Pogo Producing said Friday it is selling its Thailand assets, including about 341 Bcfe of proved reserves, to PTTEP Offshore Investment Co. Ltd and Mitsui Oil Exploration Co. Ltd. for $820 million in cash, which Pogo plans to use to fund acquisitions and capital projects.
Proved
Articles from Proved
GE Unit, Private E&P Acquire 96 Bcf for $147M
GE Commercial Finance Energy Financial Services (EFS) and privately held Locin Oil Corp. have acquired 96 Bcf of net proved gas reserves for $147 million from Equitable Production Co. The assets include 1,200 wells in Pennsylvania and Ohio, and more than 220 proven and probable undeveloped drilling locations have been identified.
GE Unit, Private E&P Company Acquire 96 Bcf for $147M
GE Commercial Finance Energy Financial Services and privately held Locin Oil Corp. said Thursday they have acquired 96 Bcf of net proved gas reserves for $147 million from Equitable Production Co. The assets include 1,200 wells in Pennsylvania and Ohio, and more than 220 proven and probable undeveloped drilling locations have been identified.
Industry Briefs
Peoples Energy Production has purchased 10 Bcfe of proved undeveloped reserves an 10-20 Bcfe of potential additional reserves in East Texas from a private company for $9.5 million. The acquisition includes 5,300 gross acres in the heart of the Cotton Valley/Travis Peak gas trend. Initial development of the acquired reserves, 96% of which are natural gas, will begin in fiscal 2005 with anticipated capital spending on these properties of between $10 million and $15 million of the 2005 capital program, Peoples said. “The acquisition of these properties increases our inventory of low risk drilling opportunities and will help us to achieve our production growth target for fiscal 2005,” said Peoples Energy CEO Thomas M. Patrick. Steven W. Nance, president of Peoples Energy Production said the acquisition “builds on our successful entry into East Texas, a prolific producing province of longer life, low risk reserves, which was accomplished during fiscal 2004.”
Western Adds 60 Bcf of CBM Reserves in San Juan for $82M
Western Gas Resources said it bought about 60 Bcf of proved gas reserves in the San Juan Basin on about 24,000 net acres from an undisclosed seller for $82.2 million. The property currently has about 100 coalbed methane (CBM) wells that are producing 12.6 MMcf/d (9.3 MMcf/d net).
Magnum Hunter, Ultra, Nuevo Report Higher Quarterly Production
Three North American-focused independents — Magnum Hunter Resources Inc., Ultra Petroleum and Nuevo Energy Co. — all saw their fourth quarter 2003 production volumes rise along with earnings. The production gains, they said, set the stage for even stronger results by the end of this year.
Transportation Notes
The latest System Overrun Limitation by Northern Natural Gas proved to be a one-day affair. The SOL was lifted for Friday after being implemented Thursday. NNG, whose normal system weighted temperature at this time of year is 20 degrees F., said the system was averaging 12 degrees Thursday and that was expected to rise to 24 degrees Friday, but then to plunge to 11 and 9 degrees on Saturday and Sunday respectively.
Eastern Prices in Retreat; Heat, Supply Issues Boost West
Eastern markets proved unable to sustain the bullishness of the day before and registered drops ranging from a nickel to 20 cents or so Wednesday. Thanks to heavy air conditioning load in some sections and supply issues, however, the West was able to keep its numbers flat to up more than 20 cents in the Rockies.
NAESB Plans Second Vote on Pipeline Creditworthiness Standards
The debate over creditworthiness standards for gas pipeline service has proved to be too contentious so far for the North American Energy Standards Board (NAESB), which told FERC last week that its Executive Committee failed to endorse the entire set of proposed standards at its May 20 meeting. NAESB had planned to send the matter to FERC unresolved, but in a letter to the Commission on Friday, it asked that its deadline be pushed back to June 15 from June 1 so that it could schedule one last vote on the standards on June 5.
NAESB Plans Second Vote on Pipeline Creditworthiness Standards
The debate over creditworthiness standards for gas pipeline service has proved to be too contentious so far for the North American Energy Standards Board (NAESB), which told FERC last week that its Executive Committee failed to endorse the entire set of proposed standards at its May 20 meeting. NAESB had planned to send the matter to FERC unresolved, but in a letter to the Commission on Friday, it asked that its deadline be pushed back to June 15 from June 1 so that it could schedule one last vote on the standards on June 5.