more about PLS, call +1 713-650-1212 Volume 08, No. 16 11 A&D Middle East & North Africa FORMER Total signs Iran deal to lead gas project Continued From Pg 1 CENTRAL ASIA OPPORTUNITY Total is no stranger to South Pars, having led the development of Phases 2 and 3 Multiple Licences Covering 3,000km2. before exiting Iran in 2010 to comply with international sanctions. While some of the ONSHORE CENTRAL ASIA PP sanctions have been removed as a result of the nuclear agreement, Total will use its DRILL READY PROSPECTS Mesozoic & Cenozoic Stratigraphy. 250 own euro-denominated cash to finance its share of project costs in order to comply Existing 2D Seismic Data Available. BOED with remaining restrictions on business with Iran. In addition, the government will SEEKING JV PARTNER pay Total in gas condensate to bypass the Iranian financial system. Total CEO Patrick Existing Production: 250 BOED CALL Pouyanne has appointed a full-time official to ensure that all dealings with Comb. Prospective Rsrcs: 550MMBOE PLS FOR Iran comply with the sanctions. CONTACT AGENT FOR MORE INFO INFO Total will be paid in condensate to “This project fits with the PP 1191FO avoid sanctions, may revisit LNG export. group’s strategy of expanding its presence KAZAKHSTAN PROPERTY SALE in the Middle East, where the origins of the group lie, and growing its gas portfolio by 2-Blocks. 47-Total Wells. 12,455km2 adding low-unit-cost, long-plateau gas assets,” Pouyanne said, adding that its selection ATYRAU REGION PP WESTERN KAZAKSTAN by NIOC “is a recognition of both our technical expertise and the partnership the group Project Defined By 3D Seismic. has built with Iran over the years.” Depths Range: 800-1,500m. >2,300 South Pars 11 may also include the construction of an LNG facility to export some Post-Salt & Pre-Salt Leads & Prospects. BOPD of the produced gas. Total and NIOC had been in talks for such a project called Pars OPERATED & NonOperated WI For Sale. LNG—which would have been the country’s first—before the supermajor exited the Net Production: 2,380 BOPD Plus Water. Net Cash Flow: ~$1,000,000/Mn country in 2010. A press release from NIOC said that the companies may revisit the Est 3P Reserves: ~10.4 MMBOE LNG scheme. Meanwhile Total and CNPC will conduct exclusive negotiations with CONTACT SELLER FOR INFO NIOC to finalize the 20-year agreement and Total will launch engineering studies and PP 6219FO a call-for-tender process for construction contracts, which it expects to award in 2017. MIDDLE EAST New contract terms aim to attract Western oil companies— NIOC said the deal with Total will be structured as an Iranian Petroleum Contract—a TURKEY PROPERTY new deal framework the government hopes will attract $185 billion in foreign investment >9,000-Acres. 66-Producing Wells. PP ONSHORE TURKEY to its upstream and refining sectors. Iranian officials have wrangled over these new 53 D&M Approved PUD Drilling Locations. 2,750 contracts for months, seeking to strike a balance between the country’s traditional 20% WORKING INTEREST AVAILABLE BOPD resource nationalism and the need for foreign expertise to develop more complex Producing: 2,750 BOPD projects like South Pars 11. Although the US supermajors are unlikely to participate in CONTACT AGENT FOR MORE INFO these projects because of their government’s ongoing sanctions against Iran, a number PP 1043FO of European producers have expressed interest—mixed with trepidation over deal terms. NORTH AFRICA Details are still uncertain, but the new contracts are expected to allow foreign partners to book reserves from Iranian oil TUNISIA FARMOUT OPPORTUNITY and gas firms, unlike the old “buyback” New contracts to let foreign firms book reserves, unlike old ‘buybacks.’ 1-Producing Well. 35,583-Acres. (144 km2) deals that existed prior to sanctions. GHADAMES BASIN PP Foreign companies such as Total, Shell, Repsol and Statoil had disliked the terms of the MULTI-ZONE POTENTIAL Triassic, Silurian, Ordovician & Cambrian. FARMOUT buyback deals, which had short five-year terms and paid a lump sum rather than a share 40% OPERATED WI AVAILABLE of production, often generating only single-digit returns. Q1 2015 Average Production: 68 BOED Some improvements are already apparent from Total’s MOU announcement, P10 Recoverable Resources: 93 MMBO including the longer term and greater control of development. Still unclear is how CALL CONCESSION OWNER FOR TERMS PP 5156FO payments will be structured, which has been the most contentious issue as Iranian officials drafted the new contracts. International companies prefer to receive a share NORTH AFRICA of production or of proceeds from the domestic sale of production but hardliners say this is too close to ownership of resources, which is forbidden by Iran’s constitution. TUNISIA FARMOUT OPPORTUNITY Although the terms of each contract will be different, this first deal with Total 8-Wells. 33,606-Acres. (136 km2) will certainly set the tone, and other international producers will be watching the GHADAMES BASIN PP Silurian & Devonian Resource Play. negotiations closely as it takes shape over the next few months. Upside Potential In Triassic & Ordovician. 3D Seismic Data Available. GHADAMES 40% WORKING INTEREST AVAILABLE No Commissions For over 25 years, PLS has been the central access point for Est Recoverable Reserves: 777 MMBO buyers & sellers. List with PLS today! It works! CALL CONCESSION OWNER FOR TERMS Get Listed! For more information, email [email protected] PP 5091FO

