Results

An “evolution” in the uses and managers of gas storage capacity may be leading some industry observers to misinterpret the results of the American Gas Association’s (AGA) weekly storage report and the changes in storage levels over time, according to TXU Chairman David Biegler. However, customers and regulators should rest assured that despite the increasing variety of uses for storage, it remains a secure source of supply for the traditional utility, he said.

American Electric Power highlighted the benefits of wholesale energy marketing in its second quarter financial results, which came in at $0.89 per share, an 85% increase from the same quarter in 2000. Wall Street had expected earning of 70-89 cents/share, with a consensus estimate of 78 cents/share, according to Thomson Financial/First Call. Revenue increased 78% to $14 billion.

Barrett Resources Corp. unveiled its second quarter 2001 results Wednesday, which showed a strong increase over the equivalent time frame from 2000 due primarily to its gas business in the Rocky Mountains. The company reported net income of $55.1 million ($1.61 per diluted share) for the quarter that ended June 30, compared to a net loss of $4 million ($0.12 per diluted share) during the second quarter 2000.

Irving, TX-based Magnum Hunter Resources Inc. has completed tests results from two wells at its South Timbalier (ST) 264 platform. The ST 264 A No. 1 well was perforated from 8, 190 feet to 8,224 feet, gravel packed, and tested at rates exceeding 1,000 bbl/d and 2 MMcf/d. The well tested on a 18/64-inch choke with 3,152 psi flowing tubing pressure. The second well, ST 264 A No. 2, was completed from 8,116 feet to 8,174 feet and tested at 2.8 MMcf/d and 200 bbl/d. Flowing tubing pressure was 4,190 psi on a 10/64-inch choke. Magnum Hunter owns 100% working interest in these wells and the associated lease block. Production sales have now begun on ST 264 A No. 2 well and production sales should begin by the end of July on ST 264 A No. 1 well.

Encouraged by the results of recent market tests, El Paso Natural Gas announced two binding open seasons last week for 400-500 MMcf/d of firm transportation capacity on a bi-directional lateral it plans to add to its system within California. It also plans to announce soon additional binding open seasons to expand its mainline.

Encouraged by the results of recent market tests, El Paso Natural Gas announced two binding open seasons yesterday for 400-500 MMcf/d of firm transportation capacity on a bi-directional lateral it plans to add to its system within California. It also plans to announce soon additional binding open seasons to expand its mainline.

Denver-based MarkWest Hydrocarbon Inc. announced preliminary results for three new gas wells in which it holds interests. In eastern Michigan, the Sims 2-7 well was successfully recompleted, testing at 4.4 MMcf/d of sour gas and 400 bbl/d of condensate and natural gas liquids. The well is the second to be connected to the Au Gres gas plant, modified by MarkWest and its partners in 2000. The well is scheduled to be on production by mid-July. In western Michigan, MarkWest and its partners have made two gas discoveries. The previously drilled Victory 32, in which MarkWest owns 8.5%, successfully tested before being shut in for pipeline connection. The reef play is only a few miles from the company’s sour gas pipeline. The third well, the Victory 21, in which MarkWest holds a 14.6% interest, found a reef and is shut in awaiting equipment to complete and test the well.

Results of the latest fracing in a relatively shallow (2,000-foot-deep) exploration well near Delano in California’s southern central valley indicate a horizontal drilling program is going to be needed to prove the potential of what Tri-Valley Oil and Gas Corp. is calling the far West’s largest natural gas field ever.

Results of the latest fracing in a relatively shallow (2,000-foot-deep) exploration well near Delano in California’s southern central valley indicate a horizontal drilling program is going to be needed to prove the potential of what Tri-Valley Oil and Gas Corp. is calling the far West’s largest natural gas field ever.