Conditions

Southern California Gas declared a high-linepack OFO for Sunday but ended it Monday.

Well servicing contractor Key Energy Services Inc. has agreed to acquire Edge Oilfield Services LLC and Summit Oilfield Services LLC for $300 million in stock and cash, plus reimbursement of up to $40 million of capital spending in the Eagle Ford Shale. Edge primarily rents hydraulic fracturing stack equipment. It also provides well testing services, rental equipment such as pumps and power swivels, and oilfield fishing services. Closing is expected during this quarter subject to customary conditions.

Kodiak Oil & Gas Corp. has agreed to acquire from an undisclosed private seller Bakken/Three Forks leasehold and producing properties in the Williston Basin for about $85.5 million, the company said Monday.

Legislation that would open leasing on all property owned by the state government — including state parks — to oil and gas companies is advancing through the Ohio General Assembly and is expected to pass.

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.

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.

Pacific Gas and Electric extended the systemwide Stage 2 high-inventory OFO that began Friday through at least Saturday with no change in conditions.

April natural gas futures staged a sharp rally Friday as traders noted deeply oversold conditions that were ripe for a short-covering rally. In the words of one trader it was “bound” to happen. At the end of the day April had risen 13.3 cents to $4.005 and May had gained 13.3 cents as well to $4.073. April crude oil tacked on 60 cents to $97.88/bbl.

MRT said it will lift Thursday the cold weather System Protection Warning that it implemented Jan. 19 for northbound volumes.