Shallow

In a deal with Shell Exploration and Production Co., Apache Corp. will acquire 26 mature shallow water fields that cover 50 blocks (209,000 acres) in the Gulf of Mexico as well as interests in two onshore gas plants. Apache, which paid Shell $200 million, will operate 15 of the fields and hold 91% of the production, and will book proved reserves of 124.6 Bcf and 6.6 million bbl, at a cost of approximately $1.22/Mcfe.

In a deal with Shell Exploration and Production Co., Apache Corp. will acquire 26 mature shallow water fields that cover 50 blocks (209,000 acres) in the Gulf of Mexico as well as interests in two onshore gas plants. Apache, which paid Shell $200 million, will operate 15 of the fields and hold 91% of the production, and will book proved reserves of 124.6 Bcf and 6.6 million bbl, at a cost of approximately $1.22/Mcfe.

The Houston Exploration Co. announced Wednesday its first shallow-water deep-shelf discovery at High Island, off the Texas coast near Galveston, which is testing at 20 MMcf/d.

With its Ladyfern field showing a sharp decline last year, Canadian Natural Resources Inc. plans to step up its exploration and production program in a recently acquired region of Alberta, sticking with a strategy to keep its natural gas production in North America on an equal pace with oil.

The Interior Department’s Minerals Management Service (MMS) has proposed incentives to encourage deep-gas production in shallow waters as part of its upcoming Lease Sale 184 in the western Gulf of Mexico, which has been scheduled tentatively for Aug. 21 in New Orleans. This will be the agency’s first scheduled sale under its current five-year leasing program (2002-2007).

A sharp decline in shallow drilling in the Gulf of Mexico and declining rig dayrates led to a 3.1% drop in Global Marine’s worldwide SCORE report, or Summary of Current Offshore Rig Economics, for October 2001 from the September SCORE. The SCORE for the Gulf of Mexico plummeted 16% and is down 13.7% from last October and 33.2% from the five-year average

A sharp decline in shallow drilling in the Gulf of Mexico and declining rig dayrates led to a 3.1% drop in Global Marine’s worldwide SCORE report, or Summary of Current Offshore Rig Economics, for October 2001 from the September SCORE. The SCORE for the Gulf of Mexico plummeted 16% and is down 13.7% from last October and 33.2% from the five-year average

An already bullish California oil/gas developer with both deep-drilling and shallow gas exploration in separate parts of Kern County received another shot of optimism earlier this month on reports that EOG Resources plans to expand its oil drilling program in the general area within 10 or 15 miles of the town of Delano, CA. EOG officials in Denver denied having any such plans.

An already bullish California oil/gas developer with both deep-drilling and shallow gas exploration in separate parts of Kern County received another shot of optimism earlier this month on reports that EOG Resources plans to expand its oil drilling program in the general area within 10 or 15 miles of the town of Delano, CA. EOG officials in Denver denied having any such plans.