Only One Well Comes Off Confidential List Today -- And It's Another DUC -- July 8, 2018

NOG: announces acquisition of producing wells, about 4,100 boepd; $68.4 million in cash plus 25.75 million shares (x $3.40 = $88 million) for a total of about $150 million. Net acreage not mentioned. Recently, NOG paid upwards of $40,000 / acre. NOG also announced it has reduced annual interest payments by over $5 million and will reduce overall debt by over $63 million through a new deal and other agreements. The most recent deal: exchange 8% senior unsecured notes due 2020 by issuing over 3 million shares of common stock; this will reduce debt by almost $10 million. In pre-market trading, NOG was up almost 5%, trading near $3.40. It's 52-week high is $3.72.

Disclaimer: this is not an investment site. The NOG update is to help me better understand the Bakken and follow the oil and gas industry.


Only one well comes off the confidential list today:

• 33993, SI/NC, Hess, BB-Burk-LE-151-95-1807H-9, Blue Buttes, no production data,

Active rigs:

$66.83↓↓	7/18/2018	07/18/2017	07/18/2016	07/18/2015	07/18/2014
Active Rigs	67	59	30	73	196

RBN Energy: Mexico needs more US refined products, and more infrastructure to move and store it.

Mexican demand for U.S.-sourced refined products continues to increase, but Mexico lacks the infrastructure required to efficiently import, store and distribute large volumes of gasoline and diesel. That has spurred the rapid build-out of new port and rail terminals, new pipelines and new storage capacity on both sides of the U.S.-Mexico border. At the same time, Mexico’s state-owned energy companies are gradually opening access to their existing refined-products pipeline and storage networks — which helps a little, but not enough. Today, we discuss the latest round of midstream projects tied to U.S. exports of motor and jet fuels to its southern neighbor.

This blog is an update of our “Into the Void” series on the infrastructure that helps deliver Pemex and imported motor fuels to Mexican markets. Earlier we explained that until April 2016, state-owned Petróleos Mexicános (Pemex) was the only entity that could import gasoline and diesel to Mexico, and that until early 2017, independent/third-party importers could not use Pemex’s refined-product distribution and storage network. We also noted that competition is being introduced to Mexico’s energy markets during a trouble-filled period for Pemex’s six refineries, whose output of refined products has been declining — opening the door even wider to imports from the U.S.

We provided an overview of three key elements of Mexico’s existing refined-product logistic infrastructure. First, there’s Pemex’s network, which includes refined-product pipelines with capacities totaling more than 1 MMb/d and more than 70 storage and distribution terminals with a combined storage capacity of 11 MMbbl. Then, there are the liquids storage assets owned by Mexico’s Comisión Federal de Electricidad (CFE), the state-owned electric utility, which over the next few years plans to make available to motor-fuel logistics providers at least one-quarter (and perhaps as much as half) of its 10 MMbbl of fuel storage capacity. And then there are the marine terminals, pipes, storage and other assets owned by third parties such as midstreamers, railroads and terminaling companies. We emphasized that Mexico’s refined-products pipeline system is far from robust, and a lot of motor fuel is transported by rail and by truck.