Prospect

Denmark-based Maersk Oil has purchased Devon Energy Corp.’s 25% stake in the deepwater Gulf of Mexico Jack prospect in the Lower Tertiary Trend. Maersk in December had agreed to pay $1.3 billion to purchase Devon’s interests in three Lower Tertiary projects: the Jack, St. Malo and Cascade (see Daily GPI, Dec. 23, 2009). However, working interest partners in St. Malo (Chevron Corp.) and Cascade (Petroleo Brasilerio) exercised preferential rights to purchase Devon’s interests (see Daily GPI, Jan. 26). Devon said the aggregate purchase price of its interests in the three prospects remains $1.3 billion; closings are expected by the end of March.

Denmark-based Maersk Oil has purchased Devon Energy Corp.’s 25% stake in the deepwater Gulf of Mexico Jack prospect in the Lower Tertiary Trend. Maersk in December had agreed to pay $1.3 billion to purchase Devon’s interests in three Lower Tertiary projects: the Jack, St. Malo and Cascade (see Daily GPI, Dec. 23, 2009). However, working interest partners in St. Malo (Chevron Corp.) and Cascade (Petroleo Brasilerio) exercised preferential rights to purchase Devon’s interests (see Daily GPI, Jan. 26). Devon said the aggregate purchase price of its interests in the three prospects remains $1.3 billion; closings are expected by the end of March.

Helix Energy Solutions Group Inc. subsidiary Energy Resource Technology GOM (ERT) said it has made a deepwater oil and gas discovery in the Gulf of Mexico (GOM) at its Jake Prospect in Green Canyon Block 490 that it estimated at 50-75 Bcfe gross on a proved, probable and possible basis. The discovery well was drilled to 13,504 feet in 3,740 feet of water and encountered 134 feet of net oil and gas pay in a single sand interval. ERT said the well has been cased and temporarily abandoned for a future subsea completion. First production is estimated in mid-2011. ERT owns a 25% working interest in both the discovery well and Green Canyon Block 490. ERT also recently discovered 20 feet of oil and gas pay at its 75% owned and operated South Timbalier 145 Field. The discovery was drilled to 14,193 feet true vertical depth. That well is currently being completed and is expected to commence production this month.

The prospect of offshore natural gas drilling could gain traction in a few coastal states. In South Carolina lawmakers are expected to endorse soon a pro-exploratory drilling recommendation of a legislative panel; in Florida the issue could come up in a special legislative session next month and drilling advocates are girding for battle, having failed to defeat a drilling moratorium earlier this year; and a Virginia lawmaker is keeping the pressure on for a 2011 lease sale.

The prospect of offshore natural gas drilling could gain traction in a few coastal states. In South Carolina lawmakers are expected to endorse next week a pro-exploratory drilling recommendation of a legislative panel; in Florida drilling advocates are girding for battle next year, having failed to defeat a drilling moratorium earlier this year; and a Virginia lawmaker is keeping the pressure on for a 2011 lease sale.

A Canadian natural gas drilling revival has begun and producers are on the trail of a hot supply development prospect in northern British Columbia, field contractors and provincial mineral rights sales confirm.

A Canadian natural gas drilling revival has begun and producers are on the trail of a hot supply development prospect in northern British Columbia, field contractors and provincial mineral rights sales confirm.

The prospect of a new presidential administration and Congress passing a greenhouse gas (GHG) emissions law next year make it imperative that Northwest utilities sign new 20-year contracts with the federal Bonneville Power Administration (BPA) in order to lock in prices, said a former BPA chief administrator.

The prospect of a new presidential administration and Congress passing a greenhouse gas (GHG) emissions law next year make it imperative that Northwest utilities sign new 20-year contracts with the federal Bonneville Power Administration (BPA) in order to lock in prices, said a former BPA chief administrator.