For general inquiries, email [email protected] Access PLS’ archive for previous A&D news InternationalDeals 12 November 9, 2016

NORTHERN EUROPE SOUTH AMERICA EUROPE UK STRATEGIC ALTERNATIVES BRAZIL SHALLOW WATER ASSETS HUNGARY OPPORTUNITY 55-Onshore Licences. 9-Concessions. 2-Licences. 5,410 km2 PP UNITED KINGDOM & SCOTLAND PP SERGIPE & CEARA PP PANNONIAN BASIN WEALD, GAINSBOROUGH TROUGH- SHALLOW WATER ASSETS One Producing Field Discovered In 2008. FARMOUT -BOWLAND & MORAY FIRTH BASINS >2,500 Oil & Exploration Fields. FOR SEEKING JV PARTNER SEEKING STRATGEIC ALTERNATIVES BOED WORKING INTEREST FOR SALE SALE CONTACT EXPLORATION MANAGER 2015 Avg Net Production: 2,570 BOED Avg. 2015 Production: 13,000 BOED PP 1562FO Net 2P Reserves: 13.33 MMBOE CONTACT INVESTOR RELATIONS DEPT PP 1340CO PP 1102 CENTRAL ALBERTA UNITED KINGDOM COMPANY SALE SOUTHEAST ASIA ALBERTA STRATEGIC ALTERNATIVES Total Acreage 250 sq km. 79-Sections. EAST MIDLANDS BASIN CO MYANMAR PROPERTY GREATER RED EARTH PP Conventional & Unconventional Prospects. 1-Block. 11-Wells. Light Oil Opporuntity. 3D Shows Crest Seismic Amplitude. ONSHORE CENTRAL MYANMAR PP Primary Target: Slave Point Suggests Improved Reservoir Potential. Two Producing Fields. 115 Risked & Waterflood Locations ~1,300 100% OPERATED WI AVAILABLE ONSHORE 2D Seismic Data Available. ONSHORE Avg 79% WI AVAILABLE BOED Appraisal Well Drilled Q! 2016. SEEKING JV PARTNER Q2 2016 Production: 1,293 BOED Remaining 2P Reserves: ~700 MBO Producing: 35 BOPD Acreage Is 97% Liquids. Possible 3P Reserves: ~2.1 MMBO CONTACT ASSET MANAGER FOR INFO Est 2016 Net Op. Income: $783,333/Mn Favourable Fiscal Terms. PP 1735FO Proved Reserves: 5.3 MMBOE CORPORATE SALE OF ALL ASSETS NO P+P Reserves: 7.9 MMBOE CALL AGENT FOR ADDITIONAL INFO COMMISSIONS NO MYANMAR PROPERTY CONTACT AGENT FOR UPDATE COMMISSIONS CO 2017PP 1-Block. 14-Wells. PP 13274DV CENTRAL ONSHORE MYANMAR PP UNITED KINGDOM PROJECT One Producing Oilfield. CENTRAL ALBERTA ASSET SALE 1-Licence. 2D Seismic Data Available. 80 ~37,458-Net Acres. NORTHERN IRELAND RE CA Required For Data Room. BOPD MICHICHI & BANFF AREAS PP 18 BCF Gas Storage Project. SEEKING JV PARTNER Proven Light Oil Opportunity Mature Field Rehabilitation. ONSHORE Producing: 80 BOPD 71 Potential Locations Identified. SEEKING JV PARTNER FOR FARMOUT CONTACT ASSET MANAGER FOR INFO 3D Seismic & Geotechnical Data Available CONTACT LICENCE OWNER FOR INFO PP 1159FO Avg ~97% OPERATED WI AVAILABLE ~820 RE 6821FO Q3 2016 Production: ~820 BOED BOED SOUTHERN AFRICA Production Is 57% Liquids. OCEANIA/SOUTH PACIFIC Total P+P Reserves: 7,606 MBOE SOUTH AFRICA OPPORTUNITY Total P+P PV10: $72,200,000 STRATEGIC ALTERNATIVES PROCESS 1-Permit. 3-Producing Wells. 270km2. 100% Owned & Operated Gathering Facilities. 125,000-UK Net Acreage. 1-Australia Permit. BREDASDORP BASIN PP CONTACT AGENT FOR MORE INFO UNITED KINGDOM & AUSTRALIA CO 1 Exploratory Well, 5 Appraisal Wells. PP 13621DV WEALD & BONAPARTE BASINS Water Depth: 118m to 400m OFFSHORE 1-UK Exploration Well. Upper Jurassic. FOR 2D & 3D Seismic Data Available. NONCORE ALBERTA LAND SALE Australia Water Depth 30-500 Ft. SALE 10% EQUITY IS AVAILABLE 50-Sections. 1-Producing Hz Well. 100% & 50% WORKING INTEREST SEEKING JV PARTNER FOR FARMOUT KAYBOB. T62-65. PP Australia Permit Resource: 1-3 TCF DEALS Resource Potential: 748 BCF FOR Duvernay Rights. STRATEGIC ALTERNATIVES PROCESS SALE CONTACT PERMIT OWNER FOR INFO Swap & Farmout Proposals Considered ~50 CO 5817 PP 1662FO 100% OPERATED WI FOR SALE BOED Current Production: 50 BOED SOUTH AMERICA EUROPE CONTACT AGENT FOR UPDATES PP 11001 ARGENTINA OPPORTUNITY GERMANY COMPANY SALE 1-Block. 100,000-Acres. 2,413,300-Acres. CO EAST ALBERTA NEUQUEN BASIN PP NORTHERN GERMANY Existing Conventional Oil Production. 7-Production & 6-Exploration Licences. FOR VERMILION AREA. T50. Unconventional Upside Potential. ONSHORE WORKING INTEREST FOR SALE SALE 33-Active Wells. 6-SWD. 1-Suspended. 3D, Geophysical & Geological Data Avail. DISSOLUTION PROCESS TO BEGIN Sparky Formation. PP SEEKING JV PARTNER FOR FARMOUT CO 1560 Additional Upside P&NG TBO Mannville. Dec 2015 10% WI Prod: 140 BOED Production To Date >95% Oil. 50 2P Reserves: 536 MMBOE 66.66% OPERATED WI AVAILABLE BOED Contingent Resources: 26 MMBOE NO COMMISSION. Net Production: ~50 BOED CONTACT BLOCK OWNER FOR INFO LIST TODAY! Total Cumm’d Production: ~3.46 MMBOE PP 6199FO Asset Has LLR of ~0.9. To get started, email [email protected] PP 11120DV

