Total

Looking ahead to 2004, Kerr-McGee Corp. said total capital expenditures for the company next year are budgeted at $915 million with an additional $300 million for worldwide exploration expense.

Canadian Superior Energy bought two exploration licences for a total of 370,881 acres offshore Nova Scotia from the Canada-Nova Scotia Offshore Petroleum Board for about C$14.2 million. “With the addition of these two new Exploration Licences, Canadian Superior now holds a dominant position offshore Nova Scotia and is one of the largest acreage holders in the area, with interests in 6 exploration licences, totaling 1,293,946 acres,” said company president Greg S. Noval. He said the new properties “complement our existing portfolio of ‘world-class’ prospects offshore Nova Scotia.”

McMoRan Exploration Co.’s JB Mountain Offset, located in South Marsh Island Block 223, has drilled to a total measured depth of 21,896 feet, and wireline logs indicate that the well encountered “significant intervals” of hydrocarbon pay in the Gyrodina sand section.

Moody’s Investors Service on Tuesday said it was maintaining a “developing” outlook on Dynegy Inc. and its subsidiaries following the company’s pricing for $1.45 billion of new second priority senior secured notes and $175 million of convertible subordinated debentures (see Daily GPI, Aug. 4).

A total of 938 natural gas wells producing about 250 MMcf/d from the Wabiskaw-McMurray formation in the Athabasca Oil Sands Area of northeastern Alberta will be shut in on Sept. 1 to preserve crude bitumen production unless gas producers file temporary exemption requests with the Alberta Energy and Utilities Board (EUB). The exemptions would only be granted if the producers can prove their gas production will not have a negative impact on bitumen production.

Tractebel LNG North America’s deliveries of LNG to all U.S. terminals have risen 65% for the first half of 2003, versus the first half of 2002. A total of 40 cargoes carrying about 95.3 Bcf were delivered in the first six months to terminals at Everett, MA, Lake Charles, LA, Elba Island, GA and Penuelas, Puerto Rico, compared to 26 cargoes in 2002.

Forecasting another strong storage refill total for this week despite Hurricane Claudette’s shut-ins, Stephen Smith Energy Associates sees the natural gas storage deficit continuing to drop and pressures continuing to move prices down.

El Paso Corp. has formalized an agreement with officials in California, Washington, Oregon and Nevada to resolve the principal litigation and claims following the western power crisis two years ago. The formal settlement, announced on Thursday, was proposed in March (see NGI, March 24). On Friday, the participants took the final procedural step as well, which was required to ensure the settlement is completed.

Houston-based EOG Resources Inc.’s total North American natural gas production rose 2.6% in the first quarter compared with a year ago, as Canadian production jumped 8.1% to 158 MMcf/d on favorable results from its shallow drilling program and U.S. gas production rose 1.1% to 642 MMcf/d. The company also enjoyed a 163% increase in domestic natural gas prices during the quarter compared with 1Q2002.