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PanCanadian Petroleum Ltd. made a potentially sizable gasdiscovery offshore Nova Scotia about 25 miles from Sable Island. Inthe past year, the company has drilled two exploration wells intogeological zones under the Panuke oil field, about 155 milessoutheast of Halifax. During testing, each well flowed at more than50 MMcf/d, the maximum capacity of the testing equipment. Thewells, PP-3C and PI-1B, intersected net pay of more than 230 feetand 100 feet, respectively.

PanCanadian Petroleum Ltd. made a gas discovery offshore NovaScotia. In the past year, the company has drilled two explorationwells into geological zones under the Panuke oil field, about 155miles southeast of Halifax. During testing, each well flowed atmore than 50 MMcf/d, the maximum capacity of the testing equipment.The wells, PP-3C and PI-1B, intersected net pay of more than 230feet and 100 feet, respectively.

Avista Advantage and Strategic Energy LLC (SEL) made an allianceto pursue new business. SEL acquires the right to supply energycommodity services to Avista Advantage customers, and AvistaAdvantage acquires the right to provide SEL customers with its billconsolidation and energy management services.

While winter weather finally made an appearance in the Northeastand Midcontinent last Friday, major price movement in most marketareas did not. Sources in the Midcontinent and Northeast citedweather forecasts calling for major temperature warm-ups for thisweek as the major reason for the market’s inability to rise.

Pioneer Natural Resources Co. of Dallas, Mariner Energy ofHouston, CNG Producing of New Orleans and Westport Oil and Gasparticipated in a deep-water Gulf of Mexico discovery on theDevil’s Tower Prospect in Mississippi Canyon 773, about 140 milessoutheast of New Orleans in 5,610 feet of water. A Pioneerspokesperson said the partners agreed to not disclose the type ofhydrocarbons discovered.

Apache Corp. announced a Canadian gas discovery that tested at31 MMcf/d British Columbia on acreage acquired from Shell Canadalate last year.

Pioneer Natural Resources Co. of Dallas, Mariner Energy Inc. ofHouston, CNG Producing Co. of New Orleans and Westport Oil and GasCo. participated in a deep-water Gulf of Mexico discovery on theDevil’s Tower Prospect in Mississippi Canyon 773, about 140 milessoutheast of New Orleans in 5,610 feet of water. A Pioneerspokesperson said the partners agreed to not disclose the type ofhydrocarbons discovered.

Equitable Resources completed the previously announcedacquisition of the Appalachian production assets of Statoil Energyfor $630 million. The deal makes Equitable by far the largestproducer in the Appalachian basin with 2.2 Tcf of proven reservesand 12,600 gas and oil wells. Equitable said the acquisition wouldbe immediately accretive to earnings. “The addition of these assetsand resources to Equitable’s Appalachian business represent ahigh-value, low-risk opportunity for improving the overall qualityand efficiency of our production assets,” said Murry S. Gerber,Equitable’s president and CEO. “The benefits of this acquisition gobeyond making Equitable the leading gas supplier in the Appalachianbasin. We now have a dual platform for growth and increasedprofitability by ‘high-grading’ our total Appalachian portfolio.”Statoil’s production assets are contiguous to Equitable’sAppalachian properties and consist of 1.2 Tcf of proven gasreserves and 6,500 natural gas wells in West Virginia, Kentucky,Virginia, Pennsylvania and Ohio.

Seeking greater operating flexibility in what is expected to bea more fluid California natural gas market following industryrestructuring, Occidental Petroleum has started work on a $9million, 12-mile, 16-inch gas pipeline out of Elk Hills to the eastof the massive reserve. It will interconnect with Pacific Gas andElectric’s transmission line swinging north from the Arizonaborder, providing the first interconnection between Four Cornerssupplies and PG&E when combined with earlier Elk Hillsconnection work done by Oxy.