Creek

With a revamped business model designed to focus on natural gas processing, Oneok Inc. officially exited the power business Friday with the sale of its Spring Creek plant in Logan County, OK to Westar Energy Inc. for $53 million. The transaction will result in a 3Q loss in discontinued operations, but improved gas processing spreads and higher commodity prices will push Oneok’s quarterly income and earnings well ahead of forecasts, the company said Friday.

The Canadian subsidiary of Dallas-based Pioneer Natural Resources Co. has signed a definitive agreement to sell its Martin Creek, Conroy Black and Lookout Butte oil and gas properties to Ketch Resources Ltd. for $207 million. The transaction is expected to close by May 31.

The Canadian subsidiary of Dallas-based Pioneer Natural Resources Co. has signed a definitive agreement to sell its Martin Creek, Conroy Black and Lookout Butte oil and gas properties to Ketch Resources Ltd. for $207 million. The transaction is expected to close by May 31.

Sonat completed shut-in testing Tuesday at its Bear Creek storage facility in North Louisiana and canceled the associated force majeure that had been in effect since April 1.

“Due to anticipated milder temperatures and reduced operational flexibility resulting from the Bear Creek storage field test,” Tennessee said an OFO Action Alert will take effect Friday until further notice for all LMS-MA, LMS-PA and LMS-SA balancing parties and delivery (from Tennessee) for LMS-PL shippers with meters located in Zones 0, L and 1. If the Action Alert proves insufficient to maintain system integrity, the pipeline said, an OFO Balancing Alert may become necessary.

Piedmont Natural Gas is planning to build a new pipeline to deliver gas supplies to Duke Power’s Mill Creek gas turbine electric generation facility, which is scheduled to go into service by June 2003. The peaking plant will use eight simple cycle turbines to generate 640 MW of power. It will be located in Cherokee County, SC.

Houston-based Carrizo Oil & Gas Inc. has drilled its Riverdale #2 well in the Cabeza Creek Project area in Goliad County, TX, which tested at an unstimulated gross rate of 7,524 Mcf /d and 146 bbl/d, or 8,400 Mcfe/d, on a 18/64-inch choke with flowing tubing pressure of about 4,050 pounds per square inch. The test was done in a Wilcox zone with 36 feet of net pay. Carrizo is operator and owns a 68.75% working interest. It currently is working on a pipeline hookup and expects the well to begin production in the next two weeks. Three additional wells are expected to be necessary to fully develop the Riverdale project, the company said. Other partners include Palace Exploration, which owns a 30% working interest.

Columbia Gas opened a data room this week to provide informationto anyone interested in buying its Derrick’s Creek storage field inKanawha County, WV. The field has about 6.2 Bcf of total storagespace, 20 gas storage wells and 13 miles of related pipelinefacilities. In 1996, Columbia announced plans to sell the field,which is not part of its core transportation and storageoperations. Interested parties should contact Columbia at (304)357-2282. Access to the data room will be available until Dec. 3.

KN Energy and Devon Energy signed a letter of intent to formThunder Creek Gas Services and build a new $110 million, 126-milegas gathering system and associated facilities in the Powder RiverBasin of northeast Wyoming. The 24-inch diameter gathering systemwould extend between Gillette and Glenrock, WY, bringing up to 450MMcf/d of new production to connections with multiple downstreampipelines during the first half of 1999.