Find more on the A&D marketplace at To learn more about PLS, call +1 713-650-1212 Volume 08, No. 16 13 A&D US & Canada Shell pares down Canadian shale portfolio in $1 billion deal Maverick sells Texas oil field In the biggest divestment announced since the US$83 billion acquisition of BG to fund Eagle Ford drilling Group closed in February, Shell agreed to sell non-core producing properties and undeveloped acreage in Western Canada to Tourmaline Oil for US$1.037 billion To enhance liquidity for development (C$1.369 billion). The assets in Alberta’s Deep Basin and British Columbia’s Montney of its new position in South Texas’ shale cover 206,000 net acres (309,000 gross) with net production of 149.1 Eagle Ford shale, Australia-listed MMcfe/d (85% WI) and 2P reserves of 2.84 Tcfe. Maverick Drilling & The deal also includes Exploration struck three operated gas plants with combined Retains 218,000 net acres in Montney two deals to sell its operated legacy shale, 430,000 net acres in Duvernay. processing capacity of 200-225 MMcf/d properties at the Blue Ridge oil field in and 719 km of pipelines. Tourmaline will pay US$758 million cash and issue shares southeast Texas for US$9.1 million cash. valued at US$279 million to close the deal by year’s end, pending regulatory approval. Maverick has received a down payment Upstream director Andy Brown said Shell is “strengthening our shales business and and expects to close the sale by the end of creating shareholder value by selling assets that do not fit our near-term development November. It owns nearly 100% WI in the plans.” The supermajor retains a sizeable shale position in Canada with 430,000 net 700-acre conventional property, which acres targeting Duvernay liquids in Alberta and 218,000 net acres targeting Montney has 500 bo/d of gross production. The gas in northeast British Columbia. company recognized a US$33.1 million In the US, it has material shale positions in the Permian and Appalachian Basins impairment on rigs and other equipment and Louisiana’s Haynesville shale. at Blue Ridge for 1H16. Upstream boss says Shell has 16 assets It is also active in Argentina’s Vaca Maverick made an initial $4.1 million worth more than $500MM on market. Muerta shale. Excluding the properties Eagle Ford acquisition in January and is being sold to Tourmaline, these retained shale assets have combined output of 1.5 Bcfe/d. aiming to capture 11,000-13,000 acres by Shell whittled down its shale portfolio in 2014, exiting positions in the Eagle year’s end. The company is also finalizing Ford, Mississippi Lime, Niobrara and Haynesville plays; the supermajor’s current an initial drilling plan that it plans to Haynesville assets were acquired in the BG deal. Last year CEO Ben van Beurden commence in Q4 and evaluating several was considering exiting the unconventional E&P business altogether. But in a recent potential partners. turnaround, the company has committed to making its North American and Argentine Oceania shale assets a major growth driver after 2020. It has executed numerous Permian BP buys into potential 15 Tcf acreage swaps to high-grade its leasehold and facilitate multi-well pad drilling with longer laterals and is planning bolt-on acquisitions from shale drillers still struggling Western Australian prospect from the downturn. Cue Energy is farming out an Meanwhile, Shell is planning further large-scale divestments en route to a US$30 operated 80% WI in its recently renewed billion goal for 2016-2018, including $6-8 billion this year. North West Shelf permit WA-409-P in Western Australia’s Hibiscus buys Shell’s Malaysian oil fields for $25 million— offshore Carnarvon Basin Shell struck a deal to sell four of its producing oil fields offshore Malaysia’s to BP. The supermajor Sabah state and a crude oil terminal to local independent Hibiscus Petroleum. Shell will fully fund WA-409-P’s required work operates the assets with 50% WI in partnership with Petronas. Shell is running an EOR program for the next three years and help program for the St. Joseph, South Furious, SF30 and Barton oil fields, which yielded find an operating partner for adjacent 9,000 bo/d last year. Additional development activities have been identified within the permit WA-359-P. It also has an option contract area. The PSC provides production rights until 2040 and includes pipeline through next May to acquire 42.5% WI in infrastructure and the Labuan oil terminal. WA-359-P by funding half the cost of an Shell expects to close the deal in 2017, leaving it with stakes ranging 20-85% in 17 PSCs offshore exploration well slated for 1H18. CanadianaCquirer Serving the marketplace with news, analysis and business opportunities Talisman to be acquired by Spain’s Repsol for $15 billion Canadian upstream M&A Sabah and Sawarak with multiple producing fields The two permits are straddled by Marking the first multi-billion-dollar foreign acquisition of a Canadian oil and gas activity quadruples in 2014 company since 2012, Spain’s Repsol agreed to buy Talisman Energy for $15.2 billion Repsol’s $15.2 billion Talisman (US$13.0 billion). The price consists of $9.33/share in cash plus Talisman’s $5.4 billion buy caps a busy 2014 in the Canadian debt. The companies were able to strike the deal after months of on-again, off- oilpatch with $46.0 billion in upstream again negotiations largely because falling oil prices cut the value of Talisman’s deals—roughly quadrupling 2013’s $11.8 and exploration prospects. The supermajor had the Ironbark prospect, which targets 15 stock in half in less than five months. Nonetheless this is