April 2009 Archives

Highlights

• White Energy's first clean coal upgrading modular completed
• Commissioning of plant now underway -- production to be ramped up over a six month period to 1MTPA in capacity
• Early cash flows from upgraded coal expected during first six month period
• Significant increase in proposed scope of joint venture with Bayan Resources from 5MTPA to 15MTPA
• Focus on building the largest clean coal facility in the world at a time when environmentally improved coal is a priority to power utilities and governments alike

White Energy Company Limited (White Energy (ASX: WEC)) today announced the completion of construction of the first one million tonne per annum (MTPA) clean coal upgrading modular plant at Bayan's Tabang mine in East Kalimantan. The plant utilises WEC's exclusively licensed Binderless Coal Briquetting ("BCB") clean coal upgrading technology.

As a result of the successful construction of the first plant at Tabang combined with the modular nature of the plant design, White Energy is confident that the proposed future plants at the Tabang mine can be easily expanded on a timely basis to meet the production goals of the parties.

The commissioning process is now well underway and production at the plant is expected to ramp up to full capacity over the next six months with export sales of the more valuable and environmentally friendly BCB coal taking place during that period.

Through the joint venture company, PT Kaltim Supacoal (KSC), the project allows White Energy to capitalize on the price spread that exists between low energy, high moisture sub-bituminous coals and the much higher energy value bituminous coals.

The estimated average cost of production of upgraded BCB coal is lower than the mining costs for most global thermal coal producers. This positions KSC as a low cost producer of thermal grade coal that is cleaner to transport, handle and combust with less residual waste than traditional bituminous thermal coal.

White Energy estimates that the upgraded coal will be marketable with a similar or premium price to conventional high rank thermal coals, due to the similar energy yield, lower pollution profile, and general handling characteristics. Based upon the current and forecasted coal prices for the low rank feedstock and high rank bituminous coals, as well as the estimated capital and operating costs of the BCB technology, the BCB coal upgrading process is expected to enjoy a favourable long-term coal upgrading price arbitrage.

White Energy and Bayan have recently commenced formal discussions with a short-list of external bankers with the objective of negotiating debt facilities to assist with the accelerated rollout of additional plants in the near term. This process will focus on the re-financing of a portion of the equity contributed by both partners on the first plant.

In addition, both parties have agreed to significantly expand the capacity of the existing joint venture in Indonesia from 5 MTPA in production capacity to 15 MTPA in production capacity. As part of this expanded arrangement White Energy and Bayan have agreed that the expanded capacity will be constructed in priority to any other BCB plants to be built by White Energy in Indonesia.

White Energy CEO John Atkinson said, "Whereas White Energy has successfully built and operated other BCB plants at various locations, the significance of this project is the fact it will be our first full commercial production, large scale operating plant, providing the first steady revenue stream to White Energy.

"Bayan's desire to expand our joint venture to 15 million tonnes per annum is an endorsement of our technology and demonstrates the economic opportunity it creates.

"Our joint venture company, PT Kaltim Supacoal, can now focus its efforts on building the largest clean coal facility in the world at a time when environmentally improved coal is a priority to power utilities and governments alike."

PT Bayan Resources TBk. CEO Eddie Chin said, "The joint venture, PT Kaltim Supacoal, has taken another significant step in maintaining its leading position in supplying premium value, environmentally friendly upgraded briquettes into the Asian market.

"We are confident that this will unlock material additional value from our significant reserve of low sulfur sub-bituminous coal."

SOURCE White Energy Company Limited

What's the best way to reduce my home's cooling costs? Are there tax credits available for my renewable energy project? What's the most energy efficient hot water heater? Could new lighting fixtures save my business money? These are among the thousands of questions Wisconsin residents are asking themselves every day. Thankfully, there's an easy and accessible resource where they can get their energy questions answered, as Focus on Energy has launched a new interactive Web site titled 'Ask Focus on Energy' (askfocusonenergy.com).

"The purpose of the Web site is to fulfill the public's growing desire for easily accessible information on the timely topic of energy," said Kathy Kuntz, program director for Focus on Energy. "Given the economic and energy climate, consumers and businesses are now, more than ever, looking to learn how energy efficiency and renewable energy relates specifically to their needs."

