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Ky/Tenn Report
Volume 8, Number 67 JANUARY 2001
TOGA MEETS AT MOUNTAIN VIEW, JANUARY 25TH- The Tennessee Oil & Gas Association will hold its monthly meeting at the
Mountain View Golf Course and Lodge at 6:30 p.m.(CST),Thursday, January 25th.
Two new member companies have been invited to make presentations. Details are still being
worked out. The Mountain View Golf Course and Lodge is south of Allardt, which is south of
Jamestown. At the four-way stop in Allardt, turn south (toward Crossville). The Mountain
View Golf Club and Lodge is on the left about 3 miles down. Informal reception at 6:00
pm.(CST), dinner at 6:30 p.m. and the meeting will begin at 7:00 pm.
GAS GOES THROUGH THE ROOF, OIL TAKES A HIT- Citizens Gas Utility District is paying a whopping $9.82 MMBTU, less
compression and transportation. South Kentucky Purchasing Co. was paying $30 a barrel for
oil on December 1, 2000, then prices dropped like a rock to $22.50 on Dec. 28th.
Crude dropped to $22 on the 29th but began recovering a bit to $22.75 on the 2nd
and was up to $24 on Jan. 4th.
GREAT TURNOUT FOR CHRISTMAS PARTY-THANKS SPONSORS!
A.C. Insurance, Inc., Anne Byrd, B&H Supply, Basin Oil & Gas
Corp., Bill Ray, Daugherty Resources, Inc., East Tennessee Consultants, Halliburton
Services, Ingersoll-Rand, Mark Liming, McJunkin Appalachian, Miller Petroleum, Inc.,
Norris Well Service, Ohio Kentucky Oil Corp., Pegasus Energy Resources Corp., Saint Joseph
Petroleum, South Kentucky Purchasing Co., Rusty Liming, Target Oil & Gas Corp., and
Young Oil Corp.
BP BEAR CREEK OIL, LLC CEASES OPERATIONS- In
a letter to operators, dated December 21, 2000, signed by Patsy Smith, BP Bear Creek Oil.
LLC gave operators notice that it would cease operations at the end of the year. The
letter noted that the increase in fuel price has had a significant effect on the cost of
gathering and transporting the oil. It also pointed out that "Bi-Petro, Inc.,
Springfield, Illinois, is interested in expanding its purchasing area to include certain
areas we have been servicing." Patsy promised to respond to questions or help during
the transition period. She can be reached at 800-467-1601 or call Karen Suey at
800-369-0181.
ONE MORE BOOM, THEME OF TOGA’S PRESIDENT’S MESSAGE- The following is a very abbreviated version of the TOGA President’s
message that will appear in the next edition of the American Oil & Gas Reporter:
"Please, Lord, let there be one more boom. I promise I won’t
mess this one up." is the prayer and promise that has been uttered by oilmen for
decades, when the boom-bust cycle of the oil business was in the bust mode. There is
little doubt that our prayers for a boom have been answered, with crude oil prices above
$30 a barrel and natural gas futures topping $9 MMBtu for the first time in history.
It really is a great time to be in the oil business. And we deserve it.
The crude oil and natural gas prices we are now experiencing far surpasses our wildest
expectations. But we didn’t get to this point without pain. We all had to suffer
through several years of unrealistically low prices. For those of us who survived, we
deserve to be in a position to finally make a decent return on the investment of a
lifetime in the domestic oil and gas business.
Those opportunities range across nearly 150 miles of the great state of
Tennessee. From shallow oil, really shallow, in upper middle Tennessee to deep gas in
upper east Tennessee, with thousands of holes that should be deepened in between, the
exploration opportunities in Tennessee certainly exist.
In middle Tennessee, in Clay, Pickett and Overton Counties, Young Oil
Corporation, Ohio Kentucky Oil Corp., Basin Oil Corp., Target and Gas Corp. and others are
bringing in big, sometimes flowing wells, out of Ordovician age formations at less than
two thousand feet.
With plenty of open leases and low drilling costs, this area has become
a target of opportunity. Now that natural gas prices are soaring, an extensive gas
gathering system that has been shut in is now being renovated and is expected to be
operating in early 2001, giving operators a market for the gas that is often found with
the oil.
In eastern Tennessee, Tengasco, Inc., a Knoxville-based publicly owned
firm, has been developing some 50,000 acres of leases in its Swan Creek field. The firm
now has more than 20 gas wells drilled in the Knox at depths of around 5,000 feet. These
wells have tested 1 to 10 MMCF per day and are now ready to go on stream. A pipeline to
market is currently under construction and is expected to be operational in early 2001.
Miller Petroleum, Inc., has also been active in the Swan Creek field through a farmout
from Tengasco. Recently, it announced it had completed its second Trenton oil well in the
Swan Creek field. The Purkey #2 was drilled to a total depth of 2,566 feet and tested 100
barrels of oil a day. (Continued on page 2)
(Continued from page one)In between the deep gas play in east
Tennessee and the shallow oil play in middle Tennessee there are nearly 4,000 abandon
wells that beg to be deepened. Only a handful of these wells have reached the Ordovician
age formations that are producing both to the west and to the east. For the most part,
they were drilled to less than 2,000 feet to the Monteagle and Ft. Payne, both
Mississippian age formations. The wells never cut the Sunnybrook, Trenton, Stones River,
Murfreesboro, Wells Creek and Knox formations that are productive 50 miles to the west at
shallower depths and to the east at from 1,000 to 2,000 foot deeper.
