Undeveloped

Opponents of a massive coastal development on a previously undeveloped part of seaside Los Angeles have reignited the long-standing debate about the safety and environmental suitability of a major new suburban development near a 60-year-old underground natural gas storage facility operated by Sempra Energy’s Southern California Gas Co. utility subsidiary.

Opponents of a massive coastal development on a previously undeveloped part of seaside Los Angeles have reignited the long-standing debate about the safety and environmental suitability of a major new suburban development near a 60-year-old underground natural gas storage facility operated by Sempra Energy’s Southern California Gas Co. utility subsidiary.

Ten conservation groups last Wednesday sued the Bush administration for extending 37 undeveloped oil and natural gas leases off the Central California coast after concluding that no significant environmental harm would result from the action.

Ten conservation groups on Wednesday sued the Bush administration for extending 37 undeveloped oil and natural gas leases off the Central California coast after concluding that no significant environmental harm would result from the action.

Peoples Energy Production has purchased 10 Bcfe of proved undeveloped reserves an 10-20 Bcfe of potential additional reserves in East Texas from a private company for $9.5 million. The acquisition includes 5,300 gross acres in the heart of the Cotton Valley/Travis Peak gas trend. Initial development of the acquired reserves, 96% of which are natural gas, will begin in fiscal 2005 with anticipated capital spending on these properties of between $10 million and $15 million of the 2005 capital program, Peoples said. “The acquisition of these properties increases our inventory of low risk drilling opportunities and will help us to achieve our production growth target for fiscal 2005,” said Peoples Energy CEO Thomas M. Patrick. Steven W. Nance, president of Peoples Energy Production said the acquisition “builds on our successful entry into East Texas, a prolific producing province of longer life, low risk reserves, which was accomplished during fiscal 2004.”

Upstream capital spending rose 13.7% worldwide in 2001, with the largest increase in Canada, according to a new report by John S. Herold Inc. Meanwhile, U.S. spending dropped $2 billion last year to $43 billion, with a 50% drop in mergers and acquisitions (M&A). Analysts said that drop in M&A may signal a greater focus and more spending on North American exploration and production (E&P) and less worldwide.

Upstream capital spending rose 13.7% worldwide in 2001, with the largest increase in Canada, according to a new report by John S. Herold Inc. Meanwhile, U.S. spending dropped $2 billion last year to $43 billion, with a 50% drop in mergers and acquisitions (M&A). Analysts said that drop in M&A may signal a greater focus and more spending on North American exploration and production (E&P) and less worldwide.

Brazil’s Petrobras is buying 22 million bbl of oil reserves and 267 Bcf of gas reserves in Argentina from Devon Energy for $90 million. About 75% of the reserves are classified as proved undeveloped. The properties produced 6,100 b/d of oil and 17 MMcf/d of gas net to Devon’s interest during the first six months of 2002. The transaction, which is subject to Argentine regulatory approvals, is expected to close by the end of the year.