Mustang

Oneok, Inc., announced Friday it has entered into an agreement to sell certain midstream assets for $92 million to an affiliate of Mustang Fuel Corp., a private, independent oil and gas company, headquartered in Oklahoma City.

A leak was confirmed at the Mustang Island 762 platform on the Northern Natural Gas-operated Matagorda Offshore Pipeline System off the Texas coast. The point was taken to zero flow, causing the shut-in of about 8,000 MMBtu/d until further notice. Personnel are evaluating the leak for repairs.

Houston-based Vector Energy Corp. recently completed the testing of three wells at its Mustang Island Block 818-L off of the Texas Gulf Coast. The wells tested at a combined rate of 1.6 MMcf/d. The company reported that there are still three wells on the location that need to be tested. “I am excited that finally we have test results from these wells that substantiate the proven reserves we have always anticipated,” said Sam Skipper, CEO of Vector. “I believe the remaining wells will also be very productive. All are exhibiting wellhead shut-in pressures in excess of 4,000 pounds, which is similar to the pressures experienced on the three wells that have been tested. All that remains is for the pipeline to be pigged and then sales can commence.”

Northern Natural Gas said Friday an outage of the Mustang Island757/762 platform offshore Texas, which it operates, was now expectedto extend through the middle of this week; previously it hadanticipated the outage would end Friday night (see Daily GPI, Jan. 5). The associated force majeure isaffecting deliveries into Florida Gas Transmission and Transco.

A Matagorda Offshore Pipeline System 24-inch line leak at theMustang Island 758 delivery point was confirmed Wednesday morning,causing the shut-in of 17 of the 24 producing blocks connected toMOPS. Shippers and operators were being notified around noonWednesday that the outage, affecting a total of 129,743 MMbtu/d,will last about seven days.