Initial reports on the Mariner Energy (NYSE:ME) explosion were all over the map, with some saying there was oil sheen in the Gulf 100 feet wide and 100 miles long, while the Coast Guard said they hadn't seen any oil in or on the waters.
The report on the oil sheen being in the Gulf was attributed to Mariner workers. It sounds like the gigantic hoax asserted over the giant, but invisible oil plume in the Gulf from the BP (NYSE:BP) oil spill, which somehow disappeared, but was reported two months after it was allegedly found.
After no one could find it, somehow some new strain of microbe supposedly ate up the invisible oil plume monster. That's what the so-called scientists actually said. Okay, I added the monster part, but they implied it if you go back and read their own words.
As far as the opportunists with agendas, they're already attempting to tie this in with BP and use it as an excuse to punish thousands of people in the Gulf of Mexico by saying this supports the outrageous oil moratorium that the Obama administration continues to impose on the region.
As spokesman for Mariner Energy, Patrick Cassidy, rightly stated, this is completely different from the BP situation.
"Certainly it's crucial to get accurate information out there. This wasn't a blow out, this doesn't appear to be a spill and it doesn't appear to be any injuries," said Cassidy.
As far as injuries, this is another contradiction out there, with some news outlets saying there was one person injured and taken to the hospital, and others saying there were no injuries, like Cassidy above.
The other major difference between BP and Mariner, is BP's oil rig was a drilling an exploration rig, while Mariner's was a production rig. That means the oil connected to Mariner's rig had already been found and pumped, while BP was still in the process of drilling.
Either way, this has nothing to do with the misguided oil moratorium from the Obama administration, which needs to be immediately lifted.
Showing posts with label Mariner Energy. Show all posts
Showing posts with label Mariner Energy. Show all posts
Friday, September 3, 2010
Mariner (NYSE:ME) Rig Fire Pushes Oil Prices Up
Reports of an explosion and fire on a Gulf oil rig operated by Mariner Energy (NYSE:ME) helped push the price of oil futures past the $75 a barrel mark by the end of Thursday's session.
On the New York Mercantile Exchange, crude for October delivery increased $1.11, to $75.02 a barrel.
As usual this was an emotional response, as the rig was a production rig and not a exploration and drilling rig like the Deepwater Horizon connected to BP's (NYSE:BP) oil spill.
Production rigs collect oil and gas from remote wells, process it, and then transport it through a pipeline to shore.
These types of incidents are very common on rigs, and happen around the world and in the Gulf very frequently. Over 130 were reported in 2009 alone, and that was just those counted in the Gulf.
Either way, oil prices went up more because of the lack of information and media frenzy, rather than anything based on the circumstances surrounding the rig fire.
On the New York Mercantile Exchange, crude for October delivery increased $1.11, to $75.02 a barrel.
As usual this was an emotional response, as the rig was a production rig and not a exploration and drilling rig like the Deepwater Horizon connected to BP's (NYSE:BP) oil spill.
Production rigs collect oil and gas from remote wells, process it, and then transport it through a pipeline to shore.
These types of incidents are very common on rigs, and happen around the world and in the Gulf very frequently. Over 130 were reported in 2009 alone, and that was just those counted in the Gulf.
Either way, oil prices went up more because of the lack of information and media frenzy, rather than anything based on the circumstances surrounding the rig fire.
Mariner (NYSE:ME) Puts Soar on Rig Explosion Reports
With BP (NYSE:BP) fresh in the minds of traders, they were like sharks attracted to blood with Mariner Energy (NYSE:ME) puts, as news of their oil rig having an explosion and a resultant fire generated a feeding frenzy.
The highest amount of interest was with the September $20 strike, with over 21,000 lot changing ownership by 1:15 PM EDT.
At a glance, it looked like traders were buying and selling at a pretty comparable rate. The average premium was $0.86 each.
A little over 9,000 of the puts sold at that strike were probably the result of traders who engaged in panic buying earlier in the trading day.
