March 23, 2017 • Volume 07, No. 03 OilfieldServices Serving the marketplace with news, analysis and business opportunities

Wood Group lands Amec Foster Wheeler for $2.7 billion Trican buys Canadian peer Wood Group will acquire Amec Foster Wheeler in a $2.7 billion all-stock Canyon for $476 million offer, connecting two Scottish companies in the acquisition wave that has swept Trican Well Service will acquire the oilfield services industry. Amec Foster Wheeler shareholders will receive 0.75 Canyon Services Group in a C$637 new Wood Group shares for each share of Amec Foster Wheeler, million ($476 million) all-stock deal to giving them 44% of the create a premier Deal trades 0.75 of a Wood Group combined company, and Western Canadian share for one Amec Foster Wheeler share. valuing Wood Group at £5.64 for each fracker with 675,000 hydraulic horsepower. of 394,483,515 fully diluted shares. Wood Group is assuming net debt of $1.241 The combined company’s C$1.4 billion billion, making the total deal value $3.946 billion. The combined company said it market capitalization would be one of the has located cost synergies that will save £110 million ($134 million) a year following largest in Canadian oilfield services. one-off costs for the first months to realize the synergies. Both companies’ boards of directors have unanimously endorsed the deal, which is expected to result in £190 Stock swap represents 32% premium million in one-off costs. for Canyon shareholders. In 2014, UK upstream E&C Amec acquired US E&C and power equipment firm Under the agreement, Trican will Foster Wheeler for $3.2 billion. Continues On Pg 11 exchange 1.70 common shares of Trican Savanna ready to be acquired by Western for $586 million for each Canyon common share, a 32% The drama with Total Energy Services heats up, says it can block the deal premium over the closing price of Canyon on the Toronto Stock Exchange. Existing While Savanna Energy Services directors have accepted Western Energy holders of Trican shares will own 56% of Services’ $586.3 million merger offer, which would create the second-largest drilling the combined company. and well servicing contractor in Canada, Both boards of directors have Total Energy Services (TES) Western to assume $248 million in Savanna debt. unanimously approved the deal, which is not giving up on its hostile included the assumption of $40 million takeover bid for Savanna. TES said on March 21 that it has already locked of Canyon debt. Continues On Pg 15 up 43.5% of Savanna shares, enough to block the deal, leading to a showdown at an April shareholder meeting. Savanna’s board initially approved Western’s offer of 0.85 of a Western share for each DEALS FOR SALE Savanna share on March 9. After some criticism from shareholders and TES, Western then IRION CO., TX PROPERTY added $0.21 in cash for each Savanna share less than a week later, raising the purchase 2-Active HZ Wells. 2,900-Gross & Net Acres. price by 10% from $533.0 million to $586.3 million. The value of the Western-Savanna PERMIAN BASIN - WOLFCAMP deal includes the assumption of $248 million in Savanna debt. Continues On Pg 6 Wolfcamp B Bench PP Wolfcamp A, B, C & Ellenburger Potential 6 Sq. Miles Of Proprietary 3D Seismic ~220 Borr buys Transocean's jackup fleet for $1.35 billion 100% OPEARTED WI; 74-83.375% NRI BOED Borr Drilling, a relative newcomer created by former executives of Seadrill, Nov 2016 Net Production: ~220 BOED has signed an LOI to buy Transocean’s entire jackup fleet for $1.35 billion. The Nov 2016 Net Cash Flow: ~$157,000/Mn purchase of 10 existing jackups and five under construction will be partially funded AGENT WANTS OFFERS MAR 23, 2017 by an $800 million stock issue. PP 9201DV Currently, Borr has a fleet Borr Drilling increases its jackup fleet from two to 17. GLASSCOCK CO., TX ASSETS of only two rigs, which the 8-Producing Wells. ~1,455-Net Acres. Oslo, Norway, company bought in December from the Hercules Offshore bankruptcy MIDLAND BASIN PP liquidation. The drilling startup is backed by Tor Olav Trøim, a VP and director at 7 Vertical & 1 Horizontal Well. Seadrill in 2005-2014. Trøim is on Borr’s board of directors along with former Seadrill Wolfcamp A, Middle & Lower Spraberry Upper Spraberry, Jo Mill, Wolfcamp B & 475 President and CEO Fredrik Halvorsen. Cline Upside Potential BOED The sale price to Borr averages out to $90 million per rig for each of the 15 Avg 98% OPERATED WI AVAILABLE Transocean rigs. “Thatʼs half the construction cost, so itʼs a pretty attractive deal,” Net Production: 475 BOED Carnegie brokerage analyst Frederik Lunde told Reuters. Of the 10 jackups that have AGENT WANTS OFFERS APR 5, 2017 already been built, five were stacked, one is under a contract that expires this month, and PP 2751DV two are under contracts that expire in May, according to Transocean’s February fleet PLS tracks thousands of deals status reports. The remaining two jackups, both offshore Thailand and hired by Chevron, for sale www.plsx.com/listings are under contracts that expire in 2018. Continues On Pg 17 All Standard Disclaimers & Seller Rights Apply. OilfieldServices 2 March 23, 2017 A&D Schlumberger buys patent Hyduke acquires Western Manufacturing for $5.5MM for wastewater separator Just over a month after saying “now is the time” to execute its M&A strategy as Schlumberger will buy the oil prices recover, Hyduke Energy Services has acquired Western Manufacturing. intellectual property of Enviro Voraxial Western is based in Hythe, Alberta, and manufactures drilling equipment and related Technology, a developer of wastewater services in the Montney and Duvernay plays in northwest Alberta and northeast technology based British Columbia. Hyduke will also acquire the assets of Ledarco Industries, a in Fort Lauderdale, Western affiliate involved in the regional transportation of manufactured Florida. The deal includes the patents and components, raw materials trademarks related to the Voraxial Separator, and finished products. Closed $12MM equity financing in which EVT described as a cost-effective Feb. aimed at funding new M&A. Total consideration for the Western method to separate large volumes of solids shares and Ledarco assets was $5.5 million to be paid by a combination of cash, debt and liquids with different specific gravities assumption, and Hyduke’s issuance of 735,295 shares and up to an additional 1.05 without the need of a pressure drop. million shares to be settled within 180 days post-closing, which occurred on March 9. After the deal closes, EVTN will The deals are per Hyduke’s objective, first laid out in early 2014, to become a key retain a worldwide, royalty-free agreement supplier of oilfield services equipment to the industry. The company said it has been to manufacture and sell the Voraxial awaiting “the right market conditions” to expand its rig supply business, BW RIG, which Separator for all industries excluding the has returned to profitability in recent months. In the past year, Hyduke has been approved oil and gas market. EVTN will also retain by about 100 new customers that it expects to do business with in 2017 and beyond. certain rights to manufacture the Voraxial The acquisition of Western and Ledarco are congruent with Hyduke’s strategy Separator for Schlumberger for three years. to expand beyond the fabrication and support of drilling and well-servicing rigs and Financial details were not disclosed. related oilfield services equipment to become a diversified designer, fabricator and The agreement is expected to close in manufacturer of oilfield equipment required for the drilling, completion, production three months. EVTN was founded in and maintenance of upstream oil, natural gas and NGLs. 1964 as a defense and space contractor named Florida Precision Aerospace, changing its name to Enviro Voraxial North American Rotary Rig Count as of Mar. 17 Source: Baker Hughes Technology in 1994. Current Week Ago Month Ago Year Ago % Chg. 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Find more on the oilfield sector at To learn more about PLS, call 713-650-1212 Volume 07, No. 03 3 ServiceSector For every ‘fragility’ seller, A&D a ‘stability’ buyer Hi-Crush buys former West Texas park for frac sand A tough few years has pushed A former 1,200-acre amusement park where West Texans could test out their dune the oilfield service industry into buggies has gone the way of Astroworld with an oilfield twist—the property has been consolidation mode, with the deal market sold to Hi-Crush Partners, which will use the sand for fracking. booming in the last month. Beyond Hi-Crush bought the former Dunes at Kermit and is preparing the deal market, many the site, which is between the Delaware and Midland basins in IN THIS companies are pondering ISSUE Winkler County, John Shepard, Kermit's Public Works Department director, told the IPOs as the recovery Houston Chronicle. Financial terms were not disclosed. is in full swing. The property is expected to yield sand for 25-30 years. Houston-based Hi-Crush Wood Group seemingly came to the has four terminals in the Permian Basin and last month purchased Permian Basin rescue of Amec Foster Wheeler (PG. 1). Sand Co. for $275 million. Trican Well Service acquired Canyon Services Group to create Aker Solutions low-key about rumors of Halliburton offer a major Western Canadian Aker Solutions is downplaying reports of Halliburton buying all or part of fracker (PG. 1). After saying “now is the the Norwegian oil services company. No stock exchange notice is pending, an Aker time” for M&A, Hyduke bought Western Solutions spokesman said. Norwegian financial daily Finansavisen reported that Manufacturing (PG. 2). Mammoth Halliburton has been negotiating to buy Aker Solutions or just its subsea unit and a Energy Services stepped closer to its deal was near. “Many are contacting us, and a natural part of what we do is to talk to name by adding three companies (PG. 4). others, but we have nothing new to say," Aker spokesman Atle Kigen told Reuters. New West borrows $6.0MM to buy A merger would not face the sort of regulatory scrutiny in the Halliburton could be looking at equipment and pay debt (PG.10). whole company or just the subsea unit. US that derailed the US giant’s Some intriguing M&A possibilities merger with fellow US company Baker Hughes, but the Norwegian government would may not come to pass. Savanna directors be a major player in an Aker deal. The Norwegian trade ministry co-owns Aker Holding, embraced Western Energy Services, which owns 40.8% of Aker Solutions. This would mean the state would have to approve any but Total Energy Services said enough such sale. The government’s ownership agreement says Aker Holding must keep its stake in shareholders prefer its hostile takeover bid. Aker Solutions for at least 10 years, a period that expires on June 22. (PG. 1) Weatherford hired Halliburton’s Corporate raider Kjell Inge Røkke owns 68% of Aker ASA, which owns 60% CFO as its CEO, spurring rumors of a of Aker Holding. Speculation earlier in the year that he was interested in selling Aker merger (PG. 5). A Norwegian financial Solutions drove the oilfield services company’s stock price up 20%. daily reported that who Halliburton really For YE16, Aker Solutions reported net income of NOK152 million ($18.0 million), wants is Aker Solutions (PG. 3). a decline of 58.1% from YE15. Even as Vantage Drilling said jackup drilling was recovering (PG. 7), Transocean sold its Aker Solutions Key Numbers Dip In 2016 entire jackup fleet (PG. Revenue EBIT Order Intake Order Backlog 1). The buyer is a company backed by Tor Olav Trøim, former right-hand man to John Fredriksen, who used a Seadrill NOK NOK NOK NOK 25.6 BILLION 0.7 BILLION 17.0 BILLION 31.2 BILLION arbitration to create a new company (PG. 1). Ezra Holdings became the latest offshore driller to file for 35 3 50 50 Chapter 11 (PG. 10). 30 2.5 40 40 Proppant manager Solaris Oilfield 25 Infrastructure (PG. 8) and fracking 2 20 30 30 equipment maker NCS Multistage both 1.5 announce plans for $100 million IPOs 15 20 20 1 (PG. 8). Yet, a few weeks after both Step 10 10 10 Energy Services and Source Energy 5 0.5 Services announced intentions for IPOs, 0 0 0 0 they postponed their offerings (PG. 10), 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 proving that the US-based recovery is not being felt evenly in Canada. Source: Aker Solutions Feb. 9 Presentation via PLS docFinder www.plsx.com/finder For general inquiries, email [email protected] Access PLS’ archive for previous oilfield services news OilfieldServices 4 March 23, 2017 A&D Canadian firms Whitetail & Mammoth acquires frac sand, water transfer companies Okala announce merger Mammoth Energy Services has added three more companies to its collection of The merger of Whitetail Oilfield small oilfield services companies, acquiring the parent company ofTaylor Frac, Stingray Rentals and Okala Energy Services Energy Services and Stingray Cementing for a combined 7 million shares, which creates “equipment bundling opportunities” translates to $133.4 million for O&G customers, the Alberta-based at the current Nasdaq price. Frac sand facility to grow to 1.75 mtpa companies announced. The two companies in $23 million expansion. The transactions, which will keep their separate names with also include the assumption of $7.3 million in debt, are expected to be completed in May. administrative and sales functions operated In buying Sturgeon Acquisitions, which owns Taylor Frac, Mammoth added out of a Calgary head office. a 700,000 tpa sand mine in Taylor, Wisconsin, and processing plant with 37.1 Whitetail has offered communication million tons in reserves, 73% of which equipment and services for drilling rigs Purchases have connections to Utica are grades of fine sand. The facilities and Marcellus. Communications provider, equip. are located on the Canadian National renter to share functions. Railway, which simplifies transport to Utica and Marcellus shale plays and Western Canada. Mammoth said it plans to spend $23 million to expand the facility to 1.75 since 1994. Okala was founded in 2012 mtpa by the end of the year. to rent new wellsite accommodation units Stingray Energy Services and Mammoth is a collection of several and has expanded to offer a range of rental small oilfield services companies. Stingray Cementing, which operate equipment including wellsite walkways, primarily in the Utica and Marcellus and offer fresh water transfer, equipment rental generators, shale sloops, rig mats, light and refueling as well as cementing. As of March 17, Stingray had 250 pieces of towers, centrifuges and trucks. equipment rented on 63 separate pads in the Appalachian Basin. The merger, announced on March 17, Wexford Capital formed Mammoth Energy Services from several small oilfield became effective on Jan. 1. Field service services companies—Redback Energy Services; Redback Coil Tubing; Muskie and support now being coordinated out Proppant; Panther Drilling Systems; Bison of two operational facilities located in Drilling & Field Services; Bison Trucking and January 13, 2015 • Volume 08, No. 02 Red Deer, Alberta, and Dawson Creek, CapitalMarkets Serving the marketplace with news, analysis and business opportunities British Columbia. Great White Sand Tiger Lodging. In October, Southwestern plans multibillion equity raise to fund buys Rice Midstream IPO raises The implications of Southwestern Energy’s $4.98 billion acquisition of West $474MM in tough market Virginia and southwest Pennsylvania assets from Chesapeake Energy (plus another After a fairly banner 2014 for energy $394 million in add-ons in the region from Statoil) are beginning to become apparent IPOs on the whole but a significant for the company, with impacts on both Southwestern’s capital structure and capex. dry spell for all segments other than Mammoth raised $100.3 million in an IPO and The company is finally providing a clearer picture of how it plans to midstream through the last few months CapitalMarketspermanently fund the Chesapeake deal. The acquisition was funded Oct.of the year, Rice Energy17 put a at closure with a $4.5 billion bridge loan and a two-year $500 million unsecured term nice bow on 2014 with its buzzer Developments & Trends loan, but significant sums of longer-term beater Rice Midstream Partners Should raise $1.8-$2.1 billion in equity debt and equity were clearly needed. IPO. Rice sold 28.75 million units at depending on whether options go. In line with its previously announced $16.50, for total gross proceeds of $474.4 trades on the Nasdaq under the ticker symbol TUSK. intentions, Southwestern announced a proposed equity sale which should raise $1.8- million, and $441.6 million net. Units $2.1 billion, depending on whether options are exercised. Specifically, the company priced 17.5% below the midpoint of the plans to sell 20.26 million shares of common with a 3.04 million share option, and 26 Mammothmillion depositary shares (each amounting toraises a 1/20th interest in Series Bover mandatory Units $100MM priced 17.5% below midpoint ■■ A faulty power cable has stalled at $16.50 but option fully exercised. preferred shares) with 3.9 million shares in possible options. Continues On Pg 4 In its YE16 earnings, Mammoth reported a net loss targeted price range of $19-$21/unit, Concho dials capex back $1.0 billion in second look in InIPO. a rather noteworthy example of what many companies which announced 2015 probably reflecting the challenges the spending plans early are dealing with these days, Concho Resources revised its capex energy sector has seen of late in terms for this year to more accurately reflect current market conditions. In early November of obtaining financing. However, in an Divergent Energy Services’ attempt to when WTI was still trading above $78/bbl, Concho had announced a $3.0 interesting turn for an underpriced IPO, of $88.4 million on revenue of $231.0 million. billion 2015 budget targeting ~30% production growth, but warned that it subsequent demand was strong enough would ease spending if oil prices didn’t firm up over the next few months. to merit full exercise of a 3.75 million With oil now near $45, that clearly hasn’t unit option (included in the above gross happened, and Concho has proceeded Boosting focus on Delaware Basin proceed total) which boosted proceeds test a new pump for months. The Calgary- from 64% of prior budget to 72%. accordingly with a new $2.0 billion plan by $61.9 million. Continues On Pg 14 which is 33% lower than prior guidance and down 23% YOY vs. 2014’s $2.6 billion. The new plan contemplates $1.8 billion in D&C spend (down 33% from the prior $2.7 FEATURED DEALS billion), with ~$1.3 billion or 72% of spend targeting the Delaware Basin (down 25% vs. prior budget, up from 64% of total spend), $300 million or 17% targeting the Midland Basin (down NORTH TEXAS SALE PACKAGE 18-Wells. ~4,000-Gross Acres. based pumpmaker installed its Linear 49% vs. prior budget and 22% of total) and the remaining $200 million or 11% targeting the PARKER, JACK & ERATH COUNTIES New Mexico Shelf (down 47% from prior budget and 14% of total). Continues On Pg 6 Big Saline, Marble Falls, Atoka Sand, PP Source:-- & Conglomerate Reservoirs. CapIQ Upstream MLPs under fire as distributions cut Behind-Pipe Potential In Each Well Oilfield Services Stock Movers—Last 30 Days Additional Barnett Shale Potential Upstream MLPs have been the subject of much discussion of late as a particularly All Acreage HBP. 18 Leases. 192 Electric Submersible Pump in a test oil at-risk segment of the energy patch, and these concerns have in fact been realized 75-100% Operated WI; 80% Lease NRI MCFD for at least some partnerships with distribution and capex cuts. MLPs in general Gross Production: 271 MCFD & 33 NGLs have been favored for their bond-like, high-yield distributions, stemming from Net Production: 192 MCFD & 23 NGL PP 3426DV preferential tax treatment for reinvesting a high percentage of profits back into the business. However, they also generally Upstream MLPs are choosing KERN CO., CA PROPERTY well in Saskatchewan rely heavily on debt to fuel growth. And ~18,000-Contiguous% Net Acres. between debt loads & distributions. unlike their midstream brethren which BEER NOSE FIELD are better positioned to weather recent commodity volatility with long-term, fixed- Bloemer Tight Sandstone Objective. PP price contracts, upstream MLPs face full exposure to the recent oil and gas price Estimated Depth: 10,000-15,000 Ft. Also Monterey, Belridge, Gibson, Oceanic, $/Share $/Sharedeclines, except to the degree they make use of hedges.% However, hedges will largely ChangeSantos, Tumey & Kreyenhagen Potential. TIGHT peel off over the course of the year, and many of these partnerships will soon face the and was producing at a 100% OPERATED WI; ~77% NRI SAND difficult decision of using cash to cover interest requirements and maintaining what Gross Production: 36 BOPD & 57 MCFD may have become unsustainable payouts, or slashing the distributions which drew Net Production:27 BOPD & 44 MCFD 6-Mn Avg. Net Cash Flow: ~$28,800/Mn investors to them in the first place so they can make debt levels more reflective of Company Ticker 3/22/17 2/23/17 Change PP 5217DV YOY current economics. Continues On Pg 8 All Standard Disclaimers & Seller Rights Apply. peak rate of 131 bbl/d when the third-party Weatherford International WFT $6.03 $5.75 5% -17% cable supplying power suffered a ground fault on Nov. 19. High demand for service Baker Hughes BHI $60.54 $59.97 1% 35% work on existing oil wells and inclement National Oilwell Varco NOV $38.71 $39.71 -3% 23% weather has kept Divergent waiting for a

