Blocks

Escondido Resources II LLC of Midland, TX, has sold 11,050 net acres in the Eagle Ford Shale for $115.3 million. The sale consists of three distinct blocks of acreage located mainly in La Salle County in South Texas, Escondido said Tuesday.

Due to an imbalance on upstream pipelines and requests for drafting gas that has been banked over the last several days, Southwest Gas issued a Hold Burn to Scheduled Quantities notice Wednesday. Southwest asked shippers “to ensure that actual takes meet or exceed scheduled supplies, which will assist in clearing the positive imbalance that has been created on the upstream pipelines. Also, positive daily nominations for imbalance paybacks from customers to Southwest have been eliminated” effective Wednesday until further notice. If current conditions persist, Southwest said, it may be required to issue an OFO.

StatoilHydro has added to its sizable stake in the Gulf of Mexico (GOM) by acquiring a 40% interest from BHP Billiton Ltd. in 50 offshore blocks. The offshore acreage acquired by the Norwegian-based producer is located in the northeastern corner of the deepwater GOM in the under-explored DeSoto Canyon. DeSoto Canyon is located east of the Independence Hub, which serves several natural gas producers in the region, including Statoil (see NGI, Dec. 25, 2006). Statoil, among other things, owns a quarter stake in Walker Ridge Block 758, located in the promising Lower Tertiary of the deepwater GOM. In 2006 Statoil, Chevron Corp. and Devon Energy Corp. completed the deepest extended drill stem test in history at the prospect on Jack No. 2 well (see NGI, Sept. 11, 2006). In the March Central GOM Lease Sale 208, U.S.-based subsidiary Statoil Gulf of Mexico LLC was high bidder at $14.29 million for Keathley Canyon Block 698, which is located in water depths more than 2,000 feet (see NGI, March 23).

Aquila shares tumbled nearly 7% last Wednesday to $3.14 after a federal court ruling blocked the company from using $504 million in proceeds from the sale of its Canadian utility assets. ILA shares, however, rebounded back above $3.50 by Friday.

Aquila shares tumbled nearly 7% Wednesday to $3.14 after a federal court ruling blocked the company from using $504 million in proceeds from the sale of its Canadian utility assets. The court ruled in favor of Chubb Insurance Corp., which had argued that additional collateral was needed to cover Aquila’s contractual obligations to supply gas to a group of Nebraska municipal utility companies.

Higher energy prices in society are caused by well-funded, increasingly powerful environmental groups, and the energy industry needs to do a better and more comprehensive job of mobilizing its own supporters to counteract this trend, according to a Bellevue, WA-based author and official with the nonprofit Center for Defense of Free Enterprise.

Higher energy prices in society are caused by well-funded, increasingly powerful environmental groups, and the energy industry needs to do a better and more comprehensive job of mobilizing its own supporters to counteract this trend, according to a Bellevue, WA-based author and official with the nonprofit Center for Defense of Free Enterprise.

The Arizona Senate last week unanimously voted to ban development of salt dome gas storage facilities within nine miles of a military airport, which places a significant roadblock in front of El Paso Corp.’s proposed 10 Bcf Copper Eagle Gas Storage project.

The Arizona Senate earlier this week unanimously voted to ban development of salt dome gas storage facilities within nine miles of a military airport, which places a significant roadblock in front of El Paso Corp.’s proposed 10 Bcf Copper Eagle Gas Storage project.