Field

Saying its Washington Ranch Storage Field was experiencingmaximum withdrawals, El Paso declared an Unauthorized OverpullPenalty situation Thursday, effective until further notice. Thepipeline will limit scheduled volumes at interconnects that areunderperforming.

McMoRan Exploration has agreed to sell its 35% interest in theBrazos Block A-19 field and its 50% interest in the unexploredBrazos block A26, both located in the western Gulf of Mexico. ShellOffshore has signed an agreement to purchase both interests for $70million. Shell plans on drilling a new well on Brazos A-19 in thenear future. McMoRan’s CEO Richard C. Adkerson said, “We are verypleased with the sale of the Brazos properties. This transactionprovides us significant near term financial resources for use inour expanded oil and gas exploration program in the Gulf ofMexico.” Both fields are approximately 75 miles southwest ofGalveston, TX.

After several weeks of field testing, sponsors of a high-profile,deep-drilling project in the southern end of California’s San JoaquinValley reported Thursday (June 22) “pure, sweet oil” with an APIgravity of 48.6 degrees and associated natural gas with a very highnet Btu content of 1,460 with no water. However, definitiveinformation on the projected volumes is still several weeks away,according to Tri-Valley Oil & Gas Co., operator of the ProjectEkho No. 1 well about 45 miles northwest of Bakersfield, CA.

After several weeks of field testing, sponsors of ahigh-profile, deep-drilling project in the southern end ofCalifornia’s San Joaquin Valley reported Thursday (June 22) “pure,sweet oil” with an API gravity of 48.6 degrees and associatednatural gas with a very high net Btu content of 1,460 with nowater. However, definitive information on the projected volumes isstill several weeks away, according to Tri-Valley Oil & GasCo., operator of the Project Ekho No. 1 well about 45 milesnorthwest of Bakersfield, CA.

Two oil field service titans joined forces last week to create anew seismic oil and gas exploration business, a move that analystssay will reshape the seismic industry. Baker Hughes andSchlumberger have signed a memorandum of understanding under whichSchlumberger’s surface seismic business Geco-Prakla and BakerHughes’ seismic unit Western Geophysical would become Western GECO.

Two oil field service titans joined forces yesterday to create anew seismic oil and gas exploration business, a move that analystssay will reshape the seismic industry. Baker Hughes andSchlumberger have signed a memorandum of understanding under whichSchlumberger’s surface seismic business Geco-Prakla and BakerHughes’ seismic unit Western Geophysical would become Western GECO.

The numerous energy transaction Internet sites are likely toconsolidate leaving somewhere between one and six viable sites,executives of three of the leading sites told a GasMart/Power 2000audience in Denver last week.

The numerous energy transaction Internet sites are likely toconsolidate leaving somewhere between one and six viable sites,executives of three of the leading sites told a GasMart/Power 2000audience in Denver yesterday.

In what is becoming a bizarre case of concern to future merchantenergy project proponents, California regulators rescued a secondmerchant underground natural gas storage project from the trashheap last week by refusing to support a recommendation to deny theproposal and postponing the item for a future meeting. Analternative to the proposed administrative law judge (ALJ) decisionis likely to be developed by one of the members of the CaliforniaPublic Utilities Commission.