Improves

Houston-based Swift Energy Co. increased its third quarter production 12% over the same period a year ago, and set a quarterly production record, with 13.6 Bcfe, which included 8.7 Bcfe domestically and 4.9 Bcfe for production in New Zealand. The independent also was up 3% sequentially from the second quarter.

Far from abandoning its future North American natural gas focus, Dynegy Inc.’s CEO Chuck Watson affirmed last week that the company’s purchase of UK-based BG Group PLC’s natural gas storage facilities and assets is only replicating the Houston-based marketer’s successful model, saying it will be the “cornerstone” of its European energy network, providing a “springboard for faster growth” globally.

Far from abandoning its future North American natural gas focus, Dynegy Inc.’s CEO Chuck Watson said Monday that the company’s purchase of UK-based BG Group PLC’s natural gas storage facilities and assets is only replicating the Houston-based marketer’s successful model, saying it will be the “cornerstone” of its European energy network, providing a “springboard for faster growth” globally.

Even with stepped up state efforts for developing peakingplants, conservation and new power contracts, the key wild card forwhether California survives this summer’s expected supplyshortfalls is fickle hydroelectric power that is tied to anunpredictable, complex set of weather and environmental factors.With the end nearing for the West’s typical rainy season, stateofficials are newly optimistic about California’s hydro resourcesbeing at normal levels this summer, but in the Pacific Northwestthe prospects continued to be dour Monday as Seattle basked insunny, 60-degree weather.

Success in deepwater exploration in the Gulf of Mexico improvedthe outlook for both oil and natural gas resources, according to anupdated report by the Minerals Management Service. The 2000 MMSresource assessment now indicates that there is a 65% increase inconventional recoverable oil reserves and a 35% increase in naturalgas on the outer continental shelf.

Success in deepwater exploration in the Gulf of Mexico improvedthe outlook for both oil and natural gas resources, according to anupdated report by the Minerals Management Service. The 2000 MMSresource assessment now indicates that there is a 65% increase inconventional recoverable oil reserves and a 35% increase in naturalgas on the outer continental shelf.

By the end of the month, Chevron Canada Resources Ltd. expectsonly two wells drilled in the Northwest Territories to be producingabout 120 MMcf/d of gas. That is welcome news to a market indesperate need of new supply sources, particularly in westernCanada.

By the end of the month, Chevron Canada Resources Ltd. expectsto be at capacity for its second of two wells drilled in theNorthwest Territories. First production and sales are flowing fromthe Fort Liard M-25 well at 35 MMcf/d, and Chevron expects to rampup production by next week to 50 MMcf/d.

Dallas-based Pioneer Natural Resources Co. said it plans toacquire the working interests in 12 non-producing Gulf of Mexicoblocks from a Baker Hughes Inc. subsidiary for $23 million. Theproperties include a one-third interest in the Marathon-operatedCamden Hills natural gas discovery in Mississippi Canyon 348, whichis expected to have gas production in 2002.