As indicated in Tuesday’s dwindling gains and increased softness, the cash market’s recent bull run was coming to a close. This was borne out in Wednesday trading; several locations, mostly in the Northeast, were flat or higher again, but a majority of points saw generally minor declines.
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DJ Basin Bringing ‘Very Exciting’ Growth for Noble
Noble Energy Inc. CEO Chuck Davidson said he was “really pleased” with the company’s growth in the Denver-Julesburg (DJ) Basin.
Carrizo Sells Barnett Assets to KKR Affiliate
Carrizo Oil & Gas Inc. agreed to sell substantially all of its Barnett Shale Tier 1 properties to KKR Natural Resources (KNR), a partnership of an affiliate of Kohlberg Kravis Roberts & Co. LP (KKR) and Premier Natural Resources, for $104 million, the companies said Wednesday.
Industry Briefs
Copano Energy LLC plans to expand the processing capacity of its Houston Central plant in Colorado County, TX, to accommodate increased demand from producers in the Eagle Ford Shale. Houston-based Copano plans to build a 400,000 Mcf/d cryogenic processing plant, bringing the facility’s total processing capacity to 1.1 Bcf/d. The new plant is estimated to cost $145 million and could be in service by early 2013. Copano, a midstream natural gas company with operations in four states, owns assets including nine processing plants with more than 1 Bcf/d of combined processing capacity and 22,000 b/d of fractionation capacity.
Rangebound Market a Challenge for Traders; May Softens
May futures drifted lower in uninspired trading Friday as traders struggled to get orders filled and had to adjust to a low-volatility rangebound market. At the close May futures had inched lower 0.8 cent to $4.204 and June fell 0.5 cent to $4.264. In contrast, May crude oil bounded higher by $1.55 to $109.66/bbl.
North American Shale Still Hot Prospect, Says Consultant
Global merger and acquisition (M&A) deals in the exploration and production (E&P) sector reached $45 billion in the first three months of the year, with close to half of the transactions in North America’s shales, Evaluate Energy said Tuesday.
Marathon Sells Stake in DJ Basin Acreage to Japan’s Marubeni
Marathon Oil Corp. has struck a deal with Japan’s Marubeni Corp. to sell close to a one-third stake in 180,000 net acres in the natural gas-rich Denver-Julesburg (DJ) Basin for $270 million, or about $5,000 an acre.
Global E&P Deals Climbing in Value, Says Consultant
Global merger and acquisition (M&A) deals in the exploration and production (E&P) sector reached $45 billion in the first three months of the year, with close to half of the transactions in North America’s shales, Evaluate Energy said Tuesday.
Traders Selling Puts and Calls to Cope With Market; May Slides
May futures fell in light trading Monday as traders factored in moderating temperatures and looked for prices to decline nearly 20 to 30 cents. At the close May natural gas had dropped 7.3 cents to $4.289 and June shed 7.4 cents to $4.363. May crude oil continued higher, adding 53 cents to $108.47/bbl.
Drilling Activity Gains Continue Across the Board
Active rigs in U.S. shale and tight sands basins gained 1% in the week ending April 1 to hit 981 rigs, up from 972 the previous week, according to NGI’s Shale Daily Unconventional Rig Count.