U.S. BRIEFS

GOVERNMENT

ENVIRONMENTAL PROTECTION AGENCY gave companies owning 1-12 underground storage tanks another year-until Oct. 26, 1991-to meet its bonding requirements. The extension also applies to nonmarketing companies whose net worth is less than $20 million. EPA said the extension will provide tank owners time to make their facilities insurable and give states more time to develop their bonding programs.

EXPLORATION

PRUDENTIAL CAPITAL CORP., Houston, agreed to pay as much as $45 million during the next 3 years in an exploration/development venture with Ballard Exploration Co., also of Houston, on the Texas and Louisiana Gulf Coast.

DRILLING-PRODUCTION

AMOCO PRODUCTION CO. and Japex Gulf Producing Corp. formed a joint venture to drill wells ranging from 11,000 to 18,000 ft deep on five producing blocks in less than 300 ft of water in the Gulf of Mexico. Drilling is to begin this month and be complete by yearend 1991.

SAMSON ENERGY CO. LP, Tulsa, completed the purchase from Seagull Energy Corp. of 37 producing leases in seven counties in Southeast Texas, three parishes in Louisiana, and Columbia County in Southwest Arkansas. Interests acquired in the $3 million purchase cover 383,000 bbl of oil and 700 MMcf of gas. Samson affiliates also bought interests in the same leases.

FOREST OIL CORP., Walter Oil & Gas Corp., Houston, and Walter's partners plan to set a platform in mid-1991 to complete a gas discovery and a confirmation well in Vermilion Block 275 off Louisiana. Production is to begin the following fall. Drilled to 14,000 ft in 170 ft of water, the discovery cut 50 ft of pay at 13,410 ft. The confirmation cut 90 ft of net gas pay at 13,665 ft measured depth in drilling to 15,011 ft measured depth.

ZILKHA ENERGY CO., Houston, hired Chemical Banking Corp., New York, as financial adviser in a planned sale of about 1.1 million bbl of oil reserves and 17.3 bcf of gas reserves in Texas, Louisiana, Mississippi, and Alabama. Zilkha, which asked for bids on the onshore reserves, will retain its interests in 52 blocks in the Gulf of Mexico.

GRACE DRILLING CO., a unit of Grace Energy Corp., Dallas, bought the operating assets of Basin Drilling Corp., a wholly owned subsidiary of Texaco Producing Inc. The assets consist mainly of 12 drilling rigs, rated to 12,000-22,000 ft, and related equipment. Ten of the rigs are in Texas, with one each in Oklahoma and North Dakota.

EXPLORATION CO. OF LOUISIANA INC., Lafayette, La., began gas production from five wells in Central Kenedy field in Karnes County, Tex. Combined flow is 12 MMcfd priced at about $1.53/Mcf. The price will rise to $2/Mcf next month. The company expects production to increase to 15 MMcfd by yearend after fracture treatment of two wells. It plans to drill four more wells in the field by mid-1991.

KERR-MCGEE CORP. let a 10 year contract to Niject Services Co., Tulsa, for natural gas injection services in its Sand Dunes area field project in Converse County, Wyo. Equipment will include a 6,500 hp, 5,000 psi compressor to be supplied by Dresser-Rand Co. Union Carbide Industrial Gases Inc. will provide technical assistance for the facility, to be designed, built, owned, and operated by Niject.

ACQUISITIONS

FOREST OIL CORP. offered to acquire Conquest Exploration Co., Houston, for Forest stock and at least $23.75 million cash. Conquest signed a definitive merger agreement with American Exploration Co. Oct. 21, but Conquest may end the agreement if it receives a better offer. In that case, Conquest is obligated to pay American $2 million. Conquest is studying the Forest offer.

ALEXANDER ENERGY CORP., Oklahoma City, signed a letter of intent to buy all the stock of Bonray Energy Corp., also of Oklahoma City, for $9 million cash. Among Bonray's assets are reserves of 590,000 bbl of oil and 3.7 bcf of gas in 155 wells in Oklahoma, North Dakota, Texas, Kansas, and New Mexico.

TRANSPORTATION

ARKLA INC. started up its 225 mile, $240 million Line AC in the Arkoma basin. The gas transmission system runs from a point near Wilburton, Latimer County, Okla., to a link with one of Arkla's major north-south interstate pipelines near Glendale, Ark. The 42 and 36 in. system's capacity of 800 MMcfd is scheduled for expansion next summer to 1 bcfd with added compression.

A BARGE owned by Coastal Towing Inc., Houston, spilled an estimated 2,000 bbl of crude oil after running aground and splitting its hull in the Intracoastal Waterway near Houma, La. Coastal hired Industrial Cleanup Inc., Garyville, La., to coordinate the cleanup.

REFINING

STAR ENTERPRISE let a contract valued at more than $7 million to Serv-Tech Inc., Houston, for a revamp of fluid catalytic cracker No. 3 unit at its Port Arthur, Tex., refinery. Scheduled for completion in April 1991, the work will involve removal of a regenerator head, along with 39 cyclones, and installation of a new head.

EXXON CO. U.S.A. will change winter formulations of 93 octane Exxon Supreme and 89 octane Exxon Plus gasoline sold in Virginia, Washington, D.C., Baltimore, Philadelphia, and Boston areas. Oxygenated formulations are designed to burn cleaner.

COGENERATION

BONNEVILLE PACIFIC CORP., Los Angeles, and Texaco Cogeneration & Power Co. agreed to form two partnerships to design, build, and operate Bonneville's two 85,000 kw cogeneration plants near Las Vegas, Nev., each planned to cost about $100 million. Texaco Gas Marketing Inc. will supply most of the plants' natural gas fuel. Construction of both units is to begin in first quarter 1991, with start-ups due in mid to late 1992.

COMPANIES

FOREST OIL CORP. agreed to a settlement resolving a gas take or pay dispute with Texas Utilities Fuel Co. (Tufco). The agreement confirms a contract price for Forest of $3.845/Mcf through Nov. 20, 1991, covering about 1.2 MMcfd in Pecos County, Tex. Forest had sued Tufco, claiming damages of more than $2 million for underpayment of wellhead price, and Tufco countersued for alleged overpayment of $26 million. The settlement involves no payments by either company.