Credible

Object Reservoir Inc., a services company providing complex reservoir modeling in unconventional gas plays, is rapidly expanding its Collaborative Exploitation Project (CEP) for the Marcellus Shale in northeast Pennsylvania and is looking into starting up a similar effort in the southwestern part of the state.

Prices rose at virtually all points Monday based on increases of heating load in the Midcontinent/Midwest and portions of the West, the first credible storm threat to Gulf of Mexico production since Hurricane Ike a month earlier and the return of industrial demand from a weekend hiatus. One source suggested that a strong rebound of stock prices helped boost cash quotes and all energy futures as it suggested some easing of the global economic crisis.

Ex-Enron Corp. CFO Andrew Fastow, who was sentenced to six years in prison last month (see NGI, Oct. 2), will be given a day pass through October to allow him to participate in a deposition to prepare for a trial against several of Enron’s former banking partners. Also on Friday, Dynegy Inc. agreed to pay Enron $44 million to resolve litigation issues, a bank settled with Enron for another $20 million, and Enron’s former corporate secretary received probation for helping prosecutors convict Enron founder Kenneth Lay and ex-CEO Jeffrey Skilling.

The boards of Royal Dutch/Shell Group’s parent companies met Friday to consider if any further actions should be taken following the 20% reserves reduction taken in January. A report by the company’s audit committee apparently puts the blame for the oil and gas reserves revisions on former Chairman Sir Philip Watts and Walter van de Vijver, the former exploration and production (E&P) chief.