Weighted

Drilling in natural gas liquids-weighted plays and oil shales are expected to be the focus of domestic exploration and production (E&P) companies in 2011, energy analysts with FBR Capital Markets said Monday.

Onshore unconventional natural gas producer Penn Virginia Corp. said Friday it will concentrate its exploration activities in oily and liquids-rich plays in 2011 and will spend 40% less than it did this year because of a “weak natural gas price environment and outlook.”

Citing “significantly lower than normal system-weighted temperatures,” Northern Natural Gas issued a System Overrun Limitation in all market-area zones for Saturday through Monday.

Natural Gas Exchange Inc. (NGX) has agreed to provide the Alberta Department of Energy with an Alberta gas price index, referred to as the Alberta Market Price (AMP). The AMP is a volume-weighted average of cleared transacted prices for all gas delivered in a calendar month at the NGX Alberta market center on the TransCanada Corp. Alberta System, NGX said. The department will use the AMP to calculate its gas reference price, forming the basis of the royalty obligations for Alberta energy producers. The launch of the new pricing regime is planned for January.

Integrated producer Husky Energy Inc. last week agreed to pay ExxonMobil Canada Ltd. C$860 million for natural gas-weighted properties in Alberta and northeast British Columbia as one of several “cornerstone” strategic growth initiatives intended to accelerate near-term production and reserves growth.

Integrated producer Husky Energy Inc. has agreed to pay ExxonMobil Canada Ltd. C$860 million for natural gas-weighted properties in Alberta and northeast British Columbia as one of several “cornerstone” strategic growth initiatives intended to accelerate near-term production and reserve growth.

Citing increases in forecasted system-weighted temperatures, Northern Natural Gas said a System Underrun Limitation will be implemented in all market-area zones (ABC, D and EF) effective Saturday and running through at least Monday.

Onshore independent Cabot Oil & Gas Corp. last week reported a 41% jump in natural gas-weighted production in 3Q2010 from a year ago and said sequential output was up 18%, exceeding guidance targets.

Onshore independent Cabot Oil & Gas Corp. on Tuesday reported a 41% jump in natural gas-weighted production in 3Q2010 from a year ago and said sequential output was up 18%, exceeding guidance targets.