Birmingham, AL-based producer Energen Resources increased its hedge position to include another 3.6 Bcf of gas production at a price of $6/MMBtu and 240,000 bbl of sour crude at an average Nymex price of $33.98/bbl. The company now has prices locked in for 41% of its 2005 gas production and 40% of its 2005 crude oil production.

Energen’s total gas hedge position for 2005 now stands at 21 Bcf out of a total of 51.2 Bcf at $5.36/Mcf. The gas hedges include 4.8 Bcf of contracts at a Nymex futures price of $5.45/Mcf, 15.5 Bcf of San Juan Basin-specific contracts at an average Nymex-equivalent price (including basis) of $5.33/Mcf, and 0.6 Bcf of Permian Basin-specific hedges at a Nymex-equivalent price of $5.62/Mcf.

Energen’s 2005 oil hedge position now totals about 1.4 million bbl at an average of $32.05/bbl. Energen also has hedged 30.2 million gallons (43%) of its 2005 natural gas liquids production at an average price of 48.5 cents per gallon.

The company estimates that the most significant basis differentials in 2005 will equal 80 cents per Mcf for San Juan Basin gas, 35 cents per Mcf for Permian Basin gas and $2.90 per barrel for Permian Basin sour oil. These assumed basis differentials have been used to calculate the Nymex-equivalent prices of its basin-specific gas and sour oil hedges for 2005.

Energen said it will continue to closely monitor the commodity price environment and is prepared to enter into additional 2005 hedges.

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