Fund

Omaha, NE-based Tenaska Power Fund LP (TPF) and Houston-based eCORP LLC on Monday unveiled plans to develop a new high-performance natural gas storage facility near Uniontown in southwestern Pennsylvania. The facility, which will be developed by a jointly owned entity, Chestnut Ridge Storage LLC, will offer 17.5 Bcf of working gas capacity in its first phase of development.

Defunct hedge fund Amaranth Advisors LLC, which last year lost more than $6 billion in bad bets on the natural gas market, agreed to pay $716,819 to settle charges with the Securities and Exchange Commission (SEC) that it sold securities short in offerings and covered its positions by buying securities in the offerings, the SEC said last week. The penalty amount breaks down to $150,000 for a civil penalty, $507,627 in disgorgement and $59,192 in prejudgment interest. Amaranth, which is based in Greenwich, CT, neither admitted nor denied the charges. “In connection with five follow-on offerings conducted between November 2004 and February 2005, Amaranth sold securities short during the five business days before the pricing of those offerings and then covered the short positions with securities purchased in the offerings (‘offering shares’),” the SEC said. “These transactions violated Rule 105 of Regulation M, and resulted in funds advised by Amaranth making profits of $507,627.” Companies with shares involved in the Amaranth transactions are Coeur D’Alene Mines Corp., Catapult Communications Corp., Cleco Corp., MEMC Electronic Materials Inc. and American Superconductor Corp. Amaranth told investors that the penalty is unrelated to its natural gas trading activities. Amaranth’s bad bets in the natural gas market first came to light in September (see NGI, Sept. 25).

Defunct hedge fund Amaranth Advisors LLC, which last year lost more than $6 billion in bad bets on the natural gas market, agreed to pay $716,819 to settle charges with the Securities and Exchange Commission (SEC) that it sold securities short in offerings and covered its positions by buying securities in the offerings, the SEC said Wednesday.

New York-based hedge fund Third Point LLC, which in the past couple of years has scooped up substantial shares in several independent producers, has purchased 2.45 million shares (8.1%) of Houston-based ATP Oil & Gas Corp. Third Point did not report a stake in ATP at year-end 2006.

Nexus Gas Partners LLC, which is owned by a New York-based private equity fund, on Tuesday announced the acquisition of Dominion Midstream Services LP from Dallas-based Dominion Gas Group for an undisclosed amount. The assets include the Logansport gathering and dehydration system, which currently gathers 100 MMcf/d from the Joaquin Field in Shelby and Panola counties, TX, and the Logansport, Grand Cane, Spider and Benson fields in DeSoto Parish, LA.

The CEO of New York-based hedge fund Third Point LLC, which in November purchased a substantial stake in Pogo Producing Co. (see NGI, Nov. 27), on Friday demanded the company initiate a process to sell the company “in whole or part.” In a letter, Third Point CEO Daniel S. Loeb called the track record of Pogo’s CEO “long and meager” and said it was time for a change.

The CEO of New York-based hedge fund Third Point LLC, which in November purchased a substantial stake in Pogo Producing Co. (see Daily GPI, Nov. 27), on Friday demanded that the Pogo board initiate a process to sell the company “in whole or part.” In a letter, Third Point CEO Daniel S. Loeb called the track record of Pogo’s CEO “long and meager” and said it was time for a change.

With press reports now widely indicating that hedge fund Amaranth Advisors LLC’s long position was so big that it was artificially propping up natural gas futures prices for the winter forward months, Bentek Energy President Porter Bennett warned that the only way regulators could have known about the situation was if each trading company revealed all of their positions on a frequent basis. However, he warned that such a move “would destroy the well functioning, efficient natural gas marketplace we currently have.”

With press reports now widely indicating that hedge fund Amaranth Advisors LLC’s long position was so big that it was artificially propping up natural gas futures prices for the winter forward months, Bentek Energy President Porter Bennett warned that the only way regulators could have known about the situation was if each trading company revealed all of their positions on a frequent basis. However, he warned that such a move “would destroy the well functioning, efficient natural gas marketplace we currently have.”