Gastar Exploration, Ltd., in conjunction with First Source Texas Inc. (FST), has entered into an agreement with an undisclosed private industry participant to acquire a 75% interest in approximately 9,100 gross acres (6,500 net acres) that lie immediately adjacent to and nearby Gastar’s existing East Texas Deep Bossier acreage. Assuming that Gastar’s and FST’s existing partners in the Deep Bossier play exercise their rights to a proportionate share of these leases, Gastar is expected to hold a 45% working interest position in these additional leases. With the addition of these leases, Gastar, FST and their minority partners will control a total of approximately 22,200 gross seismically controlled acres in the East Texas Deep Bossier play. The terms of the agreement called for Gastar, FST and their partners to make an initial payment of $800,000 and a subsequent final payment of $800,000 on or before Aug. 15, 2004. “The addition of this acreage, which Gastar believes significantly enhances our position in the Deep Bossier play, is another direct consequence of the positive results achieved from Gastar’s initial Deep Bossier well, the Belin Trust A-1 well,” said J. Russell Porter, Gastar’s COO.

Calgary-based Taylor NGL Ltd Partnership said Thursday that it has completed the previously announced acquisition of three interconnected natural gas processing facilities and related gathering systems in the Lethbridge area of southern Alberta for C$30.5 million. The acquired facilities include the Retlaw Gas Plant, the Enchant Gas Plant and the Turin Gas Plant, which are known collectively as the RET Complex. The facilities add a net 104 MMcf/d of sweet and sour gas processing capability to the Partnership. The RET Complex is supported by over 500 kilometers of natural gas gathering pipelines that provide coverage over an area in excess of 2,500 square kilometers. Currently, there are approximately 42 producers, with production from almost 900 wells, processing natural gas through the RET Complex.

Fortuna Energy Inc. has drilled two successful Black River gas wells in the Appalachia, the first two operated wells of its recently acquired New York properties. The Talisman Energy Inc. subsidiary said the first well, Fortuna Ganung Hz, tested a non-producing structure in Schuyler County. Despite some operational problems, the well still tested at rates up to 2.4 MMcf/d, and plans are under way to tie the well into a local gathering system. The second well, Fortuna Konstantinedes Hz, was drilled in Chemung County. After completion, the well flowed at rates up to 10.4 MMcf/d and is currently shut-in for a pressure buildup test. Work is under way to have the well tied into the Columbia high-pressure transmission system by the end of the year. The third well, Hepfner, is currently drilling. Two additional rigs also are being mobilized, and a fourth well is expected to spud in September and another in mid-October. Additional projects under way include the installation of three compressors, all expected to be on stream by year’s end and the tie-in of the Fortuna Pace well, which should be on stream in early 2004 at a rate of 5 MMcf/d. Fortuna’s production in July was 67 MMcf/d, and it plans to spend US$46 million in the area in 2003, drilling eight wells.

ATP Oil & Gas Corp. has acquired Mississippi Canyon 711, an oil and gas discovery previously named Gomez. ATP reported that it has acquired 99% of the working interest and is the operator of the oil and gas development with proved reserves located in approximately 3,000 feet of water in the Outer Continental Shelf of the Gulf of Mexico. The initial discovery well was drilled in 1997 by a company subsequently acquired by Anadarko Petroleum. In 2000, the discovery was confirmed by the MC 711 Well No. 4 and Well No. 4 ST. 1, which encountered 125 feet of oil and gas pay in a Lower Pliocene sand interval. ATP said it is currently evaluating the property, and expects to use a similar development plan to the one it used to successfully put on production its current deepwater project named Ladybug at Garden Banks 409. “With the Gomez acquisition of proved reserves, ATP continues its strategic growth in the Gulf of Mexico both on the shelf and in the deeper waters. ATP continues to use innovative deepwater subsea technologies to advance development opportunities both in the Gulf of Mexico and in the North Sea,” stated T. Paul Bulmahn, president of ATP.

Edge Petroleum Corp., whose gas-rich operations up to now have been centered on the onshore Gulf Coast and northern Rocky Mountains, has expanded its focus with an agreement to explore an area of southeastern New Mexico’s Permian Basin with partners Pure Energy Group and Chisos Ltd. The area of mutual interest (AMI) agreement covers all of Eddy and Lea counties, as well as a portion of southern Chaves County, where Pure and Chisos own approximately 47,000 gross (27,000 net) acres. Edge, based in Houston, will act as operator and earn, subject to fulfillment of certain obligations, an undivided 50% working interest and a 37.5% net revenue interest, proportionately reduced, in all acreage owned in the AMI. In return, Edge will pay a fee of $2.7 million, which includes $1 million at closing and the balance in 17 equal monthly installments. Along with the fee, Edge also has committed to drilling four Grayburg/San Andres and six Atoka/Morrow wells within a 12-month period. In addition to the fee, Edge will carry Pure and Chisos for certain costs in the obligation wells. All subsequent wells, new leasehold acreage and any other acquisitions will be done on a pro rata basis by all parties.

Piedmont Natural Gas said the Securities and Exchange Commission (SEC) approved its requested exemption under the Public Utility Holding Company Act in connection with the pending purchase of North Carolina Natural Gas Corp. (NCNG) and 50% of Eastern North Carolina Natural Gas (ENCNG) from Progress Energy, Inc. With the ruling in hand, Charlotte, NC-based Piedmont said it expects the transaction to close on Sept. 30. In October 2002, Piedmont Natural Gas had announced its plans to purchase NCNG for $417.5 million (see NGI, Oct. 21, 2002). NCNG serves 178,000 natural gas customers in eastern and southern North Carolina, including 56,000 customers served by municipalities that are wholesale customers of NCNG. The purchase of NCNG will increase Piedmont’s number of customers served to more than 918,000 in North Carolina, South Carolina and Tennessee. Piedmont is also purchasing Progress Energy’s equity interest in ENCNG for $7.5 million. ENCNG is a joint venture between Progress Energy and Albemarle Pamlico Economic Development Corp., which brings natural gas service to 14 counties in eastern North Carolina. Earlier in October 2002, Piedmont completed its purchase of North Carolina Gas Service (NCGS), the North Carolina gas distribution division of NUI Corp. (see NGI, Oct. 7, 2002). NCGS serves customers in Rockingham and Stokes counties, contiguous to Piedmont’s existing service territory.

©Copyright 2003 Intelligence Press Inc. Allrights reserved. The preceding news report may not be republishedor redistributed, in whole or in part, in any form, without priorwritten consent of Intelligence Press, Inc.