Program

Exploration successes in its deepwater Gulf of Mexico drillingprogram helped to triple reserve replacement to 269% last year forHouston-based Ocean Energy Inc., a positive sign that otherindependents hope to mimic as fourth quarter results are announcedin the next few weeks. Ocean Energy’s over-the-top numbers may notbe matched, but analysts believe independents’ reserve replacementswill be up, averaging around 3%.

The Houston Exploration Co. reported it intends to add moreproduction to its hedging program for November and December of thisyear to help off-set losses accrued during the last two quarters.The company plans to add 40,000 MMBtu/d to November hedgedproduction and 50,000 MMBtu/d in December. Houston Explorationhedged these volumes with swap prices averaging $5.10 per MMBtu inNovember and $5.19 per MMBtu in December. The additional hedgingraises the ceiling price from $3.55 to $4.05 on hedged volumes forthe period. The company said it has not committed to any furtherhedges, but is currently evaluating these opportunities as part ofits risk management policy.

Houston’s Burlington Resources said last week that a tax benefitreinstated by the Federal Energy Regulatory Commission in Septemberwill raise the independent’s earnings in the third quarter by 14cents, beating analysts’ expectations.

Mitchell Energy & Development’s gas production in NorthTexas is soaring. The company announced that its developmentprogram in the Newark East Barnett shale field is exceedingexpectations. In a little more than a year’s time, the company’sgross natural gas production in the Barnett field has doubled to172 MMcf/d. At this rate, Mitchell Energy will meet, and exceed itstarget growth of 15% this year.

Mitchell Energy & Development’s gas production in NorthTexas is soaring. The company announced that its developmentprogram in the Newark East Barnett shale field is exceedingexpectations. In a little more than a year’s time, the company’sgross natural gas production in the Barnett field has doubled to172 MMcf/d. At this rate, Mitchell Energy will meet, and exceed itstarget growth of 15% this year.

PanCanadian Petroleum Ltd.’s newest venture, a web page withinits Internet site dedicated to leasing and farming out some of itsundeveloped oil and natural gas rights in Western Canada, waslaunched last week with its first Call for Bids centered on fourblocks on land that cover 69,000 acres in Alberta.

The California Independent System Operator (California ISO)ordered Pacific Gas & Electric (PG&E) to initiate itslocalized non-firm interruptible program 12- 6 p.m. yesterdaybecause of continued heat Northern California, particularly in theinland areas. In addition, the amount of generation unavailable inthe Bay Area due to repairs increased from 488 MW Wednesday to 800MW Thursday. PG&E said it curtailed 300 MW of interruptiblecustomers beginning at 12:15 p.m. during localized load shedding tohelp stabilize the flow of power on the ISO-controlled transmissionsystems. The California ISO was not under a Stage One Emergencyyesterday, however it issued a Power Watch, urging customersthroughout the state to conserve electricity whenever possible.

BP Amoco for a third time in five years has won the annualbidding for California’s natural gas purchasing program. supplyingabout 120 facilities operated by the California General ServicesDepartment.

BP Amoco for a third time in five years has won the annualbidding for California’s natural gas purchasing program for about120 state operated facilities, it was announced Thursday by thestate top purchasing agency, the California General ServicesDepartment, Sacramento, CA.