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Oil issues
  • Vitaliy_KiselevVitaliy_Kiselev

    OGX, the Brazilian oil and gas company controlled by the billionaire Eike Batista, has filed for bankruptcy protection in a Rio de Janeiro court.

    The move came after OGX said long-running talks with creditors to restructure some of its $5.1bn (£3.2bn) debt failed on Tuesday.

    OGX didn’t produce any oil in September after it shut all three wells at the Tubarao Azul field on pump failures. It produced 2.1 million cubic meters of natural gas per day, equivalent to 13,200 barrels per day, from the stake of its fields in northeastern Brazil’s Parnaiba Basin. OSX is preparing to remove a production vessel from the Tubarao Azul offshore field after missed payments, it said on Oct. 29.

    Batista said in an April 2010 video interview with brokerage XP Investimentos CCTVM SA that he was seeking to sell a 20 percent stake of OGX to improve valuation and visibility. “We discovered a new oil province in Brazil, OK?” he said then. “OGX has now $1 trillion in oil value, oil in shallow waters that will have $8 lifting cost” a barrel.

    http://www.bloomberg.com/news/2013-10-30/ogx-bankruptcy-filing-caps-batista-s-30-billion-demise.html

    Oil is tough now and many projections will turn false.

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  • Vitaliy_KiselevVitaliy_Kiselev

    The development of shale resources might prove the exception to the ability of companies to raise funds in capital markets, said Gray. Estimates of the amount of capital needed range from $2 trillion to $5 trillion, but the market capital of shale participants is less than $1 trillion. Companies currently are needing to go to capital markets for $40 to $50 billion a year of capital now and have been spending beyond cash flow, but some suggestions indicate that spending may double or triple. Fundamentally, the industry could face a $2 trillion gap in funding.

    Via http://www.rigzone.com/news/oil_gas/a/129682/Massive_Spending_Ahead_As_Industry_Develops_US_Shale/

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