Horn

Anadarko Petroleum Corp. and a unit of Korea National Oil Corp. (KNOC) have struck a joint venture (JV) agreement that gives KNOC one-third of Anadarko’s interest in its southwest Texas Maverick Basin assets in the Eagle Ford Shale for about $1.55 billion.

A recent one-day retest of an Upper Montney Shale well in northeast British Columbia flowed at a rate of 8.9 MMcf/d, which further confirms a “large in-gas resource” at the Peach River Arch area, junior explorer Canada Energy Partners Inc. (CEP) said Monday.

Using the experience it gained in the unconventional gas fields of the Piceance Basin in Colorado, and the Montney and Horn River shale plays in British Columbia, Encana Corp. has begun to advance its “gas factory” approach in the Haynesville Shale, where it holds more than 430,000 net acres spread across Louisiana and East Texas.

Calgary-based Pengrowth Corp. is paying about C$11 million to add more than 28,800 acres (43 net sections) to its position in the Horn River Basin of British Columbia. Pengrowth is paying C$9 million for undeveloped land and C$2 million for the undisclosed seller’s interest in a standing cased well bore. With the agreement, Pengrowth would have a total of 73,147 net acres (113 net sections) in the play. Once the transaction closes, Pengrowth would hold a 10% stake in the Dilly Creek block and a 100% interest in Moss Creek and Gunnel Creek lands.

Apache Corp.’s natural gas reserves in the emerging Horn River Basin of British Columbia likely are on the “high end” of its previous forecast of 9-16 Tcf net, CEO G. Steven Farris said Thursday.

Apache Corp.’s natural gas reserves in the emerging Horn River Basin of British Columbia likely are on the “high end” of its previous forecast of 9-16 Tcf net, CEO G. Steven Farris said Thursday.

BP started producing about 15,000 b/d of oil and 12 MMcf/d of gas from a single well at its Horn Mountain development in the Gulf of Mexico. Production from the facility, which is located in 5,400 feet of water 100 miles southeast of New Orleans, is expected to reach a peak rate next year of more than 65,000 b/d of oil and 68 MMcf/d of gas after a total of seven production wells are completed. BP started exploration on the field in July 1999 after acquiring leases in 1997 and 1998. The first discovery was announced in August 1999, and BP and partner Occidental Petroleum began delineation drilling immediately after that. The $600 million project, which includes the deepest free-floating dry tree drilling system in the world, went from discovery to production in about 40 months. It is expected to result in ultimate recovery of an estimated 150 million boe. BP is the operator and holds a 67% equity interest. Occidental Petroleum holds the remaining 33%.

CIG declared a force majeure Monday evening after experiencing third-party damage to the Big Horn Lateral in northern Wyoming (the bulletin board notice incorrectly identified it as the Wind River Lateral, a spokesman said). The lateral was shut in north of Lost Cabin Station between Block Valves 7 and 8. The outage required that volumes be cut to zero at Elk Basin Station for Tuesday’s gas day. CIG anticipated that line repairs would be completed in time to resume normal operations by Cycle 4 nominations Tuesday (about 8 p.m. MDT).