GOVERNMENT
A FEDERAL ENERGY REGULATORY COMMISSION administrative law judge ruled the Department of Energy lacks authority to hold a corporate officer liable for alleged violations by the corporation of petroleum price rules.
PROCESSING
NAVAJO REFINING CO., a unit of Holly Corp., Dallas, let a $19 million contract to Fluor Daniel for engineering, procurement, and construction of a 12,000 b/d continuous catalytic regeneration platformer at its Artesia, N.M., refinery. The new unit will hike Navajo gasoline output to 60,000 b/d from 40,000 b/d. Engineering is under way with completion of the unit scheduled for mid-1991.
TESORO PETROLEUM CORP., San Antonio, plans a September auction of all components in its 26,100 b/d Carrizo Springs, Tex., refinery and off site facilities, which ceased operations in May 1984.
COMPANIES
TEXAS MERIDIAN RESOURCES LTD., Houston, and Ironstone Group Inc., San Francisco, terminated their agreement for TMR to buy 4.083 million shares of stock in American National Petroleum Co., Houston, from Ironstone and other shareholders.
SEARCH EXPLORATION INC., Dallas, and affiliates Plano Petroleum Corp. and Energy Sources Group Inc. filed suit in Dallas County, Tex., against Sonat Exploration Co. unit Marshall Exploration Inc., Marshall, Tex. The suit alleges breach of operating agreements, breach of well commitment packages, and other claims. It seeks more than $20 million in actual damages and about $80 million in punitive damages.
TRANSPORTATION
AN ALASKA RAILROAD CORP. train derailed 40 miles south of Fairbanks, spilling about 60,000-100,000 gal of jet and diesel fuel. Cleanup crews siphoned much of the fuel from the ground but some was reported in nearby Goldstream Creek. The 50 car train was en route from Mapco Alaska Petroleum Inc.'s refinery near Fairbanks to Anchorage. Of 19 cars containing about 20,000 gal each of fuel, two were reported empty, one about half empty, and 16 others leaking. Cause was not known at presstime.
AMERICAN INTERNATIONAL PETROLEUM CORP., New York, began selling gas from its 3 1/2 in., 13 1/2 mile Converse pipeline in Sabine Parish, La. Pipeline capacity could be expanded to 4 MMcfd from 1 MMcfd with added compression and dehydration facilities.
WATERMAN INDUSTRIES' Stonewall Jackson freighter ran into empty barges at Algiers Point in New Orleans, spilling about 50,000-60,000 gal of No. 6 diesel fuel oil into the Mississippi River. Waterman hired Rubark Co., New Orleans, to clean up the spill, which reportedly stretched nearly 60 miles downstream to Pointe a La Hache, La. The collision is under investigation.
DRILLING-PRODUCTION
MERIDIAN OIL INC., Houston, agreed to acquire all producing leases of Unicon Producing Co., also of Houston, mostly in the San Juan basin of New Mexico, for $399 million. Reserves are equal to about 500 MMcf of gas.
DEKALB ENERGY GO., Denver, agreed to purchase an interest in 36 oil and gas fields, containing about 250 wells, from Royal Producing Corp.Texas for $130.2 million. The purchase will add about 5.3 million bbl of oil and condensate and 50.4 bcf of gas to DeKalb's net reserves. DeKalb will obtain interests in more than 38,000 acres, mostly on the Texas Gulf Coast.
DORCHESTER HUGOTAN LTD., Dallas, calculated an absolute open flow of 29.6 MMcfd from Chase group pay for 1-2 S. Cruzan, its best Hugoton gas field infill well in Stevens County, Kan. The well, completed at 2,950 ft, cut 102 ft of net gas pay.
BELDEN & BLAKE ENERGY CO., North Canton, Ohio, acquired from an undisclosed seller working interests in 774 oil and gas wells, with 102,000 bbl and 731 MMcf estimated reserves, for $412,000. The company estimates future net revenue of $1.9 million, at Dec. 31, 1989, prices and costs. It plans to add at least $10 million in present value to its reserve base in 1990.
UNION PACIFIC RESOURCES CO., Fort Worth, tested its 7 Lester Tatum horizontal well in Burleson County, Tex., at 1,044 b/d of oil and 3.3 MMcfd of gas through a 36/64 in. choke with 1,230 psi flowing tubing pressure from Cretaceous Austin chalk. The well bottomed at 9,025 ft measured depth with 3,857 ft displacement.
KP EXPLORATION INC., Houston, purchased producing leases in Victoria and Hockley counties, Tex., and Jeff Davis Parish, La., from an undisclosed seller for $5.3 million. Acquired reserves total about 525,000 bbl and 6.5 bcf. KP will operate the properties.
GRAHAM PETROLEUM CORP., Salem, Ill., plans to use funds from a $9 million stock offering to buy 200 more oil wells in the Illinois basin.
GRACE ENERGY CORP.,
Dallas, bought minority shares of subsidiary Grace Drilling Co., Dallas, from units of Panhandle Eastern Corp. The purchase gives Grace Energy 99.45% of Grace Drilling. Some Grace Drilling shares were issued in September 1986 to a unit of Texas Eastern Corp., which was acquired by Panhandle Eastern in June 1989. Additional shares were acquired by a unit of Panhandle Eastern in February 1987.
CALLON OFFSHORE PRODUCTION INC., Natchez, Miss., acquired interests in eight gas fields and one oil field, with net production of more than 15 MMcfd and 300 b/d, from Chevron U.S.A. Inc. for about $28 million.
DI INDUSTRIES INC., Houston, unit Alamo Machine & Tool bought oil field supply and rig up yards in Houston and Odessa, Tex., from Rigs-R-Us Inc. for $1.05 million. DI will use funds from a March public offering in which it raised $15 million.
HALLADOR PETROLEUM CO., Denver, will pay $2 million for a 25% interest in Santa Barbara Partners, which plans to buy an 88% working interest in South Cuyama Unit, Santa Barbara County, Calif., from an undisclosed major and spend about $500,000 on workovers.
EXPLORATION
CALLON PETROLEUM CO., Natchez, Miss., reported the 1 Irvin Langford 5-10 discovery well in Monroe County, Ala., flowed 336 b/d of 35.9 gravity oil through a 24/64 in. choke with 300 psi flowing tubing pressure from Jurassic Smackover at 14,492-500 ft. The well, which cut 27 ft of net pay at a site 1 1/4 miles northwest of Wallers Creek field, was drilled to 14,576 ft. Interests are Placid Oil Co. 50%, Santa Fe 37.5%, and Callon 12.5%.
TEXAS BOARD FOR LEASE added 28 tracts to its 80th oil and gas lease sale scheduled July 18 in Midland.
