Murphy Oil Corp.‘s E&P subsidiary has awarded a contract to J. Ray McDermott Inc. to construct a Floating Production System for the Front Runner Project, designed to handle 60,000 bbl/d and 110 MMcf/d from the Gulf of Mexico. Murphy operates the project and owns 37.5% with partners Dominion Exploration & Production Inc., (37.5%), and Spinnaker Exploration Co., (25%). The Front Runner partners have approved a plan for the development of the area utilizing a Truss Spar type Floating Production System. They continue to evaluate export pipeline options. Targeted first production for the project is the first half of 2004. SparTEC Inc., a wholly owned subsidiary of McDermott, will be the general contractor responsible for the engineering, procurement, construction and installation of the Spar. The Front Runner Project is located in 3,500 feet of water on Green Canyon Blocks 338 and 339 in the Central Gulf, approximately 135 miles south-southeast of Houma, LA. The initial discovery well reached a total depth of 22,925 feet in March 2001.

Canada’s National Energy Board said it would hold a public hearing Tuesday June 5 in Chetwynd, BC on an application by Westcoast Energy Inc. to extend its Grizzly Raw Gas Transmission System and to construct the Weejay Lateral in British Columbia and Alberta. The Grizzly extension would include 67 miles of 16-inch diameter pipeline extending from a point in northeast British Columbia about 19 miles southeast of Tumbler Ridge to a proposed receipt point in Alberta 68 miles southwest of Grande Prairie. Westcoast also proposes to construct four miles of 10-inch diameter pipeline from a well site in British Columbia to a tie-in point on the proposed Grizzly Extension Pipeline. The proposed facilities will permit Westcoast to connect additional gas reserves in the Ojay/Weejay area of British Columbia and the Narraway area of Alberta. The estimated cost of the proposed facilities is C$64.5 million. The public hearing will be at 9 a.m. June 25 at in the Chetwynd and District Recreation Complex, 4552 North Access in Chetwynd. Written interventions must be filed with the board by April 8. The hearing order, GH-2-2002, is available on the board’s web site at https://www.neb-one.gc.ca.

Cambridge Energy Corp. said it will close on Thursday on an acquisition of production assets from Southwin Financial for $7.2 million in Cambridge Class AA Preferred shares. These preferred shares are convertible into common stock of Cambridge at a conversion rate of $3 per share. The total value of proven reserves of this first part of the acquisition is $40.8 million. Cambridge said the acquisition is the first transaction in an ongoing partnership with a well-established Texas oil and gas company, which will precipitate further proven reserve acquisition opportunities. This property represents a 50-well drilling program for Cambridge on the proven Caballos structure.

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