Concentrate

In line with its plans to exit the refinery business and concentrate on North American natural gas pipelines and production, El Paso Corp. announced progress Wednesday on three petroleum asset sales totaling approximately $156 million. The news came on the heels of a deal that fell through to sell some properties in the Uinta Basin to Vintage Petroleum Co. (see related story).

Canadian 88 Energy Corp., which has been undergoing a series of changes as it refocuses its interests in Alberta, said Friday that its board of directors has voted to rename the Calgary-based independent to Esprit Exploration Ltd. If approved as expected, the new name would be implemented “shortly thereafter,” said the company.

Canadian 88 Energy Corp. is selling off its 750,000-plus acreage along Canada’s East Coast to concentrate on exploration and production in the Western Sedimentary Basin. Although the company likes what it has in the less-developed region, Stephen J. Savidant, president, said, “we can’t afford it, it’s too big, it’s too much cost and it’s too far out” in terms of production timing.

Canadian 88 Energy Corp. is selling off its 750,000-plus acreage along Canada’s East Coast to concentrate on exploration and production in the Western Sedimentary Basin. Although the company likes what it has in the less-developed region, Stephen J. Savidant, president, said, “we can’t afford it, it’s too big, it’s too much cost and it’s too far out” in terms of production timing.

Kerr-McGee Corp. increased its capital budget for exploration and production development projects by 15%, or $120 million, to $900 million, to concentrate more on identified projects in the Denver-Julesburg Basin and the Gulf Coast.

Ignoring a general lack of hot weather fundamentals, cash traders chose instead to concentrate on other factors in sending prices skyrocketing by 20-50 cents amid huge volatility Thursday. The key market stimulants were AGA’s report of a shockingly low 3 Bcf storage injection last week, which had been met by widespread skepticism; the screen’s corresponding spike Wednesday afternoon (although futures were softer Thursday morning); and the rapid development and speed of Tropical Storm Chantal in the Atlantic.

Columbia, SC-based SCANA Corp. has formed subsidiary SCG Pipeline Inc., which will concentrate on transporting natural gas in Georgia and South Carolina, transporting gas from interconnections with Southern Natural Gas and Southern LNG’s Elba Island liquefied natural gas (LNG) import terminal near Savannah, GA. SCG Pipeline also is now evaluating potential pipeline routes for an end point in Jasper County, SC, which is expected to begin commercial operations in November 2003.

In a planned move to dump its mature shelf properties andconcentrate on new exploration opportunities, EEX Corp. is sellingits interests in nearly 100 offshore lease blocks in the shallowerwaters of the Gulf of Mexico to an undisclosed buyer for $60million. The properties contain estimated proved reserves of 58Bcfe, of which 33% are proved producing, as of Oct. 1.

Planning to concentrate on power transmission and distribution,New England Electric System (NEES) said yesterday the time is ripeto test the market for AllEnergy Marketing. The company will lookat all strategic options, including a possible sale. AllEnergy isone of the largest retail energy marketing firms in the Northeast,currently selling gas, fuel oil, propane, and electricity to about125,000 customers.