Oilweek Magazine online newsfeeds http://www.oilweek.com NEW YORK _ Mariner Energy, Inc. shares dropped more than four per cent Thursday following news that one of its production platforms exploded in the Gulf of Mexico.Mariner shares (NYSE:ME) lost 96 cents, more than four per cent, at US$22.39 in afternoon trading on the New York Stock Exchange.The Houston independent oil and gas company is a relatively small player compared with BP, Shell and other oil giants operating in the Gulf. In April, Apache Corp. said it planned to buy the company for $2.7 billion, though the deal hasn`t been completed yet.Apache shares fell $1.89, or 2 per cent, to $90.57.Most of Mariner`s operations are in West Texas and along the Gulf Coast. The company also owns more than 240 blocks in shallow parts of the Gulf of Mexico.The platform that exploded is called Vermilion 380. According to regulatory filings, Mariner owns 100 per cent of the platform.Mariner said in a statement that the platform had been producing both oil and natural gas. During the last week of August, the Vermilion produced an average of 9.2 million cubic feet of natural gas per day and 1,400 barrels of oil.It`s unclear if the platform was producing when the explosion occurred.The company said crews flying over the site reported that no petroleum appeared to have been spilled.The explosion was reported around 10 a.m. EDT by a commercial helicopter. The company said all 13 crew members were evacuated and no injuries were reported.Mariner`s platform is in 340 feet of water, which would make any spill response much easier than the response to BP`s blown-out well. The BP well is about 200 miles east of the Mariner platform and lies at a depth of 5,000 feet. Crews were forced to rely on remote-operated vehicles to tend to the underwater equipment. Experts say shallow-water wells are much easier to handle.The Coast Guard responded to the explosion with helicopters, airplanes and cutters. http://www.oilweek.com/news.asp?ID=29678 NEW ORLEANS _ The Coast Guard is saying that a mile-long oil sheen is spreading from the site off an offshore petroleum platform that exploded in the Gulf of Mexico off Louisiana.The site of the explosion is west of where BP`s massive spill occurred.The Coast Guard said no one was killed Thursday in the explosion. The blast was spotted by a commercial helicopter flying over the site.All 13 people aboard the rig were found floating in the water in survival gear. http://www.oilweek.com/news.asp?ID=29677 NEW ORLEANS _ An offshore petroleum platform exploded and burned Thursday in the Gulf of Mexico off Lousiana, west of the site of BP`s massive spill, but no leaks were reported.The Coast Guard said no one was killed in the explosion, which was spotted by a commercial helicopter flying over the site Thursday morning.All 13 people aboard the rig were found floating in the water in survival gear called gumby suits, sticking close together, Coast Guard spokesman Chief Petty Officer John Edwards said.These guys had the presence of mind, used their training to get into those gumby suits before they entered the water. It speaks volumes to safety training and the importance of it because beyond getting off the rig there`s all the hazards of the water such as hypothermia and things of that nature, Edwards said.The platform was in about 340 feet of water, considered shallow water and far less than the roughly 5,000 feet where BP`s well spewed oil and gas for three months after an April rig explosion.The crew were rescued from the water by an offshore service vessel, the Crystal Clear, and taken to a nearby platform, said Coast Guard Cmdr. Cheri Ben-Iesau.All were being flown to a hospital in Houma to be checked over. Ben-Iesau said one person was injured, but the platform`s owner, Houston-based Mariner Energy, Inc., said there were no injuries.Mariner has notified and is working with regulatory authorities in response to this incident. The cause is not known, and an investigation will be undertaken, the company said in a statement.In an initial flyover, no hydrocarbon spill was reported, Mariner said. It said the platform was located on Vermilion Block 380, approximately 100 miles off the Louisiana coast.The platform is a fixed petroleum platform that was in production at the time of the fire, according to a homeland security operational update obtained by The Associated Press.The update said the platform was producing about 58,800 gallons of oil and 900,000 cubic feet of gas per day. The platform can store 4,200 gallons of oil.Seven Coast Guard helicopters, two