Drilling/Production news briefs, May 14

May 14, 2001
Petrolex Energy ... Seven Seas Petroleum ... Mountain Oil ... Tipperary ... Koch Exploration ... Karachaganak


Petrolex Energy Corp. said it has begun a two-well production drilling program at the Rubiales oil field in Colombia that will increase production and test the reservoir. The first well will be completed as a horizontal well, and the second well will be a vertical well. A third well, probably also horizontal, may also be drilled before the rainy season depending on the results from the first two wells.

Seven Seas Petroleum Inc., Houston, has begun a 2-year, 9-well development program in the Guaduas oil field in the Magdalena basin in Colombia. The El Segundo 5-South well, 2.9 km north of the El Segundo 1-E discovery well, will be drilled to 8,230 ft.

Mountain Oil Inc., Roosevelt, Utah, said it expects increases in sales and profit in the second quarter with the recompletion of 7 more wells. Mountain Oil has 24 existing oil and gas wells in eastern Utah of which 14 wells produce 200 b/d. After the recompletion program, the company expects to more than triple production to 700 b/d. The company announced a first quarter post-initial public offering loss of $110,900 or 4¢/share.

Tipperary Corp., Denver, Colo., and Koch Exploration Co., Houston, have agreed to jointly pursue a coalbed methane exploration project. Koch acquired a 50% interest in 52,000 acres that Tipperary had recently leased in Moffat County, Colo. Koch paid $2 million in cash and committed to spend $2 million for capital costs attributable to Tipperary's retained interest over the next 18 months. Tipperary will be the operator of the project.

Karachaganak Petroleum Operating BV, a joint venture company, has begun using Parker Drilling Co.'s Rig 259 to drill in northwestern Kazakhstan, said Parker.