Rooms

While the shock of the probable demise of Enron monopolized conversation in all trading rooms (see related story), swing prices continued to shoot higher Wednesday as winter storms raged through much of the nation’s midsection and parts of the West. Cold temperatures were prevalent almost everywhere except in the Southeast and Mid-Atlantic states.

From FERC hearing rooms to California courtrooms the lawyers andregulators are huddling to bring some order to the chaotic westernenergy markets and address the muddled future of California’s onceomnipotent-appearing private sector utilities. Energy industry,political and regulatory heavyweights are mixing it up, includingthe closed-door FERC-called session in Washington, DC.

Canadian 88 Energy Corp. said it has opened data rooms to allowpotential acquirers access to confidential information. TheCanadian exploration and production company put itself up for salein October after Duke Energy rescued it by buying a controllingstake. On Oct. 10, the company announced that its board hadestablished a special committee to review strategic alternativesand identify opportunities to enhance shareholder value. The boardsaid strong fundamentals for high quality natural gas assets andprospects are not reflected in current stock price valuations andare more likely to be realized through such a strategic reviewprocess. Canadian 88 stated several reasons for initiating thereview process, including high gas prices, large working interestsin significant company-operated gas fields, an inventory ofexcellent gas exploration prospects, the world class potential ofthe company’s East Coast holdings, imminent expiration of currentgas hedges and tax pools in excess of $400 million.