Pioneer Natural Resources Alaska Inc., Doyon Drilling Inc. and Akita Drilling Ltd. signed a four-year contract to build and operate a rig to perform exploratory drilling services on the North Slope of Alaska. The rig will be built in Canada during the summer of 2005 and operated beginning in 2006 by the newly formed Joint Venture-Doyon Akita J.V. This is a long term drilling contract for a new rig on the North Slope of Alaska.

Pogo Producing Co. said it discovered commercial accumulations of hydrocarbons in its 100%-owned Ewing Bank Block 948 on the Outer Continental Shelf (OCS). The 948 No. 1 well, which is located in 725 feet of water, confirmed 100 feet of net natural gas and condensate pay. A subsea completion will be utilized, taking production to a nearby host platform by the first half of 2006. The discovery leaves two more wells to be drilled in Pogo’s previously announced six-pack of exploratory wells. In South Texas, Pogo completed flow-testing a new exploratory well, the No.1 Hoffman 116, in Duval County. The 15,300-foot deep well tested at a rate of 3.7 MMcf/d. A second Wilcox interval tested at 5.5 MMcf/d. Production equipment is being ordered that will allow the well to produce at rates of up to 10 MMcf/d. The two gas reservoirs are expected to be commingled in order to put the well on production within about 90 days. Pogo’s partners in the well include, among others, LMP Exploration Holdings LP, with a 34% working interest.

ATP Oil & Gas Corp. Monday announced 2004 production of 22.4 Bcfe, including Gulf of Mexico production of 17.9 Bcfe (74% natural gas) with the rest coming from the North Sea. ATP also announced year-end proved reserves of 275 Bcfe, but said it does not include five blocks acquired in 2004 in the Gulf of Mexico, nor its Cheviot prospect in the North Sea, which is potentially the largest property in its portfolio. Upon completion of its development plans, ATP plans to record proved reserves associated with these properties. In 2004, ATP elected to sell an undivided 25% interest in seven properties on 10 blocks in the Gulf, reducing its proved reserves by 10.6 Bcfe of which 93.5% were classified as proved undeveloped at the time of the sale. After adjusting for production and the sale of the interest in the seven properties, ATP recorded a net upward revision in proved reserves during 2004 of 5.5 Bcfe.

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