Hydrocarbon

Industry Brief

BP Exploration & Production Inc. announced a hydrocarbon discovery in an exploration well that tested its Isabela prospect in the deepwater Gulf of Mexico (GOM). The well is located on Mississippi Canyon Block 562 in 6,500 feet of water, about 150 miles southeast of New Orleans. Isabela was drilled to a total depth of 19,100 feet into Miocene era sands. “Isabela is an excellent addition to our portfolio of discoveries in the Gulf of Mexico,” said Dave Rainey, BP’s Vice President of GOM Exploration. “It will likely be tied back to our Na Kika production platform, helping to maximize the value of that infrastructure.” The well is operated by BP with a 67% working interest and is co-owned by Noble Energy Inc. with a 33% working interest. The lease was acquired at in March 1998.

June 7, 2007

S&P Says Escalating E&P Share Repurchases Tempers Ratings

Thanks to historically high hydrocarbon prices, exploration and production (E&P) companies in 2006 are once again rewarding shareholders through stock repurchases and dividend increases. However, Standard & Poor’s (S&P) said those large share buybacks have tempered the credit ratings improvement E&Ps likely would have received otherwise.

September 25, 2006

S&P Says Escalating E&P Share Repurchases Tempers Ratings

Thanks to historically high hydrocarbon prices, exploration and production (E&P) companies in 2006 are once again rewarding shareholders through stock repurchases and dividend increases. However, Standard & Poor’s (S&P) said those large share buybacks have tempered the credit ratings improvement E&Ps likely would have received otherwise.

September 20, 2006

Transportation Notes

Tennessee said it is experiencing hydrocarbon dew point (HDP) temperatures in excess of its 20-degree limit upstream of Station 87 (Portland, TN) due to high levels of hydrocarbons in deliveries into the 500 Line and the limited ability of the Yscloskey Processing Plant to sufficiently process that gas. Targa Midstream, operator of the Yscloskey facility, has informed Tennessee that the plant should be back to full operation by mid to late May. As alternatives to imposing further corrective actions, Tennessee said it is exploring various short-term operational options that may allow continued flows in the affected area in a safe and reliable manner. However, Tennessee asked shippers and producers to consider what steps they may take voluntarily to conform deliveries into the 500 Line, including but not limited to seeking additional processing alternatives such as deliveries to the Toca and/or Discovery processing plants. “Tennessee strongly encourages customers to make these processing arrangements to ensure deliveries into the pipeline system will conform to Tennessee’s posted HDP limit,” the pipeline said. If HDP temperatures are not sufficiently lowered, Tennessee said it will initiate further corrective action to protect operational integrity.

May 8, 2006

FERC Denies Natural’s Request to Hold Off on Setting HDP Safe Harbor Level

FERC on Friday denied an emergency request of Natural Gas Pipeline Co. of America (NGPL) for reconsideration of an order that set for hearing the issue of the appropriate hydrocarbon dew point (HDP) safe harbor level on the pipeline’s system.

June 6, 2005

FERC Denies Natural’s Request to Hold Off on Setting HDP Safe Harbor Level

FERC on Friday denied an emergency request of Natural Gas Pipeline Co. of America (NGPL) for reconsideration of an order that set for hearing the issue of the appropriate hydrocarbon dew point (HDP) safe harbor level on the pipeline’s system.

June 6, 2005

Unocal Earnings Up 49%, Domestic Production Falls

Worldwide hydrocarbon liquids and natural gas production averaged 428,000 boe/d, slightly higher than the 420,000 boe reported in 4Q2003. However, natural gas production in the United States dropped to 470 MMcf/d from 566 MMcf/d in 4Q2003, and in Canada, output fell to 551 MMcf/d from 655 MMcf/d. Total liquids production worldwide fell to 69,000 bbl/d from 75,000 bbl/d in 4Q2003.

February 2, 2005

Exploratory Well Hits ‘Significant’ Pay in GOM’s Green Canyon

An exploratory well in the Gulf of Mexico Puma prospect, located in Green Canyon block 823, has hit a “significant” discovery in a hydrocarbon-rich area near existing developments. As operator, BP holds a 52% working interest, Unocal holds 15% and the remaining 33% is held by BHP Billiton Ltd.

January 14, 2004

MarkWest Acquires Alberta Gathering System

Denver-based MarkWest Hydrocarbon Inc. has acquired an Alberta gathering system for C$3.1 million (US$2.0 million). The purchase includes six miles of pipelines and compression facilities that currently gather 5,500 Mcf/d. MarkWest plans to expand the system to 10,000 Mcf/d by early 2002. The new addition in southeastern Alberta is located in the Bantry field, where MarkWest already has wells and drilling locations.

December 19, 2001

MarkWest’s 3Q Exploration Program a 90% Success

Englewood, CO-based MarkWest Hydrocarbon Inc. reported that its wholly owned subsidiary, MarkWest Resources Canada Corp., has completed its third-quarter exploration program with a 90% success rate. MarkWest engineers estimate that the nine wells drilled and completed contain net proved reserves of between 5 and 6 Bcfe of natural gas.

September 27, 2001