Houston’s 3TEC Energy Corp. yesterday announced successfuldrilling results in St. Mary Parish, LA. The Amy Aycock No. 1 wellin the Garden City Field was drilled to a true vertical depth of15,033 feet, with 18 feet of net pay in the Operc 10 formation. Theoperation is expected to be completed by the end of this month.3TEC is the well operator, and it has a 75% working interest in thoperation. The well is the first in a series of 3-D seismicallydefined prospects expected to be drilled in the next year.

Mexico is auctioning off a license to add 100 MW of capacity toa geothermal plant in the western state of Michoacan, according toMexico’s Federal Electricity Commission (CFE). CFE said that it hascalled for private bids to double the capacity of the Los Azufresfacility, which currently has a capacity of 93 MW. The winner ofthe bid will determine the winner later this year. According toCFE, the expansion would begin in 2001 and cost about US$101million, with the expanded plant coming online in 2001. The Mexicangovernment has controlled the electricity industry since it wasnationalized in 1960, however in recent years, it has allowedprivate companies to build and operate power plants in exchange forinvestment.

Utilipro, a provider of back-office services for the energymarket, and UtilConnect, an Internet-based application serviceprovider, announced that they have formed a strategic partnershipto offer end-to-end transaction processing. Utilipro, based inAtlanta, offers customer management services including enrollment,billing, a call center, as well as consultation services.UtiliConnect focuses on Internet technologies which includemetering, real-time billing, self-service systems, and customerrelationship management. The companies hope that this partnershipwill create the lowest cost e-business strategic advantage to theenergy marketplace. “We are pleased that this partnership canpresent the lowest transaction cost advantage to our clientele.Utilipro has a lot of experience in serving the California,Georgia, Pennsylvania and New Jersey marketplaces. The combinationof their experience and scale combined with our Internet-nativetechnology and cross-industry background will give the energyindustry the cost advantage that has been missing,” said UdayKarra, chairman of UtilConnect. Utilipro currently does business inGA, NE, CA, NJ, and PA markets and UtilConnect serves clients inPA, GA, and TX.

GRI and the Institute of Gas Technology (IGT) named theirrecently merged organizations the Gas Technology Institute (GTI)yesterday and formed a senior management team led by John F.Riordan, president and CEO. The research groups announced theirmerger in April, saying it was mainly an effort to reduceoverlapping dues paid by their members and to combine the variousstrengths of the two entities. “Our focus is still on technologyrelated to finding, delivering and using natural gas,” saidRiordan. “But we are now a broader and deeper ‘one-stop’ technologyorganization, able to help a wider range of customers meet theirtechnology needs.” GTI will continue to manage a cooperativeR&D program for the gas industry through 2004, using fundsauthorized by the Federal Energy Regulatory Commission. On June 1,the company filed its application for a $70 million program in 2001with the FERC. Final review of the application is expected inOctober. At the same time, Riordan pointed out, GTI is also workingto develop new business with individual companies and otherorganizations ready to invest in projects, products and servicesdesigned to meet their business objectives.

Cambridge Energy Corp. said it is in the process of buyingsubstantial gas and oil reserves in Louisiana from an undisclosedseller. The oil and gas production and development company, whichfocuses on Louisiana and Indonesia, said it entered intonegotiations to acquire 700 acres of producing land in SouthLouisiana with 57 Bcf of recoverable gas and 1.3 million barrels ofoil and condensate reserves. Terms of the potential purchase werenot disclosed. The breakdown on reserves consists of 13 Bcf and80,000 bbl of proven reserves, 14 Bcf and 1 million bbl of probablereserves, and 30 Bcf and 220,000 bbl of exploratory reserves. “Thecompany is aggressively moving forward with our strategy ofacquiring proven reserves with strong additional potential,” saidCEO Perry West. “These acquisition negotiations demonstrate ourcontinued commitment to increase the flow of revenues, profits andvalue to our shareholders.” To date, the company has acquiredproperties in Louisiana and Indonesia with proven oil reserves of16.8-17.8 million barrels and 50-60 Bcf of gas reserves.

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