U.S. BRIEFS

ACQUISITIONS

AMERICAN EXPLORATION CO., Houston, said it intends to acquire Conquest Energy Co. through a purchase of common stock. Plans call for American to pay $1.90/share for 12% of Conquest's outstanding shares, and exchange 0.44 share of American stock for each 1 remaining share of Conquest. As of Dec. 28, 1990, Conquest had 44,463,646 shares of common stock outstanding.

EXPLORATION

DI ENERGY INC. acquired rights from Penn Central Corp., majority stockholder of parent DI Industries Inc., to explore a 42,000 acre tract in Illinois for coalbed methane, conventional gas, and oil. The firms also agreed in principle for Di to acquire rights to another 138,000 acres in Ohio and Pennsylvania. The noncash transaction allows DI to recover exploration and development costs before dividing production income. DI will retain 50% of net cash flow after payout.

TORCH OPERATING CO.'S 1 Paramount Findley 5-2 wildcat in Covington County, Ala., flowed 121 b/d of oil through a 48/64 in. choke with 8 psi flowing tubing pressure from perforations in 11,976-12,007 ft of Cretaceous Frisco City (Haynesville) sand. The well has been placed on pump and is producing 220 b/d. Working interests are operator-torch and Howell Petroleum Co., Houston, 25% each, and Paramount Petroleum Co. Inc., Jackson, Miss., and Houston, 50%.

DRILLING-PRODUCTION

AMERICAN GAS ASSOCIATION said U.S. coal seam production was 21 MMcf in 1978, increasing to 45 MMcf in 1987 and 55 MMcf in 1988, not cubic feet/day, correcting a prior Oil & Gas Journal report (OGJ, Dec. 10, 1990, p. 28). AGA said the correct figures are from "extremely conservative" Energy Information Administration data.

NOBLE DRILLING (U.S.) INC., Houston, completed its purchase of Kerr-McGee Corp.'s U.S. offshore drilling unit, Transworld Drilling Co., for $75 million in cash and notes (OGJ, Dec. 10, 1990, p. 27).

TOTAL MINATOME CORP., Houston, started production from Platform A in 265 ft of water on High Island Block A-553 off Texas, 100 miles south of Sabine Pass. Four wells are producing 26 MMcfd of gas and 720 b/d of condensate through five completions in two Pleistocene sands at depths of 5,500 ft and 7,500 ft. Operator Total Minatome, and Oryx Energy Co. and Hunt Oil Co., both of Dallas, each own 33 1/3% interests in the block.

CONVEST ENERGY CORP., Houston, arranged with an undisclosed French bank to receive a fixed price of $23.80/bbl for about 25% of its expected oil production in 1991. Convest and the bank will settle on 11,500 bbl/month based on average closing prices of New York Mercantile Exchange crude futures. If the Nymex average is greater than $23.80/bbl Convest will pay the bank the difference, and if it is less than $23.80/bbl the bank will pay Convest the difference.

FREEPORT-MCMORAN INC., New Orleans, logged oil and gas pay in two wells on Vermilion Block 161, 45 miles off Louisiana. Its 7 OCS-G 1127 wildcat, drilled to 16,948 ft measured depth, cut 83 ft of net gas pay in five sands on the north flank of a salt dome. The 8 OCS-G 1127 confirmation well, drilled to 16,600 ft measured depth, logged 300 ft of net gas and 19 ft of net oil pay in seven sands. Both wells were cased. The company hopes to begin production on the block late this year.

WHITING PETROLEUM CORP., Denver, purchased producing leases in Texas, Louisiana, Mississippi, New Mexico, Oklahoma, Arkansas, Nebraska, Wyoming, and Colorado during 1990 for a total $30.28 million. The leases, acquired through private limited partnerships, hold net proved reserves of 4.392 million bbl of oil and 14.549 bcf of gas.

DEPARTMENT OF JUSTICE subpoenaed Baker Hughes Inc. and Smith International Inc., both of Houston, and Dresser Industries Inc., Dallas, to answer questions regarding oil field drillbit sales. Smith International said the subpoenas stem from a federal grand jury probe into possible antitrust law violations. Smith and Baker Hughes say they are not targets. All three companies are cooperating with the investigation.

WAINOCO OIL CORP., Houston, 1 E.E. Smith Unit 1 horizontal well in Gonzales County, South Texas, flowed 2,226 b/d of oil and 1 MMcfd of gas through two 1 in. chokes with 130 psi flowing tubing pressure. The well, Wainoco's second in First Shot field, was drilled to 9,400 ft true vertical depth with 4,038 ft of displacement in Cretaceous Austin chalk.

COMSTOCK RESOURCES INC., Dallas, completed its purchase of another 14.7% interest in the Bivins Ranch lease in Panhandle Hugoton field from Ewing Oil Inc. for 1.050 million shares of stock valued at $3.8 million. Comstock now owns 83% of the Bivins Ranch lease in the Texas Panhandle, 30 miles northwest of Amarillo.

COX OIL & GAS INC., Dallas, 1 Paramount Federal 16-14 confirmation well in West Falco field, Covington County, Ala., was completed at 13,288 ft. It is producing 165 b/d of oil from perforations in 12,991-13,006 and 13,020-048 ft of Cretaceous Haynesville sand. Prospect generating partner is Paramount Petroleum Co. Inc.

PIPELINES

QUESTAR CORP. distribution unit Mountain Fuel Supply Co., Salt Lake City, tied or set records for firm gas deliveries to customers in Utah, Southwest Wyoming, and Southeast Idaho during 3 days of record cold weather in late December 1990. Mountain Fuel had firm deliveries of 620 MMcf Dec. 22, 665 MMcf Dec. 23, and 650 MMcf Dec. 24. Previous 24 hr record was 620 MMcf in February 1988.

COMPANIES

BLUE DOLPHIN ENERGY CO., Houston, issued 6.263 million shares of its outstanding stock to majority shareholder Dolphin Pipeline Inc. in exchange for $3.5 million in assumed debt and a "small amount" of cash, clarifying an earlier Oil & Gas Journal report (OGJ, Jan. 7, p. 32).

REFINING

KERR-MCGEE REFINING CORP. started up a UOP continuous catalyst regeneration platforming unit, designed to upgrade 12,500 b/d of naphtha into high octane gasoline blending components, at its Wynnewood, Okla., refinery. UOP, Des Plaines, III., said the CCR unit uses a low platinum R-34 catalyst and can respond to changes in gasoline quality and aromatics market demands.

ENVIRONMENT

BURLINGTON ENVIRONMENTAL INC. Seattle, Chempro Division deployed a 28 ft Marco Class I oil skimming vessel to recover oil spilled Jan. 8 by the MV Sammi Superstars ship during fuel transfer at a Los Angeles Harbor berth.

Copyright 1991 Oil & Gas Journal. All Rights Reserved.