airplanes and three cutters were dispatched to the scene from New Orleans, Houston and Mobile, Ala., Ben-Iesau said. She said authorities do not know whether oil was leaking from the site.White House press secretary Robert Gibbs said President Barack Obama was in a national security meeting and did not know whether Obama had been informed of the explosion.We obviously have response assets ready for deployment should we receive reports of pollution in the water, Gibbs said.Mariner Energy focuses on oil and gas exploration and production in the Gulf of Mexico. In April, Apache Corp., another independent petroleum company, announced plans to buy Mariner in a cash-and-stock deal valued at $3.9 billion, including the assumption of about $1.2 billion of Mariner`s debt. That deal is pending.Apache spokesman Bob Dye said the platform is in shallow water. Responding to any oil spill in shallow water would be much easier than in deep water, where crews depend on remote-operated vehicles access equipment on the sea floor. Mariner said in initial flyover for no hydrocarbon spill.A company report said the well was drilled in the third quarter of 2008 in 340 feet of water.The platform is about 200 miles west of BP`s blown-out well. On Friday, BP was expected to begin the process of removing the cap and failed blowout preventer, another step toward completion of a relief well that would put a finals eal on the well. The BP-leased rig Deepwater Horizon exploded April 20, killing 11 people and setting off a three-month leak that totalled 206 million gallons of oil .__Associated Press writers Janet McConnaughey in New Orleans, Chris Kahn in New York and Eileen Sullivan, Matthew Daly and Gerry Bodlander in Washington contributed to this report. http://www.oilweek.com/news.asp?ID=29676 NEW ORLEANS _ An offshore petroleum platform exploded and was burning Thursday in the Gulf of Mexico about 100 miles off the Louisiana coast, west of the site where BP`s undersea well spilled after a rig explosion.The Coast Guard said no one was killed in the explosion, which was spotted by a commercial helicopter flying over the site Thursday morning. All 13 people aboard the rig have been accounted for, with one injury. The extent of the injury was not known.They were rescued from the water by an offshore service vessel, the Crystal Clear, said Coast Guard Cmdr. She said they were taken to a nearby platform. All were being flown to the Terrebonne General Medical Center in Houma to be checked over.Thirteen people were seen huddled together in the water wearing gumby suits or immersion suits, water protection suits, so we were able to confirm that all people were accounted for, Coast Guard spokesman Chief Petty Officer John Edwards said.Seven Coast Guard helicopters, two airplanes and three cutters were dispatched to the scene from New Orleans, Houston and Mobile, Ala., Ben-Iesau said. She said authorities do not know whether oil was leaking from the site.The platform, known as Vermilion Oil Platform 380, was owned by Mariner Energy of Houston, according to a homeland security operations update obtained by The Associated Press. The platform was not producing oil and gas, according to the operations report.Melissa Schwartz, spokeswoman for Bureau of Energy Management Regulation and Enforcement, said the platform was authorized to produce oil and gas at this water depth but had not been recently in active production.There were ongoing maintenance activities underway, she said, adding it was in approximately 340 feet of water.White House press secretary Robert Gibbs said President Barack Obama was in a national security meeting and did not know whether Obama had been informed of the explosion.We obviously have response assets ready for deployment should we receive reports of pollution in the water, Gibbs said.A call to the company seeking comment was not immediately returned.Mariner Energy focuses on oil and gas exploration and production in the Gulf of Mexico. In April, Apache Corp., another independent petroleum company, announced plans to buy Mariner in a cash-and-stock deal valued at $3.9 billion, including the assumption of about $1.2 billion of Mariner`s debt. That deal is pending.Apache spokesman Bob Dye said the platform is in shallow water. A company report said the well was drilled in the third quarter of 2008 in 340 feet of water.Responding to an oil spill in shallow water is much easier than in deep water, where crews depend on remote-operated vehicles access equipment on the sea floor.The platform is about 200 miles west of BP`s blown out Macondo well. On Friday, BP was expected to begin the process of removing the cap and failed blowout preventer, another step toward completion of a relief well that would complete the choke of the well. The BP-leased rig Deepwater Horizon exploded April 20, killing 11 people and setting off a massive oil spill.