March 1999
News & Resources

Companies in the news

March 1999 Vol. 220 No. 3  Company News  Pease Oil and Gas Co. sold its remaining 39 interests in Colorado, Nebraska and Wyoming to focus on the Gulf Coast. Santa Fe and Snyder Oil Corp. in

March 1999 Vol. 220 No. 3 
Company News 

Pease Oil and Gas Co. sold its remaining 39 interests in Colorado, Nebraska and Wyoming to focus on the Gulf Coast.

Santa Fe and Snyder Oil Corp. intend to merge the two companies. The new firm be renamed Santa Fe Snyder and will have a market capitalization of over $1 billion with estimated 1998 year-end reserves of about 310 million boe. Combined production for 1999 is expected to be about 110,000 boed with 55% gas. The firm will have a substantial North American gas resource with significant core areas in the Rocky Mountains, Permian basin and Gulf Coast regions as well as in South America, West Africa and Southeast Asia.

Nabors Industries acquired Pool Energy Services Co. for $518 million in a stock-for-stock transaction. The combined firm will operate about 440 land drilling and 750 workover/well-servicing rigs in North America, 100 drilling and workover rigs internationally, and 60 offshore rigs.

Through its wholly-owned subsidiary, Canadian Abraxas Petroleum Ltd. (Canaxas), Abraxas Petroleum acquired New Cache Petroleums Ltd. Plans are to integrate New Cache operations into the existing operations of Canaxas and Grey Wolf Exploration, Inc., with Grey Wolf eventually acquiring as much as 50% of New Cache assets.

TGS-NOPEC Geophysical Co. began a 4,971-mi non-exclusive 2-D seismic survey, offshore Mahakam Delta in east Kalimantan, Indonesia. Concentrating on deepwater areas of Kutei and Lariang basins, it should be available to aid evaluation of new acreage Pertamina is scheduled to release in late 1999.

Euro Energy, Inc., began negotiations with Breeding & Associates Oil & Gas Development Co. (B&A). As part of the agreement, Euro, which could become a 75% owner of B&A’s assets, could provide funds to develop three major projects for B&A. These projects comprise 150,000 acres of non-producing acreage in Texas and Oklahoma and 140 wells in East Texas. B&A will still hold 25% in all ongoing development projects.

Weatherford International, Inc., acquired West Coast International for $18 million. West Coast supplies pressure control and drilling tools in the Dutch and Danish markets, providing Weatherford inventory and service capabilities in the North Sea area, West Africa and the Caspian region.

Cheniere Energy Inc. sold its 15% working interest in three prospects to Beta Oil & Gas Inc., providing Beta an option to buy a 15% interest in three additional Cheniere prospects, all located within the 3-D seismic program in the Transition Zone of Cameron Parish, Louisiana.

Evergreen Resources Inc. agreed to acquire the coalbed methane gas interests, in the southern Colorado portion of the Raton basin, from CIS Oil & Gas Inc., a subsidiary of Infinity Inc., for about $8.5 million.

Western Geophysical agreed with Yemeni Ministry of Oil and Mineral Resources to promote Blocks 6, 7 and 8 in the Shabwa province, Blocks 25, 26 and 27 in the Al-Hodidah province, and Block 38 in Socotra, offshore Arabian Sea. The agreement comprises five onshore and two offshore open lease blocks.

In Indonesia’s first international pipeline gas sale, the gas sales contract with Conoco Indonesia Inc., and partners in the West Natuna Sea field, was extended with Indonesian state oil company Pertamina for 60 years. The contract to supply gas from West Natuna field to a consortium led by Singapore’s Sembawang Engineering and Construction culminates a two-year plan to develop and produce about 325 MMcfgd of natural gas from the field by 2001. Meanwhile, Pertamina also renewed other contracts for the area with Gulf Resources and Premier Oil.

Conoco swapped interests with Exxon in 59 deepwater blocks in the Gulf of Mexico. Conoco acquired a 50% interest in 29 of Exxon’s blocks, while Exxon acquired a 50% interest in 30 of Conoco’s blocks. Exxon was sole lessee of its 29 blocks, and will retain a 50% interest in each one. Exxon now has an interest in 370 deepwater blocks.

Venezuela’s PDVSA bought out the contracts on four barge drilling rigs owned and operated by an ENSCO subsidiary and agreed to an early termination for two more ENSCO-owned barge drilling rigs. PDVSA said it had decided to reduce the number of rigs it had under contract, citing declining cash flow from low oil prices.

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