Deep

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.

Exposure to possible losses due to energy giant Enron’s financial failure continued to spread like a worldwide epidemic last week with companies and financial institutions around the world reporting potential losses, reflecting the broad reach both of the company’s business and its stock.

Gasco Energy Inc. and Burlington Resources plan to explore and potentially develop a series of deep natural gas plays in Wyoming’s Greater Green River Basin under an agreement announced Thursday. The companies plan to jointly explore and develop seven areas of mutual interest (AMI) under an umbrella exploration agreement covering 332,000 acres in west-central Wyoming. Financial details were not disclosed. Houston-based Burlington will be operator of each and AMI will hold a 50% working interest. Gasco, headquartered in Denver, will own a 25% working interest and a private company will own the remaining 25%. Under the agreement, Burlington will acquire about 180 miles of high resolution 2-D seismic data with an obligation to drill two wells at its cost. The partners then would share subsequent costs on additional wells that are drilled. The agreement also would give Burlington the right to make drilling decisions on the AMIs between now and August 2003.

Gasco Energy Inc. and Burlington Resources plan to explore and potentially develop a series of deep natural gas plays in Wyoming’s Greater Green River Basin under an agreement announced Thursday. The companies plan to jointly explore and develop seven areas of mutual interest (AMI) under an umbrella exploration agreement covering 332,000 acres in west-central Wyoming. Financial details were not disclosed.

Calgary-based Canadian 88 Energy Corp. has successfully drilled a significant deep natural gas well in Western Alberta to a depth of 15,709 feet. The well is a stepout into the prolific Blackstone Devonian Swan Hills gas pool and log results indicate 98 feet of highly porous dolomite gas pay, averaging 10% porosity analogous to other wells in the pool. The well, located about 1.9 miles from other wells in the Blackstone pool, encountered the top of the gas pay 246 feet higher than any previous well. Canadian 88 expects to have more information when the well is completed and on production within six months. The Blackstone pool, which is 150 miles northwest of Calgary, was discovered in 1984 and has produced 404 Bcf of sales gas from three wells to date, with an estimated 355 Bcf of sales gas remaining. Two wells are currently on production in the pool, each producing at a rate of approximately 50 MMcf/d.

Esenjay Exploration Inc. has completed and tested its Runnells #5 well in the deep geo-pressured Frio Trend in Matagorda County, TX, which production tested at an unstimulated daily flow rate of 21 MMcf and 710 bbl of condensate, with flowing tubing pressure of 7,436 pounds per square inch through a 25/64-inch choke. Esenjay, headquartered in Houston, is the generator and operator, and owns a 33% working interest. Esenjay turned the Runnells #5 well to sales and it is currently producing at a daily rate of 18 MMcf and 580 bbl of condensate. Combined, the company’s Runnells #5 and #3 wells are producing 31 MMcf/d and 1,052 bbl/d of condensate. Both wells have additional pay behind pipe.

House Republican energy leaders have deep-sixed their proposed legislation to provide emergency relief to California and other western energy markets, insisting that Democrats and Republicans are too far apart on the issue of whether price limits on wholesale power should be included.

House Republican energy leaders have deep-sixed their proposed legislation to provide emergency relief to California and other western energy markets, insisting that Democrats and Republicans are too far apart on the issue of whether price limits on wholesale power should be included.

An already bullish California oil/gas developer with both deep-drilling and shallow gas exploration in separate parts of Kern County received another shot of optimism earlier this month on reports that EOG Resources plans to expand its oil drilling program in the general area within 10 or 15 miles of the town of Delano, CA. EOG officials in Denver denied having any such plans.