All Standard Disclaimers & Seller Rights Apply.

March 23, 2017 • Volume 07, No. 03

OilfieldServiceSServing the marketplace with news, analysis and business opportunities

IRION CO., TX PROPERTY2-Active HZ Wells. 2,900-Gross & Net Acres.PERMIAN BASIN - WOLFCAMPWolfcamp B Bench PPWolfcamp A, B, C & Ellenburger Potential6 Sq. Miles Of Proprietary 3D Seismic ~220100% OPEARTED WI; 74-83.375% NRI BOEDNov 2016 Net Production: ~220 BOEDNov 2016 Net Cash Flow: ~$157,000/MnAGENT WANTS OFFERS MAR 23, 2017PP 9201DV

GLASSCOCK CO., TX ASSETS8-Producing Wells. ~1,455-Net Acres.MIDLAND BASIN PP7 Vertical & 1 Horizontal Well.Wolfcamp A, Middle & Lower SpraberryUpper Spraberry, Jo Mill, Wolfcamp B & 475Cline Upside Potential BOEDAvg 98% OPERATED WI AVAILABLENet Production: 475 BOEDAGENT WANTS OFFERS APR 5, 2017PP 2751DV

DEALS FOR SALE

Trican buys Canadian peer Canyon for $476 million

Trican Well Service will acquire Canyon Services Group in a C$637 million ($476 million) all-stock deal to create a premier Western Canadian fracker with 675,000 hydraulic horsepower. The combined company’s C$1.4 billion market capitalization would be one of the largest in Canadian oilfield services.

Under the agreement, Trican will exchange 1.70 common shares of Trican for each Canyon common share, a 32% premium over the closing price of Canyon on the Toronto Stock Exchange. Existing holders of Trican shares will own 56% of the combined company.

Both boards of directors have unanimously approved the deal, which included the assumption of $40 million of Canyon debt.

Borr buys Transocean's jackup fleet for $1.35 billionBorr Drilling, a relative newcomer created by former executives of Seadrill,

has signed an LOI to buy Transocean’s entire jackup fleet for $1.35 billion. The purchase of 10 existing jackups and five under construction will be partially funded

by an $800 million stock issue.Currently, Borr has a fleet

of only two rigs, which the Oslo, Norway, company bought in December from the Hercules Offshore bankruptcy liquidation. The drilling startup is backed by Tor Olav Trøim, a VP and director at Seadrill in 2005-2014. Trøim is on Borr’s board of directors along with former Seadrill President and CEO Fredrik Halvorsen.

The sale price to Borr averages out to $90 million per rig for each of the 15 Transocean rigs. “Thatʼs half the construction cost, so itʼs a pretty attractive deal,” Carnegie brokerage analyst Frederik Lunde told Reuters. Of the 10 jackups that have already been built, five were stacked, one is under a contract that expires this month, and two are under contracts that expire in May, according to Transocean’s February fleet status reports. The remaining two jackups, both offshore Thailand and hired by Chevron, are under contracts that expire in 2018.

Savanna ready to be acquired by Western for $586 millionThe drama with Total Energy Services heats up, says it can block the deal

While Savanna Energy Services directors have accepted Western Energy Services’ $586.3 million merger offer, which would create the second-largest drilling and well servicing contractor in Canada,

Total Energy Services (TES) is not giving up on its hostile takeover bid for Savanna. TES said on March 21 that it has already locked

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 Savanna share on March 9. After some criticism from shareholders and TES, Western then added $0.21 in cash for each Savanna share less than a week later, raising the purchase price by 10% from $533.0 million to $586.3 million. The value of the Western-Savanna deal includes the assumption of $248 million in Savanna debt.

Wood Group lands Amec Foster Wheeler for $2.7 billionWood Group will acquire Amec Foster Wheeler in a $2.7 billion all-stock

offer, connecting two Scottish companies in the acquisition wave that has swept the oilfield services industry. Amec Foster Wheeler shareholders will receive 0.75

new Wood Group shares for each share of Amec Foster Wheeler, giving them 44% of the combined company, and

valuing Wood Group at £5.64 for each of 394,483,515 fully diluted shares. Wood Group is assuming net debt of $1.241 billion, making the total deal value $3.946 billion. The combined company said it has located cost synergies that will save £110 million ($134 million) a year following 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 million in one-off costs.

In 2014, UK upstream E&C Amec acquired US E&C and power equipment firm Foster Wheeler for $3.2 billion.

PLS tracks thousands of deals for sale www.plsx.com/listings

Deal trades 0.75 of a Wood Group share for one Amec Foster Wheeler share.

Western to assume $248 million in Savanna debt.

Stock swap represents 32% premium for Canyon shareholders.

Borr Drilling increases its jackup fleet from two to 17.

Continues On Pg 11

Continues On Pg 6

Continues On Pg 15

Continues On Pg 17

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OilfieldServiceS 2 March 23, 2017

Schlumberger buys patent for wastewater separator

Schlumberger will buy the intellectual property of Enviro Voraxial Technology, a developer of wastewater technology based in Fort Lauderdale, Florida. The deal includes the patents and trademarks related to the Voraxial Separator, which EVT described as a cost-effective method to separate large volumes of solids and liquids with different specific gravities without the need of a pressure drop.

After the deal closes, EVTN will retain a worldwide, royalty-free agreement to manufacture and sell the Voraxial Separator for all industries excluding the oil and gas market. EVTN will also retain certain rights to manufacture the Voraxial Separator for Schlumberger for three years.

Financial details were not disclosed. The agreement is expected to close in three months. EVTN was founded in 1964 as a defense and space contractor named Florida Precision Aerospace, changing its name to Enviro Voraxial Technology in 1994.

Hyduke acquires Western Manufacturing for $5.5MMJust over a month after saying “now is the time” to execute its M&A strategy as

oil prices recover, Hyduke Energy Services has acquired Western Manufacturing. Western is based in Hythe, Alberta, and manufactures drilling equipment and related services in the Montney and Duvernay plays in northwest Alberta and northeast British Columbia. Hyduke will also acquire the assets of Ledarco Industries, a

Western affiliate involved in the regional transportation of manufactured components, raw materials and finished products.

Total consideration for the Western shares and Ledarco assets was $5.5 million to be paid by a combination of cash, debt assumption, and Hyduke’s issuance of 735,295 shares and up to an additional 1.05 million shares to be settled within 180 days post-closing, which occurred on March 9.

The deals are per Hyduke’s objective, first laid out in early 2014, to become a key supplier of oilfield services equipment to the industry. The company said it has been awaiting “the right market conditions” to expand its rig supply business, BW RIG, which has returned to profitability in recent months. In the past year, Hyduke has been approved by about 100 new customers that it expects to do business with in 2017 and beyond.

The acquisition of Western and Ledarco are congruent with Hyduke’s strategy to expand beyond the fabrication and support of drilling and well-servicing rigs and related oilfield services equipment to become a diversified designer, fabricator and manufacturer of oilfield equipment required for the drilling, completion, production and maintenance of upstream oil, natural gas and NGLs.

A&D

North American Rotary Rig Count as of Mar. 17 Source: Baker Hughes

LocationCurrent

03/17/17Week Ago03/10/17

Month Ago02/17/17

Year Ago03/18/16

% Chg. YOY

US 789 768 751 476 66%

Canada 276 315 331 69 300%

US Breakout Info

Oil 631 617 597 387 63%

Gas 157 151 153 89 76%

Miscellaneous 1 0 1 0 -

Major Basins

Barnett 4 4 5 4 0%

DJ (Niobrara) 25 24 21 15 67%

Eagle Ford 70 68 61 45 56%

Fayetteville 1 1 1 -

Granite Wash 12 11 13 8 50%

Haynesville 37 36 34 14 164%

Marcellus 42 41 42 31 35%

Mississippian 6 3 3 7 -14%

Permian 308 309 303 152 103%

Utica 22 22 21 10 120%

Williston 42 38 36 31 35%

Woodford 59 57 56 39 51%

Major Basins 628 614 596 356 76%

OilfieldServices is published every three weeks by PLS Inc.

PLS OilfieldService report covers the oil & gas service sector including drilling, completions, operations and technology.

In addition, OilfieldServices lists companies, technologies, rigs, equipment and deals for sale, coded alpha-numerically.

To obtain additional PLS product details, drill www.plsx.com/publications.

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ABOUT PLS

Closed $12MM equity financing in Feb. aimed at funding new M&A.

Access PLS’ archive for previous oilfield services newsFor general inquiries, email info@plsx.com

Volume 07, No. 03 3 ServiceSectOr

Hi-Crush buys former West Texas park for frac sandA former 1,200-acre amusement park where West Texans could test out their dune

buggies has gone the way of Astroworld with an oilfield twist—the property has been sold to Hi-Crush Partners, which will use the sand for fracking.

Hi-Crush bought the former Dunes at Kermit and is preparing the site, which is between the Delaware and Midland basins in

Winkler County, John Shepard, Kermit's Public Works Department director, told the Houston Chronicle. Financial terms were not disclosed.

The property is expected to yield sand for 25-30 years. Houston-based Hi-Crush has four terminals in the Permian Basin and last month purchased Permian Basin Sand Co. for $275 million.

A&D For every ‘fragility’ seller, a ‘stability’ buyer

A tough few years has pushed the oilfield service industry into consolidation mode, with the deal market booming in the last month. Beyond

the deal market, many companies are pondering IPOs as the recovery

is in full swing.Wood Group seemingly came to the

rescue of Amec Foster Wheeler (PG. 1). Trican Well Service acquired Canyon

Services Group to create a major Western Canadian

fracker (PG. 1). After saying “now is the time” for M&A, Hyduke bought Western Manufacturing (PG. 2). Mammoth Energy Services stepped closer to its name by adding three companies (PG. 4).

Some intriguing M&A possibilities may not come to pass. Savanna directors embraced Western Energy Services, but Total Energy Services said enough shareholders prefer its hostile takeover bid. (PG. 1) Weatherford hired Halliburton’s CFO as its CEO, spurring rumors of a merger (PG. 5). A Norwegian financial daily reported that who Halliburton really wants is Aker Solutions (PG. 3).

Even as Vantage Drilling said jackup drilling was recovering (PG. 7),

Transocean sold its entire jackup fleet (PG.

1). The buyer is a company backed by Tor Olav Trøim, former right-hand man to John Fredriksen, who used a Seadrill arbitration to create a new company (PG. 1). Ezra Holdings became the latest offshore driller to file for Chapter 11 (PG. 10).

Proppant manager Solaris Oilfield Infrastructure (PG. 8) and fracking equipment maker NCS Multistage both announce plans for $100 million IPOs (PG. 8). Yet, a few weeks after both Step Energy Services and Source Energy Services announced intentions for IPOs, they postponed their offerings (PG. 10), proving that the US-based recovery is not being felt evenly in Canada.

IN THIS ISSUE

Aker Solutions low-key about rumors of Halliburton offerAker Solutions is downplaying reports of Halliburton buying all or part of

the Norwegian oil services company. No stock exchange notice is pending, an Aker Solutions spokesman said. Norwegian financial daily Finansavisen reported that Halliburton has been negotiating to buy Aker Solutions or just its subsea unit and a deal was near. “Many are contacting us, and a natural part of what we do is to talk to others, but we have nothing new to say," Aker spokesman Atle Kigen told Reuters.

A merger would not face the sort of regulatory scrutiny in the US that derailed the US giant’s

merger with fellow US company Baker Hughes, but the Norwegian government would be a major player in an Aker deal. The Norwegian trade ministry co-owns Aker Holding, which owns 40.8% of Aker Solutions. This would mean the state would have to approve any such sale. The government’s ownership agreement says Aker Holding must keep its stake in Aker Solutions for at least 10 years, a period that expires on June 22.

Corporate raider Kjell Inge Røkke owns 68% of Aker ASA, which owns 60% of Aker Holding. Speculation earlier in the year that he was interested in selling Aker Solutions drove the oilfield services company’s stock price up 20%.

For YE16, Aker Solutions reported net income of NOK152 million ($18.0 million), a decline of 58.1% from YE15.

Aker Solutions Key Numbers Dip In 2016Revenue EBIT Order Intake

25.6 0.7 17.0 31.2 NOK BILLION

Order Backlog

NOK BILLION

NOK BILLION

NOK BILLION

0

5

10

15

20

25

30

35

2012 2013 2014 2015 20160

10

20

30

40

50

2012 2013 2014 2015 20160

10

20

30

40

50

2012 2013 2014 2015 20160

0.5

1

1.5

2

2.5

3

2012 2013 2014 2015 2016

Source: Aker Solutions Feb. 9 Presentation via PLS docFinder www.plsx.com/finder

Halliburton could be looking at whole company or just the subsea unit.

New West borrows $6.0MM to buy equipment and pay debt (PG.10).

To learn more about PLS, call 713-650-1212Find more on the oilfield sector at

OilfieldServiceS 4 March 23, 2017

■ A faulty power cable has stalled Divergent Energy Services’ attempt to test a new pump for months. The Calgary-based pumpmaker installed its Linear Electric Submersible Pump in a test oil well in Saskatchewan and was producing at a peak rate of 131 bbl/d when the third-party cable supplying power suffered a ground fault on Nov. 19. High demand for service work on existing oil wells and inclement weather has kept Divergent waiting for a service rig ever since. A visual inspection showed the pump showed no signs of wear, according to Divergent.

