Ammonite Senior Consultant Betsy Suppes has been elected vice president of the International Institute of Mineral Appraisers (IIMA) at the Society of Mining Metallurgy and Exploration annual meeting held in Phoenix, Arizona. Suppes, credentialed as a certified minerals appraiser with the IIMA, will hold the office for two years. She presented a paper at the conference titled “Case Studies in Appraisals: When a Few Months Makes a Difference Using the Comparable Sales Approach to Value”. Since becoming a certified mineral appraiser in 2020, Betsy has brought a number of projects into the Ammonite fold for which our firm’s consultants have provided appraisals of mineral interests and served as expert witnesses in litigation matters. Ammonite is currently evaluating the expansion of a large commercial sand and gravel operation onto some 30 acres of a client’s farmland in Central New York. The landowner approached Suppes in her capacity as a mineral appraiser.

Ammonite’s mining consultant David M. Abbott, Jr. has been selected by The Society for Mining, Metallurgy, and Exploration to receive the prestigious Harry Parker Excellence Award for 2024.  The citation reads “For his leadership and contributions to drafting the various editions of the SME Guide and the new SME Guidance about mineral deposit disclosures and for contributions to geoscience ethics.” Abbott has been part of the SME’s Reserves and Resources Committee since 1988 and has been a major contributor to the various editions of the SME Guide for Disclosing Exploration Information, Mineral Resources, and Mineral Reserves. He was heavily involved in creating the SME’s comments on the SEC’s proposed rules that led to the adoption of Regulation S-K Rule 1300. David has addressed a variety of issues related to R&R disclosures and the requirements for Qualified or Competent Persons in his Professional Ethics & Practices column over the years.

Ammonite Managing Partner Skip Hobbs realized a life-long dream in late August-early September when he participated in a 10-day geological field trip by river raft through the Grand Canyon.  Dr. Lewis Kleinhans led the trip, and Skip’s sons came along as “field assistants”. The river raft experience, the geology and the incredible grandeur of the Grand Canyon were spectacular.  There are thick sequences of Mississippian Age carbonates with vertical fracture systems in Grand Canyon. Springs flow out of the Mississippian joints and fractures along the canyon walls.  Ammonite is currently working on a project in the Mississippian Lime SCOOP and STACK plays in Oklahoma where horizontal wells have high water cuts due to intersection with the water-bearing fractures.  It was very interesting to see at outcrop the geometry of the fractures and water flow in otherwise tight rocks.

Skip, Gus and Alex Hobbs at The Great Unconformity in Blacktail Canyon in the Grand Canyon @ mile 121. The Cambrian Tapeats Sandstone (505 Ma) overlies the Early Proterozoic Vishnu Schist (1750-1680 Ma). There is a 1.2-billion-year gap in geologic history.

One of the field trip participants, Prof. Madeline Marshall of Albion College in Michigan, had a license from the US Park Service to sample a rare locality of Devonian Age tree root systems in the Temple Butte Formation incised valley fill.  We spent a day describing the formation and collecting samples which then had to be carried down steep canyon walls to the expedition rafts. It is rare to actually be able to do new geological research in a national park.

Skip and Dr. Marshall examining the outcrop with Devonian tree roots.

UConn and National University of Taiwan students at the Yehliu Geopark in northern Taiwan

December 31st–January 13th Ammonite Managing Partner Skip Hobbs participated in a geological field trip to Taiwan that was organized by the University of Connecticut Department of Earth Sciences, and the National University of Taiwan Geosciences Department. Hobbs went as an adjunct instructor in his capacity as an external advisor to the UConn Earth Science Department. The trip was led by UConn professor Tim Byrne who is an expert on the Taiwanese mountains and the plate tectonic dynamics that have created them. There were five students from UConn, another adjunct instructor who got her PhD with Dr. Byrne about 10 years ago, Hobbs, and 16 undergrad and grad students and two professors from the Taiwanese university. Ammonite Resources provided scholarships to help pay the travel expenses of two UConn students who would otherwise not have been able to make the trip.

At the tectonic suture

Marble in The Tailuko Gorge National Park

Skip said that the 10 days traveling the length and breadth of Taiwan was one of the most interesting geological, cultural, and geopolitical trips he has ever experienced, and the food was fabulous. The collision of the Philippine and Asian tectonic plates has resulted in steep mountains that are over 12,000 feet high in Central Taiwan. Intense monsoon rains have carved deep canyons in the rain-forested mountains. The students visited Taiwan’s lone producing oil and gas field at the Chuhuangkeng surface anticline, and a gas seep that is believed to result for the disassociation of methane hydrates in the deep marine sediments that have been uplifted by the tectonism. Hobbs gave a lecture about petroleum systems when the group visited the oilfield.

“Prof” Hobbs explaining how to measure strike and dip

A typical Taiwanese meal.

In March 2013 Ammonite was retained as geotechnical and engineering consultants on behalf of plaintiffs by Robbins Geller Rudman & Dowd LLP in a class action suit against Sandridge Energy, Inc, Oklahoma City, Oklahoma. Our role was to confirm the basis for the complaint that Sandridge and its management had misrepresented the results of its multi-billion dollar Mississippi Lime play. We examined the company’s operations and public disclosures inclusive of the lease acquisition program, exploration and development budgets, drilling results, production figures, reserve estimates, and the decline curve for the Mississippi Lime. Between 2013 and 2019, Ammonite consultants Skip Hobbs, Lynn Pittinger, Betsy Suppes, Bob Merrill, Mike Canich, and Mark and Zach Hughes worked on various aspects of the litigation. Ammonite also assisted counsel in amending the original complaint, preparing a list of documents to request in discovery, preparing questions for depositions of Sandridge technical staff and management; responding to defendant’s reply briefs; and finally in selecting a testifying expert witness. This was the largest engagement in Ammonite’s 42 years in business.

It its September 1, 2022 filing with the federal court requesting reimbursement of third-party litigation expenses, counsel for Robbins Geller Rudman & Dowd included the following:

(f) Experts/Consultants/Investigators: $1,330,971.86.

(i) Ammonite Resources: $761,193.90. Ammonite Resources (“Ammonite”) served a critical consulting role from nearly the start of the Litigation. This case involves highly complex and specialized issues relating to oil and natural gas production and estimates of reserves. Ammonite Resources is an expert consulting group specializing in geotechnical and economic analysis of energy and mineral exploration. Robbins Geller attorneys worked with Ammonite in key facets of the case, including the investigation for the amended complaint and all iterations thereafter. Ammonite assisted with the analysis of SandRidge’s business and reserves, including evaluations of the estimated ultimate recovery (“EUR”), gas to oil ratio (“GOR”), and economics of SandRidge’s assets in the Mississippian play. Ammonite assisted Plaintiffs’ counsel with the interpretation of Defendants’ statements during the Class Period and in formulating Plaintiffs’ claims. Ammonite also provided substantial assistance to Plaintiffs’ counsel during discovery, including document discovery and depositions. Ammonite helped Plaintiffs’ counsel analyze and interpret documents and data obtained during discovery, consisting of thousands of pages of Case 5:12-cv-01341-G Document 579 Filed 09/01/22 Page 5 of 12 – 5 – 4854-6850-3081.v2 spreadsheets containing technical oil and gas production and reserves data. Ammonite assisted Plaintiffs in evaluating the evidence developed during discovery.

Ammonite Managing Partner Skip Hobbs said that Ammonite’s work on the Sandridge litigation with the legal team from Robbins Geller Rudman & Dowd was a most interesting and intellectually rewarding engagement. It also provided a front-row seat to observe and learn how a complex, fiercely defended litigation, slowly works its way through the United States justice system.

Robert E. Cameron, Ph.D.

Ammonite Resources is honored to announce that distinguished mining engineer Dr. Robert Cameron has become an associate of Ammonite and is now our Senior Mining Engineer. Dr. Cameron has over 40 years of experience in classical and computerized geostatistical analysis of ore reserves, mine planning, mine design, computerized studies for mine production optimization, ultimate pit limit optimization, mine efficiency studies, equipment selection and utilization and operations research. He is also an expert in mineral commodity studies, computer modeling of commodities, and remediation of abandoned mine sites. Bob Cameron has completed geostatistical estimations or resource and reserve reviews or audits on over 350 mining properties worldwide during his career.

Currently, Dr. Cameron is a Registered Member of the Society of Mining, Metallurgy and Exploration and a Member and Qualified Person of the Mining and Metallurgical Society of America in mining and ore reserves. He meets the requirements for “Competent Person,” as defined in the Australasian JORC Code and the requirements for “Qualified Person,” as defined in Canadian National Instrument (NI) 43-101 for the purpose of Mining and Mineral Resource and Ore Reserve estimation and reporting. In addition, he is an Associate Mineral Appraiser of the International Institute of Mineral Appraisers. He holds B.S., M.S., and Ph.D. degrees in Mining Engineering from The University of Utah. In his “spare time” Bob teaches courses and lectures in geostatistics, mine planning, mine systems analysis, and mine valuation and engineering economics at the Colorado School of Mines and South Dakota School of Mines and Technology. Dr. Cameron is currently an Adjunct Professor at the Colorado School of Mines.

Ammonite Managing Partner Skip Hobbs noted that the addition of Bob Cameron to the Ammonite Associates vastly expands the firm’s expertise in the mining industry. Much of Ammonite’s mining consulting work Hobbs said, has been as consults to counsel in mining securities litigation, starting with the multi-billion dollar Canadian Bre-X gold scandal in 1997. Dr. Cameron is a perfect candidate as an expert witness in mining litigation where there are disputes in mineral resource and proven reserve estimates and their fair market value.

Good science assures the nation’s health, wealth and national security. As we approach the November elections, the Council of Scientific Society Presidents (CSSP) urges all national, state and local elected officials, and those who are candidates for election, to stress the importance of best scientific practices in legislative and policy deliberations.

In his capacity as an alumni member of the Council of Scientific Society Presidents in Washington, D.C., Ammonite Managing Partner Skip Hobbs serves as the chair of the CSSP Committee on Government and Public Affairs. Hobbs was recently tasked with, and was the principal author, of a policy statement of the CSSP calling on politicians to use good science. 

