Locations

A majority of points registered double-digit gains Monday with Northeast locations leading the advance. Expected late spring New England heating loads prompted higher quotes, but a strong screen placed a bullish tone to nearly all delivery points. Futures took much of their cue from longer term weather forecasts showing an axis of warm temperatures engulfing the Midwest and East.

MDU Resources Group Inc., which has five rigs in operation in the Bakken Shale and holds 124,000 net leasehold acres in the play, said subsidiary Bitter Creek Pipelines LLC has paid $66 million for a 50% interest in Whiting Oil and Gas Corp.’s natural gas and oil midstream assets near Belfield, ND.

Cash market natural gas prices were mostly flat Tuesday with strength at a few Northeast locations offsetting softer California and Texas markets. California consumers were the beneficiaries of the return to service of a major pipeline from the Rockies, and weather forecasts for Wednesday called for 60s in the Northeast and Midwest, and 80s in the South and West. At the close of futures trading the June contract had risen 6.9 cents to $2.500 and July had added 6.3 cents to $2.568. June crude oil slipped 80 cents to $93.98/bbl.

During the first quarter Pioneer Natural Resources Co. grew production by 10,000 boe/d to 147,000 boe/d, a 7% increase from the year-ago period, thanks to growth in its three core liquids-rich assets in Texas: the Spraberry field, the Eagle Ford Shale and the Barnett Shale Combo play.

Constitution Pipeline Co. LLC, a development launched in February by frequent partners Williams Partners LP and Cabot Oil & Gas Corp., on Tuesday executed precedent agreements for the proposed 121-mile natural gas pipeline, designed to connect Marcellus Shale production in northeastern Pennsylvania to Northeast markets by spring 2015.

Houston-based Contango Oil & Gas Co., which up to now has trained its sights on Gulf Coast locations, last week joined with some savvy financial partners to invest in a key Encana Corp. resource play, the Jonah field, one of the largest natural gas fields in the United States and the third largest oilfield in Wyoming.

Houston-based Contango Oil & Gas Co., which up to now has trained its sights on Gulf Coast locations, on Monday joined with some financial partners to ante up to $380 million in a key Encana Corp. resource play, the Jonah field, one of the largest natural gas fields in the United States and the third largest oilfield in Wyoming.

Cash market quotes nationally were mostly unchanged, but prices declined sharply at New England points and made gains at Midwest locations. A smaller-than-expected inventory draw of 78 Bcf prompted initial futures declines, but traders reconsidered and prices staged a modest advance on the day. At the close March had risen 2.9 cents to $2.477 and April had improved 3.8 cents to $2.636. March crude oil rose $1.13 to $99.84/bbl.

Generally minor softness has lasted only one day this week so far, as a large majority of locations resumed climbs Thursday that once again were mostly in single digits. Patches of snow and rain stretched from the Rockies to the Northeast and snow was even expected to reach the panhandles of Oklahoma and Texas by Friday. Subfreezing lows will become more frequent at least through Friday before many areas begin to warm again.