Proven

May 1 was the first day of full commercial operation of Phase I of the CenterPoint Energy Gas Transmission Carthage-Perryville Pipeline (CP Line), and it has proven a “Mayday” for South Louisiana gas supplies trying to find their way to market, according to a report from Bentek Energy LLC.

In a “very significant step-change” that will double its natural gas-heavy reserves, Houston-based independent Edge Petroleum Corp. has obtained a package of wells, natural gas pipelines and related infrastructure, mostly located in its core area of South Texas, for $320 million cash. Together, the wells are producing at a rate of 31 MMcfe/d, of which about 86% is gas.

Not to put too fine a point on it, but “the bears were again proven wrong” when it comes to exploration and development (E&D) spending, says Raymond James & Associates in its weekly research note. In fact, say the firm’s energy analysts, E&D spending for their selected universe of companies posted 41% growth over 2004.

The old cliche “If it’s not broken, don’t fix it” could double as the motto of ExxonMobil Corp., which plans to keep its proven long-term approach of steady growth with disciplined investment in large energy projects going forward. Who could blame the energy Goliath, which posted more than $36 billion in profit for 2005 — the largest profit for a U.S. company in history (see Daily GPI, Jan. 31).

A month after revising its proven oil and natural gas reserves downward, Stone Energy Corp. said Wednesday it will restate financial results between 2001 and 2Q2005 because of possible lapses in reserves bookings. Stone, which expects to file amended reports by Monday (Nov. 14) said an independent review suggests “inadequate training and understanding” of regulatory requirements and “a tone of optimism and aggressiveness set by management regarding reserve booking.”

Finding a proven, economical way to move natural gas onshore from far out in the North Atlantic has long been a puzzle for the Canadian oil and gas industry, but Husky Energy Inc. may be close to finalizing an agreement to use compressed natural gas (CNG) tankers to transport gas reserves from its White Rose oil prospect, an executive told a Calgary audience last week.

Pogo Producing Co. said it purchased the stock of a private company with about 90 Bcfe of proven West Texas gas reserves for $208 million, including $35 million of assumed debt. The acquisition is expected to be immediately accretive to Pogo’s earnings, cash flow, production and reserves per share, the company said. It expects to finance the acquisition with available cash and bank debt.

Pogo Producing Co. said it purchased the stock of a private company with about 90 Bcfe of proven West Texas gas reserves for $208 million, including $35 million of assumed debt. The acquisition is expected to be immediately accretive to Pogo’s earnings, cash flow, production and reserves per share, the company said. It expects to finance the acquisition with available cash and bank debt.

Kerr-McGee has ramped up development of its Constitution field in the Gulf of Mexico (GOM), which is estimated to have proven and probable reserves of about 110 MMboe. First production is expected by mid-2006, with peak production expected to reach 40,000 bbl/d and 75 MMcf/d in 2007.