The well-being of Americans is currently challenged on many fronts. These include: a pandemic that has seriously affected the nation’s health and economy; drought; catastrophic fires; flooding from torrential storms and sea level rise; and threats to our crop, forest and fishery resources – all being exacerbated by climate change. Cybersecurity is a growing problem leading to compromises to personal identities, intellectual property, through the hijacking and ransoming of websites and databases belonging to companies, municipalities, and healthcare systems; and even putting the integrity of our electoral process into question. Good science will help resolve these threats and provide hope for a future in which we can all be vested.

CSSP Policy Statement

Ammonite’s Betsy Suppes has been named a Certified Mineral Appraiser by the International Institute of Mineral Appraisers. Betsy has been working towards this for several years, including taking the requisite appraiser course – the Uniform Standards of Professional Appraisal Practice (USPAP), and passing the examination.

This new professional certification is opening many new business doors for Betsy as mineral owners and their legal and tax advisors seek independent valuations for mineral interests. One of Ammonite’s major consulting projects in 2019 was the appraisal of the producing and non-producing Bakken oil and gas interests of Missouri River Resources, an operating company owned by the Affiliated Mandan, Hidatsa and Arikara Indian Nations in North Dakota. Betsy was the lead consultant in establishing an appraised value for the MRR assets. This involved researching all sales of production and undeveloped leasehold in the Bakken Play over the past several years, and establishing a “comparable” at a time of volatile commodity prices.

In February 2020, Betsy presented a paper titled “Appraisals: Norming the Data for Comparable Sales of Unconventional Resources” in Phoenix, Arizona at the annual meeting of The Society of Mining Engineers. Suppes talked about how an appraiser must evaluate the differences in published sale values between properties that are not similar. For example, do large tracts get a premium; and how will short-term pipeline capacity affect sales price? A short Q&A followed the talk. The technical session at the SME meeting was organized by The International Institute of Minerals Appraisers.

Ammonite’s Managing Partner Skip Hobbs said that “Betsy’s new certification is an important addition to the company “tool box” as Certified Appraisals are sometimes needed for financial institutions and legal instruments.” Betsy said that “she is glad to be able to bring her new credentials to Ammonite projects.”

Paul Dudenas, P.E.

Ammonite is pleased to announce that Pennsylvania resident Paul Dudenas has joined Ammonite after his recent retirement as General Manager and Chief Technical Officer for East Management Services, L.P./ JKLM Energy. He has more than 46 years of experience in the U.S and internationally, primarily in the area of reservoir engineering. Paul brings his extensive “hands-on” expertise in unconventional reservoir development to Ammonite as someone who has actually designed, drilled, completed and operated hundreds of horizontal shale wells.

Dudenas began his career with Amoco Production Co. in West Texas, gaining experience in drilling, formation evaluation, production, waterflooding and reservoir engineering. Subsequent Amoco assignments in Houston, Michigan and Pennsylvania followed for 7 years. Afterwards he obtained his M.S. degree while researching the use of pure Penn State dilute surfactants for enhanced oil recovery. He taught Petroleum Engineering at Marietta College for 4 years before spending 13 years working for Saudi Aramco. At Aramco he oversaw development plans for two newly discovered oil fields prior to working in Reservoir Management, focusing on field development optimization at Ghawar, one of the largest oil fields ever discovered.

Paul joined East Resources in 2002 as manager of engineering in East’s Warrendale, Pennsylvania office. Since 2006, he has worked primarily on the exploration, planning and development of unconventional shale resources. He was involved in all aspects of the grass roots development of the Marcellus Shale in northeastern Pennsylvania with East Resources. This included exploration, planning, drilling completing and optimization of all aspects of field development.    Production reached 140 MMCFD from 150 Marcellus wells in some stage of drilling, completion or production. The assets were sold to Shell Oil in 2010 for $4.7 billion. At the time it was the largest transaction in the Appalachian Basin.

In 2011 Paul’s team at East Resources began two additional grass roots shale developments – the Marcellus Shale in northern West Virginia, and the Utica shale in Ohio. After having 60 wells in various stages of drilling, completion or production and producing over 120 MMCFD, these assets were sold to American Energy Partners, (AEP was an Aubrey McClendon company) in 2014 for $1.75 billion.

Paul Dudenas has done extensive evaluation work in other unconventional assets including the Eagle Ford, Haynesville, Bakken, Niobrara, Scoop/Stack and West Texas shale plays. He has worked to mitigate the negative aspects of parent-child well interactions during field development. His knowledge and experience in field development of both conventional and unconventional resources is wide-ranging. While at East Resources/JKLM Energy, Paul managed all of the reserve evaluations for budget and reserve-based lending purposes utilizing the Landmark Aries economic software. He has done extensive individual well rate, reserve forecasting and economic evaluations on many thousands of horizontal unconventional oil and gas wells and also for conventional wells.

Paul taught an industry short course from 2011-2012, titled “Evaluating and Developing Unconventional Shale Resources” for the oil and gas training company PetroSkills. Course material is currently being completed for his “Unconventional Resources Exploration & Development Fundamentals in 2020” course, a more comprehensive and modern version of the course he previously taught. He has presented numerous lectures on Unconventional Oil and Gas Resources for Carnegie Mellon University, The University of Pittsburgh and Penn State University.

Dudenas grew up in Western Pennsylvania, attended The Pennsylvania State University where he obtained B.S. and M.S. degrees in Petroleum and Natural Gas Engineering. Paul is a registered professional engineer in Pennsylvania.

Brian J. Macke, P.E.

Ammonite Resources is honored to announce that Colorado resident Brian Macke has joined Ammonite as our expert on petroleum and environmental regulatory affairs.

Brian is a consulting engineer with 38 years of experience in the oil and gas industry in both the public and private sectors with particular expertise and experience in the fields of regulatory affairs and environmental, health, and safety (EHS), with a focus on the U.S. Rocky Mountain region, particularly Colorado. Brian provides advisory, expert witness, and professional services to a broad range of oil and gas stakeholders, including operators, mineral and surface owners, local governments, and non-governmental organizations to help them navigate the complex world of oil and gas permitting, regulatory compliance, due diligence, and participation in legislative and regulatory requirement development. Brian is a registered Professional Engineer in Colorado, and holds B.Sc. degrees in both Petroleum Engineering and Civil Engineering from the Colorado School of Mines. 

Brian is best known for serving as the former Director of the Colorado Oil and Gas Conservation Commission (COGCC) from 2004-2007 preceded by being the Deputy Director of the agency from 1993-2004, and Professional Petroleum Engineer based in Grand Junction Colorado from 1990-1993. During the time with the COGCC, Brian led the agency during a transformative period that included extensive regulatory rulemaking and development of a modern publicly available data system. He supervised the Colorado oil and gas well and location permitting and environmental protection programs, including being the chief staff representative for adjudicatory, enforcement, and rulemaking hearings, which required an extensive knowledge of oil and gas engineering and government regulatory principals. Brian served as the Governors Official Representative to the U.S. Interstate Oil and Gas Compact Commission and was also the agency’s primary media contact.

Macke worked extensively in the private sector both before and after working for the COGCC. Prior to public service, Brian worked for Ocelot Oil Corporation, Bow Valley Petroleum, and Ladd Petroleum Corporation in various drilling, completion, reservoir, and gas pipeline and plant engineering positions. After COGCC service, Brian has held positions with Delta Petroleum Corporation (2007-2012) as Vice President of EH&S and Regulatory Compliance, Chesapeake Energy Corporation (2012-2015) as Manager of Environmental and Regulatory Affairs, and Regulatory Affairs Advisor, and most recently with SRC Energy (2015-2020) as Director of Health, Safety and Environmental, and Director of Government Affairs.             

Brian Macke was a member of the Board of Directors of Colorado Oil and Gas Association (COGA) from 2008 – 2012. Since 2012 he has been on the Board of the Denver Petroleum Club, and was the President of the Denver Petroleum Club in 2014. He is a member of the Society of Petroleum Engineers.

Ammonite’s Skip Hobbs was in Washington December 7-10^th at the Council of Scientific Society Presidents semi-annual meeting. Hobbs was president of the American Geosciences Institute in 2011, representing 250,000 earth scientists of every discipline, and is now an Alumni Member of the CSSP. He serves as the Chair of the CSSP Committee on Government and Public Affairs. CSSP member societies represent more than one million academic, industry and government scientists in the physical, biological, environmental, and agricultural sciences, and in scientific education. Skip reports that the key policy concerns of the scientific community are currently:

1. Investment in Science R&D.  China and the EU now spend more money annually on government and industry funded scientific R&D than the USA.  In order to preserve the nation’s leadership and remain competitive, the USA must increase investment in science R&D. There is a definite multiplier effect on the economy for every dollar spent on R&D. Science and technology equals jobs and benefits to national health, welfare and security.

Areas of scientific R&D with major future economic potential include:  artificial intelligence; quantum computing; robotics; advanced materials; nanotechnology; synthetic biology; DNA printing; and technologies to reduce carbon emissions.

2. Immigration:  Current visa restrictions are having a significant impact on American university undergraduate and graduate student enrollment and budgets.  Thirty-four percent of PhD scientists are on temporary visas. Fully one-third of students enrolled in agricultural programs at Texas A&M University, for example, are Chinese. As foreign enrollment declines due to visa restrictions, the USA must train more of its own students as scientists, and consider increasing stipends to attract them. Nevertheless, we must have an immigration policy that encourages foreign talent to come to America to study, do research and stay in the USA. The scientific talent “pipeline” must be filled.

3. STEM Education:  We must do more to encourage students to study science. Gender equality, inclusiveness, social justice, and globalization are important aspects of the education process. Scientific societies should encourage their members to talk to K-12 classes, and undergraduates to explain what scientists actually do, and how rewarding, and important a career in the sciences can be. Students need to be instructed in how to get a job in science. 

