Vancouver

Vancouver-based Ivanhoe Energy and its partners reported that on Aug. 23 they began drilling a deep test well on the Northwest Lost Hills (NWLH) prospect located in Kern County, CA. The Aera Energy LLC-operated NWLH 1-22 well is expected to find natural gas and gas condensate zones in the deep Temblor formation.

Despite the drop in natural gas prices, Vancouver-based Methanex said Tuesday that the shutdown of its 470,000 tons/year Medicine Hat, AB facility, which uses natural gas in its methanol production, has been extended for an “indeterminate period” because of the plant’s “current non-competitive cost structure.” However, Methanex said it would move ahead on construction of a new facility in Trinidad, which it said will be less costly to operate.

Vancouver-based Ivanhoe Energy and its partners reported that on Aug. 23 they began drilling a deep test well on the Northwest Lost Hills (NWLH) prospect located in Kern County, CA. The Aera Energy LLC-operated NWLH 1-22 well is expected to find natural gas and gas condensate zones in the deep Temblor formation.

Vancouver-based Westcoast Energy Inc. reported last week that its recent open season on its Southern Mainline was a complete success. In addition to fully subscribing the 200 MMcf/d open season for additional transportation capacity on its Southern Mainline, the company announced that it awarded 50 MMcf/d of additional transportation capacity on its Westcoast Alberta line.

Vancouver-based KMS Power Income Fund, through its manager KMS Energy Inc., has announced a 10-month gas swap contract with Nicor Energy LLC, designed to fix prices for a proportion of the natural gas used by KMS Crossroads. The agreement, at a price of $5.07/MMBtu, encompasses 20,000 MMBtu/month, representing about 40% of the average gas consumption at KMS Crossroads.

Vancouver-based Westcoast Energy Inc. reported Monday that its recent open season on its Southern Mainline was a complete success. In addition to fully subscribing the 200 MMcf/d open season for additional transportation capacity on its Southern Mainline, the company announced that it awarded 50 MMcf/d of additional transportation capacity on its Westcoast Alberta line.

Enerplus Resources Fund, headquartered in Vancouver, paid C$104million for 100% of the outstanding shares of an undisclosedprivate Canadian pension resource corporation that owns producingoil and natural gas properties in Western Canada. The propertiesproduced approximately 2,650 boe/d in a three-month period endingSept. 30. The production included 1,740 bbl/d of crude oil andnatural gas liquids and 9,100 Mcf/d. Average third quarterproduction represents a 22% increase over Enerplus’ third quarteraverage of 12,014 boe/d. Total established reserves are 12,248 Mbblof crude oil and natural gas liquids and 70.7 Bcf, for a total of19,312 Mboe. The deal was funded through a combination of cash fromexisting credit facilities and the assumption of debt, whichtotaled 75% of the purchase price. The rest was financed withEnerplus Trust Units.

Vancouver-based Westcoast Energy Inc. has agreed to pay $75million to buy the 50% interest in Empire State Pipeline that itdoesn’t already own from Houston-based Coastal Corp. The deal givesWestcoast complete ownership of the 156-mile, 24-inch natural gaspipeline running along the U.S.-Canada border near Niagara Falls toSyracuse, NY interconnect points.

Vancouver-based Westcoast Energy Inc. will pay $75 million tobuy the 50% interest in Empire State Pipeline that it doesn’talready own from Houston-based Coastal Corp., officials saidyesterday. The deal gives Westcoast complete ownership of the156-mile, 24-inch natural gas pipeline running along theU.S.-Canada border near Niagara Falls to Syracuse, NY interconnectpoints.