BP Canada Energy Marketing Co. and Secure Energy Inc. have struck a long-term natural gas sales agreement whereby BP will purchase up to 67 MMcf/d of gas from the proposed Secure Energy Decatur Gasification Plant to be built in Illinois once the plant becomes operational. Secure Energy will have the option to separately sell gas to industrial customers in the Decatur, IL, area for a portion of its production, and BP has agreed to purchase any gas not sold locally. The Decatur plant would convert 1.4 million tons of high-sulfur Illinois coal into more than 20 Bcf of gas each year. The projected plant construction cost is estimated to be $550 million. The plant is expected to be in operation in the summer of 2011.

Fidelity Exploration & Production Co., an indirect subsidiary of MDU Resources Group Inc., estimated that its total proved reserves have reached 800 Bcfe. The producer also estimated that it holds 950 Bcfe of proved and possible reserves, which is 19% more than it estimated in July 2007. The increase, it said, was driven by exploration plays in the Bakken and Paradox basins, as well as acquisitions in East Texas. Half of the probable and possible reserves estimate is classified as probable, with 85% of the total within the Rocky Mountain region. The reserve estimates were prepared by the company’s technical staff. “These vast reserves, combined with the fact that we have over 1.8 million acres held with lease agreements, means we are well-positioned for strong growth,” said CEO Terry D. Hildestad.

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