Anadarko Petroleum Corp. has discovered oil at its West Tonga prospect on Green Canyon block 726 in the deepwater Gulf of Mexico (GOM). The discovery well, located in 4,700 feet of water, was drilled to a total depth of 25,680 feet and encountered more than 350 feet of net oil pay in three high-quality subsalt Miocene sands. An Anadarko spokesman said there will likely be some associated gas with the discovery, but he said it was predominately oil. Anadarko operates West Tonga with a 37.5% working interest. Partners in the discovery include StatoilHydro with a 25% working interest, Chevron Corp. with a 20.5% working interest and Shell Exploration with a 17% working interest. “The West Tonga discovery continues the success of our deepwater Gulf of Mexico exploration program and further illustrates the value of our extensive hub-and-spoke infrastructure,” said Bob Daniels, senior vice president of Worldwide Exploration. Anadarko focuses on deepwater prospects in the Miocene and Lower Tertiary plays of the GOM that have estimated recoverable resources of more than 100 MMboe.
Prospect
Articles from Prospect
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.
Fitch Sees Stable Outlook for Oil and Gas — For Now
Citing the prospect of continuing high and volatile commodity prices, Fitch Ratings’ 2007 outlook for the U.S. power and gas industries is generally stable, particularly in the competitive part of the industry. Not so fortunate are the regulated gas and electric sectors, which face “a challenging environment.” And no company should become complacent. Risks, demand and interest rates could change over the longer term.
LDC Hedging Ranges From A Little to A Lot
The current disparity between spot gas prices and those on the Nymex strip would appear to make financial hedges a rather unappealing prospect for gas buyers, such as local distribution companies (LDCs). However, hedging isn’t an arbitrage play for LDCs, but rather a means to price risk management. While it might not spare a buck it’s really intended to avoid a surprise.
CA Governor Renominates Desmond to Head Energy Commission
Ignoring the prospect of a pitched political battle, California Gov. Arnold Schwarzenegger Thursday renominated the chairman of the California Energy Commission (CEC), Joseph Desmond, for a full six-year term. Leaders in the Democratic-controlled state legislature already have indicated publicly they will block the confirmation of Desmond, a former Silicon Valley business leader who has served as Schwarzenegger’s chief energy adviser.
Sunbelt States Gear Up for Gas Bill Winter of Discontent
Arizona regulators are warning customers about higher retail natural gas bills this winter and the prospect of historically high charges for natural gas for the foreseeable future. The five-member elected Arizona Corporation Commission (ACC) put its collective thoughts in an editorial distributed to news media throughout the state last Monday.
Growing Supply Worry Fuels Gains at Most Points
Weather fundamentals are weakening a bit, but the prospect of much higher prices this winter coupled with a tight supply situation kept quotes on the rise Wednesday at nearly all points. A few flat to lower points kept the gains from extending across the board.
AGA to Ask Bush Administration for Greater OCS Access for Producers
With the current sharp upswing in wholesale natural gas prices and the continuing prospect of further increases this heating season, the American Gas Association (AGA) on Tuesday said it plans to ask the Bush administration to open up areas of the federal Outer Continental Shelf (OCS) that are off-limits to oil and gas producers.
Avista Asks for Gas Cost Rate Hike in Oregon
With wholesale prices tripling over the past four years, and the prospect for $8 natural gas, Spokane, WA-based Avista Corp. announced Tuesday it has filed with the Oregon Public Utility Commission for a $18.9 million natural gas rate hike to cover increased wholesale fuel prices. Avista is seeking the rate hike effective Oct. 1, which would mean an average 18% jump for its 90,000 gas distribution utility customers in the state.
Alaska’s Murkowski Sees Progress on Natural Gas Pipeline Project
Calling the construction of a natural gas pipeline “our greatest prospect for new jobs and prosperity,” Gov. Frank Murkowski told Alaskans Wednesday he expected to be able to soon deliver to the legislature one or more Stranded Gas contracts by applicants seeking to build pipelines to tap the state’s huge gas resources.
