Forest Oil Corp. of Denver reported a significant gas discoveryat High Island 116 in the Gulf of Mexico. High Island 116 is 54.75%owned and operated by Forest and 45.25% owned by Louis DreyfusNatural Gas Corp. Initial production from the recently drilled B-2well is expected in November. Forest Oil is engaged in theacquisition, exploration, development, production and marketing ofgas and crude oil in North America. Forest’s principal reserves andproducing properties are in the United States in the Gulf ofMexico, Louisiana, Texas and Wyoming and in Canada in Alberta andthe Northwest Territories.
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AGL Income Hit by Sales Customer Exodus
While AGL Resources reported markedly improved results for itsthird fiscal quarter ended June 30, the company said returns werehurt by costs due to the rapid pace at which Atlanta Gas Lightcustomers have chosen alternate suppliers.
AGL Income Hit by Sales Customer Exodus
While AGL Resources reported markedly improved results for itsthird fiscal quarter ended June 30, the company said returns werehurt by costs due to the rapid pace at which Atlanta Gas LightCustomers have chosen alternate suppliers.
Transportation Notes
NGPL reported experiencing an unexpected pipeline outageSaturday south of Station 304 on the Gulf Coast Mainline. Untilfurther notice NGPL is unable to flow volumes from six receiptpoints in Panola County, TX.
Semco’s System Mishap Destroys Two Homes
Multiple fires were reported last Tuesday afternoon in BattleCreek, MI, as an “incident” at Semco’s Battle Creek gas systemresulted in two destroyed homes and extensive residential damage.Two people were treated at the scene for smoke inhalation, Semcosaid. One report said the incident occurred when a high-pressureline was mistakenly connected to a low-pressure residential line.
Transportation Notes
A 270 MMcf/d reduction in San Juan Basin supply persisted intothe weekend-and possibly beyond-as El Paso reported it had founddamage to internal rotating components in its Blanco Plant’s “D”turbine that would require removal and inspection. The plant hadbeen scheduled to resume full operation Thursday. If the parts canbe repaired and reused, the turbine should return to service May31, El Paso said. But if the parts must be replaced, the projectedreturn date is June 5.
Producers Suffer a Monumentally Forgettable Quarter
While most large producers reported net income in the positivecolumn in the first quarter of 1998, it was not a quarter most willwant to remember, as returns compared to the first quarter of 1999dropped anywhere from Exxon’s relatively conservative 44% to 81%down for Enron Oil and Gas or a drop from $177 million in earningsin 1Q’98 for Occidental Petroleum to a $70 million loss in 1Q’99.
A Monumentally Forgettable 1Q
Texaco reported a 60% drop and Phillips registered an 89%decline in first quarter net income, excluding special items,compared to the first quarter of 1998. While the first quarterdecline in crude and natural gas prices was blamed for the earningsfall-off, Texaco Chairman Peter I. Bijur found a positive sign forthe rest of the year in the fact that “prices have strengthenedsignificantly.”
A Monumentally Forgettable Quarter
Texaco reported a 60% drop and Phillips registered an 89%decline in first quarter net income, excluding special items,compared to the first quarter of 1998. While the first quarterdecline in crude and natural gas prices was blamed for the earningsfall-off, Texaco Chairman Peter I. Bijur found a positive sign forthe rest of the year in the fact that “prices have strengthenedsignificantly.”
Chevron Joins the 1Q99 Loss Crowd
Chevron announced last Thursday it lost 35% of its profitscompared to the same period in 1998. The company reported a netincome of $329 million or $0.50/diluted share versus $507 millionor $0.77/diluted share in 1998’s first quarter. The oil and gascompany sold oil at an average of under $10/barrel (a 20% drop form1Q98 prices) and gas at an average of $1.63/Mcf (a 22% drop from 1Q98).