More Unconventional News

BIG U.S. GAS PRODUCING STATES FAN PRORATIONING CONTROVERSY

May 4, 1992 The biggest gas producing states in the U.S. are embracing wholesale changes in prorationing rules. And their actions have stirred controversy and warnings among key energy lawmakers in Washington. The Texas Railroad Commission last week unanimously approved new rules for setting production volumes for gas wells. Texas is the country's No. 1 gas producer. TRC commissioners eliminated a system that prorated production based on monthly nominations by gas purchasers. But they left the door

NIOBRARA GAS INDICATIONS COVER WIDE AREA OF WESTERN NEBRASKA

May 11, 1992 Raymond R. Burchett Nebraska Geological Survey Lincoln The Niobrara formation was named in north-eastern Nebraska by Meek and Hayden1 for exposures along the Missouri River bluffs near the town of Niobrara in Knox County (Fig. 1). Distribution of the Niobrara is restricted to the western four fifths of Nebraska. Much of the formation is concealed by deposits of older Cretaceous, Tertiary, and the younger Quaternary age rocks. Exposures of the Niobrara occur in the south-central, east-central,

AEROMAG SURVEY FINDS FEATURES ALONG CENTRAL TEXAS OVERTHRUST

May 18, 1992 E. Gerald Rolf Consultant San Antonio Kenneth O. Seewald Seewald Energy Co. San Antonio The Ouachita thrust belt of central Texas appears to have great potential based on a recent aeromagnetic survey. The Strawn basin of central Texas has had periodic, selective seismic surveys and limited drilling (Fig. 1). About 60 wells have been drilled to Ordovician Ellenburger (one well per 96 sq miles). Only 26 of these penetrated more than 200 ft of Ellenburger, and of that number only eight drilled

PAYOUT APPROACHES IN ALBERTA'S JOINT OILSANDS RESEARCH

Jun 8, 1992 Almost 2 decades of joint government-industry oilsands research in Alberta will move a step closer this year to a multi-billion barrel payout. The key to success is buried in a mine using new technology at a test facility operated by the Alberta Oil Sands Technology & Research Authority (Aostra).

LOUISIANA HORIZONTAL WELL TAPS OIL IN AREA OF SALT RELATED FRACTURING

Jul 6, 1992 James H. Skelton Independent Geologist Houston The successful drilling and completion of the world's deepest horizontal well in Louisiana confirms seismic indications that the brittle Upper Cretaceous Austin chalk has been highly fractured by nearby halokinetics (salt movement). Cliffs Oil & Gas Co., Houston, 1-A Roy Martin in Avoyelles Parish flowed 2,566 b/d of oil from the chalk at a true vertical depth of 15,339 ft. Previous studies of fractured formations have identified two types of

OGJ NEWSLETTER

Jul 6, 1992 How extensive will be the U.S. refining sector's shakeout spawned by the Clean Air Act? Kidder Peabody estimates U.S. refiners will have to invest $1,500-3,000/b/d of capacity to make reformulated gasoline and ultralow sulfur diesel as mandated by CAA. Because many refineries are too small to manage this investment, as much as 1-2 million b/d of capacity will shut down by 1994, the analyst warns. Kerr-McGee is another such U.S. refiner facing the tough decision of which plants to shut down

JURASSIC HAYNESVILLE OIL PRODUCTION UNFOLDS IN MISSISSIPPI'S 'MATURE' BAY SPRINGS FIELD

Jul 13, 1992 Edwin E. Sticker Mississippi Office of Geology Jackson Bay Springs field is in western Jasper County, Miss., about 1 mile east of the town of Bay Springs (Fig. 1). The field was discovered in 1965 after seismic work conducted by Shell Oil Co. led to the drilling of the Shell 1 C.E. Brown in 27-2n-10e. After initial completion attempts in Jurassic Upper and Lower Smackover yielded unsatisfactory results, a completion was made in a Jurassic Lower Cotton Valley sand later to be named the Bay

INTERNATIONAL GAS-PROCESSING PROSPECTS LOOK BRIGHT TO 2000

Jul 20, 1992 Rick R. Haun, E.E. Ellington, Ken W. Otto, Richard J. Harrison Purvin & Gertz Inc. Dallas Gas processing in general will remain profitable during the 1990s, although gas-processing margins will decline somewhat from the lofty levels of 1990-91. This decline will result from natural-gas prices increasing faster than NGL prices during the next few years. The quantity and quality of gas available for processing will also gradually decline.

MORE U.S. PRODUCTION CHANGES HANDS

Jul 20, 1992 More U.S. oil and gas production is acquiring new owners as some operators scale back operations and others see opportunities for growth. It's part of a continuing program of adjustment to a depressed economy in the petroleum industry (OGJ, July 13, p. 14). In the latest announcements: Forest Oil Corp., Denver, agreed to acquire Transco Energy Co. subsidiary Transco Exploration & Production Co. (Tepco), Houston, for $45 million effective last Mar. 1. Certain Tepco assets will be retained

U.S. DRILLING RECOVERY POSSIBLE AS OIL PRICES FIRM

Jul 27, 1992 G. Alan Petzet Exploration Editor Steady oil prices raise hopes for a second half recovery from record low drilling levels in the U.S. earlier in the year. Natural gas prices firmed this spring after a dismal low in February and were strong in July. Gas drilling is picking up in anticipation of expiration at yearend of federal tax credits for production from low permeability reservoirs. Oil & Gas Journal reckons wellhead revenues will total $77.8 billion for the year, 5% more than in 1991.