__Associated Press writers Janet McConnaughey in New Orleans, Chris Kahn in New York and Matthew Daly and Gerry Bodlander in Washington contributed to this report. http://www.oilweek.com/news.asp?ID=29675 NEW YORK _ Oil prices headed higher Thursday after an initial retreat as reports on jobs, manufacturing and home sales gave mixed signs about the U.S. economy.Benchmark oil for October delivery rose 30 cents to US$74.21 a barrel in midday trading on the New York Mercantile Exchange. Prices dropped as low as US$73.11 in early trading.The U.S. Labour Department said first-time claims for unemployment benefits fell slightly last week, but are still above levels in a healthy economy.The National Association of Realtors said the number of Americans who signed contracts to purchase previously owned homes rose 5.2 per cent in July. But that was 19 per cent below the same month last year and home sales remain at the lowest level in more than a decade.One bright spot: factory orders rose 0.1 per cent in July, indicating some industrial growth.PFGBest analyst Phil Flynn said the numbers were mixed, which left the market searching for a direction. He thinks energy traders are waiting for Friday`s monthly unemployment report, a key indicator of the economy.I think we`re going to see a lot of caution ahead of those numbers, he said.Natural gas prices rose after the U.S. government said inventories increased by 54 billion cubic feet to about 3.106 trillion cubic feet last week. The total was 6.3 per cent lower than year-ago levels but about 5.8 per cent more than the five-year average.Natural gas for October delivery gained 3.9 cents at US$3.801 per 1,000 cubic feet.In other Nymex trading in October contracts, heating oil fell 0.04 cent to US$2.0407 a U.S. gallon (3.78 litres) and gasoline rose 1.54 cents to US$1.9045 a gallon, or about 50.4 cents a litre.In London, Brent crude was down 28 cents at US$76.07 a barrel on the ICE Futures exchange.(TSX:ECA), (TSX:IMO), (TSX:SU), (TSX:HSE), (NYSE:BP), (NYSE:COP), (NYSE:XOM), (NYSE:CVX), (TSX:CNQ), (TSX:TLM), (TSX:COS.UN), (TSX:CVE) http://www.oilweek.com/news.asp?ID=29674 GRAND ISLE, La. _ An offshore petroleum platform exploded and was burning Thursday in the Gulf of Mexico about 80 miles (130 kilometres) off the Louisiana coast, west of the site where BP`s undersea well spilled after a rig explosion.The Coast Guard says no one was killed in the blast, which was reported by a commercial helicopter flying over the area Thursday morning. All 13 people aboard the rig have been accounted for, with one injury.The extent of the injury was not known.Coast Guard Cmdr. Cheri Ben-Iesau said some of those from the rig were spotted in emergency flotation devices.Seven Coast Guard helicopters, two airplanes and three cutters were dispatched to the scene from New Orleans, Houston and Mobile, Alabama, Ben-Iesau said. She said authorities do not know whether oil was leaking from the site.The Department of Homeland Security said the platform was in about 2,500 feet (750 metres) of water and owned by Mariner Energy of Houston. DHS said it was not producing oil and gas.The Deepwater Horizon rig leased by BP was in about 5,000 feet (1,500 metres) of water when it exploded and sank in April, killing 11 workers and triggering a leak of about 206 million gallons (780 million litres) of oil. http://www.oilweek.com/news.asp?ID=29673 GRAND ISLE, La. _ An offshore oil rig exploded in the Gulf of Mexico on Thursday, west of the site of the April blast that caused the massive oil spill.A commercial helicopter company reported the blast around 9:30 a.m. CDT (1430 GMT) Thursday, Coast Guard Petty Officer Casey Ranel said. Seven helicopters, two airplanes and four boats were en route to the site, about 80 miles (130 kilometres) south of Vermilion Bay along the central Louisiana coast.The Coast Guard said initial reports indicated all 13 crew members from the rig were in the water. One was injured, but there were no deaths.The platform owned by Mariner Energy is in about 2,500 feet (750 metres) of water, the Coast Guard said, and was not currently producing.About 206 million gallons (780 million litres) of oil from an undersea well spilled into the Gulf after BP`s Deepwater Horizon rig exploded April 20, killing 