4. Climate:  Jobs and the economy are the major concerns of the public. Climate change is low on the list of current political issues. However, local governments are for the most part simply not prepared to deal with the impact of acute storms, floods, drought, fires, and sea level rise. What can the scientific societies do to raise public awareness about dealing with climate change, and make climate change real for voters?  How can the consumer be incentivized to make changes? The cost benefits of reducing our carbon footprint and mitigating the impact of climate change, versus doing nothing, need to be clearly explained to the public. What is a sustainable path to success? Coastal states and Great Lakes science organizations are working to raise public awareness.  The scientific community needs to weigh in on the reasonableness of the Green Deal time line and cost.

2019 versus 2018:  Despite the perception that science is taking a back seat in the current administration, science is being done by government agencies and the science appropriations by Congress are strong.  There is a slightly more positive atmosphere for science, and the public has more respect for science. Issues like increased natural hazards due to climate change, vaccines, and GMO food are science issues that have been of interest to the public.  The science community is pleased that Congress has chosen to ignore the proposed cuts to science-based agencies and support modest increases in funding.  We encourage further support for science funding and respect for science-based decision making. Science policy must be based on facts, not political preferences.

The President’s Science Adviser, Dr. Kelvin Droegemeier, Director of the Office of Science and Technology Policy, addressed the CSSP on December 9^th about the science priorities of the Trump Administration.  Skip was able to talk with Dr. Droegemeier about the concerns of the CSSP membership.

Skip Hobbs, Dr. Droegemeier of the OSTP, and Dr. John Downing of the Association for the Sciences of Limnology and Oceanography discuss science policy at the CSSP meeting December 9th.

On December 10^th  Skip met with Sen. Sheldon Whitehouse of Rhode Island; Senator Angus King and Senator Susan Collins of Maine; the legislative staffers on science matters for Senators Chris Murphy and Richard Blumenthal of Connecticut; and with Rep. Jim Himes of Connecticut.  Hobbs is pleased to report that all of these Congressional legislators are strong supporters of science and financial support for the NSF, NIH, and the multitude of government science agencies.

Sen. Angus King and Skip Hobbs discuss science policy at a CSSP breakfast December 10th.

Dr. Bill Heins in a classic professorial pose

Ammonite Managing Partner Skip Hobbs is very pleased to announce that William A Heins has joined Ammonite as a Senior Exploration Advisor, a position he held when he retired from ExxonMobil this summer. Bill in a licensed New York Professional Geologist with 35 years of experience in geoscience, finance, and strategy, especially as they intersect in global unconventional and frontier hydrocarbon exploration.

As a former consultant (1985-1993) with the Strategic Management Group (SMG) of Philadelphia (now part of BTS), as a former geology professor at Vassar College and Lewis-Clark State College (1993-2001), and as a researcher and explorer at ExxonMobil for 18 years, Bill has concentrated on the quantitative, probabilistic, description of complex systems in order to predict and risk outcomes. Today he uses this approach to value individual prospects or properties and to evaluate investment portfolios of properties or exploration portfolios of prospects for maximum expected returns.

At ExxonMobil Bill helped risk the chance of Oil vs. Gas in prospects offshore Nigeria using genetic analysis and interpretive geophysics; collaborated to develop and patent the Sand Generation and Evolution Model, unique in the petroleum industry for predicting sand character in undrilled locations; and explored worldwide for unconventional hydrocarbons from the Bakken and Eagle Ford of the US, to opportunities across Europe, to frontier plays in South America and the Caucasus. Bill’s ExxonMobil career included postings to the UK and Germany from 2008 to 2013. Following his retirement from Exxon in 2019 as a Senior Exploration Advisor, Bill moved from Houston to New York City.

Bill Heins is a frequent keynote speaker on sediment genetics and play-element prediction at international scientific meetings, and an instructor in reservoir-quality courses for industry and academia.

He received undergraduate degrees in Geology and Finance from the College of Arts and Sciences, and from the Wharton School, at the University of Pennsylvania, where he was a Benjamin Franklin Scholar. He obtained a doctorate in Geology from UCLA. Heins was a Fulbright Scholar at Eotvos University in Hungary in 1992.  He communicates effectively in English (mother language), German (grandmother language), Hungarian (mother-in-law language), and Chinese (mother of all languages). The Chinese is a byproduct of several detours to the mainland and Taiwan during grad school, which included stints as translation editor at Acta Seismologica Sinica (English-language version of 地震學報) and Acta Geophysica Sinica (English-language version of 地球物理學報), and writer for the late-night China Central Television English newscast. Bill is a 2-time Jeopardy! champion, but do not, under any circumstance, ask him about Broadway stars of the 1950s.

Skip Hobbs and Francois Auzerais look forward to having our new “neighbor” Bill join us at our monthly lunches at interesting restaurants somewhere in Fairfield County, Connecticut to discuss global geoscience matters.

We are saddened to report that our colleague Dr. James Read Holland passed away in Tuscaloosa, Alabama on October 3^rd from complications following surgery.  Read was Ammonite’s expert on coalbed methane, and as an Ammonite consultant published several papers with Ammonite’s Skip Hobbs. His obituary in the Tuscaloosa News described Read as follows:

(Dr. Holland) grew up in a small railroad and farming community in the western part of Kentucky. He studied metallurgical engineering at the University of Kentucky. He attended the University of Sheffield, England as a Fulbright Scholar and received a doctorate in metallurgy at the University of Kentucky. Dr. Holland began his career working for the University of Kentucky at the University of Indonesia in Bandung on the island of Java. He then spent three years with the United States Air Force at Wright Patterson Air Force Base in Ohio as a 1st Lieutenant and civilian. From 1961 through 1974 he worked at Sandia National Laboratories in Albuquerque, New Mexico, and then for Westinghouse Research Laboratories in Pittsburgh, Pennsylvania. He moved to Tuscaloosa, Alabama, in 1981 to lead the School of Mines and Energy Development at the University of Alabama, which was dedicated to studying the energy resources of Alabama and the southeastern states. He established some of the early research on coalbed methane gas and was one of the founders of the Coalbed Methane Association of Alabama. After nine years, he left the university to establish a consulting firm, J. R. Holland and Associates, Inc. He continued to travel with his wife, Mabs, and see the world, from Alaska to Australia, until his health prevented him.

In addition to his scientific interests, Read was an avid hunter and breeder and trainer of Labrador gun dogs. He will forever be remembered by Skip Hobbs’s sons as he sent them a black Labrador puppy named Rose when they were in grade school.

As the televised celebration of the 75^th Anniversary of D-Day unfolded at the cemetery overlooking Omaha Beach in Normandy on June 6^th, 2019, and a few veterans of the conflict now in their mid-90’s were interviewed, Ammonite Managing Partner Skip Hobbs, was so moved that he revisited his parents war letters from June 1944.  Skip decided to share these letters with the Ammonite team, and wrote the following:

As we celebrate the 75th anniversary of D-Day today, I wanted to share with you the D-Day letters of my father to my mom.  My dad was based in London and was one of the officers who ran the Army Air Transport Command in Europe.  Watching the news this morning, I was very thankful for the sacrifices made by the men who landed on the beaches that day; glad that we did not have that experience; but would have been there if so ordered; and sad that our country is so divided now.

One of my fathers “favorite” war stories was the time Lord Astor came to the US Army HQ in April 1944 to invite my dad to go grouse shooting in Scotland in early June. Dad replied “Thanks Bill, but I have larger game to hunt then”. He was busy planning how to transport the troops by air and supply them.  In the 1930’s my father worked in the trust department of the First National City Bank in New York (now Citibank), and had the Astor Family as a client. He and Bill Astor became good friends.

I imagine that many of us had fathers who were in WW II, and perhaps who also participated in D-Day. My dad is long gone. He died in 1991 at age 86.  However, my mom, is still going strong at age 107. As a young mother, she knitted socks and gloves for the troops with the Red Cross. I have the letters that my mother and father wrote each other during the war. They are very interesting reading, and have given me some insight into my parents’ character and lives long before I knew them. 

The response from the Ammonite consultants was truly amazing with accounts from Pearl Harbor to D-Day and beyond, to “my dad was too young to serve, but my grandfather, mother, or uncle did”.

Click here to read the June 1944 correspondence between Major Hobbs in London and Helen Hobbs in Washington. Once you have read these letters, please click here to read the accounts of the relatives of the Ammonite Associates.

John R. Hogg, P. Geo., CPG, FGC

Ammonite Managing Partner Skip Hobbs is pleased to announce that John Hogg has joined Ammonite Resources as a Senior Exploration Adviser. A resident of Calgary, Alberta, John has extensive experience in frontier geoscience and exploration operations in the Canadian Arctic and on and offshore Atlantic Canada and Greenland.

During John’s career he has held various leadership positions in PanCanadian Petroleum, EnCana, Burlington Resources, ConocoPhillips Canada and MGM Energy Corporation. At MGM Energy Corp., from 2007-2014 John was Vice President of Exploration and Operations, and was involved in drilling exploration wells in the Mackenzie Delta and the Central Mackenzie Corridor, looking for both conventional and unconventional resources.

Since becoming a consultant in 2015, Hogg has worked, on Canadian exploration opportunities in the Arctic and Atlantic Canada, and on a number of new venture exploration opportunities in the Eastern Mediterranean, Central Africa, and onshore and offshore Southeast Asia, including Myanmar. John has also provided expert testimony for the Oil and Gas Committee of the Canada Newfoundland Offshore Petroleum Board on discovered resources in the Jeanne d’ Arc Basin; the Canadian National Energy Board on natural gas supply capacity for Atlantic Canada; and for the Government of the Yukon on the potential use of fracture stimulation technologies in the Canadian Arctic.

John obtained his BSc. in Geology from McMaster University in Hamilton Ontario Canada in 1981. He is a Professional Geoscientist (P. Geo.), and is registered in Alberta, the Northwest Territories and Nunavut. Hogg also holds a Certified Petroleum Geologist (CPG) designation from the American Association of Petroleum Geologists. He was the President of the Canadian Association of Petroleum Geologists in 2004, and served as the President of the American Association of Petroleum Geologists in 2015-2016.

