CIPA Responds to Hydraulic Fracturing Hit Piece
April 2, 2012
Environmental Working Group Publication is Fraught with Inaccuracies
Today, CIPA released a paper entitled “Are Hydraulically Fractured Wells Regulated in California? Yes!” The paper is in response to a hit piece released by the Environmental Working Group (EWG) on hydraulic fracturing in California that contains misinformation, unconfirmed data, and case examples that have nothing to do with hydraulic fracturing. In their brochure, “California Regulators: See no Fracking, Speak no Fracking,” EWF criticizes the state for not regulating hydraulic fracturing and suggests California’s underground sources of drinking water are at risk. But the brochure fails to mention the aggressive regulations, oversight, and inspections DOGGR performs in order to prevent any fluids, including fracking fluids, from migrating to any unintended zones.
The CIPA response clarifies a number of issues. First, all wells are regulated in California, including those that are hydraulically fractured. While the term “hydraulic fracturing” does not appear in regulations, well bore designs are very stringent to the point where it does not matter which completion technique is used on a well; there will be no upward migration of fluids into a freshwater zone or the surface. Wastewater disposal issues are the reason DOGGR was created nearly a century ago and the Division has a strong record of protecting groundwater resources with both regulations and inspections.
Industry supports the creation of a disclosure regulation and has worked in good faith with the author and sponsors of AB 591 (Wieckowski – D) to create a workable bill. At the end of last year, all the pieces were negotiated except for the proprietary language to allow drillers to keep their secret formulas while still disclosing the contents.
Language was offered by industry that is consistent with current California law on trade secrets as well as disclosure laws that have been adopted in other states. The EWG, the sponsor of AB 591, rejected this approach, delaying the bill until the 2012 session started. Industry continues to work with the author and the bill is set to go to committee when the legislature comes back from spring break.
Visit us at NAPE 2012, Houston
February 16, 2012
Termo will be attending NAPE 2012 in Houston in full force this year. In attendance will be David Combs, CEO, Paul Buika, Managing Geologist, Terry Allred, our new Land Manager, and Ralph Combs, Manager Corporate Development. We look forward to catching up with old friends and making new ones, so if you are attending, stop by Booth 3729 and say hello.
Termo increases existing production 11% through optimization
January 6, 2012
Termo continues to execute on its optimization strategy having made significant internal production gains since early summer when several leases were shut-in or production curtailed due to regulatory and operational issues.
From January through October 2011, oil production increased 11.7% and gas production has increased 5.8%. This increase is largely attributed to decreasing down-time and re-examining marginal wells. The analysis of marginal wells lead to several actions being taken such as cleanouts, acidizing, adding additional perfs, or changing pumps.
In comparison U.S. crude oil production during this same period grew 5% nationally; regionally the Rocky Mountain regions increased 4%, the West Coast region 6%, and Louisiana onshore declined -2%. (Source EIA)
We are extremely pleased to beat the national production gain and thank the dedication of our engineers and field personnel.
Penta Resources offering a portion of the Bull Moose Prospect
October 11, 2011
Termo is partnering with Penta Resources of Lafayette, Louisiana in the Bull Moose Prospect to test the reserve potential of the Marg Tex 2, Stuart A and Bol Mex 2 sands. Penta has a 45% working interest available for purchase subject to a 20% carried working interest with a cash consideration of $120,000.00. The leases are delivered at a 72%
Please see the Case Study Section of the Termo Website for more information.
Strong Financial and Operational Performance Continues
September 12, 2011
9/12/2011 - Long Beach, California
Even in our recent topsy-turvy market conditions, Termo has been performing strongly. We have increased our operational and capital spending to make necessary and voluntary operational enhancements that will benefit the company and our partners going forward.
- Operations revenue is up 40% over the previous year’s same time period aided in part by hedges put in place when oil was $110/bbl.
- Gross profit margin is hovering at 65%
- Net profit margin is in the 20% range
- ROE has doubled from this same time last year
- Production and reserves are up over last year