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Natural Gas Prices Lower MDU’s Earnings Forecast

MDU Resources Group, the diversified utility headquartered in Bismarck, ND, said it does not expect to meet its forecasts of $2.30-2.50 per earnings share for this year, and will see “significantly” lower earnings than the predicted $2.60 in 2002 because of the volatility in natural gas prices and a downturn in the economy. Still, MDU said it would stay the course on its long-term goal of an earnings per share growth of 10-12%, as well as a projected 30% increase in combined natural gas and oil production this year.

September 24, 2001

Tidelands Files Applications For Mexico Pipe Crossing

Tidelands Oil & Gas Co., headquartered in Corpus Christi, TX, said Wednesday that Reef International LLC, a subsidiary, has filed applications to construct and operate an international pipeline crossing into Mexico. The Eagle Pass/Piedras Negras pipe crossing would deliver natural gas, propane and butane, and is expected to be operational by the first quarter of next year.

September 6, 2001

Petrobank, Ventus Merge Canadian Operations

Calgary-headquartered Petrobank Energy and Resources Ltd. and Ventus Energy Ltd. announced Wednesday they will merge into a new company that will have three focused core areas in Western Canada, including northwest Alberta, central Alberta and southeast Saskatchewan. The arrangement gives Ventus shareholders the option of receiving C$9.75 cash or one common share of the new company for each share they hold, while Petrobank shareholders would receive one new share for each 4.25 Petrobank shares held.

July 12, 2001

Industry Briefs

Osprey Energy, headquartered in Bridgewater, NS, has begun an extensive onshore seismic program to locate potential oil and gas deposits north of Truro, NS. Osprey and its joint venture partner will conduct a month-long program over an 80-mile stretch from Debert to Parrsboro, part of the Maritime Basin, with the primary target the 70 kilometers of seismic lines in the Pennsylvanian Parrsboro formation. Early indications are that the region has potential reserves of up to 75 MMbbl and 345 Bcf. The area to be covered includes the Lower Parrsboro formation, which is about 850 meters thick, consisting of sandstone and shale. The Upper Parrsboro is about 1,800 meters thick and is similar to the Lower Parrsboro. The seismic program is gathering 6,000% fold vibroseismic data, which has been contracted to Kinetex Inc. The data will be analysed to create a subsurface geological profile, which will be integrated with surface geological data gathered over several years by the Geological Survey of Canada and the Nova Scotia Department of Natural Resources.

July 11, 2001

Industry Briefs

Magnum Hunter Resources Inc., headquartered in Irving, TX, as begun production from one new well drilled at South Timbalier Block 264 in the offshore Gulf of Mexico at a rate of 6.5 MMcf/d and 185 bbl/d. The well, operated by Magnum Hunter, was drilled to a depth of 7,494 feet and logged 80 feet of gross gas pay. Two other wells are in the process of being completed on the newly installed four-slot platform, and additional development is planned later this year, with a second platform also being considered. Production is connected to Magnum Hunter’s 50% owned and operated Block 265 main processing platform, which also processes gas from the company’s 50% owned Block 250. The combined gross production at this facility is now approximately 28 MMcf/d and 500 bbl/d.

July 10, 2001

Penn Virginia Acquires Private Texas Reserves

In a $112 million cash transaction, Penn Virginia Corp., headquartered in Radnor, PA, is acquiring Synergy Oil & Gas Inc. of Houston, a privately owned independent. Synergy’s exploration and production is focused along the onshore Texas Gulf Coast and in West Texas, holding about 59.2 Bcfe in total net proved reserves, with 55% in natural gas.

June 25, 2001

Taylor NGL To Build Ethane Extraction Plant

Taylor NGL Limited Partnership, headquartered in Calgary, plans to build a C$45 million natural gas liquids extraction plant in Joffre, AB. The Joffre Ethane Extraction Plant (JEEP) would be located near Nova Chemicals’ petrochemical complex and would process the fuel gas used there to recover ethane, propane, butane and condensate. Pending the necessary approvals, construction is expected to begin by the fourth quarter.

June 25, 2001

Penn Virginia Acquires Private Texas Reserves

In a $112 million cash transaction, Penn Virginia Corp., headquartered in Radnor, PA, is acquiring Synergy Oil & Gas Inc. of Houston, a privately owned independent. Synergy’s exploration and production is focused along the onshore Texas Gulf Coast and in West Texas, holding about 59.2 Bcfe in total net proved reserves, with 55% in natural gas.

June 22, 2001

Taylor NGL To Build Ethane Extraction Plant

Taylor NGL Limited Partnership, headquartered in Calgary, plans to build a C$45 million natural gas liquids extraction plant in Joffre, AB. The Joffre Ethane Extraction Plant (JEEP) would be located near Nova Chemicals’ petrochemical complex and would process the fuel gas used there to recover ethane, propane, butane and condensate. Pending the necessary approvals, construction is expected to begin by the fourth quarter.

June 21, 2001

People

NiSource Inc., headquartered in Merrillville, IN, is expanding its Washington, D.C. presence to enhance the company’s advocacy efforts on federal government issues, and beginning June 4, Rebecca T. Sczudlo will be the company’s vice president of federal government affairs. Sczudlo has 20 years experience in government affairs and communications, including seven years as a staff member of the U.S. Senate Energy and Natural Resources Committee. She also has worked for Shell Oil Co. as a government affairs representative. She will report to NiSource CEO Gary Neale on policy matters and to Ramon Arredondo, assistant to Neale, administratively.

June 4, 2001