Energen Resources Corp. closed its previously announced purchase of San Juan Basin coalbed methane properties from a private company for an adjusted purchase price of $263 million. Located in the under-pressured Fruitland coal play, more than half of the estimated 240 Bcfe of proved gas and gas liquids (NGL) reserves are behind pipe and undeveloped, the company said. Gas accounts for 80% of the estimated proved reserves, with NGL making up the balance. The company also estimates that there are up to 60 Bcfe of probable reserves. A large development inventory from the acquisition is estimated at more than 110 infill wells. Future development costs are expected to be $50 million.

WGL Holdings, parent company of Washington Gas Light other energy-related subsidiaries, reported a net loss of $4.1 million, or $0.08 per share, for its fiscal third quarter, compared to a net loss of $2.6 million, or $0.05 per share, for the same period last year. The utility said it typically reports net losses during the quarter due to the seasonal nature of its utility operations and reduced demand for gas. Excluding the effects of weather and unique transactions, the company’s consolidated net loss from normal operations was $0.08/share as compared to a net loss of $0.17/share for the same quarter of fiscal year 2003 and compared to analysts estimates of net loss of $0.16/share. The $0.09 per share improvement in the company’s results from normal operations primarily reflects customer growth and the favorable impact of regulatory decisions, the company said. WGL also raised its earnings forecast for the year to well above analysts’ estimates of $1.78/share. CEO James H. DeGraffenreidt said, “Our third quarter results reflect the continued benefits of our strategic emphasis on timely and compensatory rates, and increased investment for growth in our customer base… We are raising our earnings estimate for the full fiscal year 2004 to be in the range of $1.94 to $2.02 per share. This includes projected full fiscal year 2004 earnings for our unregulated businesses to be in the range of $0.17 to $0.21 per share. WGL shares rose nearly 5% on the news to $28.71 Monday.

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