Fortuna Energy Inc. has drilled two successful Black River gas wells in the Appalachia, the first two operated wells of its recently acquired New York properties. The Talisman Energy Inc. subsidiary said the first well, Fortuna Ganung Hz, tested a non-producing structure in Schuyler County. Despite some operational problems, the well still tested at rates up to 2.4 MMcf/d, and plans are under way to tie the well into a local gathering system. The second well, Fortuna Konstantinedes Hz, was drilled in Chemung County. After completion, the well flowed at rates up to 10.4 MMcf/d and is currently shut-in for a pressure buildup test. Work is under way to have the well tied into the Columbia high-pressure transmission system by the end of the year. The third well, Hepfner, is currently drilling. Two additional rigs also are being mobilized, and a fourth well is expected to spud in September and another in mid-October. Additional projects under way include the installation of three compressors, all expected to be on stream by year’s end and the tie-in of the Fortuna Pace well, which should be on stream in early 2004 at a rate of 5 MMcf/d. Fortuna’s production in July was 67 MMcf/d, and it plans to spend US$46 million in the area in 2003, drilling eight wells.
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Weather Leads Other Factors in Generating Weekend Spikes
Paced by triple-digit advances at Midwest and Northeast citygates and on Dominion in Appalachia and several Midcontinent pipes, nearly the entire cash market put in a strong weekend price performance in Friday’s super-volatile trading. Flat San Juan Basin numbers missed out on the price party, and other western points tended to see most of the smaller gains of less than 30 cents.
Returning Cold Weather Sends East Prices Soaring
Dollar-plus gains at all Northeast citygates and on Dominion in Appalachia were mixed into overall cash spikes Tuesday. Upticks of half a dollar or greater were consistent throughout the East and in the Waha/Permian Basin markets. The rest of the West tended to lag behind but still saw fairly strong advances of about 20-30 cents or so.
Northeast Losses Lead Overall Moderate Softening
Plunges of about a dollar in the Northeast and about half a dollar on Dominion in Appalachia far outran moderate softness in the rest of the market Friday. The February aftermarket started with losses elsewhere that tended to range from about a nickel to a quarter, and the Rockies even registered some small gains.
West Virginia Believes Appalachia’s CBM Production Could Match Rocky Mountains
Northern Appalachian natural gas production lags considerably behind the ramp up in the Rocky Mountains, but West Virginia Gov. Bob Wise said that he is pushing for his state to one day compete head-to-head with Wyoming. Wise spoke Tuesday in Charleston, WV as keynote for the Conference on Natural Gas from Coal Seams in the Northern Appalachian Basin.
Industry briefs
Penn Virginia Corp., headquartered in Radnor, PA, has retainedWaterous & Co. to assist with the potential sale of a portionof the company’s Appalachia oil and gas properties. The properties,with an estimated 70 Bcfe of proved reserves are 97% natural gas.Current net production from the properties is 7 MMcf/d. A data roomto review detailed property information is expected to open inHouston later this month. More information is available atwww.waterous.com.
Prices Flat in Most Areas; Northeast and West Decline
Weekend cash prices hit a plateau Friday in theMidcontinent/Midwest, Gulf Coast and Appalachia, but softened inthe Northeast and at most western points.
Equitable Buys Statoil’s Appalachia Assets
Equitable Resources ascended to the throne of Appalachian basinproducers yesterday by agreeing to purchase all of Statoil Energy’sassets in the region for $630 million. The deal is expected to becompleted next month, Statoil said.
Northeast Flatness Contrasts with Big California Drop
Cash price changes for the weekend varied widely, ranging fromrelative flatness in Appalachia and Northeast citygates to drops of10-20 cents at the California border. The big weakness inCalifornia numbers was due to trader fears of weekend OperationalFlow Orders by SoCal Gas and PG&E, whether or not they evermaterialized, sources said. (Neither utility had an OFO in effectas of Saturday.) However, SoCal was cutting all as-availablestorage injections, helping to keep Topock prices depressed, amarketer said.
