Canadian Utilities Limited, a division of Alberta-based ATCO Ltd., will examine “strategic alternatives” for its gas gathering and processing and natural gas liquids midstream business. Options include reorganization into a business trust or newly created company, sale to a third party or continued operation under the existing corporate structure, the company said. Canadian Utilities has retained advisers to assist it in considerations. ATCO has more than 7,000 employees engaged in power generation, utilities and global enterprises.

Denver-based Admiral Bay Resources Inc., which is focused on the development of projects in the Cherokee Basin in southeast Kansas and the Appalachian Basin in Pennsylvania, said Friday that gas production for all of its projects has reached 1.5 MMcf/d and continues to increase as new wells are connected to the pipeline. The company now has 65 wells selling gas into the pipeline with an additional 17 wells awaiting completion in the near term. To date, the majority of development from the company’s program has been focused at the Shiloh project, with more than 35 wells having been drilled at the project so far this year. Eighteen of these wells have been connected to the system and are producing gas. The remaining seventeen wells are expected to be fraced in the next two weeks. Current gas production at the project is 1.25 to 1.3 MMcf/d. Under the 2006 development program, Admiral Bay is planning to drill 110 new wells at the project. At the Devon project, Admiral Bay has drilled five new wells that are currently awaiting completion. Drilling is set to begin at the Mound Valley project this month, with three drilling rigs currently active on the projects. The tap at Mound Valley is in the final stages of being completed and a gathering system is being installed to the existing wells. Completion of the system and initiating of sales into the Southern Star pipeline is expected to begin the first week of June.

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