ChevronTexaco Corp. said partners in the Angola liquefied natural gas (LNG) project have awarded front-end engineering design (FEED) contracts for a five million-tonne-per-year onshore LNG plant near Soyo in northern Angola. The FEED contract were awarded to Overseas Bechtel Inc. and a joint consortium of Kellogg Brown & Root Inc., JGC Corporation, and Technip U.S.A. Corp. A 15-month program is set to begin immediately. Following the completion of FEED and a final investment decision, it is expected that one of the two contractor groups will be selected to perform engineering, procurement, construction and commissioning (EPCC) activities for the project. "Angola LNG is one of several current ChevronTexaco-led projects to commercialize natural gas resources in Africa and other parts of the world and is integral to the company's strategy to grow an integrated natural gas business," said John Watson, president of ChevronTexaco Overseas Petroleum. The project is set to be a joint development between the state oil company of Angola, Sonangol (22.8%), and local affiliates of ChevronTexaco (36.4%), ExxonMobil (13.6%), Total (13.6%) and BP (13.6%).
Focusing its first quarter efforts in South Texas and Southeast New Mexico, Houston-based Edge Petroleum Corp. said Wednesday that it achieved record production, reporting 4.2 Bcfe, or about 46.7 MMcfe/d. The output is 35% higher than 1Q2004 and 31% higher sequentially from 4Q2004. Of the total output, 76% was natural gas, 12% natural gas liquids and 12% oil and condensate. Edge's production exit rate at March 31 was 46.3 MMcfe/d. Edge drilled and logged six wells in 1Q2005, all of which were successful, the company said. Edge currently has four wells drilling and has plans to spud another 12 to 17 wells during the second quarter.
Houston-based New Century Energy Corp. said Wednesday that a study prepared for the company by an independent engineering firm reported that New Century has total proved reserves of 99,000 bbl of oil and 1.03 Bcf of gas. Additionally, the independent study evaluated possible undeveloped gas reserves on the company's acreage in Matagorda County, TX. The results indicate possible reserves of 8.8 Bcf to the company's interest.
Spindletop Oil & Gas Co. said it has completed two new gas wells in the Newark, East (Barnett Shale) gas field of North Texas. The Olex U.S. No. 4 well was completed on Jan. 20 with an initial potential of 1,184 Mcf/d of gas and 46 b/d of oil and was placed on production on Jan. 23. The Olex U.S. No. 3 well went into production on March 28 with an initial rate of 800 Mcf/d.
Junior independent Corridor Resources Inc., headquartered in Halifax, has begun drilling operations at the McCully C-67 well, which is located on the western side of the McCully natural gas field in south central New Brunswick. The McCully field is estimated to hold more than 1 Tcf of gas in place in the Hiram Brook formation. Corridor's well will be drilled to a total depth of 2,325 meters to the base of the Hiram Brook formation and is part of a multi-well drilling program designed to prove up additional natural gas reserves and production capacity. It is expected that it will take 30 days to drill and complete the well. Once completed, Corridor intends to connect the McCully field by pipeline to the Maritimes & Northeast pipeline system. Gastar Exploration Ltd. Geostar Corp.
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