Devon Energy said it has a costless price collar on about 655,000 MMBtu/d of its 2003 gas production with a floor price of $3.34 and a ceiling of $5.11. It also locked in a price of $2.94 for 141 MMcf/d of 2003 gas production. If the monthly gas price indices are outside of the ranges set by the floor and ceiling prices in the various collars, Devon and the counterparty to the collars will settle the difference, the company said. Any settlements will either increase or decrease Devon’s gas revenues for the period. Devon also has collared oil volumes of 54,000 b/d with an average floor price of $22.26/bbl and an average ceiling of $28.14.

The Nova Scotia Utility Board on Friday awarded a natural gas distribution franchise to Heritage Gas and awarded a conditional franchise to Strait Area Gas. Heritage Gas received approval for the franchise areas of Halifax Regional Municipality, Colchester, Cumberland and Pictou counties as well as the Municipality District of East Hants and the Goldboro area. Strait Area Gas has been awarded a conditional franchise for Inverness, Antigonish and Richmond counties along with Guysborough County with the exception of Goldboro.

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