The Marcellus might need fewer rigs than previously thought. At Enercom in Denver last week, Cabot Oil & Gas indicated that drilling on synthetic muds should lead to higher drilling efficiencies.  Consequently, the company believes it can work through its Marcellus program with fewer rigs. Pilot tests are expected to get underway this year.

 

Among other takeaways from Enercom reported in The Unconventional Drilling Report, Atlas is planning a 3 well exploratory program to kick off the new Collingwood shale play this year.  The wells will be drilled in three western counties of Michigan.  A rig was secured for the 3-well program; it has to be brought in from another area. The company didn't say, but a rig from the Marcellus region wouldn't be a total surprise, given the operator.

 

Also evident at Enercom were signs that the Montana Bakken is clearly gaining attention.  Brigham Exploration is active in Richland County.  One interesting nugget:  It appears the rock is harder in western areas of the Bakken.  

Baker Hughes, Inc. has received notice that the Antitrust Division of the U.S. Dept. of Justice has approved the purchase of two of its stimulation vessels, the HR Hughes and the Blue Ray, and certain other assets used to perform sand control services in the Gulf of Mexico, by Superior Energy Services.  These assets are being divested in connection with the acquisition of BJ Services Co.

 

Deep Down, Inc. has teamed up with Core Industries to permanently locate a 3,200 metric ton umbilical storage carousel system at Core’s deepwater port facility near Mobile, Ala.  The carousel is currently under construction and will be ready in fourth quarter 2010.

 

Cal Dive International, Inc. announced the departure of Bruce P. Koch, the company’s Chief Financial Officer. Brent D. Smith, the company’s current Vice President-Finance, has been promoted to Executive Vice President, Chief Financial Officer, and Treasurer of the company.

 

DeepFlex announced one of its all-composite flexible pipes has been used by Saipem to commission a deepwater export line offshore Brazil for Petrobras. The Saipem vessel Normand Cutter deployed the DeepFlex downline in 4,950 feet of water.

 

Intermoor, Inc. has named David Cobb Vice President, Business Development, based out ...

Jackup Rowan Gorilla II completed its short P&A in West Cameron Block 561, completing its contract with Devon Energy.  The rig is now on location in Vermilion Block 348 for the start of a newly awarded 14-day workover with ERT.  At present, Rowan has no follow-up work for the rig, but the company is in discussions with a number of operators.  Also, jackup Rowan EXL-I has about a week remaining on its well with McMoRan E&P in High Island Block A-531.  The rig will then move to Eugene Island Block 223, where it is scheduled to drill a 280-300 day well for McMoRan.  However, the operator has yet to secure its permit for the location, and the rig is expected to remain on location until the permit is approved.  Rowan also christened newbuild jackup Rowan EXL-II late last week and will take delivery of the rig August 30.  The rig will then be moved to Corpus Christi where it will undergo 30 days of preparatory work for its upcoming three-year contract with BP Trinidad, which starts around November 1.  It is scheduled to depart the Gulf of Mexico around October 1.

 

As has been rumored for some time, semi ...

BP has been authorized by the National Incident Commander, Thad Allen, to cease fishing operations at the Macondo well site to remove sections of pipe that have settled in the blowout preventer (BOP)  and to prepare for the removal of the well’s existing capping stack and BOP.  The equipment will be replaced with a BOP taken from the backup relief well being drilled by the Development Driller II.

 

Mainland Resources, Inc. announced the appointment of leading exploration and production executive, Nicholas W. Atencio, as Chief Executive and Director of the company.  Atencio previously held the positions of Vice President of Operations Gulf of Mexico and Vice President of International Exploration and Production for Kerr McGee Oil & Gas Corporation.

 

Plains Exploration & Production (PXP) plans to reduce its Gulf of Mexico (GOM) exposure and related capital spending.  PXP’s goals are to secure $1 billion to $2 billion of value from its GOM assets through third party joint ventures and/or asset sales and to align capital spending with operating cash flow.

 

Pemex has awarded CGGVeritas a contract to acquire a 3D wide–azimuth (WAZ) program in the Mexican waters of the Gulf of Mexico. The survey, valued at more ...

Schlumberger, Ltd. has closed its merger with Smith International, Inc. As previously announced, each Smith stockholder will receive 0.6966 share of Schlumberger common stock in exchange for each Smith share, with cash paid in lieu of any fractional shares of Schlumberger common stock. Schlumberger has issued approximately 176 million shares pursuant to the merger, representing a transaction value of approximately $11 billion. As a result, former Smith stockholders own approximately 12.9% of Schlumberger’s outstanding shares of common stock.

Mobile rig utilization in the Gulf of Mexico dipped slightly as a number of changes took place.  Total fleet utilization stands at 53.3% with 64 of 120 mobile rigs under contract or committed for work.  Marketed utilization, which excludes those cold stacked and other non-marketed rigs, fell by one point to 79%, with 64 of 81 rigs under contract.

 

Jackup fleet utilization fell to 42.7% with 35 of 82 units under contract.  Marketed utilization dropped to 71.4% with 35 of 49 units contracted.  One rig was added to the fleet as newbuild Rowan EXL-II was delivered.  The rig will remain here for another month before leaving for a multi-year contract off Trinidad.  Meanwhile, Diamond Offshore’s Ocean Spartan was released from its contract and hot stacked.

 

Floating rig fleet utilization was unchanged this week.  Currently, 28 of 32 rigs are under contract for utilization of 87.5%.  Marketed utilization also remains the same at 90.3% with 28 of 31 units under contract.  One rig, drillship Aban Abraham, received a contract (for work outside the Gulf later this year), while semi Transocean Marianas departed the area for West Africa.  Finally, Diamond Offshore semi Ocean New Era was moved to the US ...