■ Patterson-UTI’s US rig count continued to climb in February, averaging 80 drilling rigs operating in the US, an increase of four rigs from January, and up 14 from Q4 and up 10 YOY. In Canada, Patterson-UTI had two rigs active in February, January and Q4 and four YOY. For the two months ended Feb. 28, the company averaged 78 drilling rigs operating in the US and two rigs in Canada.

A&D

Mammoth acquires frac sand, water transfer companies Mammoth Energy Services has added three more companies to its collection of

small oilfield services companies, acquiring the parent company of Taylor Frac, Stingray Energy Services and Stingray Cementing for a combined 7 million shares, which

translates to $133.4 million at the current Nasdaq price. The transactions, which

also include the assumption of $7.3 million in debt, are expected to be completed in May.In buying Sturgeon Acquisitions, which owns Taylor Frac, Mammoth added

a 700,000 tpa sand mine in Taylor, Wisconsin, and processing plant with 37.1 million tons in reserves, 73% of which are grades of fine sand. The facilities are located on the Canadian National

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 mtpa by the end of the year.

Stingray Energy Services and Stingray Cementing, which operate primarily in the Utica and Marcellus and offer fresh water transfer, equipment rental and refueling as well as cementing. As of March 17, Stingray had 250 pieces of equipment rented on 63 separate pads in the Appalachian Basin.

Wexford Capital formed Mammoth Energy Services from several small oilfield services companies—Redback Energy Services; Redback Coil Tubing; Muskie Proppant; Panther Drilling Systems; Bison Drilling & Field Services; Bison Trucking and Great White Sand Tiger Lodging. In October, Mammoth raised $100.3 million in an IPO and trades on the Nasdaq under the ticker symbol TUSK. In its YE16 earnings, Mammoth reported a net loss of $88.4 million on revenue of $231.0 million.

Canadian firms Whitetail & Okala announce merger

The merger of Whitetail Oilfield Rentals and Okala Energy Services creates “equipment bundling opportunities” for O&G customers, the Alberta-based companies announced. The two companies will keep their separate names with administrative and sales functions operated out of a Calgary head office.

Whitetail has offered communication equipment and services for drilling rigs

since 1994. Okala was founded in 2012 to rent new wellsite accommodation units and has expanded to offer a range of rental equipment including wellsite walkways, generators, shale sloops, rig mats, light towers, centrifuges and trucks.

The merger, announced on March 17, became effective on Jan. 1. Field service and support now being coordinated out of two operational facilities located in Red Deer, Alberta, and Dawson Creek, British Columbia.

Communications provider, equip. renter to share functions.

Oilfield Services Stock Movers—Last 30 Days Source: CapIQ

Company Ticker$/Share3/22/17

$/Share 2/23/17

% Change

% Change

YOY

Top

5

Weatherford International WFT $6.03 $5.75 5% -17%

Baker Hughes BHI $60.54 $59.97 1% 35%

National Oilwell Varco NOV $38.71 $39.71 -3% 23%

Schlumberger SLB $78.38 $80.47 -3% 7%

Helmerich & Payne HP $66.32 $68.77 -4% 15%

Bott

om 5

Pioneer Energy Services PES $4.00 $5.65 -29% 91%

Parker Drilling PKD $1.45 $1.95 -26% -29%

Frank's International FI $9.62 $12.49 -23% -38%

Rowan Companies RDC $14.45 $18.62 -22% -6%

Hornbeck Offshore Services HOS $3.89 $4.91 -21% -58%

Note: Data includes public, US & Canadian-listed companies operating in the oilfield service space, limited to companies >$1.00/share and market cap >$100 million.

Developments & Trends

All Standard Disclaimers & Seller Rights Apply.

January 13, 2015 • Volume 08, No. 02

CapitalMarketsServing the marketplace with news, analysis and business opportunities

NORTH TEXAS SALE PACKAGE 18-Wells. ~4,000-Gross Acres.PARKER, JACK & ERATH COUNTIESBig Saline, Marble Falls, Atoka Sand, PP-- & Conglomerate Reservoirs.Behind-Pipe Potential In Each WellAdditional Barnett Shale PotentialAll Acreage HBP. 18 Leases. 19275-100% Operated WI; 80% Lease NRI MCFDGross Production: 271 MCFD & 33 NGLsNet Production: 192 MCFD & 23 NGLPP 3426DV

KERN CO., CA PROPERTY ~18,000-Contiguous Net Acres.BEER NOSE FIELDBloemer Tight Sandstone Objective. PPEstimated Depth: 10,000-15,000 Ft.Also Monterey, Belridge, Gibson, Oceanic,Santos, Tumey & Kreyenhagen Potential. TIGHT100% OPERATED WI; ~77% NRI SANDGross Production: 36 BOPD & 57 MCFDNet Production:27 BOPD & 44 MCFD6-Mn Avg. Net Cash Flow: ~$28,800/MnPP 5217DV

FEATURED DEALS

Rice Midstream IPO raises $474MM in tough market

After a fairly banner 2014 for energy IPOs on the whole but a significant dry spell for all segments other than midstream through the last few months of the year, Rice Energy put a nice bow on 2014 with its buzzer beater Rice Midstream Partners IPO. Rice sold 28.75 million units at $16.50, for total gross proceeds of $474.4 million, and $441.6 million net. Units priced 17.5% below the midpoint of the

targeted price range of $19-$21/unit, probably reflecting the challenges the energy sector has seen of late in terms of obtaining financing. However, in an interesting turn for an underpriced IPO, subsequent demand was strong enough to merit full exercise of a 3.75 million unit option (included in the above gross proceed total) which boosted proceeds by $61.9 million.

Upstream MLPs under fire as distributions cut Upstream MLPs have been the subject of much discussion of late as a particularly

at-risk segment of the energy patch, and these concerns have in fact been realized for at least some partnerships with distribution and capex cuts. MLPs in general have been favored for their bond-like, high-yield distributions, stemming from preferential tax treatment for reinvesting a high percentage of profits back into the business. However, they also generally rely heavily on debt to fuel growth. And unlike their midstream brethren which are better positioned to weather recent commodity volatility with long-term, fixed-price contracts, upstream MLPs face full exposure to the recent oil and gas price declines, except to the degree they make use of hedges. However, hedges will largely peel off over the course of the year, and many of these partnerships will soon face the difficult decision of using cash to cover interest requirements and maintaining what may have become unsustainable payouts, or slashing the distributions which drew investors to them in the first place so they can make debt levels more reflective of current economics.

Concho dials capex back $1.0 billion in second look In a rather noteworthy example of what many companies which announced 2015

spending plans early are dealing with these days, Concho Resources revised its capex for this year to more accurately reflect current market conditions. In early November

when WTI was still trading above $78/bbl, Concho had announced a $3.0 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.

With oil now near $45, that clearly hasn’t happened, and Concho has proceeded accordingly with a new $2.0 billion plan 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 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 49% vs. prior budget and 22% of total) and the remaining $200 million or 11% targeting the New Mexico Shelf (down 47% from prior budget and 14% of total).

Southwestern plans multibillion equity raise to fund buys The implications of Southwestern Energy’s $4.98 billion acquisition of West

Virginia and southwest Pennsylvania assets from Chesapeake Energy (plus another $394 million in add-ons in the region from Statoil) are beginning to become apparent for the company, with impacts on both Southwestern’s capital structure and capex.

The company is finally providing a clearer picture of how it plans to permanently fund the Chesapeake deal. The acquisition was funded

at closure with a $4.5 billion bridge loan and a two-year $500 million unsecured term loan, but significant sums of longer-term debt and equity were clearly needed.

In line with its previously announced intentions, Southwestern announced a proposed equity sale which should raise $1.8- $2.1 billion, depending on whether options are exercised. Specifically, the company plans to sell 20.26 million shares of common with a 3.04 million share option, and 26 million depositary shares (each amounting to a 1/20th interest in Series B mandatory preferred shares) with 3.9 million shares in possible options.

Should raise $1.8-$2.1 billion in equity depending on whether options go.

Boosting focus on Delaware Basin from 64% of prior budget to 72%.

Upstream MLPs are choosing between debt loads & distributions.

Units priced 17.5% below midpoint at $16.50 but option fully exercised.

Continues On Pg 4

Continues On Pg 6

Continues On Pg 8

Continues On Pg 14

Mammoth raises over $100MM in IPO.

CapitalMarkets Oct. 17

Frac sand facility to grow to 1.75 mtpa in $23 million expansion.

Purchases have connections to Utica and Marcellus.

Mammoth is a collection of several small oilfield services companies.

Access PLS’ archive for previous oilfield services newsFor general inquiries, email info@plsx.com

Volume 07, No. 03 5 ServiceSectOr

Market moving from ‘fragility’ to ‘stability,’ Precision CEO saysOil and gas producers think the modest crude recovery is here to stay, Precision

Drilling executives said. “I've used the term ‘fragility’ when discussing improving customer sentiment, and I think now ‘stability’ may be emerging as my new view, said

Precision CEO Kevin Neveu.In its main area of Canada,

Precision has seen demand rise to 90 rigs drilling or moving, double the number during the Q3 conference call. Overall, Precision has added 107 rigs and activated almost 1,800 people since Q2 lows.

Consistent commodity prices since the OPEC cuts have led to North American crude oil producers to make more long-range plans. “We are seeing several customers extend their capital deployment and plans beyond the next well or two, through

2017, and, in some cases, all the way to 2018,” Neveu said.

Half of Precision’s 48 US rigs are working in the Permian Basin, and the 11 Precision has activated there since Q2 are its Super Triple rigs, which are engaged in multi-wellpad shale drilling. Precision showed cautious 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 net loss of C$271.0 million YOY. Revenue in Q4 was C$283.9 million compared with C$345.0 revenue YOY. In year-end numbers, Precision posted a net loss of C$155.6 million in YE16, less than half of its YE15 net loss of C$363.4 million. YE16 revenue was C$951.4 million, down 38.8% from YE15.

Weatherford picks Halliburton CFO as CEO, spurring chatterStruggling Weatherford International poached from a major rival to find its

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 Weatherford’s fortunes could be turned around or if hiring a Halliburton insider could set the

stage for a merger.McCollum, who will take

his new post in late April, had been Halliburton CFO since 2008, with the exception of a period when he served as chief integration officer during the company’s unsuccessful acquisition of Baker Hughes. He has more than 36 years of leadership experience including CFO of Tenneco Inc. and as an audit and advisory partner in Arthur Andersen's energy division.

Interim CEO Krishna Shivram left the company immediately after the announcement. During the Q4 conference call in February, Shivram laid out a long-term strategy included cutting Weatherford’s net debt from $6.5 billion to below $3.0 billion in three years,

starting with offering its fracking and land rigs businesses up for sale.

Gabelli & Co. analyst Simon Wong 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 that more likely “down the road.”

Whether Halliburton could afford to take on Weatherford is another question since it had $12.4 billion in YE16 debt, a number inflated by the $4.0 billion in breakup costs from the failed Baker Hughes merger. Later reports had Halliburton eyeing a smaller and more profitable target Aker Solutions (see PG. 5).

Xtreme's first upgraded rig to hit the field in Q3

Xtreme Drilling Corp., still debt-free after selling its coiled-tubing service to Schlumberger in June, is seeing its rig-optimization program start to bear fruit. An unnamed producer in Oklahoma has signed a two-year term contract for Xtreme’s the first 850XE rig for

delivery in Q3.The Houston-based

company plans to upgrade three rigs to its new 850XE design for $11.0-11.5 million each, a project that will take up most of Xtreme’s $45-50 million capex budget.

The 850XE will be equipped with an 1,800 hp AC electric drawworks, 850,000-lb capacity mast, proprietary X-pad optimizer walking system, a 7,500-psi mud system with three pumps, integrated equipment monitoring and other proprietary design features, Xtreme said.

Xtreme has seven of its 10 XDR 500 rigs contracted in the US with six currently operating and the seventh contracted to begin work in April. However, only one other of its 21 North American rigs is contracted, and Q4 utilization rate for the fleet was 25%.

Two of the idle rigs are in the process of getting the 850 XE upgrade, the company said. Enquires are increasing in Xtreme’s core US shale markets of the DJ, Williston and Anadarko basins.

Xtreme’s continuing operations posted a Q4 net loss of $11.1 million on $9.9 million in revenue, compared with a $36.1 million net loss on $23.2 million in revenue YOY.

Developments & Trends

All Standard Disclaimers & Seller Rights Apply.

