ExxonMobil Corp. is selling three packages of operated and nonoperated properties in the Gulf of Mexico that currently produce 7 MMcf/d of natural gas and 2,900 b/d of liquids, or 4,066 boe/d, The Oil & Gas Asset Clearinghouse LLC said. The packages includes 61 producing wells and 17 shut-in wells, as well as seven platforms in three field areas. Net monthly cash flow is estimated at $4 million. The Mississippi Canyon 281 prospect, which ExxonMobil operates, has an estimated 100-300 million bbl. Also operated by the producer and for sale are Eugene Island 330 and Green Canyon 19/60. In addition, Eugene Island 314/315, a nonoperated block, is for sale. The data room is to open in late November, with bids due by Dec. 21. For information contact Heather Adamson at (832) 601-7679 or Cory Talash at (832) 601-7685.

A Barnett Shale well operated by Chesapeake Energy Corp. produced on average 17.824 MMcf/d for the month of September, surpassing any of the 14,000-plus wells drilled to date in the North Texas play. The White South No. 1 H well is in Tarrant County near Arlington. Chesapeake, which did not release any revenue figures, also did not add too much to the hoopla. Based on a hypothetical gas price of $4/Mcf, gross revenue from the well would have yielded an average of $71,296/day, or about $2.1 million for September. According to Chesapeake, the well cost about $3.5 million to drill and complete. Because of current gas prices, the Oklahoma City-based producer said it has reduced production on the monster well to about 4 MMcf/d. Eight wells have been drilled to date on the White South pad site; three more wells are planned there, according to Chesapeake. The White A2H, A4H and B5H are expected to ramp up in February.

Chief Oil & Gas LLC, which in 2005 was the second largest natural gas producer in the Barnett Shale, is showing it can do the same in the Marcellus Shale, reporting that output in Pennsylvania has reached the 100 MMcfe/d mark from 42 wells. The private Dallas operator, which now holds more than 600,000 gross acres in Pennsylvania, West Virginia and Maryland, is forecasting that its exit rate this year from the Marcellus play will be 115 MMcfe/d. Seven rigs are expected to be drilling at year’s end, up from three at the start of 2010. Twenty wells are being drilled or remain to be drilled this year.

Gastar Exploration Ltd. is buying 59,000 net acres in the West Virginia portion of Marcellus Shale that includes a 41-mile gathering system, a salt water disposal well and seven producing conventional wells with current output of about 500 Mcf/d. The seller and financial details were not disclosed; the transaction is set to close by mid-December. Gastar has a joint venture (JV) agreement with South Korean investment firm Atinum Partners Co. to develop acreage in West Virginia and Pennsylvania (see NGI, Sept. 27).

Michiganians will enjoy lower gas prices this winter, according to the latest annual “Michigan Energy Appraisal: Winter 2010-2011,” released by the Michigan Public Service Commission (MPSC). Gas sales in Michigan for 2010 are projected to see a 6% increase over 2009. Unlike recent years, the bulk of the natural gas demand increase can be attributed to the industrial and electric generation sectors, which should see 15% and 34% increases, respectively. Gas storage levels are projected to be sufficient to meet demand this winter. Gas prices are expected to average $9.96/Mcf this winter, a 4% decrease, though prices could vary based on market conditions and pending rate cases, MPSC said.

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