XTO Energy gets new Alaska VP

Company plans to drill coal seam in Cook Inlet

Kay Cashman

Petroleum News Publisher & Managing Editor

XTO Energy, which employs 30 people out of its Nikiski office on Alaska’s Kenai Peninsula, has a new vice president for Alaska and is preparing to test a shallow coal seam in a shut-in well in Cook Inlet.

Doug Schultze, who has been vice president for the Permian basin and Alaska for XTO, was recently promoted to senior vice president of the company’s Midcontinent division. Kyle Hammond has replaced Schultz.

Hammond is based in Midland, Texas; Schultze has transferred to Oklahoma City, Okla., where he said he will initially oversee Alaska until Hammond is settled into his new position.

Hammond is a 1985 graduate of Texas A&M University with a bachelor of science in Petroleum Engineering. Prior to joining XTO Energy, he worked for BOGO Energy and Oryx Energy. His previous assignment with XTO was engineering manager, Freestone trend, in Tyler, Texas.

XTO has added significant coalbed methane acreage to its coffers outside Alaska this past year with its purchase of Williams’ properties in the Raton basin. It’s something the company is watching in Alaska, but “there is nothing on the immediate horizon,” Schultze said.

However, XTO is currently making plans to test a shallow coal seam in a shut-in well on C platform in Cook Inlet, looking for gas for use at its platforms. The company used to buy gas from Unocal’s Baker platform, but since that has been shut down it has had to buy gas from onshore.

“We use 700,000 cubic feet per day in addition to what we produce. This adds a significant amount to our operating expense. We’d like to have a source at our platforms,” Schultze said.

The coalbed methane XTO is evaluating is “not a huge play. … It’s a test. We’re looking at completing one or two wells to test the coals. Normally you don’t view coalbed methane as a one or two well operation but there are exceptions to the rule. … We’ve got some shut-in wells where we can test it, so we are going to give it a shot,” he said.