Mexico

With fears swirling over the possible one-two punch to Gulf of Mexico production from Tropical Storms Cindy and Dennis, August natural gas futures found themselves 30.4 cents higher at $7.475 by the end of the regular trading session Tuesday.

Houston-based Spinnaker Exploration Co. said Tuesday it has discovered natural gas in the Gulf of Mexico (GOM) about 100 miles southeast of Venice, LA. The field, in Mississippi Canyon Block 961, is situated 12 miles west-southwest of the future platform site of the Independence Hub project, and Spinnaker expects to ramp up production in 2007 when the hub is completed.

Energy Resource Technology Inc. (ERT), a subsidiary of Houston-based Cal Dive International Inc., said Monday it has acquired “essentially all” of Murphy Oil Corp.’s Gulf of Mexico Shelf properties for $200 million.

EnCana closed its $2 billion sale of Gulf of Mexico assets to Statoil, netting $1.45 billion after taxes and other adjustments, the company said Thursday, noting that its total investment in the assets was only $540 million. EnCana said its previously-announced divestiture of its Ecuador assets and select conventional producing properties in Western Canada should go through later this year.

Rep. Ernest Istook (R-OK) late Monday planned to offer an amendment to the House Rules Committee to repeal the moratorium on drilling in the eastern Gulf of Mexico when oil imports reach two-thirds of U.S. consumption, a spokeswoman said.

ScottishPower subsidiary PPM Energy announced the purchase of the 4.5 Bcf Grama Ridge gas storage field in southeastern New Mexico from ConocoPhillips last week and launched plans for a storage expansion at Grama Ridge and at PPM’s proposed Waha storage field, which is currently on file at the Texas Railroad Commission.

ScottishPower subsidiary PPM Energy announced the purchase of the 4.5 Bcf Grama Ridge gas storage field in southeastern New Mexico from ConocoPhillips on Thursday and launched plans for a storage expansion at Grama Ridge and at PPM’s proposed Waha storage field, which is currently on file at the Texas Railroad Commission.

Albuquerque-based PNM Resources, holding company for Public Service Company of New Mexico, Thursday announced first-quarter earnings increased 22% over the same period last year, attributing the rise to a combination of smooth operating performance and “steady” growth in customers for both electricity and natural gas distribution services. First quarter net income was $30.5 million, an increase of $5.7 million over the first quarter of 2004, the company said. Diluted earnings-per-share increased 22% to 50 cents/share, the company said. Nonfuel operating and maintenance expenses declined by $2.2 million in the quarter; wholesale electricity profits jumped 57%, and electric and gas distribution utility loads increased about 2%, PNM said in announcing its first quarter results. CEO Jeff Sterba said PNM’s proposed acquisition of Texas-based TNP Enterprises and its subsidiaries remained “on track.”

Focusing its first quarter efforts in South Texas and Southeast New Mexico, Houston-based Edge Petroleum Corp. said Wednesday that it achieved record production, reporting 4.2 Bcfe, or about 46.7 MMcfe/d. The output is 35% higher than 1Q2004 and 31% higher sequentially from 4Q2004. Of the total output, 76% was natural gas, 12% natural gas liquids and 12% oil and condensate. Edge’s production exit rate at March 31 was 46.3 MMcfe/d. Edge drilled and logged six wells in 1Q2005, all of which were successful, the company said. Edge currently has four wells drilling and has plans to spud another 12 to 17 wells during the second quarter.