Canyon

Murphy Oil said it has commenced production from its Medusa field in Mississippi Canyon Blocks 538 and 582. Medusa is located in 2,200 feet of water and consists of a spar facility capable of handling 40,000 b/d of crude oil and 110 MMcf/d of gas. Murphy is the operator of the field and holds a 60% interest with partners Eni Petroleum (25%) and Callon Petroleum (15%). Medusa has reserves of 140 million boe and is expected to reach peak production of 36,000 b/d of oil and 40 MMcf/d of gas.

Berry Petroleum Co. has completed its $48.6 million purchase of Uinta Basin properties from Williams Production RMT Co. The properties, located in the Brundage Canyon in northeastern Utah, currently are producing 1,800 net boe/d. Berry estimates the 43,500 acres have proved reserves of 8.6 million boe, comprised of 75% light oil and 25% natural gas. The company said it had identified more than 50 proved undeveloped locations and 25 behind pipe recompletions within the productive area of the field. The Bakersfield, CA-based independent also announced that Logan Magruder has joined the company as vice president of the Rocky Mountain and Mid-Continent Region. Magruder held similar positions with Calpine Corp. and Barrett Resources, and has served as a consultant for Berry since Feb. 2003.

ANR said Saturday the riser work at its Eugene Island 371 platform had been completed and the associated outages at that platform, Eugene Island 341 and Green Canyon 237 had been lifted. The work ended several days ahead of the 10 days that ANR had projected when it began last week (see Daily GPI, July 30).

Due to unforeseen riser repairs required at ANR’s Eugene Island 371 platform, production from Green Canyon 237 and Eugene Island 341 and 371 was shut in Tuesday for work that is expected to take about 10 days.

Pioneer Natural Resources Co. said production delays on the start-up of its Canyon Express project dropped predicted fourth quarter production results, which now are expected to average 117 Mboe/d. Year-ago fourth-quarter production averaged 110 Mboe/d. The Dallas-based independent said operational issues had delayed production from one of its six wells in the project, but net production is currently reaching expected levels, averaging more than 100 MMcf/d with five of six wells producing. The sixth well is expected to begin production in the first quarter. Fourth quarter realized prices for natural gas liquids are expected to range between $16-$16.20/bbl, while oil prices should range between $22.90-$23.10/bbl. Pioneer’s fourth quarter realized price for gas, including the effects of hedges, is expected to average approximately $2.65-$2.85/Mcf. Total exploration and abandonment expense is expected to be approximately $27 million after taxes, including charges related to an unsuccessful well on its Lightning prospect, the first of three prospects Pioneer is drilling near its Falcon field in the deepwater Gulf of Mexico.

Pacific Gas and Electric said the unusual event declared Mondayat its Diablo Canyon Power Plant Unit 1 was terminated at 9:57 a.m.Tuesday morning. It noted that “An Unusual Event” is the lowestlevel of emergency classification as defined by the NRC and doesnot require any emergency action by the general public or anygovernment agency. Throughout the event all reactor safety systemsfunctioned properly and radiation monitors did not detect anyradioactivity above normal background, the utility said. The eventwas terminated after off-site power was restored to the unit anddiesel generators used to power cooling equipment during the eventwere shut off and placed in standby. Offsite power was lostfollowing an electrical short and fire at 12:25 a.m. Monday. Thediesel generators are used to power reactor cooling equipment inthe event of a reactor trip when offsite power is not available.Efforts at the plant are now focused on determining the cause ofthe electrical short and fire and to make repairs.