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Royale Energy Inc. Message Board

jillsexsmith 10 posts  |  Last Activity: Jul 29, 2014 9:58 PM Member since: Feb 5, 2013
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  • I noticed that the Fortune Creek JV with KKR received a confidential amendment.

    Article 1 is amended by the addition of the following definition:
    "HRB Transaction" means a transaction whereby equity of QRCI is issued from treasury by QRCI or sold by KWK, or an interest in QRCI's Horn River reserves and acreage is sold, to a non-affiliate, at the closing of completion of which KWK or QRCI, as the case may be, receives cash proceeds of not less than $[****];
    Section 5.5 is amended by the addition of the following subsections (f), (g) and (h):
    (f)
    Notwithstanding Section 5.5(a), the balance (the "Drilling Obligation Balance") of the Drilling Obligations, which QRCI, the Partnership and Newco acknowledge and agree to be $120 million as of December 31, 2013, shall be spent by not later than the earlier of the following dates (the "Drilling Obligation Date"):
    (i) June 30, 2016; and
    (ii)
    12 months after the closing and completion of an HRB Transaction

  • jillsexsmith by jillsexsmith Jul 28, 2014 7:47 PM Flag

    CALGARY — Two more liquefied natural gas players entered the export fray Monday, unveiling plans for new capacity on opposite ends of the country.

    A Canadian unit of Fort Worth, Tex.-based Quicksilver Resources Inc. applied to federal regulators for permission to export 20 million tonnes of LNG per year for 25 years, or about three billion cubic feet of gas a day, from a former mill site north of Campbell River on Vancouver Island. Separately, Perth, Aus.-based Liquefied Natural Gas Ltd. said it bought a potential export site from Anadarko Petroleum Corp. for $11-million outside Port Hawkesbury, N.S., on Canada’s East Coast.

  • I’m starting to view Quicksilver’s purchase of that old pulp mill in Campbell River as a wonderful insurance policy. Last month, First Nations won a major supreme court ruling that means that they could seriously delay a number of LNG projects in Northern BC. Thankfully for Quicksilver, the site at Campbell river will tie into the existing NG pipeline system much further to the south. The big winners in all this mess might be KWK and the new terminal in Oregon:
    “Backers of the proposed Oregon liquefied natural gas (LNG) facility at the mouth of the Columbia River won an appeal in a county land-use case and hailed a Canadian Supreme Court decision that may make it tougher for competing LNG export projects in British Columbia (BC) to move ahead.”

  • jillsexsmith by jillsexsmith Jul 3, 2014 12:10 AM Flag

    Just to expand on Greg's comments, both Spectra and TransCanada talk about an undersea pipeline route that begins at Kitsault and travels to Prince Rupert. I'm long KWK until the last of the LNG players reveal themselves and not a day less.
    June 2014
    "From his vantage point, Greg Ebel can envisage many more new partnerships being forged on the West Coast’s greenfield LNG exports industry. “I think you will see some other players come into the field in British Columbia,” the chief executive of Spectra Energy Corp. said in an interview during his visit to Toronto earlier this week. “I don’t think we are done with proposals.”
    The company is in talks with other players – new as well as those that have already proposed projects — as it jockeys to participate in other LNG proposals, as well as pipeline expansions that will be sorely needed if at least one of the dozens of projects proposed get off the ground."

  • Again I don't think that Wall Street appreciates just how prolific the wells are at the Horn and Besa river formations but maybe just maybe the Japanese do!
    "Apache’s early results from Liard (Besa) are described as “the most prolific shale gas resource test in the world,” with net estimated gas sales expected to hit 48 trillion cubic feet (Tcf) of natural gas (8 billion barrels of oil equivalent) based on recent drilling, test results and well-control points. The 30-day IP rate was 21.3 million cubic feet (MMcf) per day."

