U.S. BRIEFS

ACQUISITIONS

UNION OIL CO., Los Angeles, agreed to purchase 100% of Prairie Holding Co., Houston, an oil and gas subsidiary of Placer Dome Inc. Union will pay $252 million cash and assume $84 million in debt.

COURTS

TEXAS SUPREME COURT ruled an appeal by Arabian Shield Development Co., Dallas, in a $1 billion lawsuit against Hunt Oil Co., was timely filed. It remanded the case, involving a dispute over rights to productive acreage in North Yemen, to the Texas Court of Appeals.

DORCHESTER HUGOTON LTD., Dallas, filed suit against its Oklahoma natural gas purchaser, Natural Gas Pipeline Co. of America, seeking to terminate a 1946 gas sales contract. Dorchester alleged lack of market response in a minimum rate contract price of 36/Mcf before BTU adjustment, compared with its other gas sales at $1.85/MMBTU on the spot market.

TRANSPORTATION

COLUMBIA GAS TRANSMISSION CO., Charleston, W.Va., will extend its summer shut-in period through October because of a supply surplus.

PARKER GAS COS. INC., Houston, plans to sell all its gas pipeline business, including gathering and measuring segments, to Western Gas Processors Ltd., Denver. Parker has 450 miles of pipeline, mostly in the Giddings, Tex., area,

COGENERATION

CMS GENERATION CO., Dearborn, Mich., began test production of electricity at the Filer City Station cogeneration plant near Manistee, Mich. CMS and Tondu Energy Systems Inc. each own 50% of the coal and waste wood fired station.

COGENERATION PARTNERS OF AMERICA Cherry Hill, N.J., let $70 million contract to Zurn Industries Inc., Erie, Pa., to install a 120,000 kw power plant in Pedricktown, N.J. (OGJ, Apr. 30, p 40).

DRILLING-PRODUCTION

EXXON CO. U.S.A. will develop its Mississippi Canyon Block 397 field, in 1,400 ft in the Gulf of Mexico, with high angle directional wells drilled from a conventional platform set in 468 ft of water, clarifying an earlier Oil & Gas Journal report (OGJ, Apr. 30, p. 36).

AMERADA HESS CORP. reported gross production from the Seminole San Andres Unit carbon dioxide enhanced oil recovery project in Gaines County, West Texas, reached 43,000 b/d of oil in 1989, up slightly from 1988.

CONOCO INC. added net proved reserves of 271.6 million bbl of oil equivalent in 1989, about 77.6 million bbl more than worldwide production

OMEGA AKER OFFSHORE INC., a new company to provide engineering services for floating production platforms in the Gulf of Mexico, has been established by Aker Engineering AS of Norway and Omega Marine Group, Houston.

MEDALLION PETROLEUM INC., Tulsa, drilled 11 producers out of 16 prospects tested during its 1989 drilling program in Northwest Oklahoma. The program, costing $6.75 million, discovered gross proved oil and gas reserves of 61,000 bbl and 19.1 bcf.

NOBLE DRILLING CORP., Houston, shipped a 3,000 hp land drilling rig from the U.S. to Venezuela under a bareboat charter.

J.R. BACON DRILLING INC., Shelby, Mont., will drill seven wells in Nevada-three in Tomera Ranch field and four wildcats-by Dec. 31, 1991, on a farmout from Foreland Corp., Ogden, Utah.

PRIDE PETROLEUM SERVICES INC., Houston, reported total employment for its service rigs in the first quarter increased 35% to 169,000 hr, compared with first quarter 1989.

CHEVRON U.S.A. INC., will sell its shallow oil reserves in Main Pass Block 299 in the Gulf of Mexico, estimated at 35-50 million bbl, to Freeport-McMoRan Resource Partners LP, New Orleans, IMC Fertilizer Inc., Northbrook, Ill., and Felmont Oil Corp., New York, for $137 million plus reimbursement of about $13 million in development costs.

HOWELL PETROLEUM CORP., Houston, and its working interest partners received approval from Minerals Management Service to unitize portions of Main Pass Blocks 64 and 65 off Louisiana. Howell plans a waterflood of the acreage.

CONOCO INC. claimed two world records for liner length and weight during drilling of 2 Destin Dome Block 56 in the Gulf of Mexico. The company ran a 13,848 ft long, 13% in. liner weighing 1.08 million lb. Liner seat is 18,048 ft.

JOHN HANCOCK MUTUAL LIFE INSURANCE CO., Boston, committed another $6 million to a 1985 drilling partnership with Alexander Energy Corp., Oklahoma City. Alexander will provide about $2.2 million more in funds.

EXXON CO. U.S.A. will sell 64 onshore oil and gas properties in New Mexico, North Dakota, Texas, Wyoming, and Utah. Bid packages will be available for mailing after May 14. Sale date will be Sept. 1.

EXPLORATION

APACHE CORP., Houston, signed an exploration agreement to explore the Eocene middle Wilcox along the Texas Gulf Coast with Sandia Oil & Gas Corp., San Antonio. Other partners are Panhandle Producing Co. and C.C. Gunn, both of San Antonio.

MAGELLAN PETROLEUM AUSTRALIA LTD. and partners in the Navajo venture made their third discovery in Utah's Paradox basin. Their wildcat, 1 Cajon Mesa, flowed 300-600 b/d of oil and about 5 MMcfd of gas at 6,252 ft.

REFINING

KERR-MCGEE REFINING CORP.'S Power Max Formula 4 gasoline additive passed a BMW unlimited mileage test. It is produced at K-M's Wynnewood, Okla., refinery in three grades of unleaded.

TOSCO CORP., Santa Monica, Calif., canceled plans to sell the company and its refining business, including its Avon refinery at Martinez, Calif.

CITGO PETROLEUM CORP. let contract to ABB Lummus Crest Inc., Bloomfield, N.J., for a $22 million revamp of the hydrocracker at its Lake Charles, La., refinery. The revamp, planned for late 1991 completion, will increase hydrocracker capacity to 42,000 b/d from 31,000 b/d.

AMERICAN INTERNATIONAL PETROLEUM CORP., New York, completed the first phase of a $3 million upgrading project at its 30,000 b/d Lake Charles, La., refinery.

SUN REFINING & MARKETING CO. let contract to Fluor Daniel Inc. for conceptual engineering of a 300 gal/min sour water stripper to treat wastewater at its 165,000 b/d Marcus Hook, Pa., refinery.