Paid

A successful hedging strategy and the use of gas storage capacity paid off for South Jersey Gas, which announced plans to cut residential gas customer rates by 25 cents/Dth, while also providing a credit in March 2004 gas bills averaging about $89. The rate reduction, excluding the credit, will save customers about $16 during the remainder of 2004, the company said.

The high average price paid for the gas that now sits in storage facilities across the country will put storage capacity holders in a real tight spot this winter if prices average less than $4.65 at the Henry Hub, according to Scott DePasquale, natural gas analyst at Energy Security Analysis Inc. (ESAI). DePasquale expects storage operators would suffer significant losses at such lower than expected price levels.

The high average price paid for the gas that now sits in storage facilities across the country will put storage capacity holders in a real tight spot this winter if prices average less than $4.65 at the Henry Hub, according to Scott DePasquale, natural gas analyst at Energy Security Analysis Inc. (ESAI). DePasquale expects storage operators would suffer significant losses at such lower than expected price levels.

Ontario Premier Ernie Eves’ controversial plan to cap electricity prices paid by residential and small business consumers at C4.3 cents through 2006 moved one step closer to becoming a reality last week after the province’s energy minister introduced a bill implementing the proposal.

FERC staff concluded in a report to Congress last week that the Commission’s wholesale price caps during the last half of 2001 in the western power market had little or no economic impact because prices of surplus power resold by utilities in the spot market on average were only $35/MWh compared to the cap at $92/MWh.

The cash market paid little heed Wednesday to a winter storm moving into the Southeast and bringing snow to areas that rarely ever see the white stuff. Instead, it concentrated on the futures declines of Monday and yesterday, and the increasing switch to using storage in lieu of buying new supplies, in sending prices down by double-digit amounts at nearly all points.

Anadarko Petroleum Corp. has completed its acquisition ofCalgary-based Berkley Petroleum Corp. after purchasing 100% of thecompany’s shares for C$1.2 billion. Anadarko, based in Houston,paid about C$11.40 per share and assumed about C$400 million ofBerkley’s debt in the deal.

Enerplus Resources Fund, headquartered in Vancouver, paid C$104million for 100% of the outstanding shares of an undisclosedprivate Canadian pension resource corporation that owns producingoil and natural gas properties in Western Canada. The propertiesproduced approximately 2,650 boe/d in a three-month period endingSept. 30. The production included 1,740 bbl/d of crude oil andnatural gas liquids and 9,100 Mcf/d. Average third quarterproduction represents a 22% increase over Enerplus’ third quarteraverage of 12,014 boe/d. Total established reserves are 12,248 Mbblof crude oil and natural gas liquids and 70.7 Bcf, for a total of19,312 Mboe. The deal was funded through a combination of cash fromexisting credit facilities and the assumption of debt, whichtotaled 75% of the purchase price. The rest was financed withEnerplus Trust Units.

Denver’s Tom Brown Inc. paid $16.2 million for an estimated 22Bcf of gas equivalent in reserves, with current net dailyproduction of 8 MMcf of equivalent gas in the Rocky Mountainregion’s Pavillion field. The transaction by the independent energycompany increases its working interest in the Pavillion to 90%, upfrom a previous 50% interest.