Murphy Oil said it has commenced production from its Medusa field in Mississippi Canyon Blocks 538 and 582. Medusa is located in 2,200 feet of water and consists of a spar facility capable of handling 40,000 b/d of crude oil and 110 MMcf/d of gas. Murphy is the operator of the field and holds a 60% interest with partners Eni Petroleum (25%) and Callon Petroleum (15%). Medusa has reserves of 140 million boe and is expected to reach peak production of 36,000 b/d of oil and 40 MMcf/d of gas.

Petro-Canada’s board approved a C$2 595 million capital and exploration expenditure budget for 2004. The company will invest $495 million in its North American natural gas business. About $460 million will be spent on existing opportunities in Western Canada, while about $35 million will be spent in Alaska and the Mackenzie Delta/Corridor to assess future opportunities. On the East Coast, the Company expects to invest $325 million. The on- going development and drilling at Hibernia and Terra Nova are expected to require $140 million. Development costs for the White Rose project will be approximately $180 million. Oil Sands investments are expected to be $320 million. Spending on existing operations of $305 million will be dedicated to the Company’s share of Syncrude’s Stage-3 expansion, sustaining capital for both Syncrude and the MacKay River bitumen project and delineation of future bitumen resources. Internationally, the Company will spend a total of $640 million, of which $240 million will be spent on existing operations, while $400 million will be invested in new developments and exploration. In 2004, Petro-Canada’s exploration expense is expected to be $285 million, $150 million in North America and $135 million Internationally.

Closing its previously announced acquisition on schedule (see Daily GPI, Nov. 19), Calgary-based Bonavista Energy Trust said the C$275 million acquisition of properties from Taurus Exploration will increase its production by 22% to 42,800 boe/d. The assets acquired are located adjacent to Bonavista’s existing properties in the Peace River Arch, Central and Eastern Alberta Core Areas. Current production from the assets is approximately 7,800 boe/d, including 30 MMcf/d of natural gas and 2,800 b/d of light 37 degrees API oil and liquids. The acquisition also includes approximately 252,000 net acres of highly prospective and concentrated undeveloped land with over 16,000 kms of 2D and over 200 square kms of 3D seismic data covering these lands. Bonavista Energy Trust is a natural gas weighted energy trust created through the re-organization of Bonavista Petroleum Ltd. on July 2, 2003.

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