Drilling

Natural gas drilling fell significantly during the second quarter compared to the same period a year ago, according to a report from Washington, DC-based American Petroleum Institute (API).

Wilshire Oil Co. said it has signed an agreement to participate with one of the largest (non integrated) oil and natural gas companies in the United States in a major drilling program in Canada. Wilshire said it anticipates that the company’s overall gas reserves may increase by as much as 31% by this year-end as a result of this program. Under the agreement, Wilshire will have a 30% interest in a total of 380 wells, in the Medicine Hat-Hilda Area of southeastern Alberta including the 210 new gas wells to be drilled. The new wells are expected to triple the daily gas production from the unit by 2003. The project is expected to commence in the third quarter of 2002 and be completed by year-end. Cash flow from the new production will commence in the fourth quarter with full benefits realized by Wilshire from the increased production in early 2003.

The Interior Department’s Minerals Management Service (MMS) has proposed incentives to encourage deep-gas production in shallow waters as part of its upcoming Lease Sale 184 in the western Gulf of Mexico, which has been scheduled tentatively for Aug. 21 in New Orleans. This will be the agency’s first scheduled sale under its current five-year leasing program (2002-2007).

Wilshire Oil Co. said it has signed an agreement to participate with one of the largest (non integrated) oil and natural gas companies in the United States in a major drilling program in Canada. Wilshire said it anticipates that the company’s overall gas reserves may increase by as much as 31% by this year-end as a result of this program. Under the agreement, Wilshire will have a 30% interest in a total of 380 wells, in the Medicine Hat-Hilda Area of southeastern Alberta including the 210 new gas wells to be drilled. The new wells are expected to triple the daily gas production from the unit by 2003. The project is expected to commence in the third quarter of 2002 and be completed by year-end. Cash flow from the new production will commence in the fourth quarter with full benefits realized by Wilshire from the increased production in early 2003.

West Virginia-based Trans Energy Inc., which recently announcedplans to focus on drilling for deep gas in the Appalachian Basin,is working to dispel rumors that it faces bankruptcy after acreditor filed a proceeding against it recently.

Drilling and oil field services company BJ Services is buying Lafayette, LA-based OSCA Inc. for $28/share or about $420 million. OSCA is a major provider of oil and gas well completion fluids, completion services and downhole completion tools in the United States and select international markets, and will give BJ Services another solid completion product line to market to its broad geographic area.

Drilling and oil field services company BJ Services is buying Lafayette, LA-based OSCA Inc. for $28/share or about $420 million. OSCA is a major provider of oil and gas well completion fluids, completion services and downhole completion tools in the United States and select international markets, and will give BJ Services another solid completion product line to market to its broad geographic area.

Oil and gas industry representatives are concerned that problems with the Coastal Zone Management Act (CZMA) are not being fixed by Congress despite the current opportunity to do so with the required reauthorization of CZMA and the urgent pleas by industry and the Bush administration that changes must be made to remove a substantial impediment to the nation’s energy supply.

Oil and gas industry representatives are concerned that problems with the Coastal Zone Management Act (CZMA) are not being fixed by Congress despite the current opportunity to do so with the required reauthorization of CZMA and the urgent pleas by industry and the Bush administration that changes must be made to remove a substantial impediment to the nation’s energy supply.