  • jillsexsmith by jillsexsmith Jun 20, 2014 4:03 PM Flag

    I don’t think people appreciate the fact that the Japanese are poised to make a big splash into the BC LNG market. That means they’ll need upstream assets in a big way – I know where they can get about 130K acres in Horn River. Doug Bloom from Spectra Energy said it best “ don’t assume all the players have revealed themselves yet”!
    QUOTE:
    Doug Bloom, president of Spectra Energy’s western Canadian transmission operations, said other global energy companies are interested in B.C.’s export gas potential as well. “There are still other parties that are investigating LNG in British Columbia that have chosen to not yet make themselves public".

  • jillsexsmith by jillsexsmith Jun 17, 2014 11:34 AM Flag

    Some more thoughts on the Japanese angle to the HRB deal. While the Koreans & Chinese have taken the lead in securing ownership in the new LNG terminals, the Japanese might catch up in a hurry according to the reporters from LNG Journal:
    "GONE ARE THE DAYS WHEN JAPANESE LNG PLAYERS WERE CONTENT WITH A 1.5 PERCENT STAKE IN A LIQUEFACTION PROJECT AS A FOUNDATION CUSTOMER. SOME ANALYSTS SUGGEST THAT JAPANESE COMPANIES COULD BE PURSUING THEIR OWN LIQUEFACTION PLANT ON THE COAST OF BRITISH COLUMBIA, RATHER THAN DELIVERING GAS TO A THIRD-PARTY PLANT, AS OTHER PLAYERS INTEND TO DO. SOURCES SAY THE JAPANESE FIRM ITOCHU IS LOOKIN TO EXPORT GAS VIA KITSAULT, WHERE THERE IS AN ABANDONED MOLYBDENUM MINE, TOWN AND PORT. ITOCHU IS A 150 YEAR OLD JAPANESE CONGLOMERATE WITH STRONG INTERESTS IN THE ENERGY SECTOR."

  • Reply to

    HRB deal

    by jillsexsmith Jun 7, 2014 11:01 PM
    jillsexsmith jillsexsmith Jun 12, 2014 12:19 AM Flag

    The International Energy Agency notes Canadian proponents (excluding Apache/Chevron) have secured the interest of potential customers by involving them as partners in their projects. Shell Canada’s LNG Canada proposal at Kitimat, for instance, involves a consortium that includes PetroChina, Korea Gas and Mitsubishi. Malaysian state-owned firm Petronas’s proposal for a major plant near Prince Rupert includes Japanese commodity firm Japex, Chinese state-owned Sinopec, the Indian Oil Corporation and a PetroleumBRUNEI. Minority partners secure rights to percentages of the proposed output of their plants, which might be “a deciding factor” in building Canadian plants that have roughly twice the capital cost of their American competitors. The arrangement gives the partners an incentive “to reduce the cost as much as possible while at the same time ensuring reasonable returns on the project.”

    So going back to Apache/Chevron, it's obvious that this project needs an Asian partner - Tokyo Gas perhaps?

  • jillsexsmith by jillsexsmith Jun 7, 2014 11:01 PM Flag

    I have a few thoughts on why the HRB deal is taking so long. Glen Darden hinted that the transaction is "complicated". I don't think he's referring to the JV agreement with Tokyo Gas. A ball park price has already been established by the Encana/Kogas deal in 2010/11. What might be tricky is TG negotiating an ownership share in the closest potential LNG terminal to Horn River - Kitsault BC. The owner -Krishnan Suthanthiran - might be asking for the moon. Dealing with a private firm with a hot property is not new - Apache and EOG bought out Alfred Sorensen in 2012 for the future site of Kitimat LNG. I'm long KWK because this deal will get done.

  • This is huge for anyone familiar with the oil and gas industry in Canada.
    "Acho Dene Koe First Nation has signed its first project benefits agreement with an oil and gas producer working in its traditional area. The First Nation and the company spent more than a year negotiating the agreement that is linked to Quicksilver's Fortune Creek Gas Plant. The plant, once built, will be in Quicksilver's shale gas project located in the Horn River basin area in northern B.C."

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