Officials of Ashland Oil expect to accrue as much as $67 million of Section 29 tax credits for gas produced from qualified U.S. tight sands and Devonian shale wells through 2002, when availability of the credit expires.
The credit in the company's 1992 fiscal year ended last Sept. 30 added $9 million to net income,
During 1989-92, Ashland drilled 182 shallow development wells to qualified nonconventional formations in the Appalachian basin. With deadline for drilling qualified wells falling at yearend 1992, Ashland plans about 80 Appalachian wells in 1993, Ashland officials say.
Copyright 1992 Oil & Gas Journal. All Rights Reserved.