the largest deal seen billion. Of the CanadianAcquirerin Canada since China’s CNOOC paid Octoberprevious six years, 31 Biggest deal in Canada since CNOOC $18.1 billion for Nexen in 2012. bought Nexen for $18 billion in 2012. only 2012 had a higher tally at $54.7 That year saw two other Canadian billion and that included CNOOC’s producers bought up by foreign firms: Progress Energy Resources by Malaysia’s $18.1 billion acquisition of Nexen. By 2015 net production of 63,000 boe/d from Malaysia. Tcf of prospective gas in the Mungaroo state-owned Petronas for $6.0 billion and Celtic Exploration by ExxonMobil for $3.1 deal count, activity declined 15% YOY billion. Following the CNOOC deal, Ottawa enacted new limits on oil sands ownership to 269 transactions in 2014 from 319 in by overseas state-owned companies. These rules have had a chilling effect on foreign Shell assets provide 2,147Driven by dividend-plus-growth firms, investment over the past two years but do not affect Talisman, whose assets in Canada return of foreign buyers & royalty appetite. target conventional oil and gas or shale rather than oil sands. Continues On Pg 12 For Hibiscus, the acquisition from Shell will be its formation. If successful, the prospect is Woodside enters shale patch with Kitimat buy from Apache 2013 although deals with disclosed values Executing on a promise made to investors back in July, Apache agreed to sell actually rose slightly to 213 from 191. locations for Tourmaline.This Canadian M&A analysis includes its interests in the Kitimat gas venture in British Columbia and Wheatstone project off Australia to Woodside Petroleum for $4.34 billion (US$3.75 billion). While the Repsol/Talisman because Talisman is a Australian project is a natural fit for Woodside’s offshore and LNG operational expertise, flagship Calgary company with a large second producing property in Malaysia. well positioned to feed BP’s North West domestic asset base, despite the fact that Kitimat is uncharted territory—its first Acquires 320,000 net acres with 15 Tcf it operates globally and produces more venture into onshore . of 2C gas in Horn River & Liard Basins. Woodside is getting 50% oil and gas from the US and Indonesia WI in the proposed ~1.3 Bcfd Kitimat LNG plant (10 million tonnes per than it does at home. However, even annum), 460-km Pacific Trail Pipeline and 322,000 net acres (644,000 gross) of shale excluding this transaction Canada Shelf LNG facility (16.7% WI). The deal gas assets in British Columbia’s Liard and Horn racked up $30.9 billion in 2014 deals, up River Basins. The acreage will provide an estimated more than 160% YOY. Cont'd On Pg 11 15 Tcf of net 2C resources. The entire project is InternationalDeals Dec. 18 owned in a JV with Chevron, which will operate the FEATURED DEALS pipeline and LNG plant while Woodside takes over US$3.75 billion deal also includes was announced two days after BP said it the shale acreage from Apache. Continues On Pg 4 Wheatstone in Australia. EAST ALBERTA PROPERTY 10-Wells. 2,048-Gross/Net Acres. WAINWRIGHT FIELD. T45. Veresen & KKR nab Montney midstream for $600 million EDGERTON VILLAGE PP Encana and Mitsubishi are selling Montney midstream assets in the Dawson area Heavy Oil Prospect With --- of northeast British Columbia for $600 million to a new 50:50 partnership formed by -- Shallow Gas Production. ~35 was dropping its A$1.4 billion offshore 100% OPERATED WI AVAILABLE BOED Veresen Inc. and private equity giant KKR. Encana will receive $412 million for interests Monthly Cash Flow: ~$17,000/Month owned both directly and through its 60% stake in Cutbank Ridge Partnership (CRP), CONTACT SELLER FOR MORE INFO its JV with Mitsubishi. PP 11478 Encana takes in $412 million from Veresen Inc.-KKR sale withIncrease Mitsubishi getting the rest. SASKATCHEWAN PROPERTIESdeal flow & business opportunities. venture Veresen Midstream LP will exploration program across the continent acquire 500 km of gas gathering pipelines and 675 MMcfd of compression capacity. 9-Oil Producers; 1-SWD; >10-PUD MANOR AREA. IMMEDIATE UPSIDE PP The deal also includes the Saturn compression station currently under construction, Manor Tilston Oil Pool. which will add 200 MMcfd of compression capacity when completed. The Frobisher & Midale Oil Wells. infrastructure gathers gas production from Encana and CRP and delivers it to various 100% OPERATED WI FOR SALE ~502 processing plants including the nearby Hythe/Steeprock facilities, which Veresen Inc. Expected Future Production: 600 BOPD BOPD SubscribeManor Proved to Reserves: PLS!445 MBOE For available options, email [email protected] in the Great Australian Bight. is contributing to Veresen Midstream. Manor Net Proved PV10: $23,443,000 Encana will continue to operate the assets on a contract basis, while Veresen CONTACT AGENT FOR STATUS Midstream will provide gathering and compression services to Encana and CRP under PP 13109DV a 30-year fee-for-service arrangement in a 240,000-acre AMI. Continues On Pg 6 All Standard Disclaimers & Seller Rights Apply. For general inquiries, email [email protected] Access PLS’ archive for previous A&D news “Opportunity is a reflection of information.”

