The Appalachian Basin has ample amounts of undeveloped ethane and no nearby place to sell it, but the numerous proposals to ship it to move it elsewhere remain challenged by the marketplace, several project sponsors told an audience in Pittsburgh on Oct. 21.
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SM Energy to Earn, Mitsui to Learn in Eagle Ford Deal
SM Energy Co. and a unit of Japan’s Mitsui & Co. Ltd. have struck a drilling carry agreement in the Eagle Ford Shale that is worth $680 million to the Denver-based producer and is part of its sell-down in the South Texas play. Mitsui, which already has a Marcellus Shale stake, recently announced a deal in Poland, where it said it plans to apply shale lessons learned in the United States.
A Remade Rosetta Is Banking on the Eagle Ford
A liquids-focused unconventional oil and gas makeover at Houston-based Rosetta Resources Inc. is showing the company in a much improved light as it continues to ramp up its activities in the Eagle Ford Shale of South Texas, CEO Randy Limbacher told financial analysts Monday.
Industry Brief
Denver-based Bill Barrett Corp. has completed a $60 million agreement to acquire a 90% working interest in 40,300 undeveloped acres in Cottonwood Gulch in western Colorado’s Piceance Basin. The leasehold is part of the former Naval Oil Shale Reserve No. 1. The acquired properties are adjacent to the prolific Rulison and Parachute gas fields. Based on regional data and analysis, Barrett expects the acquisition to add more than 2 Tcfe to its probable and possible resources. Barrett currently produces 100 MMcfe/d net from the Gibson Gulch field, which is in the Piceance Basin.
Dallas Fed: Manufacturing Recovery, LNG Mean Higher Prices
Longer term, analysts at the Federal Reserve Bank of Dallas predict “much higher natural gas prices,” despite a “sizable” inventory of undeveloped domestic resources.
Dallas Fed: Manufacturing Recovery, LNG Mean Higher Prices
Longer term, analysts at the Federal Reserve Bank of Dallas predict “much higher natural gas prices,” despite a “sizable” inventory of undeveloped domestic resources.
Vancouver-Based Producer Buying Texas Reserves
Dejour Enterprises Ltd. of Vancouver, BC, signed a letter of intent to purchase certain proven producing and undeveloped reserves, approximately 2,100 acres of associated land, data and wells in Liberty County, TX, effective Aug. 1, 2007 for US$3.5 million cash with minor gas balancing adjustments, the company said Friday.
Industry Briefs
Dejour Enterprises Ltd. of Vancouver, BC, signed a letter of intent to purchase certain proven producing and undeveloped reserves, approximately 2,100 acres of associated land, data and wells in Liberty County, TX, effective Aug. 1, 2007 for US$3.5 million cash with minor gas balancing adjustments, the company said. The purchase includes four wells; two wells currently producing gas with associated condensate in excess of 12 MMcf of natural gas combined, one new well currently being placed on line with similar pressures and one standing cased well; all drilled to approximately 12,000 feet. Working interests range from 11.38% to 15.9%. LaRoche Consultants of Dallas, on behalf of Dejour Energy USA Inc., a wholly owned subsidiary of Dejour, is providing independent engineering reports assigning NI 51-101 compliant gross proven reserves associated with this purchase of 9.3 Bcf and 130,000 bbl of condensate based on the New York Mercantile Exchange strip case. Production from this field is expected to be enhanced when the new well is placed on stream. Dejour anticipates additional wells to be drilled in the future. Dejour said it expects to close the transaction on or before Sept. 14, assuming no due diligence issues. The purchase will be funded from cash on hand.
Gazprom Plans to Send All Shtokman Gas to Europe
Gazprom’s apparent decision to target the future production of its undeveloped but vast Shtokman natural gas field to Europe instead of the United States will have little effect on future U.S. liquefied natural gas (LNG) markets, some analysts said.
Alaska Legislators Again Consider Tax on Undeveloped Gas Reserves
Former Alaska Gov. Walter Hickel on Wednesday once again urged state legislators to impose a tax on undeveloped natural gas reserves to encourage North Slope producers to agree to begin building the long-proposed North Slope gas pipeline.