Top 5 Top service rig ever since. A visual inspection Schlumberger SLB $78.38 $80.47 -3% 7% showed the pump showed no signs of wear, Helmerich & Payne HP $66.32 $68.77 -4% 15% according to Divergent. ■■ Patterson-UTI’s US rig count Pioneer Energy Services PES $4.00 $5.65 -29% 91% continued to climb in February, averaging Parker Drilling PKD $1.45 $1.95 -26% -29% 80 drilling rigs operating in the US, an increase of four rigs from January, and Frank's International FI $9.62 $12.49 -23% -38% up 14 from Q4 and up 10 YOY. In

Bottom 5 Rowan Companies RDC $14.45 $18.62 -22% -6% Canada, Patterson-UTI had two rigs active in February, January and Q4 and four Hornbeck Offshore Services HOS $3.89 $4.91 -21% -58% YOY. For the two months ended Feb. 28, Note: Data includes public, US & Canadian-listed companies operating in the oilfield service the company averaged 78 drilling rigs space, limited to companies >$1.00/share and market cap >$100 million. operating in the US and two rigs in Canada.

Find more on the oilfield sector at To learn more about PLS, call 713-650-1212 Volume 07, No. 03 5 ServiceSector Developments & Trends Weatherford picks Halliburton CFO as CEO, spurring chatter Xtreme's first upgraded rig Struggling Weatherford International poached from a major rival to find its to hit the field in Q3 new president and CEO, hiring Mark McCollum, former EVP and CFO of Halliburton Co. While industry analysts were generally ecstatic about the choice, some asked when Xtreme Drilling Corp., still debt- Weatherford’s fortunes could be turned around or if hiring a Halliburton insider could set the free after selling its coiled-tubing service stage for a merger. to Schlumberger in June, is seeing its McCollum, who will take New CEO led Halliburton’s integration rig-optimization program start to bear efforts for planned Baker Hughes merger. his new post in late April, had fruit. An unnamed producer in Oklahoma been Halliburton CFO since 2008, with the exception of a period when he served as chief has signed a two-year term contract integration officer during the company’s unsuccessful acquisition ofBaker Hughes. He for Xtreme’s the first 850XE rig for has more than 36 years of leadership experience including CFO of Tenneco Inc. and as delivery in Q3. an audit and advisory partner in Arthur Andersen's energy division. The Houston-based Interim CEO Krishna Shivram left the company immediately after the announcement. company plans to upgrade three rigs to its During the Q4 conference call in February, Shivram laid out a long-term strategy included new 850XE design for $11.0-11.5 million cutting Weatherford’s net debt from $6.5 billion to below $3.0 billion in three years, each, a project that will take up most of starting with offering its fracking and land Xtreme’s $45-50 million capex budget. Weatherford interim CEO left position rigs businesses up for sale. immediately. Only eight of Xtreme’s 21 rigs in the Gabelli & Co. analyst Simon Wong US and Canada are contracted. was among those pleased with the hiring of McCollum. He added that he thought Halliburton was the most likely acquirer of Weatherford, and McCollum’s hiring made The 850XE will be equipped with an that more likely “down the road.” 1,800 hp AC electric drawworks, 850,000- Whether Halliburton could afford to take on December 31, 2014 • Volume 06, No. 15 lb capacity mast, proprietary X-pad InternatIonalCapItal Weatherford is another question since it had $12.4 Serving the marketplace with news, analysis and business opportunities Analysts assess project risk at various price points Petrobras scandal, possible optimizer walking system, a 7,500-psi 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 higher-priced projects around the world unprofitable. Projects aggregating $930 Petrobras scandal could soon have billion in YE16 debt, a number inflated by the $4.0 billion worth of future investment were no longer profitable with Brent at $70/bbl, the implications outside Brazil. That’s investmentInternationalCapital bank said, and that $10/bbl less would push that number to the $1.0 trillion because Nov.the company and its executives23 mark. The Goldman analysis looked at 400 of the world's largest new fields have been named mud system with three pumps, integrated excluding US shale. as the target Goldman estimates that more than Led by Canadian oil sands $1.0T in projects are at risk at current prices. of a new, $98-billion US class-action billion in breakup costs from the failed Baker Hughes projects at $80/bbl and certain US shale lawsuit alleging Petrobras made material plays and other tight oil 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 equipment monitoring and other 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- Weatherford equity &rated ifnotes not for government support. Mexican projects would cease to be profitable at $70. The group told the Financial Times 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 merger. Later reports had Halliburton eyeing a smaller Continues On Pg 4 over 1.0 MMbopd of 2017 projects are chancy at that price point. federal court on behalf of the city Oil prices the scourge of noted investors in 2014 of Providence, Rhode Island by proprietary design features, Xtreme said. bring $1.0B. the Labaton Sucharow law firm, Some of the world’s most astute and followed investors couldn’t escape the grip covers all securities Petrobras sold that a slumped oil price had on various securities during 2014, and has given the since 2010: including debt issued by and more profitable targetAker Solutions (see PG. 5). $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 Xtreme has seven of its 10 XDR 500 February, 2012. Continues On Pg 12 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 rigs contracted in the US with six currently one point before rebounding somewhat. 1-Permit. 556,481-Acres. (2,252km2) the Repsol offer and the resulting share GHADAMES BASIN price boost cut his losses down to $286 million. His company’s total portfolio was Contains One Discovery. FO up 4.4% through the end of Q3, filings show. Looking at his Talisman experience, 8 Identified Leads: Silurian Sandstone Market moving from ‘fragility’ to ‘stability,’Icahn told Precision the Wall St. Journal: “In this oil environment, I’m certainly glad aCEO bidder Seismic Data Available. says came along for it. Continues On Pg 6 Also Re-Entry Project for 2-Wells. RE-ENTRY operating and the seventh contracted SEEKING JV PARTNER FOR --- --EXPLORATION PROGRAM. Oil-linked contracts put many LNG projects in limbo Est Mean EUR: 57 MMBO While BG Group celebrates the loading of the first commercial cargo at its Gladstone Est Total In-Place Reserves: 385 MMBO Oil and gas producers think the modest crude recoveryLNG plant on Queensland’s is Curtishere Island, the current pricingto climate hasstay, already altered Exploration Precision Term Expires April 2016. CA Required To View Data Room. the fate of the Pacific NorthWest LNG megaproject in Canada and may affect investment to begin work in April. However, only CONTACT AGENT TO LEARN MORE decisions in other large-scale LNG projects worldwide. While not an oil FO 1022DV drilling project, conventional or otherwise, the $32 billion, multi-partnered Petronas-led effort has been put on hold as the Malaysian NOC defers a final OFFSHORE AFRICA FARMOUT Drilling executives said. “I've used the term ‘fragility’ investmentwhen decision on the gas project discussing with a list of entirely Asian prospective customers 1-PSC.improving 420,079-Acres. (1,700km2) that are used to paying for LNG based on SENEGAL & GUINEA-BISSAU one other of its 21 North American rigs LNG prices in Asia now below AGC MARITIME COMMISSION ZONE DV oil-indexed contracts. $10/MMbtu, disturbing to profitability. Contains One Identified Prospect. With the drop in crude, LNG prices Shallow Water: 328 Ft. (100m) landing in Asia have now sunk below $10/MMbtu, down from $16/MMbtu as recently 3-D Seismic Data Available. SHALLOW customer sentiment, and I think now ‘stability’ may be emergingas April 2014. In North America alone, as nearly 40 mymtpa of LNG projects new are under 40% WORKINGview, INTEREST AVAILABLE said Estimated Reserves: 475 MMBO construction with another 30 mtpa expected to reach FID in the next twelve months. is contracted, and Q4 utilization rate for CA Required To View Data Room. In Australia, LNG breakeven prices are $13-$14/MMbtu. Globally, as with oil, LNG CALL AGENT FOR MORE INFORMATION landed prices will adjust to market dynamics. Continues On Pg 10 DV 5234L the fleet was 25%. Precision CEO Kevin Neveu. All Standard Disclaimers & Seller Rights Apply. In its main area of Canada, Oil and gas explorers now thinking ‘beyond the next well or two.’ Rig upgrades will consume most of Precision has seen demand Xtreme's $45-50MM capex budget. rise to 90 rigs drilling or moving, double the number during the Q3 conference call. Two of the idle rigs are in the process Overall, Precision has added 107 rigs and activated almost 1,800 people since Q2 lows. of getting the 850 XE upgrade, the Consistent commodity prices since the OPEC cuts have led to North American company said. Enquires are increasing in crude oil producers to make more long-range plans. “We are seeing several customers Xtreme’s core US shale markets of the DJ, extend their capital deployment and plans beyond the next well or two, through Williston and Anadarko basins. 2017, and, in some cases, all the way to Precision cut its Q4 net loss by 88.7% 2018,” Neveu said. Xtreme’s continuing operations to $C30.6 million. posted a Q4 net loss of $11.1 million on Half of Precision’s 48 US rigs are $9.9 million in revenue, compared with working in the Permian Basin, and the 11 Precision has activated there since Q2 are its Super a $36.1 million net loss on $23.2 million Triple rigs, which are engaged in multi-wellpad shale drilling. Precision showed cautious in revenue YOY. optimism overseas and in US gas. The company has increased its rig count in Kuwait to five, which Neveu called a “critical mass” to fuel future expansion, but noted international recovery was slow. Precision has added rigs on one-year contracts in the Marcellus and Haynesville even though “longer-term visibility on US natural gas activity is less clear than oil.” Precision slashed its Q4 net loss to C$30.6 million ($22.7 million) compared with a Transactions net loss of C$271.0 million YOY. Revenue in Q4 was C$283.9 million compared with Metrics and C$345.0 revenue YOY. In year-end numbers, Precision posted a net loss of C$155.6 Comparables million in YE16, less than half of its YE15 net loss of C$363.4 million. YE16 revenue www.plsx.com/ma was C$951.4 million, down 38.8% from YE15. For general inquiries, email [email protected] Access PLS’ archive for previous oilfield services news OilfieldServices 6 March 23, 2017 Developments & Trends Total Energy looks to US as Savanna ready to be acquired by Western Continued From Pg 1 it waits for higher prices A combined Savanna-Western fleet would operate 157 drilling rigs, 153 well- Calgary-based Total Energy servicing rigs and have an increased inventory of oilfield rental equipment. In Canada, Services (TES) considers the Q1 pricing the fleet will consist of 119 drilling rigs (68 from Savanna; 51 from Western) and 123 of rig and rentals “not sustainable,” its service rigs (57 from Savanna; 66 from Western). The combined fleet would have had CEO told investors. Total utilization rates of 54% and 39% in February for drilling and service rigs, respectively, Energy needs more customers and generated the second-highest number of drilling days in Canada in the to return to profitability so first two months of 2017. price increases can help the company “The combination represents Combined company’s 157 drilling rigs recover from the most challenging had a February utilization rate of 54%. true consolidation in drilling and well downturn in its 20-year history. “In fact, servicing in both companiesʼ core Canadian market with customer bases that largely 2016 was the first year ever that Total complement rather than overlap each other,” Savanna CEO Chris Strong said. Energy was not profitable,” President and Western’s Canadian fleet focuses on Montney- and Duvernay-class rigs suited to CEO Daniel Halyk said. drilling longer-reach horizontal wells, while Savanna’s fleet is weighted to Cardium- TES expanding in northeastern US, class rigs. Savanna’s Cardium-class rigs cover a wide spectrum from trailer singles retrofitting West Virginia facility. suited to the Viking oil play and hybrids suited for the oil sands to deeper telescopic double rigs that are similar to Western’s TES was regaining market share with Western brings Bakken rigs; Savanna Cardium-class doubles. equipment use trending closer to industry owns Permian, Marcellus & Rockies fleets. In the US, Western has five Duvernay- averages, Halyk said. “We’re seeing the class rigs in North Dakota’s Bakken shale, which will complement Savanna’s Permian, completion side piling up a little bit here. Marcellus and Rockies fleets. The combined US fleet would have had respective utilization So definitely we’re positioning to get rates in February of 25% and 35% for drilling and service rigs. The deal will also mark our fair share of work on the completion Western’s entry to Australia, where Savanna has five drilling rigs and 12 service rigs. front and we expect that to proceed Savanna urged its shareholders to reject the hostile takeover bid of TES, whose through Q2,” he said. offer most recently was 0.13 of a TES share and $0.20 in cash for each Savanna One way TES is trying to get back share. TES’ offer would give giving Savanna shareholders 33% ownership of the on track is growing its international combined company, whereas the Western deal provides for 58% ownership. The business operations, with 20% of YE16 increased Western offer represents a 14.8% premium to the Total offer based on the revenue coming from Australia and the volume weighted average trading price of the Western shares and Total shares for the US. TES plans to expand its fabrication 10 days ended March 14. capacity into the northeastern US, and TES said it confirmed with the TES says Western’s debt should make its compression and process services shareholders reject deal. Savanna shareholders who entered into segment has secured a 100,000-sq- lock-up agreements in November that each of them considers the Western deal “to be ft manufacturing facility in Weirton, inferior” to the TES offer. Even though TES has not sweetened its offer since Savanna West Virginia, that it is retrofitting and approved the Western deal, many independent shareholders said they plan to tender restaffing for a Q2 production restart. their Savanna shares to TES, giving it more than enough to block to the Western deal, TES reported a Q4 net loss of $3.6 unless Savanna decides to dilute its equity by issuing more shares. The merger requires million on $57.4 million in revenue, support from two-thirds of shareholders. compared with a net loss of $3.0 million “Savanna reportedly only has the support of corporate insiders (who own less than on $52.1 million revenue YOY. For YE16, 1% of the outstanding shares of Savanna) and the Alberta Investment Management the company had a net loss of $11.9 Corp., which only recently became a shareholder of Savanna when it participated in a million on $197.8 million of revenue, highly dilutive refinancing completed by Savanna at $1.45 per share in December 2016 compared with a YE15 net income of and became Savanna's largest lender by $8.7 million on $283.2 million in revenue. Merger needs 66.7% support; TES says refinancing Savanna's significant debt,” it has 43.5%. Total said in its March 21 statement. Total said shareholders prefer its bid because of “a 21-year track record of providing its shareholders with industry-leading returns” compared with Savanna and Western’s “consistent underperformance.” Neither Savanna nor Western pays dividends, while TES does. Building A combined Savanna-Western company would be “heavily indebted” relationships compared with TES’ balance sheet, TES said. In YE16, Western reported through data C$264.1 million in long-term debt while TES has C$46.9 million in long-term debt and 59% more revenue. Continues On Pg 7 www.plsx.com Find more on the oilfield sector at To learn more about PLS, call 713-650-1212 Volume 07, No. 03 7 ServiceSector Developments & Trends Paragon’s woes seen in Q4 net loss, soft fleet report Vantage says interest rising Bankrupt driller Paragon Offshore ended 2016 with another rocky quarter with a in jackups and exploration Q4 net loss 10 times higher than in 4Q15 and revenue that was down 79.6% YOY. The Q4 net loss of $244.4 million included a $129.9 million impairment charge related to While the offshore drilling remains six jackups and other capital spares. weak, Vantage Drilling International Paragon filed for bankruptcy in February 2016 but has struggled to get CEO Ihab Toma said jackup drilling parties to agree on a reorganization plan. The latest plan was agreed to in has started to recover because “most January, which gives equity to debtholders shallow-water projects and cuts out existing shareholders. Paragon’s Q4 net loss rose $216.8MM will do well at $50.” YOY to $244.4MM. The reorg plan also included a new Deepwater exploration activity is also business strategy to focus on the North Sea, India and the Middle East. The company starting to rise, he told investors in released a fleet status report with its earnings that reflected that strategy. Of Paragon’s 40 Vantage’s Q4 conference call. rigs, only eight—all jackups—are operating and all are inside those areas. Paragon has CEO says deepwater still the place to 12 rigs in the Gulf of Mexico, with seven stacked and the other five available. replenish reserves ‘in one go.’ The only new contract Paragon had in the March fleet status repor—its first report since November—was for its B391 jackup with a three-month contract from Centrica With oil around $50/bbl, producers in the North Sea that begins in late March. One rig, the MSS2 out of Puerto Rico, had have leaned toward onshore projects with its status changed to scrapped. Paragon announced in the report that it will now issue lower capex and more secure returns. fleet status reports every quarter instead of every month. However, companies looking to replenish reserves have increased enquires about deepwater exploration, Toma said. Savanna ready to be acquired by Western Continued From Pg 6 “Deepwater is the province where TES has also purchased 235,000 Savanna shares on the Toronto Stock Exchange, which you can make a big discovery and would help it gain standing in court should it wish to pursue an investigation of actions replenish a big part of your production in taken by Savanna’s management. TES believes that actions taken by Savanna, particularly one go, in one discovery. And deepwater the $20 million early termination fee, “represent defensive tactics” aimed at will continue to be very attractive for thwarting Total’s takeover attempts. Savanna responded that the termination fee operators to go out and replace reserves,” was appropriate, as it was ~5.0% of Savanna's equity capitalization at the time of Toma said. But he said the offshore the LOI with Western and ~6.1% of equity capitalization at the time of entering into Savanna says Western deal has better industry still isn’t seeing large projects synergies than TES can offer. that can absorb a lot of rigs. the arrangement agreement. Savanna defended the Western deal, saying that in addition to the greater ownership Vantage added jackup from Hercules it provides Savanna’s shareholders, the Western deal presents more advantageous Offshore liquidation. synergies, as the market cap of Savanna-Western would be solely correlated to drilling, Vantage did point to some success in well servicing and related rentals, whereas TES-Savanna would be a mixture of keeping its own fleet active. Its Emerald businesses that are not as closely related. In terms of drilling rig utilization, so far this Driller jackup in Qatar was reactivated year utilization of Savanna’s and Western’s fleets were 51% and 60%, respectively, and had 99% uptime in Q4, and the compared to 14% for Total’s 18 rigs. Topaz Driller jackup is being reactivated for a short-term contract in Thailand with Philadelphia Stock Exchange’s Oil Service Sector Index Vs. S&P 500 possible follow-up work. The company 4.00% also added to its fleet, buying Hercules 260 jackup and its drilling contract in 3.00% Congo from the Hercules Offshore 2.00% bankruptcy liquidation. S&P 500 PHLX Vantage posted YE16 net loss of 1.00% $147.4 million since Feb. 10, 2016, when 0.00% it emerged from Chapter 11 bankruptcy -1.00% protection, including a Q4 loss of $41.1 million. Restructuring gave Vantage -2.00% enough liquidity to finish Q4 with -3.00% $231.7 million of cash on hand, just $9.3 -4.00% million less than at the start of the quarter. 2/22/17 2/25/17 2/28/17 3/3/17 3/6/17 3/9/17 3/12/17 3/15/17 3/18/17 3/21/17 Revenue was $158.6 million since Feb. Source: PLS Research Using Google Finance 10 and $40.4 million for Q4. For general inquiries, email [email protected] Access PLS’ archive for previous oilfield services news OilfieldServices 8 March 23, 2017 Capital Proppant manager Solaris Fracking equipper NCS Multistage files for $100MM IPO plans $100MM IPO NCS Multistage has filed the paperwork for an IPO, looking to raise up to $100 Solaris Oilfield Infrastructure, a million to pay off debt. The Houston-based fracking equipment maker did not file the Houston-based company with patented number of shares that would be issued, the pricing or when an IPO would take place. mobile proppant management systems, The company was founded in 2006 as NCS Oilfield Services has filed paperwork for an initial public (Canada) to sell coiled- offering. The company seeks to raise $100 tubing fracturing tools Founded in Canada, NCS now based in million to keep up with expected demand Houston and focused on Permian Basin. for the coalbed methane gas. NCS growth from frackers. incorporated in the US in 2008 and relocated to Houston, shifting its focus on the oil and The company started gas sector. Since 2006, NCS stimulation products and services have been used in the operations in April 2014 with completion of more than 7,600 wells, the company said in its preliminary prospectus. two systems and ending 2016 with 33. “We NCS reported a net loss of $17.9 million in YE16 compared with a net gain of currently have more demand for our systems $28.0 million in YE15. YE16 revenue was $98.5 million, a 13.6% decline from YE16. than we can satisfy with our existing fleet, At YE16, NCS had $90.8 million of senior and we expect to increase our fleet to between NCS reported net loss of $17.9MM after secured debt outstanding. 60 and 64 systems by the end of 2017 in revenue declined by 13.6% in YE16. In the prospectus, NCS said its focus response to customer demand,” Solaris said. was increasing its market share in the US especially the Permian Basin. “Sales of our Every quarter, Solaris system revenue products and services in the Permian Basin contributed 56% and 43% of our revenue days have increased except 2Q16. Solaris in the United States in 2016 and 2015, respectively,” the prospectus said. said it had net income of $2.8 million in The company’s main offering is its Multistage YE16 on revenue of $18.2 million and January 13, 2015 • Volume 08, No. 02 total debt of $3.2 million. Its most active Unlimited family of completion products and CapitalMarkets Serving the marketplace with news, analysis and business opportunities services, which the company said allows pressure Southwestern plans multibillion equity raise to fund buys Rice Midstream IPO raises areas are the Permian Basin, the Eagle The implications of Southwestern Energy’s $4.98 billion acquisition of West $474MM in tough market Virginia and southwest Pennsylvania assets from Chesapeake Energy (plus another After a fairly banner 2014 for energy $394 million in add-ons in the region from Statoil) are beginning to become apparent IPOs on the whole but a significant for the company, with impacts on both Southwestern’s capital structure and capex. dry spell for all segments other than The company is finally providing a clearer picture of how it plans to Ford and the SCOOP/STACK. Solaris midstream through the last few months pumpers to have any number of stages at the desired permanently fund the Chesapeake deal. The acquisition was funded of the year, Rice Energy put a at closure withCapitalMarkets a $4.5 billion bridge loan and a two-year $500 million unsecured term Nov. 18 nice bow on 2014 with its buzzer loan, but significant sums of longer-term beater Rice Midstream Partners Should raise $1.8-$2.1 billion in equity debt and equity were clearly needed. IPO. Rice sold 28.75 million units at depending on whether options go. In line with its previously announced $16.50, for total gross proceeds of $474.4 manufactures its equipment in a facility spacing to maximize production. Credit Suisse, intentions, Southwestern announced a proposed equity sale which should raise $1.8- million, and $441.6 million net. Units $2.1 billion, depending on whether options are exercised. Specifically, the company priced 17.5% below the midpoint of the plans to sell 20.26 million shares of common with a 3.04 million share option, and 26 Smartmillion depositary shares Sand (each amounting to a 1/20thIPO interest in Seriesbrings B mandatory Units pricedin 17.5% nearly below midpoint at $16.50 but option fully exercised. preferred shares) with 3.9 million shares in possible options. Continues On Pg 4 in Early, Texas, between the Permian and Citigroup and Wells Fargo Securities filed as joint targeted price range of $19-$21/unit, Concho dials capex back $1.0 billion in second look $130 In a rather noteworthy million. example of what many companies which announced 2015 probably reflecting the challenges the spending plans early are dealing with these days, Concho Resources revised its capex energy sector has seen of late in terms for this year to more accurately reflect current market conditions. In early November of obtaining financing. However, in an interesting turn for an underpriced IPO, the Eagle Ford. when WTI was still trading above $78/bbl, Concho had announced a $3.0 bookunners for the IPO. subsequent demand was strong enough billion 2015 budget targeting ~30% production growth, but warned that it would ease spending if oil prices didn’t firm up over the next few months. to merit full exercise of a 3.75 million With oil now near $45, that clearly hasn’t unit option (included in the above gross happened, and Concho has proceeded Boosting focus on Delaware Basin proceed total) which boosted proceeds from 64% of prior budget to 72%. accordingly with a new $2.0 billion plan by $61.9 million. Continues On Pg 14 Solaris plans to use the IPO proceeds which is 33% lower than prior guidance and down 23% YOY vs. 2014’s $2.6 billion. The new plan contemplates $1.8 billion in D&C spend (down 33% from the prior $2.7 FEATURED DEALS Developments & Trends billion), with ~$1.3 billion or 72% of spend targeting the Delaware Basin (down 25% vs. prior budget, up from 64% of total spend), $300 million or 17% targeting the Midland Basin (down NORTH TEXAS SALE PACKAGE 18-Wells. ~4,000-Gross Acres. 49% vs. prior budget and 22% of total) and the remaining $200 million or 11% targeting the to fund its 2017 capex budget of $40.0 PARKER, JACK & ERATH COUNTIES New Mexico Shelf (down 47% from prior budget and 14% of total). Continues On Pg 6 Big Saline, Marble Falls, Atoka Sand, PP -- & Conglomerate Reservoirs. Upstream MLPs under fire as distributions cut Behind-Pipe Potential In Each Well Additional Barnett Shale Potential Upstream MLPs have been the subject of much discussion of late as a particularly All Acreage HBP. 18 Leases. 192 at-risk segment of the energy patch, and these concerns have in fact been realized -55.0 million as well as paying down debt. 75-100% Operated WI; 80% Lease NRI MCFD Strong demand, debt refi inspires Trinidadfor at least some partnerships to with distribution double and capex cuts. MLPs in general Gross Production:capex 271 MCFD & 33 NGLs have been favored for their bond-like, high-yield distributions, stemming from Net Production: 192 MCFD & 23 NGL PP 3426DV preferential tax treatment for reinvesting a high percentage of profits back into the business. However, they also generally Upstream MLPs are choosing KERN CO., CA PROPERTY rely heavily on debt to fuel growth. And ~18,000-Contiguous Net Acres. Credit Suisse and Goldman, Sachs & Co between debt loads & distributions. Trinidad Drilling has more than doubled its capex budgetunlike their midstream brethren whichto C$90 millionBEER NOSE FIELD ($67 are better positioned to weather recent commodity volatility with long-term, fixed- Bloemer Tight Sandstone Objective. PP price contracts, upstream MLPs face full exposure to the recent oil and gas price Estimated Depth: 10,000-15,000 Ft. Also Monterey, Belridge, Gibson, Oceanic, declines, except to the degree they make use of hedges. However, hedges will largely Santos, Tumey & Kreyenhagen Potential. TIGHT peel off over the course of the year, and many of these partnerships will soon face the 100% OPERATED WI; ~77% NRI SAND are serving as bookrunners. million) as demand for high-performance rigs in the Permiandifficult decision of usingBasin cash to cover interest requirements continues and maintaining what Gross Production: 36 toBOPD & 57 MCFDgrow. may have become unsustainable payouts, or slashing the distributions which drew Net Production:27 BOPD & 44 MCFD 6-Mn Avg. Net Cash Flow: ~$28,800/Mn investors to them in the first place so they can make debt levels more reflective of PP 5217DV current economics. Continues On Pg 8 The company’s new 2017 capital budget dedicates C$75 million to rig upgradeAll Standard Disclaimers projects, & Seller Rights Apply. up from C$22 million from the capex budget announced in January, and C$20 million ■■ CARBO Ceramics refinanced to maintenance capital, up slightly from C$18 million. Trinidad President and CEO its bank debt with a $65.0 million debt Brent Conway said Trinidad will fund the capex expansion with cash from placement with investment firm Wilks operations and cash on hand. Brothers. The new debt placement includes The Calgary-based company Trinidad has reactivated 18 rigs in the US since 3Q16. an initial funding of intends to upgrade 27 rigs in 2017, with $52.7 million plus an approximately two-thirds of the upgrade capital directed toward Trinidad's US fleet. Planned additional $12.3 million to be released projects for the rigs include increasing the pressure capacity of mud circulating systems to after certain conditions have been satisfied. 7,500 psi, adding mud pumps, moving systems and high-torque top drives, and making bi- The loan bears interest at 9% and gives fuel upgrades. Since 3Q16, Trinidad has reactivated 18 rigs in the US, and Trinidad said CARBO a payment-in-kind option at 11% “the vast majority” of reactivated rigs had received the upgrades now planned for the 27 rigs. during the first two years of the loan. Wilks A series of debt-refinancing offerings have also led to Trinidad’s expanded capex Brothers is an investment fund that was plans. Trinidad closed the redemption of its $450 million in 7.875% senior notes due started in 2011 after the family sold its 2019 earlier in March. It was the last in a series of transactions to reduce its debt load, stake in FracTech, the pressure-pumping including a private placement of $350 million 6.625% senior notes due in 2025 and an company that the family founded in 2002. offering of 47.5 million shares with gross proceeds of C$150 million ($112 million). ■■ SemGroup Corp. is offering $325 These transactions extend Trinidad’s long-term debt maturities to 2025 and lower million in senior unsecured notes maturing the interest rate on its senior notes from 7.875% to 6.625%. “Our lower leverage and 2025, which it will use to help purchase senior improved flexibility following our recent debt restructuring and equity offering have notes due 2021. Any remaining proceeds positioned us well to take advantage of improving market conditions,” said Conway, will go to general corporate purposes. who also became Trinidad’s CEO on March 12. Find more on the oilfield sector at To learn more about PLS, call 713-650-1212 Volume 07, No. 03 9ServiceSector Drilling, Construction & Service Contracts Database wire.plsx.com

