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Pinedale Online > News > February 2008 > Oil & Gas Briefs
Oil & Gas Briefs
February 17, 2008

EnCana reports 2007 cash flow of $8.5 billion
Shares up 29%, quarterly dividend 40 cents per share
EnCana Corporation (TSX & NYSE: ECA),
In EnCana Corporation’s latest newsletter to its investors, released February 14th, the company reports “strong increases in 2007 cash flow and operating earnings during a year of solid growth in natural gas and oil production.” In 2007, production from our key natural gas resource plays grew 14 percent, while production from our integrated oil projects increased 25 percent. Our newly established refining business also delivered great results, achieving twice the cash flow we expected during its inaugural year," said Randy Eresman, EnCana's President & Chief Executive Officer. Total natural gas production averaged about 3.6 Bcf/d in 2007, an increase of 6 percent - roughly twice the company's original forecast - principally due to strong performance from the Jonah and East Texas properties. Gas production growth was led by a 14 percent increase in U.S. production. In 2007, U.S. natural gas production represented about 40 percent of EnCana's total natural gas portfolio. That share is expected to increase to almost 45 percent in 2008. EnCana generates 2007 cash flow of US$8.5 billion, or $11.06 per share, up 29 percent. Drill bit additions exceed 200% of production; Net earnings per share down 23 percent. Quarterly dividend doubled to 40 cents per share.

Air Products and Matheson Tri-Gas to Form Joint Venture to Build and Operate New Wyoming Helium Plant
From Riley Ridge Field near Big Piney
Air Products (APD) and Matheson Tri-Gas, Inc., a member of the Taiyo Nippon Sanso Corporation (TNSC) group, intend to jointly build and operate a liquid helium production plant near Big Piney, Wyoming. The plant, designed to produce 200 million standard cubic feet per year at start-up, with expectations for future capacity expansion, would process crude helium produced by a natural gas processing facility that would be owned by Cimarex Energy Co. (XEC) and their partner, Riley Ridge LLC.

The Cimarex facility would process natural gas from the Riley Ridge Field in Wyoming, the second largest helium-rich natural gas field in the United States. Riley Ridge is believed to contain sufficient helium reserves to support production for decades. Production at the new Wyoming plant is anticipated to commence in 2009. Upon completion, the Wyoming helium production plant will be the 10th liquid helium plant operating in the United States, and the first new U.S. facility since 2000. It is expected to employ approximately 8-10 people after start-up.

Rancher Energy Corp. signs CO2 agreement with ExxonMobil
CO2 will be supplied from ExxonMobil’s LaBarge gas field
Rancher Energy Corp. (OTCBB: RNCH) announced it has signed a CO2 (carbon dioxide) sale and purchase agreement with ExxonMobil Gas & Power Marketing Company, a division of Exxon Mobil Corporation (NYSE: XOM). Under terms of the agreement, ExxonMobil will provide Rancher Energy with 70 MMSCFD (million standard cubic per day) of CO2 for an initial 10-year period, with an option for a second 10 years. Under terms of the agreement, ExxonMobil will supply Rancher Energy with CO2 for use in Rancher Energy's enhanced oil recovery (EOR) program in Wyoming's Powder River Basin. Rancher Energy intends to enhance production at three historically productive oil fields, including the Big Muddy, Cole Creek South and South Glenrock B fields. The CO2 will be supplied from ExxonMobil's LaBarge gas field in Wyoming. Rancher Energy intends to build a pipeline connecting its properties to the CO2 source. "This agreement with ExxonMobil is a major milestone in Rancher Energy's EOR program, giving us a reliable, cost-effective source of CO2 with which to sustain long-term CO2 injection operations at our three promising fields in the Powder River Basin," said John Works, Rancher Energy President & CEO.

Pinedale Online > News > February 2008 > Oil & Gas Briefs

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