Exploring

Pogo Producing Co. confirmed last week that it is still exploring the possible sale or merger of the company after announcing the sale of Canadian subsidiary Northrock Resources Ltd. for $2 billion in cash to Abu Dhabi National Energy Co. (TAQA).

Pogo Producing Co. confirmed Tuesday that it is exploring the possible sale or merger of the company after announcing the sale of Canadian subsidiary Northrock Resources Ltd. for $2 billion in cash to Abu Dhabi National Energy Co. (TAQA).

After exploring the entire range of its $7 to $8 borders during the last month, it was only fitting that May natural gas futures would go off of the board Thursday afternoon right in the middle at $7.508, down 18.1 cents on the day. June natural gas, which steps up to front-month status, dropped 17.9 cents to $7.602.

Push has come to shove for Pogo Producing Co., which Thursday announced it has begun exploring strategic alternatives to sell or find a merger partner for all or part of its assets.

The Interior Department inspector general said Friday his office is exploring the idea of taking over from the embattled Minerals Management Service (MMS) the auditing of offshore oil and natural gas royalties that are paid to the federal government. The MMS has been under constant attack for a year for its failure to collect billions of dollars of royalties that are owed by producers.

Push has come to shove for Pogo Producing Co., which Thursday announced it has begun exploring strategic alternatives to sell or find a merger partner for all or part of its assets.

After exploring the upside in morning trade and notching a $7.720 high, November natural gas futures collapsed in the afternoon, recording a low of $7.060 before expiring at $7.153, down 34.4 cents on the day and 8.8 cents lower for the week. December natural gas, now the front month contract, closed Friday 24 cents lower at $7.827.

New Orleans-based Energy Partners Ltd. (EPL) terminated an agreement to buy Stone Energy Corp. on Thursday and is exploring other alternatives, including a sale. However, EPL continued to advise shareholders to reject a takeover bid by Australia’s Woodside Petroleum Ltd., calling it too low.

October natural gas futures started the morning lower as traders were exploring sub-$5 prices again Wednesday while news surrounding the losses at hedge fund Amaranth Advisors LLC continued to unfold (see related story). After recording a low of $4.850 in morning trade, traders put in a high of $5.040 in the afternoon before the October contract settled at $4.931, down 7.5 cents on the day.