Conectiv sold the southern regional division of ConectivServices, which is located in southern Delaware and easternMaryland, to the unit’s employees. Terms of the sale were notdisclosed. The southern division provided new construction,replacement, service and maintenance of heating, cooling, andplumbing services for residential and commercial customers. Themove continues Conectiv’s previously announced plan to exitbusinesses it no longer considers strategic, and seek a partner forits telecommunications business, and focus on its core mid-meritand power delivery segments. Earlier this year, Conectiv announcedthe sale of the northern and mechanical divisions of ConectivServices and the sale of its Conectiv Thermal joint ventures inCalifornia and Nevada. Conectiv is focused on two core energybusinesses: Conectiv Power Delivery, which provides energy serviceto more than one million customers in New Jersey, Delaware,Maryland, and Virginia; and Conectiv Energy, which includes powertrading and a growing portfolio of “mid-merit” power plants.

A new study by consulting firm John S. Herold, Inc. tracks theboom and bust cycles that have decimated the ranks of oil and gascompanies. “From Renaissance to Requiem to Rebirth,” a special oiland gas industry study authored by CEO Arthur L. Smith and VicePresident Aliza Fan, begins with stark statistics highlighting thedestructive impact that commodity price volatility has had on oiland gas companies over the past three decades. Smith and Fan pointout that of 82 oil companies followed by Herold in 1970, only seven(9%) survive today; of 157 companies followed in 1990, only 63(40%) are still in business. The 1998-1999 oil and gas wellheadprice meltdown was particularly brutal, dealing “body blows to allpetroleum producers and oil service providers; some staggered, somefell and many merged or were acquired.” At the same time, enormouscapital flows were withdrawn from the energy sector, as energyindustry weighting in the S&P 500 plunged from 26% in 1982 toless than 5% in early 2000. For a copy of the study contact TomBiracree at 203-847-3344 or tbiracree@herold.com.

Evergreen Resources Inc., based in Denver, reports that itsproved reserves have increased 47% since year-end 1999 to 822 Bcfof natural gas as of Sept. 1. The increase follows the company’ssuccessful drilling program in the Rocky Mountains this year, andits $176 million acquisition of producing properties in the RatonBasin from an affiliate of Kansas City Power & Light Co. Thereserve estimate represents an increase of 263 Bcf over the Dec.31, 1999 estimate of 559 Bcf. About 153 Bcf of gas reserves wasattributed to Evergreen’s Sept. 1 purchase in the Raton Basin.Independent petroleum engineering consultants Resource ServicesInternational audited the estimate of reserves. In the first eightmonths of 2000, Evergreen drilled 73 wells, and the companyanticipates it will drill about 100 total in the basin before theend of the year.

Dallas-based Denbury Resources Inc. said that its projected 2001targeted production will be a company record of 25,000 BOE/d, a 24%increase from its anticipated average daily production this year.The production includes an estimated 17,000 barrels of oil a dayand 48 MMcf/d. CEO Gareth Brooks said the company “will exit 2000with a significant increase in our reserve and production base. Ifwe achieve our targets for 2001, it will be the second straightyear of 20% to 25% growth in base production at an expected cost ofless than $25,000 per daily producing BOE.” The company’s capitalbudget for next year is $100 million, geared toward more productionfrom existing fields and expanded activity in the Gulf of Mexico.

Grey Wolf Inc., headquartered in Houston, has signed a two-year$11.6 million contract with Burlington Resources Inc. for anultra-deep drilling Rig 558, which would be used to beginexploration and production in the growing Rocky Mountain area. Therig would be used for drilling in the Madden Deep Unit of Wyoming’sWind River Basin, with startup scheduled for second quarter 2001.Grey Wolf’s Rig 558 is rated at 4,000 HP, with a hoisting capacityof 2.5 million pounds.

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