Field

Due to a storm-related power failure Monday afternoon at the Opal Plant, operator Williams Field Services said it planned to make Cycle 4 nominations cuts of 200-250 MMcf “from a current delivery nomination of 1,014,275 Mcf.” However, a WFS spokesman said the power outage lasted only about three hours and that Gas Control had reported a sendout of close to 1 Bcf that day, so apparently any curtailments were minor. No constraints were in effect Tuesday for Opal nominations of about 900 MMcf/d, he said.

The field of candidates for building a $550 million West Coast North American liquefied natural gas (LNG) receiving terminal got a bit more crowded this past week as an Australian mining/energy company threw its hat in the ring with the first offshore California proposal. Initial permits are expected by the end of next year, and the proponents hope to have the facility operating in 2008.

The field of candidates for building a $550 million West Coast North American liquefied natural gas receiving terminal got a bit more crowded this past week as an Australian mining/energy company threw its hat in the ring with the first offshore California proposal. Initial permits are expected by the end of next year, and the proponents hope to have the facility operating in 2008.

Despite continued declines from the once prolific Ladyfern field, Canadian Natural Resources achieved higher natural gas production and set a record for gas sales in the second quarter, with credit given to its successful exploitation program in Northwest Alberta. However, an Alberta regulatory requirement to shut in some gas production beginning Sept. 1 will drop the independent’s gas production at least 15-20 MMcf/d, with another 5-10 MMcf/d loss possible, depending on an appeal now being sought by the company.

Magnum Hunter Resources said it has participated in three new field discoveries in the Gulf of Mexico that the company estimates will add 36 MMcf/d of gas production (12 MMcf/d net to Magnum Hunter) later this year. “Our company’s daily oil and gas production from the Gulf of Mexico continues to increase each quarter with production now averaging 55 MMcfe/d,” said Charles R. (Chuck) Erwin, senior vice president of exploration. “Our ability to ‘fast track’ some of our 2003 discoveries in order that we can benefit immediately from current high commodity prices, should bode well for our second half 2003 income estimates. With drilling rig and service costs remaining at unusually low levels in relation to current commodity prices, the Gulf of Mexico will capture a minimum of $60 million or 60% of our company’s 2003 capital budget,” he said. “Magnum Hunter will be participating in an additional seven wells in the Gulf of Mexico prior to year-end.”

Magnum Hunter Resources said it has participated in three new field discoveries in the Gulf of Mexico that the company estimates will add 36 MMcf/d of gas production (12 MMcf/d net to Magnum Hunter) later this year.

Bids during an open season for working storage capacity in the Phase II expansion of the Hill-Lake Gas Storage field exceeded planned capacity by nearly 50%, according to developer Falcon Gas Storage Co. Inc.

“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.

The field of firms in the U.S. formed to buy gas and power assets expanded last week after StoneCap Management LLC announced the formation of the StoneCap Group L.P., whose principals include two former Dynegy Inc. executives, Hugh Tarpley and Milton Scott.