INDUSTRY ADJUSTS 1992 E&P BUDGETS

Jul 27, 1992 A midyear update of Salomon Bros.' survey of the petroleum industry's 1992 exploration and production budgets pinpoints the ways operators are adjusting outlays to match the times. The New York financial firm's latest tally shows: Operators have made deep cuts in their 1992 U.S. and Canadian E&P budgets since yearend 1991. Moderate increases budgeted earlier for E&P outside North America are intact. Many companies substantially underspent their budgets in first half 1992.

OGJ NEWSLETTER

Jul 27, 1992 There's some good news from the otherwise dismal U.S. oil scene. The Baker Hughes rig count climbed to 689 the week ended July 19, a 22 unit jump from the prior week, which had seen a 19 unit increase. That's the highest tally since 716 the week ended Jan. 17 but still down 17% from a year ago. And second quarter wasn't too bad for some companies reporting financial results.

ICF: CHANGE SECTION 29 TAX CREDITS

Aug 10, 1992 Federal tax credits for producing U.S. unconventional gas should be changed to restore original energy objectives of Congress, says ICF Resources Inc., Fairfax, Va. ICF suggests how Section 29 tax credits might be changed in an analysis drawing on a confidential survey of 60 producers of unconventional gas resources (UGRS) and two earlier ICF Section 29 studies. The analysis comes at a time when Section 29 incentives are stirring debate in Congress and controversy in the U.S. gas industry.

DOE SEEKS TO HIKE RECOVERY IN SPECIFIC OIL RESERVOIRS

Aug 10, 1992 The Department of Energy is seeking proposals for demonstration projects on ways to better produce oil from U.S. shallow shelf carbonate reservoirs. About 400 such oil fields in the U.S. hold almost 50 billion bbl of oil remaining in place, of which only about 4 billion will be produced under current methods. DOE estimates that better secondary and tertiary recovery processes could nearly triple recovery to 11.5 billion bbl.

HORIZONAL DRILLING RETAINS STEADY SHARE OF U.S. ACTIVITY

Aug 10, 1992 A. D. Koen Gulf Coast News Editor After peaking in late 1990 and early 1991, U.S. horizontal drilling activity began a steady slide that carried through first half 1992. But despite higher drilling and completion costs and significant technological challenges, U.S. horizontal action has held its share of activity in a declining domestic oil and gas industry.

HERE ARE POINTS TO REMEMBER WHEN EXPLORING NIOBRARA IN THE ROCKIES

Aug 17, 1992 Richard A. Harnett Consulting geologist Tulsa The Niobrara formation in the central Rocky Mountain region has been written about at length by several authors, most recently concerning Silo field near Cheyenne, Wyo. The Niobrara has proven an enigma to many explorationists, because while the promise is great (individual wells with cumulative production in excess of 1 million bbl), many times the results have been disappointing. What follow are a few observations and concepts that may help start

HIGH OIL RATES GAUGED FROM HAYNESVILLE IN ALABAMA

Aug 24, 1992 Oil wells with among the highest flowing capacities in the onshore U.S. are being completed in Alabama as operators press development of North Frisco City field. Five wells have been completed in the Monroe County field. A sixth well will be drilled in September, and four more locations have been identified on the 2,100 acre leasehold. The area is 4 miles west of Monroeville, Ala. Nuevo Energy Co., Houston, completed the field's most recent well earlier this month.

AOSTRA EYES COMMERCIAL SCALE OILSANDS PROJECT

Aug 31, 1992 Alberta Oil Sands Technology & Research Authority (Aostra) has begun studying a commercial project for bitumen production using steam assisted gravity drainage techniques developed at its underground test facility (UTF) in northern Alberta. Aostra's project focuses on the Athabasca oilsands deposit. It uses paired horizontal wells with steam injected in one well and bitumen produced from the other (OGJ, July 15, 1991, p. 31).

DECLINE CURVE ANALYSIS PREDICTS OIL RECOVERY FROM HORIZONTAL WELLS

Sep 7, 1992 Pralhad N. Mutalik, Sada D. Joshi Joshi Technologies International Inc. Tulsa For the transient and post-transient decline periods of a horizontal well in a bounded reservoir, an analytical model has been developed that can forecast recoverable reserves. This decline curve method predicts future performance of both new and existing horizontal wells. The model can also be used to develop horizontal well type curves.

INDEPENDENTS TEAM UP TO BUY U.S. PRODUCTION

Sep 14, 1992 The quality and quantity of producing oil and gas properties for sale in the U.S. is encouraging the formation of acquisition joint ventures. Among recent announcements: Coda Energy Inc., Dallas, and an undisclosed investment banking company are creating a $750 million acquisitions joint venture to include $250 million in equity capital and $500 million in bank financing. Members of Houston's Cockrell family and GKH Partners LP, Chicago, effective Sept. I formed Cockrell Oil & Gas LP, an
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