The sale of 26 GoM oil fields earned the company $225 million and $200 million, which was immediately earmarked for exploration and production operations in north-east Thailand over the next five years.
The investment is planned for the Phu Horm-3 concession block in Unon Thani province, which is estimated to contain 400-800 billion cubic feet of dry natural gas. Recent production tests at Phu Horm-3 produced a daily flow of 46 million cubic feet of gas.
The plans call for commercial gas production from Phu Horm-3 to start by mid-2005, but the company would try to bring the date forward to late 2004.
Gas produced from the block would be fed to a power plant in nearby Khon Kaen Province.
The GoM sales will result in a second-quarter gain of $170 million, the company said. It also agreed to exchange assets with Encana Corp. of Calgary, Alberta, in a move to cut costs and enhance earnings. The moves are expected to save Amerada about $30 million annually.