How the Web site Works

When you visit the 'Ask Focus on Energy' Web site you have the opportunity to submit a question, or search other questions that may relate to your area of interest. Once your question is submitted, if it is similar to a question already on the site, the answer will immediately appear. However, if your question is unique from any on the Web site, it will be sent to a panel of Focus on Energy experts for review. If your question is selected, it will be answered by one of our experts and posted on the Web site.

As so many people have similar questions and shared interests, you can also search a variety of energy-related topics to see what other people are asking. And to stay even more connected, you can now find Focus on Energy on Facebook and Twitter. These communities allow you to stay up-to-date on the questions and answers being added to the new Web site, as well as get regular energy saving tips.

"To date Wisconsin residents and businesses have saved nearly $200 million dollars in annual energy costs with help from Focus. This number could be much higher, as there are millions of homes and businesses in Wisconsin that are eligible for technical and financial assistance from Focus on Energy," continued Kuntz. "Hopefully the Web site will make people more aware of the significant energy saving potential in their homes and businesses. The answer to saving money and energy is out there -- all you have to do is ask."

Want to learn more about energy? Ask the team with energy in its name, Focus on Energy, by visiting askfocusonenergy.com.

SOURCE Focus on Energy

Speaker-Designate Dean Cannon (R-Winter Park) unveiled a bold proposal today that would lift the state's current ban on oil & gas exploration and production in the state waters off Florida's coast - a move economists say could be worth at least $1.6 billion a year in state revenues and create more than 19,000 jobs.

The measure amended to CS/CS/HB 1219, which was approved by the Policy Council of the Florida House of Representatives, would not immediately trigger energy exploration in state waters. Instead, it would empower the Governor and Cabinet to consider a process for reviewing, approving or rejecting proposals for exploration and production of oil & gas in Florida's state waters.

With Florida's coast harboring anywhere from 3 billion to 20 billion barrels of oil, approved oil & gas leases could generate billions of dollars in new annual revenues - without raising new taxes.

"Florida's families and businesses are facing unprecedented economic challenges, and the potential for significant, new public revenues from oil & gas are immense," said Barney Bishop III, President and CEO of Associated Industries of Florida. "I am confident that we can do this in a way that will protect our environment and our precious coastline, which is such a critical natural resource for our state."

As Florida has been forced to make nearly $7 billion in painful budget cuts since 2007, Texas has collected nearly $7 billion in annual oil & gas revenues - revenues that fund significant portions of the state's public K-12 and state university budgets.

"Floridians continue to suffer from devastating cuts to higher education, environmental protection, health care and vital infrastructure," said Martha Barnett, partner at Holland & Knight and past president of the American Bar Association. "For the sake of our state's future, we cannot delay discussion of this issue any longer, nor ignore the benefits that other states continue to derive from their energy resources.

Buoyed by the struggling economy and high energy prices, public opinion has swung decisively in favor of offshore energy exploration, as shown by many public opinion polls including a new survey of 625 voters conducted April 15-16 by Mason-Dixon Polling & Research.

Among the results of that survey:

• 59 percent of Floridians generally support drilling off Florida's coast,
• 79 percent support drilling if it raises money for public education, health care and environmental protection,
• 83 percent support drilling if it will produce new jobs and stimulate the economy, and
• 88 percent support drilling if it is environmentally safe.

"Recent public opinion surveys document that Floridians have come to strongly support exploration and production of oil and gas resources off the Florida coast," said Larry Harris, a principal with Mason-Dixon. "Nine in 10 voters (88 percent) support offshore production if it is done in an environmentally safe fashion and raises significant revenues, boosts the economy and creates jobs."

SOURCE Associated Industries of Florida

Despite a short-term reduction, electricity prices are estimated to rise by 10 - 15% in 2013, following the tightening of restrictions on emissions levels. This has caused concern amongst intensive energy users such as the steel, aluminium, cement and paper industries. They fear that the price increase, along with other related factors, will significantly increase their costs at the time when they will still be recovering from the current economic slowdown. In order to remain successful in the future, they will need to hedge looming high costs by investing in emissions-reducing technologies.

