Depths

Gateway Energy Corp. bought offshore pipelines from Gulfshore Midstream Pipelines Ltd. extending from the western and central Gulf of Mexico (GOM) in water depths of 50-650 feet and currently gathering about 60,000 Mcf/d of gas from 56 wells, the company said Thursday.

Except for continued major recoveries by Rockies points from the sub-dollar depths to which they had sunk Monday, there was little price movement in the cash market Wednesday. Rockies gains ranged from about 70 cents to more than $1.50, with only Kern River not realizing an increase of a dollar or more. Elsewhere flat numbers were common and very few points moved either up or down by more than a dime.

After gapping lower in the overnight Nymex Access trading session, July natural gas opened Wednesday’s regular session at $6.150 and explored lower depths from there as traders absorbed the fact that summer heat is making false starts in a number of regions across the country. The prompt month broke below the psychological $6 level in early trading and bounced on either side of the number before recording a low of $5.940 and settling at $5.974, down 41.1 cents on the day. That brings the week’s losses so far to 64.9 cents.

Shell Exploration & Production Co. (SEPCo) said Wednesday that it hit natural gas in the deepest water depths yet from two Gulf of Mexico wells. The twin Coulomb wells began production June 23, and combined they eventually are expected to produce more than 100 MMcf/d.

Voluntary natural gas price surveys have come a long way from the depths of the market crisis in 2002 as both the volume of trading and the reporting of trades has greatly increased in 2003, Natural Gas Intelligence (NGI) said Wednesday in a report to the Federal Energy Regulatory Commission.

Voluntary natural gas price surveys have come a long way from the depths of the market crisis in 2002 as both the volume of trading and the reporting of trades has greatly increased in 2003, Natural Gas Intelligence (NGI) said Wednesday in a report to the Federal Energy Regulatory Commission.

The Rockies market rebounded Tuesday from Monday’s depths, with prices reported back in the $1.60s at Opal and a dime less on CIG, which had been in the $1.20s on Monday. However, few explanations were given. Weather there is still warmer than normal and is expected the stay that way in the short term.

McMoRan Exploration has announced its Vermillion Block 196 #2exploratory well has revealed 70 feet of net oil and gas pay inthree sands between depths of 13,160 and 14,350 feet.

With gas and electric utility stocks continuing to probe thedepths after a brief spike in a January fuel-cell frenzy, someobservers and executives are keeping their eyes peeled for the nextseries of corporate takeovers in the industry.