Ammonite Senior Consultant Mary Van Der Loop is the firm’s lead expert for the Permian Basin. On May 20th Mary presented a paper on defining over-pressured “sweet spots” in the Wolfcamp Formation in the central portion of the Delaware Basin at the AAPG annual meeting in San Antonio.   Historic DST, resistivity and mud log data can be used to identify and define areas of over-pressure, where horizontal shale wells will have higher initial production rates and EUR’s. Click here to read the paper abstract, and then click here to see Mary’s presentation.

Bob Merrill on a recent “geothermal field trip” to the lava flows of the Galapagos Islands –(and yes, he was interested in the unique flora and fauna of the islands as well).

Ammonite is honored to announce that Dr. Robert Merrill, Ammonite’s Houston-based Senior Exploration Adviser, has been elected Editor of the Journal of the American Association of Petroleum Geologists. This is a tremendous professional achievement, and a volunteer job that will keep Bob on the leading edge of worldwide petroleum technology and exploration. Merrill was co-editor with Charles Sternbach, AAPG Past-President, of AAPG Memoir 113, Giant Fields of the Decade 2000-2010, published in 2017. He has been editor of the Journal of the Gulf Coast Association of Geological Societies.

On the Shoulders of Giants: A Geoscientist’s Journey from Antarctica to the Arctic
A multi-media presentation by Susan R. Eaton,
P. Geol., P. Geoph., M.Sc. DIC, B.Sc. Hon., B.J. (Journalism) Hon., FRCGS

A geoscientist, journalist and explorer, Susan R. Eaton studies the interplay of plate tectonics, oceans, glaciers, climate and life in polar regions.

In the past decade, Susan R. Eaton’s explorations have taken her from Antarctica to the Arctic—and many places in between.

A Fellow International of the Explorers Club and Fellow of the Royal Canadian Geographical Society, Susan explores the world’s oceans in the snorkel zone, a unique land-sea-ice-air interface where charismatic animals and snorkelers comingle.

A geologist and geophysicist with 35 years of experience in the oil and gas industry, Susan has modelled her career “On the Shoulders of Giants,” working with many pioneering men and women including Dr. Roy Lindseth, an industry giant who the CSEG will celebrate in March 2019.

Leveraging the technical, logistical and business skills developed during her petroleum career, she’s joined seven science-based expeditions to polar regions to study the interplay between plate tectonics, geology, glaciers, oceans, climate and life.

One hundred years ago, polar expeditions included geologists and geophysicists who mapped unknown lands, glaciers and floating ice sheets. In search of metals and minerals—including coal for their steam-powered vessels—geologists collected mineralogical and paleontological specimens in frozen lands. During Sir Ernest Shackleton’s expeditions to Antarctica, geoscientists planted the British flag on the geomagnetic South Pole, undertook celestial readings and bathymetric recordings, and made scientific observations of the ice pack.

One hundred years later, geoscientists still play a major role in the investigation of polar regions—today, they’re investigating the intersection of plate tectonics, volcanos, glaciers, ocean acidification, ocean change and climate change. And, they’re using sophisticated remote sensing technologies to discover what lies beneath ice sheets that measure several kilometres thick.

From Antarctica to the Arctic, Susan has explored “On the Shoulders of Giants,” following in the footsteps of Sir Ernest Shackleton and Roald Amundsen, the first explorer to sail through the Northwest Passage and the first man to reach the geographical South Pole.

Skip Hobbs and Bruce Genereaux on location in November

Ammonite was engaged in October to evaluate a royalty stream from one of the largest limestone quarries in America on behalf of an institutional investor owner of that royalty. The scope of the engagement involved meeting with the quarry operator on site to examine the mining operations, planned mine expansion, environmental issues, and mine life.

We built an economic model for the mine and royalty stream, and determined a range of the potential fair market value of the royalty.

As the client owns the land on which the quarry operates, we also looked at potential reclamation options, including turning the site into a lakeside golfing resort. Bruce Genereaux, a minerals economist who at one point in his career was the manager of an operating aggregate quarry in California, was the project lead.

Francois M. Auzerais, Ph.D.

Ammonite is honored to announce that Dr. Francois M. Auzerais has joined Ammonite as Senior Consultant for Geoscience Technology and Innovation. Prior to his retirement in 2016, Francois worked 34 years for Schlumberger, initially as a field engineer in South America in 1982, and subsequently in a variety of roles around the world before assuming a number of leadership positions. His main impact at Schlumberger was as General Manager of Schlumberger-Doll Research, Vice President Research, and then VP of Product Development, where he worked with the executive management team on value creation and technology enabled solutions to increase market share, revenue and profitability. Francois commercialized hundreds of technology projects taken from early phase research concepts to successful development. He worked worldwide with technology partners including academic institutions, government labs and commercial partners. Dr. Auzerais is an innovator in the oil & energy industry and holds thirty-one patents. As Vice President Research and Development at Schlumberger, he oversaw the R&D budget and $200MM of profit & loss for Product Centers. 

Francois Auzerais is a recognized executive with 30+ years of experience in the energy and technology industry. He is currently a senior advisor to private equity, venture capital and angel investors. In this capacity, he works with investors on due-diligence and post-investment value creation. Auzerais was a board member for Diamould Ltd., UK, and 3 Phase Measurements, AS.  

Dr. Auzerais received a PhD from Princeton University in 1989 and a MSc from the University of Houston in 1980. His undergraduate degree is in Chemical Engineering from INP_ENSIACET (France).  He is a member of the Society of Petroleum Engineers (SPE), and has been involved in many engineering professional activities, including: Offshore Technology Conference IEEE-Oceanic Engineering Society Committee Member (2013-Present); Advisory Committee member of the SPE Productions & Operations Discipline (2009-2012); service as a Session Chair at numerous Offshore Technology Conferences; and Chairman of SPE Production and Operation Young Professionals Task Force subcommittee (2012). Dr. Auzerais has served since 2013 as an Advisory Council member, Department of Chemical and Biological Engineering, Princeton University. He was a member of the MIT Energy Initiative governing board (2012-2016); and was an External Advisory Committee member, Department of Petroleum & Geosystems Engineering, at The University of Texas at Austin (2004-2006).  He resides in Westport, Connecticut.

Ammonite Managing Partner Skip Hobbs said that “the addition of Francois Auzerais to Team Ammonite gives our firm world class expertise in helping entrepreneurs to bring new energy technologies to market, and in assisting capital providers in technology due diligence. I look forward to working closely with Francois. He lives just twenty minutes from New Canaan, and we both enjoy a good glass of wine.” Hobbs and Auzerais were introduced by their wood working instructor at the Silvermine Art Guild!

Michael R. Canich, P.G., C.P.G

Ammonite Resources is pleased to announce that Mike R. Canich has joined Team Ammonite as a Senior Consultant for Geoscience and Project Management.  Mike has over 39 years of experience as a distinguished geoscientist and company manager, principally in the Appalachian Basin. 

During his career Mike has held numerous leadership positions, the two most notable were as Director of Business Development for Statoil Energy, and as Director/VP of Geology for EQT (formerly Equitable Resources).  During Mike’s 4 year tenure as Director of Business Development at Statoil, his team performed due diligence on  21 asset packages resulting in the $575 MM acquisition of Blazer Energy, a subsidiary of Ashland Oil company in 1997.  After the acquisition, Statoil Energy owned 1.7 million acres of mostly HBP acreage in Kentucky, West Virginia, Ohio and Pennsylvania. He oversaw the assimilation of the Ashland acquisitions into the Statoil corporate structure, and the subsequent purchase of a high percentage of Ashland’s joint venture partner’s working interests and overriding royalties. As Director/VP of Geology for EQT, Mike increased the drilling program size from just over 200 wells a year in 2000 to over 650 wells in 2008, with a 950 well program planned for 2009.   The increase was due to Mike’s institution of team building and operational process awareness in each of the three asset teams in the company.  Each geologist, engineer, landman, drilling engineer, production engineer, and administrative support person was made aware of their importance in the overall drilling process which extended from project inception to the sales meter. He also directed Equitable’s first 3D seismic program in the Appalachians. Mike Canich was responsible for drilling over 5000 wells during his 39 year career. Over 100 of these wells were drilled horizontally in the Huron and Marcellus shales in Kentucky, West Virginia and Pennsylvania when Mike worked at EQT.   Mike was instrumental in the drilling of EQT’s first Utica Shale well in southwestern Pennsylvania.  Based on the strong geologic foundation created by Mike during his tenure, EQT has become one of the premier Marcellus shale operators in the Appalachian basin. 

In 2009 Canich joined Sylvan Energy as Chief Operating Officer, and was Sylvan’s President from 2010-2013. The company was active in the Gulf Coast and Michigan basins. From 2013-2015, Mike was President and COO of Trimont Energy where he managed operations of Trimont and Grandview Drilling LLC in the Appalachian Basin.  He became an independent consultant in 2016.

 Mike Canich holds a BS in electrical Engineering and a MS in Geology from Penn State University. He is a member of the American Association of Petroleum Geologists (AAPG) and has been very active in the AAPG Division of Professional Affairs (DPA) serving in all of the Executive Committee positions including President. He currently serves as the Chairman of the board of certification for DPA.  Mike was also co-founder and three times President of the Pittsburgh Association of Petroleum Geologists. He is currently involved with Penn State University professors in bringing geologists, geophysicists and engineers, who are working carbonate and shale plays in the subsurface of the Appalachian Basin, to the numerous outcrops in Central Pennsylvania.  Discussions occur at each outcrop regarding similarities and differences in stratigraphic, structural and geophysical aspects that can be expected between the outcrop and the subsurface.  The objective of the field trips is to provide the geologist, geophysicist and engineer with a different perspective of the rocks they are encountering in their exploration and development programs.  From a less academic perspective, these trips to the outcrops are also of interest to investors in the unconventional plays.