Prices of European Union Allowances (EUA), where one allowance represents a permit to emit one tonne of carbon dioxide under the European Union Emissions Trading scheme, are currently low. Companies who possess unused allowances will be able to sell them easily to high-polluting industries that may require extra allowances. Such actions would mutually benefit industries in either position; buyers and sellers would be able to invest their respective savings and earnings in energy efficient equipment and abatement technologies.

The price of emissions allowances in 2008 was negatively impacted by massive redundancies and production cuts across manufacturing industries in Europe. The EUA price tumbled from euro 22.5 in August 2008 to euro 15 in December 2008. The price of coal also dropped significantly, from euro 18.5 to euro 8 per MWatt during the same period. When coal prices decline, power plants often switch from gas to coal. Since coal produces the highest emissions output, the price of the EUA was expected to rise as the price of coal fell. This however, was not the case. In fact, the EUA price fell below euro 10 in the first months of 2009 following shrinking levels of production output that resulted from the economic crisis.

The negative impact of the economic slowdown on the industry had at least one positive effect - since fewer emissions were produced, Europe was able to get closer to its carbon reduction target. This situation, however, is expected to reverse once the economy picks up. Therefore, a smart move for many carbon emitters is to try investing in abatement technologies early on in order to minimise the impact of tighter regulations and higher carbon prices during Phase III.

"The current situation is giving high polluting industries an opportunity to cash in by selling their excess allowances allocated for Phase II. This could provide funds for investment in emissions reducing technologies when other companies try to save cash to shore up their balance sheets," says Zeinegul Hassan, Research Analyst, Renewable Energy, Frost & Sullivan. "Companies exceeding their emissions targets can benefit from buying allowances at a lower price in 2009-2010 and invest funds they did not spend on allowances into abatement technologies. With smart investments, industrial companies will be well prepared for 2013, when more allowances are to be auctioned."

According to an exemption set by the EU leaders, industries exposed to a significant risk of losing competition within the EU will be granted 100% of emissions allowances free in Phase III. Companies hoping to apply for free permits will need to demonstrate that they have deployed the best available technology. This means that only those enterprises that have invested in abatement technologies will get a chance to receive free permits, and the rest will be required to pay for the right to emit carbon dioxide.

"The competitive landscape in the equipment manufacturing may well change once this crisis recedes. The winners will be those whose R&D activities have not been suspended and who have continued to develop pollution reduction technologies," continues Zeinegul Hassan. "When the EUA price was at its lowest level of below euro 1 in early 2008, the market lacked the incentives to clean up its carbon act. The forthcoming Phase III has raised concerns amongst companies over the costs and competitiveness implications, but at least there is still time and the incentive to develop a plan to reduce their emissions."

If you are interested in this subject and would like to receive more information, then send an e-mail to Chiara Carella, Corporate Communications, at chiara.carella@frost.com" target=_new>chiara.carella@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by e-mail.

GIL 2009: Europe

Frost & Sullivan has expanded its flagship Global Congress on Corporate Growth - GIL Global - into several major cities around the world including London. For the first time ever in Europe, Frost & Sullivan will be hosting the Growth, Innovation and Leadership Congress 'GIL 2009: Europe' on 19-20 May, at the Sofitel St James in London. GIL Global is the industry's only event designed to support senior executives in their efforts to achieve sustainable, top-line growth. To register, obtain a programme agenda, explore sponsorship opportunities, or attend as a member of the media for 'GIL 2009: Europe', please contact Chiara Carella, Head of Corporate Communications for Frost & Sullivan in Europe, at chiara.carella@frost.com" target=_new>chiara.carella@frost.com. One-on-One interviews with Frost & Sullivan senior growth consultants are also being scheduled. For more information you can also visit www.frost.com/giluk

SOURCE Frost & Sullivan

Baker Hughes Incorporated (NYSE: BHI) announced today that the international rig count for March 2009 was 1,012, down 8 from the 1,020 counted in February 2009, and down 42 from the 1,054 counted in March 2008. The international offshore rig count for March 2009 was 281, down 5 from the 286 counted in February 2009 and down 4 from the 285 counted in March 2008.

