U.S. BRIEFS

Dec. 10, 1990
WESTERN GAS PROCESSORS LTD Denver, signed a letter of intent to buy Amoco Production Co.'s 49 MMcfd Edgewood gas processing plant and related production about 35 miles northwest of Tyler, Tex., for $36 million. Closing, expected by Feb. 1, 1991, depends on satisfactory outcome of an environmental audit under way. Western also signed a contract with Dallas Production Inc., Dallas, to gather and process its gas near the plant.

GAS PROCESSING

WESTERN GAS PROCESSORS LTD Denver, signed a letter of intent to buy Amoco Production Co.'s 49 MMcfd Edgewood gas processing plant and related production about 35 miles northwest of Tyler, Tex., for $36 million. Closing, expected by Feb. 1, 1991, depends on satisfactory outcome of an environmental audit under way. Western also signed a contract with Dallas Production Inc., Dallas, to gather and process its gas near the plant.

COMPANIES

TRITON ENERGY CORP., Dallas, sold 1,519,560 common shares of APCO Argentina for $11/share to Williams Companies Inc., Tulsa, and 206,231 common shares of AlaTenn Resources Co. for $11.38/share to AlaTenn Resources. Triton received about $19 million from the two sales.

ASHLAND OIL INC., Ashland, Ky., reached a settlement with former chairman and chief executive officer Orin E. Atkins under which Atkins will relinquish rights to corporate benefits valued at $2 million and pay $250,000 to Ashland. Atkins pleaded guilty in 1989 to charges of wire fraud and conspiracy stemming from his attempt to sell Ashland documents and information to National Iranian Oil Co. for use in litigation against Ashland.

READING & BATES CORP., Houston, said all its lease lenders and holders of more than two thirds of its bank debt issued in its 1989 restructuring agreed to a recapitalization plan. It will result in elimination of $280.2 million in senior debt and lease obligations and cancellation of contingent obligations of $50 million in exchange for 191.1 million shares of Reading & Bates common stock.

BAKER HUGHES INC. acquired ChemLink Group Inc. from ARCO, adding three new operating entities to its group of companies. Baker Oil Treating Co. will absorb ChemLink's oil field operation and become Baker Performance Chemicals Inc. ChemLink's pipeline and industrial operations will continue operating under the ChemLink name.

ENVIRONMENT

ROY F. WESTON INC. subcontracted Foster Wheeler Enviresponse Inc. (FWEI), Livingston, N.J., to provide multi-disciplinary technical assistance teams for the U.S. Environmental Protection Agency's emergency response, removal, and prevention program. FWEI teams will respond to environmental emergencies and spills of oil or hazardous substances as well as provide a range of environmental and safety services. The contract is funded by Superfund and the Clean Water Act.

DRILLING-PRODUCTION

BUREAU OF LAND MANAGEMENT issued an order effective Jan. 23 governing control of hydrogen sulfide emissions from onshore oil and gas wells. In addition to protecting drilling crews, the rules require operators to develop public protection plans if the wellsite is near any residence, school, church, park, business, or road.

NEW LONDON RESOURCES INC., subsidiary of New London Inc., purchased for $9 million oil and gas producing assets of Elders Resources North America Inc. The acquisition hikes New London projected 1991 cash flow by $3.2 million, increases proved reserves by 7.5 bcf of gas and 180,000 bbl of oil, and lowers average operating costs to $5.50/bbl from $7/bbl.

NOBLE DRILLING CORP., Houston, signed an agreement to buy the contract drilling fleet of Kerr-McGee Corp., Oklahoma City, for $75 million with closing expected in first quarter 1991 . The fleet is operated by Kerr-McGee unit Transworld Drilling Co. and consists of five jack ups and seven submersible rigs. The sale, including buildings and real estate in Louisiana, completes Kerr-McGee's withdrawal from contract drilling.

UNOCAL CORP. acquired a 42.5% operating interest in a lease off Carpinteria, Calif., that includes Henry and Hillhouse platforms and interests in seven other leases off California, from Oryx Energy Co., Dallas, for $15.9 million. Unocal will also acquire from Oryx a 100% interest in two producing leases in Cymric field, Kern County, Calif., and an interest in a lease in South Mountain field, Ventura County, Calif., in exchange for Unocal's interest in a Southeast New Mexico gas field.

NORCEN EXPLORER INC., Calgary, expects to begin production of about 4,000 b/d of oil and 10 MMcfd of gas in June 1991 from Eugene Island Block 142 in 50 ft of water about 30 miles south of Louisiana. Its 3 OCS-G-10726 discovery well flowed 3.1 MMcfd of gas and 730 b/d of 38.11 gravity oil through a 13/64 in. choke with 6,436 psi flowing tubing pressure from perforations at 15,954-16,018 ft.

REFINING

MOBIL CORP. let contract to M.W. Kellogg Co. to provide engineering, procurement, and construction services for a $300 million expansion and modernization of Mobil's Beaumont, Tex., refinery. Plans call for Kellogg to expand the plant's crude distillation, coker, and hydrocracking units and install sulfur recovery and diethanolamine regeneration units. Kellogg affiliate KCI Constructors Inc. will begin construction later this year, with completion expected in third quarter 1992.

SUN REFINING & MARKETING CO. will close the 5,000 b/d naphthenic lube oils plant at its Marcus Hook, Pa., refinery in first quarter 1991. Sun cited concerns about profitability of naphthenic lubes, increasing capital costs, and costs to modernize the plant to comply with environmental regulations.

CITGO PETROLEUM CORP. completed purchase of a 50% interest in a new general partnership, Seaview Oil Co., from Seaview Petroleum Co. L.P. The new entity owns and operates an 84,000 b/d Paulsboro, N.J., refinery previously owned by Seaview L.P. (OGJ, July 23, p. 27).

EXPLORATION

PACIFIC ENTERPRISES OIL CO., Dallas, 1 Cantrell 34-16 wildcat in Monroe County, Miss., flowed 1.94 MMcfd of gas through an 18/64 in. choke with 1,065 psi flowing tubing pressure from 3,226-84 ft of Upper Mississippian Carter. It is on Lackie prospect 2.1 miles southeast of Stonewall Creek field.

ORYX ENERGY CO. 1 Gila 4 Deep wildcat in Lea County, N.M., flowed 3.7 MMcfd of gas and 66 b/d of condensate through a 14/64 in. choke with 3,600 psi flowing tubing pressure from Pennsylvanian Atoka at 14,276-334 ft. The discovery well is about 6 miles west of Pitchfork Ranch field and 25 miles west of Jal, N.M.

COGENERATION

COENERGY VENTURES INC., Detroit, became the limited partner in a 30,000 kw gas fired cogeneration plant being built in Ada, Mich., and scheduled for test firing this month by general partner Trigen Power Co. Coenergy will invest about $16 million of the project's expected $45 million total cost plus sell the plant more than 2 bcf/year of gas.

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