Boosts

The Energy Information Administration (EIA), in its Short-Term Energy Outlook for May, again raised its projection for the average spot price of natural gas this year — by 7% to an average of $5.80/Mcf from the $5.40/Mcf that it had projected last month.

Following the lead of other North American independents in recent weeks, Calgary-based EnCana Corp. on Tuesday said it added 482 MMboe of audited, proved reserves last year, and that it boosted its production replacement total by 203%. Daily oil, natural gas and natural gas liquids sales also increased year-over-year by more than 9% to reach 650,200 boe after royalties.

Following the lead of other North American independents in recent weeks, Calgary-based EnCana Corp. on Tuesday said it added 482 MMboe of audited, proved reserves last year, and that it boosted its production replacement total by 203%. Daily oil, natural gas and natural gas liquids sales also increased year-over-year by more than 9% to reach 650,200 boe after royalties.

Soaring natural gas prices, continued firm oil prices and stable drilling costs, have prompted analysts at Raymond James & Associates to raise their price targets on 22 exploration and production companies.

As a result of last week’s soaring natural gas prices, continued firm oil prices and stable drilling costs, Raymond James & Associates said it is raising its price targets on 22 exploration and production companies that it has labeled Strong Buy and Outperform.

Buoyed by plummeting mercury levels in the eastern half of the country, the natural gas futures market continued on its meteoric rise Tuesday as speculative traders headed for the exits. However, in contrast to Monday’s session, the price action Tuesday was anything but straight-line, with the market having to work its way back from a midday sell-off.

Getting significant boosts from both the screen and further revision in thinking about how cold this week’s weather will be, prices were in major rebound mode Monday. Double-digit gains were recorded across the board, with several points in both the East and West seeing upticks in the vicinity of 40 cents.

Houston Exploration Co. boosted its proved reserves to 742 Bcfe after announcing last week that it would acquire the entire shallow-water Gulf of Mexico asset base of Transworld Exploration and Production Inc., which is 75% natural gas, for $155 million.

In an effort to continue to accommodate producers’ current production and future drilling plans, Dallas-based Crosstex Energy LP recently completed a significant capacity expansion at its Gregory Processing Plant north of Corpus Christi, TX. The company noted that with natural gas volumes coming into the system at record levels and significant new volumes on the horizon, the plant expansion was necessary.