Natural gas from a new Oklahoma well in which a Washington Gas Light Co. subsidiary holds a 9.6 percent interest is being sold for a price "in excess of $8 per thousand cubic feet (Mcf)," the company confirmed yesterday.
Industry reports said the gas is going for as much as $9.30 per Mcf, which, if correct, would be among the highest prices being paid for gas by a pipeline company anywhere in the country.
A Washington Gas spokesman, Paul Young, said a contract was signed Tuesday for sale of the gas to Transwestern Pipeline Co. of Houston. The well, the No. 1 Kardokus near Eakly, Okla., was completed Aug. 21, and its gas flow has not yet stabilized. The daily volume has varied in recent days between 2 1/2 million and 10 million cubic feet, Young said.
Another nearby well, the Codi, which blew in on Aug. 21 but later was brought under control, yesterday was shut off temporarily. The well operator, Excalibur Oil Co. of Tulsa, pumped drilling mud into the well to shut off the gas flow while it is being evaluated. About 12 million cubic feet of gas were being sold daily from the Codi to Delhi Pipeline Gas Co. on an emergency basis. The Washington Gas subsidiary, Crab Run Gas Co., has a 21.4 percent interest in the Codi.
On the 640-acre section of land adjacent to the Kardokus well, Ports of Call Oil Co. of Oklahoma City has reached a depth of 14,400 feet for the Tom Cat 1A, in which Crab Run has a 19 percent interest. Last January another well on the same section blew out when gas was struck below 15,000 feet. That well became clogged and, after efforts to complete it failed, the Tom Cat 1A was begun.
Young said that the Washington Gas subsidiary has an interest in eight other wells now being drilled in the same general area, part of the deep Anadarko Basin.
Newly discovered natural gas produced from wells more than 15,000 feet deep is free of federal price controls. Gas from shallower wells generally can be sold for less than $3 per thousand cubic feet, while gas discovered in earlier years brings many producers less than $1 per thousand cubic feet.