Physical natural gas values fell an average of approximately 8 cents Thursday for Friday delivery as the retreat was in full swing prior to the release of Energy Information Administration (EIA) storage data.
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The deal that Chesapeake Energy Corp. made on Monday to sell half its leasehold in the Mississippian Lime was calculated at around $2,500/acre gross, or less than $1,000/acre net, not necessarily the price that the market had been expecting. The lower expected price may be attributed to several things, said analysts: foreign firms getting more savvy about undeveloped leaseholds, the value of the formation, or Chesapeake’s hurry to fix its balance sheet.
Physical natural gas values fell at a majority of points on Monday as early weakness in the futures added a soft tone to the market and the market forces of minimal supportive weather and ample if not burdensome storage prevailed.
Natural gas and oil drilling in Ohio could create 65,000 jobs and add nearly $5 billion to state coffers by 2014, according to an academic study.
Central New York Oil and Gas Co.’s (CNYOG) proposed MARC-I Hub Line Project, which would deliver additional Marcellus Shale and Trenton Black River natural gas to Northeast markets, may not be needed, according to the Environmental Protection Agency (EPA).
Natural gas futures values knee-jerked higher Thursday morning following the news from the Energy Information Administration (EIA) that 135 Bcf was withdrawn from underground storage for the week ending Dec. 31. However, the sentiment was short-lived as February futures declined in the afternoon to finish the regular session at $4.434, down 3.9 cents from Wednesday’s close.