December 31, 2014 • Volume 06, No. 15

InternatIonalCapItalServing the marketplace with news, analysis and business opportunities

TUNISIA PROJECT1-Permit. 556,481-Acres. (2,252km2)GHADAMES BASINContains One Discovery. FO8 Identified Leads: Silurian SandstoneSeismic Data Available.Also Re-Entry Project for 2-Wells. RE-ENTRYSEEKING JV PARTNER FOR -----EXPLORATION PROGRAM.Est Mean EUR: 57 MMBOEst Total In-Place Reserves: 385 MMBOExploration Term Expires April 2016.CA Required To View Data Room.CONTACT AGENT TO LEARN MOREFO 1022DV

OFFSHORE AFRICA FARMOUT1-PSC. 420,079-Acres. (1,700km2)SENEGAL & GUINEA-BISSAUAGC MARITIME COMMISSION ZONE DVContains One Identified Prospect.Shallow Water: 328 Ft. (100m)3-D Seismic Data Available. SHALLOW40% WORKING INTEREST AVAILABLEEstimated Reserves: 475 MMBOCA Required To View Data Room.CALL AGENT FOR MORE INFORMATIONDV 5234L

FEATURED DEALS

Petrobras scandal, possible default spurs lawsuits

The ongoing investigation into the Petrobras scandal could soon have implications outside Brazil. That’s because the company and its executives have been named as the target of a new, $98-billion US class-action lawsuit alleging Petrobras made material misstatements about the value of

its assets. The suit, filed in Manhattan’s federal court on behalf of the city of Providence, Rhode Island by the Labaton Sucharow law firm, covers all securities Petrobras sold since 2010: including debt issued by Petrobras International Finance Co. and Petrobras Global Finance from February, 2012.

Oil-linked contracts put many LNG projects in limboWhile BG Group celebrates the loading of the first commercial cargo at its Gladstone

LNG plant on Queensland’s Curtis Island, the current pricing climate has already altered the fate of the Pacific NorthWest LNG megaproject in Canada and may affect investment

decisions in other large-scale LNG projects worldwide. While not an oil 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

investment decision on the gas project with a list of entirely Asian prospective customers that are used to paying for LNG based on oil-indexed contracts.

With the drop in crude, LNG prices landing in Asia have now sunk below $10/MMbtu, down from $16/MMbtu as recently as April 2014. In North America alone, nearly 40 mtpa of LNG projects are under construction with another 30 mtpa expected to reach FID in the next twelve months. In Australia, LNG breakeven prices are $13-$14/MMbtu. Globally, as with oil, LNG landed prices will adjust to market dynamics.

Oil prices the scourge of noted investors in 2014Some of the world’s most astute and followed investors couldn’t escape the grip

that a slumped oil price had on various securities during 2014, and has given the $2.8 trillion hedge fund sector its worst year since 2008. Most notable is the loss

incurred by legendary activist investor Carl Icahn courtesy of his investment in Talisman Energy, now prepping for a

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 this year—his almost $900 million investment was down $540 million until the Repsol offer and the resulting share price boost cut his losses down to $286 million. His company’s total portfolio was up 4.4% through the end of Q3, filings show. Looking at his Talisman experience, Icahn told the Wall St. Journal: “In this oil environment, I’m certainly glad a bidder came along for it.

Analysts assess project risk at various price pointsIn perhaps the most extreme prognostication to date, Goldman Sachs analysts

say $1.0 trillion in projects could fall by the wayside as $60/bbl Brent renders certain higher-priced projects around the world unprofitable. Projects aggregating $930 billion worth of future investment were no longer profitable with Brent at $70/bbl, the investment bank said, and that $10/bbl less would push that number to the $1.0 trillion

mark. The Goldman analysis looked at 400 of the world's largest new fields excluding US shale.

Led by Canadian oil sands projects at $80/bbl and certain US shale plays and other tight oil plays at $76, Energy Aspects say more than 12% of global oil production would be uneconomic if the majors were to move forward on existing projects at today’s prices. Brazil’s deepwater fields just wouldn’t be worth the expense at $75 and 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 over 1.0 MMbopd of 2017 projects are chancy at that price point.

Goldman estimates that more than $1.0T in projects are at risk at current prices.

Icahn's investment was down 40% at one point before rebounding somewhat.

LNG prices in Asia now below $10/MMbtu, disturbing to profitability.

S&P says Petrobras would be junk-rated if not for government support.

Continues On Pg 4

Continues On Pg 6

Continues On Pg 10

Continues On Pg 12

Weatherford equity & notes bring $1.0B.

InternationalCapital Nov. 23

New CEO led Halliburton’s integration efforts for planned Baker Hughes merger.

Weatherford interim CEO left position immediately.

Oil and gas explorers now thinking ‘beyond the next well or two.’

Precision cut its Q4 net loss by 88.7% to $C30.6 million.

Only eight of Xtreme’s 21 rigs in the US and Canada are contracted.

Rig upgrades will consume most of Xtreme's $45-50MM capex budget.

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OilfieldServiceS 6 March 23, 2017

Total Energy looks to US as it waits for higher prices

Calgary-based Total Energy Services (TES) considers the Q1 pricing of rig and rentals “not sustainable,” its CEO told investors. Total Energy needs more customers to return to profitability so price increases can help the company recover from the most challenging downturn in its 20-year history. “In fact, 2016 was the first year ever that Total Energy was not profitable,” President and CEO Daniel Halyk said.

TES was regaining market share with equipment use trending closer to industry averages, Halyk said. “We’re seeing the completion side piling up a little bit here. So definitely we’re positioning to get our fair share of work on the completion front and we expect that to proceed through Q2,” he said.

One way TES is trying to get back on track is growing its international business operations, with 20% of YE16 revenue coming from Australia and the US. TES plans to expand its fabrication capacity into the northeastern US, and its compression and process services segment has secured a 100,000-sq-ft manufacturing facility in Weirton, West Virginia, that it is retrofitting and restaffing for a Q2 production restart.

TES reported a Q4 net loss of $3.6 million on $57.4 million in revenue, compared with a net loss of $3.0 million on $52.1 million revenue YOY. For YE16, the company had a net loss of $11.9 million on $197.8 million of revenue, compared with a YE15 net income of $8.7 million on $283.2 million in revenue.

A combined Savanna-Western fleet would operate 157 drilling rigs, 153 well-servicing rigs and have an increased inventory of oilfield rental equipment. In Canada, the fleet will consist of 119 drilling rigs (68 from Savanna; 51 from Western) and 123 service rigs (57 from Savanna; 66 from Western). The combined fleet would have had utilization rates of 54% and 39% in February for drilling and service rigs, respectively,

and generated the second-highest number of drilling days in Canada in the first two months of 2017.

“The combination represents true consolidation in drilling and well servicing in both companiesʼ core Canadian market with customer bases that largely complement rather than overlap each other,” Savanna CEO Chris Strong said.

Western’s Canadian fleet focuses on Montney- and Duvernay-class rigs suited to drilling longer-reach horizontal wells, while Savanna’s fleet is weighted to Cardium-class rigs. Savanna’s Cardium-class rigs cover a wide spectrum from trailer singles suited to the Viking oil play and hybrids suited for the oil sands to deeper telescopic

double rigs that are similar to Western’s Cardium-class doubles.

In the US, Western has five Duvernay-class rigs in North Dakota’s Bakken shale, which will complement Savanna’s Permian, Marcellus and Rockies fleets. The combined US fleet would have had respective utilization rates in February of 25% and 35% for drilling and service rigs. The deal will also mark Western’s entry to Australia, where Savanna has five drilling rigs and 12 service rigs.

Savanna urged its shareholders to reject the hostile takeover bid of TES, whose offer most recently was 0.13 of a TES share and $0.20 in cash for each Savanna share. TES’ offer would give giving Savanna shareholders 33% ownership of the combined company, whereas the Western deal provides for 58% ownership. The increased Western offer represents a 14.8% premium to the Total offer based on the volume weighted average trading price of the Western shares and Total shares for the 10 days ended March 14.

TES said it confirmed with the Savanna shareholders who entered into lock-up agreements in November that each of them considers the Western deal “to be inferior” to the TES offer. Even though TES has not sweetened its offer since Savanna approved the Western deal, many independent shareholders said they plan to tender their Savanna shares to TES, giving it more than enough to block to the Western deal, unless Savanna decides to dilute its equity by issuing more shares. The merger requires support from two-thirds of shareholders.

“Savanna reportedly only has the support of corporate insiders (who own less than 1% of the outstanding shares of Savanna) and the Alberta Investment Management Corp., which only recently became a shareholder of Savanna when it participated in a highly dilutive refinancing completed by Savanna at $1.45 per share in December 2016

and became Savanna's largest lender by refinancing Savanna's significant debt,” 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.

A combined Savanna-Western company would be “heavily indebted” compared with TES’ balance sheet, TES said. In YE16, Western reported C$264.1 million in long-term debt while TES has C$46.9 million in long-term debt and 59% more revenue.

Developments & Trends

Savanna ready to be acquired by Western Continued From Pg 1

Combined company’s 157 drilling rigs had a February utilization rate of 54%.

Western brings Bakken rigs; Savanna owns Permian, Marcellus & Rockies fleets.

TES says Western’s debt should make shareholders reject deal.

Merger needs 66.7% support; TES says it has 43.5%.

TES expanding in northeastern US, retrofitting West Virginia facility.

www.plsx.com

Building relationships through data

Continues On Pg 7

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Volume 07, No. 03 7 ServiceSectOr

Vantage says interest rising in jackups and exploration

While the offshore drilling remains weak, Vantage Drilling International CEO Ihab Toma said jackup drilling has started to recover because “most

shallow-water projects will do well at $50.”

Deepwater exploration activity is also starting to rise, he told investors in Vantage’s Q4 conference call.

With oil around $50/bbl, producers have leaned toward onshore projects with lower capex and more secure returns. However, companies looking to replenish reserves have increased enquires about deepwater exploration, Toma said.

“Deepwater is the province where you can make a big discovery and replenish a big part of your production in one go, in one discovery. And deepwater will continue to be very attractive for operators to go out and replace reserves,” Toma said. But he said the offshore industry still isn’t seeing large projects that can absorb a lot of rigs.

Vantage did point to some success in keeping its own fleet active. Its Emerald Driller jackup in Qatar was reactivated and had 99% uptime in Q4, and the Topaz Driller jackup is being reactivated for a short-term contract in Thailand with possible follow-up work. The company also added to its fleet, buying Hercules 260 jackup and its drilling contract in Congo from the Hercules Offshore bankruptcy liquidation.

Vantage posted YE16 net loss of $147.4 million since Feb. 10, 2016, when it emerged from Chapter 11 bankruptcy protection, including a Q4 loss of $41.1 million. Restructuring gave Vantage enough liquidity to finish Q4 with $231.7 million of cash on hand, just $9.3 million less than at the start of the quarter. Revenue was $158.6 million since Feb. 10 and $40.4 million for Q4.

Paragon’s woes seen in Q4 net loss, soft fleet reportBankrupt driller Paragon Offshore ended 2016 with another rocky quarter with a

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

six jackups and other capital spares.Paragon filed for bankruptcy in February 2016 but has struggled to get

parties to agree on a reorganization plan. The latest plan was agreed to in January, which gives equity to debtholders and cuts out existing shareholders.

The reorg plan also included a new business strategy to focus on the North Sea, India and the Middle East. The company released a fleet status report with its earnings that reflected that strategy. Of Paragon’s 40 rigs, only eight—all jackups—are operating and all are inside those areas. Paragon has 12 rigs in the Gulf of Mexico, with seven stacked and the other five available.

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 in the North Sea that begins in late March. One rig, the MSS2 out of Puerto Rico, had its status changed to scrapped. Paragon announced in the report that it will now issue fleet status reports every quarter instead of every month.

Developments & Trends

TES has also purchased 235,000 Savanna shares on the Toronto Stock Exchange, which would help it gain standing in court should it wish to pursue an investigation of actions taken by Savanna’s management. TES believes that actions taken by Savanna, particularly

the $20 million early termination fee, “represent defensive tactics” aimed at thwarting Total’s takeover attempts. Savanna responded that the termination fee was appropriate, as it was ~5.0% of Savanna's equity capitalization at the time of

the LOI with Western and ~6.1% of equity capitalization at the time of entering into the arrangement agreement.

Savanna defended the Western deal, saying that in addition to the greater ownership it provides Savanna’s shareholders, the Western deal presents more advantageous synergies, as the market cap of Savanna-Western would be solely correlated to drilling, well servicing and related rentals, whereas TES-Savanna would be a mixture of businesses that are not as closely related. In terms of drilling rig utilization, so far this year utilization of Savanna’s and Western’s fleets were 51% and 60%, respectively, compared to 14% for Total’s 18 rigs.

Philadelphia Stock Exchange’s Oil Service Sector Index Vs. S&P 500

-4.00%

-3.00%

-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

S&P 500 PHLX

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

Source: PLS Research Using Google Finance

Savanna ready to be acquired by Western Continued From Pg 6

CEO says deepwater still the place to replenish reserves ‘in one go.’

Vantage added jackup from Hercules Offshore liquidation.

Paragon’s Q4 net loss rose $216.8MM YOY to $244.4MM.

Savanna says Western deal has better synergies than TES can offer.

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OilfieldServiceS 8 March 23, 2017

■ CARBO Ceramics refinanced its bank debt with a $65.0 million debt placement with investment firm Wilks Brothers. The new debt placement includes an initial funding of $52.7 million plus an additional $12.3 million to be released after certain conditions have been satisfied. The loan bears interest at 9% and gives CARBO a payment-in-kind option at 11% during the first two years of the loan. Wilks Brothers is an investment fund that was started in 2011 after the family sold its stake in FracTech, the pressure-pumping company that the family founded in 2002.

■ SemGroup Corp. is offering $325 million in senior unsecured notes maturing 2025, which it will use to help purchase senior notes due 2021. Any remaining proceeds will go to general corporate purposes.

