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What a difference a week can make. For the third time in fourdays the April futures contract tested, but was unable to breakbelow stubborn support in the $2.71-74 area, leaving traders littlechoice but to bid up futures despite warming temperatures andfalling cash prices. The April contract finished up an impressive5.3 cents at $2.847. This advance came on the heels of last week’sprice activity, which saw the April contract twice test equallystubborn resistance at the $2.88-90 level. Aside from one falsebreakout to $2.67, the spot contract has consolidated within the$2.70-90 area since March 1.

To the surprise of absolutely no one, cash prices plunged acrossthe board Tuesday. It was an easy call to make considering theresidual effect of Monday afternoon’s steep screen dive and warmingweather trends that are likely to get even warmer next week,sources said.

Dynegy and Illinova completed their merger to create a newcompany, called Dynegy, with market capitalization of more than $10billion. The company has interests in power plants with more than14,000 MW of domestic generating capacity, average worldwide gassales of more than 10 Bcf/d and more than 1.4 million retailcustomers. The combined company has more than $12 billion in assetsand $22 billion in projected annual revenues from energy operationsthroughout North America and Europe.

The Federal Energy Regulatory Commission last week proposedreinstating its authority to make well determinations so thatqualified producers can obtain Section 29 tax credits for high-costgas wells that were drilled prior to 1993.

The Federal Energy Regulatory Commission yesterday proposedreinstating its authority to make well determinations so thatqualified producers can obtain Section 29 tax credits for high-costgas wells that were drilled prior to 1993.

Just as what could be remembered as one of the most intensehurricanes ever to make landfall on U.S. soil gradually turned tothe north and away from production assets in the Gulf of Mexico,natural gas futures turned south yesterday as traders priced stormconcerns out of the market. After gapping lower to open at $2.69the October contract never looked back, tumbling 14.5 cents on theday to finish at $2.636.

The $2.5 billion acquisition of Poco Petroleums Ltd. of Calgarywould give Houston-based Burlington Resources Inc. (BR) a Canadianpresence and make the gas-focused company the third largest holderof gas reserves in North America. BR already ranks first among U.S.independent producers in terms of proved U.S. reserves. Late Mondaythe companies announced the stock and debt deal.

After years of struggling in recent years to make ends meet in the exploration and production business and indications last December that it was examining alternatives, Enron finally decided to call it quits last week and cut its ties to its production subsidiary, Enron Oil & Gas (EOG). The announced plan would establish EOG as a widely held public company that will be independent of Enron. Analysts and industry personnel applauded the deal, pointing to divergent corporate strategies.

Two would go by sea, and now one would travel on land, makingfor three brand new pipeline projects targeting the Floridapeninsula and the state’s substantial growth in power generationgas demand.