Louis

Forest Oil Corp. of Denver reported a significant gas discoveryat High Island 116 in the Gulf of Mexico. High Island 116 is 54.75%owned and operated by Forest and 45.25% owned by Louis DreyfusNatural Gas Corp. Initial production from the recently drilled B-2well is expected in November. Forest Oil is engaged in theacquisition, exploration, development, production and marketing ofgas and crude oil in North America. Forest’s principal reserves andproducing properties are in the United States in the Gulf ofMexico, Louisiana, Texas and Wyoming and in Canada in Alberta andthe Northwest Territories.

James F. Whitesides has been named president of Ameren Corp.’strading and marketing subsidiary, AmerenEnergy in St. Louis, movingup from vice president of energy trading. Whitesides had previouslybeen in forward and financial trading with Cinergy Power Marketingand Trading.

Trigen Energy began construction of a $13.5 million, 15 MWcombined heat and power plant to provide 95% of the steam needs ofTrigen’s 135 St. Louis steam system customers. The plant consistsof two 5.2 MW solar turbines and 4.6 MW of back pressure steamturbines from Trigen Ewing.

Louis Dreyfus Natural Gas received a payment of $40 million forearly termination of a long-term, fixed-price gas sales contract.The terminated contract, which was with an independent powerproducer, covered 4 Bcf/year of gas which would have been deliveredthrough 2006. The total volumes of 33 Bcf, covered by thisterminated contract, are now available to be sold to othercustomers or in the spot market. Proceeds will be used to reducebank debt. The payment monetizes a portion of the value of Dreyfus’portfolio of long-term, fixed-price contracts. The value of thesecontracts is not reflected on its balance sheet. In the aggregate,the remaining contracts have a present value (discounted 10%) inexcess of market of about $125 million.