Strong demand, debt refi inspires Trinidad to double capexTrinidad Drilling has more than doubled its capex budget to C$90 million ($67

million) as demand for high-performance rigs in the Permian Basin continues to grow. The company’s new 2017 capital budget dedicates C$75 million to rig upgrade projects, up from C$22 million from the capex budget announced in January, and C$20 million to maintenance capital, up slightly from C$18 million. Trinidad President and CEO

Brent Conway said Trinidad will fund the capex expansion with cash from operations and cash on hand.

The Calgary-based company intends to upgrade 27 rigs in 2017, with approximately two-thirds of the upgrade capital directed toward Trinidad's US fleet. Planned projects for the rigs include increasing the pressure capacity of mud circulating systems to 7,500 psi, adding mud pumps, moving systems and high-torque top drives, and making bi-fuel upgrades. Since 3Q16, Trinidad has reactivated 18 rigs in the US, and Trinidad said “the vast majority” of reactivated rigs had received the upgrades now planned for the 27 rigs.

A series of debt-refinancing offerings have also led to Trinidad’s expanded capex plans. Trinidad closed the redemption of its $450 million in 7.875% senior notes due 2019 earlier in March. It was the last in a series of transactions to reduce its debt load, including a private placement of $350 million 6.625% senior notes due in 2025 and an offering of 47.5 million shares with gross proceeds of C$150 million ($112 million).

These transactions extend Trinidad’s long-term debt maturities to 2025 and lower the interest rate on its senior notes from 7.875% to 6.625%. “Our lower leverage and improved flexibility following our recent debt restructuring and equity offering have positioned us well to take advantage of improving market conditions,” said Conway, who also became Trinidad’s CEO on March 12.

Fracking equipper NCS Multistage files for $100MM IPONCS Multistage has filed the paperwork for an IPO, looking to raise up to $100

million to pay off debt. The Houston-based fracking equipment maker did not file the number of shares that would be issued, the pricing or when an IPO would take place.

The company was founded in 2006 as NCS Oilfield Services (Canada) to sell coiled-tubing fracturing tools

for the coalbed methane gas. NCS incorporated in the US in 2008 and relocated to Houston, shifting its focus on the oil and gas sector. Since 2006, NCS stimulation products and services have been used in the completion of more than 7,600 wells, the company said in its preliminary prospectus.

NCS reported a net loss of $17.9 million in YE16 compared with a net gain of $28.0 million in YE15. YE16 revenue was $98.5 million, a 13.6% decline from YE16.

At YE16, NCS had $90.8 million of senior secured debt outstanding.

In the prospectus, NCS said its focus was increasing its market share in the US especially the Permian Basin. “Sales of our products and services in the Permian Basin contributed 56% and 43% of our revenue in the United States in 2016 and 2015, respectively,” the prospectus said.

The company’s main offering is its Multistage Unlimited family of completion products and services, which the company said allows pressure pumpers to have any number of stages at the desired spacing to maximize production. Credit Suisse, Citigroup and Wells Fargo Securities filed as joint bookunners for the IPO.

Capital Proppant manager Solaris plans $100MM IPO

Solaris Oilfield Infrastructure, a Houston-based company with patented mobile proppant management systems, has filed paperwork for an initial public offering. The company seeks to raise $100 million to keep up with expected demand growth from frackers.

The company started operations in April 2014 with two systems and ending 2016 with 33. “We currently have more demand for our systems than we can satisfy with our existing fleet, and we expect to increase our fleet to between 60 and 64 systems by the end of 2017 in response to customer demand,” Solaris said.

Every quarter, Solaris system revenue days have increased except 2Q16. Solaris said it had net income of $2.8 million in YE16 on revenue of $18.2 million and total debt of $3.2 million. Its most active areas are the Permian Basin, the Eagle Ford and the SCOOP/STACK. Solaris manufactures its equipment in a facility in Early, Texas, between the Permian and the Eagle Ford.

Solaris plans to use the IPO proceeds to fund its 2017 capex budget of $40.0

-55.0 million as well as paying down debt. Credit Suisse and Goldman, Sachs & Co are serving as bookrunners.

Developments & Trends

All Standard Disclaimers & Seller Rights Apply.

January 13, 2015 • Volume 08, No. 02

CapitalMarketsServing the marketplace with news, analysis and business opportunities

NORTH TEXAS SALE PACKAGE 18-Wells. ~4,000-Gross Acres.PARKER, JACK & ERATH COUNTIESBig Saline, Marble Falls, Atoka Sand, PP-- & Conglomerate Reservoirs.Behind-Pipe Potential In Each WellAdditional Barnett Shale PotentialAll Acreage HBP. 18 Leases. 19275-100% Operated WI; 80% Lease NRI MCFDGross Production: 271 MCFD & 33 NGLsNet Production: 192 MCFD & 23 NGLPP 3426DV

KERN CO., CA PROPERTY ~18,000-Contiguous Net Acres.BEER NOSE FIELDBloemer Tight Sandstone Objective. PPEstimated Depth: 10,000-15,000 Ft.Also Monterey, Belridge, Gibson, Oceanic,Santos, Tumey & Kreyenhagen Potential. TIGHT100% OPERATED WI; ~77% NRI SANDGross Production: 36 BOPD & 57 MCFDNet Production:27 BOPD & 44 MCFD6-Mn Avg. Net Cash Flow: ~$28,800/MnPP 5217DV

FEATURED DEALS

Rice Midstream IPO raises $474MM in tough market

After a fairly banner 2014 for energy IPOs on the whole but a significant dry spell for all segments other than midstream through the last few months of the year, Rice Energy put a nice bow on 2014 with its buzzer beater Rice Midstream Partners IPO. Rice sold 28.75 million units at $16.50, for total gross proceeds of $474.4 million, and $441.6 million net. Units priced 17.5% below the midpoint of the

targeted price range of $19-$21/unit, probably reflecting the challenges the energy sector has seen of late in terms of obtaining financing. However, in an interesting turn for an underpriced IPO, subsequent demand was strong enough to merit full exercise of a 3.75 million unit option (included in the above gross proceed total) which boosted proceeds by $61.9 million.

Upstream MLPs under fire as distributions cut Upstream MLPs have been the subject of much discussion of late as a particularly

at-risk segment of the energy patch, and these concerns have in fact been realized for at least some partnerships with distribution and capex cuts. MLPs in general have been favored for their bond-like, high-yield distributions, stemming from preferential tax treatment for reinvesting a high percentage of profits back into the business. However, they also generally rely heavily on debt to fuel growth. And unlike their midstream brethren which are better positioned to weather recent commodity volatility with long-term, fixed-price contracts, upstream MLPs face full exposure to the recent oil and gas price declines, except to the degree they make use of hedges. However, hedges will largely peel off over the course of the year, and many of these partnerships will soon face the difficult decision of using cash to cover interest requirements and maintaining what may have become unsustainable payouts, or slashing the distributions which drew investors to them in the first place so they can make debt levels more reflective of current economics.

Concho dials capex back $1.0 billion in second look In a rather noteworthy example of what many companies which announced 2015

spending plans early are dealing with these days, Concho Resources revised its capex for this year to more accurately reflect current market conditions. In early November

when WTI was still trading above $78/bbl, Concho had announced a $3.0 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.

With oil now near $45, that clearly hasn’t happened, and Concho has proceeded accordingly with a new $2.0 billion plan 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 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 49% vs. prior budget and 22% of total) and the remaining $200 million or 11% targeting the New Mexico Shelf (down 47% from prior budget and 14% of total).

Southwestern plans multibillion equity raise to fund buys The implications of Southwestern Energy’s $4.98 billion acquisition of West

Virginia and southwest Pennsylvania assets from Chesapeake Energy (plus another $394 million in add-ons in the region from Statoil) are beginning to become apparent for the company, with impacts on both Southwestern’s capital structure and capex.

The company is finally providing a clearer picture of how it plans to permanently fund the Chesapeake deal. The acquisition was funded

at closure with a $4.5 billion bridge loan and a two-year $500 million unsecured term loan, but significant sums of longer-term debt and equity were clearly needed.

In line with its previously announced intentions, Southwestern announced a proposed equity sale which should raise $1.8- $2.1 billion, depending on whether options are exercised. Specifically, the company plans to sell 20.26 million shares of common with a 3.04 million share option, and 26 million depositary shares (each amounting to a 1/20th interest in Series B mandatory preferred shares) with 3.9 million shares in possible options.

Should raise $1.8-$2.1 billion in equity depending on whether options go.

Boosting focus on Delaware Basin from 64% of prior budget to 72%.

Upstream MLPs are choosing between debt loads & distributions.

Units priced 17.5% below midpoint at $16.50 but option fully exercised.

Continues On Pg 4

Continues On Pg 6

Continues On Pg 8

Continues On Pg 14

Smart Sand IPO brings in nearly $130 million.

CapitalMarkets Nov. 18

Founded in Canada, NCS now based in Houston and focused on Permian Basin.

NCS reported net loss of $17.9MM after revenue declined by 13.6% in YE16.

Trinidad has reactivated 18 rigs in the US since 3Q16.

Access PLS’ archive for previous oilfield services newsFor general inquiries, email info@plsx.com

Volume 07, No. 03 9 ServiceSectOr

Date Location AbstractAfrica

Mar. 23 Tunisia- Dougga ADX Energy has engaged TechnipFMC to undertake a development concept study for the Dougga Gas Condensate discovery.

Mar. 21 Ghana- Sankofa TechnipFMC has been awarded a contract to perform the project management, engineering, supply, construction and commissioning for the Onshore Receiving Facilities.

Mar. 15 Niger- R3 & R4 Savannah Petroleum confirms that it has signed a Letter of Award with Great Wall Drilling for three firm wells using Rig 89, with options for a further six wells.

Mar. 9 Cote d'Ivoire Ophir Energy will be employing the Seadrill drillship West Saturn to drill the Ayame-1X exploration well in May.

Mar. 6 Nigeria- OyoThe Pacific Bora drillship has been awarded a $195,000/day contract by Erin Energy to drill 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

Mar. 22 Norway- Maria 4Subsea has been awarded the wellhead integrity monitoring contract for Odfjell Drilling on the Deepsea Stavanger drilling operations on the field for the coming 12-18 months.

Mar. 21 Norway- Johan Sverdrup

Kvaerner has signed a contract with Statoil for delivery of a FEED study on Johan Sverdrup Phase 2 for P2 Jacket. Work starts immediately and will continue until delivery of final FEED study report Feb. 1, 2018.

Mar. 21 Norway- Johan Sverdrup

Aker Solutions has secured a FEED contract from Statoil for project phase 2, for a new process-ing platform and the bridge that will connect it to the development's riser platform. The contract also includes the design of a module and the work to integrate this with the riser platform. It will be delivered in 1Q18.

Mar. 13 Norway- OsebergAibel 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 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

Mar. 22 Australia- PreludeEnerMech 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 monitoring of the umbilical and electrical steel flying lead during pipelay, and electrical flying leads and umbilical testing.

Mar. 10 Indonesia- Duyung

Conrad Petroleum will hire the jack-up COSL Seeker for a one-well campaign in the the Duyung PSC in the Natuna Sea.

Mar. 10 Indonesia- South Sesulu

Saka Energy will award COSL a contract for use of the jackup Hai Yang Shi You 937 for a minimum two-well campaign at the Ujung Pangkah and South Sesulu PSCs in East Kaliman-tan. Work begins in Q2.

Mar. 8 Indonesia- Natuna Premier Oil has issued an LOI to Apexindo for a two-phase drilling contract using the Tasha jackup. 

Mar. 2 Australia- Prelude FLNG

Swift Networks won a material long-term contract for Shell’s Prelude FLNG. Through its agreements with Shell and Nokia, Swift will deliver a broad suite of entertainment and connectivity services to Prelude FLNG for an initial period of five years.

Middle East & North Africa

Mar. 10 Oman- West Bukha

DNO International hired COSL's jack-up rig COSL Strike for a three-month campaign at the West Bukha-5 area off Oman.

Mar. 7 Oman- multiplePDO has awarded Kentz Overseas (SNC-Lavalin) a five-year commissioning support services framework agreement for several o&g projects, including Rabab Harweel Integrated Project and the Yibal Khuff Project.

Asia

Mar. 10 India- Neelam ONGC has contracted Siemens to overhaul 18 RT48S and RT56 turbines operating on platforms at the Mumbai High, Neelam & Heera complexes.

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Ezra follows JV, EMAS Chiyoda Subsea, into bankruptcy

Ezra Holdings, one of the largest offshore drillers in Asia, has filed for Chapter 11 protection in the US, only weeks after one of its JVs, EMAS Chiyoda Subsea Inc., did the same. Ezra wholly owned subsidiaries EMAS IT Solutions and Ezra Marine Services are also part of the petitions for reorganization.

In addition to the common struggles facing the offshore industry, Singapore-based Ezra was targeted in a series of recent claims from creditors and legal claims from business partners. Forland Subsea filed a claim in February for a defaulted October payment of NOK25.5 million ($3.0 million) for EMAS-AMC’s use of the Lewek Inspector in a project offshore Congo. VT Halter Marine sued EMAS Chiyoda Subsea in February for a breach of loan, seeking $3,298,153.22, and sued Erza for $3,207,663.36 together with accruing interest as the parent guarantor of the loan.