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Information. Transactions. Advisory. Volume 08, No. 16 15 A&D People & Companies ■■ Australia-listed Mediterranean SOUTH TEXAS PERMIAN / WEST TEXAS explorer ADX Energy appointed DEWITT & KARNES CO., TX ROYALTY MIDLAND BASIN SALE PACKAGE independent technical consultant Rob 97-Producing Wells. 90-Producing Wells. 10,487-Net Acres. Brown to its board. Brown brings EAGLE FORD SHALE RR DAWSON, MARTIN & ANDREWS CO., TX PP 24 years of project experience on 85-Horizontal Wells. Middle & Lower Spraberry, Wolfcamp ~0.07-8.08% ROYALTY INTEREST -- A & B Shale Targets ~1,240 six continents to the role, having Gross Prod: 11,782 BOPD & 20,874 MCFD ROYALTY 745 Drilling Locations Identified. BOED worked on appraisal, development 12-Mn Avg Net Cash Flow: $503,335/Mn Avg 75% OPERATED WI; 75% NRI and production operations for Amoco, AGENT WANTS OFFERS NOV 15, 2016 October 2016 Net Production: 1,239 BOED RR 1223PP Total EUR: 2,755 MBOE , Lasmo, Cairn Energy CALL AGENT WANTS OFFERS DEC 8, 2016 and, until March 2015, Tullow Oil. His PLS FOR DIMMIT COUNTY, TX PROPERTY PP 1782DV INFO last role at Tullow was as Ghana projects 11-Total Wells. 440-Gross/Net Acres (HBP). and engineering manager. Brown is a BIG WELLS FIELD PP REEVES & PECOS CO., TX ASSETS senior adjunct lecturer at Edith Cowan Rights Restricted To San Miguel & 10-Producing Horizontal Wells. University in Western Australia. -- Lo East Zones. PERMIAN BASIN PP Potential Upside. GULF HORIZONTAL WOLFCAMP SHALE ■■ Toronto-based Dundee Energy 100% OPERATED WI; 75% NRI COAST 6-Operated Wells. 4-NonOperated Wells. announced that CFO David Bhumgara will 6-Mn Avg Gross Production: 83 BOPD OPERATED & NonOperated WI WOLFCAMP resign effective Nov. 15 after more than 12-Mn Avg Net Cash Flow: $34,852/Month 75% Working Interest; 58.5% NRI seven years, with VP Lucie Presot stepping AGENT WANTS OFFERS NOV 10, 2016 Gross Prod: 371 BOPD & 2,152 MCFD into the position on an interim basis. Presot PP 1399DV 12-Mn Avg Net Income: $128,253/Month AGENT WANTS OFFERS NOV 9, 2016 has more than 25 years’ financial services SOUTH TEXAS ROYALTY PACKAGE PP 2265 experience, with the last 18 years in senior 81-Producing Horizontal Wells. and executive roles at Dundee Corp. and DEWITT, GONZALES & KARNES COS. RR OKLAHOMA its subsidiaries. Dundee owns producing EAGLE FORD SHALE properties in Ontario and exploration ~0.5-2.8% ROYALTY INTEREST EAGLE GRADY CO., OK ROAYLTY ASSETS Gross Prod: 5,875 BOPD & 19,172 MCFD FORD assets offshore Tunisia. ~10-Net Mineral Acres. 9-Mn Avg Net Cash Flow: $121,490/Mn MIDCONTINENT RR ■■ Hong Kong-listed Sunshine AGENT WANTS OFFERS NOV 15, 2016 Producing From Woodford & Hoxbar Oilsands appointed President and COO Qi RR 1263PP ROYLATY INTEREST FOR SALE ROYALTY Jiang as chief technology officer. Among Operators: Continental & Unit Petroleum other responsibilities, Jiang will work on PERMIAN / WEST TEXAS 3-Mn Avg Cash Flow: $342/Month CONTACT SELLER FOR MORE INFO the implementation of Nobao Energy DELAWARE BASIN SALE PACKAGE RR 17413PP Holding’s heat exchange technology at 5-Producing Wells. 20,462-Net Acres. Sunshine’s oil sands properties in Canada. REEVES & WARD COUNTY, TEXAS PP COLORADO Sunshine gained access to the technology Avalon, Upper Wolfcamp A & B Targets under a non-binding MOU signed in Lower Wolfcamp B & 2nd Bone Spring ~2,175 DJ BASIN ASSETS FOR SALE September to acquire a 51% stake in 760 Drilling Locations Identified. BOED 428-Total Wells. 67,496-Net Acres. Avg 83% OPERATED WI; 75% NRI LARAMIE & WELD CO., CO PP Nobao. It moved CFO Qiping Men to the October 2016 Net Production: 2,176 BOED DEALS Niobrara, Codell, D & J Sands Production president and COO positions and hired Total EUR: 2,061 MBOE (Wolfcamp A) FOR 96% Of Leases Are Held By Production. 1,200 Gloria Pui Yun Ho to replace Men as CFO. Total EUR: 2,034 MBOE (Wolfcamp B) SALE >2,000 Gross Undeveloped Locations. BOED Ho joins from a Chinese asset management AGENT WANTS OFFERS DEC 8, 2016 Avg 74% Working Interest; Avg 80% NRI PP 1781DV firm where she served as CEO. Current Net Prod: 1,200 BOED (48% Oil) DEALS PDP PV10: ~$42,000,0000 FOR ■■ Calgary-based E&P firm Vermilion PERMIAN / WEST TEXAS AGENT WANTS OFFERS NOV 16, 2016 SALE Energy appointed former Pembina PP 2702DV Pipeline CEO Robert Michaleski to MIDLAND BASIN its board effective Oct. 3. Before his 11-Producing Wells. ~9,250-Net Acres. MULTISTATE ROCKIES retirement in 2013, Michaleski spent more MIDLAND, MARTIN, HOWARD & PP GLASSCOCK CO., TX COLORADO & UTAH ORRI PACKAGE than 30 years at Pembina, overseeing its Middle & Lower Spraberry & Wolfcamp 190+ Wells. 68,334-Net Leasehold Acres. transformation from an Alberta-focused oil A, B, C & D Intervals ~1,700 PARADOX BASIN RR pipeline company to a leading integrated 805 Total Future Drilling Locations. BOED Potential PUD Development. North American oil and gas transport and Current Net Prod: ~1,700 BOED (71% Oil) 0.0439-7.5% ORRI AVAILABLE ORRI midstream services company. Vermilion has Offset IP30 Rates: >1,000 BOED 50-100% OPERATED WI; ~24-80% NRI Proj’d 2017 Net Cash Flow: $1,208,333/Mn Gross Prod: 182 BOPD & 13,311 MCFD exploration, development and producing PDP PV10: ~$60,000,000 Operates ~262 Miles Of Gathering Pipelines. assets in the US, Canada, Australia, France, CONTACT AGENT FOR MORE INFO AGENT WANTS OFFERS NOV 17, 2016 Germany, Ireland and the Netherlands. PP 2380DV RR 1963PP For general inquiries, email [email protected] Access PLS’ archive for previous A&D news InternationalDeals 16 November 9, 2016

