Discovers

Unocal Corp. has discovered natural gas at its Alaskan Happy Valley prospect on the Kenai Peninsula. First production is expected by the fourth quarter of 2004, with average production of 20-25 MMcf/d in 2005.

Reliant Resources Inc. (RRI), wobbling as a stand-alone retail and wholesale services company, last week said it had identified a series of four more related natural gas financial swap transactions that should not have been recorded. The transactions decreased RRI net income by $13 million in 2000 and increased net income by the same amount in 2001. After meeting with its independent auditors and the Securities and Exchange Commission, RRI determined that a restatement would not be required, but it will file an additional footnote disclosure as an amendment to its 2001 Form 10-K/A.

Reliant Resources Inc. (RRI), wobbling as a stand-alone retail and wholesale services company, revealed Tuesday that a review of its energy trading activities has identified a series of four related natural gas financial swap transactions that should not have been recorded.

Chevron U.S.A. Production Co. announced the discovery of a largenew natural gas trend offshore Mississippi in the Gulf of Mexicothat could hold 1 Tcf of gross reserves. Chevron said the VioscaKnoll Carbonate Trend is unique to the Gulf in part because of itssize and because it’s the first offshore gas reserves to originatefrom Lower Cretaceous reservoirs. The Lower Cretaceous, however,has been productive onshore in Texas, Louisiana and in Mexico.