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Briefs

Briefs

Leviathan Gas Pipeline Partners subsidiary Flextrend Development Co. bought a 100% working interest in the Sunday Silence field from Tatham Offshore Development, a wholly-owned subsidiary of DeepTech International, which was recently acquired by El Paso Energy. The field is contained within four blocks in the Ewing Bank area of the Gulf of Mexico in about 1,500 feet of water. Flextrend has begun drilling of a new delineation well, the third to be drilled in the field. Sunday Silence was discovered in July 1994, and its first delineation well was flow tested in September 1994 at a sustained production rate of 8,700 barrels/d of oil and 5.4 MMcf/d of gas. Sunday Silence has received a royalty abatement from the Minerals Management Service for its first 52.5 million Boe. ElÿPaso Energy, general partner of Leviathan, said the company plans to sell a portion of the field to a development partner as it is not the company's custom to hold a large shares in single E&ampP ventures.

TransCanada del Bajio was awarded a permit to build and operate a system to transport gas from Calamanca, Guanajuato, Mexico, to the capital city of Aquascalientes. Mexico's Energy Regulatory Commission (CRE) awarded the permit to the consortium made up of TransCanada Pipelines Ltd. (95%) and Mexico's Corporacion GUTSA (5%). The project entails construction of a 126-mile network of 12- and 16-inch pipelines with capacity of 90 MMcf/d. TransCanada del Bajio will invest $56.4 million during the first five years of the system's operation. The project is intended to supply gas to the Bajio geographic zone whose distribution permit has been put up for bidding by the CRE. The winner of this permit will be announced by Dec. 17. The TransCanada pipeline will originate at the Valtierrilla station interconnection point with a Pemex Gas y Petroquimica Basica (PBPB) 36-inch diameter pipeline about 4 miles from Salamanca Guanajuato.

Nuevo Energy agreed to sell its East Texas gas assets for $190.6 million to an affiliate of Samson Resources. The East Texas assets accounted for about 275 Bcfe of Nuevo's Jan. 1 proved reserves. The properties are long-lived reserves located mainly in the Oak Hill Field and interests in the Carthage, SE Carthage and Chapel Hill fields, as well as small interests and royalty interests in additional East Texas fields. Proceeds from the sale will be used to eliminate Nuevo's outstanding senior bank debt. Nuevo's cash flow from these assets for the first half of 1998 was about $10 million. Almost all of the reserves sold by Nuevo are gas. In the second quarter, Nuevo gas production averaged 89 MMcf/d. Of that figure, 37 MMcf/d came from the properties that are to be sold.

Illinova Energy Partners, one of the top-30 largest power marketing operations in the nation, grabbed a foothold in the Michigan retail gas and power market with the purchase of EMC Gas Transmission Co., which holds a large chunk of the state's commercial and industrial gas customers. St. Clair Shores, MI-based EMC, formed in 1986, is an energy supply management firm with 15 Bcf/year of retail sales and more than 300 commercial and industrial customers in Michigan and other states in the Midwest.

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