SOUTHERN ALBERTA MULTIPLE AREAS MULTIPLE AREAS SOUTHEAST ALBERTA ASSET SALE CANADA NONCORE ASSET SALE CANADA SALE PACKAGE 7-Total Wells. 640-Acres. ~12 Oil & Natural Gas Properties. Multiple Producers. 3-Core Areas. CRESSFORD AREA. PP ALBERTA & BRITISH COLUMBIA PP ALBERTA, SASKATCHEWAN & PP Producing From Mannville Pool Aden/Lait, Manyberries, Brant, Majorville- BRITISH COLUMBIA Rights From Surface To Base Of Mannville -Cessford, Crossfield, Carstairs, Warburg- 300+ Drilling Locations Identified. 6 UnBooked Drilling Locations. MANNVILLE --Caroline & Boundary Lake Areas. Varying OPERATED & NonOp WI ~1,650 All Wells Flow-Lined To Proration Battery ROYALTY, UNIT & NonOp WI FOR SALE >180 Avg Net Production: 1,646 BOED BOED 100% OPERATED WI AVAILABLE Comb. Net Production: 186 BOED BOED Feb 2014-Jan 2015 Net Income: $428,458/Mn Current Production: 20 BOPD & 80 MCFD Estimated PV10 Value: $5,400,000 Total Proven Reserves: 6.6 MMBOE PDP Reserves: 107 MBO & 225 MMCF Total Proved Reserves: 442 MBOE PP 13283DV CALL CALL PDP PV10: $2,814,000 Total Proved Plus Probable: 592 MBOE PLS FOR PLS FOR CONTACT AGENT FOR STATUS CONTACT AGENT FOR MORE INFO INFO INFO SOUTH LOUISIANA PP 13272DV PP 11171RR CALCASIEU PH., LA PROPERTY MULTIPLE ALBERTA CANADA NONCORE ASSETS SALE 14-Wells. 735-Gross/Net Acres. 132,910-Net Acres. GILLIS-ENGLISH BAYOU UNIT PP CANADA OPPORTUNITY DEEP BASIN, PEACE RIVER ARCH & PP OLIGEOCENE FRIO PLAY Multiple Producing Properties. NORTHEAST BRITISH COLUMBIA Hackberry Frio 1-4 Sands At 9,800’-10,000’ VARIOUS AREAS OF ALBERTA PP Proven Formations: Cretaceous, Jurassic 3D Seismic & Subsurface Geology Data Glauconitic Sandstone, Edmonton Sand- & Triassic Zones 1,715 100% OPERATED WI; 81.35% NRI ~120 -Belly River, Horseshoe Canyon And-- ~208 Net Sections Of Land BOED Net Production: 45 BOPD & 450 MCFD BOED --Other Various Formations. 1,885 Avg ~46% WI AVAILABLE Gross Production: 60 BOPD & 600 MCFD WI FOR SALE OR FOR FARMOUT BOED Current Prod: 1,715 BOED (85% Gas) Monthly Cash Flow: ~$100,000+/Month Production: 1,885 BOED Total Proved Reserves: 3.6 MMBOE Net Well Rsrvs: 178 MMBO & 1,753 MMCF Total PV10 Value: $53,148,000 CONTACT AGENT FOR UPDATE Project Rsrvs: 1,396 MBO & 12,511 MMCF Total Proved Reserves: 11,025 MBOE PP 13381 Total Net PV10: $32,395,3850 BID ARE DUE NOVEMBER 29, 2016 CONTACT SELLER FOR INFO NO COMMISSIONS PP 11119FO CANADA RECEIVERSHIP PROCESS PP 2716DV 2-Key Areas. CANADA STRATEGIC ALTERNATIVES ALBERTA & SASKACHEWAN PP ST. HELENA PH., LA PROPERTY 9-Facilities. PROVOST & LLYODMINSTER AREAS 9-Wells. 2-SWD. 11-Total Wells. MULTIPLE AREAS ACROSS ALBERTA CO Medium & Heavy Oil Positions BEAVER DAM CREEK FIELD PP Montney & Deep Basin Facilities 750-1,000 HZ Drilling Locations Identified. 3-Producing Wells. 6-ShutIn Wells. 10th Facility To Be Commissioned End 2016. ACQUIRE, RESTRUCTURE OR RECAP ~12,700 1-SWD. 1-Temporarily Abandoned SWD. Potential For Facility Expansion. OFS Q2 2016 Avg Production: 12,728 BOED BOED Potential Upside. GULF Assets Have Long Expected Lives. Net Operating Cash Flow: ~$4,916,667/Mn ~89-100% OPERATED WI; ~67-75% NRI COAST OWNERSHIP & OPERATIONS Proved Reserves: 32.5 MMBOE 6-Mn Avg Gross Production: 134 BOPD 12-Mn Operating Revenue: ~$646,916/Mn Well Costs: $620,000 - $920,000 12-Mn Avg Net Cash Flow: $53,516/Month CONTACT AGENT FOR MORE INFO AGENT WANTS OFFERS NOV 17, 2016 AGENT WANTS OFFERS NOV 10, 2016 CO 13151SV PP 13130DV PP 1398DV MULTIPLE AREAS MULTIPLE AREAS SOUTH TEXAS CANADA CORPORATE DIVESTITURE CANADA RECEIVERSHIP SALE BEE CO., TX SALE PACKAGE 3-Key Areas. ~48,770-Net Acres. Multiple Producing Properties.. 37-Total Wells. 4,230-Gross Acres. ALBERTA & SASKATCHEWAN CO VARIOUS AREAS ACROSS ---- PP HEARD RANCH FIELD PP WILSON CREEK, BUTTE & WEYBURN ALBERTA & SASKATCHEWAN 25-Active Wells. 1-SWD. 76-Total Sections. ~1,000 Peace River Arch Position. Producing From Multiple Stacked Frio Sands 48 Additional Locations Identified. BOED Belly River, Edmonton Sand, Lloydminster- 14 Behind Pipe Opportunities. FRIO HIGH OPERATED WI AVAILABLE --Boundry Lake & Various Formations. ~76-89% OPERATED WI; ~56-66% NRI Current Production: ~1,066 BOED OPERATED, NonOp & ROYALTY WI 1,329 Dec 2016 Proj’d Net Prod: 2 BOPD & July 2016 Net Production: 1,329 BOED BOED 1,500 MCFD Production Is 37% Oil. DEALS Net Operating Income July 16’: $354,000 FOR PV10 Est Value: $18,800,000 Net Reserves: 3.1 BCFE Total Proved Reserves: 3.8 MBOE SALE Total Proved Plus Reserves: 3,261 MBOE Behind Pipe Net Resveres: 2.1 BCFE Total Proved PV10: $39,200,000 BIDS ARE DUE NOVEMBER 17, 2016 AGENT WANTS OFFERS NOV 16, 2016 AGENT WANTS OFFERS NOV 9, 2016 PP 11122RR PP 1443DV CO 13451PP

