Devon Energy said it entered into additional hedging transactions, covering its first quarter 2002 natural gas production. It entered into fixed-price physical delivery contracts covering an additional 116,400 MMBtu/d in the United States at an average price of $2.65/MMBtu, and in Canada, the company entered into fixed-price physical delivery contracts covering an additional 118,400 MMBtu/d of gas at an average price of $2.46. Devon said it currently has downside price protection in place for about one-half of its expected first quarter 2002 gas production at an average price of $2.94. For the full year 2002, Devon has downside price protection in place for 39% of its expected gas production at an average price of $3.02. On the oil side, Devon has downside price protection in place for 53,200 b/d in 2002 at an average price of $22.34/bbl, That represents 55% of Devon’s expected 2002 oil production.

Canada’s National Energy Board approved an application from Petro-Canada to construct a natural gas pipeline from the Medicine Hat, AB, area to Burstall, SK. The 44-mile, 10 inch diameter line will extend from existing natural gas production properties located in the Medicine Hat area to TransCanada PipeLines’ system near Burstall. The pipeline will have a design capacity to transport 53 MMcf/d of gas. About 35 miles of the pipeline route follows existing corridors. The Medicine Hat Pipeline is proposed to be in-service in January 2003 and the estimated capital cost is $10.1 million.

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