Plains

Houston-based Plains Exploration & Production Co. (PXP), which up to now has concentrated its exploration efforts in California and along the Gulf Coast, on Wednesday gained entry into the natural gas-rich Piceance Basin of Colorado in an agreement estimated to be worth $946 million with privately held Laramie Energy LLC. The transaction, 97% weighted to gas, gives PXP 55,000 net acres, more than 200 producing wells and more than 3,000 additional potential drilling locations.

As the northern Plains, the Great Lakes and the Northeast continued to suffer through an arctic cold wave with temperatures as low as 42 below zero, the natural gas futures market on Monday recorded modest gains while watching the cash market soar to near record highs at some points (see related story). March natural gas futures finished Monday’s regular session 15.8 cents higher at $7.634 after putting in an overnight high at $8.030.

Global environmental products broker Evolution Markets Inc. of White Plains, NY, continues to expand its two-year-old natural gas trading capabilities with the addition of three new staffers. CEO Andrew Ertel told NGI the firm is well positioned to capitalize on the growing importance of natural gas in a carbon-constrained world.

Global environmental products broker Evolution Markets Inc. of White Plains, NY, continues to expand its two-year-old natural gas trading capabilities with the addition of three new staffers. CEO Andrew Ertel told NGI the firm is well positioned to capitalize on the growing importance of natural gas in a carbon-constrained world.

Weighed down by continuing mild weather in most of the East, with heating load starting to recede again in the Rockies and Plains after a blizzard had passed, and by a January futures drop of more than 31 cents a day earlier, the cash market was in retreat at nearly all points Thursday. Only a couple of flat to slightly higher locations in the still-frigid Rockies avoided the overall softness.

Despite a major snowstorm that slammed the Plains and the Midwest Friday and was bearing down on the East, a number of natural gas futures traders took profits following a week of trading higher. January natural gas futures on Friday put in a low of $8.350 before closing at $8.422, down 42.2 cents on the day but 32.3 cents higher than the previous week’s close on Wednesday (Nov. 22).

The advance of harsh winter weather into the central/upper Plains and Midwest, with the South and Northeast being targeted over the next couple of days, pushed prices higher at nearly all points Wednesday. The expiry spike of 32 cents a day earlier by the December futures contract contributed extra support to the cash market in trading for flows on the last day of November.

Houston-based independent Plains Exploration & Production Co. (PXP) on Wednesday raised its capital spending estimate for the year to $610 million from $526 million, and said most of the additional spending will target the deepwater Gulf of Mexico (GOM).

Norwegian-based Statoil ASA has staked out a bigger portion of the deepwater Gulf of Mexico (GOM) following an agreement with Houston-based Plains Exploration & Production Co. (PXP), in which it agreed to pay PXP $700 million to acquire the working interests in two discoveries and one deepwater prospect.