Forest Oil Corp. of Denver reported a significant gas discoveryat High Island 116 in the Gulf of Mexico. High Island 116 is 54.75%owned and operated by Forest and 45.25% owned by Louis DreyfusNatural Gas Corp. Initial production from the recently drilled B-2well is expected in November. Forest Oil is engaged in theacquisition, exploration, development, production and marketing ofgas and crude oil in North America. Forest’s principal reserves andproducing properties are in the United States in the Gulf ofMexico, Louisiana, Texas and Wyoming and in Canada in Alberta andthe Northwest Territories.

Tom Brown Inc. of Denver formed Canadian subsidiary Tom BrownResources Ltd. to seek opportunities in Canada to complement itsposition in the Rocky Mountains. Amar Pandila has been hired asvice president and general manager of Tom Brown Resources Ltd. andwill be headquartered in Calgary, Alberta. Pandila, who maintainsdual citizenship in Canada and the United States, has spent most ofhis career in Calgary with companies including Texaco, Norcen andEnron Oil and Gas Co. Most recently he was exploration manager forEnron Oil and Gas’ Midland Division.

CMS Energy Corp.’s oil and gas exploration and production unit,CMS Oil and Gas, revealed a significant natural gas discovery lastweek in its Garrett 1701H exploratory well in Midland County, TX.The well flowed at a rate of 5.7 MMcf/d and approximately 200barrels of condensate per day. It was drilled vertically to a depthof approximately 11,560 feet and horizontally a distance ofapproximately 5,900 feet. The well is expected to commenceproduction immediately. A development well program for thereservoir, which is part of the Devonian formation, has begun. CMSOil and Gas Company holds a 100% working interest in this well andin approximately 16,000 gross acres (approximately 11,000 netacres) of oil and gas leases in the general area of the discoverywell.

Fall River (MA) Gas Co. disclosed its receipt of an unsolicitedstock-for-stock offer worth $23.50 per share. The board ofdirectors declined the offer as it was not viewed to be in the bestinterest of the Company’s stockholders.

Noble Affiliates Inc. of Ardmore, OK, said wholly ownedsubsidiaries Samedan Oil Corp. and Energy Development Corp. agreedto sell various non-strategic properties. Total sale proceeds are$49.6 million, of which $16.4 million has been received. Theremaining $33.3 million will be received upon closing of the salesof the remaining properties in October. Noble estimates the provedreserves of sold properties at about 10.2 million boe. Currentdaily production is about 1,860 barrels of oil and 17 MMcf of gas.The properties are in Louisiana, Oklahoma, California, New Mexico,Wyoming and Texas. Noble Affiliates is an independent withexploration and production operations throughout major basins inthe United States, including the Gulf of Mexico, as well asinternational operations primarily in Argentina, China, Ecuador,Equatorial Guinea, the Mediterranean and the North Sea.

Transportation Notes

NOVA expected to complete inspections of the ClearwaterCompressor Station Friday evening, saying it would lift Receipt ITrestrictions in Segments 1-5, 7, 8, 24 and part of 18 at that time.

NGPL will perform maintenance Nov. 1-12 at its interconnect withFlorida Gas Transmission in Vermilion Parish, LA. No nominations atthe delivery point will be confirmed during that period, NGPL said.

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