Transocean enters BP pact, completes drilling program

Journal Record, The (Oklahoma City), Mar 22, 2000

HOUSTON (JR) -- Transocean Sedco Forex on Tuesday said that one of its operating subsidiaries has entered into a contract with BP Amoco for the semisubmersible Transocean Rather.

The agreement covers one well, with a minimum duration of 120 days, plus an option to drill two additional wells in direct continuation. The drilling program is expected to begin in the Gulf of Mexico on or around April 1 will generate an estimated $9.6 million in revenues.

Also, Houston-based Transocean said that its semisubmersible Transocean Richardson has completed a drilling program in the Gulf of Mexico with Oklahoma City-based Kerr-McGee and is now under contract to Houston-based Anadarko Petroleum to drill two wells over an estimated 60-day period.

Following completion of the Anadarko work assignment, the rig will return to Kerr-McGee to drill one well for a period of up to 60 days. Revenues to be generated by the Transocean Richardson during the two drilling programs are estimated at $7.5 million.

The Transocean Rather and Transocean Richardson are high- specification semisubmersibles. The rigs represent two of 43 semisubmersibles currently active in the Transocean Sedco Forex fleet.

Panda Energy secures

services contract for plant

BROKEN ARROW (JR) -- Agreements have been approved to provide water and sewer services for Panda Energy International's new $350 million power plant.

The agreements were approved by Rural Water District 4 and the City of Broken Arrow, Garry Hubbard, senior vice president of Panda Energy, said Tuesday.

Panda's 1,000-megawatt facility will be near State Highway 51 between Midway and Oneta Roads. Construction is scheduled to begin in August with the first phase of the plant going on line in late 2001.

"There were some issues that had to be resolved," Hubbard said, "but water district Chairman Wil Pheiff and Broken Arrow Mayor Jim Reynolds always put what was best for the people of this area as their top priority. They deserve a great deal of credit for leading us to this point."

Under terms of the agreement, Broken Arrow will sell Panda an average of 6.75 million gallons of treated water. Rural Water District 4 will provide a portion of the transportation services.

"From a financial standpoint, this plant will be a tremendous asset to our community," Reynolds said. "But equally as important is Panda's commitment to good corporate citizenship. This company gives us a strong foundation upon which long-term community growth can be built."

Steve Anderson, Panda's project director, said plant construction will create some 600 jobs. In addition, the company expects to buy $14 million in local goods and services during this period.

Once completed in the spring of 2002, the facility will provide more than 40 full-time jobs. It is expected to spend up to $5 million annually for goods and services and will contribute more than $3 million per year in local taxes.

Panda Energy International is a privately held, non-regulated electric generation company based in Dallas. Its primary focus is the development, ownership and operation of power plants.

Including the Oklahoma project, Panda has 10 gigawatts of power under development across the United States. Construction is under way on 1,000-megawatt facilities in Marion, Paris and Odessa, Texas. The company also operates plants in Roanoke Rapids, N.C., and Brandywine, Md.

Firm scores in New Zealand

CHRISTCHURCH, New Zealand (AP) B A new oil field on New Zealand's North Island could contain up to 500 million barrels, making it the country's largest, a Texas energy exploration company said Tuesday.

Separately, New Zealand resources concern Fletcher Challenge said a natural gas field in the same region could contain as much as half a trillion cubic feet of gas.

Terry Swift, of Houston-based Swift Energy, said the Rimu oil field, about 185 miles southwest of Auckland, had flow-tested 1,527 barrels of oil and about 5 million cubic feet of gas a day. The oil flow would come to more than 2,000 barrels a day in production.

Swift said the partners in the exploration project believe they have only intersected the edge of the field and that the nearby Kauri structure, which is partially offshore, could contain between 200 million and 500 million barrels of oil.

Swift will drill another two wells in the Rimu field starting midyear, followed by a test well in the adjacent Kauri prospect.

Fletcher Energy chief operating officer Lloyd Taylor said a decision on the Pohokura-1 gas find, located 3 miles off the Taranaki coast, would likely be made in the second week of April.

Commercial development could occur within three years, he said.

Global gets funding

HOUSTON (JR) -- Global Link Technologies has obtained funding for recompletions and remedial workovers of its oil and gas properties in Creek County, Okla.

Work will begin immediately.

Global expects 19 wells will be in full production capacity during the second quarter.

Phase I revenue projections are expected to be $325,000 per year. Phase II will include the secondary recovery of oil in the Red Fork formation, which could increase revenues to $750,000 year.