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Devon Energy recently completed its fourth horizontal well in the Tuscaloosa Marine Shale (TMS) and the initial production test figures show the strongest oil production results of the company’s TMS wells drilled to date” at 384 b/d, according to the Louisiana Department of Natural Resources (DNR).

Denver-based explorer Voyager Oil & Gas Inc. on Tuesday agreed to buy a unit of Australia’s Emerald Oil & Gas NL in a deal that would create a U.S.-based Rocky Mountains operator focused on established and emerging unconventional oil and natural gas plays.

The Texas Commission on Environmental Quality said $18 million in grants is available to businesses, governmental entities, school districts and individuals that replace older medium- or heavy-duty gasoline or diesel vehicles with natural gas vehicles (NGV) or repower the older vehicles with natural gas engines. Applicants must apply for Texas Natural Gas Vehicle Grant Program grants through a participating dealer. A list of participating dealers is available at www.terpgrants.org. The predetermined grant amounts are 60-90% of the incremental cost of the NGVs and engines, and are based on the fuel capacity, usage and weight class of the grant-funded vehicles. Grant applications are accepted on a first-come, first-served basis. Projects must result in at least a 25% reduction of emissions of nitrogen oxides, and grant recipients must commit to operate the grant-funded vehicles in eligible Texas counties for at least 75% of the annual mileage for four years, or 400,000 miles, whichever occurs earlier. Applications will be accepted until May 31, 2013 or until all funds are awarded. For information call (800) 919-TERP (8377).

The Interior Department’s Bureau of Ocean Energy Management (BOEM) has completed a final environmental review that will serve to support decision-making with respect to oil and natural gas lease sales scheduled in the Gulf of Mexico (GOM) over the next five years.

The Commodity Futures Trading Commission (CFTC) Monday issued a notice of proposed rulemaking that re-proposes adding certain provisions to Part 43 of the Commission’s regulations pertaining to block trades in swap contracts.

Directors of Australia-based Eureka Energy Ltd. have rejected a proposal from Fort Worth-based Lonestar Resources Inc. for Eureka to acquire Lonestar for scrip consideration. Eureka said it had expected to reject the proposal when it was received last week. “Nevertheless, over the weekend the company pursued discussions with Lonestar with the objective of securing a proposal on more favorable terms,” Eureka said. “The parties were unable to agree on terms, and consequently Lonestar has withdrawn the proposal.” An offer by Australia’s Aurora Oil & Gas Ltd. to acquire Eureka expires Friday (see Shale Daily, June 11). Both Aurora and Eureka have assets in the Eagle Ford Shale of South Texas, as does Lonestar. On Wednesday Eureka said “it is reasonable to accept” the Aurora offer after previously recommending that shareholders reject it.

TransCanada Corp. has been selected by Shell Canada Ltd. to build and operate the proposed Coastal GasLink project, a large-diameter pipeline that initially would carry more than 1.7 Bcf/d from the gassy Montney, Horn River and Cordova basins in the Dawson Creek, British Columbia (BC) area about 700 kilometers (435 miles) to Shell’s planned 12 million ton/year liquefied natural gas (LNG) export facility near Kitimat, BC.

Japanese chemical manufacturer Kuraray Co. Ltd. announced Tuesday that it plans to take advantage of an abundance of shale gas in the United States and will build a $10.1 million facility in Texas to produce plastic.

FERC’s Office of Enforcement has preliminarily determined that Kansas City, MO-based natural gas distributor Missouri Gas Energy (MGE) violated the agency’s capacity release regulations. The alleged violations involved a total of almost 69 Bcf of capacity.