Pioneer Natural Resources and Dominion Resources announced that production from the Devils Tower field has returned to pre-Hurricane Ivan levels. Three wells are currently producing 28,000 boe/d on a gross basis, and a fourth well is expected to be producing by the end of November. Eight wells have been drilled to develop the field, but damage to the platform rig delayed completion activities related to the four remaining wells. However, the timeframe for resuming completion activities has improved, with potential for continued field development to begin by year end, the companies said. The financial impact of these delays is mitigated by business interruption insurance coverage that is designed to restore the expected cash flow from the project after a waiting period that ended on Nov. 1. Pioneer holds a 25% working interest in Devils Tower. Dominion operates the field with a 75% working interest. The field is located about 140 miles southeast of New Orleans on Mississippi Canyon block 773 in the deepwater Gulf of Mexico.

Nicor Inc. reported a third quarter 2004 net loss, an operating loss and a diluted loss per common share of $11.6 million, $9.6 million and $0.26, respectively. The losses compared to third quarter 2003 net income, operating income and diluted earnings per common share of $0.5 million, $4.2 million and $0.01, respectively. Lower earnings per share for the 2004 third quarter primarily reflect lower operating results in the company’s gas distribution and wholesale natural gas marketing businesses, increased interest expense, and the absence of a 2003 gain associated with the wind-down of its Nicor Energy equity investment, partially offset by improved operating results in its shipping and retail energy-related products and services businesses. “Third quarter earnings were negatively impacted by unbudgeted events in our gas distribution business and other energy-related ventures,” said CFO Richard Hawley. “Our reported 2004 results were reduced by fair value accounting adjustments related to derivatives used to hedge the value of gas in storage at our wholesale natural gas marketing business, and increases in expected levels of bad debt expense and legal and other costs associated with outstanding contingencies in our gas distribution business.”

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