Magnum Hunter Expands Gulf of Mexico Drilling Program
Magnum Hunter Resources, Inc. has significantly expanded its drilling program in the Gulf of Mexico through several recent acquisitions and the commitment of new capital. Magnum Hunter acquired a 25 percent working interest in four Gulf of Mexico offshore prospects from Remington Oil and Gas Corporation. The first well in this new drilling program is scheduled to commence during the first week of January on East Cameron Block 364. The company also acquired a 100 percent working interest in Main Pass Block 178 from Union Pacific Resources Group, Inc.Two recently drilled wells on this block have indicated pay and are currently suspended. The company is reviewing development plans for this project in the first half of 2000 after the recent acquisition of 3-D seismic.
Noble Drilling Files Suit
Noble Drilling Corporation, along with its subsidiaries Noble Drilling Services Inc. and Noble Drilling (U.S.) Inc., has filed suit against Samedan Oil Corporation and Mariner Energy, Inc. for breach of contract. In recent years, Noble Drilling has focused on increasing the number of rigs in its fleet capable of deepwater offshore drilling. A principal component of this deepwater strategy has been the conversion and upgrade of rigs to drill in water depths greater than 5,000 ft. Five of the six rigs in this program have been delivered under long-term contracts. Noble Max Smith was delivered on December 22, 1999 for use by Amerada Hess Corporation.
E&P Spending 2000: A Disappointing Gain?
While the theoretical jury deciding which direction the offshore drilling market will take is still out, recent data suggests that the level of spending internationally will disappoint. Calling a 10.2% gain in spending a disappointment may seem a bit harsh, particularly given the depths to which the market has fallen in the previous two years. But considering the price per barrel has catapulted from the $10 level early in 1999 to the mid-20's by the beginning of 2000, it is fair to say expectations were set a bit higher. According to a recent Lehman Brothers survey, the following are the spending plans - by world region - for more than 320 oil companies. 2000E 1999E Year % Chg. # Co. U.S. U.S. Total U.S.