The premium on September $20 strike puts soared as high as $4.30, once the share price of Mariner Energy dropped to their lowest after the news came out of the accident. At that price traders selling a little later would have only get $0.40 a contract.
Another approximate 2,400 puts were acquired at the September $22.5 strike, with the average premium being $1.28 each.
Conflicting and slow reports added a lot of fuel to the fire, and we're still waiting for a clear story as to what happened and the extent of the damage.
The highest amount of interest was with the September $20 strike, with over 21,000 lot changing ownership by 1:15 PM EDT.
At a glance, it looked like traders were buying and selling at a pretty comparable rate. The average premium was $0.86 each.
A little over 9,000 of the puts sold at that strike were probably the result of traders who engaged in panic buying earlier in the trading day.
The premium on September $20 strike puts soared as high as $4.30, once the share price of Mariner Energy dropped to their lowest after the news came out of the accident. At that price traders selling a little later would have only get $0.40 a contract.
Another approximate 2,400 puts were acquired at the September $22.5 strike, with the average premium being $1.28 each.
Conflicting and slow reports added a lot of fuel to the fire, and we're still waiting for a clear story as to what happened and the extent of the damage.
Thursday, September 2, 2010
Mariner (NYSE:ME), Apache (NYSE:APA) Shares Drop on Oil Rig Explosion
An explosion and fire on one of Mariner Energy's (NYSE:ME) oil rigs, caused the share price of the company, along with Apache Corp. (NYSE:APA) to fall on the uncertainty created around the accident.
Apache Corp. was affected because they're expected to acquire Mariner Energy.
The oil rig owned by Mariner is named "Vermilion 398," wasn't producing at the time, and word is, once the Coast Guard checked things out, no oil leaks or sheen were found in the water surrounding the rig.
After the explosion, a fire started on the Vermilion, but that is all under control.
Mariner Energy was at fell to $22.58, losing $0.77, or 3.3 percent as of 12:43 PM EDT. Apache stood at $90.48, declining $1.98, or 2.14 percent at 12:45 PM EDT.
Correction: The oil rig did have seven actives wells with it, producing about 1,400 barrels a day on average.
Apache Corp. was affected because they're expected to acquire Mariner Energy.
The oil rig owned by Mariner is named "Vermilion 398," wasn't producing at the time, and word is, once the Coast Guard checked things out, no oil leaks or sheen were found in the water surrounding the rig.
After the explosion, a fire started on the Vermilion, but that is all under control.
Mariner Energy was at fell to $22.58, losing $0.77, or 3.3 percent as of 12:43 PM EDT. Apache stood at $90.48, declining $1.98, or 2.14 percent at 12:45 PM EDT.
Correction: The oil rig did have seven actives wells with it, producing about 1,400 barrels a day on average.
Thursday, April 15, 2010
Mariner Energy (NYSE:ME) Acquired by Apache (NYSE:APA)
Apache buys Mariner Energy
Apache Corp. (NYSE:APA) announced it will acquire Mariner Energy (NYSE:ME) for about $4 billion, including the assumption of $1.8 billion in debt Mariner has.
Terms of the deal are each holder of Mariner Energy stock will receive 0.17043 of a share of Apache common stock and $7.80 in cash for each share, which will be valued at $2.7 billion.
The deal values Mariner at about $26.22 a share, a 45 percent premium over its close on Wednesday.
Apache CEO G. Steven Farris this is a move to expand into the deepwater gulf.
Apache Corp. (NYSE:APA) announced it will acquire Mariner Energy (NYSE:ME) for about $4 billion, including the assumption of $1.8 billion in debt Mariner has.
Terms of the deal are each holder of Mariner Energy stock will receive 0.17043 of a share of Apache common stock and $7.80 in cash for each share, which will be valued at $2.7 billion.
The deal values Mariner at about $26.22 a share, a 45 percent premium over its close on Wednesday.
Apache CEO G. Steven Farris this is a move to expand into the deepwater gulf.
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