Dominion Exploration & Production, Inc. said Tuesday that it will assume operation of more than 800 coal-bed methane wells located in Tuscaloosa, AL, from its partner, ConocoPhillips. Dominion said the effective date of the transaction is Dec. 31, 2002.
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Shell Adds Another Mars Basin Discovery
Shell Exploration & Production Co. (SEPCo) has announced another deep water discovery in its Mars Basin. The company said last Thursday it has encountered oil and gas at its Deimos prospect located in approximately 3,000 feet of water in Mississippi Canyon Block 806. SEPCo, as operator, has a 72% interest in the prospect; BP has a 28% interest.
Shell Adds Another Mars Basin Discovery
Shell Exploration & Production Co. (SEPCo) has announced another deep water discovery in its Mars Basin. The company said Thursday it has encountered oil and gas at its Deimos prospect located in approximately 3,000 feet of water in Mississippi Canyon Block 806. SEPCo, as operator, has a 72% interest in the prospect; BP has a 28% interest.
Rush Still on to Build LNG Terminals in Bahamas
Despite falling gas prices, declining demand and increasing production, the rush is still on to bring more liquefied natural gas (LNG) to the United States. Two El Paso Corp. subsidiaries are conducting separate open seasons to determine non-binding customer interest in transportation capacity on pipelines that will transport natural gas from El Paso Global LNG’s planned terminal on Grand Bahama Island to Florida.
Transportation Notes
Due to high acid gas volumes at the inlet of Pine River Gas Plant impacting some shippers’ firm entitlement/production, Westcoast reduced the plant’s acid gas capacity volume Thursday morning to about 91.4 MMcf/d until further notice.
Burlington Canada Sets Environmental Standards for Sour Gas Production & Transport
The Calgary arm of a U.S.-based producer has found a key to keep access to the hazardous 30% of western Canadian natural gas – bend over backwards to make peace with increasingly fearful communities. Burlington Resources Canada Energy Ltd., a wholly-owned subsidiary of its Houston namesake, set a new standard for securing co-operation with development of “sour” gas, laced with hazardous hydrogen-sulphide.
FERC Affirms Jurisdiction over U.S. LNG Import Facilities
FERC last week denied a petition in which Dynegy LNG Production Terminal L.P. asked the Commission to disclaim jurisdiction over the siting, construction and operation of the company’s planned liquefied natural gas (LNG) import facility in Hackberry, LA.
FERC Affirms Jurisdiction over U.S. LNG Import Facilities
FERC has denied a petition in which Dynegy LNG Production Terminal L.P. asked the Commission to disclaim jurisdiction over the siting, construction and operation of the company’s planned liquefied natural gas (LNG) import facility in Hackberry, LA.
Financial Briefs
Houston-based Swift Energy Co. reported Wednesday that production increased to 11.7 Bcfe in the third quarter of 2001, which marks an 11% increase from the third quarter of 2000. However, due to significantly lower oil and natural gas prices, the company reported earnings of $7.4 million, $0.29 per diluted share, down from $15.8 million, or $0.66 per diluted share, in the same quarter last year. Swift Energy said revenues in the third quarter were $41.2 million, down from $49.5 million, and cash flows from operations, before changes in working capital, declined 29% to $25.7 million ($1.04 per share) compared to $36.2 million ($1.69 per share) in the same quarter last year. The company said third quarter results include a gain of $1.6 million resulting from the company’s marking-to-market through earnings its oil and gas price derivatives. “Despite the current market prices, we are very optimistic about the outlook for the company’s future, and we believe that this environment can offer additional opportunities for growth,” said Terry Swift, CEO of Swift Energy. “The results of the 2001 exploration program both domestically and in New Zealand have been important to the company, resulting in additional prospects for growth in the coming year. We believe that we can further enhance these productivity gains through focused exploitation and acquisitions under the changing market environment.” During the quarter, the company said it participated in three operated and two non-operated exploratory wells. One of these operated wells is producing and another is drilling, while the third has been plugged and abandoned, as have both of the non-operated wells.
DOE Picks Six Projects to Study Methane Hydrates
The Department of Energy (DOE) says that it will fund the bulk of the costs for six new projects to study the exploration and production potential of methane hydrates in the Gulf of Mexico and Alaska’s North Slope region. The total cost of the projects, which will be performed by the energy industry, universities and outside research institutions, has been valued at almost $48 million.