Oil producers in two western states are purchasing small refineries to run production from their fields.
The refineries involved are Chrysen Refining Inc.'s 12,500 b/d unit at Woods Cross, Utah, and Petro Source Refining Corp.'s 3,500 b/d plant at Tonopah, Nev.
Utah acquisition
Inland Resources Inc., Denver, closed the acquisition of the Woods Cross plant, where it plans to process black wax crude it produces in Monument Butte field, Duchesne County, Utah, in the Uinta basin.
Inland operates more than 200 wells in the field, which covers 215 sq miles and had about 350 million bbl of original oil in place in Eocene Lower Green River sand at about 5,500 ft. Its reserves are about 10 million bbl, and it is expanding waterflood operations there.
The company, which has been drilling a growing number of wells per year since acquiring its first Monument Butte properties from Lomax Exploration Co. in 1994, drilled about 80 wells there in 1997.
Nevada purchases
Foreland Corp., Lakewood, Colo., signed an option and purchase agreement to acquire certain assets from Petro Source Corp., Houston, including the Nevada refinery and trucks that gather crude and distribute products.
The plant is about 100 miles southwest of oil fields in Railroad Valley of Nye County, from which production is presently trucked to Tonopah.
Foreland said integration of production, processing, and marketing will establish price protection, multiple profit centers, and increased revenues. The refinery pro- cesses crude produced by Foreland and other operators.
Foreland also agreed to purchase the 40% working interest in Ghost Ranch oil field held by Barrett Resources Corp., Denver. That will give Foreland 100% interest.
Foreland also completed $16.9 million in debt financing to be used for 3D seismic acquisition, drilling of 3D seismic prospects, producing property acquisition, debt retirement, and Foreland's planned enhanced recovery program and development drilling in Eagle Springs oil field. The EOR project would be Nevada's first (OGJ, July 7, 1997, p. 80).
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