Date Location Abstract Africa ADX Energy has engaged TechnipFMC to undertake a development concept study for the Mar. 23 Tunisia- Dougga Dougga Gas Condensate discovery. TechnipFMC has been awarded a contract to perform the project management, engineering, Mar. 21 Ghana- Sankofa supply, construction and commissioning for the Onshore Receiving Facilities. Savannah Petroleum confirms that it has signed a Letter of Award withGreat Wall Drilling for three Mar. 15 Niger- R3 & R4 firm wells using Rig 89, with options for a further six wells. Ophir Energy will be employing the Seadrill drillship West Saturn to drill the Ayame-1X exploration Mar. 9 Cote d'Ivoire well in May. The Pacific Bora drillship has been awarded a $195,000/day contract byErin Energy to drill Mar. 6 Nigeria- Oyo the Oyo-9 oil well beginning in mid-June. The contract includes an option to drill up to two more exploration wells. North Sea & Western Europe 4Subsea has been awarded the wellhead integrity monitoring contract for Odfjell Drilling on Mar. 22 Norway- Maria the Deepsea Stavanger drilling operations on the field for the coming 12-18 months. Kvaerner has signed a contract with Statoil for delivery of a FEED study on Johan Sverdrup Mar. 21 Norway- Johan Phase 2 for P2 Jacket. Work starts immediately and will continue until delivery of final FEED Sverdrup study report Feb. 1, 2018. Aker Solutions has secured a FEED contract from Statoil for project phase 2, for a new process- Norway- Johan ing platform and the bridge that will connect it to the development's riser platform. The contract Mar. 21 Sverdrup also includes the design of a module and the work to integrate this with the riser platform. It will be delivered in 1Q18. Aibel has contracted Aqualis Offshore to conduct human factors analyses for some of its ongoing projects on the Norwegian Continental Shelf. Under the contract, Aqualis Offshore’s risk management Mar. 13 Norway- Oseberg specialists will conduct human factors analyses of Aibel’s work on the Snorre expansion project, the Dvalin project, and the Oseberg Vestflanken 2 project. South Pacific & Oceania EnerMech has been awarded a pre-commissioning subcontract by Technip on the Prelude FLNG project. Work scope includes pre-installation filling of risers, riser leak testing, pressure Mar. 22 Australia- Prelude monitoring of the umbilical and electrical steel flying lead during pipelay, and electrical flying leads and umbilical testing. Indonesia- Conrad Petroleum will hire the jack-up COSL Seeker for a one-well campaign in the the Mar. 10 Duyung Duyung PSC in the Natuna Sea. Saka Energy will award COSL a contract for use of the jackup Hai­ Yang Shi You 937 for a Mar. 10 Indonesia- South minimum two-well campaign at the Ujung Pangkah and South Sesulu PSCs in East Kaliman- Sesulu tan. Work begins in Q2. Premier Oil has issued an LOI to Apexindo for a two-phase drilling contract using the Tasha Mar. 8 Indonesia- Natuna jackup. Swift Networks won a material long-term contract for Shell’s Prelude FLNG. Through its Mar. 2 Australia- Prelude agreements with Shell and Nokia, Swift will deliver a broad suite of entertainment and FLNG connectivity services to Prelude FLNG for an initial period of five years. Middle East & North Africa Oman- West DNO International hired COSL's jack-up rig COSL Strike for a three-month campaign at the Mar. 10 Bukha West Bukha-5 area off Oman. PDO has awarded Kentz Overseas (SNC-Lavalin) a five-year commissioning support services Mar. 7 Oman- multiple framework agreement for several o&g projects, including Rabab Harweel Integrated Project and the Yibal Khuff Project. Asia ONGC has contracted Siemens to overhaul 18 RT48S and RT56 turbines operating on platforms Mar. 10 India- Neelam at the Mumbai High, Neelam & Heera complexes. See more at wire.petrowire.com Email [email protected] to begin your trial!

