RIK gas sale to bring in $1 billion in revenues

The US Treasury will gain more than $1 billion in revenues following the latest federal royalty in-kind natural gas sale, the Minerals Management Service said on Mar. 27.

Mar 28th, 2007

Nick Snow
Washington Correspondent

WASHINGTON, DC, Mar. 28 -- The US Treasury will gain more than $1 billion in revenues following the latest federal royalty in-kind natural gas sale, the Minerals Management Service said on Mar. 27.

Ten companies submitted successful bids in the Mar. 8 sale for the 13 contracts involving 137.5 bcf of gas produced from federal leases in the Gulf of Mexico. The gas will be delivered over 7-month or 12-month terms beginning Apr. 1, MMS said.

Winning bidders included Bear Energy LP, Eagle Energy Partners, Coral Energy LP, Louis Dreyfus Energy Services, National Energy & Trade LLC, Williams Power Co., BG Group, Total Gas & Power North America Inc., Fortis Energy Marketing & Trading, and Constellation Energy Commodities Group Inc.

MMS said bidding was strong in the sale, as 20 companies submitted 152 offers for the RIK gas. It said it based its revenues estimate on the current $7.50/Mcf gas price.

Contact Nick Snow at nsnow@cox.net.

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