Successfully

Calgary-based Canadian 88 Energy Corp. has successfully drilled a significant deep natural gas well in Western Alberta to a depth of 15,709 feet. The well is a stepout into the prolific Blackstone Devonian Swan Hills gas pool and log results indicate 98 feet of highly porous dolomite gas pay, averaging 10% porosity analogous to other wells in the pool. The well, located about 1.9 miles from other wells in the Blackstone pool, encountered the top of the gas pay 246 feet higher than any previous well. Canadian 88 expects to have more information when the well is completed and on production within six months. The Blackstone pool, which is 150 miles northwest of Calgary, was discovered in 1984 and has produced 404 Bcf of sales gas from three wells to date, with an estimated 355 Bcf of sales gas remaining. Two wells are currently on production in the pool, each producing at a rate of approximately 50 MMcf/d.

Calgary-based Canadian 88 Energy Corp. said Thursday it has successfully drilled a significant deep natural gas well in Western Alberta to a depth of 15,709 feet. The well is a stepout into the prolific Blackstone Devonian Swan Hills gas pool and log results indicate 98 feet of highly porous dolomite gas pay, averaging 10% porosity analogous to other wells in the pool.

A publicly held independent, San Diego, CA-based Royale Energy, announced Tuesday it successfully drilled a new well in the historically heavily drilled dry gas Rio Vista field in the Sacramento Basin in eastern Contra Costa County. No flow rates were given, but two earlier wells in the vicinity drilled last year are producing 2 MMcf/d collectively, said Don Hosmer, a Royale Energy executive in San Diego.

Leaping another hurdle Tuesday en route to a successfully completed merger, FirstEnergy Corp.and GPU Inc. announced they have reached a stipulated settlement with several parties in their pending merger case, and have filed the agreement with the Pennsylvania Public Utility Commission (PUC).

Pure Resources Inc. announced Wednesday that its subsidiary, Pure Resources II Inc., has successfully completed its initial tender offer and subsequent offering period for all of the outstanding shares of Hallwood Energy Corp. common stock at a price of $12.50 per share and all the outstanding shares of Series A Cumulative Preferred Stock of Hallwood Energy at a price of $10.84 per share. As of May 15, Pure Resources reported that it had accepted for payment approximately 86% of Hallwood Energy’s common stock and 81% of the company’s Series A Cumulative Preferred Stock. Pure Resources first reported the $268 million acquisition of Hallwood Energy in early April (see Daily GPI, April 2). The companies said completion of the merger would occur as soon as practicable. Pure Resources is an independent exploration and production company that develops and produces oil and natural gas in the Permian Basin, the San Juan Basin, the Gulf Coast, and the Gulf of Mexico. Denver-based Hallwood Energy is a public oil and gas company with properties primarily located in the Permian Basin, the San Juan Basin, South Texas and onshore South Louisiana.

After navigating California regulatory maze successfully withsome precedent-setting environmental planning, the backers of thefirst new power plant slated for electron-starved San Diego Countystill have some difficult decisions ahead regarding gas supply forthe 500-MW Otay Mesa generating plant.

The natural gas business of the future is tied to three things:assets, knowledge and its customers, and the companies that knowhow to merge the three successfully will rise above the crowd,Linda Cook, CEO of Shell Gas and Power, told delegates last week atthe GasTech 2000 conference in Houston.

The natural gas business of the future is tied to three things:assets, knowledge and its customers, and the companies that knowhow to merge the three successfully will rise above the crowd,Linda Cook, CEO of Shell Gas and Power, told delegates yesterday atthe GasTech 2000 conference in Houston.

After navigating California regulatory maze successfully withsome precedent-setting environmental planning, the backers of thefirst new power plant slated for electron-starved San Diego Countystill have some difficult decisions ahead regarding gas supply forthe 500-MW Otay Mesa generating plant.