South

With the prospect for record supplies in storage and an added almost 400 MMcf/d capacity increase in the south, California’s natural gas prospects are distinctly upbeat this summer, compared with a year ago, according to the California Energy Commission’s chief natural gas expert watching the industry in the West.

With the prospect for record supplies in storage and an added almost 400 MMcf/d capacity increase in the south, California’s natural gas prospects are distinctly upbeat this summer, compared with a year ago, according to the California Energy Commission’s chief natural gas expert watching the industry in the West.

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.

One man was still missing late Friday afternoon after a natural gas drilling rig, operating about 26 miles south of Freeport, TX, had what the companies involved called a “well control incident” in the pre-dawn hours. Global Marine Inc. and Marine Drilling Cos., which had 40 people on the rig, reported that 37 men and two women were evacuated from Marine Drilling’s “Marine 4” rig in two lifeboats following the blowout.. A supervisor was reportedly missing, and aggressive search operations were under way by the U.S. Coast Guard.

Gulf South said unscheduled maintenance that began Monday on unit #3 at Bistineau (LA) Station, originally expected to be wrapped up Wednesday afternoon, has been extended through Friday. The work is reducing injection capacity at the pipeline’s Bistineau Storage Facility by 75 MMcf/d.

Magnum Hunter Resources Inc., headquartered in Irving, TX, as begun production from one new well drilled at South Timbalier Block 264 in the offshore Gulf of Mexico at a rate of 6.5 MMcf/d and 185 bbl/d. The well, operated by Magnum Hunter, was drilled to a depth of 7,494 feet and logged 80 feet of gross gas pay. Two other wells are in the process of being completed on the newly installed four-slot platform, and additional development is planned later this year, with a second platform also being considered. Production is connected to Magnum Hunter’s 50% owned and operated Block 265 main processing platform, which also processes gas from the company’s 50% owned Block 250. The combined gross production at this facility is now approximately 28 MMcf/d and 500 bbl/d.

Texas Eastern will require the shut-in of all production upstream of the Provident City Plant on its Wilcox System in the South Texas Zone starting Tuesday due to anomaly investigations and the subsequent pipe repair needed. The work is expected to be completed sometime Saturday in order for gas flow to resume Sunday.

Transco reported being notified that the North Terrebonne Gas Processing Plant in South Louisiana was able to resume operations over the weekend. The plant had shut down May 10 due to a propane leak on the suction side of one of the refrigeration compressors. Its operators indicated to Transco “that restart of the plant was delayed due to problems encountered in starting up the plant’s other refrigeration compressor. We are still experiencing some problems with this compressor. As a result of the plant’s restart, delivery points on Transco will see a cutback in the recent buildup of Btu content that started when the plant went down.

A study unveiled in Anchorage this week revealed that south central Alaska could face natural gas shortages in just a few years unless new reserves are found. The report, issued by the Anchorage Economic Development Corp., found that the area’s short-term energy requirements are secure, but by the end of the decade, the region will have problems in winter when energy demand is highest.