Promax Energy entered into a farmout joint venture agreement with Trident Exploration Corp. of Calgary to develop coalbed methane (CBM) under its Cessford properties in Alberta. Terms of the joint venture include a 12-well pilot program with all costs of the test borne by Trident, which will earn the right to commence a commercial drilling project on customary oil and gas industry terms. CBM production has become a significant and rapidly growing source of natural gas supply in the U.S., and interest is increasing in the CBM potential of Western Canadian coals. The Promax acreage hosts both shallow and deeper coal seams of interest. “The extensive and contiguous Promax land position, coupled with its database of logs, samples and seismic lines, will allow Trident to move rapidly in identifying the most prospective areas and starting a pilot project,” said Trident President Jon Baker. “Access to the Promax gas infrastructure and drilling economies will enhance the commercial potential for CBM development.” Promax is focused on natural gas in southeastern Alberta. It is well positioned to play a key role in the development of 500,000 acres of shallow gas in the Cessford area of Alberta, including platform production from the Medicine Hat/Milk River zones and potential higher productivity from up to 15 other horizons.
Tag / Exploration
SubscribeExploration
Articles from Exploration
Denbury Cuts Spending, Alters Hedges Due to Enron Exposure
Denbury Resources said it has reduced its projected 2002 development and exploration budget by $25 million (20%) to $95 million to adjust for the loss in potential revenue and cash flow during 2002 from its natural gas hedges with Enron Corp. and for the general decline in commodity prices.
Natural Gas Reserves Soar in 2000
Spurred by high prices, the natural gas exploration and production industry blew away the record books in 2000, recording an “unusual” 6% increase in proved reserves, “by far the largest increase since the Energy Information Administration (EIA) has been estimating the nation’s proved gas reserves.”
Growth in Natural Gas Reserves Set New Record in 2000
Spurred by high prices, the natural gas exploration and production industry blew away the record books in 2000, recording an “unusual” 6% increase in proved reserves, “by far the largest increase since EIA (Energy Information Administration) has been estimating the nation’s proved gas reserves.”
McMoRan, Trinity Considering Offshore LNG Facility in Gulf
Freeport-McMoRan Sulphur LLC (FSC), a McMoRan Exploration Co. subsidiary, on Thursday agreed to sell some of its Main Pass Block 299 facilities in the Gulf of Mexico to Trinity Storage Services LP for $12.4 million. Trinity in turn is considering using the facilities for, among other things, oil and gas drilling support, oil and gas storage at the salt dome there, and a possible offshore liquefied natural gas (LNG) facility. FSC would receive 9% of future revenues from any of the commercial activities through 2021.
Industry Brief
Calgary-based Anderson Exploration Ltd. on Friday accepted the C$40 per share cash tender offer of Devon Energy Corp., based in Oklahoma City. Devon also said it had received “all necessary approvals” to acquire Anderson in a $4.6 billion deal first announced in September (see Daily GPI, Sept. 5). When the deal is completed, Devon would become the top independent oil and gas producer in North America, a post currently held by Anadarko Petroleum Corp. About 128 million of Anderson’s shares were tendered under the offer, representing 97% of the Canadian company’s total shares outstanding. Devon intends to take up the tendered shares and pay the depository on Monday (Oct. 15) and will acquire the remaining shares of Anderson by compulsory acquisition for C$40 per share in cash.
Newfield Cuts Gulf Gas Production Because of Low Prices
Joining some of its peers, most notably EOG Resources, Newfield Exploration announced it is curtailing a small portion of its fourth quarter natural gas production in response to low gas prices. The company also reported that the action will allow it to take advantage of a likely further decline in service sector costs.
Stone Energy Capitalizes on Shallow Gulf
While some producers may be scaling back exploration and acquisition plans in view of current low prices, Stone Energy, which operates in the shallow Gulf of Mexico, is seizing the opportunity to add to its portfolio of prospects.
McMoRan, Trinity Considering Offshore LNG Facility in Gulf
Freeport-McMoRan Sulphur LLC (FSC), a McMoRan Exploration Co. subsidiary, on Thursday agreed to sell some of its Main Pass Block 299 facilities in the Gulf of Mexico to Trinity Storage Services LP for $12.4 million. Trinity in turn is considering using the facilities for, among other things, oil and gas drilling support, oil and gas storage at the salt dome there, and a possible offshore liquefied natural gas (LNG) facility. FSC would receive 9% of future revenues from any of the commercial activities through 2021.
Newfield Cuts Gulf Gas Production Because of Low Prices
Joining some of its peers, most notably EOG Resources, Newfield Exploration announced it is curtailing a small portion of its fourth quarter natural gas production in response to low gas prices. The company also reported that the action will allow it to take advantage of a likely further decline in service sector costs.
