Oregon drilling for 1991 got off to an early start when Oregon Natural Gas Development Corp. spudded a Washington County prospect Jan. 15.
ONGD's 12-26 Oregon, in 26-ls-4w, is the first test in Oregon's Tualatin Valley in nearly 9 years. Projected depth is 2,000 ft.
Drill site is near Gaston 40 miles south of Mist gas field.
The last well in the county was drilled in 1982 by Nahama & Weagant Energy Co., Bakersfield, Calif.
N&W reentered Oregon as an operator in 1990, taking a farmout from ARCO to become Mist field operator.
The three late 1990 wells N&W drilled in Mist field represented a "very successful start in our drilling program," said Robert H. Sterling Jr., vice-president, exploration and production.
OREGON OPPORTUNITIES
The independent operator had approached ARCO about purchasing production and became Mist field operator when ARCO presented the farmout proposal, Sterling said.
"We feel there are many excellent prospects in the Mist area, and we will try to get them all drilled," Sterling said.
N&W tentatively plans to drill 10 wells this year, even though its obligation under the farmout is to drill eight.
The announced program of 25 wells by yearend 1993 "could increase with continued success," Sterling said.
He said the company is interested in looking at energy prospects in other areas of Oregon because it believes gas potential exists in other basins. However, he said the Tyee basin will require "significant work" before it becomes attractive to drillers (OGJ, July 2, 1990, p. 70).
Sterling said Mist field activity complements N&W's work in northern California because Mist "exposes us to a basin not unlike the Sacramento basin in reserves per well, reservoir quality, and drilling problems."
N&W is planning one of the most active drilling programs in the company's history in the Sacramento Valley, he said.
With eruption of the Iraqi situation, Nahama & Weagant responded in its California oil sector by first reworking as many wells as justifiable by the higher oil price.
It also began a development program in Rosedale Ranch oil field in Kern County, where four additional wells were drilled by the end of November 1990.
N&W feels gas is a much more desirable exploration target because gas market stability in California "is an opportunity unequalled in the country," Sterling said.
OTHER ACTION
Still another operator may enter the drilling arena in Columbia County.
Denlar Exploration Inc. has been assembling leases for some time. Its president, Vernon H. Newton, former Oregon chief geologist, declined to disclose how much acreage Denlar has leased.
On the geothermal scene, Anadarko Petroleum Corp., which had its Oregon geothermal delineation drilling in the Alvord desert halted by environmental opposition, is faced with another such move.
Five environmental groups have taken action challenging U.S. Bureau of Land Management permission to Anadarko to tap underground hot springs near Borax Lake in southeastern Oregon.
With opening of the new legislative session for 1991 in Salem, the Oregon Department of Geology and Mineral Industries plans to submit a proposed bill to authorize its governing board to assess fines of $200 to $50,000/day for violation of state rules and regulations governing oil and gas exploration and production, geothermal activity, and mining. Copies of the bill, LC659, are available from the department's Portland office.
Copyright 1991 Oil & Gas Journal. All Rights Reserved.
