Comstock Resources Inc. said 2014 proved oil and natural gas reserves increased year/year to 620.4 Bcfe from 585 Bcfe, which included 495 Bcf and 20.9 million bbl, 68% proved developed. The present value of the reserves, using a 10% discount or PV-10, was $1.1 billion, using average 2014 prices of $3.96/Mcf and $92.55/bbl. The Frisco, TX-based independent's output in 2014 averaged 180 MMcfe/d. Oil production comprised 39% of total output, versus 20% in 2013. Oil production rose 86% year/year to 4.3 million bbl; gas output fell 29% to 39.8 Bcfe. The Eagle Ford Shale contributed 5.1 million bbl and 5 Bcf, or 5.9 million boe to reserves. The Haynesville Shale and other regions added 74 Bcf in 2014. Finding costs for 2014 were estimated at $28.75/boe. Comstock has restarted Haynesville development in response to low oil prices (see Shale Daily, Dec. 18, 2014).
The Federal Energy Regulatory Commission was forced to briefly recess its business meeting in Washington, DC, Thursday morning after protesters repeatedly interrupted Chairman Cheryl LaFleur. The protesters addressed multiple topics, including federal government subsidies for fossil fuels, climate change and FERC's role in pipeline permitting. After a five-minute break to clear the room, commissioners restarted the meeting without incident. "This is relatively new territory for FERC, and I think we're a bit learning on the job how to handle situations like that," LaFleur said.
Enterprise Products Partners LP has received shipper commitments that are sufficient to support expansion of the Panola Pipeline Co. LLC natural gas liquids (NGL) system, the partnership said Thursday. The 181-mile system originates near Carthage, TX, and extends to Mont Belvieu, TX, where it serves multiple destination points, including facilities owned and operated by Enterprise. Enterprise plans to install 60 miles of new pipeline, as well as pumps and other related equipment designed to increase system capacity by 50,000 b/d. The incremental capacity is expected to be available in the first quarter of 2016. "For Haynesville and Cotton Valley producers, expansion of the Panola Pipeline will facilitate continued development of their reserves by providing valuable NGL takeaway capacity for their growing production of liquids-rich natural gas in East Texas and Northwest Louisiana," said Jim Teague, COO of Enterprise's general partner.
Matheson Tri-Gas Inc.is relocating and expanding an industrial gases facility in Lake Charles, LA, to the Westlake, LA, area in order to take advantage of a planned multibillion-dollar petrochemical complex. The company said it would build a state-of-the-art air separation unit to supply industrial gases to Sasol Ltd. and Matheson's existing customers. Sasol in October announced a final investment decision for an $8.1 billion petrochemical complex consisting of an ethane cracker and six chemical plants (see Daily GPI, Oct. 27, 2014). Matheson struck an agreement to build, own and operate the air separation unit and pipeline complex serving Sasol, with cryogenic technology to be supplied by Matheson parent Taiyo Nippon Sanso Corp. The project is expected to be finished in 2016.
A proposal to drill more wells at a site producing for more than 50 years in south-central Los Angeles has been dropped by Freeport-McMoRan Inc. in response to the recent decline in global oil prices, the operator said. Although the plans were canceled, community activists told the Los Angeles Times that they would continue to seek action for the producer's alleged violations at the well site, including that the well sprayed oil droplets over a nearby apartment building and parked cars.
Noble Energy Inc. said an exploratory well drilled in the offshore Gulf of Mexico did not encounter commercial hydrocarbons. The company said the Madison well, which targeted the Upper and Middle Miocene formations, was drilled to a total depth of 16,859 feet from Mississippi Canyon Block 479. The well has since been plugged and abandoned, and the drilling rig released. Noble operated the well and had a 60% working interest (WI), while Stone Energy Offshore LLC held the remaining 40% WI.
Louisiana's Port of Lake Charles and the Panama Canal Authority have agreed to cooperate on marketing and other initiatives to attract liquefied natural gas (LNG) business. The canal is being expanded to accommodate the wider beams of LNG carriers; the canal is currently too narrow to allow their transit. The canal authority recently announced the rates it plans to charge LNG carriers as well as other shippers using the canal (see Daily GPI, Jan. 9). According to the canal authority, its agreement with the Port of Lake Charles will promote cooperation in marketing activities, information exchange, market research, training and technology, as well as other initiatives.
Cheniere Energy Inc. made a note purchase agreement with EIG Management Co. LLC for the previously announced financing from investment funds managed by EIG. The funds will purchase $1.5 billion of convertible notes with proceeds to be used as equity to fund a portion of the costs of developing, constructing and placing into service the Corpus Christi Liquefaction Project in Texas. The project is being designed for up to three liquefaction trains with an expected aggregate annual production capacity of 13.5 million tonnes per annum of liquefied natural gas (see Daily GPI, Dec. 31, 2014). The financing is scheduled to close once Cheniere reaches a positive final investment decision on the project, which is expected in the first half of 2015.