Enterprise Products Partners LP partnership affiliates have agreed with Chevron USA Inc. to provide a package of midstream services for Chevron’s natural gas production in the Piceance Basin of northwest Colorado, the companies said Wednesday.
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WSI Sees Late Spring/Early Summer Warmth for U.S.
With the 2006-2007 winter now mostly in the rear-view mirror, traders and meteorologists alike are turning their attention to what kind of temperatures spring will bring to the United States. According to Andover, MA-based WSI Corp., the April through June forecast is expected to average warmer than normal in all locations except for the Pacific Coast states, which could start the natural gas storage injection season sooner than normal, but push electricity loads high enough in June to be bullish for power prices in the Midwest markets.
WSI Sees Late Spring/Early Summer Warmth for U.S.
With the 2006-2007 winter now mostly in the rear-view mirror, traders and meteorologists alike are turning their attention to what kind of temperatures spring will bring to the United States. According to Andover, MA-based WSI Corp., the April through June forecast is expected to average warmer than normal in all locations except for the Pacific Coast states, which could start the natural gas storage injection season sooner than normal, but push electricity loads high enough in June to be bullish for power prices in the Midwest markets.
Industry Brief
PetroSales announced a new oil and gas divestment package including 7,465 net acres under lease in the Anadarko Basin of Oklahoma. Reserves include six oil and gas properties and 14 possible drilling locations, plus facilities including gathering and production equipment. Antares Energy Co. retained PetroSales to conduct a negotiated divestiture of these assets. As an Australian company venturing into the United States, Antares and its partners first acquired the acreage in 2004, drilling four wells including two redrills of undeveloped and unproduced Morrow discoveries. Antares has elected to divest all of its interests, which are in Ellis and Beaver Counties, OK, and Lipscomb County, TX, and focus on its present core area of operations along the Texas Gulf Coast. The combined gross production averaged over the three months ending Dec. 31, 2006, was 1,648 Mcf/d of natural gas and 74 b/d of crude with net production of 536 Mcf/d of gas and 23 b/d of crude. Antares’ net operating income has averaged $118,175 per month. Active zones from the company’s six wells include the Lower Morrow gas sand, the Upper Des Moines oil sand, the Atoka condensate sand and the Tonkawa sand. Additional behind pipe potential has been identified in the Des Moines on two wells, and also 14 possible drilling locations to test the Morrow, Atoka, Des Moines, Cleveland and Tonkawa potential on their acreage. Recent horizontal drilling in the Cleveland formation nearby has yielded flow rate up to 1200 b/d of oil with 3.3 MMcf/d of gas resulting in a significant increase in reserves for this play, PetroSales said. Offers have been requested by March 23. See www.petrosales.com to download an offering summary.
NGI The Weekly Gas Market Report
Provident Acquires Gas-Rich Asset Package in Rainbow, Peace River
Calgary-based Provident Energy Trust last week acquired a package of natural gas-rich prospects in the Rainbow and Peace River Arch areas of northwestern Alberta for an estimated price of C$475.9 million (US$420.4 million) after adjustments. The assets, purchased from a private independent U.S.-based producer, are 90% natural gas and currently produce 33 MMcfe/d (5,500 boe).
Provident Acquires Package of Gas-Rich Assets in Rainbow, Peace River
Calgary-based Provident Energy Trust on Tuesday acquired a package of natural gas-rich prospects in the Rainbow and Peace River Arch areas of northwestern Alberta for an estimated price of C$475.9 million (US$420.4 million) after adjustments. The assets, purchased from a private independent U.S.-based producer, are 90% natural gas and currently produce 33 MMcfe/d (5,500 boe).
House Panel Proposes $1B More in LIHEAP Funds for This Winter
The House Energy and Commerce Committee on Thursday is expected to mark up its draft budget reconciliation package that would provide an additional $1 billion in federal assistance to help low-income customers deal with the anticipated higher energy costs this winter.
Opening Up OCS in Bush Administration’s Hands; Congress Shies Away from Issue
While expanded drilling in federal waters will not be addressed in the Senate Energy and Natural Resources Committee’s budget reconciliation package Wednesday, Chairman Pete Domenici (R-NM) said he will press the Bush administration to use his own powers to open up a portion of the eastern Gulf of Mexico to production activity.
GOP Draft Offers Package of Incentives for Producers, Pipes and LNG Facilities
House-Senate Republican negotiators advocate more deep-water natural gas production in the Gulf of Mexico, faster permitting for producers, an inventory of Outer Continental Shelf (OCS) oil and gas resources, enhanced development of gas pipeline and liquefied natural gas (LNG) facilities and construction of an Alaska pipeline in their latest “discussion draft” of comprehensive energy legislation.
MMS Details Western GOM Sale, Proposed December Package
The Minerals Management Service (MMS) has issued details on lease sales scheduled in the western Gulf of Mexico, Sale 187 that is scheduled in August, and an eastern Gulf of Mexico sale, tentatively set for December. The sales would continue royalty measures designed by the MMS to increase domestic natural gas and oil production.