natural gas prices

Sabine Oil & Gas Corp. said it will not file its annual Form 10-K on time, but it expects to file it by March 31. The Houston-based company said it also does not plan to host a conference call to discuss 4Q2014 and full-year 2014 earnings. Sabine also said it has retained financial advisors Lazard and legal advisors Kirkland & Ellis LLP to advise management and the board of directors on strategic alternatives related to its capital structure.

Physical natural gas for next-day delivery was largely mixed in Monday’s trading, but at the end of the day overall prices were a dime higher at $2.53 as gains in the Northeast, Mid-Atlantic, Midwest, and Rockies easily outpaced lower quotes in the Gulf region.

Natural gas basis markets remained in a lull for the second week of March, with prompt-month prices shifting less than five cents at most market hubs, amid forecasts for mostly mild weather across the United States.

ThePennsylvania Department of Environmental Protection(DEP) has reversed its approval of an underground injection well in Indiana County. The agency approvedPennsylvania General Energy’s (PGE) permit to operate the well late last year after theU.S. Environmental Protection Agency(EPA) signed off on its plan to convert an old natural gas well to accept waste generated during the hydraulic fracturing (fracking) process. The EPA has primacy over Class II injection wells in the state, but DEP was also required to approve the conversion plan. Residents in Grant Township, where a ban on injection wells passed last year, filed an appeal. DEP said the well violated regulations in the state’s Clean Streams Law and added that it had not taken those into consideration when it approved the permit. PGE has filed a federal lawsuit against the town’s ban, which is expected to be heard next month.

The Bureau of Land Management (BLM) announced seven new oil and gas leases within the National Petroleum Reserve in Alaska (NPR-A). The leases are the result of a BLM oil and gas lease sale held Nov. 19 that generated $658,978 in bids. The seven tracts encompass 66,650 acres. The new leases are held by ConocoPhillips Alaska Inc./Anadarko E&P Onshore LLC, ConocoPhillips Alaska Inc. and Nordaq Energy Inc. BLM Alaska has held 10 lease sales since 1999, with bids totaling more than $261 million. The new leases bring the number of oil and gas leases in the NPR-A to 212, covering more than 1.76 million acres. Tracts available for lease are consistent with the NPR-A Integrated Activity Plan and a Record of Decision signed in February 2013. BLM Alaska is preparing to solicit the industry soon for nominations for the 2015 NPR-A lease sale. Senate Energy and Natural Resources Committee Chairman Lisa Murkowski (R-AK) said the state has doubled the frequency of leasing in the NPR-A during comments a committee hearing in Washington, DC (see Daily GPI,Feb. 24). She has often criticized the Obama administration for not opening more of her state’s lands to oil and gas exploration. More information about oil and gas leasing within the NPR-A can be found atwww.blm.gov/ak.

In a story about a proposal by Sempra Energy’s California utilities for new intrastate natural gas transmission capacity (see Daily GPI,March 10), a spokesperson for Sempra’s Southern California Gas Co. was misidentified as a spokesperson for Sempra Energy. One pipeline project is being considered, not two, as the article suggested. The permitting process for the project has been restarted by the California Public Utilities Commission.

Weekend and Monday natural gas proved to be a tough sell in Friday’s trading as major population centers were expected to see temperatures by Monday reach levels 15 to 20 degrees above seasonal norms.

Market bears were draining 3-pointers left and right in trading for the week ended March 13. Of all market points tracked by NGI, only two made gains and those were for a nickel or less. The NGI Weekly Spot Gas Average swan-dived $1.12 to $2.49.

Natural gas futures rose and then quickly retreated Thursday morning following the release of government storage figures showing inventory drawdowns somewhat greater than what traders were looking for. For the week ended March 6, the Energy Information Administration (EIA) in its 10:30 a.m. EST release reported a decrease of 198 Bcf.