Against the backdrop of high levels of natural gas storage injections over the past two months and lower demand levels, the Energy Information Administration (EIA) recently projected that average natural gas wellhead prices will decline this spring and summer, averaging $4.14/Mcf. Although this latest projection represents a significant downward revision of about 50 cents/Mcf from EIA’s previous outlook, the Department of Energy agency continues to believe that it may be a while before wellhead prices return to the level of under $2.50/Mcf seen a little more than one year ago.
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Small producer Canadian Superior Energy launched a takeover bid for Canadian 88 Energy Corp. last week. The stock swap deal would put Canadian 88’s maverick former CEO Greg Noval back in control of the firm. Noval is offering 2.75 Canadian Superior shares for each share of Canadian 88, which he left last year after a change of control. The deal is worth about C$4.95 a share, or C$700 million (US$451 million).
Small oil producer Canadian Superior Energy announced late yesterday a takeover bid for Canadian 88 Energy Corp. The stock swap deal would put Canadian 88’s maverick former CEO Greg Noval back in control of the firm.
Another initial public offering will make a splash in the market this week, and this one may have as much steam as Aquila Energy’s, launched last week (see Daily GPI, April 25). Reliant Resources Inc., the unregulated business unit of Houston-based Reliant Energy Inc. on Friday raised its estimated price range for its IPO by $2, putting the stock price in the $28-30 per share range.
Hunt Oil Co. of Canada has agreed to pay C$176 million (US$115million) for a portion of Canadian 88 Energy Corp.’s Albertanatural gas properties to expand its natural gas production in theregion. The acquisition includes all of Canadian 88’s interests inthe Caroline “B” pool natural gas project in west central Albertaand the Waterton gas property in southwestern Alberta.
As an interim measure, the Cal ISO board last week approved (ona 13-10 vote) a load differentiated price cap that was promoted bya consumer advocate representative on the badly splinteredstakeholder board. The action drew swift criticism from generators.
Much of the price hemorrhaging that dominated the latter half oflast week’s cash market was well on its way to being stanchedMonday. Eastern points were only a tad softer, with few falling anymore than about a nickel, and most western points realized small tomoderate gains.
Midcoast Energy announced that its Mexican pipeline affiliate,Midcoast del Bajio, which is jointly owned with Associated PipeLine Contractors, has been awarded a 10-year natural gastransportation contract to serve the General Motors de Mexico’sSilao Plant. It also has signed a deal to serve the FIPASIIndustrial Park, which includes facilities owned by American Axle,Weyerhaeuser Co. and Avintech. All the facilities are located inthe Bajio region of central Mexico near the city of Leon,Guanajuato, where Midcoast del Bajio is building a 59-mile, 16-inchdiameter pipeline.
AGL Resources’ fiscal third quarter marks the third consecutive quarter the company has exceeded analysts’ predictions. The results also signify the first steadily increasing earnings trend after becoming the first gas utility to completely exit the gas merchant function.
AGL Resources’ fiscal third quarter marks the third consecutivequarter the company has exceeded analysts’ predictions. The resultsalso signify the first steadily increasing earnings trend afterbecoming the first gas utility to completely exit the gas merchantfunction.