The last straw may have been a claim by Serimax North America seeking S$4,451,307.08 that was due under a guarantee granted by Ezra in connection with an April 2016 promissory note between Serimax and EMAS Chiyoda Subsea.

EMAS Chiyoda Subsea’s bankruptcy filing exposes Ezra to other liabilities including $400 million in unpaid charters and $500 million in loans guaranteed by Ezra. The JV is owned by Ezra (40% WI), Chiyoda (35% WI) and NYK (25% WI).

While EMAS Chiyoda Subsea has an order book of more than $1 billion, the dates of these projects are in flux, making utilization levels hard to calculate, the JV said. A $90 million loan from Chiyoda and Subsea 7 will give the JV immediate liquidity, but the loan requires that a reorganization plan be filed in 60 days.

EMAS Chiyoda Subsea said its Norwegian sub, EMAS-AMC AS, is not covered by the Chapter 11 filing and will be liquidated because “there are limited prospects for the company in Norway in the foreseeable future.”

Canadian frac services firms Source, Step postpone IPOsTwo oilfield services providers in Canada, Source Energy Services and Step

Energy Services, are not going forward with their planned initial public offerings, 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 thought only a month ago to be predictive bellwethers of future Canadian oil and gad IPOs this year.

Source, Canada’s largest fracking sand distributor, postponed its IPO after initially planning to raise $300 million, citing adverse market conditions. In the March 2 announcement, Source said renewed demand in drilling as oil prices recovered starting in 4Q16 prompted its pursuit of an IPO. The decline in prices since early March after Saudi Arabia announced its output was once again above 10 MMbbl/d reportedly moved the company to downsize its planned offering and ultimately to its delay.

The company originally expected to offer 15,000,000-17,647,059 shares at $17-$20 per share, implying a valuation of $902 million for the company. Two days before

the announced delay, Bloomberg reported that it cut the size of the offering due to the recent decline in oil prices, planning

to sell 16.7-19.2 million shares at between $13 and $15 each and an additional 500,000-600,000 in a secondary offering. Source had planned to use the proceeds to finance the acquisition of a new facility near Blair, Wisconsin, and pay down debt.

Arc Financial-backed fracker Step Energy Services had planned to raise about $200 million in a public offering, but the financing is now in doubt. Like Source, the company opted to postpone the IPO after oil prices fell below $48/bbl in mid-March. Sources told Bloomberg News that the company lowered the price range for marketing its shares from $14-$16 each to $10-$12 each on March 15.

The Calgary-based company planned to use proceeds to pay down debt, fund its 2017 capital program and for general corporate purposes.

New West borrows $6.0MM to buy fleet, restructure debtNew West Energy Services is taking out a $4.8 million loan to acquire a fleet of oil

and gas fluid transportation equipment. The Calgary-based company has also taken a $1.2 million loan and forwarded the cash to its subsidiary, Bearstone Environmental Solutions,

to repay a term loan with Bearstone's previous lender.

NWE said it would use a six-year, 7.2% loan to acquire the fleet includes various combinations of bulk fluid transport trailers, tractors and tank trucks capable of hauling water for fracking operations as well as drilling and production fluids. Specifics of the fleet were not included.

The same unidentified lender also issued a five-year loan at an interest rate of 7% that Bearstone will use to pay off its prior term loan, and made available to Bearstone

a revolving term credit facility of up to $3.0 million.

Bearstone will first use the revolver to pay off the $620,000 balance on its prior credit facility. The new facility will run for three years and charge a rate equal to the Canadian prime rate plus 4.3%.

“This transaction further diversifies our services into the completions and production sectors of the oil and gas industry and allows us to take on larger projects,” NWE President and CEO Gerry E. Kerkhoff said.

NWE has issued to the lender a common share purchase warrant that will entitle the lender to purchase up to 6 million common shares for $0.05 per share for three years.

Capital

Loan sent to Bearstone so it can pay off loan from another lender.

CEO: 'Diversifies our services into the completions and production sectors.'

Source on March 2 praised renewed demand in drilling.

Step planned to raise $200 million to pay down debt, fund capex.

EMAS Chiyoda Subsea is liquidating its Norwegian subsidiary.

Access PLS’ archive for previous oilfield services newsFor general inquiries, email info@plsx.com

Volume 07, No. 03 11 ServiceSectOr

At the time, Amec had annual revenue of $6.9 billion, while Foster Wheeler reported $3.9 billion in sales in 2012. The result was a combined company offering an array of engineering, consulting and construction services not only for companies in the oil and gas industry but also power generators, miners and infrastructure markets.

However, $1.4 billion of the acquisition was financed, giving the company a debt

load that would plague it when oil plummeted from $100/bbl to $40/bbl. Amec Foster Wheeler CEO Samir Brikho, who masterminded the merger as Amec CEO, resigned in January 2016 and was replaced on June 1 by Jonathan Lewis, a former Halliburton SVP. Since then, the company has been divesting assets including selling its core boiler business to Sumitomo Heavy Industries for £137 million in a deal announced on March 2.

Amec Foster Wheelerʼs revenue for YE16 was £5.44 billlion, down 8% YOY, for a trading profit of £318 million. Amec Foster Wheeler had $1.0 billion in debt in YE16. 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 March 13 suspended the rights issue.

The combined company will have net debt of $1.6 billion, representing 1.9x 2016 pre-merger EBITDA, which is “expected to trend” to a preferred rate of 0.5x to 1.5x within 18 months, according to the 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 services multinational from oil and gas volatility. The O&G unit makes up 85% of Wood 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 scale and enhanced capability, diversified across the oil and gas, chemicals, renewables, environment an infrastructure and mining segments,” Wood Group Chairman Ian Marchant said.

Watson will be retained as CEO, and Marchant will continue as chairman of the combined group. Wood Group CFO David Kemp will be the combined group’s CFO. Four members of the Amec Foster Wheeler board will join the combined group’s board, including Roy Franklin, who will be deputy chairman and senior independent director.

Wood Group received financial advice from J.P. Morgan Cazenove and Credit Suisse. Amec Foster Wheeler was advised by Goldman Sachs International, BofA Merrill Lynch and Barclays.

Buckhorn hired by XTO for Williston wastewater systemBuckhorn SWD Solutions will start construction next month of a water

gathering and disposal system to support ExxonMobil sub XTO Energy in McKenzie County, North Dakota. The 87-mile pipeline and disposal system will provide water-gathering and disposal services for XTO operations in the Williston

Basin and will be built, owned and operated by Buckhorn. While designed for XTO’s acreage, the system will also serve other

operators’ wells in the area under the service agreement. The system will featured fixed, buried pipelines, which will include a gathering line to transport produced and flowback water for disposal or recycling. Financial terms or the length of the agreement were not disclosed.

Founded in 2011, Colorado-based Buckhorn provides midstream gathering systems, saltwater disposal solutions and waste management for the oil and gas sector.

Amec Foster awarded contracts by Centrica & Shell

Amec Foster Wheeler has continued to do business, announcing two days after Wood Group’s merger offer an

extension to its engineering, construction and project support contract by Centrica

for its Morecambe Bay onshore and offshore gas production assets. The £60 million agreement extends the contact until YE19.

The company also reported in March that it has reached a five-year global enterprise framework agreement with Shell Global Solutions International to provide engineering, procurement and construction management for its downstream projects across the world. It also had been awarded a FEED contract from Brunei Shell Petroleum for the rejuvenation of O&G assets in Brunei including the South China Sea. The Brunei contract will run until March 2022, with two one-year options to extend. Financial terms on these two contracts were not released.

Contracts

Wood Group lands Amec Foster Continued From Pg 1

Amec bought Foster Wheeler for $3.2B in 2014.

After changing CEOs, Amec Foster selling assets to pay down debt.

Amec Foster was going to suspend dividend & seek to raise $500MM.

Contracts include EPC management around the world.

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OilfieldServiceS 12 March 23, 2017

SOUTH TEXASSOUTH TEXAS ROYALTY 36-Producing Wells.LIVE OAK COUNTY PPHORIZONTAL EAGLE FORD SHALEEagleville Field EAGLEVarying ORRI Up To 2.46% Plus Small WI FORDGross Production: 2,036 BOEDNet Production: 39 BOED (63% Oil)PP 2810

UPPER GULF COAST PROPERTYMultiple Properties.GULF COAST CONVENTIONAL PPPredominantly Operated 65% Avg WICurrent Production: ~1,850 BOED ~1,850Proved Reserves: 13,088 MBOE BOEDTotal Proved PV10: $185,964,000Sub Package To A Larger OfferingAGENT WANTS OFFERS MAR 27, 2017PP 2102

SOUTHEAST TEXASSAN JACINTO NONOPERATED SALE8 Producing Wells. 31 Behind Pipe.SHEPHERD FIELD Wilcox Consolidated FormationUp to 9.25% WI & 7.23% NRI PPEst. Net Prod: 20 BOED (35% Oil)~$14,000/Mn Avg. Net Cash Flow WILCOX53.3 MBO & 1.6 BCF in Net Proved Resrvs$2,703,910 Net Proved PV10Third Party Engineering ReportOperated By Arcadia Operating LLCOFFERS DUE APRIL 3, 2017PP 8416DV

SOUTHEAST TX NONOPERATED SALE43 Producing Wells. POLK LIBERTY & MONTGOMERY COS. Wilcox, Jackson, Yegua & Cockfield.~10% Avg WI & ~7.43% Avg NRI PPEst. Net Prod: 52 BOED (99% Oil)$29,000/Mn Avg Net Cash Flow ~501.4 MBO & 157.8 MMCF Net PDP Reserves BOED$2,121,430 Net PDP PV10Third Party Engineering ReportOperator: Arcadia Operating, LLCOFFERS DUE APRIL 3, 2017PP 7771DV

SOUTH LOUISIANAVERMILION PH., LA NONOP PACKAGE2-Properties. 2,683-Net Acres.ERATH FIELD PPNONOPERATED WI AVAILABLE NONOPGross Prod: 27 BOPD & 70 MCFDAGENT WANTS OFFERS MAR 29, 2017PP 9534

MULTIPLE TEXAS GULF COASTSOUTH TEXAS PROPERTYMultiple Properties.SOUTH TEXAS CONVENTIONALPredominantly Operated 76% Avg WI PPCurrent Production: ~3,150 BOEDProved Reserves: 21,644 MBOE ~3,150 Total Proved PV10: $102,964,000 BOEDSub Package To A Larger OfferingAGENT WANTS OFFERS MAR 27, 2017PP 2101

SOUTH TEXASLAVACA CO., TX NONOP PACKAGE8-Producing Wells. 5-NonProducing Wells.GULF COAST BASINBehind Pipe & Numerous Drilling Locations PPAvg 28% NonOperated WI; 22% NRIGross Prod: 134 BOPD & 3,629 MCFD NONOPOperators: Strand Energy & Trio Consulting7-Mn Avg Net Cash Flow: $71,302/MonthTotal Proved PV10: $7,200,000Proved Producing PV10: $3,100,000CONTACT AGENT FOR UPDATEPP 2816DV

SOUTH TEXAS ASSETS FOR SALE567-Operated Wells. 53,410-Net Acres.ZAPATA, STARR, HIDALGO, BROOKS& LAVACA COUNTIES PPRecompletion/Refrac & Workover ProgramAvg 87% OPERATED WI AVAILABLE 43Est Feb 2017 Net Prod: 43 MMCFED MMCFEDEst Next 12-Mn Cash Flow: $2,416,666/MnTotal Proved Reserves: 333 BCFETotal Proved PV10: $259,000,000AGENT WANTS OFFERS MARCH 2017PP 2793DV

SOUTH TEXAS PROPERTIES~250-Producing Wells. ~51,000-Net Acres.EAGLE FORD SHALEAll Rights & All Depths PPLower Eagle Ford, Austin Chalk & BudaAcreage Is 93% Held By Production. 4,400>275 Gross Drilling Locations Identified. BOEDOperated & NonOperated WI AvailableCurrent Net Production: 4,400 BOEDProduction Is >90% Oil12-Mn Cash Flow: ~$3,750,000/MonthCONTACT AGENT FOR MORE INFOPP 2560DV

NORTH LOUISIANACLAIBORNE PH., LA PROPERTY 28-Active Wells. 29-PDNP. 124-PUD.OAKS & E. HAYNESVILLE FIELDSFrac & Recompletion Upside. PPHORIZONTAL COTTON VALLEY PUDMostly 100% OPERATED WI. ~400Gross Production: >500 BOED BOEDNet Production: ~400 BOEDNet Proved Reserves: ~15.7 MMBOENet Proved PV10: ~$161,200,000PP 9050DV/RE

NORTH LOUISIANA SALE PKG 3,235-Net Acres. 19-HBP Units.HAYNESVILLE SHALEBienville, Caddo, DeSoto & Red River PPArea With High Gas & Over Pressure75 Undrilled & 28 Additional Locations.Upside In Extended Laterals & ReFracs ~400NonOperated WI Available BOEDCurrent Net Production: 2,138 MCFDNet Proved Reserves: 5.2 BCFNet Proved PV9: $3,452,760PP 9051DV/RE

OUACHITA PH., LA PROSPECT4-Producing Wells. 3,150-Net Acres.NORTH LOUISIANA TRENDExtension Of HZ Bossier Trend PPBossier A Upper Red At 10,800 Ft.Bossier A Lower Red At 11,050 Ft.30-Potential Wells.2D Seismic & Subsurface Geology BOSSIER100% OPERATED WI; 75-80% NRICurrent Production: 330 MCFDEst Net Reserves: 13 BCF Per WellEst Net Project Reserves: 390 BCFTotal Net PV10: $138,000,000DHC: $1,700,000; Compl: $8,000,000PP 2585DV

RED RIVER PH., LA PROPERTIES55-Producing Wells. 7,886-Net Acres.COTTON VALLEY & HAYNESVILLE36-Operated Wells. 18-NonOperated. PP74 HZ Drilling Locations Identified.Additional Behind Pipe Recompletions ~9.5Operated & NonOperated WI Available MMCFEDEst Mar 2017 Production: 9.4 MMCFEDEst Mar 2017 Cash Flow: $705,000/MnNet Proved Reserves: 412 BCFENet Proved PV10: $225,000,000AGENT WANTS OFFERS MAR 29, 2017PP 2857DV

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Volume 07, No. 03 13 ServiceSectOr

Schlumberger, Subsea 7 receive EPC contracts worth up to $1BSchlumberger company OneSubsea and Subsea 7 have received engineering,

procurement and construction (EPC) contracts that are estimated to be worth up to $1.0 billion from BP to work on its deepwater Mad Dog Phase 2 development in the Gulf of Mexico. The EPC deals will establish the underwater framework for BP’s $9

billion project. OneSubsea was

awarded the subsea production systems (SPS) contract, which includes subsea manifolds, trees, control system, single and multi-phase meters, water analysis sensors, intervention tooling and test equipment for producer and water injection wells associated with the project.

