329, a $12,50.000 purchase, produced 1,556 b/d and 1.3 MMeld in March from one platform in the northwest quadrant. Development drilling began in May from a second 18-slot platform installed late last year. El 338 and 339 are on the south flank of the feld.

Exxon acquired E! 332 for $38 163,600 in March 1971. In March 1975, El 332's one producing well averaged 910 b/d and 742 Micid. Exxon drilled the A-16 into the northeast corner of El 332 from its Platform A in the southeast corner of EI 314. Production commenced in late 1974.

Texaco and Gulf Oil Co.-U.S., 50-50, have installed an 18-slot platform and started development drilling on Eugene Island 313, acquired for $73,372,000 in the Mar. 23, 1974 sale. Texaco's first exploratory hole in the block last year cut 300 ft of oil sand and 100 ft of gas sand, exteading the proved area westward. The company drilled two joint exploratory holes on the lease line between EI 313 and Exxon's EI 332.

Last October, Exxon and Mesa (7225) paid $17,138,600 for Eugene Island 329, in hopes of extending the eastern proved limits. No drilling has been done on EI 329.

East Cameron 271. The Dec. 15, 1970, sale yielded another major producer in East Cameron 271 field. March production from EC 271 averaged 10,111 b/d and 539.4 MMcfd from five tracts acquired for $66,966,

135.

East Cameron 270 was acquired by POGO, 50%; Mobil, 40%; Mesa Petroleum Co., 5%; Pinto, 2%; ECEE, 25%; and Texas Production, 1%, for $32,156,573. March output averaged 318.2 MMcfd and 1,068 bc/d.

As operator, POGO has spent about S66 million on the lease, including bonus, two 18-slot platforms, production equipment, and exploratory and development drilling. EC 270 commenced production in the third quarter of 1973 and has peaked.

Tennoco and Texaco are producing EC 251, EC 255, and EC 272. Tenneco has installed four 12-slot platforms on EC 272. At last report, the jacket for a fifth was in place, and the deck sect'on was going on.

East Cameron 272, acquired for 22,821, 178, averaged 8,723 b/d and 66.5 Mefd in March.

C 271, for which Texaco-Tenneco and $22,$21,721, is classified as producible, shut-in. One of four expend

bought the three tracts for $63,877,000.

The tracts are on the west and north flank of South Fass 61 field. They were credited with average production of 4,145 b/d and 3.4 MMcfd in March. ARCO drilled into South Pass 17 from Platform A in South Pass Block 60 and into South Pass 50 from Platform C in SP 60.

Several other tracts acquired in the 1970's registered significant production in March, according to the USGS. Tracts include:

Eugene Island 295, with average production in March of 5,007 b/d and 337.6 MMcfd, acquired by Placid Oil Co. et al. for $33,184,350; EI 296, 2,201 b/d and 198.4 MMcfd, Exxon-POGO, $15,031,600; Eugene Island 306, 3,107 b/d and 78.3 MMcfd, Placid et al., $21,060,350; East Cameron 321, 4,861 b/d and 3.5 MMcfd, Marathon, $2,010,000; Vermilion 247, 2,318 b/d and 69 MMcfd, Shell, $3,898,000; and Vermilion 320, 116.9 MMcfd and 758 b/d, Sun, $6,001,850.

Main Pass 140, which cost $77,388,000 in September 1972, went on stream in March at an average rate of 5,000 b/d and 2.7 MMcfd. Production ultimately is expected to reach 20,000 b/d and 30 MMcfd Gulf 45%, Mobil 35%, POGO 10%, and Plato 10%, own MP 140.

Additional development under way on several tracts now producing is expected to boost output by the end of the year. And nonproducing tracts will be coming on stream.

For example, Kerr-McGee Corp. reports completion in 1975 of five highdeliverability gas-condensate wells on its Platform 1 in West Cameron 543. Bad money. Three big offshore Louisiana sales in December 1970 and September and December 1972 also have yielded some major disappoint

ments.

Fourteen blocks totaling $164,300,587 have been relinquished to the Government.

Most expensive relinquishment was West Cameron 650, acquired by Shell and Transcontinental Production Co. (75%-25%) for $33,338,000 in the December 1972 sale. Sheil drilled four dry holes on the block.

