Lease

Industry Brief

PetroSales announced a new oil and gas divestment package including 7,465 net acres under lease in the Anadarko Basin of Oklahoma. Reserves include six oil and gas properties and 14 possible drilling locations, plus facilities including gathering and production equipment. Antares Energy Co. retained PetroSales to conduct a negotiated divestiture of these assets. As an Australian company venturing into the United States, Antares and its partners first acquired the acreage in 2004, drilling four wells including two redrills of undeveloped and unproduced Morrow discoveries. Antares has elected to divest all of its interests, which are in Ellis and Beaver Counties, OK, and Lipscomb County, TX, and focus on its present core area of operations along the Texas Gulf Coast. The combined gross production averaged over the three months ending Dec. 31, 2006, was 1,648 Mcf/d of natural gas and 74 b/d of crude with net production of 536 Mcf/d of gas and 23 b/d of crude. Antares’ net operating income has averaged $118,175 per month. Active zones from the company’s six wells include the Lower Morrow gas sand, the Upper Des Moines oil sand, the Atoka condensate sand and the Tonkawa sand. Additional behind pipe potential has been identified in the Des Moines on two wells, and also 14 possible drilling locations to test the Morrow, Atoka, Des Moines, Cleveland and Tonkawa potential on their acreage. Recent horizontal drilling in the Cleveland formation nearby has yielded flow rate up to 1200 b/d of oil with 3.3 MMcf/d of gas resulting in a significant increase in reserves for this play, PetroSales said. Offers have been requested by March 23. See www.petrosales.com to download an offering summary.

March 19, 2007

Murkowski Creates Pipe Office Amid Prudhoe Hangover

Alaska Gov. Frank Murkowski recently signed an administrative order creating a lease monitoring and engineering integrity coordinating office (LMEICO) within the state’s Department of Natural Resources (DNR). The LMEICO is charged with coordinating the oil infrastructure oversight efforts of a multitude of state, federal and local agencies stretching from the North Slope fields to the Alyeska marine terminal at Valdez.

October 16, 2006

Murkowski Creates Pipe Office; AK Production 60,000 b/d Under Budget

Alaska Gov. Frank Murkowski last week signed an administrative order creating a lease monitoring and engineering integrity coordinating office (LMEICO) within the state’s Department of Natural Resources (DNR). The LMEICO is charged with coordinating the oil infrastructure oversight efforts of a multitude of state, federal and local agencies stretching from the North Slope fields to the Alyeska marine terminal at Valdez.

October 10, 2006

Gulf of Mexico Sale 198 Attracts 707 Bids From 82 Companies; Govt. Collects $588 Million

Proving that even a bunch of mighty hurricanes can’t keep the oil and gas industry down, Central Gulf of Mexico Lease Sale No. 198 brought in more than $588.3 million in high bids out of more than $978.3 million in total bids.

March 16, 2006

Gas Demand Growth Attracts Another LNG Project in Maine

Less than a week after the Passamaquoddy Native American tribe in Maine received approval from the Bureau of Indian Affairs to lease land to Quoddy Bay LLC for construction of a $200 million LNG terminal at Split Rock (see Daily GPI, May 23), a new competing Maine LNG project was announced for construction about 10 miles away in the Washington County town of Robbinston

July 13, 2005

Industry Brief

The Minerals Management Service (MMS) issued a final notice of Western Gulf Lease Sale 196 scheduled for Aug. 17. Sale 196 will include 3,762 unleased blocks covering 20.3 million acres offshore Texas and Louisiana and could result in the production of 136-262 million bbl of oil and 0.81-1.44 Tcf of natural gas. The blocks are located five to 357 kilometers offshore in water depths ranging from eight to 3,100 meters. MMS has increased base rental rates from $5.00 to $6.25 per acre for blocks in water depths of less than 200 meters and from $7.50 to $9.50 per acre for blocks in water depths of 200 meters or deeper, reflecting inflationary adjustments. MMS also warned bidders that an application from Beacon Port LLC for the licensing of a deepwater LNG port in the Western Gulf of Mexico has been received by the U.S. Coast Guard and the Maritime Administration. The proposed LNG facility will affect certain blocks in the High Island and West Cameron Areas.

July 13, 2005

Interior Urged to Seek Broad Input to Develop Next OCS Leasing Program

The Interior Department should keep “all options on the table” when choosing the timing and location of the lease sales to be included in the next five-year Outer Continental Shelf (OCS) leasing program for 2007-2012, five oil and natural gas groups told Interior Secretary Gale Norton.

February 14, 2005

Interior Urged to Seek Broad Input to Develop Next OCS Leasing Program

The Interior Department should keep “all options on the table” when choosing the timing and location of the lease sales to be included in the next five-year Outer Continental Shelf (OCS) leasing program for 2007-2012, five oil and natural gas groups told Interior Secretary Gale Norton.

February 11, 2005

BP Plans Galveston LNG Terminal; Sees LNG Supply as Key to Success

BP has purchased a land lease option from the Port of Galveston for a planned liquefied natural gas (LNG) import terminal on Pelican Island, which is about five miles north of Galveston, TX. A BP spokesman said the project is in the early planning stages but about 1.2 Bcf/d of sendout capacity is expected and there is enough space at the site for a large expansion.

September 27, 2004

BP Plans Galveston LNG Terminal; Sees LNG Supply as Key to Success

BP has purchased a land lease option from the Port of Galveston for a planned liquefied natural gas (LNG) import terminal on Pelican Island, which is about five miles north of Galveston, TX. A BP spokesman said the project is in the early planning stages but about 1.2 Bcf/d of sendout capacity is expected and there is enough space at the site for a large expansion.

September 24, 2004