Mike holds Pennsylvania Professional Geologist License # PG 001287G and AAPG Division of Professional Affairs, Certified Petroleum Geologist Certificate #4177.  He resides in State College, Pennsylvania.

Ammonite Managing Partner Skip Hobbs said that “Ammonite is excited to have Mike Canich join our consulting group. In addition to being a very experienced geoscientist, Mike is also a manager who has supervised very large exploration and development drilling programs. This is a valuable addition to our consulting expertise.”

Boulder, CO, USA: GSA’s governing Council approved a new position statement, Geoscience and Energy Policy, at its October 2017 meeting in Seattle, Washington. “This has been a long time coming,” said GSA President Isabel Montañez. “I would like to thank the committee for their thoughtful work and GSA members for their valuable input. We have a document that we can be proud of.”

The position statement summarizes the importance of the geosciences in developing fundamental data upon which sound energy policy should be based and the contributions geoscientists can make to the framing of energy policy.

Current Chair of GSA’s Geology and Public Policy Committee (GPPC), Art Snoke, noted that energy issues in particular have relevance to, and are debated, at many levels of society and government. According to the new statement, “Most energy sources have important and distinct geologic factors that should be considered when analyzing the life-cycle impacts related to exploration, extraction, development, operations, human consumption, waste disposal, decommissioning, and reclamation.”

The new position paper states, “Development of a comprehensive energy policy that significantly reduces greenhouse gas emissions is essential for the future economic vitality, environmental well-being, and health and security of the citizens of the United States as well as other nations. Geoscientists locate, quantify, and help develop energy resources, and, along with professionals in other disciplines, assess and mitigate the impact of energy-resource development, operations, and use on the environment. Accordingly, input from geoscientists must be an integral part of all energy policy deliberations.”

 
GPPC member G. Warfield “Skip” Hobbs emphasized that publication of the GSA energy statement “aims to inform policy makers in Washington that the geoscience community — experts in climate change and energy — agree that for the good of planet earth and humankind, policies must reduce fossil fuel carbon and other greenhouse gas emissions, and facilitate the transition to renewable energy resources.”

The statement continues, “The challenge for energy policy makers is to develop a plan that will provide cost-effective improvements for the efficient and sustainable use of Earth’s energy resources, reduce carbon emissions, and provide secure and affordable energy to the world’s developing economies as well as the developed nations of the world. The knowledge and expertise of geoscientists take on added importance as countries and industries worldwide adapt to climate change and work to reduce carbon emissions.”

GSA Energy Policy Press Release

Additional Comments from Ammonite’s Skip Hobbs

The Geological Society of America (GSA) adopted a Position Statement on Climate Change in 2006 which recognized that anthropogenic emissions of carbon dioxide (CO2) and other greenhouse gases have been the primary cause of global warming since 1880, and that this warming has significant impact on humans and global ecosystems. Revisions and updates to the GSA Position Statement on Climate Change in 2010, 2013, and 2015 are consistent with the findings of the National Academies of Science, Engineering, and Medicine and position statements of professional societies that deal with geoscience and climate change, such as the American Geophysical Union, American Meteorological Society, American Chemical Society, American Association for the Advancement of Science, and the Geological Society of London.

Since the 2006 GSA Climate Change position statement, the Geology and Public Policy Committee of the GSA has attempted and failed for over ten years to develop an energy policy statement with recommendations regarding how to achieve a reduction in carbon emissions. Members from the oil and gas producing states regularly voted down the draft statements. In 2016, GPPC member Skip Hobbs was asked to make yet another attempt to draft an energy policy statement.

Hobbs’s thesis was that “the use of abundant and cheap fossil fuels has contributed to the emergence of the United States as an economic power and has raised the standard of living for much of the developed world. This use, however, represents an energy business model that must change. We now know that anthropogenic greenhouse‐gas emissions, including those from fossil fuel combustion, have a profound impact on global climate, with effects on local and regional ecosystems and public health. In addition, over the last few years, other energy sources have become economically competitive with fossil fuels.” Geologists employed in the fossil fuel industries, oil companies, and states with strong petroleum related economies feel threatened by calls to reduce carbon emissions.  Hobbs included in the draft statement the figure reproduced below which shows energy consumption and source through 2040. 

Hobbs explained to the GPPC that petroleum geoscientists have nothing to fear professionally, as they will be fully employed through the 21st Century in the search for new hydrocarbons to meet global energy and petrochemical demand. Further, every single barrel and mcf of proven and unproven reserves, and possible resources in the minds of current geologists, will be produced. The real challenge he explained is to train the next generation of petroleum geoscientists to find the future reserves that will keep the “lights on” when our generation is in nursing homes”.   The GPPC debated and tweaked the draft position statement for over six months, and then voted unanimously at the October 2017 GSA Annual Meeting in Seattle to send the statement to GSA Council. The Geosciences and Energy Policy statement was approved unanimously by the GSA Council.

Full text of position statement

David M. Abbott, Jr., P.G.

Ammonite Senior Geological Consultant David M. Abbott, Jr. has been appointed the American Association of Petroleum Geologists Distinguished Lecturer for Ethics for 2018. Abbott has been writing, lecturing, and offering short courses on geoscience professional ethics since 1989 and has published over 50 papers on the subject for a number of geoscience professional societies around the world. Abbott is offering five different lectures on various aspects of geoscience professional ethics to colleges, universities, and geological societies in the US and Canada. His talks are:

1) Fundamentals of Geoscience Ethics: This talk examines the principles of common morality that underlie written ethics codes including the differences between statements of rules that must be complied with and aspirational statements, the procedure for determining if a violation of a rule is justified, and case histories of common ethical issues in geoscience practice. This talk is intended as an introduction to geoscience ethics.

2) The Development of Geoscience-related Ethics Codes: Many geological and related engineering professional associations were founded in the 19^th and early 20^th centuries but ethics codes were generally not adopted until after WWII. The AAPG Code of Ethics was the first code and was adopted in 1924. Codes have changed over the years for a variety of reasons as has their organization. There are common principles in the codes like honesty, integrity, transparency, etc. Most codes also explicitly state that protection of the public’s health, safety, and welfare supersedes employer/client confidentiality. Emerging additions to ethics codes include statements about harassment and discrimination, sustainable development, and global human welfare. Whether an ethics code requires enforcement procedures, the implications of enforcing an ethics code, and the characteristics of effective disciplinary procedures are reviewed.

3) Honesty—Avoiding the Misuse of Models: Honesty is a basic principle of geoscience ethics. We all use models, but all models are incomplete and flawed. Nevertheless, some models are useful in assisting understanding of a particular system. Honesty requires disclosure of the limitations and deficiencies of a particular model. Modern computer modeling permits examination of complicated models, but these models are still not “the truth.” Professional judgement is still required in determining the utility of a model and to guard against self-deception.

4) Aspects of Geoscience-related Ethics Codes: This talk examines several issues in geoscience-related ethics including: Continuing Professional Development—encouraged or required; public protection versus confidentiality; ethical, but upsetting research; a look at the problems with models; and whistle blowing—when, how, and consequences; the protection of geodiversity; failure to respect others’ opinions; and aspects of switching jobs.

5) Geoscience Ethics: Public Protection Versus Confidentiality: Protection of the public’s health, safety, and welfare and protecting the confidentiality of an employer’s or client’s confidential information are fundamental geoscience ethics principles. What happens when these two principles conflict? Generally, geoscience ethics codes state that public protection supersedes confidentiality. Several examples of such conflicts are examined along with the implications of whistle blowing.

Attendees at David’s lectures will qualify for continuing education units in ethics education as required by certain professional society certification and state licensing requirements.

Skip Hobbs presenting to the Yale School of Management

Ammonite’s Managing Partner Skip Hobbs gave a presentation on April 28, 2017 at the Yale School of Management entitled “Harnessing Vulcan’s Might–An Overview of Geothermal Energy”. The lecture discussed the technology of geothermal energy, the location of the world’s geothermal resources, due diligence issues,  and the growth potential and economics of geothermal energy.

Skip Hobbs South Lawn of the White House, Earth Day 2017 (Hobbs did not jump the fence).

As a past-president of the American Geosciences Institute and alumni member of the Council of Scientific Society Presidents, Ammonite Managing Partner Skip Hobbs felt that he had an ethical obligation to participate in the March for Science in Washington on Earth Day 2017. Scientific innovation has made America great, and must have strong continued US Government support to continue to do so. Dealing with and mitigating the impact of climate change will be the greatest economic, social, political and security challenge of the 21st Century. This cannot be ignored for the good of America and planet Earth.

Hobbs is very concerned about science and climate change policy and has actively participated in professional society government affairs committee work. He was the lead author in preparing the revised draft of the Geosciences and Energy Policy Statement of the Geological Society of America, which is currently under review and open for comment by the GSA membership.

The GSA Geosciences and Public Policy Committee has worked on an energy policy statement for over ten years without reaching a consensus about reducing carbon emissions and transitioning to renewable energy. Hobbs was able to gain the support of representatives of the fossil fuel producing states for the new draft of the energy policy statement, by including US Energy Information Agency (EIA) projections that show that fossil fuels will still supply as much as 78% of total global energy consumption by 2040. Oil and gas producers have nothing to fear, as every barrel equivalent of proved reserves on company books, every barrel of unproven reserves, and most exploration resources, will be developed and sold through mid-century. The challenge will be in recruiting and training the next generation of geoscientists to find the fossil fuel resources that will continue to power society and provide petrochemicals. We have abundant coal resources, but unless clean coal technologies and carbon capture and sequestration are implemented, the carbon emissions pose a very serious threat to climate change.

Skip Hobbs & Rep. Jim Himes 

Sen. Sheldon Whitehouse & Skip Hobbs in the Senate Reception Hall

In December 2016, Ammonite Managing Partner Skip Hobbs was in Washington for a Council of Scientific Society Presidents (CSSP) conference that addressed the scientific community’s concern over science policy in the incoming Trump Administration. While in Washington, Skip met with Rep. Jim Himes (D, CT) and Sen. Sheldon Whitehouse (D, RI) to discuss government science and climate policy initiatives. The CSSP recommended that President Trump appoint a Science Adviser to the President in the first 100 days of the Administration. After Skip informed Rep. Himes of the concerns and recommendations of the CSSP, Rep. Himes offered to write, and did initiate, a “Dear Colleague” letter from House members to the President urging him to appoint a science adviser. Sen. Whitehouse is the leader of the Senate climate caucus, and has given numerous speeches about climate and environmental issues in the Senate.

