Prospects

Industry emerged as a winner from two landmark decisions by the Supreme Court of Canada on a legal gray area, aboriginal relations, which has clouded the future of the Mackenzie Gas Project.

Chesapeake Energy said Tuesday it signed a three-year joint development agreement with a new company formed by the management of Greystone Petroleum LLC, which was purchased by Chesapeake in May 2004 for $425 million (see Daily GPI, May 12). The new agreement gives Chesapeake the exclusive right to acquire a 50% interest in any of the new company’s (Greystone Oil & Gas LLP) future oil and gas projects.

Chesapeake Energy said Tuesday it signed a three-year joint development agreement with a new company formed by the management of Greystone Petroleum LLC, which was purchased by Chesapeake in May 2004 for $425 million (see Daily GPI, May 12). The new agreement gives Chesapeake the exclusive right to acquire a 50% interest in any of the new company’s (Greystone Oil & Gas LLP) future oil and gas projects.

As prospects for a quick infusion of new reserves from the Arctic fade, Canadian expectations of natural gas prices are on the rise and markets are encouraging them to believe they are right with their diagnosis that supplies are tight.

As prospects for a quick infusion of new reserves from the Arctic fade, Canadian’s are expecting higher gas prices and markets are encouraging them to believe they are right with their diagnosis that supplies are tight.

Anadarko Petroleum Corp. on Friday said it will sell about 30% of its worldwide fields — all located onshore in the United States — for $850 million in cash and interests in two oil and natural gas fields in Wyoming to a private Dallas-based producer. Although the sale involves a large amount of acreage, the assets accounted for only 4% of year-end 2003 reserves and 7% of current production.

Anadarko Petroleum Corp. on Friday said it will sell about 30% of its worldwide oil and gas fields — all located onshore in the United States — to a private Dallas-based producer for $850 million in cash plus interests in two oil and natural gas fields in Wyoming. Although the sale involves a large amount of acreage, the assets accounted for only 4% of year-end 2003 reserves and 7% of Anadarko’s current production.

With prospects of hotter weather in several regions before the workweek begins Tuesday, the market Friday was stronger than one might have expected for a long holiday weekend. Most points were within 2-3 cents up or down, but some locations jumped nearly a dime while others fell as much as 20 cents.

Forest Oil Corp. increased its North American oil and gas prospects last week after announcing it will purchase of The Wiser Oil Co., based in Dallas, for $330 million. Wiser, which produced 64 MMcfe/d in the first quarter, splits its exploration and production focus between Canada and the Permian Basin, and last year, its estimated proved reserves totaled 191 Bcfe, of which 51% were natural gas.