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Bonnie and Clyde…er, that is, Tropical Storms Bonnie and Charley were holding up the cash and futures gas markets Tuesday morning as the first reports of Gulf of Mexico production shut-ins began to trickle in. A producer said Gulf Coast prices were jumping by as much as 30 cents or so, while smaller gains were reported elsewhere.

John Guy, deputy secretary of the National Petroleum Council (NPC), said agency members plan to have discussions with several economists who claim to have found flaws in projected consumer savings and in the model used in the NPC’s massive natural gas study, which was released last fall. But Guy said the NPC is unlikely to take any action if serious problems in the report are uncovered.

Except for 90-degree-plus high temperatures in parts of the West, fundamental weather demand remained subpar in most markets Thursday. Yet cash prices managed to solidify and strengthen the mild rally that had begun the previous day.

Range Resources said it completed the purchase of the 50% of Great Lakes Energy Partners LLC that it did not previously own for $200 million plus the assumption of $68 million of Great Lakes bank debt and the retirement of $27 million of oil and gas commodity hedges. Great Lakes, a 50/50 joint venture between Range and Akron, OH-based FirstEnergy Corp., was formed in 1999 to hold their Appalachian oil and gas properties. Range estimates that it is acquiring 255 Bcfe of net proved reserves in the transaction — Great Lakes has a total of about 500 Bcfe of reserves. The purchase will add 35 MMcfe/d to Range’s production, increase its leasehold position by 664,000 net acres and bring it full control of 5,100 miles of gas gathering systems, having a throughput of more than 100 MMcfe/d. The deal makes Range the third largest Appalchian producer. The acquisition increases Range’s proved reserves by 30% to more than 900 Bcfe and increased its production by 20% to more than 210 MMcfe/d. The purchase cost equates to $1.09/Mcfe of proved reserves after the allocation of $12 million of the purchase price to undeveloped leasehold and gathering systems. Range’s production growth target for the second half of 2004 has been increased to 32-34%. A preliminary production growth target of 12-15% has been set for 2005, assuming no further acquisitions.

With natural gas futures bouncing around $6s and even threatening to break the psychological $7 mark, many market watchers are wondering why prices remain elevated despite comfortable storage levels and near record rig counts.

With natural gas futures now in the high $6s and even threatening to break the psychological $7 mark, many market watchers are wondering why prices continue to elevate despite comfortable storage levels and near record rig counts.

An analysis of information collected from natural gas publishers, electronic exchanges, voice brokers, and companies reporting prices produces estimates that price index publishers captured nearly 75% of reportable fixed price transactions for the January 2004 bidweek (for February flow) and 70% of daily transactions during January.

Former Westar Energy CEO David Wittig on Friday was sentenced by U.S. District Judge Julie Robinson to 51 months in federal prison, without parole, to be followed by three years of supervised release, and ordered to pay a $1 million fine after Wittig last summer was found guilty of one count of conspiracy, four counts of making false bank entries and one count of money laundering following a 10-day jury trial.

Former Westar Energy CEO David Wittig on Friday was sentenced by U.S. District Judge Julie Robinson to 51 months in federal prison, without parole, to be followed by three years of supervised release, and ordered to pay a $1 million fine after Wittig last summer was found guilty of one count of conspiracy, four counts of making false bank entries and one count of money laundering.