Houston-based Vector Energy Corp. recently completed the testing of three wells at its Mustang Island Block 818-L off of the Texas Gulf Coast. The wells tested at a combined rate of 1.6 MMcf/d. The company reported that there are still three wells on the location that need to be tested. “I am excited that finally we have test results from these wells that substantiate the proven reserves we have always anticipated,” said Sam Skipper, CEO of Vector. “I believe the remaining wells will also be very productive. All are exhibiting wellhead shut-in pressures in excess of 4,000 pounds, which is similar to the pressures experienced on the three wells that have been tested. All that remains is for the pipeline to be pigged and then sales can commence.”

Philadelphia, PA-based Resource America Inc. reported that its subsidiary, Atlas America Inc., has completed the acquisition of certain Pennsylvania assets previously held by Castle Gas Co. Inc. The assets include existing natural gas production and more than 10,000 acres of mineral rights located in Fayette, Washington, Greene and Westmoreland counties. Resource America said the acquisition will add more than 110 wells and more than 100 drilling sites to the company’s inventory. “This is a strategic acquisition which will enhance our operations by adding production and significant drilling opportunities,” said Frank Carolas, executive vice president of Atlas America and director of geology and land. “Atlas America continues to accumulate drill sites and expand its holdings of undeveloped acreage, and is now one of the leading oil and gas developers in the Appalachian Basin.” Terms of the transaction were not disclosed.

PECO said it is cutting residential gas customer rates by about 4% beginning in September because of the significant decline in wholesale prices. PECO will cut gas rates by 4.929 cents per hundred cubic feet (ccf). A typical residential customer with gas heat using 200 ccf will see a $9.85 decrease in their monthly bill. With the new rate, the average monthly bill for these customers will fall to $225.78. “Gas prices have stabilized considerably below the price last January,” said Reed Horting, PECO vice president of gas supply and transportation. “We also have reason to think that we will be able to decrease our natural gas rate even more significantly on Dec. 1. This will help lessen the burden on our customers as we move into prime heating season.” PECO Energy, an Exelon subsidiary, delivers electricity to 1.5 million customers and gas to 430,000 customers in southeastern Pennsylvania. In 2000, PECO delivered 92.5 Bcf of gas and 35.36 million MWh of electricity, generating $3.5 billion in revenue for Exelon.

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