Huge

PanCanadian Petroleum encountered a huge amount of gas with itsthird Deep Panuke appraisal well, M-79A, drilled offshore NovaScotia. During a five-day test, the well flowed at an average rateof more than 63 MMcf/d despite limitations in the downholeconfiguration of the test string.

Market observers watched in disbelief yesterday as prices atsome locations rocketed up more than $1 from Wednesday’s levels.Most cash points made daily gains of between 40 and 50 cents, anddaily price ranges were enormous.

Kinder Morgan Energy Partners LP has picked up a 32.5% stake in the Cochin Pipeline System from NOVA Chemical Corp. The 1,900 mile, 12-inch pipeline operates in the Canadian sedimentary basin between Fort Saskatchewan, AL and Sarnia, ON, carrying high vapor pressure ethane, ethylene, propane, butane and natural gas liquids to the Midwestern U.S. and eastern Canadian markets.

The huge price run-ups that had been predicted for Thursdaymaterialized on schedule with double-digit gains across the board.Most increases were 30 cents or greater, with citygate quotes forFlorida, Pacific Gas & Electric and several Northeast pointstouching on the high side of $6.

Natural gas is the common denominator that will “foster allreasonable wishes” of environmental groups and still support majorand sustained economic activity for the foreseeable future,according to a University of Houston economics professor who so farhas been on target in his predictions about energy.

Natural gas is the common denominator that will “foster allreasonable wishes” of environmental groups and still support majorand sustained economic activity for the foreseeable future,according to a University of Houston economics professor who so farhas been on target in his predictions about energy.

Despite the huge post expiration-day futures correction lastThursday, prices rebounded some Friday and for good reason,according to Salomon Smith Barney energy analyst Robert Morris.

One of the United Kingdom’s leading natural gas suppliers took ahuge step across the Big Pond last week, agreeing to purchase oneof Canada’s largest gas marketers. Centrica Plc will pay $612million in cash and assumed debt for Calgary’s Direct EnergyMarketing Ltd. and its associated marketer, Natural GasWholesalers.

One of the United Kingdom’s leading natural gas suppliers took ahuge step across the Big Pond yesterday, agreeing to purchase oneof Canada’s largest gas marketers. Centrica Plc will pay $612million in cash and assumed debt for Calgary’s Direct EnergyMarketing Ltd. and its associated marketer, Natural GasWholesalers.