Subsea 7 will provide the subsea umbilicals, risers and flowlines, known as the SURF contract, and associated subsea architecture. The project will also be the first substantial project in the US to use Subsea 7’s Swagelining polymer-lining

technology. Installation is scheduled for 2019 and 2020.

Subsea 7 said the value of the contract was $300-500 million. RNC Capital analysts estimated Schlumberger’s award at $250-500 million. Subsea 7, Schlumberger and OneSubsea regularly work together on SPS and SURF projects under a Subsea Integration Alliance.

Wood Group awarded $85 million in Mad Dog 2 work—Wood Group received two contracts to offer engineering services to support

Mad Dog 2’s floating production unit, which Wood Group designed. In an $80 contract, Samsung Heavy Industries contracted Wood Group to provide detailed engineering and procurement services for the topsides of the unit. Wood Group’s Specialist Technical Solutions business also was awarded from BP a $4.89 million contract for subsea engineering 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 be moored approximately about 190 miles south of New Orleans in 4,500 ft of water. Oil production is expected to begin in late 2021.

Diamond Offshore wins in rig dispute over PetrobrasBrazilian NOC Petrobras illegally canceled the contract for Diamond Offshore

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.

Petrobras said it was terminating the contract last August, but Diamond won a preliminary injunction in September,

declaring that the contract would stay in force until it expired or further court action. The Brazilian company filed an appeal on Oct. 4, but the appellate court ruled in Diamond’s favor on March 15. Petrobras has the option of appealing to Brazil’s Superior Court of Justice.

Diamond Offshore has faced many of the same woes as others in the industry, including reporting a YE16 net loss of $415.2 million, 52% worse than in YE15, on $1.60 billion in YE16 revenue, down a third from YE15. However, Diamond has a significant project backlog. For example, five of its eight Gulf of Mexico rigs are under contract, three until 2020.

Seadrill takes $170MM settlement over semisub

Seadrill will receive $170 million in cash to settle an arbitration battle with Hyundai Samho Heavy Industries over the delayed construction of the West

Mira, an ultra-deepwater semisub. As part of the

deal, HSDI will sell the West Mira to Seatankers, an asset-holding company created by John Fredriksen, representing a new venture by the Seadrill chairman.

The US offshore driller ordered the West Mira in 2Q12 with a contracted delivery date of Dec. 31, 2014. The unit was not delivered at that time so Seadrill cancelled the contract. Arbitration proceedings began in October 2015, with Seadrill seeking the $168 million in pre-delivery installments to the South Korean shipbuilder plus interest.

Arbitration proceedings were expected to conclude in 1H18. The early deal could help the driller as it struggles with the industry downturn and debt restructuring. However, Seadrill will take a non-cash impairment of $44 million to reflect the difference between the carrying value of the West Mira receivable and the cash payment.

Seatankers also has an option to buy from HSHI the Bolstand Dolphin, a rig that Fred. Olsen Energy ordered but canceled when delivery was delayed, for $400 million. Fredriksen intends to transfer the rigs to Northern Drilling, a company he registered in Norway on March 20. Media reports are he intends to buy distressed rigs through Seatankers, and transfer them to Northern until he can sell them for a profit. Seadrill will operate the rigs and be given the right to match any sale offer.

Contracts

Appellate court says Ocean Valor's contract illegally canceled.

All Standard Disclaimers & Seller Rights Apply.

January 14, 2015 • Volume 07, No. 01

InternatIonalDealsServing the marketplace with news, analysis and business opportunities

International M&A falls 21% to $60 billion in 2014

Global upstream deal activity saw an impressive 30% rise in terms of total deal value to US$185.0 billion during 2014. However, this upswing was due entirely to skyrocketing acquisition activity in the US (up 79% to $98.3 billion) and Canada (up 132% to $26.6 billion). Looking just at the international picture, activity was down 21% in terms of deal value to $60.0 billion and 30% in terms of deal count (including transactions without disclosed values) to 399.

Major increases in deal value were seen in Asia (69% to $8.0 billion), the South Pacific (442% to $11.3 billion), and the North Sea/Europe (118% to $12.7 billion). However, these increases were overwhelmed by a combined $35.0 billion decrease in activity in Africa (54% to $9.6 billion) and the FSU (72% to $9.0 billion).

Seplat’s Afren takeover bid threatened by Kurdish writedownJust days after Nigerian oil firm Seplat Petroleum Development confirmed

making a preliminary approach to acquire Afren, the target company’s takeover 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. Based on reprocessed 3D seismic and its drilling campaign, the report eliminates 190 MMbbl of previously estimated proved plus probable oil

reserves and reduces the 2C resource estimate by 80% to 250 MMbbl from 1,243 MMbbl.

The previous estimate reported in 2012 had been the basis from the London-based company’s approved development plan. It is now considering strategic options for the project in light of the update. Afren’s stock fell 30% on the London Stock Exchange to close at 27.31 pence on January 12, the day the update was released—eliminating the bump experienced when rumors of the takeover bid broke in mid-December. The news comes one week ahead of the January 19 deadline for Seplat to make a formal offer for Afren.

Chinese group offers $100 million for Kazakh oil projectContinuing 2014’s trend of non-traditional Chinese oil and gas buyers entering the

E&P space into the new year, a consortium led by publicly listed Xinjiang Zhundong Petroleum Technology Co. plans to acquire the Galaz contract area in central Kazakhstan for US$100 million in cash and debt. The oil development is operated by South Korea’s LG International (40% WI) partnered with London-listed Roxi Petroleum (34.22%) and Baverstock (23.78%), a company controlled by Roxi board member and top

shareholder Kuat Oraziman.The 44,200-acre block in

Kyzylorda province contains the Northwest Konys project plus exploration upside on the east side of the Karatau fault system. Seventeen wells have been drilled at Galaz since 2008 and Northwest Konys 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.

Under the non-binding heads of terms, the Chinese consortium will acquire JV firm Galaz & Co. for $50.4 million cash plus $49.6 million in debt.

BP in talks with Rosneft to buy 20% in Siberian fieldRussian companies blocked by sanctions on other oil & gas deals

Rosneft is reportedly in talks to sell BP a direct 20% WI in subsidiary Taas-Yuriakh Neftegazodobycha, the license holder of its Srednebotuobinsk oil and gas field in Eastern Siberia. The deal would result in an effective 35.8% stake in the field for

BP, which is the Russian company’s largest private shareholder with 19.75% equity. According to unnamed sources cited by Russian daily Kommersant, the negotiations could result in

a US$700-800 million deal with closing expected in early 2015.

Rosneft acquired an initial 35.3% WI in Taas-Yuriakh for $444 million during the development phase in March 2012 and increased its stake to 100% WI in October 2013, shortly after reaching first oil. At that time the company projected 2014 production of 1.0 million tonnes (~20,000 bopd), increasing to 5.0 mtpa (~100,000 bopd) by 2017. It also assigned the field C1+C2 reserves of 134 million tonnes of liquids (~1.0 Bbbl) plus 5.47 Tcf.

THAILAND CONCESSION FOR SALE1-Onshore Concession.PHETCHABUN BASIN2-Onshore Exploration Assets. PP8-Production Licenses.Contains 12 Individual Oil Fields.20% WORKING INTEREST FOR SALE 4,000Gross Production: ~4,000 BOPD BOPD2P Net Reserves: 30 MMBOECONTACT AGENT FOR MORE INFOPP 6089

SURINAME OFFSHORE BID ROUND3-Blocks. ~6,420,000-Acres.(26,000 km2)SURINAME-GUYANA BASINHuge Prospective Blocks BWater Depths:~50-7,380 Ft. --- (15-2,250m)WORK PROGRAM BIDDING ROUND BIDProven Petroleum System ROUNDProduction: 16,000 BOPDBid Round is Closing January 30, 2015CONTACT PETROLEUM MANAGERBR 5103PP

FEATURED DEALS

Current ~20,000 bopd projected up 400% to ~100,000 bopd by 2017.

Consortium led by publicly listed oilfield service firm Xinjiang Zhundong.

New Barda Rash estimate eliminates 2P reserves, cuts 2C by 80% to 250 MMbbl.

Out of the top 30 international deals, not one buyer was a US producer.

Continues On Pg 8

Continues On Pg 11

Continues On Pg 15

Continues On Pg 6

Petrobras $5.2 billion gas pipe-line sale blocked.

InternationalDeals Feb. 16

Cash payment ends arbitration battle a year early.

Seadrill chairman to start new company using canceled rigs.

OneSubsea lands the SPS, Subsea 7 gets the SURF.

Schlumberger, Subsea 7 collaborate under a Subsea Integration Alliance.

Mad Dog 2 could include up to 14 production wells.

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OilfieldServiceS 14 March 23, 2017

MULTISTATE MIDCONTINENTOKLAHOMA & TEXAS PANHANDLE1,900 Wells. Production Plus Net MineralsANADARKO & HUGOTON830,000 Acres Plus 49,000 Net Minerals PPRemedial & Infrastructure UpsideWorkover Opportunities ~50OPERATED WI AVAILABLE MMCFDCurrent Production: 48 MMCFD (91% Gas)Acreage Is Held By Production.CONTACT AGENT FOR MORE INFOPP 2669DV

NORTH TEXASBARNETT SHALE ASSET SALE209-Wells. ~35,000-Net Acres.WISE, DENTON & TARRANT CO., TX PP~250 Remaining Barrett HZ LocationsHorizontal & Vertical Refrac Opportunities90% OPERATED WI; 69% NRI ~100Current Production: ~100 MMCFED MMCFEDProduction Is 85% GasOperating Cash Flow: $4,166,666/MonthCONTACT AGENT FOR UPDATEPP 2878DV

BARNETT SHALE PROPERTIES100,000-Acres (HBP).DENTON & WISE COUNTIES PPAcreage Is 90% Operated.OPERATED WI AVAILABLE ~70Current Production: 67 MMCFD MMCFD55% Dry Gas, 42% Natural Gas & 3% Oil2016 Cash Flow: ~$2,666,667/MonthCONTACT AGENT FOR MORE INFOPP 2663DV

JOHNSON CO., TX PROPERTIES25-Total Wells.BARNETT SHALE - MIDCONTINENT PP5-Operated Well. 20-NonOperated Wells.Operated & NonOperated WI Available BARNETTOperated Production: ~587 MCFDNonOperated Production: ~5 MCFDCONTACT SELLER FOR MORE INFOPP 2809

NORTH TEXAS ASSETS FOR SALE1,346-Producing Wells. 73,000-Net Acres.BARNETT SHALEAll Major Phase Windows Of Barnett PPAcreage Is 93% Held By Production>1,300 HZ Development LocationsVarying Operated & NonOperated WI 185Jan 2017 Production: 185 MMCFED MMCFEDProduction Is 65% GasEst 2017 Cash Flow: $9,916,666/MonthTotal Reserves: 2,875 BCFETotal PV10: $1,067,000,000CONTACT AGENT FOR UPDATEPP 2587DV

PERMIAN / WEST TEXASWEST TEXAS PROPERTIES FOR SALE10-Wells. 1,600-Total Acres.REAGAN & IRION COUNTIES PPSPRABERRY PLAYMidland Basin Vertical Targets &Wolfcamp Shale Horizontal Targets SPRABERRY160 Acre Spacing.OPERATIONS NEGOTIABLECurrent Production: ~6.6 BOPDCONTACT SELLER FOR MORE INFOPP 2808DV

REEVES CO., TX PROPERTY1-Producing Well. ~3,108-Net Acres.WEST TOYAH UNDEVELOPED LEASE PPPERMIAN BASIN512-Net Acres Held By Production. ~120OPERATED WI AVAILABLE BOEDGross Prod: 28 BOPD & 568 MCFDCONTACT AGENT FOR INFOPP 9170DV

