Amoco announced a gas discovery in the Cotton Valley Reef Trendnorth of Houston. The company said it expects to bring its No. 1 J.W. Vanderbeek on production this month. Amoco holds a strongposition in the Cotton Valley Reef Trend, with drilling rights inmore than 100,000 acres, primarily in Leon County. Amoco has acontract with Koch Midstream Services to use their pipelines in thearea to gather the gas for treatment and delivery to marketsthroughout the Texas Gulf Coast region.

“We have one drilling rig active in the Cotton Valley play andwe’ve identified other properties we intend to evaluate,” said EdWilliamson, vice president of Amoco’s central business unit.”Without the expertise we’ve developed through years of drilling,combined with our team-efforts, the cost of finding such reserveswould be prohibitive. We’ve found ways to make it profitable.”

Amoco is the operator and owns approximately a 55% workinginterest in the well, with its partners Spirit Energy 76 andKaiser-Francis Oil holding the remaining interest.

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