Once considered a problem in their oil exploration efforts, thehigh cost of natural gas is getting another look-see from EmpireEnergy. The Overland Park, KS-based producer said it would beginselling its natural gas reserves — which it used to squeeze off— from the Upper Cumberland Plateau region of north-centralTennessee once a natural gas pipeline is completed there.

Coastal Hydrocarbons LLC has begun laying a 4-inch line into thearea and is expected to begin accepting gas in two to three months,Empire said. Pryor Oil Co., which holds a 40% interest in anexploration project with 60% partner Empire, is now evaluating andhigh-grading program leases to determine what wells to put into thenatural gas sales line.

“Gas has been a hindrance in our exploration and production inthat region due to the complexities it presents during drilling,”said Bryan S. Ferguson, Empire COO. “Previously, we didn’t have amarket in which to sell the gas so while we drilled oil wells, weeither squeezed the gas off or held it in formation. With gasprices up and the market demand present, we feel fortunate to nowbe able to put these assets to work for us.”

Because of the fractured nature of the geology in the region,Empire said it was difficult to estimate the total gas reservespresent. However, every well drilled so far has had an “abundant”amount of natural gas.

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