For general inquiries, email [email protected] Access PLS’ archive for previous oilfield services news OilfieldServices 10 March 23, 2017 Capital Ezra follows JV, EMAS Chiyoda New West borrows $6.0MM to buy fleet, restructure debt Subsea, into bankruptcy New West Energy Services is taking out a $4.8 million loan to acquire a fleet of oil Ezra Holdings, one of the largest and gas fluid transportation equipment. The Calgary-based company has also taken a $1.2 offshore drillers in Asia, has filed for million loan and forwarded the cash to its subsidiary, Bearstone Environmental Solutions, Chapter 11 protection in the US, only to repay a term loan with weeks after one of its JVs, EMAS Chiyoda Bearstone's previous lender. Loan sent to Bearstone so it can pay Subsea Inc., did the same. Ezra wholly off loan from another lender. NWE said it would use a six-year, owned subsidiaries EMAS IT Solutions 7.2% loan to acquire the fleet includes various combinations of bulk fluid transport and Ezra Marine Services are also part of trailers, tractors and tank trucks capable of hauling water for fracking operations as the petitions for reorganization. well as drilling and production fluids. Specifics of the fleet were not included. In addition to the common The same unidentified lender also issued a five-year loan at an interest rate of 7% struggles facing the offshore that Bearstone will use to pay off its prior term loan, and made available to Bearstone industry, Singapore-based Ezra was a revolving term credit facility of up targeted in a series of recent claims from CEO: 'Diversifies our services into the to $3.0 million. creditors and legal claims from business completions and production sectors.' Bearstone will first use the revolver partners. Forland Subsea filed a claim in to pay off the $620,000 balance on its prior credit facility. The new facility will run for February for a defaulted October payment three years and charge a rate equal to the Canadian prime rate plus 4.3%. of NOK25.5 million ($3.0 million) “This transaction further diversifies our services into the completions and for EMAS-AMC’s use of the Lewek production sectors of the oil and gas industry and allows us to take on larger projects,” Inspector in a project offshore Congo. VT NWE President and CEO Gerry E. Kerkhoff said. Halter Marine sued EMAS Chiyoda NWE has issued to the lender a common share purchase warrant that will entitle Subsea in February for a breach of loan, the lender to purchase up to 6 million common shares for $0.05 per share for three years. seeking $3,298,153.22, and sued Erza for $3,207,663.36 together with accruing Canadian frac services firms Source, Step postpone IPOs interest as the parent guarantor of the loan. Two oilfield services providers in Canada, Source Energy Services and Step EMAS Chiyoda Subsea is liquidating Energy Services, are not going forward with their planned initial public offerings, its Norwegian subsidiary. as the recent decline in oil prices resurrects bearish sentiment in Canadian capital markets. Both offerings, which would have raised a combined $450 million, were The last straw may have been a claim thought only a month ago to be predictive by Serimax North America seeking bellwethers of future Canadian oil and Source on March 2 praised renewed S$4,451,307.08 that was due under a demand in drilling. gad IPOs this year. guarantee granted by Ezra in connection Source, Canada’s largest fracking sand distributor, postponed its IPO after initially with an April 2016 promissory note between planning to raise $300 million, citing adverse market conditions. In the March 2 Serimax and EMAS Chiyoda Subsea. announcement, Source said renewed demand in drilling as oil prices recovered starting EMAS Chiyoda Subsea’s bankruptcy in 4Q16 prompted its pursuit of an IPO. The decline in prices since early March after filing exposes Ezra to other liabilities Saudi Arabia announced its output was once again above 10 MMbbl/d reportedly including $400 million in unpaid charters moved the company to downsize its planned offering and ultimately to its delay. and $500 million in loans guaranteed by The company originally expected to offer 15,000,000-17,647,059 shares at $17- Ezra. The JV is owned by Ezra (40% WI), $20 per share, implying a valuation of $902 million for the company. Two days before Chiyoda (35% WI) and NYK (25% WI). the announced delay, Bloomberg reported While EMAS Chiyoda Subsea has an Step planned to raise $200 million to that it cut the size of the offering due to order book of more than $1 billion, the pay down debt, fund capex. the recent decline in oil prices, planning dates of these projects are in flux, making to sell 16.7-19.2 million shares at between $13 and $15 each and an additional 500,000- utilization levels hard to calculate, the JV 600,000 in a secondary offering. Source had planned to use the proceeds to finance the said. A $90 million loan from Chiyoda acquisition of a new facility near Blair, Wisconsin, and pay down debt. and Subsea 7 will give the JV immediate Arc Financial-backed fracker Step Energy Services had planned to raise about liquidity, but the loan requires that a $200 million in a public offering, but the financing is now in doubt. Like Source, the reorganization plan be filed in 60 days. company opted to postpone the IPO after oil prices fell below $48/bbl in mid-March. EMAS Chiyoda Subsea said its Sources told Bloomberg News that the company lowered the price range for marketing Norwegian sub, EMAS-AMC AS, is not its shares from $14-$16 each to $10-$12 each on March 15. covered by the Chapter 11 filing and will The Calgary-based company planned to use proceeds to pay down debt, fund its be liquidated because “there are limited 2017 capital program and for general corporate purposes. prospects for the company in Norway in the foreseeable future.” Find more on the oilfield sector at To learn more about PLS, call 713-650-1212 Volume 07, No. 03 11 ServiceSector Contracts Buckhorn hired by XTO for Williston wastewater system Amec Foster awarded Buckhorn SWD Solutions will start construction next month of a water contracts by Centrica & Shell gathering and disposal system to support ExxonMobil sub XTO Energy in McKenzie County, North Dakota. The 87-mile pipeline and disposal system will Amec Foster Wheeler has continued provide water-gathering and disposal services for XTO operations in the Williston to do business, announcing two days Basin and will be built, owned and operated by Buckhorn. after Wood Group’s merger offer an While designed for XTO’s acreage, the system will also serve other extension to its engineering, operators’ wells in the area under the service agreement. The system will construction and project featured fixed, buried pipelines, which will include a gathering line to transport support contract by Centrica produced and flowback water for disposal or recycling. Financial terms or the length for its Morecambe Bay onshore and of the agreement were not disclosed. offshore gas production assets. The Founded in 2011, Colorado-based Buckhorn provides midstream gathering £60 million agreement extends the systems, saltwater disposal solutions and waste management for the oil and gas sector. contact until YE19.

Contracts include EPC management Wood Group lands Amec Foster Continued From Pg 1 around the world. At the time, Amec had annual revenue of $6.9 billion, while Foster Wheeler The company also reported in March reported $3.9 billion in sales in 2012. The result was a combined company offering an that it has reached a five-year global array of engineering, consulting and construction services not only for companies in enterprise framework agreement with Shell the oil and gas industry but also power generators, miners and infrastructure markets. Global Solutions International to provide However, $1.4 billion of the acquisition was financed, Amec bought Foster Wheeler for engineering, procurement and construction $3.2B in 2014. management for its downstream projects giving the company a debt across the world. It also had been awarded load that would plague it when oil plummeted from $100/bbl to $40/bbl. Amec Foster a FEED contract from Brunei Shell Wheeler CEO Samir Brikho, who masterminded the merger as Amec CEO, resigned in Petroleum for the rejuvenation of O&G January 2016 and was replaced on June 1 by Jonathan Lewis, a former Halliburton SVP. assets in Brunei including the South China Since then, the company has been divesting assets including selling its core boiler business Sea. The Brunei contract will run until to Sumitomo Heavy Industries for £137 million in a deal announced on March 2. March 2022, with two one-year options Amec Foster Wheelerʼs revenue for YE16 was £5.44 billlion, down 8% YOY, for to extend. Financial terms on these two a trading profit of £318 million. Amec Foster Wheeler had $1.0 billion in debt in YE16. contracts were not released. In March, the company said it would suspend dividend payments and would launch a rights issue to raise $500 million through selling stock to current shareholders, money that the company would use to pay down the debt and further restructure the company. The merger agreement announced on After changing CEOs, Amec Foster March 13 suspended the rights issue. selling assets to pay down debt. The combined company will have net debt of $1.6 billion, representing 1.9x 2016 pre-merger EBITDA, which is “expected The industry’s to trend” to a preferred rate of 0.5x to 1.5x within 18 months, according to the only global announcement. In YE16, Amec Foster Wheeler had a debt-to-EBITDA of 3.3x. For Wood Group, the merger is appealing in that it could help insulate the energy multiple services multinational from oil and gas volatility. The O&G unit makes up 85% of Wood listing service Group but will be only 60% of the combined group, Wood Group CEO Robin Watson said. “The combination will create an asset-light, largely reimbursable business of greater PLS runs the oil and gas industry’s scale and enhanced capability, diversified across the oil and gas, chemicals, renewables, premier multiple listing service. environment an infrastructure and mining segments,” Wood Group Chairman Ian Amec Foster was going to suspend In 1987, PLS became the first listing dividend & seek to raise $500MM. Marchant said. service to specifically cater to the oil Watson will be retained as CEO, and Marchant will continue as chairman of the and gas industry. Subscribers can combined group. Wood Group CFO David Kemp will be the combined group’s CFO. access a customizable list of asset Four members of the Amec Foster Wheeler board will join the combined group’s board, types based upon their unique including Roy Franklin, who will be deputy chairman and senior independent director. acquisition criteria. Wood Group received financial advice from J.P. Morgan Cazenove and Credit Suisse. Amec Foster Wheeler was advised by Goldman Sachs International, BofA www.plsx.com/listings Merrill Lynch and Barclays.

For general inquiries, email [email protected] Access PLS’ archive for previous oilfield services news OilfieldServices 12 March 23, 2017

