Proven

Looking to expand both its acreage and proven natural gas and oil reserve base, Oklahoma City, OK-based Chesapeake Energy Corp. has entered into agreements to acquire $510 million of Midcontinent, Permian Basin and onshore Gulf Coast oil and gas assets through recent agreements to acquire privately-owned Concho Resources Inc. for $420 million and two smaller property acquisitions totaling $90 million.

Additions to proved reserves of U.S. natural gas exceeded production by 31% in 2001, and crude oil reserves additions were 121% of production, according to an advance summary released Friday of annual statistics reported by the Energy Information Administration (EIA).

Former Seagull Energy Corp. Chairman and CEO Barry J. Galt has joined Dynegy’s board of directors. “Barry’s proven leadership and experience in the energy industry and his reputation for integrity further strengthens the board during these challenging times in our business sector,” according to Otis Winters, lead director and chairman of the Governance and Nominating Committee. Galt will be named to the board’s Audit Committee and Compensation Committee. Galt led was Seagull Energy (now Ocean Energy Inc.) from 1983 to 1998.and currently is a director of Ocean. Prior to joining Seagull, he was president and COO of The Williams Companies. A graduate of the University of Oklahoma Law School and the University of Oklahoma with a degree in accounting, Mr. Galt also serves on the boards of Friede Goldman Halter Inc., StanCorp Financial Group Inc. and Trinity Industries Inc. Dynegy’s board of directors now numbers 12, including two members representing ChevronTexaco, which will nominate a new director in the near future to replace Glenn Tilton, who resigned as interim chairman of Dynegy on Sept. 2 to become chairman of UAL Corp.

Marathon Oil Co. and Unocal Corp. reported a significant natural gas discovery of about 90 Bcf of gross proven recoverable gas reserves on the Ninilchik Prospect on the Kenai Peninsula, approximately 35 miles south of Kenai, AK. Marathon is operator of the well and the 25,000-acre prospect with a 60% working interest, while Unocal Alaska holds the remaining 40%.

Marathon Oil Co. and Unocal Corp. reported a significant natural gas discovery of about 90 Bcf of gross proven recoverable gas reserves on the Ninilchik Prospect on the Kenai Peninsula, approximately 35 miles south of Kenai, AK. Marathon is operator of the well and the 25,000-acre prospect with a 60% working interest, while Unocal Alaska holds the remaining 40%.

In what it dubs as a “synthesis” of proven operating steps in both eastern and western markets, California’s non-profit electricity transmission grid operator, Cal-ISO, last Wednesday released its draft 2002 Market Design Plan as a starting point that it plans to refine later this month with input from market participants. The plan’s overall objective for what eventually must be a federally approved blueprint is to shrink the grid operator’s real-time market and provide more future wholesale price stability, according to Cal-ISO’s chief architect for the plan.

TradeSpark has proven it is not being left behind in the energy e-commerce battle with EnronOnline and IntercontinentalExchange (ICE). The electronic trading company reported that its energy trading marketplace, which is powered by eSpeed technology, has transacted $100 billion (notional value) in energy products since its launch in October 2000. The phenomenal growth is similar to that seen by EnronOnline in its first year of trading in 2000.

TradeSpark has proven it is not being left behind in the energy e-commerce battle with EnronOnline and IntercontinentalExchange (ICE). TradeSpark reported that its energy trading marketplace, which is powered by eSpeed technology, has transacted $100 billion (notional value) in energy products since its launch in October 2000. The phenomenal growth is similar to that seen by EnronOnline in its first year of trading in 2000.

Acting on the mentality that Tropical Storm Barry was innocent until proven guilty (see Daily GPI, Aug. 3), natural gas futures tumbled lower Friday morning as traders re-initiated shorts that they had covered just 24 hours prior. As of noon (EDT), the September contract was 19.7 cents lower at $2.995. The market then proceeded sideways for most of the afternoon as sellers took a breather to monitor the storm. They were not finished however, and after gaining confidence the storm was not going to re-intensify Friday, sellers conspired for one last push lower. At the closing bell, the September contract was 22.1 cents lower at $2.971.