As a follow-up to the Council of Scientific Society Presidents meeting in Washington, D.C. in December, Hobbs wrote an editorial entitled “Whither Science in the Trump Administration?” which was published in the New Canaan Advertiser and Lakeville Journal, both local Connecticut newspapers.

Ammonite’s Calgary-based Senior Geoscience consultant Susan Eaton has organized and is leading an expedition to study the shallow marine ecosystems on the Canadian Arctic coast in a most unique way. In July 2016, the all-female SEDNA Expedition will embark on a three-month journey, snorkeling over 3,000 kilometers through Arctic seas from Pond Inlet, Nunavut, to Inuvik, Northwest Territories. The 10 polar “extreme” snorkelers — supported by two mother ships, each equipped with zodiac boats — will create world-wide awareness of rapidly disappearing sea ice, documenting the impacts of global warming on this fragile ecosystem, and on the traditional way of life for the Inuit people of the North.

The expedition’s members include marine scientists, ecologists, geoscientists, photographers, writers, and professional divers. In addition to raising awareness about the impact of global warming in the arctic, the expedition participants hope to be role models for young woman who want to pursue careers in the sciences.

In July 2014 Team SEDNA traveled aboard the 116-foot MV Cape Race, from northern Labrador to Baffin Island and across the Davis Strait to Western Greenland, and then to Iceland, to test their ‘proof-of-concept’, by focusing on team-building and demonstrating that snorkelers — using diver propulsion vehicles — can successfully ‘go the distance’ through ice-infested waters. During snorkel relay trials—in pack ice and ice-bergy bits along the northern Labrador coast, and in the 9,000-foot-deep waters of the Davis Strait— the sea women travelled 35 kilometers in less than 12 hours, demonstrating that the Northwest Passage is firmly within the their grasp. Using mobile touch aquariums and ocean-going robots, Team Sedna delivered its innovative ocean outreach program in Nain, Labrador, bringing the ocean to eye level in this predominantly non-swimming Inuit community. Information about the unique expedition can be found at www.sednaepic.com. Sedna is the Inuit Goddess of the Sea.

Please click below for a video testimonial by Susan Eaton from the Mid-Atlantic Rift at Sifra, Iceland, thanking Ammonite for our modest support.

Silfra Video  – Showing geology in the making.

In anticipation of the United Nations global climate change conference in Paris in December, Ammonite Managing Partner Skip Hobbs has published a paper titled Climate Change Naysayers: It’s Time for A Reality Check. The Future Well-Being of Humanity and Planet Earth Is At Stake! This paper is being widely circulated to policy makers in Washington, conservation organizations, and to fellow geoscientists in the hopes that the United States will develop a comprehensive energy policy which will reduce the nation’s carbon footprint and stimulate the economy. The paper synopsis has been published as a contributed editorial commentary in the New Canaan Advertiser, New Canaan, CT and the Lakeville Journal, Lakeville, CT.  

Synopsis
Mitigating the impact of global warming will be the most significant social, economic, political and security challenge of the 21st Century. Nevertheless, the subject of climate change is  anathema to many conservatives. The topic is simply being ignored or dismissed as “junk science” or a hoax perpetuated by left wing alarmists and academics.

Climate has changed throughout geological time, usually at a scale measured in thousands of years or longer. However, human activity, in particular the production and burning of fossil fuels which releases the warming greenhouse gases (GHG) carbon dioxide, methane and nitrogen dioxide into the atmosphere, is causing changes that are now occurring at a rate and scale that is unprecedented in recent geological history. Increases in regional temperature, particularly in the Arctic; regional drought and more forest fires; rising sea level, ocean acidification, changes in agriculture, changes in atmospheric and oceanic circulatory patterns, and increasing storm intensity and frequency, are all very real and undeniable.

Confirmed climate trends
The National Academies of Science and many other distinguished scientific organizations have confirmed the climate trends that are now occurring, and what is likely to occur as GHG levels continue to rise. The evidence of the past hundred years is not based on some academic’s computer model. Policy makers must not ignore or dismiss the learned opinions of the professional institutions whose members are the experts on climate.

As sea level rises to the point where coastal cities are in serious danger of catastrophic flooding, where and how will the billions of people living on or near global coastlines today be relocated, and at what cost? Where will humanity’s food be grown as temperature increases and drought impact areas that are currently important agricultural centers? The White House Council of Economic Advisors (CEA) released a report in 2014 that estimated the global cost of climate change will reach $150 billion per year, and continue rising as reversing temperature increases becomes more difficult. The financial and social impact of global warming will be devastating if steps are not taken now to reduce GHG emissions.

The Republican Party, for example, simply must face reality and develop comprehensive energy and climate policy positions. Balancing the budget, job creation, health care and immigration are important and manageable political issues for the next election. However, as the potential impact of climate change on our way of life could be so severe, dealing with climate change simply must also be part of the political debate.

Actions to take
A transition from fossil fuels to renewable energy over the next two decades is a major step in the process, as fossil fuels currently account for more than 50% of annual global carbon dioxide emissions. Renewable energy sources cannot compete with cheap coal and petroleum without subsidies until a certain scale is reached. Americans have to adjust to higher fossil fuel and electricity costs. This must be accepted as the tradeoff for mitigation of the potentially devastating impact of global warming. Cheap and abundant fossil fuels helped make America great, but a new energy business model must be adapted for the good of humanity and planet earth. There are now simply too many people emitting far too many greenhouses gases.

Increased subsidies for energy conservation and renewable energy resources, improved public transportation infrastructure, a smart electric grid, a national recycling program, carbon cap and trade, and increased taxes on fossil fuels, will reduce the nation’s carbon footprint, pay for the transition, and create jobs. Our nation’s prosperity will be preserved and enhanced by making the transition to a green economy.
Full Article

Susan R. Eaton at Salisbury Plain in South Georgia which is home to a colony of 300,000 King penguins. Photo Credit: Stephen Henshall, UK

Ammonite’s Calgary-based Senior Geoscience Advisor, Susan Eaton, geologist, geophysicist, journalist and polar explorer, was named by the Royal Canadian Geographical Society’s (the RCGS) as one of Canada’s top modern-day trailblazers. Canada’s 100 best explorers list, published in the June 2015 issue of Canadian Geographic Magazine, was determined with the help of the Fellows of the RCGS. In its selection process, the RCGS looked for world and national firsts, and individuals who have made significant and lasting impacts in their fields.

Canada’s greatest modern-day explorers are astronauts, deep-sea divers and polar adventurers. They’re also paleontologists, historians, conservationists and photographers.
“It’s hard to find one who fits the classic ‘new lands’ definition (think Champlain, Mackenzie, Amundsen or Shackleton),” said the RCGS. “But with every new expedition, adventure, field-research breakthrough, environmental effort and invention, this living generation is questing to better our geographic and scientific knowledge of Canada, Earth and everything beyond.”

“What an incredible honour to rub shoulders with Elon Musk of Tesla Motors, environmental scientist and journalist Dr. David Suzuki, space shuttle astronaut Dr. Roberta Bondar, international space station commander, Chris Hadfiled, and movie-maker and ocean explorer, James Cameron,” said Susan R Eaton, founder and leader of the Sedna Epic Expedition, which is comprised of an international team of female ocean scientists, snorkelers, divers and explorers. In 2017, on Canada’s 150thanniversary, Team Sedna will launch a snorkel relay of the 3,000-kilometre-long Northwest Passage to document disappearing sea ice in the Arctic. “I’m humbled to join the ranks of these preeminent explorers who are pushing limits, and redefining the way Canadians explore new places, peoples and species,” added Eaton.

From the Antarctic to the Arctic, Eaton explores the ocean in the snorkel zone, a unique land-sea-ice-air interface where large animals interact with snorkelers. In July 2014, Eaton led a RCGS-sponsored, ten-woman team on a proof-of-concept snorkel expedition, from Labrador to Greenland. During snorkel relay trials—in pack ice and bergy bits along the northern Labrador coast and in the 9,000-foot-deep waters of the Davis Strait— the sea women travelled 35 kilometers in less than 12 hours, demonstrating that the Northwest Passage is firmly within the their grasp. Using mobile touch aquariums and ocean-going robots, Team Sedna delivered its innovative ocean outreach program in Nain, Labrador, bringing the ocean to eye level in this predominantly non-swimming Inuit community.

David M. Abbott, Jr., P.G.

Ammonite’s Denver-based Senior Minerals Consultant David Abbott is the recipient of the 2015 Ben H. Parker Memorial Medal, the oldest and most distinguish award granted by the American Institute of Professional Geologists (AIPG). The Parker Memorial Medal is awarded to individuals who have long records of distinguished and outstanding service to the profession. Abbott is best known for his Professional Ethics & Practices column in AIPG’s The Professional Geologist that he has been compiling since 1995. Mineral resource and mineral reserve classification systems and their application to real deposits have been at the heart of much of Abbott’s professional career. In addition to his AIPG activities over the years, Abbott has contributed to a number of other US and international professional organizations.

Nick Fedorko, III                           Travis L. Hudson, Ph.D.

Ammonite Managing Partner Skip Hobbs is pleased to announce that Dr. Travis Hudson and Nick Fedorko have become Ammonite consultants, resulting in a significant increase in the firm’s expertise in minerals, coal, aggregates, and natural resource environmental issues.

