NGI The Weekly Gas Market Report / NGI All News Access

Industry Brief

Industry Brief

Apache Corp. announced a Canadian gas discovery that tested at 31 MMcf/d British Columbia on acreage acquired from Shell Canada late last year. "Proved reserves acquired in the Shell Canada transaction were mainly oil, but the major upside lies in gas exploration on nearly 300,000 net acres and in the staff of highly motivated technical people who joined Apache," said Apache President G. Steven Farris. Apache holds a 37% working interest in the Ladyfern area producer. Murphy Oil, the operator, holds 33% and Beau Canada Exploration has the remaining 30% working interest. "Pressure build-up tests are under way to help in determining the approximate size of this discovery, but it's safe to say it has the potential to be a very large gas field," Farris said. Apache and its partners have under lease more than 25,000 acres in the Ladyfern area and are presently drilling two additional wildcat wells on separate structures. Apache and partners will build an eight-inch-diameter pipeline 15 miles to the Beau Canada pipeline to take Ladyfern gas to Apache's Hamburg gas plant.

Equitable Resources completed the previously announced acquisition of the Appalachian production assets of Statoil Energy for $630 million. The deal makes Equitable by far the largest producer in the Appalachian basin with 2.2 Tcf of proven reserves and 12,600 gas and oil wells. Equitable said the acquisition would be immediately accretive to earnings. "The addition of these assets and resources to Equitable's Appalachian business represent a high-value, low-risk opportunity for improving the overall quality and efficiency of our production assets," said Murry S. Gerber, Equitable's president and CEO. Statoil's production assets are contiguous to Equitable's Appalachian properties and consist of 1.2 Tcf of proven gas reserves and 6,500 natural gas wells in West Virginia, Kentucky, Virginia, Pennsylvania and Ohio.

©Copyright 2000 Intelligence Press, Inc. All rights reserved. The preceding news report may not be republished or redistributed in whole or in part without prior written consent of Intelligence Press, Inc.

ISSN © 2577-9877 | ISSN © 1532-1266
Comments powered by Disqus