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Success in deepwater exploration in the Gulf of Mexico improvedthe outlook for both oil and natural gas resources, according to anupdated report by the Minerals Management Service. The 2000 MMSresource assessment now indicates that there is a 65% increase inconventional recoverable oil reserves and a 35% increase in naturalgas on the outer continental shelf.

Success in deepwater exploration in the Gulf of Mexico improvedthe outlook for both oil and natural gas resources, according to anupdated report by the Minerals Management Service. The 2000 MMSresource assessment now indicates that there is a 65% increase inconventional recoverable oil reserves and a 35% increase in naturalgas on the outer continental shelf.

Consistent with both companies’ strategies for the future, NRGEnergy Inc. announced it would pay $325 million to Wisconsin EnergyCorp. for two Connecticut coal-fired power stations. NRG said theacquisition would help it maintain and develop a “top-threeposition in the Northeast,” while Wisconsin Energy said it wouldfocus its energy projects in the Midwest.

Ending concerns that related pipelines might not start serviceon the same day, both the Alliance and Vector pipelines opened forbusiness on Friday.

Fueled by a record-setting storage withdrawal released yesterdayand revised outlooks by both private and governmental weatherforecasters, natural gas futures rocketed higher yesterday toeasily notch new all-time highs.

Koch Gateway is performing both scheduled and unscheduledmaintenance at its Jackson (MS) Compressor Station. Work on units#3 and #4 has been completed, unit #2 will remain unavailable untilDec. 10, reducing station capacity by 75 MMcf/d.

Boosted by soaring cash prices and cooler temps both outsidetraders’ windows and in the latest weather forecasts, natural gasfutures were higher Monday after gains registered in the Sundaynight Access trading session were validated by a gap higher open.The December contract was the largest beneficiary of the Sundayevening-Monday morning buying frenzy, finishing up 24.2 cents at$5.698. Meanwhile the back months lagged considerably, evidenced bythe 12-month strip, which only advanced 8.2 cents to $4.826.

MCN Energy reported a third-quarter loss of $24.9 million or$0.28 per share compared with a net loss of $23.2 million or $0.27per share, in 3Q99. Both periods were affected by unusual items, aswell as recently adopted accounting treatment of non-regulatedstorage activities. Before unusual items and costs related to thecompany’s proposed merger with DTE Energy, the loss totaled $17.4million or $0.19 per share, and compared with $19.4 million or$0.22/share in 3Q99. Gas distribution reported a third-quarteroperating and joint venture loss of $11.8 million, which includes a$9.7 million pre-tax charge related to the decision to sell itsheating, ventilation and air conditioning business, as well as $1.8million of merger-related costs. Pipelines and processing hadoperating and joint venture income of $5.4 million. Electricpower’s operating and joint venture income was $0.9 million, downfrom $6.6 million in the 1999 third quarter due to asset salesrequired to complete MCN’s pending merger with DTE. Energymarketing reported an operating and joint venture loss of $3.4million. Exploration and production had operating income of $4million. MCN’s largest subsidiary is Michigan Consolidated Gas, agas utility serving 1.2 million customers in Michigan.

Mountain Energy Corp., the Midwest gas marketer that has been besieged by lawsuits and a petition seeking to force it into bankruptcy, last week notified its customers in Kansas and Missouri that it will stop supplying them with natural gas after Oct. 31.