Travis Hudson is a professional geologist with over 40 years experience in developing, applying, and communicating the geologic understanding needed to address mining, petroleum, environmental, and educational challenges.  Research activities have generated new understanding of regional geology, ore-forming processes, petroleum systems, and Earth’s crustal character.  Mining-related experience has included developing and managing grass-roots exploration programs (tin, tantalum, tungsten, gold, silver, and base metals), prospect drilling evaluations (tin, gold, base metals, and graphite), and extensive mineral deposit characterization.  Petroleum-related experiences include managing geoscience support for production at the Kuparuk River field, Alaska (300,000 BOPD) and managing exploration that discovered the Alpine, Tarn, Fiord, and Kalubik oil fields (Alaska).  Environmental studies initially focused on surficial processes, active faulting, and related earthquake hazards evaluations in Alaska.  Understanding surficial processes also became important to accurately characterizing geochemical base lines for soils and waters regionally and at mining-related sites such as Rico, Colorado.  Accurate geochemical base lines were important to evaluating environmental risk and remediation alternatives for mining-related sites including several Superfund sites in Montana and Utah.  The environmental work at Superfund sites included support for ongoing litigation and negotiations with regulators and principal responsible parties. During his 18 years as Director of Environmental Affairs at the American Geosciences Institute, Travis contributed extensively to public education and outreach focused on explaining Earth Science and its relation to environmental issues.

Travis obtained a BS in Geology from San Jose State University and a MS and PhD in Geology from Stanford University.  He has been a member in good standing of many professional societies and is a registered geologist in the state of Washington.  An extensive publication record demonstrates his ability to provide timely and effective communication of project results (one of his publications is Living with Earth, a college-level environmental geology text published in 2010). His scientific communication experience also includes extensive technical review, editing, and evaluation of the professional contributions of other earth scientists. Travis resides in Sitka, Alaska.

Nick Fedorko is a professional geologist with 39 years of experience in the Appalachian Basin.  He began his career in 1975 with the West Virginia Geological and Economic Survey (WVGES) Coal Resources Study. Fedorko and the other study geologists organized and interpreted all of the data collected from fieldwork and industry and used them to create a series of coal bed maps drawn on USGS 7.5-minute quadrangle map overlays. These maps were then used to calculate original in-place, mined, and remaining coal resources following USGS guidelines. In 1990, Fedorko was named Head of the WVGES Coal Program, serving in that role until 2006.  In addition to the Coal Resources Study, he oversaw cooperative coal work with the USGS such as the Coal Availability Study, the Coal Recoverability Study, other projects aimed at better understanding coal and coal-bearing rocks, and cooperative geologic mapping of 7.5-minute quadrangles in coal-bearing areas. In 1996, Fedorko was instrumental in launching a new and expanded mapping effort at WVGES, called the Coal Bed Mapping Project. This effort embraced Geographic Information System technology to digitally create coal bed maps and calculate resources. These maps are now available on-line.

Retiring from the WVGES in 2006, Fedorko opened Cove Geological Services, a sole proprietorship consulting firm. He clients include coal mining and coalbed methane producing companies which he supports with exploration, geotechnical core logging, mapping, and submittal reviews.  Branching out, Fedorko has identified producible beds for a limestone aggregate producer and aided in an issue concerning insoluble residue in limestone. He has also prepared court documents and appeared in court as an expert witness in cases involving disputes of ownership and value of coal, limestone, and shale.

Nick Fedorko received a B.A. in Geology from Lehigh University and an M.S. in Geology from West Virginia University.  His M.S. thesis melded his interest in coal and paleopedology.  He has authored and co-authored many talks and publications.  He is a member of the Geological Society of America, a Registered Professional Geologist in Pennsylvania (PG001858G), an Adjunct Professor in the Department of Geology and Geography at West Virginia University, and a member of the WVGES STATEMAP Geologic Mapping Panel. Nick lives in Morgantown, West Virginia.

David H. Bodecott

Ammonite Managing Partner Skip Hobbs is pleased to announce that David Bodecott has rejoined Ammonite as International Senior Exploration Advisor in Europe. David is a Consulting Petroleum Geologist and Geophysicist with over 40 years experience, and is the principal of David Bodecott Consulting. He is an expert in global exploration planning, geology and seismic interpretation, with a major focus on the North and South Atlantic conjugate margins, and East Africa. David received a B.Sc. (Honours) in Geology from the University of Hull, England in 1973, and a M.Sc. in Petroleum Geology in 1974 from Imperial College, London. Mr. Bodecott began his career as a geologist with Arco in London from 1974 -75, and was then employed by Gulf Oil Corporation from 1975-81, as Geologist, then Senior Geologist, while living in Gabon, Houston and London, with temporary assignments to Zaire, Indonesia, and Norway. He became an independent consultant in global petroleum geology and seismic interpretation in 1981, and has specialized in asset evaluations, technical audits and deal reviews in much of West and North Africa, Europe, the Mediterranean, South Atlantic, Middle East and Asia.

Dave was a founding partner of Rockhopper Exploration plc in 2004, and led the company’s exploration efforts in discovering the giant Sea Lion Field offshore the Falkland Islands in 2010. In 2013, David resigned his position as Exploration Director of Rockhopper Exploration, and resumed his career as an independent consultant. In 2014 he was appointed a Non-Executive Director of UK AIM-listed Chariot Oil and Gas Limited. Professional affiliations include: Active Member of the American Association of Petroleum Geologists, Member of the Energy Institute (formerly Institute of Petroleum), and Fellow of the Geological Society of London. David resides in Penrith, in the Lake District of England.

Bruce M. Genereaux

Ammonite is pleased to announce that Bruce Genereaux has become associated with the firm to provide expertise in the area of mineral economics. Bruce has over 25 years of global experience providing business, financial, and operational analysis across industrial minerals, precious and base metals, energy and environmental industries. Prior to becoming an independent consultant in 1999, Mr. Genereaux was employed from 1986-1989 by Pluess-Staufer Industries as a resource geologist in industrial minerals. From 1989-1992 he was employed as a mining financial analyst for Cyprus Minerals, Englewood, CO, where he worked on the analysis of major domestic and international acquisitions in coal, iron ore, copper, lead, zinc, soda ash, and industrial minerals; and on mine electric power purchase agreements.  From 1992-1998 Bruce worked for Luzenac America (a RTZ subsidiary) in a managerial capacity in industrial mineral sales, operations, analysis and environmental matters. Mr. Genereaux holds a B.A. degree in Geology (cum laude) from Middlebury College, and a M.S. degree in Mineral Economics from the Colorado School of Mines. He is a member of the Society of Mining Engineers and is a Qualified Person for the preparation of the economic sections of NI 43 -101 reports. Bruce resides in Norwich, Vermont.

As customary, Ammonite held its annual dinner for its consultants, clients and friends on May 20, 2013 during the annual convention of the American Association of Petroleum Geologists in Pittsburgh.  Guests of honor included representatives of senior management and technical staff of CPC Corporation-Taiwan, the Taiwanese National Oil Company, which Ammonite advised on exploration due diligence last October; Dr. Patrick Leahy, Executive Director of the American Geosciences Institute; and Dr. M. Ray Thomasson and Dr. Thomas Ahlbrandt of Thomasson Partner Associates, Denver, Colorado.  The dinner was held in a private room at Cioppino, an upscale Italian restaurant. During the evening, Ammonite’s Senior Exploration Advisor Dr. Robert Merrill provided some intellectual nourishment with a brief after dinner talk about how the skill sets of a petroleum geoscientist can be put to good use in better understanding geothermal reservoirs. His talk was titled “Integrated 3D Modeling of Structural Controls and Permeability Distribution in the Patua Geothermal Field, Hazen, NV.  This paper was based on work Ammonite has done for a geothermal client.  Bob’s presentation was followed by a wonderful talk by Ammonite Senior Geoscience Consultant Susan Eaton about her recent expedition to South Georgia and Antarctica.  Susan showed some of her dramatic photographs of glaciers, mountains and wild life taken during the recent Geological Society of America Expedition to Antarctica. Skip Hobbs, in addition to touching on some of the highlights of Ammonite’s past year, diverged from geoscience a bit, to show guests pictures of his Scottish Highland cows, bee hives and garden – his “other life” as a farmer in Massachusetts.

Susan Eaton (on left) at 63˚24’0” S, 56˚59’0” W near Argentina’s Base Esperanza, Hope Bay, on the West Coast of the Antarctic Peninsula, as Adelie penguins line up to examine the Ammonite banner.

Ammonite’s Senior Geoscience Consultant, Calgary-based Susan Eaton, is also the firm’s “Arctic Explorer-in-Residence”.  Susan participated in the American Geological Society’s Expedition to South Georgia and Antarctica December 29, 2012 – January 19, 2013.  This was her third trip to Antarctica. One hundred intrepid explorers from 15 nations — fifty percent of the group was female — explored the Southern Ocean aboard the MV Akademik Ioffee, a 117-meter-long, Russian ice-strengthened vessel. During the expedition, Susan reported that they  experienced numerous Serengeti moments, witnessing some of the largest concentrations of wildlife on the planet. Organized around the Geological Society of America’s (GSA) 125th anniversary, the expedition featured a world-renowned group of earth science professors from the Jackson School of Geosciences, Stanford University, Pennsylvania State and the Federal University of Rio de Janeiro. Led by Dr. Ian Dalziel, professor of geological sciences at the Jackson School of Geosciences (University of Texas at Austin), the expedition focused on the interplay between geology, geophysics, glaciology, plate tectonics, climate and life. The AAPG Foundation was a sponsor of Susan’s expedition, and her account of the trip is the cover story of the September 2013 edition of the AAPG Explorer magazine. Ammonite Resources was also one of Susan’s sponsors.

