Tested

Carrizo Oil & Gas Inc., based in Houston, said its recently drilled LaRose Prospect well in Lafourche Parish, LA has tested at a gross rate of 11,650 Mcf/d and 1,466 bbl/d of condensate on a 16/64-inch choke. Flowing tubing pressure was approximately 9,740 pounds per square inch from 18 net feet of pay from the deepest sand interval in the well. The well was drilled to a total depth of 15,300 feet and logged more than 100 net feet of apparent pay in three intervals at depths ranging from 13,500 feet to 15,300 feet. Carrizo is operator and owns a 40% working interest in the well, and expects the well to begin production in about 60 days. The initial gross production rate is expected to be about 20,000 Mcfe/d. Carrizo holds approximately 1,150 acres in the LaRose Prospect and said that additional follow-up drilling will be needed to fully develop the prospect. Carrizo also announced that it had completed the sale of its interest in Michael Petroleum Corp., with total proceeds estimated at $5.5-5.7 million.

Burlington Resources Inc. has completed and tested the fifthDeep Madison formation well, the Bighorn 6-27 at the Madden Fieldin central Wyoming. Burlington, headquartered in Houston, operatesthe well and holds a 49% working interest. The well reached a totaldepth of 25,855 feet in early January and now, Burlington intendsto move to a two-rig development drilling program in the secondquarter. BR currently operates four wells producing from the deepMadison formation, each capable of gross production in excess of 50MMcf/d. Current gross production is approximately 130 MMcf/d fromthe Madison formation, but production is constrained by processingcapacity at the Lost Cabin Gas Plant in Lysite, WY. The plant’sthird train, now under construction, is scheduled for completion inlate 2002, which will allow gross production to increase to a totalof 310 MMcf/d.

Spot price records could be tested again this week in SouthernCalifornia, where the market yesterday nearly mimicked what tookplace in early December when prices reached a new record at$58.76/MMBtu. SoCal started the day around $20 and then soaredabove $40 before coming back down to the low $30s. Strong heatingand power generation demand and stringent balancing requirements onSouthern California Gas’ system due to low storage levels, promptedthe market move.

“Unprecedented demand” for gas pushed Questar’s storage,transportation and distribution system to the limit in November,the company said last week. The Salt Lake City-based LDC was forcedto curtail service to some industrial customers during the month tomaintain deliveries to residential customers.

Led by local buying, the natural gas futures market made twodistinctive thrusts higher Friday, as traders set their sights onresistance at $2.90. However it was not to be and after the secondsurge was thwarted shortly after noon (CST), the market tumbledlower amid light profit taking and position squaring. Oddly, theprompt month April suffered the smallest declines of any contract,slipping 1.1 cents to finish the week at $2.836. By comparison, theMay contract slipped 1.4 cents lower and the 12-month strip gaveback 1.5 cents. Estimated volume was moderate, with 69,063contracts changing hands.

Apache Corp. announced a Canadian gas discovery that tested at31 MMcf/d British Columbia on acreage acquired from Shell Canadalate last year. “Proved reserves acquired in the Shell Canadatransaction were mainly oil, but the major upside lies in gasexploration on nearly 300,000 net acres and in the staff of highlymotivated technical people who joined Apache,” said ApachePresident G. Steven Farris. Apache holds a 37% working interest inthe Ladyfern area producer. Murphy Oil, the operator, holds 33% andBeau Canada Exploration has the remaining 30% working interest.”Pressure build-up tests are under way to help in determining theapproximate size of this discovery, but it’s safe to say it has thepotential to be a very large gas field,” Farris said. Apache andits partners have under lease more than 25,000 acres in theLadyfern area and are presently drilling two additional wildcatwells on separate structures. Apache and partners will build aneight-inch-diameter pipeline 15 miles to the Beau Canada pipelineto take Ladyfern gas to Apache’s Hamburg gas plant.

Apache Corp. announced a Canadian gas discovery that tested at31 MMcf/d British Columbia on acreage acquired from Shell Canadalate last year.

Capstone Turbine Corp., developer and manufacturer ofmicroturbine power generators, says it has successfully tested a 30kW unit that can be used at the wellhead to generate power usingsour gas.

Capstone Turbine Corp., developer and manufacturer ofmicroturbine power generators, says it has successfully tested a 30kW unit that can be used at the wellhead to generate power usingsour gas.