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Find more on the A&D marketplace at To learn more about PLS, call +1 713-650-1212 Volume 00, No. 00 17 A&D Oilfield Services GE to merge oil and gas unit with Baker Hughes NOV buys Norway’s Fjords Months after the collapse of its proposed $38 billion acquisition by rival Processing for $145MM , Baker Hughes has agreed to merge with General Electric’s oil and gas division in a complex transaction valued at $25 billion. Baker shareholders will Norwegian oilfield service investment receive a one-time cash dividend of $17.50/share and a 37.5% stake in the combined company Akastor agreed to sell portfolio company, which will be 62.5% owned by GE and traded company Fjords Processing to National on the New York Stock Exchange. Oilwell Varco for NOK1.2 billion GE entered the industry in 1994 with the purchase of Italian (US$145 million). Oslo-based Fjords is equipment maker Nuovo Pignone from ENI. Over the past decade, GE Oil & Gas a leading global supplier of oil and gas has been one of the most acquisitive players in the service sector with purchases separation and treatment technology, exceeding $16 billion. offering complete wellstream processing Notable acquisitions include onshore and subsea drilling equipment maker systems for both onshore and offshore Vetco Gray for $1.9 billion in 2007, energy infrastructure firm Dresser Inc. for fields. The company has 545 employees $3 billion in 2010 and flexible riser and across 17 countries and generated ‘Fullstream’ portfolio to provide edge pipeline supplier Wellstream Holdings EBITDA of NOK104 million ($12.4 in bids for international project. for $1.2 billion the same year. million) in 2015 on operating revenue of It also acquired French power conversion and automation firm Converteam NOK1.9 billion ($226 million). for $3.2 billion and US specialist Lufkin Industries for $3.3 billion in “The production and process solutions 2011 and 2013, respectively. With these deals, GE has quietly grown into a leading that our combined businesses offer will equipment supplier to the entire oil and enable operators to continue to meet the gas value chain. GE has built a leading oil & gas tech increasing technical challenges our industry business via $16B-plus in acquisitions. By adding Baker’s full range of faces while reducing their marginal cost per oilfield service capabilities, the two companies plan to create the first “fullstream” barrel,” NOV CEO Clay Williams said. The service company. They hope this distinction will give them an advantage in bidding acquisition complements NOV’s process for large, complex deepwater and international projects. and flow technology unit. “For example, Africa subcontinental onshore is a prolific but remote and landlocked project. The development of the resource would require not only E&P, but also significant & Nabors form development of midstream and inland refinery,” GE Oil & Gas CEO Lorenzo Simonelli 50:50 JV for onshore rigs said on a conference call. “Additionally, there will be difficulty in concentrating thousands Nabors is forming a 50:50 JV with of workers for construction of facilities in remote areas. Our combined platform has the Saudi Aramco to own and operate onshore complementary portfolio to address a greater scope for the project and provide solutions drilling rigs to develop Saudi fields. Both throughout the value chain, enabling a Post-merger company active in 120- companies will contribute rigs to the JV plus countries with $24 billion in revenue. seamless integration and understanding in the initial years of operation along with between the project phases.” capital commitments for the building of The “new” Baker Hughes will also be able to tap other GE businesses for future rigs in Saudi Arabia. Closing and technologies that can be applied in the oilpatch such as imaging, sensors, batteries, the commencement of JV operations are materials science and big data. In fact, the talks that led to the merger were initially expected in 2Q17. about Baker integrating GE’s Predix big data into field operations. Because there is little overlap between their portfolios, GE and Baker do not “Nabors has had a decades- expect their merger to face the same antitrust challenges that sank the Halliburton/ long and a mutually beneficial Baker deal, although they say they are willing to relationship with Saudi Aramco,” Nabors sell assets in order to satisfy regulators and smooth January 2, 2015 • Volume 04, No. 16 OilfieldServiceS CEO Tony Petrello said. He added that the Serving the marketplace with news, analysis and business opportunities the way for an anticipated closing by mid-2017. Assessing the service sector damage spies other deals Prognosticators parse impact of crude plunge on services after withdrawing CGG offer With crude now down about 50% from its summer highs and E&Ps slashing capex Technip has formally withdrawn JV opens “a new chapter in the operator- left and right, some sense of the impact on the service sector is starting to come to light. efforts to take out fellow French seismic Fortunately, with ongoing projects unlikely to have their plugs pulled, there is still leader CGG following the rebuffing of As pointed out by multiple analysts, the business probably a month or two of “full steam ahead, ” but some time next quarter activity an unsolicited $1.83 billion cash bid decreases shouldNext begin to be more heavily OilfieldServices felt, and it is worthwhile to examine who for the company by is best and worst positioned, how large the damage is likely to be, and how long a Technip. The offshore trough could last. E&C leader said that PacWest sees frac demand & pricing contractor