Printer Friendly

AXcess News: Patch Shares Bolt on Oil Sands Drilling Progress Report.

NEW YORK -- Shares of Patch International, Inc. (OTCBB:PTCH) bolted Friday, rising nearly 20 percent after the Calgary, Alberta-based oil sands developer issued a progress report showing it was on track to complete a multi-property drilling program that would give it majority ownership in two key locations.

The news followed an announcement earlier this month by TransCanada Corp. (NYSE: TRP) that Canada's National Energy Board (NEB) has approved the transfer of a portion of TransCanada's natural gas transmission facilities to TransCanada Keystone Pipeline GP Ltd. The facilities are a key component of the Keystone Pipeline, which will transport crude oil from Alberta to refining centers in the U.S. Midwest.

The proposed Keystone Pipeline is a 2,965-kilometre (1,842-mile) pipeline with a nominal capacity to transport approximately 435,000 barrels per day of crude oil from Alberta to U.S. Midwest markets at Wood River and Patoka, Illinois.

Construction of the Keystone Pipeline is expected to begin in early 2008, with commercial operations scheduled to commence in the fourth quarter of 2009. Those development plans coincide with Patch International's plans of having a 25,000 barrel per day Steam Assisted Gravity Drainage, or SAGD, pilot plant in operation at that time.

Patch, which may be the largest junior oil sands development company in the Alberta province, said Friday it completed 11 of 16 wells on its Dover Oil Sands Project and that on the Firebag Project it was ready to commence drilling. Patch stated that as many as six drill rigs were being added to complete its combined 28 corehole program.

But in the hot oil sands arena of Alberta there's a big demand for drill rigs, though Patch may have an edge. Buried in a January 17 announcement on the second oil sands acquisition by the company was the appointment of Mark Bentsen to the board of directors. Bentsen is the founder of Cathedral Energy Services Trust (TSX: CET.UN), whose subsidiary is the largest drilling contractor in SAGD wells in Canada's oil sands arena. According to Cathedral's third-quarter results, revenues increased a record 67 percent, which Bentsen's company attributed largely to the demand for directional drilling.

Cathedral reported third quarter revenue of $38 million, compared to $22.8 million in the same period in 2005. The SAGD driller reported net income in the third quarter of 2006 of $11.3 million, or 36 cents per Trust Unit, compared to $6.1 million, or 21 cents per Trust Unit in the third quarter, 2005 - an 84 percent increase in net income.

Note to Editors: "News Features" are stories provided to publishers copyright-free for print or online display at no charge. All we ask is that publishers include our byline (AXcess News) as the source, and a link to our Web site: http://www.axcessnews.com. If you are interested in displaying our news on a regular basis, please contact our editorial department at: 775-841-5368.
COPYRIGHT 2007 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2007, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Geographic Code:1CANA
Date:Feb 26, 2007
Words:486
Previous Article:Understand And Examine The Sewing Machines & Accessories Markets.
Next Article:The Portfolio Analysis - Workwear Is A Comprehensive Evaluation Of The UK Market.
Topics:


Related Articles
AXcess News: Canadian Oil Sands Could Fill Rising U.S. Demand for Energy.
Source Press: Oil Sands Projects Steam Ahead in Alberta, Despite Harper.
Indigo-Energy, Inc. Drills Additional Wells And HUB Energy, LLC is Indigo's Oil & Gas Operator.
Unicorp Announces Successful Drilling of Its South Creole Prospect and Expects It to Double Its Current Revenue.
Giant Industries, Inc. Announces 2006 Operating Results and Shareholder Approval of Merger.
Foster Wheeler Wins Contract for Terrace-Wall(TM) Reformer and Fired Heaters at Bangchak Refinery, Thailand.
Berry Petroleum Reports 2006 Earnings of $2.41 Per Share; Production, Reserves Reach Record Highs.
AES Enters Into a Definitive Agreement to Sell Its Interest in C.A. La Electricidad de Caracas (EDC) to Petroleos de Venezuela S.A.
Saxon Oil Company To Acquire 20% Working Interest In AleAnna Resources, LLC.
Gujarat State Petroleum Corporation Ltd, Hindustan Petroleum Corporation Limited and Jubilant Corporation are Among the Companies Operating in...

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters