Swap

Monday’s market was a reversal of the price trends seen Friday:now it was the East getting softer while most of the West reboundedfrom its weekend declines.

Pinnacle West Energy and Houston-based Reliant Energy PowerGeneration, Inc. announced yesterday an agreement to jointlydevelop power plant projects in the Southwest totaling more than2,500 MW of generation in Arizona and Nevada, Pinnacle West Energyannounced today.

EOG Resources and Burlington Resources announced a deal to swapproducing properties with about 40 Bcfe of gas (or 6.5 million bblof oil equivalent) in proved developed reserves. The oil and gasproperties EOG will receive are located in the Permian Basin ofsoutheast New Mexico and West Texas. Burlington will receiveprimarily gas properties centered in its operating areas of theAnadarko Basin in northwest Oklahoma and Hemphill County, TX.

Marking the start of a five-year, $400 million Gulf of Mexico(GOM) exploration and production (E&ampP) assault, Conoco announcedthe exchange of interest in several deep-water blocks with Exxonand the debut of the Deepwater Pathfinder, a drillship capable ofreaching 10,000-foot depths. In the exchange, Conoco acquired 50%of 29 Exxon-owned blocks and Exxon acquired 50% of 30 Conoco-ownedblocks. The undeveloped acreage is in Green Canyon, Garden Banks,Walker Ridge and Keathley Canyon. Terms of the transaction were notdisclosed. With this addition, Conoco holds interest in 295 blocksin the GOM, amounting to 1.2 million net acres.