By the OGJ Online Staff
HOUSTON, July 25 -- Unocal Corp. said Wednesday adjusted after-tax earnings, excluding special items, in the second quarter were $228 million, up from adjusted earnings of $170 million in the same quarter last year.
CEO Charles Williamson said, "The higher operating earnings were driven principally by higher natural gas prices in the Lower 48 and continued increases in our worldwide natural gas and liquids production. In the Lower 48, we posted the sixth straight quarter of higher natural gas production."
Unocal's Lower 48 output was 954 MMcfd, up 31% from a year ago, reflecting the fact that the 230-MMcfd Muni field in the Gulf of Mexico came on stream.
The realized price for gas was $4.62/MMcf, up from $3.41 a year ago. Average price for liquids (crude oil, condensate, and natural gas liquids) was $24.57/bbl, off from $25.14.
Worldwide, Unocal's production in the second quarter averaged 516,000 boe/d, up 11% from a year ago.
In the deepwater gulf, first production is scheduled in the third quarter from Ladybug field on Garden Banks 409. Ladybug is expected to produce 8,000 b/d, with possible higher flows depending on facility limitations. Unocal has a 50% of the field and ATP Oil & Gas Corp. has the rest.
Unocal Gulf Region USA's exploration drilling program yielded 10 discoveries offshore that have begun production or should go on-line later this year. It plans to drill 8-12 wildcats on the shelf during the rest of 2001.