Hits

According to a Lehman Brothers analysis, gas demand hit a 10-year low in 2003 primarily because of the impact of high gas prices on price sensitive end users, such as chemical production companies.

An exploratory well in the Gulf of Mexico Puma prospect, located in Green Canyon block 823, has hit a “significant” discovery in a hydrocarbon-rich area near existing developments. As operator, BP holds a 52% working interest, Unocal holds 15% and the remaining 33% is held by BHP Billiton Ltd.

Thursday’s explosion of prices in which gains ranged from about 30 cents to 90 cents (Algonquin citygate) left quite a few traders befuddled and groping for an explanation. Several were able to offer suggestions about potential contributing factors, but added that they didn’t believe their suggestion alone rationalized the big gains. “Beats me” was the essence of most answers.

Most points were seeing small, single-digit gains Thursday, but there was also a sprinkling of flat to moderately lower price showings. Prospects for the weekend market were unclear. The slow but steady advance of the most powerful hurricane since 1998 weighed in favor of bullishness, but it was arrayed against both a negative futures reaction to an anticipated big storage injection report and the near-disappearance of air conditioning load outside the desert Southwest and parts of the South.

The Houston Exploration Co. on Thursday announced three natural gas discoveries in the shallow waters of the Gulf of Mexico (GOM). The wells, which together are expected to produce about 35 MMcf/d, will begin ramping up this year, with the first well set to begin production in August.

Houston-based independent Spinnaker Exploration Co. on Wednesday announced four new discoveries of natural gas and oil on the shelf of the Gulf of Mexico (GOM) in just one month’s time. Currently, Spinnaker has 12 ongoing rig operations in the GOM, including eight successful wells with its partners in the Front Runner project.

Houston-based independent Spinnaker Exploration Co. on Wednesday announced four new discoveries of natural gas and oil on the shelf of the Gulf of Mexico (GOM) in just one month’s time. Currently, Spinnaker has 12 ongoing rig operations in the GOM, including eight successful wells with its partners in the Front Runner project.

McMoRan Exploration Co. announced Thursday that it has conducted a successful production test on its South Marsh Island Block 223 exploratory well — referred to as “JB Mountain” — located in the shallows of the Gulf of Mexico. The test indicated a flow rate of 14.25 MMcf/d of gas and 1,056 b/d of condensate.

Triple-digit gains at most of the Northeast citygates led an overall cash market advance Friday, as forecasts indicated little let-up this week in the severe winter conditions occupying much of the eastern two-thirds of the U.S. and Canada.