Wishes

The North Carolina Senate voted Wednesday to go against the wishes of Democratic Gov. Bev Perdue, overriding her veto of an energy bill that would open the door to offshore natural gas drilling.

Canadian Superior Inc. said it plans to buy Challenger Energy Corp. in a friendly transaction worth an estimated C$78 million (US$69 million) including debt. The merger would give back to Canadian Superior a stake in a promising Trinidad natural gas project that it has been developing for several years. Calgary-based Canadian Superior is undergoing a restructuring after filing for bankruptcy earlier this year (see NGI, May 4). Under the merger agreement, Canadian Superior plans to issue 0.51 share, or C$0.435, for each Challenger share. The transaction would include the assumption of Challenger’s C$54 million in net debt. The transaction is part of a plan by Canadian Superior to restructure under Canada’s Companies’ Creditors Arrangement Act. As part of the restructuring process Canadian Superior agreed to sell to UK-based Centrica plc a 45% interest in Block 5(c) offshore Trinidad, for US$142.5 million in cash (see NGI, June 8). The block is operated by BG Group, which holds a 30% stake, and Challenger, which still has a 25% stake. The discovery, made in 2005, may hold up to 5 Tcf (see NGI, Aug. 18, 2008). The combined company would produce an estimated 3,050 boe/d, 85% weighted to natural gas.

Against the wishes of the state’s attorney general, the Illinois Commerce Commission (ICC) last week approved rate increases for Peoples Gas and North Shore Gas and allowed the utilities to institute a decoupling mechanism to recover fixed costs through nonvolumetric charges.

Against the wishes of the state’s attorney general, the Illinois Commerce Commission (ICC) Tuesday approved rate increases for Peoples Gas and North Shore Gas and allowed the utilities to institute a decoupling mechanism to recover fixed costs through nonvolumetric charges.

Acceding to the wishes of the energy industry and consumers, House Republicans on Friday said they planned to take the Senate’s narrower offshore drilling legislation to the floor for a vote Tuesday. This ends months of divisive negotiations between House and Senate lawmakers over how to reconcile their vastly different bills that seek to open more of the offshore to oil and natural gas drilling.

Acceding to the wishes of the energy industry and consumers, House Republicans on Friday said they planned to take the Senate’s narrower offshore drilling legislation to the floor for a vote Tuesday. This ends months of divisive negotiations between House and Senate lawmakers over how to reconcile their vastly different bills that seek to open more of the offshore to oil and natural gas drilling.

Apparently not wanting to try to build an energy complex against the wishes of the local community, San Jose, CA-based Calpine Corp. announced late Wednesday it was dropping its plans for developing a liquefied natural gas (LNG) terminal and other facilities in the far northern end of California in Humboldt Bay. Calpine did not say so, but it is assumed the Eureka City Council turned down the energy developer’s request for an exclusive right to assess a site on part of a little used airport.

High energy prices and strategic actions initiated since 1997have added $1.25 per share in recurring earnings annually forOccidental Petroleum and allowed the company to pay down asignificant amount of debt this year, said CEO Ray R. Irani at thecompany’s meeting last week with financial analysts in New York.But its stock price remains in the basement at about $20/share wellbelow that of many of its peers.

High energy prices and strategic actions initiated since 1997have added $1.25 per share in recurring earnings annually forOccidental Petroleum and allowed the company to pay down asignificant amount of debt this year, said CEO Ray R. Irani at thecompany’s meeting yesterday with financial analysts in New York.But its stock price remains in the basement at about $20/share wellbelow that of many of its peers.