NORTH AMERICA EnCap Flatrock to Invest as Much as $500 Million in Tall Oak - Bloomberg - EnCap Flatrock Midstream, the

energy-focused private equity firm, will invest as much as $500 million in Tall Oak Midstream LLC, a new company started by former executives of DCP Midstream Partners LP and Chesapeake Energy Corp. (CHK) - Tall Oak, based in Oklahoma City, will invest in new and existing oil and gas gathering and processing assets in the middle of the U.S., Ryan Lewellyn, Tall Oaks chief executive officer, said in an interview. Baytex to acquire Aurora for $2.6 billion - Oil & Gas Journal - Baytex Energy Corp., Calgary, has agreed to acquire Aurora Oil & Gas Ltd., Subiaco, Western Australia, for $2.6 billion, providing Baytex with 22,200 net contiguous acres in the Sugarkane field in the Eagle Ford shale of South Texas - Following the purchase, Baytexs 2014 production is expected to reach 85,000 boe/d, comprised of 53% heavy oil, 34% light oil and liquids, and 13% natural gas. PNR reports $3.3 billion capex plan for 2014 - Oil & Gas Journal - Pioneer Natural Resources Co. (PNR), Dallas, reported capital expenditure plans of $3.3 billion for 2014, $2.2 billion of which will be used to target the northern Spraberry-Wolfcamp area in the Midland basin of West Texas. - PNR said it will continue to shift drilling activity in the Spraberry-Wolfcamp from vertical drilling to horizontal drilling, hoping to enhance ultimate resource recoveries. Phillips 66 advances Sweeney fractionator, Freeport export terminal - Oil & Gas Journal - Phillips 66 will build both its Sweeny Fractionator One and Freeport LPG Export Terminal. The 100,000-b/d Sweeny fractionator will be in Old Ocean, Tex., close to the companys Sweeny refinery, and will supply purity NGLs to the petrochemical and heating markets. The company expects the fractionator to enter service thirdquarter 2015. Phillips 66 will also install a 100,000 b/d de-ethanizer at the site to upgrade domestic propane for export. Apache Profit Slides on Weaker Production - Apache Corp. said its fourth-quarter earnings tumbled on weaker oil and natural-gas production that hurt revenue, along with other impacts from divestitures last year. LATIN AMERICA Petrobras Seen Struggling to Meet Targets by Odebrecht - Bloomberg - Petroleo Brasileiro SA (PETR4), the most indebted oil company, is facing difficulties meeting its goal of doubling output by 2020, said supplier Odebrecht Oleo & Gas SA. - Petrobras is doing what they can to mobilize gear, equipment and capex, and an enormous concentration of FPSOs are coming into production in 2014 and 2015, but is it soon enough? Roberto Ramos, head of Odebrechts oil equipment unit, told the NBCC. The Petrobras balance sheet could also limit the increase of development speed. EUROPE Eni to Raise Dividend and Cut Spending - Italy's largest oil and gas group plans to increase by 1.9% the dividend it pays in 2014 and by another 1.8% to 1.12 euros ($1.52) the payout in 2015. The company also said it expects to reduce its four-year capital expenditure plan by 5% to 53.8 billion, compared with its March estimate of 56.8 billion for 2013-2016.

ASIA / PACIFIC China Regulations Threaten Vale's Shipping Plans - New regulations from China's Ministry of Transport issued this week could deal a blow to Brazilian mining company Vale SAs plans to use supersize ships to serve China. - This poses a problem mainly for Vale as it has spearheaded a multibillion-dollar investment program to build a fleet of giant carriers, known as Valemaxes. capable of loading 400,000 dwt of cargo, AFRICA Group Blocking East Libya Ports Says Seeking 15% of Oil Revenue - Bloomberg - The group that declared Libyas eastern region semi-autonomous and is blocking ports handling more than half the countrys oil exports says it wants 15 percent of the revenue from national crude sales. - Forces led by Ibrahim Al Jedran, a former commander of the nations Petroleum Facilities Guard, closed four of nine crude-export terminals since the end of July. Asanko Gold Corporate Update - Asanko Gold Inc.s recent acquisition of PMI Gold has created a flagship project in Ghana and the foundation on which to the build a mid-tier gold mining Company. The flagship project will be created by combining both the Obotan and Esaase Projects into one mine which will be renamed collectively as the "Asanko Gold Mine" ("AGM" or the "Project"). The process of integrating PMI into Asanko is well underway and expected to be completed in Q2 2014.