NORTH LOUISIANA SOUTH LOUISIANA SOUTH TEXAS CLAIBORNE PH., LA PROPERTY VERMILION PH., LA NONOP PACKAGE SOUTH TEXAS ROYALTY 28-Active Wells. 29-PDNP. 124-PUD. 2-Properties. 2,683-Net Acres. 36-Producing Wells. OAKS & E. HAYNESVILLE FIELDS ERATH FIELD PP LIVE OAK COUNTY PP Frac & Recompletion Upside. PP NONOPERATED WI AVAILABLE NONOP HORIZONTAL EAGLE FORD SHALE HORIZONTAL COTTON VALLEY PUD Gross Prod: 27 BOPD & 70 MCFD Eagleville Field EAGLE Mostly 100% OPERATED WI. ~400 AGENT WANTS OFFERS MAR 29, 2017 Varying ORRI Up To 2.46% Plus Small WI FORD Gross Production: >500 BOED BOED PP 9534 Gross Production: 2,036 BOED Net Production: ~400 BOED Net Production: 39 BOED (63% Oil) Net Proved Reserves: ~15.7 MMBOE CALL MULTIPLE TEXAS GULF COAST PP 2810 Net Proved PV10: ~$161,200,000 PLS FOR PP 9050DV/RE INFO SOUTH TEXAS PROPERTY UPPER GULF COAST PROPERTY Multiple Properties. Multiple Properties. NORTH LOUISIANA SALE PKG SOUTH TEXAS CONVENTIONAL GULF COAST CONVENTIONAL PP 3,235-Net Acres. 19-HBP Units. Predominantly Operated 76% Avg WI PP Predominantly Operated 65% Avg WI HAYNESVILLE SHALE Current Production: ~3,150 BOED Current Production: ~1,850 BOED ~1,850 Bienville, Caddo, DeSoto & Red River PP Proved Reserves: 21,644 MBOE ~3,150 Proved Reserves: 13,088 MBOE BOED Area With High Gas & Over Pressure Total Proved PV10: $102,964,000 BOED Total Proved PV10: $185,964,000 75 Undrilled & 28 Additional Locations. Sub Package To A Larger Offering Sub Package To A Larger Offering Upside In Extended Laterals & ReFracs ~400 AGENT WANTS OFFERS MAR 27, 2017 AGENT WANTS OFFERS MAR 27, 2017 NonOperated WI Available BOED PP 2101 PP 2102 Current Net Production: 2,138 MCFD Net Proved Reserves: 5.2 BCF SOUTHEAST TEXAS Net Proved PV9: $3,452,760 SOUTH TEXAS PP 9051DV/RE LAVACA CO., TX NONOP PACKAGE SAN JACINTO NONOPERATED SALE 8-Producing Wells. 5-NonProducing Wells. 8 Producing Wells. 31 Behind Pipe. OUACHITA PH., LA PROSPECT GULF COAST BASIN SHEPHERD FIELD 4-Producing Wells. 3,150-Net Acres. Behind Pipe & Numerous Drilling Locations PP Wilcox Consolidated Formation NORTH LOUISIANA TREND Avg 28% NonOperated WI; 22% NRI Up to 9.25% WI & 7.23% NRI PP Extension Of HZ Bossier Trend PP Gross Prod: 134 BOPD & 3,629 MCFD NONOP Est. Net Prod: 20 BOED (35% Oil) Bossier A Upper Red At 10,800 Ft. Operators: Strand Energy & Trio Consulting ~$14,000/Mn Avg. Net Cash Flow WILCOX Bossier A Lower Red At 11,050 Ft. 7-Mn Avg Net Cash Flow: $71,302/Month 53.3 MBO & 1.6 BCF in Net Proved Resrvs 30-Potential Wells. Total Proved PV10: $7,200,000 $2,703,910 Net Proved PV10 2D Seismic & Subsurface Geology BOSSIER Proved Producing PV10: $3,100,000 DEALS Third Party Engineering Report 100% OPERATED WI; 75-80% NRI CONTACT AGENT FOR UPDATE FOR Operated By Arcadia Operating LLC SALE Current Production: 330 MCFD OFFERS DUE APRIL 3, 2017 PP 2816DV BUYERS! NO Est Net Reserves: 13 BCF Per Well PP 8416DV COMMISSIONS Est Net Project Reserves: 390 BCF SOUTH TEXAS ASSETS FOR SALE Total Net PV10: $138,000,000 567-Operated Wells. 53,410-Net Acres. SOUTHEAST TX NONOPERATED SALE DHC: $1,700,000; Compl: $8,000,000 ZAPATA, STARR, HIDALGO, BROOKS 43 Producing Wells. PP 2585DV & LAVACA COUNTIES PP POLK LIBERTY & MONTGOMERY COS. Recompletion/Refrac & Workover Program Wilcox, Jackson, Yegua & Cockfield. RED RIVER PH., LA PROPERTIES Avg 87% OPERATED WI AVAILABLE 43 ~10% Avg WI & ~7.43% Avg NRI PP 55-Producing Wells. 7,886-Net Acres. Est Feb 2017 Net Prod: 43 MMCFED MMCFED Est. Net Prod: 52 BOED (99% Oil) COTTON VALLEY & HAYNESVILLE Est Next 12-Mn Cash Flow: $2,416,666/Mn $29,000/Mn Avg Net Cash Flow ~50 36-Operated Wells. 18-NonOperated. PP Total Proved Reserves: 333 BCFE 1.4 MBO & 157.8 MMCF Net PDP Reserves BOED 74 HZ Drilling Locations Identified. Total Proved PV10: $259,000,000 $2,121,430 Net PDP PV10 Additional Behind Pipe Recompletions ~9.5 AGENT WANTS OFFERS MARCH 2017 Third Party Engineering Report Operated & NonOperated WI Available MMCFED PP 2793DV Operator: Arcadia Operating, LLC Est Mar 2017 Production: 9.4 MMCFED OFFERS DUE APRIL 3, 2017 Est Mar 2017 Cash Flow: $705,000/Mn SOUTH TEXAS PROPERTIES PP 7771DV Net Proved Reserves: 412 BCFE ~250-Producing Wells. ~51,000-Net Acres. Net Proved PV10: $225,000,000 EAGLE FORD SHALE AGENT WANTS OFFERS MAR 29, 2017 All Rights & All Depths PP PP 2857DV Lower Eagle Ford, Austin Chalk & Buda Acreage Is 93% Held By Production. 4,400 >275 Gross Drilling Locations Identified. BOED Operated & NonOperated WI Available The industry’s Current Net Production: 4,400 BOED Fracture only global multiple Production Is >90% Oil through your listing service 12-Mn Cash Flow: ~$3,750,000/Month CONTACT AGENT FOR MORE INFO data barriers www.plsx.com/listings PP 2560DV dataportal.plsx.com Find more listings at No commission! List today, call 713-650-1212 Volume 07, No. 03 13 ServiceSector Contracts Diamond Offshore wins in rig dispute over Petrobras Seadrill takes $170MM Brazilian NOC Petrobras illegally canceled the contract for Diamond Offshore settlement over semisub Drilling’s Ocean Valor deepwater rig in August, a Brazilian appellate court has ruled. The contract was to pay Diamond $455,000/day through October 2018. Seadrill will receive $170 million Petrobras said it was terminating the contract last August, but in cash to settle an arbitration battle with Diamond won a preliminary Hyundai Samho Heavy Industries over injunction in September, Appellate court says Ocean Valor's the delayed construction of the West contract illegally canceled. declaring that the contract would stay Mira, an ultra-deepwater in force until it expired or further court action. The Brazilian company filed an semisub. As part of the appeal on Oct. 4, but the appellate court ruled in Diamond’s favor on March 15. deal, HSDI will sell the West Mira to Petrobras has the option of appealing to Brazil’s Superior Court of Justice. Seatankers, an asset-holding company Diamond Offshore has faced many of the same woes as others in the created by John Fredriksen, representing industry, including reporting a YE16 net loss a new venture by the Seadrill chairman. of $415.2 million, 52% worse than in YE15, January 14, 2015 • Volume 07, No. 01 InternatIonalDeals Serving the marketplace with news, analysis and business opportunities Cash payment ends arbitration battle on $1.60 billion in YE16 revenue, down a BP in talks with Rosneft to buy 20% in Siberian field International M&A falls 21% Russian companies blocked by sanctions on other oil & gas deals to $60 billion in 2014 Rosneft is reportedly in talks to sell BP a direct 20% WI in subsidiary Taas- Global upstream deal activity saw an Yuriakh Neftegazodobycha, the license holder of its Srednebotuobinsk oil and gas impressive 30% rise in terms of total deal field in Eastern Siberia. The deal would result in an effective 35.8% stake in the field for value to US$185.0 billion during 2014. a year early. third from YE15. However, Diamond has a BP, which is the Russian company’s largest private shareholder with 19.75% However, this upswing was due entirely InternationalDealsequity. According to unnamed sources cited by Russian daily Kommersant, to skyrocketingFeb. acquisition 16 the negotiations could result in activity in the US (up 79% to Current ~20,000 bopd projected up a US$700-800 million deal with closing $98.3 billion) and Canada (up 400% to ~100,000 bopd by 2017. expected in early 2015. 132% to $26.6 billion). Looking just at significant project backlog. For example, five of Rosneft acquired an initial 35.3% WI in Taas-Yuriakh for $444 million during the the international picture, activity was development phase in March 2012 and increased its stake to 100% WI in October 2013, down 21% in terms of deal value to $60.0 The US offshore driller ordered the shortly after reaching first oil. At that time the company projected 2014 production billion and 30% in terms of deal count Petrobrasof 1.0 million tonnes (~20,000 bopd), increasing$5.2 to 5.0 mtpa billion (~100,000 bopd) by (including gas transactions pipewithout disclosed - 2017. It also assigned the field C1+C2 reserves of 134 million tonnes of liquids (~1.0 values) to 399. its eight Gulf of Mexico rigs are under contract, Bbbl) plus 5.47 Tcf. Continues On Pg 8 Out of the top 30 international deals, Chinese group offers $100 million for Kazakh oil project not one buyer was a US producer. West Mira in 2Q12 with a contracted lineContinuing sale 2014’s trend of non-traditional blocked. Chinese oil and gas buyers entering the Major increases in deal value were E&P space into the new year, a consortium led by publicly listed Xinjiang Zhundong seen in Asia (69% to $8.0 billion), the Petroleum Technology Co. plans to acquire the Galaz contract area in central Kazakhstan South Pacific (442% to $11.3 billion), three until 2020. for US$100 million in cash and debt. The oil development is operated by South Korea’s and the North Sea/Europe (118% to LG International (40% WI) partnered with London-listed Roxi Petroleum (34.22%) $12.7 billion). However, these increases delivery date of Dec. 31, 2014. The unit and Baverstock (23.78%), a company controlled by Roxi board member and top were overwhelmed by a combined $35.0 shareholder Kuat Oraziman. Consortium led by publicly listed billion decrease in activity in Africa The 44,200-acre block in oilfield service firm Xinjiang Zhundong. (54% to $9.6 billion) and the FSU (72% Kyzylorda province contains to $9.0 billion). Continues On Pg 15 the Northwest Konys project plus exploration upside on the east side of the Karatau fault was not delivered at that time so Seadrill system. Seventeen wells have been drilled at Galaz since 2008 and Northwest Konys FEATURED DEALS pilot production began in January 2012. Five wells are on extended test producing an aggregate 1,000 bopd and four more are being prepped to begin production testing. THAILAND CONCESSION FOR SALE Under the non-binding heads of terms, the Chinese consortium will acquire JV firm 1-Onshore Concession. Schlumberger, Subsea 7 receive EPC contractsGalaz & Co. for $50.4 million worthcash plus $49.6 million in debt. Continues up On Pg 11 PHETCHABUN to BASIN $1B cancelled the contract. Arbitration 2-Onshore Exploration Assets. PP 8-Production Licenses. Seplat’s Afren takeover bid threatened by Kurdish writedown Contains 12 Individual Oil Fields. Just days after Nigerian oil firm Seplat Petroleum Development confirmed 20% WORKING INTEREST FOR SALE 4,000 making a preliminary approach to acquire Afren, the target company’s takeover Gross Production: ~4,000 BOPD BOPD Schlumberger company OneSubsea and Subsea 7 have received engineering,2P Net Reserves: 30 MMBOE prospects took a hit when it released a drastically reduced resource estimate for its Barda Rash oil development (60% WI) in the Kurdistan region of Iraq. CONTACT AGENT FOR MORE INFO proceedings began in October 2015, with PP 6089 Based on reprocessed 3D seismic and its drilling campaign, the report eliminates 190 MMbbl of previously estimated proved plus probable oil SURINAME OFFSHORE BID ROUND reserves and reduces the 2C resource 3-Blocks. ~6,420,000-Acres.(26,000 km2) procurement and construction (EPC) contracts that are estimatedNew Bardato Rash estimate be eliminates worthSURINAME-GUYANA BASIN up to estimate by 80% to 250 MMbbl 2P reserves, cuts 2C by 80% to 250 MMbbl. from 1,243 MMbbl. Huge Prospective Blocks B Seadrill seeking the $168 million in pre- Water Depths:~50-7,380 Ft. The previous estimate reported in 2012 had been the basis from the London- --- (15-2,250m) based company’s approved development plan. It is now considering strategic WORK PROGRAM BIDDING ROUND BID options for the project in light of the update. Afren’s stock fell 30% on the London Proven Petroleum System ROUND $1.0 billion from BP to work on its deepwater Mad DogStock Phase Exchange to close at 27.31 pence2 on developmentJanuary 12, the day the update was Production: 16,000 BOPD in the released—eliminating the bump experienced when rumors of the takeover bid broke Bid Round is Closing January 30, 2015 delivery installments to the South Korean CONTACT PETROLEUM MANAGER in mid-December. The news comes one week ahead of the January 19 deadline for BR 5103PP Seplat to make a formal offer for Afren. Continues On Pg 6 shipbuilder plus interest. Gulf of Mexico. The EPC deals will establish the underwater framework forAll Standard Disclaimers BP’s & Seller Rights Apply. $9 Arbitration proceedings were billion project. OneSubsea was OneSubsea lands the SPS, Subsea 7 expected to conclude in 1H18. The early gets the SURF. deal could help the driller as it struggles awarded the subsea production systems with the industry downturn and debt (SPS) contract, which includes subsea manifolds, trees, control system, single and restructuring. However, Seadrill will multi-phase meters, water analysis sensors, intervention tooling and test equipment take a non-cash impairment of $44 for producer and water injection wells associated with the project. million to reflect the difference between Subsea 7 will provide the subsea umbilicals, risers and flowlines, known as the carrying value of the West Mira the SURF contract, and associated subsea architecture. The project will also be the receivable and the cash payment. first substantial project in the US to use Subsea 7’s Swagelining polymer-lining technology. Installation is scheduled Seadrill chairman to start new company Schlumberger, Subsea 7 collaborate for 2019 and 2020. under a Subsea Integration Alliance. using canceled rigs. Subsea 7 said the value of the Seatankers also has an option to buy contract was $300-500 million. RNC Capital analysts estimated Schlumberger’s from HSHI the Bolstand Dolphin, a rig that award at $250-500 million. Subsea 7, Schlumberger and OneSubsea regularly work Fred. Olsen Energy ordered but canceled together on SPS and SURF projects under a Subsea Integration Alliance. when delivery was delayed, for $400 Wood Group awarded $85 million in Mad Dog 2 work— million. Fredriksen intends to transfer the Wood Group received two contracts to offer engineering services to support rigs to Northern Drilling, a company he Mad Dog 2’s floating production unit, which Wood Group designed. In an$80 registered in Norway on March 20. Media contract, Samsung Heavy Industries reports are he intends to buy distressed contracted Wood Group to provide Mad Dog 2 could include up to 14 production wells. rigs through Seatankers, and transfer them detailed engineering and procurement to Northern until he can sell them for a services for the topsides of the unit. Wood Group’s Specialist Technical Solutions profit. Seadrill will operate the rigs and be business also was awarded from BP a $4.89 million contract for subsea engineering given the right to match any sale offer. and project management services. Mad Dog 2 will include a new floating production platform with a capacity of 140,000 bbl/d from up to 14 production wells. The second Mad Dog platform will Transactions Metrics be moored approximately about 190 miles south of New Orleans in 4,500 ft of water. and Comparables Oil production is expected to begin in late 2021. www.plsx.com/ma For general inquiries, email [email protected] Access PLS’ archive for previous oilfield services news OilfieldServices 14 March 23, 2017

