Houston-based Michael Petroleum Corp. said it invested $1.5million in a venture to participate in the drilling of 38 naturalgas wells for Pemex in the Burgos Basin in Northern Mexico. MichaelFarmar, Michael Petroleum president, said the project has drillednine gas wells to date and anticipates drilling the remaining 29wells before Dec. 31, 1999.

“The economy in Mexico is booming, and there is a growing demandfor energy,” said Farmar. “We see this as a strategic move thatwill hopefully lead to additional projects in Mexico.”

Pemex, Mexico’s state-owned oil company, let the contract toConstrucciones Protexa, S.A. de C.V., the largest constructioncompany in Mexico, which has a joint venture with Dallas-based AviaEnergy Development to develop the project. Protexa holds a 51%interest in the joint venture, and Avia holds 49%. MichaelPetroleum has the option to earn one-half of Avia. In addition tothe $1.5 million investment, Michael Petroleum acted to provide theoperations manager for the project.

“The field contains more than a trillion cubic feet of gas, andit is quite similar in geology and drilling techniques to the LoboTrend in South Texas where we have been successfully operating forover 12 years.” Vendors involved in the project include BJ ServicesCompany, Computalog LTD and Norton Drilling Co. Financing for theproject is supported in part by the U.S. EXIM Bank. MichaelPetroleum is a privately held natural gas development operatingprincipally in the Lobo Trend of South Texas.

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