Produced

GMX Resources Inc. (GMX) has agreed with PVR East Texas Gas Processing LLC, a subsidiary of Penn Virginia Resource Partners, to process all of its natural gas produced from wells jointly developed with Penn Virginia Oil & Gas LP located in Harrison and Panola counties in East Texas. GMX estimated that processing revenues on the associated natural gas production will increase the current average sales price by approximately $1.20/MMBtu and said it expects a potential $4.5 million revenue increase for FY2008 at current commodity prices. Processing is expected to begin no later than March 1. GMX will gain access for its residue gas to additional pipelines serving the Perryville Hub. GMX said it is negotiating a similar processing agreement to cover the balance of its production in its core area. GMX also said it has finalized a definitive agreement for a proposed acquisition of approximately 3,200 gross (3,000 net) acres of undeveloped leases in Harrison County, TX, increasing its overall net acreage by 18% and operated acreage to 65%.

Reno, NV-based Ormat Technologies Inc. signed a 20-year deal with cooperative utility Highline Electric Association to provide it with 4 MW of power produced from recovered heat from a natural gas pipeline, the company said Monday. Highline serves customers in Colorado and Nebraska.

Waning cooling load in several areas combined with the previous day’s gas futures decline of nearly 23 cents produced losses at most points Wednesday. As they have several times since the beginning of June, the Rockies were conspicuous in going against the grain of the overall cash market with hefty increases up to $1.20.

When does the unconventional become conventional? It’s a question gas shale developers ask because the natural gas produced by the “out of the ordinary” wells in the Barnett, Fayetteville, Woodford, Antrim and Appalachian shales — to name but a few — are becoming more routine every day.

When does the unconventional become conventional? It’s a question gas shale developers ask because the natural gas produced by the “out of the ordinary” wells in the Barnett, Fayetteville, Woodford, Antrim and Appalachian shales — to name but a few — are becoming more routine every day.

Differing weather fundamentals in various regions produced mixed price movement again Thursday, but due to a mini-heat wave developing in the Northeast, there were considerably more gains than on Wednesday when softness pervaded most of the market. However, sources agreed that declines will set in again at most if not all points in Friday’s trading for the holiday weekend.

The Federal Energy Regulatory Commission Thursday unveiled new detailed energy market statistics pages on its website that were produced by its Energy Market Oversight (EMO) division. The pages display charts and graphs of current market fundamentals and detailed regional statistics on natural gas and power supply, demand, flows, gas storage and prices.

The return of industrial demand after a weekend hiatus and modest increases in western cooling load produced a mixed cash market Monday that was dominated by gains of 2-3 cents to a little more than a quarter. Along with several flat points, Monday’s minority losses ran as high as a little more than a quarter.

Talisman Energy Inc. is touting its Alberta Outer Foothills conventional gas development as a “major new natural gas play” that could yield 200 MMcf/d of production by the end of the decade. The company currently is drilling four wells with the expectation that each will produce 6-10 MMcf/d with 6-10 Bcf of recoverable reserves per well.