MULTISTATE PERMIAN PERMIAN / WEST TEXAS MULTISTATE MIDCONTINENT WEST TEXAS SALE PACKAGE WEST TEXAS PROPERTIES FOR SALE OKLAHOMA & TEXAS PANHANDLE 70-Producing Wells. 24,386-Net Acres. 10-Wells. 1,600-Total Acres. 1,900 Wells. Production Plus Net Minerals CRANE, PECOS & TERRELL COS. REAGAN & IRION COUNTIES PP ANADARKO & HUGOTON CENTRAL BASIN PLATFORM PP SPRABERRY PLAY 830,000 Acres Plus 49,000 Net Minerals PP Upper Devonian, Atoka, Strawn, Barnett, Midland Basin Vertical Targets & Remedial & Infrastructure Upside Woodford, Canyon, Montoya & Clearfork Wolfcamp Shale Horizontal Targets SPRABERRY Workover Opportunities ~50 Potential For HZ Development In ~830 160 Acre Spacing. OPERATED WI AVAILABLE MMCFD Woodford & Barnett BOED OPERATIONS NEGOTIABLE Current Production: 48 MMCFD (91% Gas) 50-100% OPERATED WI; 37.5-75% NRI Current Production: ~6.6 BOPD Acreage Is Held By Production. Recent Net Production: 828 BOED CONTACT SELLER FOR MORE INFO CONTACT AGENT FOR MORE INFO Expected Cash Flow: $550,000/Month PP 2808DV PP 2669DV Total Proved Reserves: 10,191 MBOE CALL Total Proved PV10: $89,955,000 PLS FOR REEVES CO., TX PROPERTY NORTH TEXAS AGENT WANTS OFFERS MAR 28, 2017 INFO 1-Producing Well. ~3,108-Net Acres. PP 2780DV WEST TOYAH UNDEVELOPED LEASE PP BARNETT SHALE ASSET SALE PERMIAN BASIN 209-Wells. ~35,000-Net Acres. WEST TEXAS SALE PACKAGE 512-Net Acres Held By Production. ~120 WISE, DENTON & TARRANT CO., TX PP 49-Total Properties. OPERATED WI AVAILABLE BOED ~250 Remaining Barrett HZ Locations PERMIAN BASIN PP Gross Prod: 28 BOPD & 568 MCFD Horizontal & Vertical Refrac Opportunities Multiple Counties CONTACT AGENT FOR INFO BUYERS! NO 90% OPERATED WI; 69% NRI ~100 4 Properties In Pecos County ~110 PP 9170DV COMMISSIONS Current Production: ~100 MMCFED MMCFED Varying Operated & NonOperated WI BOED Production Is 85% Gas Gross Prod: 63 BOPD & 291 MCFD WEST TEXAS SUB PKG FOR SALE Operating Cash Flow: $4,166,666/Month CONTACT AGENT FOR MORE INFO 56 Active. 21-SI. 2-SWD. 2 Inj. 9-Tas CONTACT AGENT FOR UPDATE PP 9686 SOUTHERN PERMIAN BASIN PP PP 2878DV 6,350 Gross Acres. 4,760 Net Acres PERMIAN / NEW MEXICO Extensive Development Potential BARNETT SHALE PROPERTIES Garza, Andrews, Howard, Pecos, 100,000-Acres (HBP). SOUTHEAST NEW MEXCO SALE PKG Midland, Upton, Reagan, Sterling, Irion. DENTON & WISE COUNTIES PP 19-Producers. 7-Shut In. 2,650 Net Acres. Also Edwards County. Acreage Is 90% Operated. LEA, CHAVES & EDDY COUNTIES PP ~72% OPERATED WI; ~56% NRI OPERATED WI AVAILABLE ~70 PERMIAN BASIN Gross Prod: 164 BOPD & 584 MCFD Current Production: 67 MMCFD MMCFD Extensive Development Potential Net Production: 64 BOPD & 351 MCFD 55% Dry Gas, 42% Natural Gas & 3% Oil ~93% OPERATED WI; ~73% NRI SELLER WANTS OFFERS BY APR 2017 2016 Cash Flow: ~$2,666,667/Month PP 9872DV DEALS Gross Production: 18 BOPD & 93 MCFD CONTACT AGENT FOR MORE INFO FOR Net Production: 14 BOPD & 59 MCFD PP 2663DV SALE SELLER WANTS OFFERS BY APR 2017 YOAKUM CO., TX PROPERTY PP 9873DV 3-Total Wells. ~22,291-Net Acres. JOHNSON CO., TX PROPERTIES PERMIAN BASIN - SAN ANDRES PLAY PP 25-Total Wells. PERMIAN / WEST TEXAS 1-Producing Well. 2-TA’d Wells. BARNETT SHALE - MIDCONTINENT PP Limited From Surface To 5,981 Ft. Or SAN 5-Operated Well. 20-NonOperated Wells. CONCHO CO., TX PROPERTY 100% OPERATED WI; 75-81.25% NRI ANDRES Operated & NonOperated WI Available BARNETT 6-Properties. PP Current Production: 35-40 BOPD Operated Production: ~587 MCFD DON PFLUGER FIELD CONTACT AGENT FOR UPDATE NonOperated Production: ~5 MCFD Producing, ShutIn & SWD Wells. PERMIAN PP 2654DV CONTACT SELLER FOR MORE INFO 100% OPERATED WI; 75% NRI PP 2809 Gross Prod: ~123 BOPED & 71 MCFD KANSAS AGENT WANTS OFFERS APR 5, 2017 NORTH TEXAS ASSETS FOR SALE PP 2236 KANSAS PRODUCING PROPERTY 1,346-Producing Wells. 73,000-Net Acres. 574-Producing Wells. 90,256-Net Acres. BARNETT SHALE LOVING CO., TX PROPERTY MONTGOMERY & WILSON COUNTIES All Major Phase Windows Of Barnett PP 22-Producing Wells. ~1,477-Gross Acres. CHEROKEE BASIN PP Acreage Is 93% Held By Production PERMIAN BASIN Mississippian Limestone Upside >1,300 HZ Development Locations Surface To Base Of Cherry Canyon PP Additional Upside In Several Horizons Varying Operated & NonOperated WI 185 Target Depth 6,800 Feet Downspacing Opportunities Across Leases ~7.0 Jan 2017 Production: 185 MMCFED MMCFED ~28 Locations To Develop On 20-Ac Spacing 70 Leases Can Deliver Avg 85% NRI MMCFED Production Is 65% Gas Develop Infill Drilling Locations On Lease BOED Net Production: 7.33 MMCFED Est 2017 Cash Flow: $9,916,666/Month Avg 76.8% OPERATED WI; 77.46% NRI Projected Feb 2017 Cash Flow: $368,300 Total Reserves: 2,875 BCFE Current Production: 65 BOPD & 30 MCFD PDP Reserves: 22.9 MBO & 21.6 BCF Total PV10: $1,067,000,000 CONTACT SELLER FOR MORE INFO 3rd Party Gas Revenue: ~$40,000/Mn CONTACT AGENT FOR UPDATE PP 2841DV CONTACT AGENT FOR UPDATE PP 2587DV PP 2790DV

Find more listings at No commission! List today, call 713-650-1212 Volume 07, No. 03 15 ServiceSector Contracts Baker Hughes, GR Energy Services reach services agreement ■■ Aker Solutions will provide Baker Hughes and GR Energy Services will share products and geoscience engineering services for the upgrade of the capabilities under a new preferred services agreement. Providing wireline services semi-submersible Njord A in Norway for in the New Mexico, Texas and Louisiana oilfield markets will be the initial focus NOK 1 billion ($118 million). Platform of the collaboration between the global oilfield services supplier and the completion operator Statoil has exercised and production solutions company based in Sugar Land, Texas, with perforating an option from an April 2016 services as part of the agreement, under which Aker agreement as well. Global giant, privately held Texas company connected by agreement. will act as a subcontractor of Kvaerner One of the tools GR for the engineering, procurement and offers is an addressable wireline release tool that safely and efficiently disconnects construction of the project. "This is the from a stuck tool assembly. GR said the tool eliminates the parting of the wireline largest offshore platform in Norway to during an overpull, which can leave hundreds of feet of cable in the well. The privately have been brought to shore for a total held company also said it has an ultra-efficient plug-and-play perforating system that upgrade," said Aker Solutions CEO Luis offers efficient select-fire perforating and is simple and quick to assemble. Araujo. Delivery is scheduled for 2Q20. “This agreement will allow our customers greater efficiency, flexibility and ■■ TechnipFMC will perform the opportunity to lower costs, by significantly expanding the availability of Baker Hughes’ project management for the onshore leading technologies and the service portfolio available from GR Energy Services,” part of a development offshore Ghana. said Billy Anthony, SVP of wireline for GR. The contract was awarded A&D by Eni Ghana E&P Ltd., a subsidiary of Eni, Ghana Trican buys fellow Canada fracker Canyon Continued From Pg 1 National Petroleum Co. and Vitol, At least two-thirds of Canyon and one-half of Trican shareholders need to approve the and covers the Offshore Cape Three deal. The merger, which is also subject to regulatory approval, is expected to close in H2. Points development of Sankofa field. The horsepower of both companies is completely committed, and Trican President TechnipFMC will do the engineering, and CEO Dale Dusterhof said “strong activity” is expected in H2. “Job sizes and supply, construction and commissioning horsepower per job continue to increase and the combined company will have ability of the onshore receiving facilities in to respond to these changes in the market," he said. Sanzule. The project is scheduled for Trican foresees $20 million a year in pre-tax savings when the completion in mid-2018. Financial terms companies are fully integrated next year. Expected synergies include additional leverage were not released. on the combined company's fixed-cost ■■ TechnipFMC, Subsea7 and Aker structure, reducing corporate overhead Trican CEO: Deal in preparation for ‘strong activity’ in H2. Solutions has received FEED contracts for and optimizing operational facilities. VNG Norge’s Pil & Bue project offshore The acquisition is a change of direction for Trican, which spent much of 2016 in Norway. The SURF (subsea structures, divestment mode. Trican sold its US pressure-pumping business to Houston-based umbilicals, risers and flowlines) contract well-completion services company Keane Group for C$267 million and a 10% went to Subsea7 and TechnipFMC, while interest in Keane Group Holdings, which it converted to $28.4 million after Keane’s the SPS (subsea production systems) IPO. The Calgary-based company also sold its completions tools business to Houston- contract was awarded to TechnipFMC based National Oilwell Varco last year for C$41 million, plus NOV stock that Trican and Aker Solutions. Financial details sold for C$27.9 million. Trican said it were not disclosed. Trican sold completion tools business would use that money to pay down debt. and US fracking business last year. ■■ Australian consultant WorleyParsons The sales of 2016 reflect a growing has reached a long-term agreement with focus on Western Canada fracking for Trican. Activity in the Deep Basin and Montney Chevron for engineering and procurement and Duvernay shale formations generated 70-75% of Trican revenue in 4Q16. services. The multi-regional agreement Canyon focuses its operations on the including numerous WorleyParsons Western Canada Sedimentary Basin with Canyon raised C$63.0 million in a stock issue to pay down debt in 2016. locations involves use in all engineering two business lines: fracking services and full- phases in Chevon’s capital projects from service fluid-management and hauling services. It spent the downturn cutting costs, including conventional engineering to final design. a March suspension of its dividend, and held a C$63.0 million stock issue to reduce debt. Financial terms were not released. The agreement is a union of “similar businesses and shared values,” said Canyon President and CEO Brad Fedora. “We envision a combined company that will set the Complete standard for service quality, field execution and operating efficiencies,” said Fedora, transaction who will join the Trican board of directors once the transaction closes. services for sellers RBC Capital Markets served as financial advisor to the Trican board, while www.plsx.com/advisory Peters & Co. advised Canyon. For general inquiries, email [email protected] Access PLS’ archive for previous oilfield services news “Opportunity is a reflection of information.”

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Information. Transactions. Advisory. Volume 07, No. 03 17 ServiceSector People & Companies Technology ■■ Trinidad Drilling CEO Lyle Baker Hughes bills its adaptive drillbit as cure for ‘stick/slips’ Whitmarsh left the company on March 12 Baker Hughes has commercially released the first adaptive drill bit, which it says to pursue other opportunities, the Calgary- can give operators faster, more consistent rates of penetration and longer bit and tool based company said. Trinidad President life. The TerrAdapt automatically changes its aggressiveness based on the rock it is Brent Conway will assume the attacking, helping drillers avoid “stick-slip” situations that can damage CEO duties as well. Conway the bit and other components. joined Trinidad in 2001 as CFO. Current drill design features a fixed depth-of-cut (DOC) setting In 2008, he was also named EVP and put optimized for a single rock type, causing the bit to perform erratically when rock types in charge of the company’s operations. change, causing vibrations. When the bit’s bite is too aggressive, the vibrations will He was appointed president in 2012. cause the bit to stop rotating, or “stick,” while the drill pipe behind continues to wind Trinidad issued a statement that it wished like a spring behind the bit until it releases, or “slips,” and spins uncontrollably. Whitmarsh, also was also on the board of The TerrAdapt bit self-adjusts its DOC elements that extend to select the optimal directors, well in this future endeavors. DOC setting based on a formation, preventing vibrations when the bit transitions between ■■ Halliburton named its EVP and rock types. When the “stick-slip” risk has passed, the elements retract, allowing the bit to general counsel, Robb L. Voyles, as return to optimal speed. The elements also absorb sudden shocks to the bit face. interim CFO. Voyles replaces Mark McCollum, who left the A&D CFO position to become Borr buys TransOcean's jackup fleet Continued From Pg 1 CEO at Weatherford International. The For Transocean, the deal not only allows the Switzerland-based company to avoid company has engaged an executive search the obligations for the jackups on order but also lets a company, whose website is firm to find a permanent replacement. Deepwater.com, to focus on its 46 floaters, which include 30 ultra-deepwater drilling ships. Halliburton also promoted Lyn Beaty to However, the deepwater drilling market is extremely depressed and activity for jackups has SVP of finance. Beaty, formerly SVP of increased, although analysts still internal assurance services, has been with see that market as oversupplied. the Halliburton finance department for Transocean’s Fleet Composition Borr will make Before Sale more than 30 years. Transocean’s remaining yard payments ■■ Kevin G. Cramton and José R. Mas to Keppel Fels, which is constructing the Current Fleet were appointed to the board of directors five newbuilds, including a $275 million % of Fleet (Rig Count - 56) at Helmerich & Payne, effective March down payment. Keppel sub Offshore and 18% 1. Cramton is operating (10) partner at private equity 17 jackups in deal include five stacked 18% 52% (29) and five on order. (10) firm HCI Equity Partners, 12% executive chairman of the board of Marine has signed an HOA, and the board (7) Atlantix Global Systems, a leading has approved the transfer of the contracts. reseller of IT hardware and service, and Transocean still owes $1.1 billion in Additionally Under Construction: former CEO of Cardone Industries, the newbuild payments on the rigs, according •5 UDW Drillships largest remanufacturer of automotive •5 High-Specification Jackups to BMO Capital Markets. Under the deal, Previously retired 30 floaters aftermarket components. Mas has been each rig is priced at $216 million. the CEO of infrastructure construction Ultra-Deepwater Floaters Transocean ordered the five KFELS Harsh-Environment Floaters company MasTec since 2007. Deepwater & Midwater Floaters ■■ Dril-Quip has named Jeffrey J. Bird Transocean left with 46 floaters High-Specification Jackups its new VP and CFO. Bird, who started including 30 ultra-deepwater. Source: Transocean Dec. 13 Presentation via in March, replaces Jerry M. Brooks, who Super B Class jackups, designed to operate PLS docFinder has accepted the newly created position of in 400 ft of water and drill to 35,000 ft, for VP of Investor Relations. From December $1.1 billion. The five rigs were to be delivered in 2016 and 2017, but now the first three 2014 to February, Bird serves as EVP rigs will be delivered in 2017 and 2018, with the remainder coming in 2020. and CFO of Frank’s International, a To help raise the $1.35 billion to buy up Transocean’s jackups, Borr offered 228.60 provider of engineered tubular services million shares at $3.50 per share. The equity offering used an accelerated bookbuilding for oil and gas. Before moving to Frank’s, process from a limited number of investors. Clarksons Platou Securities, DNB Markets Bird was VP of Finance and CFO for and Fearnley Securities are joint bookrunners for the equity offering. Borr, which has Ascend Performance Materials, a been traded on the Norwegian OTC list since Dec. 19, said it intends to be listed on a chemicals and plastics provider. Brooks reputable stock exchange during 2017. has been with Dril-Quip for 25 years. For general inquiries, email [email protected] Access PLS’ archive for previous oilfield services news OilfieldServices 18 March 23, 2017

