Energy

Nevada Energy Inc. signed an offer to purchase from ConsolidatedBeacon Resources Ltd. two separate onshore exploration agreementscovering a combined total area of about 82,000 net hectaresnorthwest of Truro, Nova Scotia. Nevada will have a 75% workinginterest in 27,970 gross hectares and a 100% working interest in60,936 gross hectares and will be the operator. The agreementsrequire the operator to expend capital to fulfil the earningrequirements under the terms of the work programs as required bythe Nova Scotia Petroleum Directorate. Significant offshore gastests have been documented in the 5 MMcf/d range with establishedoil and gas production of 4 MMBoe realized at the onshore StoneyCreek Field within the same depositional basin about 78 milesnorthwest of the lands.

Costilla Energy Inc. of Midland, TX, got another reprieve on itsdebt repayment when its bank credit facility was amended providingfor an extension of the $10.2 million principal payment until June18. The payment was due yesterday after a previous extension. Theindependent oil and gas company is in the process of divesting itsRocky Mountain oil and gas properties.

The Gas Research Institute has offered a proposed budget of $98million for approval by the Federal Energy Regulatory Commission tofund research and development projects for 2000. The funding wouldcover $72.6 million for 43 Core projects, widely beneficial to theentire industry and gas users and $25.4 million for 22 Non-Coreprojects targeted to specific activities and major market segments.In addition to the FERC-directed portion of the budget, GRIanticipates receiving about $53 million in cofunding from industryand govenrment sources in 2000. The filing Tuesday marked the thirdyear of the seven-year transition to an all-voluntary R&Dprogram. In 2001 the funding through FERC will drop to $70 million,then $60 million in 2002-2004. At the end of that period thefunding will be voluntary.

Working gas levels in storage at the end of the winter heatingseason have been revised by the Energy Information Administration(EIA) after a report from ANR Pipeline that 47 Bcf of working gasin its Michigan storage facilities was reclassified as base gas.The change means working gas levels at the end of the winterheating season were 3% lower than first reported by the EIA, or1,430 Bcf compared to 1,477 Bcf.

Daniel L. Larcamp was appointed director of the Office ofMarkets, Tariffs and Rates at the Federal Energy RegulatoryCommission (FERC). The office and position were created as part ofinternal restructuring at the Commission under the FERC Firstprogram. Larcamp has served as senior counsel and policy advisor toFERC Chairman James. J. Hoecker on electric power issues sinceAugust.

Daniel L. Larcamp was appointed director of the Office ofMarkets, Tariffs and Rates at the Federal Energy RegulatoryCommission (FERC). The office and position were created as part ofinternal restructuring at the Commission under the FERC Firstprogram.

The Energy Information Administration reported that 47 Bcf ofworking gas in Michigan storage facilities was reclassified as basegas in March, which means working gas levels at the end of thewinter heating season were 3% lower than first reported, or 1,430Bcf compared to 1,477.

Costilla Energy Inc. of Midland, TX, is examining its optionsafter lenders extended until June 1 a $10.2 million mandatoryprincipal payment due a bank credit facility. Petrie Parkman &ampCo. was hired to weigh potential deals.

Costilla Energy Inc. of Midland, TX, is examining its optionsafter lenders extended until June 1 a $10.2 million mandatoryprincipal payment due a bank credit facility. Petrie Parkman &Co. was hired to weigh potential deals.