Here in Tennessee, we believe that our prayers have been answered.
We’ve got our boom. And we aren’t going to mess this one up if we can possibly
help it. We plan to fully capitalize on the opportunities presented here in Tennessee. We
invite you to come have a look see for yourself. We believe you will like what you see in
Tennessee.
OIL & GAS BOARD JANUARY MEETING - The
Tennessee Oil & Gas Board will meet Friday, January 19th at 9 a.m.(CST)on
the 17th floor of the L&C Tower, 401 Church Street, Nashville to review the
contested case of Young Oil Corporation for a spill on the Roger Wright #1 well. There is
a $10,000 fine pending. The TOGA board has voted to support Young in this case.
TOGA BATTLES STATE OVER FEES- At $4,000 a
year, Tennessee has the highest licensing fee for logging companies in the South. Now they
want to add $2,000 a year more. Steve Norris, Norris Well Service, alerted TOGA and Steve,
Bill Goodwin, Lynn Wagoner, Ray Calvert and Jim Washburn spoke against the increase at a
public meeting, Jan 4th. This fight goes on.
TENNESSEE DECEMBER WELL PERMITS - Campbell
County- Miller Petroleum Inc., Permit # 9668, Koppers 25-B, Lafollette Quad, 3000
ft./ Hancock County- Miller Petroleum, Inc., Permit #9663, Worlie Purkey #3,
Swan Island Quad, 5000 ft./ Overton County Young Oil Corp., Permit #9658,
Douglas Bowmer #2, Alpine Quad, 2000 ft./ Wilson Oil & Gas, Inc., Permit #9659, Linda
Brown #6, Alpine Quad, 2500 ft./ Basin Oil & Gas Inc., Permit #9660, Jimmie & Jack
Clark #1, Alpine Quad, 200 ft./ Ohio-Ky Oil Corp., Permit #9661, Wayne Brown #20TW,
Livingston Quad, 2100 ft./ Young Oil Corp., Permit #9662, Douglas Bowmer #3, Alpine Quad,
2000 ft./ Pryor Oil Company, Permit #9664, Allen Sells 231, Alpine Quad, 2500 ft./ Gold
Eagle Eq Resources, Permit #9665, Ledford Heirs #2, Alpine Quad, 2000 ft./ Pryor Oil
Company, Permit #9667, Allen Sells #3, Alpine Quad, 2500 ft./ John Henry Oil Corp., Permit
#9669, Roger McDonald #7, Alpine Quad, 2000 ft./ Young Oil Corp., Permit #9671, Austin
Choate #6, Alpine Quad, 2000 ft./ Southeastern Energy, Permit #9672, Roy Parrott #3,
Livingston Quad, 2000 ft./ Pickett County- Bottom Line Oil & Gas Inc.,
Permit #9666, Holly Creek Resort, Inc. #1, Riverton Quad, 2000 ft./ John Henry Oil Corp.,
Permit #9673, Roger McDonald #8, Alpine Quad, 2000 ft./
KENTUCKY DECEMBER WELL PERMITS, as of
December 15, 2000-Clinton County-Wilco Leasing, LLC, Permit #91791, Paul
Wood #3/ Cherry Oil & Gas, Inc., Permit #91794, Margie Case #1/ WM G Talbott, Permit
#91815, WG Talbott #B-7, Papineau Construction Co., Permit #91816, Harold Bledose #5/
Wilco Leasing LLC, Permit #91834, Paul Wood #4/ Cumberland County- Jimmy
Reliford Drilling Co., Permit #91803, George Griffiths #1/ Leonard Pfannestiel, Permit
#91807, Richard Keen #3/ Leonard Pfannestiel, Permit #91835, Richard Keen #6/ Knox
County-Daugherty Petroleum, inc., Permit #91800, Equitable Production #HE-68/ NAMI
Resources Co., LLC, Permit #91827, Tommy & Gambrell #1/ Merit Gas & Oil, Inc.,
Permit #91828, Elbert Hampton #1/ Merit Gas & Oil, Inc., Permit #91829, Corey Blevins
#1/ NAMI Resources Co., LLC, Permit #91837, Bill Helton #2/ NAMI Resources Co., LLC,
Permit #91836, Kenneth Engle #2/ NAMI Resources Co., LLC, Permit #91838, Raleigh Engle #2/
NAMI Resources Co., LLC, Permit #91848, Matt Garrison #1/ Letcher County-
Charles Bradley & Basin Energy Co., Permit #91821, Stanley Brown #1-TCharles Bradley
& Basin Energy Co., Permit #91839, Coleen Breeding #1/
The Ky/Tenn Report is published monthly and distributed at no cost to
oil and gas operators in Tennessee and Southern Kentucky. It is owned and operated by W.D.
Goodwin, Inc., The editor is Bill Goodwin, e-mail: tmdbill@aol.com It is the official
publication of the Tennessee Oil & Gas Association, 750 Old Hickory Blvd, #170,
Brentwood, TN, 37027. Phone 615.263.1291, Fax 615.263.1282. Web site: www.tennoil.com.
KY/TENN REPORT
750 OLD HICKORY BLVD, #170
BRENTWOOD, TN 37027 |
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