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  1. Harvest Natural Resources signs natural gas contract with PDVSA for Uracoa field's production

    By OGJ editors HOUSTON, Sept. 26 -- Houston-based Harvest Natural Resources Inc. (HNR) announced a contract to sell natural gas to Venezuela's state oil firm Petroleos de Venezuela SA, accelerating development of Uracoa field in eastern Venezuela. Formerly Benton Oil & Gas Co., HNR has been involved with the South Monagas unit for 10 years since it won rights to participate in Venezuela's marginal field reactivation program (OGJ, June 29, 1992, p. 40). Uracoa field has produced oil for years, but there was no market for the natural gas until now. HNR Pres. and CEO Peter J. Hill said, "We are the first US independent oil and gas company to participate in the emerging Venezuela domestic natural gas market. . .This natural gas contract will also allow us to lower overall unit operating costs due to a higher product throughput and the elimination of expenses associated with reinjection and other natural gas handling costs. . .We will be able to efficiently accelerate oil production without concern for producing excess natural gas." Uracoa field is in the south-central portion of the state of Monagas, about 10 km southeast of Temblador, 40 km southwest of Tucupita, and 125 km southeast of Maturin (OGJ, July 31, 2000, p. 35). PDVSA's contract is with HNR's 80%-owned subsidiary Benton-Vinccler CA, Maturin, Venezuela. Starting in the fourth quarter of 2003, gas will be sold to PDVSA primary for industrial use by aluminum and concrete plants, a Harvest Natural Resources spokesman said. Terms calls for the delivery of up to 198 bcf of natural gas through July 2012 for $1.03 Mcf. This contract prompted HNR's independent petroleum engineer to add 198 bcf of gas reserves to Benton-Vinccler's proved reserves. For HNR, this is a net addition of 158 bcf. HNR plans an initial capital investment of $25 million in 2003 to build a 54 mile pipeline to deliver the natural gas to a PDVSA pipeline, modify the Uracoa field processing plant, and provide other infrastructure. The company also expects to invest an additional $21 million starting in 2004 for a natural gas pipeline, infrastructure, and drilling in Bombal field to sustain the gas production profile through the end of the contract. Gas sales are expected to start at a rate of 40-50 MMcfd in fourth quarter of 2003 and gradually increase to 70 MMcfd in 12-18 months. Initial gas production will come from Uracoa field where 100 wells have been drilled through the natural gas cap. The field is producing 40 MMcfd of associated gas that is being reinjected. Additional oil production initially will come from the 10-12 oil wells in Uracoa field that are presently shut-in because of their high gas-to-oil ratio. Harvest Natural Resources expects to increase oil production by drilling infill wells. Production of the gas cap is projected to provide incremental oil volumes. As a result of this expected increase, Harvest Natural Resources agreed to sell 4.5 million bbl of oil to PDVSA at a price of $7/bbl during the gas contract's duration.

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    Thu, 26 Sep 2002

  2. Kinder Morgan unit signs natural gas contract with We Energies

    Kinder Morgan, through its subsidiary Natural Gas Pipeline Company of America, has extended a number of firm-transportation natural gas agreements with We Energies, formerly Wisconsin Electric Power.

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    Thu, 19 Sep 2002

  3. Peru confirms May 6 auction date for Camisea natural gas contract

    Peru's ProInvestment confirmed that it will hold a public auction Tuesday to transfer the state's Electroperu contract to supply Camisea natural gas to private investors.

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    Mon, 5 May 2003

  4. MARKET WATCH: Crude oil futures gain, natural gas futures slide

    Crude oil futures prices on the New York Mercantile Exchange continued to make gains Mar. 13, while the natural gas contract continued to slide.

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    Fri, 14 Mar 2014

  1. MARKET WATCH: Cold weather predictions push up gas price

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    Tue, 2 Oct 2012

  2. MARKET WATCH: Energy prices decline; WTI-Brent spread widens

    Weak economic data, including disappointing housing sales, weighed down crude oil prices July 22 with front-month crude declining 1.1% in the New York market. Forecasts of cooler weather, meanwhile, dropped the front-month natural gas contract 3%.

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    Tue, 23 Jul 2013

  3. MARKET WATCH: Front-month crude slips in mixed market

    Front-month crude prices slipped lower July 8 in UK and New York markets, but the front-month US natural gas contract jumped 3% with forecasts of higher temperatures in coming weeks, especially in the densely populated Northeast.

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    Tue, 9 Jul 2013

  4. MARKET WATCH: Oil prices continue rally as gas retreats

    Crude prices continued advancing in a mixed market Feb. 8 while the front-month natural gas contract retreated 1% in New York.

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    Thu, 9 Feb 2012

  5. MARKET WATCH: Crude overcomes slump to post modest gain

    Crude futures overcame a price slump in early trading Apr. 2 in the New York market and managed modest gains by the close of the session. The natural gas contract , however, fell 1.4% on concerns cold weather will dissipate next week.

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    Wed, 3 Apr 2013

  6. MARKET WATCH: Natural gas breaks losing streak; WTI continues falling

    The front-month natural gas contract jumped 7% on Feb. 2, ending a 3-day losing streak in the New York futures market. Front-month crude, meanwhile, dropped more than 1% while in London the price of Brent increased, widening its premium over West Texas Intermediate.

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    Fri, 3 Feb 2012

  7. MARKET WATCH: Oil price decline accelerates; gas price flattens

    The recent retreat in oil prices accelerated with front-month crude dropping 1% Aug. 6 in the New York futures market. The front-month natural gas contract traded flat after falling more than 6% last week.

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    Wed, 7 Aug 2013

  8. MARKET WATCH: Front-month gas futures contract rallies

    The front-month natural gas contract rallied May 17 in New York, reclaiming most of its loss from the previous session, after the Department of Energy authorized Freeport LNG Development LP to export 1.4 bcfd of LNG to countries that do not have free trade agreements with the US (OGJ Online, May ...

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    Mon, 20 May 2013

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