Region

Berry Petroleum Co. is paying about $5 million to gain a 50% working interest in 345,000 prospective acres in the Denver Basin of eastern Colorado, western Kansas and southwestern Nebraska from Bill Barrett Corp. The two companies plan to jointly explore and develop the shallow Niobrara gas assets on the acreage, which expands the program Berry started late last year in the area.

Rocky Mountain region producers may be entering a golden age in which prices for their production are nearly equal to what producers in neighboring regions are able to bring home. Some price differentials have tightened significantly because for the first time in many years there actually appears to be more takeaway pipeline capacity out of the Rockies than there is supply to fill it.

Rocky Mountain region producers are enjoying a new golden age in which prices for their production are nearly equal to what producers in neighboring regions are able to bring home. Price differentials have tightened significantly because for the first time in many years there actually appears to be more takeaway pipeline capacity out of the Rockies than there is supply to fill it.

The expected arrival of more liquefied natural gas in the Gulf Coast region and improving market conditions have prompted the launch of another Gulf Coast gas storage project. Port Barre Gas Storage (PBGS) is planning to develop a high deliverability salt dome storage field in St. Landry Parish, LA, to provide service in the Gulf Coast market. The 10.5 Bcf facility is expected to be developed in three phases with the first 3.5 Bcf of working capacity available in the fourth quarter of 2006.

The expected arrival of more liquefied natural gas in the Gulf Coast region and improving market conditions have prompted the launch of another Gulf Coast gas storage project. Port Barre Gas Storage (PBGS) is planning to develop a high deliverability salt dome storage field in St. Landry Parish, LA, to provide service in the Gulf Coast market. The 10.5 Bcf facility is expected to be developed in three phases with the first 3.5 Bcf of working capacity available in the fourth quarter of 2006.

A Kinder Morgan gas pipeline official recently indicated that the Rocky Mountain region could be close to having yet another major export pipeline in place in the next few years. Kinder Morgan’s Advantage project has only 40,000 Dth/d of capacity remaining unsubscribed along with some winter-only capacity, out of a total of 554,000 Dth/d. The company also has launched plans for a new gas storage field in southern Wyoming.

A Kinder Morgan gas pipeline official last week indicated that the Rocky Mountain region could be close to having yet another major export pipeline in place in the next few years. Kinder Morgan’s Advantage project has only 40,000 Dth/d of capacity remaining unsubscribe along with some winter-only capacity, out of a total of 554,000 Dth/d. The company also has launched plans for a new gas storage field in southern Wyoming.

EnCana Corp. has filed a plan with the Bureau of Land Management (BLM) to add 1,200 natural gas wells in a 14,000 acre region of the Piceance Basin. The plan calls for up to 125 well pads and 1,240 gas wells.

Northeast citygates were peaking above $10 again Friday as the region entered another period of intense cold. But other than Northeast upticks ranging from a little less than 20 cents to about $1.80, gains were few and far between in the rest of the market. Most points fell from about a nickel to a quarter.