Adding

Adding another opinion to the muddled winter forecast scene, Andover, MA-based WSI Corp. said last week that it expects the November-through-January period to average cooler-than-normal temperatures in the major cities of the Northeast and parts of the southern Rockies and Southwest, while warmer-than-normal temperatures are expected across the rest of the northern U.S. and in the Southeast.

Adding another opinion to the muddled winter forecast scene, Andover, MA-based WSI Corp. said Monday that it expects the November-through-January period to average cooler-than-normal temperatures in the major cities of the Northeast and parts of the southern Rockies and Southwest, while warmer-than-normal temperatures are expected across the rest of the northern U.S. and in the Southeast.

The weather fundamentals didn’t seem to be there, and the screen had extended a three-day slide with a drop of 35.6 cents the day before (adding a loss of another nickel Wednesday). But a mixed cash market showed a moderate bias to the upside Wednesday.

El Paso Corp. said it placed its West Cameron 75 and 62 new-field discoveries online, adding 52 MMcfe/d (20 MMcfe/d net to El Paso’s interest) to the market. The fields are located about 12 miles offshore of Cameron, LA, in 32 feet of water.

Range Resources said it increased its natural gas hedge position, adding natural gas swaps in 2007 and 2008. The 2007 natural gas swaps average $9.34 per MMBtu, with the 2008 swaps averaging $9.42. To a lesser degree, additional natural gas collars were added in the third and fourth quarters of 2006. “With approximately 80% of Range’s reserves being natural gas, we have locked in outstanding prices on a significant portion of our production for the remainder of 2006 and for all of 2007 and 2008,” said CEO John H. Pinkerton. “With 15% production growth targeted for 2006 and 2007 combined with the attractive hedge prices, we anticipate generating record financial results. Importantly, the increased hedge position will allow us to aggressively pursue our growth strategy while continuing to build our financial strength.”

Basing its strength largely on Monday’s 14-cent near-month futures gain, and to a lesser degree on the South adding some air conditioning load to that already existing in the scorching desert Southwest, the cash market recorded double-digit increases across the board Tuesday. Opinions were divided on whether the rally could be sustained Wednesday.

Adding to its Rocky Mountain production portfolio while creating efficiencies within the region, Bill Barrett Corp. said Thursday that it has entered into an agreement to purchase Fort Worth, TX-based CH4 Corp. — which has significant acreage in a Powder River Basin coalbed methane (CBM) play — for $80 million, subject to customary adjustments for working capital changes and other matters.

Adding to its 52.4-cent drop on Monday, April natural gas on Tuesday continued to probe lower in search of support. The contract set a high for the day of $6.800 in the morning and recorded a $6.580 low in the afternoon before settling at $6.714, down 7.5 cents on the day.

It’s not everyday that someone suggests adding Peruvian LNG to your gas supply portfolio, but that’s what Dallas-based Hunt Oil may soon be recommending to some West Coast buyers. By 2009, the company and its partners, Spain’s Repsol and Korea’s SK Corp., hope to be bringing 4.4 million metric tons of LNG per year to the U.S. and Mexican west coasts from a liquefaction plant in Pampa Melchorita, Peru.