Gross

Houston-based Southwestern Energy Co. said that gross production from its Fayetteville Shale play has now reached 30 MMcf/d, up from 20 MMcf/d on May 1. The company said the production increase is due to several factors, including the recent delivery of more drilling rigs, an increase in well completion service resources and generally improving well results.

Houston-based Southwestern Energy Co. said that gross production from its Fayetteville Shale play has now reached 30 MMcf/d, up from 20 MMcf/d on May 1. The company said the production increase is due to several factors including the recent delivery of more drilling rigs, an increase in well completion service resources and generally improving well results.

Adding to its natural gas exploration acreage, Bakersfield, CA-based Berry Petroleum Co. said Friday that it has purchased a 50% working interest in approximately 70,000 gross (60,000 net) undeveloped acres in Colorado’s Phillips and Sedgwick counties from Chandler Energy LLC.

Houston-based independent Carrizo Oil & Gas Inc. said Thursday that its Hankamer No. 1 well in Liberty County, TX, has begun producing at a gross rate of 15,122 Mcfe/d and 772 bbl/d. The well, in which Carrizo is operator and 40% partner, was drilled in the fourth quarter. The company said the well, which was successfully completed in the Cook Mountain interval, had a flowing tubing pressure of 7,166 psi. Carrizo is monitoring the well’s performance and has increased the production rate to a current rate of approximately 525 bbl and 7,000 Mcf (10,50 Mcfe) a day. Carrizo also announced that the Pauline Huebner A-382 #2 well in the company’s Matagorda Project Area, which targeted a previously untested structure near successful wells in the Providence Field, has now been drilled, reaching a total depth of 12,500 feet earlier this month. The well logs indicate 74 feet of apparent net pay in three potential pay intervals. Carrizo is the operator of the well and owns working interests ranging from 46.5-52.5% in the primary well objectives, depending upon the actual depth of the zone to be produced. Completion operations are in process and Carrizo expects to be able to test the well in the next seven to 10 days. Carrizo also is currently drilling another follow-up well to the company’s successful wells in the Providence Field, the Pauline Huebner A-382 #3, which is expected to reach total depth in the next seven to 10 days.

Marathon Oil Co. and Unocal Corp. reported a significant natural gas discovery of about 90 Bcf of gross proven recoverable gas reserves on the Ninilchik Prospect on the Kenai Peninsula, approximately 35 miles south of Kenai, AK. Marathon is operator of the well and the 25,000-acre prospect with a 60% working interest, while Unocal Alaska holds the remaining 40%.

Marathon Oil Co. and Unocal Corp. reported a significant natural gas discovery of about 90 Bcf of gross proven recoverable gas reserves on the Ninilchik Prospect on the Kenai Peninsula, approximately 35 miles south of Kenai, AK. Marathon is operator of the well and the 25,000-acre prospect with a 60% working interest, while Unocal Alaska holds the remaining 40%.

Prima Energy Corp. reported last week that it has acquired orgained control of approximately 77,000 gross and 73,000 net acreson the Wasatch Plateau in central Utah, an area that has revealedsignificant coalbed methane (CBM) gas discoveries in the past.

After exploring its options, Occidental Petroleum Corp. of LosAngeles agreed to sell for C$29.61/share its 29.2% stake inCanadian Occidental Petroleum Ltd. for gross proceeds of C$1.2billion Canadian. Of Occidental’s 40.2 million CanOxy shares, 20.2million will be sold to the Ontario Teachers Pension Plan Board.The remaining 20 million will be sold to CanOxy. Once the deal iscomplete, Occidental will no longer hold an equity interest inCanOxy.

After exploring its options, Occidental Petroleum Corp. of LosAngeles agreed to sell for C$29.61/share its 29.2% stake inCanadian Occidental Petroleum Ltd. for gross proceeds of C$1.2billion Canadian. Occidental expects after-tax net proceeds to beUS$700 million and to report a gain of US$300 million.