Exploration/Development news briefs, July 24

Parallel Petroleum ... Pado Oil & Chemical (Austria) ... Turkmenneft ... Gulf Canada Resources

Parallel Petroleum Corp. announced the results of a discovery well drilled on one of the properties in which it holds interests in the Yegua-Frio-Wilcox gas trend in Wharton County, Tex. Drilled to a total depth of 10,500 ft, Cranek A-1 was completed in the Yegua formation through perforations at 9,849-62 ft. On test, the well flowed at a rate of 2.45 MMcfd of gas and 612 b/d of oil through a 9/64-in. choke with flowing tubing pressure of 6,000 psi. Parallel owns a 10% working interest (7.5% net revenue interest) in the well.

Turkmenistan President Saparmurad Niyazovand head of Pado Oil & Chemical (Austria) Wladlen Badian signed a production-sharing agreement June 26 covering the Khazar deposit in eastern Cheleken. The agreement makes Turkmenistan firm Turkmenneft�which formed a consortium with Pado Oil & Chemical�a participant. The Austrian partner will provide 100% of financing for the project. Within the 25-year term of the agreement, the Austrian company intends to invest around $300 million. Turkmenistan and Turkmenneft will receive half the profits from production.

Gulf Canada Resources Ltd., Calgary, reports a significant oil discovery in the Fenn oil field in central Alberta, about 19 miles south of the town of Stettler. The wildcat flowed at rates up to 3,200 b/d, the highest recorded in Alberta in 5 years, on an exploratory test. Gulf said the discovery is significant and will increase its projected conventional oil production of 23,000 b/d in Western Canada by more than 10%. The well flowed at a maintained rate of 2,990 b/d on test for 10 days. An 8-mile pipeline to a Gulf battery will be completed by the end of the month. A delineation test at the southern end of the pool is planned in August. Gulf has a 100% interest in the well, drilled into the Leduc and Nisku formations.

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