WEST TEXAS SUB PKG FOR SALE56 Active. 21-SI. 2-SWD. 2 Inj. 9-TasSOUTHERN PERMIAN BASIN PP6,350 Gross Acres. 4,760 Net AcresExtensive Development PotentialGarza, Andrews, Howard, Pecos,Midland, Upton, Reagan, Sterling, Irion.Also Edwards County.~72% OPERATED WI; ~56% NRIGross Prod: 164 BOPD & 584 MCFDNet Production: 64 BOPD & 351 MCFDSELLER WANTS OFFERS BY APR 2017PP 9872DV

YOAKUM CO., TX PROPERTY3-Total Wells. ~22,291-Net Acres.PERMIAN BASIN - SAN ANDRES PLAY PP1-Producing Well. 2-TA’d Wells.Limited From Surface To 5,981 Ft. Or SAN100% OPERATED WI; 75-81.25% NRI ANDRESCurrent Production: 35-40 BOPDCONTACT AGENT FOR UPDATEPP 2654DV

KANSASKANSAS PRODUCING PROPERTY574-Producing Wells. 90,256-Net Acres.MONTGOMERY & WILSON COUNTIESCHEROKEE BASIN PPMississippian Limestone UpsideAdditional Upside In Several HorizonsDownspacing Opportunities Across Leases ~7.0Leases Can Deliver Avg 85% NRI MMCFEDNet Production: 7.33 MMCFEDProjected Feb 2017 Cash Flow: $368,300PDP Reserves: 22.9 MBO & 21.6 BCF3rd Party Gas Revenue: ~$40,000/MnCONTACT AGENT FOR UPDATEPP 2790DV

MULTISTATE PERMIANWEST TEXAS SALE PACKAGE70-Producing Wells. 24,386-Net Acres.CRANE, PECOS & TERRELL COS.CENTRAL BASIN PLATFORM PPUpper Devonian, Atoka, Strawn, Barnett,Woodford, Canyon, Montoya & ClearforkPotential For HZ Development In ~830Woodford & Barnett BOED50-100% OPERATED WI; 37.5-75% NRIRecent Net Production: 828 BOEDExpected Cash Flow: $550,000/MonthTotal Proved Reserves: 10,191 MBOETotal Proved PV10: $89,955,000AGENT WANTS OFFERS MAR 28, 2017PP 2780DV

WEST TEXAS SALE PACKAGE49-Total Properties.PERMIAN BASIN PPMultiple Counties4 Properties In Pecos County ~110Varying Operated & NonOperated WI BOEDGross Prod: 63 BOPD & 291 MCFDCONTACT AGENT FOR MORE INFOPP 9686

PERMIAN / NEW MEXICOSOUTHEAST NEW MEXCO SALE PKG19-Producers. 7-Shut In. 2,650 Net Acres.LEA, CHAVES & EDDY COUNTIES PPPERMIAN BASINExtensive Development Potential~93% OPERATED WI; ~73% NRIGross Production: 18 BOPD & 93 MCFDNet Production: 14 BOPD & 59 MCFDSELLER WANTS OFFERS BY APR 2017PP 9873DV

PERMIAN / WEST TEXASCONCHO CO., TX PROPERTY6-Properties. PPDON PFLUGER FIELDProducing, ShutIn & SWD Wells. PERMIAN100% OPERATED WI; 75% NRIGross Prod: ~123 BOPED & 71 MCFDAGENT WANTS OFFERS APR 5, 2017PP 2236

LOVING CO., TX PROPERTY22-Producing Wells. ~1,477-Gross Acres.PERMIAN BASINSurface To Base Of Cherry Canyon PPTarget Depth 6,800 Feet~28 Locations To Develop On 20-Ac Spacing 70Develop Infill Drilling Locations On Lease BOEDAvg 76.8% OPERATED WI; 77.46% NRICurrent Production: 65 BOPD & 30 MCFDCONTACT SELLER FOR MORE INFOPP 2841DV

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Volume 07, No. 03 15 ServiceSectOr

At least two-thirds of Canyon and one-half of Trican shareholders need to approve the deal. The merger, which is also subject to regulatory approval, is expected to close in H2.

The horsepower of both companies is completely committed, and Trican President and CEO Dale Dusterhof said “strong activity” is expected in H2. “Job sizes and horsepower per job continue to increase and the combined company will have ability

to respond to these changes in the market," he said.Trican foresees $20 million a year in pre-tax savings when the

companies are fully integrated next year. Expected synergies include additional leverage on the combined company's fixed-cost structure, reducing corporate overhead and optimizing operational facilities.

The acquisition is a change of direction for Trican, which spent much of 2016 in divestment mode. Trican sold its US pressure-pumping business to Houston-based well-completion services company Keane Group for C$267 million and a 10% interest in Keane Group Holdings, which it converted to $28.4 million after Keane’s IPO. The Calgary-based company also sold its completions tools business to Houston-based National Oilwell Varco last year for C$41 million, plus NOV stock that Trican

sold for C$27.9 million. Trican said it would use that money to pay down debt.

The sales of 2016 reflect a growing focus on Western Canada fracking for Trican. Activity in the Deep Basin and Montney and Duvernay shale formations generated 70-75% of Trican revenue in 4Q16.

Canyon focuses its operations on the Western Canada Sedimentary Basin with two business lines: fracking services and full-service fluid-management and hauling services. It spent the downturn cutting costs, including a March suspension of its dividend, and held a C$63.0 million stock issue to reduce debt.

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 standard for service quality, field execution and operating efficiencies,” said Fedora, who will join the Trican board of directors once the transaction closes.

RBC Capital Markets served as financial advisor to the Trican board, while Peters & Co. advised Canyon.

Baker Hughes, GR Energy Services reach services agreementBaker Hughes and GR Energy Services will share products and geoscience

capabilities under a new preferred services agreement. Providing wireline services in the New Mexico, Texas and Louisiana oilfield markets will be the initial focus of the collaboration between the global oilfield services supplier and the completion and production solutions company based in Sugar Land, Texas, with perforating

services as part of the agreement as well.

One of the tools GR offers is an addressable wireline release tool that safely and efficiently disconnects from a stuck tool assembly. GR said the tool eliminates the parting of the wireline during an overpull, which can leave hundreds of feet of cable in the well. The privately held company also said it has an ultra-efficient plug-and-play perforating system that offers efficient select-fire perforating and is simple and quick to assemble.

“This agreement will allow our customers greater efficiency, flexibility and opportunity to lower costs, by significantly expanding the availability of Baker Hughes’ leading technologies and the service portfolio available from GR Energy Services,” said Billy Anthony, SVP of wireline for GR.

■ Aker Solutions will provide engineering services for the upgrade of the semi-submersible Njord A in Norway for NOK 1 billion ($118 million). Platform

operator Statoil has exercised an option from an April 2016 agreement, under which Aker

will act as a subcontractor of Kvaerner for the engineering, procurement and construction of the project. "This is the largest offshore platform in Norway to have been brought to shore for a total upgrade," said Aker Solutions CEO Luis Araujo. Delivery is scheduled for 2Q20.

■ TechnipFMC will perform the project management for the onshore part of a development offshore Ghana.

The contract was awarded by Eni Ghana E&P Ltd., a subsidiary of Eni, Ghana

National Petroleum Co. and Vitol, and covers the Offshore Cape Three Points development of Sankofa field. TechnipFMC will do the engineering, supply, construction and commissioning of the onshore receiving facilities in Sanzule. The project is scheduled for completion in mid-2018. Financial terms were not released.

■ TechnipFMC, Subsea7 and Aker Solutions has received FEED contracts for VNG Norge’s Pil & Bue project offshore Norway. The SURF (subsea structures, umbilicals, risers and flowlines) contract went to Subsea7 and TechnipFMC, while the SPS (subsea production systems) contract was awarded to TechnipFMC and Aker Solutions. Financial details were not disclosed.

■ Australian consultant WorleyParsons has reached a long-term agreement with Chevron for engineering and procurement services. The multi-regional agreement including numerous WorleyParsons locations involves use in all engineering phases in Chevon’s capital projects from conventional engineering to final design. Financial terms were not released.

Contracts

A&D

Trican buys fellow Canada fracker Canyon Continued From Pg 1

Global giant, privately held Texas company connected by agreement.

Trican CEO: Deal in preparation for ‘strong activity’ in H2.

Trican sold completion tools business and US fracking business last year.

Canyon raised C$63.0 million in a stock issue to pay down debt in 2016.

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Volume 07, No. 03 17 ServiceSectOr

Baker Hughes bills its adaptive drillbit as cure for ‘stick/slips’Baker Hughes has commercially released the first adaptive drill bit, which it says

can give operators faster, more consistent rates of penetration and longer bit and tool life. The TerrAdapt automatically changes its aggressiveness based on the rock it is

attacking, helping drillers avoid “stick-slip” situations that can damage the bit and other components.

Current drill design features a fixed depth-of-cut (DOC) setting optimized for a single rock type, causing the bit to perform erratically when rock types change, causing vibrations. When the bit’s bite is too aggressive, the vibrations will cause the bit to stop rotating, or “stick,” while the drill pipe behind continues to wind like a spring behind the bit until it releases, or “slips,” and spins uncontrollably.

The TerrAdapt bit self-adjusts its DOC elements that extend to select the optimal DOC setting based on a formation, preventing vibrations when the bit transitions between rock types. When the “stick-slip” risk has passed, the elements retract, allowing the bit to return to optimal speed. The elements also absorb sudden shocks to the bit face.

Technology

For Transocean, the deal not only allows the Switzerland-based company to avoid the obligations for the jackups on order but also lets a company, whose website is Deepwater.com, to focus on its 46 floaters, which include 30 ultra-deepwater drilling ships. However, the deepwater drilling market is extremely depressed and activity for jackups has

increased, although analysts still see that market as oversupplied.

Borr will make Transocean’s remaining yard payments to Keppel Fels, which is constructing the five newbuilds, including a $275 million down payment. Keppel sub Offshore and

Marine has signed an HOA, and the board has approved the transfer of the contracts. Transocean still owes $1.1 billion in newbuild payments on the rigs, according to BMO Capital Markets. Under the deal, each rig is priced at $216 million.

Transocean ordered the five KFELS

Super B Class jackups, designed to operate in 400 ft of water and drill to 35,000 ft, for $1.1 billion. The five rigs were to be delivered in 2016 and 2017, but now the first three rigs will be delivered in 2017 and 2018, with the remainder coming in 2020.

To help raise the $1.35 billion to buy up Transocean’s jackups, Borr offered 228.60 million shares at $3.50 per share. The equity offering used an accelerated bookbuilding process from a limited number of investors. Clarksons Platou Securities, DNB Markets and Fearnley Securities are joint bookrunners for the equity offering. Borr, which has been traded on the Norwegian OTC list since Dec. 19, said it intends to be listed on a reputable stock exchange during 2017.

Borr buys TransOcean's jackup fleet Continued From Pg 1

Transocean’s Fleet Composition Before Sale

52%

12%

18%

18%% of Fleet (Rig Count - 56)

(10)

Current Fleet

Additionally Under Construction:• 5 UDW Drillships• 5 High-Specification Jackups

Previously retired 30 floaters

(29)

(7)

(10)

Ultra-Deepwater FloatersHarsh-Environment FloatersDeepwater & Midwater FloatersHigh-Specification Jackups

Source: Transocean Dec. 13 Presentation via PLS docFinder

17 jackups in deal include five stacked and five on order.

Transocean left with 46 floaters including 30 ultra-deepwater.

■ Trinidad Drilling CEO Lyle Whitmarsh left the company on March 12 to pursue other opportunities, the Calgary-based company said. Trinidad President

Brent Conway will assume the CEO duties as well. Conway joined Trinidad in 2001 as CFO.

In 2008, he was also named EVP and put in charge of the company’s operations. He was appointed president in 2012. Trinidad issued a statement that it wished Whitmarsh, also was also on the board of directors, well in this future endeavors.

■ Halliburton named its EVP and general counsel, Robb L. Voyles, as interim CFO. Voyles replaces Mark

McCollum, who left the CFO position to become

CEO at Weatherford International. The company has engaged an executive search firm to find a permanent replacement. Halliburton also promoted Lyn Beaty to SVP of finance. Beaty, formerly SVP of internal assurance services, has been with the Halliburton finance department for more than 30 years.

■ Kevin G. Cramton and José R. Mas were appointed to the board of directors at Helmerich & Payne, effective March

1. Cramton is operating partner at private equity firm HCI Equity Partners,

executive chairman of the board of Atlantix Global Systems, a leading reseller of IT hardware and service, and former CEO of Cardone Industries, the largest remanufacturer of automotive aftermarket components. Mas has been the CEO of infrastructure construction company MasTec since 2007.

■ Dril-Quip has named Jeffrey J. Bird its new VP and CFO. Bird, who started in March, replaces Jerry M. Brooks, who has accepted the newly created position of VP of Investor Relations. From December 2014 to February, Bird serves as EVP and CFO of Frank’s International, a provider of engineered tubular services for oil and gas. Before moving to Frank’s, Bird was VP of Finance and CFO for Ascend Performance Materials, a chemicals and plastics provider. Brooks has been with Dril-Quip for 25 years.

