Shelf

The Interior Department’s Minerals Management Service is seeking to update its regulations involving pipelines and pipeline rights-of-way (ROW) on the federal Outer Continental Shelf (OCS). The regulations were last revised in 1988.

The Interior Department’s Minerals Management Service is seeking to update its regulations involving pipelines and pipeline rights-of-way (ROW) on the federal Outer Continental Shelf (OCS). The regulations were last revised in 1988.

The Senate passed comprehensive energy legislation (HR 6) late Thursday that is considerably more attractive to oil and natural gas producers and electric utilities than it was a few hours earlier that day.

The Minerals Management Service (MMS) in February plans to hold the first oil and natural gas lease sale in the Chukchi Sea Outer Continental Shelf (OCS) offshore Alaska in 17 years, a region estimated to hold 15 bbl of oil and 76 Tcf of gas.

New Orleans-based McMoRan Exploration Co. expanded its position in the Gulf of Mexico after completing its purchase of the Gulf of Mexico Outer Continental Shelf (OCS) properties of Newfield Exploration Co. for $1.08 billion (see NGI, June 25). The properties include 124 fields on 148 offshore blocks that produced 260 MMcfe/d in 2Q2007. Proved reserves as of July 1 are estimated at 323 Bcfe, which is 70% weighted to natural gas. About 90% of the proved reserves for the acquired properties were based on estimates by Ryder Scott Co. LP. McMoRan acquired 1.3 million gross acres of offshore leases and a 50% interest in Newfield’s nonproducing exploration leases on the OCS. It also acquired some of Newfield’s interests in leases associated with its Treasure Island prospect inventory. McMoRan said it is retaining personnel and contractors who have supported Newfield’s management of the acquired properties. In addition, McMoRan and Newfield plan to jointly pursue exploration activities on nonproducing leases on the OCS held by Newfield.

The Minerals Management Service (MMS) in February plans to hold the first oil and natural gas lease sale in the Chukchi Sea Outer Continental Shelf (OCS) in 17 years, a region estimated to hold 15 bbl of oil and 76 Tcf of gas.

New Orleans-based McMoRan Exploration Co. expanded its position in the Gulf of Mexico after completing its purchase of the Gulf of Mexico Outer Continental Shelf (OCS) properties of Newfield Exploration Co. for $1.08 billion (see Daily GPI, June 22).

Pogo Producing Co. has agreed to sell its remaining Gulf of Mexico (GOM) shelf properties to Energy XXI (Bermuda) Ltd. (EXXI) for $419.5 million. Pogo said its strategic alternatives process, including the sale or merger of the company and various assets, is ongoing. The properties sold to EXXI include 28 fields currently producing 7,400 boe/d net, and with net proved reserves of 20 MMboe. About 62% of the production and 70% of the reserves are oil. On a reserves basis, 73% of the properties are operated and 74% are proved developed. Offshore leases included in the purchase agreement total nearly 282,000 gross acres (91,600 net acres). The acquisition, which is expected to close by June 1, will boost EXXI’s current production run rate by more than 40% and its proved reserves base by about 50%, said CEO John Schiller. EXXI’s properties are primarily located in the GOM and Gulf Coast onshore. The South Timbalier 21 Field, six miles offshore Lafourche Parish, LA, is its largest single asset. Pogo has been working to sell off assets and possibly sell the company since last December after being pressured by equity fund Third Point LLC, its largest shareholder (see NGI, Dec. 4, 2006).

Pogo Producing Co., pressured by a major shareholder to realign the company, on Tuesday agreed to sell its remaining Gulf of Mexico (GOM) shelf properties to Energy XXI (Bermuda) Ltd. (EXXI) for $419.5 million. Pogo said its strategic alternatives process, including the sale or merger of the company and various assets, is ongoing.