ARCH PETROLEUM ANNOUNCES RAILROAD COMMISSION DECISION
ARCH PETROLEUM ANNOUNCES RAILROAD COMMISSION DECISION FORT WORTH, Texas, Sept. 10 /PRNewswire/ -- Arch Petroleum Inc.
(NASDQ: ARCH) announced that the Railroad Commission of Texas (RRC) had issued a final order amending the field rules in the Keystone Ellenburger Field, Winkler County, Texas.
The Keystone Ellenburger Field has been the subject of an extensive series of hearings before the RRC to determine the most effective production methods and rules for maximizing oil and gas recovery. In addition to the existing allowables for oil and gas wells, the RRC established a bonus allowable of 1/2 mcf of natural gas per barrel of water produced from the Ellenburger formation. In reaching its decision, the RRC found merit in that aspect of the arguments of Bass Enterprises Production Company and Chevron U.S.A. Inc. which supported the production of large quantities of formation water intended to decrease reservoir pressure and enhance the ultimate recovery of oil and gas reserves. Bass and Chevron each performed extensive modeling of the Ellenburger reservoir, and in sworn testimony before the RRC, their representatives estimated that their producing techniques would allow the recovery of 450 - 480 billion cubic feet of gas, while their estimates of recoverable oil ranged from 6 - 42 million barrels of oil. Arch's interests aggregate approximately 20 - 25 percent of the total field. Arch president Larry Kalas stated, "Arch intends to work diligently to implement the RRC's order, and has established an initial goal of the production of 20,000 - 30,000 barrels of water per day. This would allow Arch to produce 10,000 -15,000 mcf per day in addition to the oil which is produced. The strong gas market should allow Arch to choose from several marketing alternatives." Arch Petroleum Inc. is an independent oil and gas exploration and production company headquartered in Fort Worth, Texas, with interests in producing properties in Texas, New Mexico, Oklahoma, Louisiana and North Dakota. Arch Production Company is its wholly-owned subsidiary. Arch participated in natural gas transmission through its interest in Saginaw Pipeline Company L.C. -0- 9/10/92 /CONTACT: Randall W. Scroggins, vice president of Arch Petroleum Inc., 817-332-9209 or 800-772-8558/ (ARCH) CO: Arch Petroleum Inc. ST: Texas IN: OIL SU:
LD -- NY088 -- 8199 09/10/92 16:31 EDT
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|Date:||Sep 10, 1992|
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