Boosting

Publicly traded U.S. natural gas producers continued to show gains in 4Q2008, boosting output by 3.5% year/year (y/y), despite disruptions from hurricanes Gustav and Ike, a survey by Raymond James & Associates Inc. has found.

Energy Transfer Partners LP (ETP) has completed its Southern Shale and Cleburne-to-Tolar pipelines, providing 1.1 Bcf/d of capacity from the Barnett Shale of North Texas and boosting its capacity out of the shale to 4.6 Bcf/d, the company said Thursday.

British Columbia (BC) and Saskatchewan brought in a combined C$745 million in land rights on Thursday, boosting their claims that they — and not Alberta — hold the best exploration spots in Canada.

British Columbia (BC) and Saskatchewan brought in a combined C$745 million in land rights on Thursday, boosting their claims that they — and not Alberta — hold the best exploration spots in Canada.

Houston-based Cabot Oil & Gas Corp., which has been boosting its natural gas exploration and development across East Texas and into northern Louisiana, agreed to pay an undisclosed private party $602.8 million to purchase some producing properties, leasehold acreage and natural gas gathering infrastructure in the Cotton Valley trend. The 25,000 gross acres to be acquired in the Minden area of East Texas would add about 32 MMcf/d net to Cabot’s production, the company said. Proved reserves are estimated by Cabot to be around 176 Bcfe, but Cabot said it “expects to benefit from significant resource potential through 300-400 probable and possible” new locations. Infrastructure includes 33 miles of pipeline, 5,400 hp of compression and four water disposal wells and is valued at about $26 million. The independent would have a 97% average working interest in the leasehold. Cabot has drilled 77 wells in the Minden area on its 12,700 acres with a 100% success rate since its initial discovery in 2006, according to CEO Dan O. Dinges. To lock in margins and to ensure cash flow to execute the drilling program without diluting Cabot’s 2008 capital program, the company placed swaps covering estimated production for the rest of 2008 through 2010. The volumes swapped during this period represent revenues of more than $600 million from 47.5 Bcfe, or 27%, of the acquired proved reserves, the company said. Swaps for 2008, 2009 and 2010 were set at $13.15, $12.18 and $11.43/Mcf, respectively, net to the properties for natural gas and $125.35 average swap price for oil over the same period.

Houston-based Cabot Oil & Gas Corp., which has been boosting its natural gas exploration and development across East Texas and into northern Louisiana, agreed to pay an undisclosed private party $602.8 million to purchase some producing properties, leasehold acreage and natural gas gathering infrastructure in the Cotton Valley trend.

Criticized in the past for not spending enough to find and recover new oil and natural gas reserves, ExxonMobil Corp. is boosting its capital spending by about 20% to $25 billion this year and said it plans to pend at least that much every year until 2012.

Florida Gas Transmission (FGT) is considering boosting capacity on its mainline to provide additional firm service to Florida, the company said last Monday. An open season for FGT’s proposed Phase VIII expansion in Mississippi, Alabama and Florida is under way through Feb. 15.

Florida Gas Transmission (FGT) is considering boosting capacity on its mainline to provide additional firm service to Florida, the company said Monday. An open season for FGT’s proposed Phase VIII expansion in Mississippi, Alabama and Florida is under way through Feb. 15.