Shallow

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.

A rich pocket of natural gas in the shallow waters off the coast of Mississippi is paying off handsomely for Chevron U.S.A. Production Co., which reports that production has more than tripled this year in its Viosca Knoll Carbonate Trend to 230 MMcf/d, up from 60 MMcf/d in 1999.

A rich pocket of natural gas in the shallow waters off the coastof Mississippi is paying off handsomely for Chevron U.S.A.Production Co., which said yesterday that production has more thantripled this year in its Viosca Knoll Carbonate Trend to 230MMcf/d, up from 60 MMcf/d in 1999.

EEX Corp. agreed to trade substantially all of its Permian Basinproperties in West Texas and Eastern New Mexico for the shallowwater properties located off the coast of Texas and Louisiana ofEnergen Resources Corp., the oil and gas subsidiary of EnergenCorp. In addition to the shelf properties, EEX will receive $9million in cash. “This trade is another step in our strategy toexit the onshore business and focus on offshore Gulf of Mexico.These new properties will improve near-term production of naturalgas and will contribute to improving our cost structure by loweringper unit production costs while eliminating overhead costs relatedto onshore properties,” said Tom Hamilton, EEX CEO.