NORTH TEXAS OKLAHOMA MULTISTATE EASTERN NORTH TEXAS ASSETS FOR SALE OKLAHOMA ASSETS FOR SALE APPALACHIAN BASIN SALE PACKAGE 17-SWD Wells. ~80,000-Net Acres. 300,000-Net Acres. 58,000-NMA. 1,100+ Well Package. ~360,620-Net Acres. JACK, PALO PINTO & CLAY COUNTIES WESTERN ANADARKO BASIN PP WEST VIRGINIA, VIRGINIA & KENTUCKY PP FORT WORTH BASIN PP ~2,000-Producing Wells. ~147,631 Net Undeveloped Leasehold. Targets: Marble Falls, Barnett, Strawn, Woodford, Springer, Cleveland, Tonkawa 85 Royalty Interest & ORRI In 100+ Wells Conglomerate & Caddo Formations. & Conventional Granite Wash Formations MMCFD Varying Operated & NonOperated WI MULTI- 224-Behind Pipe Opportunities. ~2,600 Current Production: 85 MMCFD (71% Gas) Gross Prod: 4 BOPD & 17,404 MCFD STATE 398-PUD & 232-Probable Drilling Locations BOED CONTACT AGENT FOR MORE INFO Est 2017 Cash Flow: $450,000/Month ~100% OPERATED WI; ~75% NRI PP 2665DV 8-Mn Avg Net Income: $171,946/Month Dec 2016 Net Sales: ~2,600 BOED AGENT WANTS OFFERS MARCH 2017 Total 2P Reserves: 82,160 MBOE OKLAHOMA NONOP & MINERAL SALE PP 2840DV Total 2P PV10: $357,000,000 CALL 71-Wells. ~5,413-Net Acres. 1,259-NMA. CONTACT AGENT FOR UPDATE PLS FOR BLAINE, CANADIAN, DEWEY, ILLINOIS & INDIANA PROPERTY PP 2550DV INFO -- AND KINGFISHER COUNTIES PP 9-Wells. 1-SWD. 990-Net Acres. CORE STACK PLAY ILLINOIS BASIN NORTH TEXAS PROPERTY Meramec, Osage, Volatile, Woodford Upside 20% Of Acreage Held By Production PP Multiple Properties. 34 Producers on Exclusive Mineral Acreage ~2,075 Potential Upside. JACK & WISE COUNTIES PP 55+ OCC Work-In-Process Units BOED 100% OPERATED WI; 75-77% NRI Predominantly Operated 51% Avg WI NonOperated WI For Sale 6-Mn Gross Production: 87 BOPD EASTERN Current Production: ~650 BOED ~650 Current Net Production: ~2,075 BOED 9-Mn Avg Net Cash Flow: $61,734/Month Proved Reserves: 4,509 MBOE BOED CONTACT AGENT FOR UPDATE PDP Reserves: 236 MBO Total Proved PV10: $20,871,000 PP 2815M PDP PV10: $3,350,000 AGENT WANTS OFFERS MAR 27, 2017 All Wells Are Connected To SWDs - No PP 2148 OKLAHOMA NONOP PROPERTIES Trucking required. 220-Producing Wells. ~1,400-NRA. AGENT WANTS OFFERS APR 4, 2017 NORTH TEXAS SUB-PACKAGE MIDCONTINENT PP 2061DV 35-Wellls,. 20-Active 7-Injector. 7-Shut In. STACK & Arkoma Woodford Formations PP WILBARGER, BAYLOR & KING CO. Position In Rapidly Growing Plays. PENNSYLVANIA 2,470 Net Acres. PP Balance Of Legacy Production & HZ STACK Development Potential Identified Development Inventory. APPALACHIAN BASIN NONOP SALE ~79% OPERATED WI; ~65% NRI NONOPERATED WI FOR SALE DEALS 34-Active Wells. ~7,000-Gross HBP Acres. Gross Production: 56 BOPD & 170 MCFD Growing Cash Flow. FOR WYOMING CO., PENNSYLVANIA Net Production: 47 BOPD & 49 MCFD AGENT WANTS OFFERS APR 25, 2017 SALE ‘’CORE OF CORE’’ MARCELLUS SHALE PP PART OF A LARGER SALE PACKAGE PP 2824DV Lower & Upper Marcellus Production VDR Opening Early March 2017 12% NonOperated WI; 9.6% NRI SELLER WANTS OFFERS BY APR 2017 OKLAHOMA WATERFLOOD PROJECT Sept 2016 Net Production: 7,000 MCFD 7,000 PP 9871DV 5 Wells. ~1,760-Acres (5-Section Portions) Avg Net Cash Flow: $290,000/Month MCFD WOODWARD COUNTY PP Net PDP Reserves: 20.6 BCF OKLAHOMA Oswego Lime Interval. Net PDP PV10 Value: $13,800,000 Core Analysis, Study & Geological Mapping Total Net Proved Reserves: 54.2 BCF CADDO CO., OK PROPERTY 81.5% OPERATED WI; ~65% NRI MIDCON Total Net Proved PV10: $25,800,000 20-Active Wells. ~1,600-Net Acres. Gross Prod: 12 BOPD, 60 MCFD, 8 BWPD CONTACT AGENT FOR UPDATE SCOOP PLAY Seeking Divestment or Development Partner PP 2497DV BUYERS! NO Merchand At 6,500 Ft. PP CONTACT AGENT FOR UPDATE COMMISSIONS 60 Infill Locations. PP 8833WF INDIANA CO., PA ASSETS Defined By Subsurface Geology 116-Wells. 197,000-Acres. 99% OPERATED WI; 79% NRI SOUTHEAST OKLAHOMA PACKAGE NITTANY CBM PACKAGE PP Net Production: 280 BOPD 280 2,000+ Producing Wells. ~226,600-Net Acres. Significant Amount Of Undeveloped Acres Gross Production: 350 BOPD BOPD ARKOMA & WOODFORD SHALE Leases Can Deliver Avg 98.76% NRI Cash Flow: $375,000/Month ~12,900-Net Mineral Acres. PP Current Production: ~3.8 MMCFED CBM Est Net Reserves: 60-130 MBO Drill Depths From 7,000 Ft. To 11,000 Ft. No Drilling Commitments. Total Net PV10: $143,500,000 Identified & Quantified Woodford Development Pipeline System, 3 Compressor Site & DHC: $549,00; Compl: $1,025,000 Large Contiguous Leasehold Position ~35 Water Discharge Site & Permits. CONTACT SELLER FOR MORE INFO Varying Operated & NonOperated WI MMCFED CONTACT SELLER FOR MORE INFO PP 2732DV Avg Net Production: ~36 MMCFED PP 2299DV Dry Gas With Limited Water Production Monthly EBITDA: ~$750,000 Per Month SELLER WANTS OFFERS MAR 31, 2017 PLS brings The industry’s PP 2590DV transparency only global multiple to oil & gas listing service Fracture through your capitalization data barriers dataportal.plsx.com www.plsx.com/listings www.plsx.com/capitalize Find more listings at No commission! List today, call 713-650-1212 Volume 07, No. 03 19 ServiceSector

COLORADO NORTH DAKOTA WYOMING RIO BLANCO CO., CO ASSETS WILLISTON BASIN ASSETS FOR SALE NATRONA CO., WYOMING ASSETS 123-Active Wells. ~25,000-Net Acres. 197-Total DSUs. 282-Producing Wells. ~5,000-Net Acres. WHITE RIVER DOME DIVIDE & WILLIAMS CO., ND SALT CREEK - CO2 FLOOD PP Rights Are Mostly Surface To Mesa Verde PP 123,790-Net Contiguous Acres. PP Deep Inventory Of Low-Risk Upside Projects Acreage Is 98% Held By Production. 905-Gross & 471-Het Undeveloped Locations Multiple Pay Zones 41-High Graded 40-Acre Drilling Locations Varying Operated & NonOperated WI 10,400 Avg 22.5% NonOperated WI; 19% NRI ~2,300 Avg 99% OPERATED WI; 83% NRI MESA Current Net Production: 10,419 BOED BOED Forecasted Net Prod: ~2,300 BOED BOED Current Production: 60 BOPD, 5 MMCFD VERDE Proj’d 12-Mn Cash Flow: ~$7,250,000/Mn (100% Oil) As Of March 1, 2017 & 180 BNGLD Avg Original Oil In Place: ~18.3 MMBO Forecasted 12-Mn Cash Flow: $750,000/Mn Projected 2017 Cash Flow: $71,250/Mn CALL Net PV10: ~$299,000,000 AGENT WANTS OFFERS MAY 2, 2017 PLS FOR CONTACT SELLER FOR MORE INFO INFO AGENT WANTS OFFERS APR 26, 2017 PP 2608DV PP 2614DV PP 2971DV CALIFORNIA MONTANA UTAH ORANGE CO., CA PROPERTY VALLEY CO., MONTANA ASSETS CARBON & EMERY CO., UT PROPERTY 6-Wells. 41-Wells. 4-SWD. 11,532-Net Acres. 2-Federal Units. 185,000-Net Acres. ESPERANZA FIELD CONVENTIONAL OIL STACKED PAY ZONES Kraemer At 2,510 Ft. - 2,995 Ft. PP Charles C & Nisku Formations PP Moenkopi Target Zone At 4,000’ - 7,000’ PP 88.75% OPERATED WI AVAILABLE Acreage Is 76% Held By Production Additional Targets In Kaibab & Doughnut Net Production: 13 BOPD OPERATED 31 Total Shallow 3P Locations Identified Multiple Oil-Saturated & Fractured Cores Operated By: SACD 100% OPERATED WI AVAILABLE CONVENTIONAL 3D Seismic Data Available MOENKOPI Monthly Cash Flow: $21,000/Mn BUYERS! NO Est Feb 2017 Net Prod: 160 BOPD ~97% OPERATED WI; 80% NRI Est Net Reserves: 1,084 MMBO COMMISSIONS Estimated 3P Reserves: 2.9 MMBO Current Production: 10-15 BOPD Est Project Reserves: 2,076 MMBO Estimated 3P PV9: $26,400,000 CONTACT SELLER FOR MORE INFO DEALS CONTACT SELLER FOR MORE INFO CONTACT AGENT FOR UPDATE PP 2912DV FOR PP 2703 PP 2100DV SALE GRAND CO., UT ASSETS VENTURA CO., CA PROPERTY MULTISTATE ROCKIES 17-Producing Wells. ~121,890-Net Acres. Producing Wells. SOUTHERN UINTA BASIN SESPE/ BARDSDALE OILFIELDS COLORADO & UTAH PROPERTIES Proven Shallow Oil Resource Play PP OPERATED WI AVAILABLE PP 387-Producing Wells. 331-Injection Wells. Deeper Granite Wash/Arkose Potential Current Production: 100 BOPD 100 ANETH FIELD - PARADOX BASIN PP 3 Federal Exploratory Units. GRANITE CONTACT SELLER FOR MORE INFO BOPD 44,400-Gross Acres. 28,300-Net Acres. 100% OPERATED WI; 80% NRI WASH PP 2947 OPERATED WI AVAILABLE ~6,000 Legacy Production: 8 BOPD & ~400 MCFD Current Production: 6,086 BOED (93% Oil) BOED Gas Processing Facility, Compressor GULF OF MEXICO 2015 Proved Reserves: 25.5 MMBOE Stations & ~75 Miles Of Gas Gathering Lines PV10: $160,000,000 CONTACT SELLER FOR MORE INFO GULF OF MEXICO ASSETS CONTACT SELLER FOR MORE INFO PP 2914L 8-Producing Wells. 10-NonProducing Wells. PP 2165 OFFSHORE LOUISIANA PP WYOMING W. Atwater Foldbelt - Neptune Field NORTH DAKOTA Water Depth Across Field Ranges From CARBON CO., WY ASSETS FOR SALE 4,300’ Above The Escarpment To 6,500’ GOM NORTH DAKOTA NONOP PACKAGE 105-Producing Wells. 19,637-Net Acres. 15% NonOperated WI; 13.25% NRI Multiple Wellbores. ATLANTIC RIM - COAL BED METHANE Gross Prod: 7,757 BOPD & 6,024 MCFD MCKENZIE & DUNN COUNTIES CHAPTER 11 BANKRUPTCY PP 5-Mn Avg Net Income: $1,216,108/Mn BAKKEN & THREE FORKS PP Shallow Wells Drilling In Mesaverde Est Net Proved Reserves: 1,378 MBOE Drilled But Uncompleted Wells Included. Potential In Sussex/Shannon, Niobrara AGENT WANTS OFFERS MARCH 2017 NONOPERATED WI AVAILABLE WILLISTON & Lewis Formations PP 2879 CONTACT SELLER FOR MORE INFO Varying Operated & NonOperated WI PP 2681 Net Production: 9.5 MMCFD BANKRUPTCY MOSTLY TEXAS Total Proved Reserves: 45.1 BCFE WILLIAMS CO., ND PROPERTY Total Proved PV10: $12,700,000 TEXAS ASSETS FOR SALE 6-Producing Wells. 1-NonProducing Well. CONTACT AGENT FOR UPDATE Multiple Areas. BAKKEN - THREE FORKS PP 2709DV PERMIAN BASIN PP 4-Middle Bakken Wells. 3-Three Forks Wells. PP Conventional & Enhanced Oil Recovery 17 PUD Locations Identified. Midland & Delaware Sub-Basins, Central Varying NonOperated WI & NRI The industry’s Basin Platform & North-West Shelf PERMIAN Gross Prod: 1,877 BOPD & 4,341 MCFD NONOP only global multiple Val Verde & Maverick Basin In West Texas 10-Mn Avg Net Income: $15,159/Month OPERATIONS NEGOTIABLE CONTACT AGENT FOR UPDATE listing service CONTACT SELLER FOR MORE INFO PP 2365DV www.plsx.com/listings PP 2564 For general inquiries, email [email protected] Access PLS’ archive for previous oilfield services news Bringing transparency and clarity to an opaque marketplace.

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