U.S. BRIEFS

ACQUISITIONS

BAKER HUGHES INC., Houston, acquired Eastman Christensen Co. from Norton Co. for $550 million cash plus a 5 year warrant to purchase as many as 8 million shares of Baker Hughes stock at $36.75/share. To comply with a U.S. Justice Department agreement, Baker Hughes will divest Hughes Tool Co.'s diamond bit business. Eastman becomes a division of Baker Hughes Drilling Equipment Co.

COGENERATION

A 50-50 PARTNERSHIP of Conversion Industries USA Inc. and ERES Cogenics Inc. will build and manage a combined enhanced oil recovery facility and 20,500 kw cogeneration power plant in Kern County, Calif. Estimated cost is $50 million. The cogeneration plant will supply 160,000 lb/hr of steam for heavy oil recovery which, at full production, is expected to yield about 2,500 b/d.

DRILLING-PRODUCTION

CHILES OFFSHORE CORP., formerly Chiles-Alexander Offshore Inc., Houston, bought three mobile offshore drilling rigs in first quarter 1990. Two of the rigs, purchased from John Fredriksen, are independent leg cantilever jack ups rated for 250 ft of water. Chiles acquired the third, an independent leg, slot type jack up with a 300 ft maximum water depth rating, from Comet Drilling.

ARCH PETROLEUM INC., Fort Worth, acquired working interests in about 200 oil and gas wells in Winkler County, Tex., for $5.9 million. The acquisition includes the remaining 50% working interest in wells operated by Arch in Keystone multipay field and a nonoperated working interest in the Keystone Holt Waterflood Unit. Acquired reserves are estimated at more than 15 bcf of gas equivalent.

PLAINS PETROLEUM CO., Lakewood, Colo., amended natural gas sales contracts with its major gas buyer, KN Energy Inc., to provide for decontrol of gas prices effective last Jan. 1. The contracts cover production from Plains' Kansas and Oklahoma Hugoton leases. The changes will not alter the 1990 contract price or the process of adjusting future prices. Left intact are provisions for retroactive changes in 1987-89 prices.

GEODYNE RESOURCES INC., Tulsa, purchased interests in producing oil and gas leases from Muirfield Resources, also of Tulsa, for about $16.7 million. Geodyne acquired working interests in 30 wells and mineral interests in about 470 wells, with 8.3 bcf of gas and 181,000 bbl of oil reserves, in the Anadarko and Arkoma basins of Oklahoma. Geodyne also bought working interests in about 60 wells in Garvin County, Okla., with reserves of 207,000 bbl and 7.4 bcf.

ARKLA EXPLORATION CO., Shreveport, La., plans to have three to five rigs working in the Mississippi-Louisiana area through 1990 after it tested its 1 Neyland Heirs in Amite County, Miss. The well flowed 360 b/d of oil and 458 Mcfd of gas through a 10/64 in. choke with 2,024 psi flowing tubing pressure from perforations at 12,041-051 in lower Tuscaloosa.

BAROID CORP., Houston, was acquitted by a New Orleans federal court jury of charges it fixed prices on completion fluids. The Baroid probe began in 1987.

BROCK EXPLORATION CORP., New Orleans, acquired about 360,000 bbl equivalent of oil for $1.015 million, bringing its total reserves to 656,000 bbl of oil equivalent. Brock plans to increase its net oil and gas sales to about 1,600 b/d of oil equivalent.

PROCESSING

PRIDE REFINING INC., Abilene, Tex., will add gasoline production units, including super unleaded, and increase its throughput to 45,000 b/d. To fund the expansion, Pride plans to use some proceeds from a public offering of 3.7 million units in a master limited partnership, Pride Cos. LP, which it hopes will gross $72.15 million.

CHEVRON CHEMICAL CO. let a $100 million engineering and procurement contract to John Brown E&C Inc., Houston, for expansion of its high density polyethylene plant in Orange, Tex. The project will increase capacity to 860 million lb/year from 580 million lb/year. Engineering will be completed in early 1991.

EXPLORATION

MINERALS MANAGEMENT SERVICE released the draft environmental impact statement for oil and gas lease Sale 124 in the Beaufort Sea. The sale area, 3-140 miles off Alaska's North Slope, covers 4,095 blocks-22.1 million acres-in water depths of 63,280 ft. The sale is scheduled for April 1991.

COMPANIES

CONOCO INC. will move, from Hobbs, N.M., to Midland, Tex., and Oklahoma City its administrative and technical groups supporting New Mexico exploration and production. Conoco expects to complete the move, involving about 80 jobs, by June 1.

TRANSPORTATION

ENDEVCO INC., Dallas, plans to lay 44 miles of 24 in. gas pipeline from near Delhi, La., to its Mississippi Fuel Co. system near Vicksburg, Miss. The 300 MMcfd capacity line will connect ANR, Columbia Gulf, and Tennessee Gas pipelines at an expected cost of $26 million. Endevco filed its plans with the Federal Energy Regulatory Commission.

THE FEDERAL TRIAL of Exxon Corp. on criminal charges stemming from the Exxon Valdez oil spill is to start June 18. Exxon will stand trial in Anchorage, Alas., on two felony and three misdemeanor counts. It faces as much as $700 million in fines if convicted.

TE PRODUCTS PIPELINE CO. LP, Houston, completed hydrostatic testing of all 165 miles of 8 in. propane pipeline between Watkins Glen and Selkirk, N.Y. Tepco hopes to finish drying the line by Apr. 23. It will then be ready to resume service pending approval from government agencies. The line experienced an explosion last month as a result of a propane leak (OGJ, Mar. 19, p. 29).

NATIONAL FUEL GAS CO., Albany, N.Y., bought Allegany storage field near Salamanca, N.Y., from Felmont Oil Corp. for $9.1 million. The 3,414 acre underground gas storage unit includes 14 wells and a 1,000 hp compressor station. Estimated capacity, after improvements, will be 2 bcf.

INTERCON GAS INC., Houston, applied to the Missouri Public Service Commission for a permit to lay a 77 mile gas pipeline from a point near Festus, Mo., to Rolla, Mo. The 6 in. Mid Missouri Pipeline, expected to cost $9 million and be completed in late 1991, will have initial capacity of about 15 MMcfd.