Dollar-plus gains at all Northeast citygates and on Dominion in Appalachia were mixed into overall cash spikes Tuesday. Upticks of half a dollar or greater were consistent throughout the East and in the Waha/Permian Basin markets. The rest of the West tended to lag behind but still saw fairly strong advances of about 20-30 cents or so.
Articles from Appalachia
Plunges of about a dollar in the Northeast and about half a dollar on Dominion in Appalachia far outran moderate softness in the rest of the market Friday. The February aftermarket started with losses elsewhere that tended to range from about a nickel to a quarter, and the Rockies even registered some small gains.
Northern Appalachian natural gas production lags considerably behind the ramp up in the Rocky Mountains, but West Virginia Gov. Bob Wise said that he is pushing for his state to one day compete head-to-head with Wyoming. Wise spoke Tuesday in Charleston, WV as keynote for the Conference on Natural Gas from Coal Seams in the Northern Appalachian Basin.
Penn Virginia Corp., headquartered in Radnor, PA, has retainedWaterous & Co. to assist with the potential sale of a portionof the company’s Appalachia oil and gas properties. The properties,with an estimated 70 Bcfe of proved reserves are 97% natural gas.Current net production from the properties is 7 MMcf/d. A data roomto review detailed property information is expected to open inHouston later this month. More information is available atwww.waterous.com.
Weekend cash prices hit a plateau Friday in theMidcontinent/Midwest, Gulf Coast and Appalachia, but softened inthe Northeast and at most western points.
Equitable Resources ascended to the throne of Appalachian basinproducers yesterday by agreeing to purchase all of Statoil Energy’sassets in the region for $630 million. The deal is expected to becompleted next month, Statoil said.
Cash price changes for the weekend varied widely, ranging fromrelative flatness in Appalachia and Northeast citygates to drops of10-20 cents at the California border. The big weakness inCalifornia numbers was due to trader fears of weekend OperationalFlow Orders by SoCal Gas and PG&E, whether or not they evermaterialized, sources said. (Neither utility had an OFO in effectas of Saturday.) However, SoCal was cutting all as-availablestorage injections, helping to keep Topock prices depressed, amarketer said.