relationship” and will increase As for fracking, following CGG’s refusal, Technip down 8% next year. segment is likely to face the toughest scrutiny in PacWest Consulting recently did a deep proposed a number of alternate options dive conference call on its expectations, and the firm anticipates an 8% demand (as to a tender offer, but said these efforts Drillmeasured by hp)deeper and price cut next year in USinto land. The drop representsservice a 12% were similarly sector unfruitful. In a separate decline in the number of horizontal wells fracked, offset somewhat by the continued CGG deal dead in water; company safety, efficiency, well productivity shift toward more sand, stage-count and HP-intensive fracs. That said, frac stages are cited opportunism by Technip. artificial lift, where Baker is the industry’s second- still expected to decrease 6%. Continues On Pg 8 GE guides down for oilpatch efforts in pivotal 2015 statement, CGG said that none of the deals & contracts. proposed options created value for the General Electric is positioning to weather the downcycle with stoicism while company, and The Financial Times picking up new business, and businesses, along the way. GE is calling 2015 a “pivot” reported that board members viewed the and cost savings. year, as it digests the massive ~$15 billion acquisition of Alstom’s power assets largest player after Schlumberger. offer as opportunistic in light of lower oil (closure in Q2), raises proceeds from non-industrial, non-core asset sales and cuts prices. Regardless, CGG asserted it was costs to mitigate the impact of cheaper oil. GE anticipates industrial profits in position to weather current difficult up 10% or more next year, but Oil & Gas segment sales & profits market conditions. Continues On Pg 12 as for oil and gas specifically, projected down 0-5% next year. Separately, SaudiAramco denied a while the division saw $4.9 billion in FEATURED DEALS orders in Q3, it is already seeing headwinds. GE cut its growth outlook from high single- to low double-digit growth down to mid-single digit expectations. CEO Jeff Immelt called crude pricing issues a short term industry challenge. The company now TUSCALOOSA DRILLING PROJECT ~20,000-Contiguous Gross Acres. hopes to keep oil and gas profits and revenues fairly flat through cost controls, although MAJORITY IN PIKE CO., MISSISSIPPI acknowledging that they very well may slide as much as 5%, particularly under capex TUSCALOOSA MARINE SHALE Reuters story that stated it was bidding freeze scenarios. Its exposure to the space is more geared toward production and less Also Tangipahoa & St. Helena Ph., LA DV than peers on more volatile onshore unconventionals. Continues On Pg 6 169-Drilling Locations. 80-Acre Spacing. SEEKING JV PARTNERSHIP; 75% NRI TMS 2-D Seismic Available PLAY Canadian service firms give signs of things to come Area EURs: 600-800 MBO/Well In an early indicator of where service capex budgets are headed in the Lower 48 as Leases Expiring in 2018-2019 for LyondellBasell’s 263,800-bo/d they are announced in coming months, Canadian service firms have been announcing DV 3395L drastically reduced 2015 spending plans and newbuild construction halts in anticipation ALASKA ROYALTY ACREAGE of lower producer cash flows. Many of these firms also have US operations, for 15,930-Gross/Net Acres. PLS provides clients with the research,even better visibility marketing on things to come. Number one Canadian driller Precision UPPER COOK INLET BASIN Drilling cut next year’s budget KITCHEN LIGHTS UNIT (N. BLOCK) Precision cut its 2015 budget 44% to RR 44% to C$493 million from 2014’s C$885 Miocene Tyonek & Oligocene Hemlock refinery in Houston. Reuters named Information. C$493 million from 2014’s C$885 million. million and idled its new rig construction Deep Sands: 11,000-16,500 Ft. Multi Pay Intervals Present program “until we see an improved commodity price environment and rising customer & consulting services they need to better manage their~4.45% ORRI In Leases. newbuild demand,” said CEO Kevin Neveu. The 2014 plan is also being cut slightly Offset Well Tested Over 5,000 BOPD ORRI from a prior C$908 million. Precision will complete 16 currently under construction rigs, -- From Tyonek Deep Channel Sands. 15 headed for the US and one for Kuwait, but is planning no further deliveries next year. Estimated Project Reserves: 89 MMBO Aramco as a bidder along with Suncor, 3rd Party Reserve Report Available. Transactions. Precision is trimming excess fat for leaner times as well, announcing it has sold Continued Development by Furie. portfolio & facilitate profitable transactions.its US coiled tubing assets for C$44 million cash to an undisclosed buyer. As of YE13, CALL SELLER FOR DETAILS Precision’s C/T fleet consisted of eight units in the Marcellus and Bakken shales, and RR 5100 Peters & Co. believes the price tag represented replacement cost. Continues On Pg 10 Valero Energy and in Advisory. For more information on PLS services, please call +1 713-650-1212All Standard Disclaimers & Seller Rights Apply. September, citing unnamed sources. For general inquiries, email [email protected] Access PLS’ archive for previous A&D news Bringing transparency and clarity to an opaque marketplace.

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