Denver

Williams saw its earnings jump 63% in the third quarter, mainly due to its acquisition of Denver-based producer Barrett Resources Corp. and strong earnings from its Energy Marketing & Trading segment, which was broken out as the company’s third industry group in September. The earnings gave Williams the impetus to raise its 2001 earnings forecast to the current consensus of $2.40 a share from a previous $2.30-$2.35 a share, and it reiterated a 15%/year earnings growth goal beginning in 2002.

Denver-based Evergreen Resources Inc. on Tuesday was awarded the lease rights on three tracts covering 14,908 acres of prospective coalbed methane (CBM) properties in Alaska’s Matanuska Valley. Evergreen was high bidder on the tracts at the 2001 Northern Cook Inlet Basin oil and gas lease sale in September, held by the Alaska Mental Health Land Office.

Denver, CO-based Westport Resources Corp. said late last week that the company spudded eight natural gas exploration wells and 59 development wells during the third quarter. The company also reported that it has hedged approximately 60% and 40% of its estimated oil and gas production, respectively, from its proved developed producing reserves for 2002. Westport said its oil and gas hedges are predominantly collars with average floor prices of $22.26 per barrel and $3.10 per MMBtu respectively.

Denver-based Gasco Energy Inc. announced that its board of directors have authorized the purchase of approximately $250,000 of the company’s common shares. The company said it will use working capital if purchases of the common shares are made in the open market. The program has an indefinite life, could be stopped without further notice, or expanded to suit the company’s financial goals and strategies. “The purchase of our stock in the public market is a strong indicator that we believe in our operations and technical people,” said CEO Mark Erickson. “During this difficult period in our nation’s history, it is important for investors to stand tall against the tyranny and remain steadfast with their investments. The stock buy-back program will have no effect on our capital program drilling for natural gas in the Rocky Mountains.” Gasco Energy is a natural gas and oil exploration and development company that focuses on gas rich prospects in the Rocky Mountain area of the United States.

Denver-based Mallon Resources Corp. has completed the sale of its Delaware Basin oil and gas properties to Irving, TX-based Magnum Hunter Resources Inc. Mallon said the sale included its interest in 23 fields, consisting of interests in 141 producing wells and 13,742 net mineral acres. Magnum Hunter entered into a purchase and sale agreement with Mallon in mid-August for the acquisition of Mallon’s Delaware Basin oil and natural gas reserves and related assets located in Eddy and Lee counties of southeast New Mexico (see Daily GPI, Aug. 14).

The State of Alaska has hired Petrie Parkman & Co. of Denver to act as a financial adviser to evaluate the state’s potential participation in owning an interest in or financing a North Slope natural gas pipeline project. Last week, Alaska Gov. Tony Knowles proposed federal legislation that would mandate a natural gas pipeline along the Alaska Highway, and called for federal tax incentives to enable companies to bring North Slope gas to market (see Daily GPI, Sept. 4).

As mergers and acquisitions attempt to live up to the pace set during 2000, Denver-based MarkWest Hydrocarbon Inc. reported it has more than doubled natural gas reserves with the $51 million acquisitions of Leland Energy Canada Ltd. and Watford Energy Ltd. — two privately owned exploration and production companies based in Calgary. The companies’ current management, which directs both Leland’s and Watford’s operations, will remain intact, MarkWest said.

Denver-based Western Gas Resources Inc. said Wednesday it had increased hedging positions on its equity gas volumes for the rest of this year and through 2002, hedging through the rest of 2001 to 79,000 MMBtu/d, an increase of 29,000 MMBtu/d, at an average price of $4.36/MMBtu. For the second quarter of 2001, Western had hedging positions of 49,000 MMBtu/d, about 50% of its projected equity gas volumes, at an average price of $4.39/MMBtu.

Denver-based MarkWest Hydrocarbon Inc. announced preliminary results for three new gas wells in which it holds interests. In eastern Michigan, the Sims 2-7 well was successfully recompleted, testing at 4.4 MMcf/d of sour gas and 400 bbl/d of condensate and natural gas liquids. The well is the second to be connected to the Au Gres gas plant, modified by MarkWest and its partners in 2000. The well is scheduled to be on production by mid-July. In western Michigan, MarkWest and its partners have made two gas discoveries. The previously drilled Victory 32, in which MarkWest owns 8.5%, successfully tested before being shut in for pipeline connection. The reef play is only a few miles from the company’s sour gas pipeline. The third well, the Victory 21, in which MarkWest holds a 14.6% interest, found a reef and is shut in awaiting equipment to complete and test the well.