Skip Hobbs and Dr. Robert Merrill at the entrance to the offices of CPC Corporation, Taiwan

The week of October 22,  Ammonite’s Bob Merrill and Skip Hobbs travelled to Taipei, Taiwan to present a short course on the due diligence process for international exploration new ventures to the management and staff of the Exploration & Production Business Division of CPC Corporation, Taiwan, the national oil company of Taiwan. The five day visit in Taiwan began with a lecture by Hobbs on global exploration for high risk and high potential plays. Merrill and Hobbs then spent two days lecturing about the geotechnical and business issues of selecting new venture exploration opportunities, establishing a consistent screening methodology, and portfolio optimization. The lectures were illustrated with case studies of companies that have been very successful in the exploration game, and those that have destroyed shareholder value. On the final day in Taiwan, CPC took us to their research laboratory in Miaoli, about a two-hour drive south of Taipei, where we were shown some of CPC’s current exploration activities, looked at core samples from a recent well, and were then taken on a geological and sight-seeing trip into the mountains of central Taiwan. We visited one of Taiwan’s onshore oil and gas fields. Hobbs commented that the visit to Taiwan was one of the most enjoyable business trips of his career due to the graciousness of Ammonite’s Chinese hosts, their interest in what we had to say, and the cultural experience.

One of our many enjoyable cultural experiences in Taipei with the management of the Exploration & Production Business Division of CPC Corporation, Taiwan.

At the CPC Core Laboratory in Miaoli, Taiwan

Our students

Alexandria, VA – The American Geological Institute (AGI) is pleased to announce Mr. G. Warfield “Skip” Hobbs as its new President. He was inducted at the Geological Society of America Annual Meeting in Denver, Colorado in November.

Hobbs, founder and Managing Partner of Ammonite Resources Company, an international energy and mineral resource geotechnical and business consulting firm, received his B.S. in geology from Yale College, and his M.S. in petroleum geology from the Royal School of Mines, Imperial College, University of London.

Before founding Ammonite Resources in 1982, Hobbs was employed as an exploration geologist by Texaco, Inc. in Ecuador, Great Britain, Indonesia and Portugal, and then by the Amerada Hess Corporation in New York. In 2008, Hobbs founded and is the president of Ammonite Nova Scotia Corporation, the operator of two petroleum exploration licenses offshore Eastern Canada.

Hobbs served on the AGI Executive Committee as Member-at-Large from 2004 to 2007. He has also served as President of the American Association of Petroleum Geologists (AAPG) Division of Professional Affairs, and was the 1993-1995 Secretary of the AAPG. He also previously served on the board of directors of the Sierra Madre Foundation for Geological Research, and the Burgess Shale Geoscience Foundation in Field, British Columbia. In 2005, Hobbs was presented with the Honorary Membership Award of the AAPG. He has been a trustee of the New Canaan Nature Center, in his hometown of New Canaan, Connecticut since 2000.

Steve Schamel, Skip Hobbs and Bob Merrill at the headquarters of the Agencia Nacional de Hidrocarburos in Bogota Colombia, January, 2010 

Ammonite was retained in January to advise the Colombian Government Agencia Nacional de Hidrocarburos (ANH) in marketing the Colombian 2010 Open Licensing Round. Ammonite Managing Partner Skip Hobbs, and senior exploration consultants Dr. Robert Merrill and Dr. Stephen Schamel worked during January in Bogota with ANH geotechnical staff, in reviewing the geotechnical data base for all the onshore and offshore basins of Colombia. PowerPoint presentations of the petroleum geology of the mature, emerging, and frontier basins were prepared for the ANH “Road Show” marketing campaign to the international petroleum industry. Ammonite was asked to introduce the technical part of the Road Show with a thirty minute overview and what we believe to be the most attractive aspects of the Colombia 2010 Open Round. Skip Hobbs spoke on behalf of ANH in Calgary on February 4th and in Houston on February 9th. Bob Merrill spoke at the Road Show in London on March 5th. Colombia has excellent exploration and development opportunities for all players – from the small independent to the multi-national oil company.

Skip Hobbs at Burgess Shale Walcott Quarry in Yoho National Park, British Columbia, a United Nations World Heritage site.

Ammonite Managing Partner G. Warfield “Skip” Hobbs was installed on October 19th as President-Elect of the American Geological Institute at the annual meeting of the Geological Society of America in Portland, Oregon. This professional honor follows Skip’s three-year tenure as a board member of the AGI, and earlier position as member society council representative for the American Association of Petroleum Geologists.

The AGI is a federation of 46 geoscience societies representing over 120,000 professional earth scientists, covering such diverse disciplines as hydrology, seismology, geological engineering, paleontology, volcanology, mining and petroleum, soil science, environmental geology, and geoscience education. Founded in 1948, the American Geological Institute has a full-time staff of over 60 at its headquarters in Arlington Virginia, manages a global online database of over 3 million published geosciences citations, develops K-12 school earth science curricula, and coordinates the interests of its member societies for public outreach and government affairs. The AGI also publishes various online and print monthly newsletters, including Earth Magazine. Congress looks to the AGI to identify and bring experts to Washington to provide objective science-based testimony on such legislative issues as clean water resources, geological hazards, soil conservation, sustainable energy and mineral resource extraction; nuclear waste disposal, carbon sequestration, and climate change.

Hobbs will serve as President-Elect from 2009-2010 and then as AGI President from 2010-2011. He is looking forward to playing a key role in national legislative matters concerning the geosciences, and earth science education. Increasing the role of women and minorities in the geosciences will be one of Skip’s management goals.

Skip Hobbs and Bob Merrill on assignment in Kiev, September 2008.

2008 was a tumultuous year for the global petroleum industry, and a busy year for Ammonite Resources. From our “hideout” in the woods of New Canaan, Connecticut, we have advised clients on some very diverse domestic and international assignments.

Client due diligence assignments have taken us physically and virtually from one end of North America to the other, and overseas, to evaluate conventional and unconventional petroleum E&P projects. Domestic projects have been in: the Gulf Coast – both onshore and offshore, the Rockies, Kansas, Appalachians, Cook Inlet and North Slope of Alaska; and South Florida. While our work normally involves the review of offering company prior geotechnical studies, Ammonite’s Dallas-based Dr. Jeffrey Levine prepared over a several month period a comprehensive report on the coalbed methane geology of the Cherokee Basin in Kansas and Oklahoma for a gas utility company client. The study identified areas of maximum resource potential and guided our client in making a $100+MM acquisition.

We have been very active in Canada, looking at conventional, coalbed methane and oil sands projects. Ammonite consultants Dr. Robert Mummery (Calgary) and Dr. Robert Merrill (Houston) evaluated the large Western Canada prospect portfolio of a mid-size Canadian public company as part of the due diligence for a significant PIPE investment. A Monte Carlo analysis was made of the exploration and development portfolio of the company to determine a statistical P10-Pmean-P90 distribution of future reserves and production levels which had not been evaluated by the company’s reserve engineers. Our most interesting Canadian project this year involved an assessment of a steam boiler technology and its applicability and market potential in the oil sands. Calgary-based consultant Susan Eaton conducted the study together with a process engineering firm which Ammonite sub-contracted, on behalf of a buyout firm that was interested in, and did purchase, a large steam boiler manufacturer.

Latin America has been very active for us this past year. Bob Merrill has made multiple trips to Colombia and Brazil to evaluate E&P opportunities there. Skip Hobbs spent a week in Colombia in February, where he was a keynote luncheon speaker and represented the AAPG at a Latin American petroleum conference. His talk was titled “The Future of the Global Oil Industry – the Resources, the Challenges, and the Geoscience Workforce.” Skip has given this speech at a number of conferences, lastly in Halifax in August as the keynote dinner speaker at the Atlantic Conjugate Margins Conference. It is regularly updated – and definitely needs an update now. West Africa, North Sea, Black Sea, Syria, Iraq, Qatar, and Indonesia have also been areas where we looked at acquisition opportunities for Ammonite clients. Our most interesting international project this year was in Ukraine in September. Our client had acquired an operating company in Ukraine, and was considering either making two additional acquisitions to reach an optimum critical mass, or selling their existing asset. Merrill and Hobbs, together with the client’s acquisition VP, spent a week in Kiev and in the Donets Basin in Eastern Ukraine. Conventional wisdom says that the huge tight gas resources in the Paleozoic rocks of the interior basins of Ukraine would be ideal candidates for Western horizontal drilling and fracturing technologies. Maybe so, but we found was that Ukraine is an impossible operating environment for foreign companies due to import restrictions, bureaucratic road blocks, corruption, and myriad other negative factors. We advised our client to exit the country. The photo below is of Bob Merrill and Skip Hobbs in Kiev. The city center and historic district have been restored and are now quite lovely, a big contrast from 1995, when Hobbs first visited Ukraine to look at CBM opportunities.

One of the factors that distinguishes Ammonite from many other consulting firms, is that we are – ever so modestly, perceptive at identifying future energy trends. We were one of the earliest firms in the 1980’s to develop expertise in coalbed methane. We recognized the potential of heavy oil and the oil sands in the 1990’s before the industry became “hot”. Admittedly, we were late on the shale plays, but Ammonite is now very much up to speed in that resource. Texas-based consultant Mary Van der Loop, for example, participated in a multi-basin shale characterization study for a major oil service company (this was not an Ammonite engagement, but gives us some very valuable expertise).

Two new areas for us this year are geothermal energy and carbon sequestration. Dr. Merrill and Skip Hobbs have looked at a number of geothermal projects, and Bob has built a Monte Carlo evaluation program for geothermal prospects. Skip’s advisory work with NYSERDA – the New York State Energy Research and Development, Authority has exposed him to carbon sequestration technologies and site characterization. Several Ammonite consultants (including Hobbs) have recently taken short courses on reservoir characterization for carbon sequestration. It may be a bit early for the commercialization of carbon sequestration, but it is coming, given the political interest in climate change, and President Obama’s commitment to green technologies. Ammonite is now in a position to identify and evaluate potential commercial-scale subsurface carbon sequestration opportunities.

Recognizing the importance of alternate energy resources, this past summer we brought Dr. Jonathan Kwan, P.E. into the Ammonite fold in Houston. He is now our expert on alternate energy resources, including gas-to-liquids. Jonathan’s experience includes some 20 years with Unocal, followed by appointment as University of Oklahoma Director of Natural Gas Engineering and Mewbourne Endowed Chair Professor at the School of Petroleum and Geological Engineering. He returned to industry, working at Anadarko (gas hydrates among other things), and has recently been on a retainer to Shell regarding oil shale recovery technologies.