Shell-Transco also turned back West Cameron 651, a $14,338,000 purchase, after four unsuccessful wildcats. Four contiguous leases acquired by three different combines for than $15 million also appear doomed. Sun has drilled an apparent dry hole on WC 660, while WC 651, 656, and

62

657 haven't been drilled.

Exxon's $25,151,776 bonus for Main Pass 309 and $15,171,776 investment in Main Pass 310 also drew a blank. Three dry holes were drilled in the blocks.

POGO 75%, Mobil 15, Cities Service Oil Co. 10%, paid $25,371,650 for West Cameron 549 in December 1970 and turned it back last Dec. 27 after three dry holes. Oddly enough, POGO and participants paid $91,401 less for prolific EI 330 than they paid for dusty WC 548.

Signal Oil & Gas Co., Louisiana Land & Exploration Co., Amerada Hess Corp., and Marathon Oil Co. drilled two failures on Grand Isle 65, acquired for $16,100,000, and turned back the lease.

Offshore Texas. Companies invested about $3.3 billion in gas-prone federal leases off Texas from 1973 to 1975.

The Government currently lists a dozen leases as producible, shut-in, and there have been additional discoveries on blocks still carried under primary terms.

Production from the Pleistocene gas area in the High Island additions is scheduled to commence in the winter of 1976-77 at the earliest. Three offshore pipelines have been proposed (OGJ, Oct. 7, 1974, p. 36), and how soon production begins depends on when the lines are built.

First development drilling from a platform on any of the acreage off Texas acquired in the 1970's has started in High Island 110, about 30 miles east of Galveston. Conoco has . drilled one well from the platform into HI 110 and is drilling a second into HI 111. On May 31, Cities Service

spadded the first well from its new platform in HI A-323.

Offshore Texas still has a ha.. backlog of untested tracts, includ some big-bonus blocks. Texaco 14 Columbia Gas Development has yet test Ray City N639 E73, acquired for $65.9 million in May 1974, Tex hasn't drilled Galveston A-212, which cost $43.9 million, and Mobil and Amoco haven't tested Bay City N639 E72, a $44.5-million purchase.

None of the 675,000 acres leased off South Texas this year has been drilled, Shell recently permitted the 1 OCS-G3111 in Matagorda 714 and the OCS-G3087 in Matagorda 620, and Cities Service the 1 OCS-G-3040) in Mustang Island 811. They are listed as Miocene probes to 8,805 ft, 10,500 ft, and 8,000 ft, respectively.

Shell bought 714 and 620 for $18,190,000 apiece. These blocks shared the top bonus label in the February 1975 sale. Cities Service, Skelly, and Getty Oil Co. paid $1,762,560, for 811.

More guli leasing. The second half of OCS Sale No. 38 is scheduled July 29 in New Orleans. Tracts in the High Island, Galveston, and Bay City areas off Texas, and in the West Cameron, East Cameron, and Garden Banks areas off western Louisiana will be offered.

The Bureau of Land Management has had another sale in the Malla area on its tentative list for November or December.

But in view of the past year's abrupt downturn in bidding and the string of wildcat failures off Florida, neither sale is likely to draw anywhere near the high bonuses that were common in gulf sales prior to 1970.

TEXACO Inc. has withdrawn from Seadock Inc., reducing membership in the Texas offshore-terminal project to nire.

Current members are Cities Service Oil Co., Continental Pipe Line Co., Crown Central Petroleum Corp., Dow Chemical Co., Exxon Corp., Gulf Oil Corp., Mobil Oil Corp., Phillips Petroleum Co., and Shell Oi! Co.

There were 13 participants. Sun Oil Co., Atlantic Richfield Co., and Amoco Pipe Line Co. withdrew earlier.

A Seadock spokesman says the remaining participants represent refining capacity of approximately 1.8 million b/d of the 3.7 million b/d cap4

city on the Texas Gulf Coast and in western Louisiana. Area refining capacity of the four companies that withdrew is approximately 700,000 b/d.

A Seadock spokesman notes that throughput potential obviously is re duced. However, the actual volume Seadock builds for, he says, will depend on nominations in the final design stage. He expects nominations within the next few months, as soon as licensing procedures are finalized.

Texaco's withdrawal was effective May 20. The company retains men:bership in the nine-company Louisi ana Offshore Oil Port Inc. project (OGJ, May 26, p. 35).