People & Companies

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OilfieldServiceS 18 March 23, 2017

MULTISTATE EASTERNAPPALACHIAN BASIN SALE PACKAGE1,100+ Well Package. ~360,620-Net Acres.WEST VIRGINIA, VIRGINIA & KENTUCKY PP~147,631 Net Undeveloped Leasehold.Royalty Interest & ORRI In 100+ WellsVarying Operated & NonOperated WI MULTI-Gross Prod: 4 BOPD & 17,404 MCFD STATEEst 2017 Cash Flow: $450,000/Month8-Mn Avg Net Income: $171,946/MonthAGENT WANTS OFFERS MARCH 2017PP 2840DV

ILLINOIS & INDIANA PROPERTY9-Wells. 1-SWD. 990-Net Acres.ILLINOIS BASIN20% Of Acreage Held By Production PPPotential Upside.100% OPERATED WI; 75-77% NRI6-Mn Gross Production: 87 BOPD EASTERN9-Mn Avg Net Cash Flow: $61,734/MonthPDP Reserves: 236 MBOPDP PV10: $3,350,000All Wells Are Connected To SWDs - NoTrucking required.AGENT WANTS OFFERS APR 4, 2017PP 2061DV

PENNSYLVANIAAPPALACHIAN BASIN NONOP SALE34-Active Wells. ~7,000-Gross HBP Acres.WYOMING CO., PENNSYLVANIA‘’CORE OF CORE’’ MARCELLUS SHALE PPLower & Upper Marcellus Production12% NonOperated WI; 9.6% NRISept 2016 Net Production: 7,000 MCFD 7,000Avg Net Cash Flow: $290,000/Month MCFDNet PDP Reserves: 20.6 BCFNet PDP PV10 Value: $13,800,000Total Net Proved Reserves: 54.2 BCFTotal Net Proved PV10: $25,800,000CONTACT AGENT FOR UPDATEPP 2497DV

INDIANA CO., PA ASSETS116-Wells. 197,000-Acres.NITTANY CBM PACKAGE PPSignificant Amount Of Undeveloped AcresLeases Can Deliver Avg 98.76% NRICurrent Production: ~3.8 MMCFED CBMNo Drilling Commitments.Pipeline System, 3 Compressor Site &Water Discharge Site & Permits.CONTACT SELLER FOR MORE INFOPP 2299DV

OKLAHOMAOKLAHOMA ASSETS FOR SALE300,000-Net Acres. 58,000-NMA.WESTERN ANADARKO BASIN PP~2,000-Producing Wells.Woodford, Springer, Cleveland, Tonkawa 85& Conventional Granite Wash Formations MMCFDCurrent Production: 85 MMCFD (71% Gas)CONTACT AGENT FOR MORE INFOPP 2665DV

OKLAHOMA NONOP & MINERAL SALE71-Wells. ~5,413-Net Acres. 1,259-NMA.BLAINE, CANADIAN, DEWEY,-- AND KINGFISHER COUNTIES PPCORE STACK PLAYMeramec, Osage, Volatile, Woodford Upside34 Producers on Exclusive Mineral Acreage ~2,07555+ OCC Work-In-Process Units BOEDNonOperated WI For SaleCurrent Net Production: ~2,075 BOEDCONTACT AGENT FOR UPDATEPP 2815M

OKLAHOMA NONOP PROPERTIES220-Producing Wells. ~1,400-NRA.MIDCONTINENTSTACK & Arkoma Woodford Formations PPPosition In Rapidly Growing Plays.Balance Of Legacy Production & HZ STACKDevelopment Inventory.NONOPERATED WI FOR SALEGrowing Cash Flow.AGENT WANTS OFFERS APR 25, 2017PP 2824DV

OKLAHOMA WATERFLOOD PROJECT5 Wells. ~1,760-Acres (5-Section Portions)WOODWARD COUNTY PPOswego Lime Interval.Core Analysis, Study & Geological Mapping81.5% OPERATED WI; ~65% NRI MIDCONGross Prod: 12 BOPD, 60 MCFD, 8 BWPDSeeking Divestment or Development PartnerCONTACT AGENT FOR UPDATEPP 8833WF

SOUTHEAST OKLAHOMA PACKAGE2,000+ Producing Wells. ~226,600-Net Acres.ARKOMA & WOODFORD SHALE~12,900-Net Mineral Acres. PPDrill Depths From 7,000 Ft. To 11,000 Ft.Identified & Quantified Woodford DevelopmentLarge Contiguous Leasehold Position ~35Varying Operated & NonOperated WI MMCFEDAvg Net Production: ~36 MMCFEDDry Gas With Limited Water ProductionMonthly EBITDA: ~$750,000 Per MonthSELLER WANTS OFFERS MAR 31, 2017PP 2590DV

NORTH TEXASNORTH TEXAS ASSETS FOR SALE17-SWD Wells. ~80,000-Net Acres.JACK, PALO PINTO & CLAY COUNTIESFORT WORTH BASIN PPTargets: Marble Falls, Barnett, Strawn,Conglomerate & Caddo Formations.224-Behind Pipe Opportunities. ~2,600398-PUD & 232-Probable Drilling Locations BOED~100% OPERATED WI; ~75% NRIDec 2016 Net Sales: ~2,600 BOEDTotal 2P Reserves: 82,160 MBOETotal 2P PV10: $357,000,000CONTACT AGENT FOR UPDATEPP 2550DV

NORTH TEXAS PROPERTYMultiple Properties.JACK & WISE COUNTIES PPPredominantly Operated 51% Avg WICurrent Production: ~650 BOED ~650Proved Reserves: 4,509 MBOE BOEDTotal Proved PV10: $20,871,000AGENT WANTS OFFERS MAR 27, 2017PP 2148

NORTH TEXAS SUB-PACKAGE35-Wellls,. 20-Active 7-Injector. 7-Shut In.WILBARGER, BAYLOR & KING CO.2,470 Net Acres. PPDevelopment Potential Identified~79% OPERATED WI; ~65% NRIGross Production: 56 BOPD & 170 MCFDNet Production: 47 BOPD & 49 MCFDPART OF A LARGER SALE PACKAGEVDR Opening Early March 2017SELLER WANTS OFFERS BY APR 2017PP 9871DV

OKLAHOMACADDO CO., OK PROPERTY20-Active Wells. ~1,600-Net Acres.SCOOP PLAYMerchand At 6,500 Ft. PP60 Infill Locations.Defined By Subsurface Geology99% OPERATED WI; 79% NRINet Production: 280 BOPD 280Gross Production: 350 BOPD BOPDCash Flow: $375,000/MonthEst Net Reserves: 60-130 MBOTotal Net PV10: $143,500,000DHC: $549,00; Compl: $1,025,000CONTACT SELLER FOR MORE INFOPP 2732DV

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Volume 07, No. 03 19 ServiceSectOr

NORTH DAKOTAWILLISTON BASIN ASSETS FOR SALE197-Total DSUs. 282-Producing Wells.DIVIDE & WILLIAMS CO., ND123,790-Net Contiguous Acres. PP905-Gross & 471-Het Undeveloped LocationsVarying Operated & NonOperated WI 10,400Current Net Production: 10,419 BOED BOEDProj’d 12-Mn Cash Flow: ~$7,250,000/MnAvg Original Oil In Place: ~18.3 MMBONet PV10: ~$299,000,000AGENT WANTS OFFERS APR 26, 2017PP 2971DV

UTAHCARBON & EMERY CO., UT PROPERTY2-Federal Units. 185,000-Net Acres.STACKED PAY ZONESMoenkopi Target Zone At 4,000’ - 7,000’ PPAdditional Targets In Kaibab & DoughnutMultiple Oil-Saturated & Fractured Cores3D Seismic Data Available MOENKOPI~97% OPERATED WI; 80% NRICurrent Production: 10-15 BOPDCONTACT SELLER FOR MORE INFOPP 2912DV

GRAND CO., UT ASSETS17-Producing Wells. ~121,890-Net Acres.SOUTHERN UINTA BASINProven Shallow Oil Resource Play PPDeeper Granite Wash/Arkose Potential3 Federal Exploratory Units. GRANITE100% OPERATED WI; 80% NRI WASHLegacy Production: 8 BOPD & ~400 MCFDGas Processing Facility, CompressorStations & ~75 Miles Of Gas Gathering LinesCONTACT SELLER FOR MORE INFOPP 2914L

WYOMINGCARBON CO., WY ASSETS FOR SALE105-Producing Wells. 19,637-Net Acres.ATLANTIC RIM - COAL BED METHANECHAPTER 11 BANKRUPTCY PPShallow Wells Drilling In MesaverdePotential In Sussex/Shannon, Niobrara& Lewis FormationsVarying Operated & NonOperated WINet Production: 9.5 MMCFD BANKRUPTCYTotal Proved Reserves: 45.1 BCFETotal Proved PV10: $12,700,000CONTACT AGENT FOR UPDATEPP 2709DV

WYOMINGNATRONA CO., WYOMING ASSETS~5,000-Net Acres.SALT CREEK - CO2 FLOOD PPDeep Inventory Of Low-Risk Upside ProjectsMultiple Pay ZonesAvg 22.5% NonOperated WI; 19% NRI ~2,300Forecasted Net Prod: ~2,300 BOED BOED(100% Oil) As Of March 1, 2017Forecasted 12-Mn Cash Flow: $750,000/MnAGENT WANTS OFFERS MAY 2, 2017PP 2608DV

CALIFORNIAORANGE CO., CA PROPERTY6-Wells.ESPERANZA FIELDKraemer At 2,510 Ft. - 2,995 Ft. PP88.75% OPERATED WI AVAILABLENet Production: 13 BOPD OPERATEDOperated By: SACDMonthly Cash Flow: $21,000/MnEst Net Reserves: 1,084 MMBOEst Project Reserves: 2,076 MMBOCONTACT SELLER FOR MORE INFOPP 2703

VENTURA CO., CA PROPERTYProducing Wells.SESPE/ BARDSDALE OILFIELDSOPERATED WI AVAILABLE PPCurrent Production: 100 BOPD 100CONTACT SELLER FOR MORE INFO BOPDPP 2947

GULF OF MEXICOGULF OF MEXICO ASSETS8-Producing Wells. 10-NonProducing Wells.OFFSHORE LOUISIANA PPW. Atwater Foldbelt - Neptune FieldWater Depth Across Field Ranges From4,300’ Above The Escarpment To 6,500’ GOM15% NonOperated WI; 13.25% NRIGross Prod: 7,757 BOPD & 6,024 MCFD5-Mn Avg Net Income: $1,216,108/MnEst Net Proved Reserves: 1,378 MBOEAGENT WANTS OFFERS MARCH 2017PP 2879

MOSTLY TEXASTEXAS ASSETS FOR SALEMultiple Areas.PERMIAN BASIN PPConventional & Enhanced Oil RecoveryMidland & Delaware Sub-Basins, CentralBasin Platform & North-West Shelf PERMIANVal Verde & Maverick Basin In West TexasOPERATIONS NEGOTIABLECONTACT SELLER FOR MORE INFOPP 2564

COLORADORIO BLANCO CO., CO ASSETS123-Active Wells. ~25,000-Net Acres.WHITE RIVER DOMERights Are Mostly Surface To Mesa Verde PPAcreage Is 98% Held By Production.41-High Graded 40-Acre Drilling LocationsAvg 99% OPERATED WI; 83% NRI MESACurrent Production: 60 BOPD, 5 MMCFD VERDE& 180 BNGLDProjected 2017 Cash Flow: $71,250/MnCONTACT SELLER FOR MORE INFOPP 2614DV

MONTANAVALLEY CO., MONTANA ASSETS41-Wells. 4-SWD. 11,532-Net Acres.CONVENTIONAL OILCharles C & Nisku Formations PPAcreage Is 76% Held By Production31 Total Shallow 3P Locations Identified100% OPERATED WI AVAILABLE CONVENTIONALEst Feb 2017 Net Prod: 160 BOPDEstimated 3P Reserves: 2.9 MMBOEstimated 3P PV9: $26,400,000CONTACT AGENT FOR UPDATEPP 2100DV

MULTISTATE ROCKIESCOLORADO & UTAH PROPERTIES387-Producing Wells. 331-Injection Wells.ANETH FIELD - PARADOX BASIN PP44,400-Gross Acres. 28,300-Net Acres.OPERATED WI AVAILABLE ~6,000Current Production: 6,086 BOED (93% Oil) BOED2015 Proved Reserves: 25.5 MMBOEPV10: $160,000,000CONTACT SELLER FOR MORE INFOPP 2165

NORTH DAKOTANORTH DAKOTA NONOP PACKAGEMultiple Wellbores.MCKENZIE & DUNN COUNTIESBAKKEN & THREE FORKS PPDrilled But Uncompleted Wells Included.NONOPERATED WI AVAILABLE WILLISTONCONTACT SELLER FOR MORE INFOPP 2681

WILLIAMS CO., ND PROPERTY6-Producing Wells. 1-NonProducing Well.BAKKEN - THREE FORKS4-Middle Bakken Wells. 3-Three Forks Wells. PP17 PUD Locations Identified.Varying NonOperated WI & NRIGross Prod: 1,877 BOPD & 4,341 MCFD NONOP10-Mn Avg Net Income: $15,159/MonthCONTACT AGENT FOR UPDATEPP 2365DV www.plsx.com/listings

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