GPB Global Resources Explores Oil In Ethiopia

Ethiopia is one of the most vibrant nations in Africa. This is an area with a long history and a highly educated population. Those who can find opportunities in this area are likely to find a workforce happy to reach for profits with them. One company that understands this process is GPB Global Resources. GPB Global Resources is a unit of a much larger state owned enterprise. As such, GPB Global Resources has behind it the know how of Russia, a nation with an equally long history and an equally educated population ready and able to meet the challenges of the coming decade. Right now, those who watch this industry are not surprised to learn this is one team that is about to invest millions in this part of the world. GPB Global Resources is bringing in about sixty million dollars to Ethiopia in order to search for petroleum resources. The company has a specific focus on the northeastern part of the country. They expect to find a great many potential places to drill in this area. See the company’s profile on Linkedin.

Approval From the Government

Officials at this company have found approval from the Ethiopian government. The approval is in part for an agreement that allows them to explore the area for a period of seven years. In addition, they have also signed an agreement that allows them to spend twenty-five years in producing any oil they might find in this part of the world. They plan to put in a series of test wells that are designed to see if there’s oil in an area that’s about forty-two thousand square kilometers. The area they intend to explore is known as the Afar region. This is a historical region that forms part of a region known as the East Africa Rift Valley. The East Africa Rift Valley has been inhabited by humans for many thousands of years. This is part of an overall plan with the Ethiopian government that seeks to help vastly increase revenues for the country. Doing so will help all involved create value for the company and Ethiopian citizens.

Source: https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapid=244300141

Something Curious Is Happening At The Secretive Hedge Fund DE Shaw

Ordinarily, no news gets out of the very secretive hedge fund DE Shaw. This changed recently when it required everyone to either sign a new non-compete agreement or be fired. Odd enough on its own, it’s also the date that employees have to sign this agreement that is drawing attention.

Last May, Managing Director Daniel Michalow was fired after allegations that he had acted sexually inappropriately with several female coworkers. He denied the allegations, stating that he might be a real jerk at times but that being sexually inappropriate wasn’t a line he would ever cross.

DE Shaw is a hedge fund that uses computer algorithms to determine which stocks to trade. Management said the new non-compete agreements would bring the company in line with what the rest of the hedge fund industry is doing. However, the date these need to be signed by, September 16, is the same date that Daniel Michalow’s non-compete agreement with DE Shaw expires.

It seems obvious that DE Shaw management is concerned that he will poach their hedge fund’s employees. DE Shaw is stating that the date is just pure coincidence but it’s still very odd given how detail-oriented this company is. Internal correspondence has been leaked that shows this company is very serious about everyone signing the new agreement.

It doesn’t make much sense for employees to leave DE Shaw to join Daniel Michalow when they can just stay put and see how things play out. However, some of its pissed-off portfolio managers may decide to leave as it appears their future compensation might be cut. DE Shaw leadership even asked its managers for a pledge of loyalty earlier this year. More than a few of its employees might just decide to leave and take their skills elsewhere.

Tim Duncan is Leading Talos Energy Right Into Success

Hurricane Harvey flooded Tim Duncan’s Texas neighborhood. He took his wife, son and dogs into a FEMA rescue boat. The Chief Executive of Talos Energy has been planning a merger for $2.5 billion with Stone Energy. The merger completed in May leaving Duncan in charge of $900 million in assets mostly in the Gulf of Mexico. The drilling platforms in this area cost hundreds of millions with the possibility of a catastrophe always present. Talos takes chances while producing more than 48,000 barrels of oil each day.

Tim Duncan grew up in Florida, Texas and Egypt as the son of an oil man. The biggest asset Talos has is the Phoenix field. Chevron developed the field, installed platforms and drilled wells. The Typhoon platform was capsized in 2005 by Hurricane Rita and drifted across the gulf nearly sixty miles. Talos cleaned up the mess and now uses a unique ship to pump 16,000 barrels every day from Phoenix. According to the seismic data Phoenix will grow. Talos will inherit the Pompano platform from BP along with several other prospects for $200 million.

Duncan assisted with the Gryphon Exploration launch in 2000 to acquire the High Island 52 shallow water oil field. The drilling of additional wells boosted the output prior to his selling to Woodside Petroleum. He was one of the founders of Phoenix Exploration in 2006. He teamed with his partner in discovering the Belle Isle Field in Louisiana before selling in 2011 to the Apache Corp. By this time the industry was reeling from the drilling moratorium imposed by the Obama administration due to the BP catastrophe.

After the Permian Basin, the gulf is the nation’s largest oil province with 1.6 million barrels pumped each day. In excess of $3 billion of the oil royalties go to the U.S. Treasury every year because the majority of the resources are located in federal waters. More federal waters have been opened by the Trump administration for leasing. Talos represents a good future on the Mexican area of the gulf. With Tim Duncan leading the company the future is expected to be bright.

https://www.crunchbase.com/organization/talos-energy