Exploration/development news briefs, June 6

Cabot Oil & Gas � Palace Exploration � Forest Oil � Shell Canada ...OMV (Pakistan)

Cabot Oil & Gas Corp. said it completed its first operated exploration well on the Continental Land & Fur (CL&F) acreage in Terrebonne Parish, La.,. The CL&F No. 58-2 well, located on the Augen prospect, was drilled 13,100 ft TD and completed in 63 net ft of Bourg sand. The well tested at a rate of 15.4 MMcfd of gas and 108 b/d of oil with no water with a flowing tubing pressure of 9,300 psi through a 21/64-in. choke. The initial shut-in pressure is 9,600 psi. The well should be on stream by late July. Cabot Oil & Gas has a 50% working interest in and a 35% net revenue interest in the well, with Palace Exploration Co. owning the balance of the working interest.

Forest Oil Corp. entered into an agreement with Shell Canada Ltd. to jointly explore and develop a 162 sq mile area of the Southern Foothills near Waterton, Alta. The Shell-operated area has cumulative production to date in excess of 4 tcf from deep structural reservoirs and is anticipated to be a source of significant future exploration opportunities. Work has commenced on a 100 sq mile 3D seismic program to refine several existing prospects and allow mapping of additional exploration prospects. Under the joint venture, Forest anticipates it may spend $10-15 million in 2000 and 2001. Forest will have a 40% working interest in this joint venture.

The government of Pakistan awarded two petroleum exploration licenses to OMV (Pakistan) Exploration GMBH (95%), a subsidiary of OMV AG of Austria, and Pakistani Government Holdings (5% carried) to undertake joint oil and gas exploration activities in Gambat Block No. 2668-4 covering 6518 sq km in Sukkur, Khairpur, and Nawabshah in Bahalpur, Lodhran, and Malsi districts of Punjab. Simultaneously, petroleum concession and joint operating agreements were also signed between the parties. Through a separate assignment Pakistan Petroleum Ltd. and British Borneo Exploration & Production Ltd. secured transfer of 30% each working interest from OMV in Gambat Block. The three joint ventures are likely to survey 300 km of seismic and drill two exploration wells during the initial term of 3 years with a minimum expenditure of more than $ 8.7 million.

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