Shareholders of Vancouver-based Westcoast Energy Inc. will vote Dec. 13 on the proposed takeover of the company by Duke Energy Inc., headquartered in Charlotte, NC. Westcoast said Wednesday that if shareholders approve the $8.5 billion takeover, the Duke acquisition will be completed by the end of March 2002. Westcoast is one of Canada’s biggest energy companies, with assets of about C$15 billion and interests in natural gas pipelines, power generation and energy services. Duke Energy had revenues of more than $49 billion in 2000.

Marathon Canada Ltd, a subsidiary of Marathon Oil, announced the addition of two more exploration tracts offshore Nova Scotia. Marathon was high bidder on parcels 5 and 6 in the latest offshore bid round by the Canada – Nova Scotia Offshore Petroleum Board. Marathon’s interests offshore Nova Scotia now extend to five exploration licenses, covering 1.92 million acres. Marathon bid alone on Parcel 5, securing the license with a high bid of C$176.7 million (US$115 million). On Parcel 6, Marathon and two co-venturers submitted a high bid of C$193.6 million. Marathon will be operator of the consortium holding a 50% interest, with Murphy Oil and Norsk Hydro each holding a 25% interest. The bids represent estimated expenditures for exploration activities during the initial five-year period of a nine-year license. Phil Behrman, senior vice president of worldwide exploration for Marathon, said the company expects to start drilling on the nearby Annapolis block by the end of November. The Annapolis well will be drilled 220 miles south of Nova Scotia in 5,700 feet of water, the deepest well to date offshore Nova Scotia. It will take 60 days to drill. In addition, Marathon is currently participating in a well on the Southhampton block with a 37.5% interest.

Magnum Hunter announced significant test results on its 100% owned and operated Main Pass Blocks 164 and 178 in the Gulf of Mexico. The two adjacent Main Pass Blocks are 95 miles east of New Orleans in water depths of 150 feet. Three wells have recently been completed and tested at an aggregate rate of over 20 MMcfe/d. Completion of a fourth well and final connections to a recently installed pipeline and production facilities are currently in progress. Initial production from these new wells is currently scheduled for late November 2001.

Consumers Energy said Wednesday that it estimates its residential customers in Michigan will pay an average of $15 to $25 more a month for natural gas this winter, which is less than half the increase originally projected. The utility said its initial analysis of market prices and customer usage had projected winter natural gas bills to be $40 to $60 higher per month for the typical residential customer. With the bulk of its winter gas purchases completed, the utility expects to charge about 38.5 cents per hundred cf of natural gas during the November through March heating season. At that level, Consumers Energy’s natural gas price will be among the lowest for Midwest utilities. Consumers Energy charged 28.4 cents per hundred cf last winter under a 37-month price freeze. The Michigan Public Service Commission estimates the price freeze saved Consumers Energy customers more than $440 million as prices hit record highs of more than $1 per hundred cf elsewhere in the country. “The timing definitely worked in favor of our 1.6 million natural gas customers,” said Carl L. English, Consumers Energy’s CEO — gas. “Our frozen rate protected them from the big price jumps last winter. Natural gas prices have dropped since then. While gas bills will be higher this winter, the good news is heating bills won’t increase as much as we first projected.” Consumers Energy said its typical residential customer uses about 122 Mcf of gas each year. About 80% of that gas – some 97 Mcf – is used for heating. The company said individual bills will vary depending on the weather and energy use habits.

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