Sable Rig Spuds First Production Well
Mobil said the Santa Fe Galaxy II jackup drilling rig has
spudded its first production well at the Sable Offshore Energy
Project (SOEP). The Galaxy II joins the Rowan Gorilla II rig, which
has been drilling in the area since June. Construction on the $1.3
billion SOEP (Mobil share 50.8%), which began in January, is now
well over one-third completed and on schedule to deliver gas to
market by November 1999.
Sable gas will be delivered to the Maritime provinces in Canada
and to markets in the Northeastern United States via the Maritimes
and Northeast Pipeline (M&NP), a 600-mile line currently under
construction. Approval to proceed with Phase II of M&NP was
recently granted by the Maine Board of Environmental Protection.
Mobil has already sold almost 40% of its share of Sable gas and
is seeking to increase gas production and sales from its acreage
offshore Nova Scotia. As part of this effort, Mobil Canada is
expanding its exploration position in the area and was recently
awarded a 254,400-acre oil and gas exploration license (Mobil share
50%) on the promising Banquereau Bank area off Cape Breton, NS.
The license builds upon the 3.4 million-acre exploration
position Mobil already holds offshore Nova Scotia. The Banquereau
property is immediately adjacent to property already held by Mobil
in the Laurentian Basin, an area between the Canadian provinces of
Nova Scotia and Newfoundland.
Mobil has the largest energy portfolio in the Eastern Canada
offshore oil and gas industry and leads in significant discoveries,
reserves, production and active developments.
Joe Fisher, Houston
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