Range Resources Corp. credited its second quarter results to a simple factor: better rocks.
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Most Points Rally as Expected Ike Path Shifts Again
The vagaries of estimating a hurricane’s future path came into play in the spot market again Wednesday. Whereas prices fell across the board Tuesday in reaction to Hurricane Ike’s projected path shifting a bit to the south, a revision that brought the storm back slightly closer to the Gulf of Mexico (GOM) production area was sufficient to rally quotes at most points Wednesday.
NEB Offers Dismal Short-Term Outlook for Canada Gas Output
Canada’s National Energy Board (NEB) has delivered a dreary forecast for Canadian conventional natural gas production in the short term, estimating a decline of 7-15% in deliverability between now and 2009.
NEB Issues Dismal Short-Term Outlook for Canada Gas Output
Canada’s National Energy Board (NEB) Wednesday delivered a dreary forecast for Canadian conventional natural gas production in the short term, estimating a decline of 7-15% in deliverability between now and 2009.
Energy Analysts Expect Gas Storage to Be Low — but How Low?
With the return to seasonal weather, one energy analyst is now estimating that natural gas storage levels will fall below 1,400 Bcf by the end of March. Another is predicting that gas storage will end the season at around 1,493 Bcf, which is 200 Bcf lower than he forecasted only three weeks ago.
Canada Southern’s Board Says Petro-Canada Offer Fails to Properly Value Arctic Holdings
Estimating its potential arctic gas reserves at about 68 times greater than its current 13.7 Bcfe of proved and probable reserves, Canada Southern’s board of directors said Thursday that a recent hostile takeover bid by Petro-Canada subsidiary Nosara Holdings Ltd. should be rejected by Canada Southern shareholders. The Petro-Canada offer is for a cash price of US$7.50 per share, or about US$113 million.
Industry Brief
The Minerals Management Service (MMS) released a proposed notice for Central Gulf Lease Sale 198 on Tuesday, estimating potential production from the acreage of 276-654 million bbl of oil and 1.59-3.3 Tcf of gas. The lease sale, which is scheduled for March 15, 2006, will encompass about 4,000 unleased blocks covering 21 million acres in the Central Gulf of Mexico Outer Continental Shelf planning area offshore Louisiana, Mississippi and Alabama. Recently revised special provisions for the sale include the following: Deepwater royalty relief lease terms specified in the Energy Policy Act of 2005; Shallow-water deep-gas royalty relief for leases in water depths of zero to less than 400 meters (relief in the recent Western Gulf sale was in the zero to less than 200 meter range). In addition, this sale will provide an increase in the royalty suspension volumes from 25 BCF to 35 BCF for successful shallow-water wells drilled 20,000 feet or deeper; This will be the first Central Gulf sale with the higher rental rates that were implemented in August 2005; A newly developed stipulation regarding limitations on use of the seabed and water column in Mississippi Canyon Block 118 because of an ongoing federally funded University of Mississippi study of gas hydrates; A new Information to Lessee (ITL) clause that relates to ongoing U.S. Coast Guard reviews of the Gulf Landing LNG project; and an earlier time deadline for Electronic Fund Transfer (EFT) rental payments associated with this sale.
NGI The Weekly Gas Market Report
Rita Could Cost Entergy Up to $550M, Cleco Around $50M
Entergy Corp. is estimating total restoration costs for the repair or replacement of its electric facilities damaged by Hurricane Rita will be in the range of $400-550 million, while Cleco Corp. last week estimated that Rita will cost the company approximately $50 million.
Lehman Estimates ’04 U.S. Gas Output Down 3.2%
Lehman Brothers is estimating that 2004 U.S. natural gas supply declined 3.2% over 2003, with the 4.8% decline in production partly mitigated by an increase in Canadian and liquefied natural gas (LNG) imports. The estimates are based on a survey of producers responsible for about two-thirds of U.S. volumes.
Canada’s Gas Production Now Expected Lower Than Month-Ago Forecast
After estimating last month that total Canadian natural gas production would fall or rise by year-end within a margin of -1% or +1%, Lehman Brothers analysts scuttled those predictions and now forecast a “worst-case scenario,” which drops annual production by at least 1% and as much as 3% over 2001. The loss compares to the 6% annual increase experienced in 2001, and is attributed to the striking falloff in production at the once prolific Ladyfern discovery.