The US rig count for March 2009 was 1,105, down 215 from the 1,320 counted in February 2009 and down 692 from the 1,797 counted in March 2008. The Canadian rig count for March 2009 was 196, down 217 from the 413 counted in February 2009 and down 212 from the 408 counted in March 2008.

The worldwide rig count for March 2009 was 2,313, down 440 from the 2,753 counted in February 2009 and down 946 from the 3,259 counted in March 2008.

March 2009 Rotary Rig Counts

                       March 2009             February 2009      March 2008
                    Land  OS  Total   Var.   Land  OS  Total   Land  OS  Total

      Europe         36   59    95     14     30    51   81     48   52   100
      Middle East   232   30   262     (2)   233    31  264    238   31   269
      Africa         48   13    61      2     44    15   59     52   18    70
      Latin America 284   74   358    (16)   294    80  374    302   78   380
      Asia Pacific  131  105   236     (6)   133   109  242    129  106   235
                    ---  ---   ---           ---   ---  ---    ---  ---   ---
    International   731  281  1012     (8)   734   286 1020    769  285  1054

      United
       States      1060   45  1105   (215)  1264    56 1320   1737   60  1797
      Canada        195    1   196   (217)   412     1  413    407    1   408
                    ---    -   ---           ---     -  ---    ---    -   ---
    North America  1255   46  1301   (432)  1676    57 1733   2144   61  2205

    Worldwide      1986  327  2313   (440)  2410   343 2753   2913  346  3259

About the Baker Hughes Rig Counts

The Baker Hughes Rotary Rig Counts are counts of the number of drilling rigs actively exploring for or developing oil or natural gas in the United States, Canada and international markets. Baker Hughes has issued the rotary rig counts as a service to the petroleum industry since 1944, when Hughes Tool Company began weekly counts of US and Canadian drilling activity. Hughes initiated the monthly international rig count in 1975.

North American rig count data is scheduled to be released at noon central time on the last working day of each week. The international rig count is scheduled to be released on the 5th working day of the month. Additional detailed information on the Baker Hughes rig counts is available from our website at http://www.bakerhughes.com/investor/rig.

Baker Hughes provides reservoir consulting, drilling, formation evaluation, completion and production products and services to the worldwide oil and gas industry.

Source: Baker Hughes Inc.

Noble Energy, Inc. (NYSE: NBL) announced today a discovery at the Santa Cruz prospect in Mississippi Canyon Blocks 519/563. The well, located in 6,515 feet of water, was drilled to a total depth of approximately 18,900 feet. Open-hole logging indicated over 140 feet of net gas condensate pay and more than 110 feet of net oil pay in multiple high-quality reservoirs. The overall thickness of the reservoirs encountered was greater than originally expected.

David Stover, Noble Energy's Executive Vice President and Chief Operating Officer, said, "The results at Santa Cruz complement the successful momentum we have been experiencing in our worldwide exploration programs. Our discoveries at Santa Cruz and Isabela will be an important development program for our Company. Current plans consist of subsea tiebacks to nearby infrastructure, and we anticipate first production from this area in 2011.

"Our deepwater Gulf of Mexico program is positioned very well, with a combination of existing production, several ongoing developments of recent discoveries, and a growing exploration portfolio. Our next exploration test will likely be late in the year at Deep Blue in the Green Canyon region, which will be testing our largest deepwater Gulf of Mexico prospect to date," Stover added.

Noble Energy operates the Santa Cruz discovery with a 23.25 percent working interest. Other interest owners in the discovery are Houston Energy, L.P. with 10 percent, Red Willow Offshore, LLC with 20.25 percent, and BP Exploration & Production Inc., a wholly-owned subsidiary of BP America Inc. (NYSE: BP) with the remaining 46.5 percent.

Noble Energy is a leading independent energy company engaged in worldwide oil and gas exploration and production. The Company operates primarily in the Rocky Mountains, Mid-Continent, and deepwater Gulf of Mexico areas in the United States, with key international operations offshore Israel, UK and West Africa. Noble Energy is listed on the New York Stock Exchange and is traded under the ticker symbol NBL.

Source: Noble Engergy, Inc.