U.S. BRIEFS

REFINING

CIT-CON OIL CORP., a joint venture of Citgo Petroleum Corp. and Conoco Inc., let contract to Badger Co. Inc., Cambridge, Mass., to provide engineering, procurement, and construction inspection services for the revamp of its lube oil refinery at Lake Charles, La. The $40 million project, which includes revamp of process units, improvement in product quality, and increased capacity, is to be complete in spring 1992.

PIPELINES

IROQUOIS GAS TRANSMISSION SYSTEM received requests during its open season for 107.5 MMcfd of short term firm transportation service starting Dec. 1 (OGJ, Oct. 21, p. 38). With previous contracts, Iroquois estimates it may be transporting as much as 148.6 MMcfd when the system starts up this month. Iroquois also received requests for an added 250 MMcfd of long term firm service beginning in 199295, which would require expansion.

ACADIAN GAS CORP., Houston, and Nerco Oil & Gas Inc., Vancouver, Wash., agreed to invest about $8.5 million each in Evangeline Gas Pipeline Co. LP, a new partnership that will buy Nerco's gas sales contract with Louisiana Power & Light Co. (LP&L) for about $75 million. Evangeline will lay a 30 mile line and sign a 20 year contract with LP&L to deliver about 720 bcf of gas. Acadian will supply most of the gas and will buy about 18.5 bcf/year from Nerco.

FEDERAL ENERGY REGULATORY COMMISSION delayed the effective date of its rule governing pipeline construction issues (OGJ, Oct. 28, p. 24). The rule was to take effect Nov. 19, but 42 gas companies and groups asked FERC to postpone it, some of them urging a delay until after FERC issues its rulemaking on comparability of pipeline service.

DRILLING-PRODUCTION

MARATHON OIL CO.'S delineation well on South Pass Block 87 in the Gulf of Mexico cut 82 ft of oil and gas pay, establishing a hydrocarbon column covering more than 600 ft of structure. The well, in 370 ft of water 38 miles south of Venice, La., reached total depth 16,71 5 ft from a surface location 2,300 ft southwest of the discovery well. Operator Marathon, Amerada Hess Corp., and OKC Limited Partnership each own one third interest in South Pass Block 87.

TIDE WEST OIL CO., Holdenville, Okla., 2 Wilson Ranch horizontal well in LaSalle County, Tex., flowed 2,132 b/d of oil and 1.29 MMcfd of gas through a 1/2 in. choke with 500 psi flowing tubing pressure from Cretaceous Austin chalk. The well is the company's most productive to date, producing about 40,000 bbl of oil while drilling. Tide West is drilling its third well on the lease.

NERCO OIL & GAS began production from a four pile platform in Ship Shoal Blocks 201/202 field off Louisiana. With installation of the B platform, recent development wells, and recompletions, production in the field increased to 4,300 b/d from 2,400 b/d. The field, in 108 ft of water, produces from multiple Pleistocene pays at about 10,000 ft. Nerco holds a 74% working interest.

EQUITY OIL CO., Salt Lake City, bought a 0.5% working interest in Rangley Weber Sand Unit in Rio Blanco County, Colo., under a preferential right of purchase for $4.6 million. The purchase will add 797,000 bbl of proved developed reserves and about 153 b/d of production to Equity's base. It brings Equity's total working interest in the unit to 4.6%.

PRIMEENERGY CORP., Stamford, Conn., agreed to buy interests in 17 producing oil and gas wells in Alabama Ferry field in Leon County, Tex., for $4.25 million from Global Natural Resources Corp. of Nevada, Houston. PrimeEnergy will assume operatorship of 15 of the wells. The deal is to close in mid-December.

EBCO U.S.A. INC., Oklahoma City, will offer 1,250 productive oil and gas leases in 17 states at a no minimum bid sale Dec. 10-12 in Dallas. The leases will be sold for more than 50 companies.

GAS PROCESSING

ENRON GAS PROCESSING CO. signed a definitive agreement to acquire Tenneco Natural Gas Liquids Corp. and Tenneco Methanol Co. for about $632 million--$523 million in cash, assumption of $7 million in debt, and $102 million for completion of a 15,300 b/d methyl tertiary butyl ether plant under construction at La Porte on the Houston Ship Channel.

COMPANIES

ENSIGN OIL & GAS INC., Denver, acquired a majority interest in Bonray Energy Corp., Oklahoma City, through a merger effective Nov. 1. Bonray, renamed EOG (Oklahoma) Inc., will be maintained as an Ensign division. The $8 million acquisition involves interests in 155 oil and gas wells in Oklahoma, Texas, North Dakota, Kansas, and New Mexico with reserves estimated at 700,000 bbl of oil and 2.3 bcf of gas as of last Sept. 1.

DAMSON OIL CORP., New York, filed a Chapter 11 plan of reorganization with the Houston federal bankruptcy court (OGJ, July 1, p. 35). The plan includes completing the sale of most of Damson's oil and gas assets to Parker & Parsley Petroleum Co., Midland, Tex., for shares of Parker & Parsley common stock.

WELLTECH INC., Houston, agreed to buy assets of the Signal Well Service division of Barto/Signal Petroleum Inc., consisting of 11 service rigs and related equipment based in Long Beach, Calif. Welltech plans to incorporate the rigs and equipment into its Long Beach operations. Completion of the deal is expected within the next 30 days.

EXPLORATION

COLUMBIA GAS DEVELOPMENT CORP., Houston, 19-1A Kane Springs Federal horizontal wildcat in Grand County, Utah, flowed an average 1,158 b/d of oil and 234 Mcfd of gas through an 11/64 in. choke with 2,526 psi flowing pressure from Pennsylvanian Cane Creek. Site is 6 miles southeast of Columbia's 27-1 Kane Springs Federal discovery (OGJ, Apr. 22, p. 36). A third wildcat, 28-1 Kane Springs Federal, is being drilled.

BUREAU OF LAND MANAGEMENT'S eastern states office will accept suggestions for land to be included in a proposed joint oil and gas lease sale with Michigan in July 1992. Comments will be accepted until close of business Jan. 31, 1992.

GOVERNMENT

DEPARTMENT OF INTERIOR published a 145 page atlas detailing 250,000 sq nautical miles of the floor of the Bering Sea off Alaska. The atlas, available from the U.S. Geological Survey, includes sonar images as well as magnetic, gravity, and seismic reflection profiles of the sea floor.

Copyright 1991 Oil & Gas Journal. All Rights Reserved.