OREGON, MIST SEISMIC DUE NEW INTERPRETATIONS

Nahama & Weagant Energy Co., Bakersfield, Calif., is about to become an active driller in Oregon's Mist gas field. N&W, once a leader in bidding for leases in Oregon, has taken a 50,000 acre farmout from ARCO Oil & Gas Co. in the Mist area (OGJ, June 25, p. 24). Acreage held by ARCO was acquired several years ago, when the field's early developer, Reichhold Energy Co., withdrew. Reichhold, a subsidiary of Reichhold Chemical Co., White Plains, N.Y., used Mist gas as feedstock for a St.

Aug. 6, 1990

4 min read

Nahama & Weagant Energy Co., Bakersfield, Calif., is about to become an active driller in Oregon's Mist gas field.

N&W, once a leader in bidding for leases in Oregon, has taken a 50,000 acre farmout from ARCO Oil & Gas Co. in the Mist area (OGJ, June 25, p. 24).

Acreage held by ARCO was acquired several years ago, when the field's early developer, Reichhold Energy Co., withdrew. Reichhold, a subsidiary of Reichhold Chemical Co., White Plains, N.Y., used Mist gas as feedstock for a St. Helens, Ore., fertilizer plant.

Rodney Nahama, president and chief executive officer of 19 year old N&W, said the farmout agreement is a first step and that a broader presence for the California company in Oregon will not occur right away.

Nahama said the company plans to drill three or four holes in 1990 and has committed to drill eight holes in 1991. The company is scheduled to drill at least 25 holes during the agreement's 4 year term.

Oregon Natural Gas Development Co., a subsidiary of Northwest Natural Gas Co. of Portland, is a one third partner in the farmout with N&W.

MIST HISTORY, PROSPECTS

Northwest Natural Gas in 1989 completed a natural gas storage reservoir, Oregon's first, in Mist field for its own use (OGJ, June 19, 1989, p. 59).

Capacity of 7.5 bcf is enough to meet 60-100 of the coldest winter days.

Since Mist field was discovered in May 1979, about 50 wells have been completed as producers. ARCO owns the majority, chiefly in Columbia County.

The wells have delivered a total of more than 40 bcf of gas.

Referring to prospects for future Mist field production in remarks at the company's annual meeting, Nahama said, "We are optimistic that we will be able to find at least that much in our current program" in Oregon.

Nahama also said the farmout agreement has given his company 700 line miles of "high quality (Oregon) seismic data which, when evaluated with the sophisticated techniques that have supported our high success ratio in California, should greatly enhance our prospects.

"The zones being addressed are relatively shallow, and our wells will be approximately 2,000 ft deep with high potential."

The company proposes to spend about $10 million on Mist field through 1993.

N&W retains none of the leases it acquired in northwestern Oregon during a string of state land auctions in the 1980s.

OTHER OREGON WORK

Meanwhile, Norwestco Inc. applied for a permit to drill 129 Howard-State, in 29-9s-23e, Wheeler County, north central Oregon. Projected depth is 5,000 ft.

Norwestco is a subsidiary of F&F GeoResource Associates, Bend, Ore., founded by Lanny H. Fisk, a former geology professor at Loma Linda University, Riverside, Calif., who resides in Bend, Ore. (OGJ, Jan. 16, 1989, p. 74).

The well will be drilled as a follow-up to Steele Energy's 1-28 Keys, drilled in 1984-85, which showed oil and gas at 3,500-5,000 ft.

The wells are on the Donnelly dome.

Fisk has assembled 22,000 acres of leases on the Donnelly dome the past 3 years.

Separately, Northwest Petroleum Association, in a letter to the U.S. Fish & Wildlife Service office in Portland, has expressed concern over the "vast extent and location of lands proposed (in Oregon and Washington) as spotted owl habitat conservation areas" because "significant portions of these lands are areas of active exploration for hydrocarbons or areas that have high potential for hydrocarbon production."

Since the proposed land use restrictions would "preclude efficient exploration activity," the association asked the service to address "the impact of such conservation strategy" in order that "its financial impact (be) understood prior to any final decision.