Buoyed by its success in an aggressive drilling program thathelped to replace 329% of its 2000 natural gas production,Williams’ exploration and production unit now plans to drill morethan 300 wells this year — a record number in a single year forthe company — concentrating its talents in Wyoming’s Green RiverBasin and New Mexico’s San Juan Basin.

Yesterday the Tulsa-based company reported that at year’s end,its natural gas reserves totaled 1.20 Tcfe, up from 1999’s year-endtotal reserves of 1.05 Tcfe. The unit replaced 329% of its 2000production of 65.6 Bcfe, which was a 13% increase from a yearearlier. The company said its success was pinned to a $19 millioninvestment in new prospects in Wyoming’s Jonah Field and regionsalong the Gulf Coast.

“We’re continuing to make great strides in our exploration andproduction business,” said Bryan Guderian, vice president ofE&P. “Last year was another record year for us. We achievedrecord levels for both reserves and production. With our largeinventory of low-risk development opportunities, we have anexcellent platform for sustained growth.”

The Jonah Field is driving most of Williams’ E&P growth,said Guderian, who added that the company only acquired theproperties in 1999 and already has drilled more than 70 wells”without a dry hole.” The success, he said, is tied to a decisionmade last year by the Wyoming Oil and Gas Conservation Commission,which gave producers permission to drill wells closer together. Theruling decreased well spacing to 40 acres from 80 acres. “Thatdecision allows us to accelerate our activity in and around Jonah.”

Up to now, the E&P unit has concentrated on drilling fornatural gas in the northern Rockies, the San Juan Basin and onshorealong the Texas and Louisiana Gulf Coast.

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