Lafayette, LA-based PetroQuest Energy Inc. announced that it has hedged 7,000 Mcf/d of its natural gas production for the calendar year 2003. These natural gas hedges are in the form of swaps at an average price of $4.015/MMbtu. The new hedged gas brings PetroQuest’s hedged total to 2.555 Bcf. “Hedging at these price levels locks in favorable returns on the volumes hedged in addition to providing the company with more predictable cash flow,” said Charles Goodson, CEO of PetroQuest. “We continue to evaluate the market for additional opportunities to hedge not only incremental volumes of natural gas, but also crude oil.” The company also took the chance to update its current production operations. PetroQuest recently began drilling two wells, the Berry Lake #2, offsetting the recent Berry Lake discovery, and the initial test well at the Redfish Prospect. Both wells are anticipated to be logged before year-end. The independent energy company is engaged in the exploration, development, acquisition and production of oil and natural gas reserves in the Gulf Coast Basin, both onshore and in shallow waters offshore.
Articles from Hedges
El Paso Corp. said Tuesday it has hedged almost 75% of its projected natural gas production at a Nymex price of $3.85/Mcf ($3.63/MMBtu) for September through December. Next year, about 60% of its production will be hedged at $4.19/Mcf ($3.95/MMBtu), and in 2003, about 35% is hedged at $4.19/Mcf ($3.95/MMBtu).
Pioneer Natural Resources board approved a 28% increase in its2001 capital budget compared to 2000 spending and announced a newhedging program weighted toward first quarter prices. Its spendingwill be weighted heavily toward natural gas development.