Simple

Some traders have said they adhere to a simple philosophy: when everyone is going in one direction, you should head the other way. That seemed somewhat applicable in the cash market Wednesday. With consensus opinion firmly established that prices had little to no chance of rallying anytime soon, what does the market do? It sees prices rise, often fairly strongly, at a solid majority of points.

Southern Power, a subsidiary of Southern Co., has signed a purchase and sale agreement with Constellation Energy to purchase a 680 MW, dual-fueled simple-cycle generating plant in Cocoa, FL, for $206 million.

Promax Energy entered into a farmout joint venture agreement with Trident Exploration Corp. of Calgary to develop coalbed methane (CBM) under its Cessford properties in Alberta. Terms of the joint venture include a 12-well pilot program with all costs of the test borne by Trident, which will earn the right to commence a commercial drilling project on customary oil and gas industry terms. CBM production has become a significant and rapidly growing source of natural gas supply in the U.S., and interest is increasing in the CBM potential of Western Canadian coals. The Promax acreage hosts both shallow and deeper coal seams of interest. “The extensive and contiguous Promax land position, coupled with its database of logs, samples and seismic lines, will allow Trident to move rapidly in identifying the most prospective areas and starting a pilot project,” said Trident President Jon Baker. “Access to the Promax gas infrastructure and drilling economies will enhance the commercial potential for CBM development.” Promax is focused on natural gas in southeastern Alberta. It is well positioned to play a key role in the development of 500,000 acres of shallow gas in the Cessford area of Alberta, including platform production from the Medicine Hat/Milk River zones and potential higher productivity from up to 15 other horizons.

Higher prices, pure and simple, are leading the way for record earnings by several North American independents in the first quarter, including Burlington Resources Inc., which saw its earnings more than quadruple. Occidental Petroleum Corp. also set records for the quarter, reporting earnings up 90%, which it said were propelled by natural gas demand in California.

Dynegy Inc. has started full-scale operations at the RockinghamPower Plant, a simple-cycle generating facility in RockinghamCounty, NC. The 800 MW plant, developed in just 12 months, is thethird generation facility Dynegy has put on line this summer.

Dynegy Inc. has started full-scale operations at the RockinghamPower Plant, a simple-cycle generating facility in RockinghamCounty, NC. The 800 MW plant, developed in just 12 months, is thethird generation facility Dynegy has put on line this summer.