Commenced

Sacramento, CA-based Cascade Energy Inc. said Monday it has commenced construction in the Empress area of Alberta on a natural gas pipeline that will tie in the “11-16” gas well for commercial production. In doing so, Cascade has advanced its pro-rata share of the required funds in full to the operator.

With its Phase II pipeline extension completed in February, Gulfstream Natural Gas System LLC said last week that it has commenced 350,000 Dth/d of incremental firm natural gas transportation service for Florida Power & Light (FPL).

With its Phase II pipeline extension completed in February, Gulfstream Natural Gas System LLC said Monday that it has commenced 350,000 Dth/d of incremental firm natural gas transportation service for Florida Power & Light (FPL).

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.

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.

Tidelands Oil & Gas Corp. said Wednesday that its subsidiary, Reef International LLC, has commenced construction on its International Pipeline Project between Texas and Mexico. The Eagle Pass/Piedras Negras International Pipeline will cross between Eagle Pass, TX and the state of Coahuila, Mexico.

Answering the call for increased domestic natural gas production, Magnum Hunter Resources Inc. said new production has commenced from its West Cameron Block 426 located on the Outer Continental Shelf (OCS) of the Gulf of Mexico. In addition, the Irving, TX-based company said it anticipates the start of new production from West Cameron Block 416 later this week, Ship Shoal 28 next month and West Cameron Block 428 within ten weeks.

Calgary-based Gemini Corp. said Wednesday that its new natural gas processing facility in Burstall, SK has successfully commenced operations. “This is significant because it is the first custom gas processing facility to be designed, constructed, owned and operated by the corporation,” said Carl Johnson, CEO. “We will continue to pursue similar projects, including those outside the oil and gas sector, since we believe that this type of service has strong growth potential and could represent an important part of the corporation’s future operations.” The initial design capacity of the plant is 3.8 MMcf/d with provision to expand to 7 MMcf/d. The cost was approximately $1 million and it should generate revenues of $3.6 million over the next 10 years, the company estimated. The anticipated life of this project is in excess of 15 years based on estimates of recoverable reserves in the immediate area. Gemini supplies engineering, project management, fabrication and construction, custom contract operating services and electrical and instrumentation services in Canada and internationally, predominantly to the oil and gas industry.

Calgary-based Canadian Superior Energy Inc. said that it has commenced drilling of the first of three deep gas wells it proposes to drill over the next 90 days in the Farmington, Umbach and Altares areas of northeast British Columbia. The first test well on this new 5,120-acre prospect is targeting the highly prospective Kiskatinaw formation at a cost of approximately C$1.5 million and it will be drilled to a total depth of 2,500 meters. The company estimated reserves range up to 20 Bcf per well with deliverability in the area ranging from 8 to 10 MMcf/d per well. Several follow-up locations are present on this new play. Furthermore, Canadian Superior’s President Greg Noval said that in the Umbach area, approximately 80 miles northwest of Fort St. John, operations are currently underway to drill a 1,160 metre test well targeting the lower Cretaceous Cadomin and Gething formations. Canadian Superior is the operator of this 1,250-acre prospect with a 62.5% working interest. The new Umbach well is a follow-up well to a recent Canadian Superior discovery at a-45-F/94-H-3, which was put onstream by the company at 1.5 MMcf/d in late November. In addition, in the Altares area approximately 45 miles west of Fort St. John, Canadian Superior is preparing to drill a 2,525 metre Debolt test targeting large reserves estimated at from 100 to 500 Bcf in the Mississippian formation. During the third quarter of 2001, Canadian Superior acquired 3,200 gross acres (1,600 net, 50% working interest) on this high impact foothills over-thrust prospect located in northeast British Columbia. A well is planned for drilling in early 2002. Canadian Superior said the Kobes field, which is directly on trend to the northwest, is a 250 Bcf field, which was developed on a similar Mississippian over-thrust play. Canadian Superior is operator of the prospect and a detailed seismic program is currently underway to define drill-site locations for early next year.