Delays

Pioneer Natural Resources Co. said production delays on the start-up of its Canyon Express project dropped predicted fourth quarter production results, which now are expected to average 117 Mboe/d. Year-ago fourth-quarter production averaged 110 Mboe/d. The Dallas-based independent said operational issues had delayed production from one of its six wells in the project, but net production is currently reaching expected levels, averaging more than 100 MMcf/d with five of six wells producing. The sixth well is expected to begin production in the first quarter. Fourth quarter realized prices for natural gas liquids are expected to range between $16-$16.20/bbl, while oil prices should range between $22.90-$23.10/bbl. Pioneer’s fourth quarter realized price for gas, including the effects of hedges, is expected to average approximately $2.65-$2.85/Mcf. Total exploration and abandonment expense is expected to be approximately $27 million after taxes, including charges related to an unsuccessful well on its Lightning prospect, the first of three prospects Pioneer is drilling near its Falcon field in the deepwater Gulf of Mexico.

North Carolina’s regulators approved a $25 million settlement with Duke Power Co. over charges that the utility understated its rate of return between 1998 and 2001 in order to avoid a rate cut. However South Carolina regulators put off a decision on the matter most likely until its meeting this week.

WGL Holdings, Inc. said Tuesday it has delayed releasing its company’s earnings due to a notice of hearing issued by the Public Service Commission of the District of Columbia. The hearing will look into the basic rates, charges and terms and conditions of service of its subsidiary, Washington Gas Light Co.

It was a busy week for Williams which announced it was delaying reporting earnings until mid-November to complete negotiations on asset sales, then was socked with a lawsuit involving the former Barret Resources, one of the prize assets it is not planning to sell. At the end of the week the company announced it has learned that a few traders in its natural gas trading business have provided inaccurate pricing information to an energy industry publication that compiles and reports index prices.

Citing negotiations regarding some planned asset sales, Williams rescheduled its third-quarter earnings report for November to coincide with its Nov. 14 deadline to file its 10-Q with the Securities and Exchange Commission.

The Florida Public Service Commission (PSC) last week voted to hold off taking further action on the GridFlorida power grid proposal sponsored by the state’s electric utilities after the state’s Office of Public Counsel filed an appeal with its own supreme court of a PSC order approving several aspects of GridFlorida.

PPL Corp. will replace a start-up transformer at the 1,100 MW Unit 2 of the utility’s Susquehanna nuclear power plant in Luzerne County, PA, after a fire hit the transformer last Thursday morning. Company officials said the unit, which was automatically shut down last week when a problem occurred on the non-nuclear side of the plant, will not restart until the damaged transformer is replaced.

With strong opposition from the state’s two major private sector utilities, a proposal to merge the natural gas-buying portfolios of San Diego-based Sempra Energy’s two utilities will be delayed until after a newly-ordered statewide regulatory investigation is completed, according to one of the commissioners on the five-member California Public Utilities Commission.

Chesapeake Energy said Friday it has deferred the commencement of a $12 per share cash tender offer for all of the outstanding shares of Oklahoma City-based Canaan Energy Corp., pending negotiations with Canaan management. Chesapeake had announced its plan to buy the company last Monday for a total of about $55 million, plus the assumption of $42 million in Canaan debt. It said its plans for the company would produce far better results than those of Canaan’s current management.