Turns

After several weeks of field testing, sponsors of a high-profile,deep-drilling project in the southern end of California’s San JoaquinValley reported Thursday (June 22) “pure, sweet oil” with an APIgravity of 48.6 degrees and associated natural gas with a very highnet Btu content of 1,460 with no water. However, definitiveinformation on the projected volumes is still several weeks away,according to Tri-Valley Oil & Gas Co., operator of the ProjectEkho No. 1 well about 45 miles northwest of Bakersfield, CA.

After several weeks of field testing, sponsors of ahigh-profile, deep-drilling project in the southern end ofCalifornia’s San Joaquin Valley reported Thursday (June 22) “pure,sweet oil” with an API gravity of 48.6 degrees and associatednatural gas with a very high net Btu content of 1,460 with nowater. However, definitive information on the projected volumes isstill several weeks away, according to Tri-Valley Oil & GasCo., operator of the Project Ekho No. 1 well about 45 milesnorthwest of Bakersfield, CA.

After months of being bedeviled by high oil prices, the WhiteHouse has turned its attention to developing an interagency workinggroup to coordinate government’s efforts to help industry achieve a30 Tcf natural gas market by the 2010-2015 period.

After months of zeroing in on high oil prices, the White Househas turned its attention to developing an interagency working groupthat will coordinate government’s efforts to help industry achievea 30 Tcf natural gas market by the 2010-2015 period.

Equitable Resources said its aggressive M&A strategy isbeginning to pay off, as the company revealed a 40% jump in firstquarter 2000 earnings to $39.1 million compared to the same periodlast year. The earnings were higher than Wall Street estimates andmay trigger purchase offers for the company, according to someanalysts.

Mitchell Energy & Development Corp.’s view of the future looked so good from the auction block, the company decided to step down and aggressively grow its gas production. Mitchell had put out the ‘for sale’ sign in early October (see NGI Oct. 11).

In a very terse order, the Federal Energy Regulatory Commissiondenied producers’ request to stay the waiver of the price caps onshort-term capacity release transactions in time for the scheduledlifting of the price ceiling over the weekend.

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.

While Canadian natural-gas producers scramble to find newsupplies to fill their expanding pipeline grid, their leading peerin the electricity sector is laboring to get rid of the stuff – bycurbing flatulence in cattle.