11 workers. http://www.oilweek.com/news.asp?ID=29672 REGINA _ Saskatchewan`s Energy and Resources minister says the Conference Board of Canada will conduct an independent analysis of a proposed takeover of PotashCorp (TSX:POT).Bill Boyd says the board will provide a report identifying the risks and opportunities the development presents.He says in news release that the report will include an assessment of what governments can do to lower risk and increase opportunities.Australian miner BHP Billiton (NYSE:BHP) has launched a hostile US$38.6 billion, or US$130-per-share, takeover bid for Saskatoon-based PotashCorp.PotashCorp has roundly rejected the bid as too low, but a sweetened offer or white-knight bidder has yet to emerge.Boyd says the report will be completed and made public by the end of September and will be used as the basis for Saskatchewan`s submissions to Industry Canada. http://www.oilweek.com/news.asp?ID=29671 CALGARY _ Junior oil and gas explorer Valeura Energy Inc. (TSXV:VLE) says it has reached an agreement to invest close to US$9 million for a stake in a joint venture in Turkey.The Calgary-based company said Thursday it will work with its partners, two affiliates of Turkey-based Sayer Group, to develop the Kahta heavy oil field in southeastern Turkey.Valeura will invest a minimum of US$8.8 million for the first phase of exploration.Upon successful completion of the phase, it will acquire a 25 per cent stake in the Kahta production lease and three of eight exploration licences in the area.It will also acquire 12.45 per cent in the five other exploration licences.Valeura has the option to increase its investment to US$17.6 million to increase its interests to 50 per cent and 29.9 per cent, respectively.This is an exciting opportunity for Valeura, which provides us with a strategic toehold in Turkey and the MENA region/Mediterranean basin, a key focus area in our previously announced international growth plan, and is a foundation we can build on, Valeura`s president and CEO Jim McFarland said in a statement.Kahta is a technology play that is right up our alley and could set up a number of other opportunities in heavy oil reservoirs in Turkey.Valeura Energy Inc. is involved in exploitation, development and production of petroleum and natural gas in Western Canada.It is also pursuing an international strategy to expand into selected countries in Latin America, the Middle East and North Africa (MENA) region and the Mediterranean basin.Shares in the company were up 30 per cent or 8.5 cents to 36 cents apiece Thursday on the Toronto Venture Exchange. http://www.oilweek.com/news.asp?ID=29670 CALGARY _ A business think-tank sees rosier times ahead for Canadian oil producers, who are expected to reap $8.4-billion in profits this year as the world economy recovers from the recession and energy demand picks up.With the global recession giving way to economic recovery, demand for crude is expected to resume a long-term upward trend, the Conference Board of Canada said in its summer industrial outlook, released Thursday.Global oil consumption is nearly back where it was before the financial meltdown and prices have almost doubled from the lows they hit last year.Prices may be higher, but the Conference board notes they`re still well below their 2008 peak and says uncertainty over the recovery and high inventories will limit price increases.Even so, it predicts Canadian oil companies will fare much better this year after a large drop in oil prices last year reduced profits by 90 per cent to about $1.7 billion.Canada`s oil producers should pull 4.1 per cent more crude from the ground this year with improvements on the conventional side, the group said.Most future growth is expected to come from higher oilsands production.The exact timing of individual projects remains uncertain; however, with oil prices remaining elevated and several projects already announced, there should be no shortage of new capacity coming online over the forecast, the report said.Last year, costs in the industry fell 20 per cent to $67.5 billion, with the biggest drop coming from material costs. The fact that many producers hung on to their workers stopped costs from plummeting further.Costs will bounce back this year. With so many projects on the horizon, oil companies will add 3,400 more jobs to their payrolls, the report said.Wage growth will slow, but it will still hover above the national average at 3.9 per cent.Combined, this will drive labour costs up 10.3 per cent this year, the report said. http://www.oilweek.com/news.asp?ID=29669