River

Successful drilling programs in East Texas, the Arkoma Basin and the River Ridge discovery in New Mexico helped Southwestern Energy Co. grow its natural gas and oil production 25% in the second quarter. The Houston-based independent reported its production reached 12.6 Bcfe in the quarter, up from 10.1 Bcfe a year earlier. Output was also up sequentially from the first quarter’s 11.4 Bcfe.

Kern River reported being informed of a force majeure situation on the Jonah Gas Gathering System behind the Opal (WY) Plant. The Jonah posting was quoted as saying the force majeure event began late Friday and continued through Monday due to a failure of the after cooler heat exchanger at the Luman #1 compressor. “Due to length of downtime, Jonah’s deliveries to Opal were below scheduled nominations” on the above dates, including Cycle III cuts for Monday’s gas day, according to the Jonah notice. Despite the Jonah producers expecting the force majeure to be extended through Thursday because of a delay in receiving the replacement unit, a spokesman for plant operator Williams Field Services said Opal operations haven’t been materially affected. The plant was expecting about 974 MMcf/d of throughput Monday, he said, which is close to the normal 1 Bcf/d or so.

“It is imperative that operators take delivery of quantities that are scheduled immediately,” Kern River said in a Monday bulletin board notice noting that the pipeline was “operating with extremely high linepack due to excessive banking over the weekend.” It also encouraged the scheduling of due-customer imbalance paybacks on an as-available basis.

Fortuna Energy Inc. has drilled two successful Black River gas wells in the Appalachia, the first two operated wells of its recently acquired New York properties. The Talisman Energy Inc. subsidiary said the first well, Fortuna Ganung Hz, tested a non-producing structure in Schuyler County. Despite some operational problems, the well still tested at rates up to 2.4 MMcf/d, and plans are under way to tie the well into a local gathering system. The second well, Fortuna Konstantinedes Hz, was drilled in Chemung County. After completion, the well flowed at rates up to 10.4 MMcf/d and is currently shut-in for a pressure buildup test. Work is under way to have the well tied into the Columbia high-pressure transmission system by the end of the year. The third well, Hepfner, is currently drilling. Two additional rigs also are being mobilized, and a fourth well is expected to spud in September and another in mid-October. Additional projects under way include the installation of three compressors, all expected to be on stream by year’s end and the tie-in of the Fortuna Pace well, which should be on stream in early 2004 at a rate of 5 MMcf/d. Fortuna’s production in July was 67 MMcf/d, and it plans to spend US$46 million in the area in 2003, drilling eight wells.

The fact that Kern River’s 900 MMcf/d expansion has been running full right from its opening day in May is a clear indication of the need for another major pipeline, and soon, according to experts addressing members of the Colorado Oil and Gas Association (COGA) in Denver Wednesday.

The fact that Kern River’s 900 MMcf/d expansion has been 90% full almost from its opening in May is a clear indication of the need for another major pipeline, and soon, according to experts addressing members of the Colorado Oil and Gas Association (COGA) in Denver Wednesday.

Noting that it is currently operating with “extremely low linepack,” Kern River said Tuesday it is imperative that operators do not take delivery of more quantities than are scheduled. If drafting continues to be a problem, the pipeline said, further action will be taken.

Kern River reported late Monday afternoon being informed by Duke Energy Field Services that Jonah Field, behind the Opal Plant, is experiencing production problems due to pigging.

Adding to ongoing cuts of alternate nominations at its Green River Compressor Station (see Daily GPI, May 16), effective Wednesday Northwest will expand such cuts to gas flowing north through stations located south of the Kemmerer (WY) Compressor Station in the Timely Cycle as necessary. Northwest began maintenance work Monday on its Pocatello and Soda Springs Compressor Stations, which limits net throughput north through Kemmerer to 423,000 Dth/d until June 21. In addition, Transwestern is in the second phase of its San Juan Lateral maintenance, which is contributing to an increase in nominations north through Kemmerer, Northwest said. If nominations are below 423,000 Dth/d through Kemmerer and operational conditions permit, the pipeline will evaluate on a daily basis whether to allow alternate gas to flow north through these points.