Energas Resources Inc. has reactivated oil and natural gas production in the Parkway Project in Kentucky after gas testing met pipeline requirements. The company’s field personnel have converted two of the first four wells to electric pump jacks utilizing a timing system to stabilize flow rates and pressure. The two wells have produced approximately 66 MMBtu/d of natural gas and 2 b/d of oil since May 23. Energas is now reevaluating the development strategy and proposed treatment methods for the Parkway Project.

MDU Resources Group Inc. completed its merger with Cascade Natural Gas Corp., making Cascade a subsidiary of MDU Resources in a deal worth $475 million in cash and debt. Cascade was founded in 1953 and employs nearly 380 people. The merger, which received its final regulatory approval last Thursday (see Daily GPI, June 29), was originally announced on July 9, 2006 (see Daily GPI, July 11, 2006). Cascade joins Montana-Dakota Utilities Co. and Great Plains Natural Gas Co. as a third utility business within MDU Resources. Montana-Dakota and Great Plains serve more than 250,000 gas customers and 120,000 electric customers in five Upper Midwest states. Cascade serves 246,000 customers in 93 communities — 65 of which are in Washington and 28 in Oregon. Cascade’s service areas are concentrated in western and south-central Washington and south-central and eastern Oregon.

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