Biotechnology was first applied in medicine, then farming. Today, dozens of lifesaving drugs are on the market, while many crops are genetically engineered to withstand weed killers.

Now, a 2-year-old push to develop alternative fuels is driving biotechnology's growth into the industrial sector.

Thousands of corporate executives and scientists gather this weekend in Orlando, Fla. for an industry trade show specifically aimed at touting biotechnology's so-called third wave, industrial applications. The word on everyone's lips: ethanol.

After decades of unfulfilled promise and billions in government corn subsidies, energy companies may finally be able to produce ethanol easily and inexpensively thanks to breakthroughs in biotechnology.

Most of the 5 billion gallons of ethanol produced annually in the United States is still made by fermenting corn, but the crop is expensive and its use in biofuels cuts into the nation's food supply. So the Canadian biotech company Iogen Corp. has developed a method for deriving ethanol from a variety of plants including wheat, oats and barley. Others are genetically engineering microbes to produce enzymes that will convert the cellulose in crop waste, wood chips and other plants into ethanol.

President Bush helped breathe new life into this once-sleepy biotech sector by touting the need to ramp up production of this "cellulosic ethanol" in his last two State of the Union speeches.

The president wants to reduce the country's oil consumption by 20 percent within 10 years and he sees alternative fuels as the way to get there. Bush visited the North Carolina biotechnology company Novozymes Inc. last month to underscore the industry's vital role in accomplishing that ambitious goal.

Government agencies led by the Department of Energy are sinking millions into biotech projects aimed at making ethanol more efficiently. And startups dedicated to turning plants into fuel have captured the fancy of deep-pocketed venture capitalists like Vinod Khosla. The billionaire co-founder of Sun Microsystems Inc. is investing hundreds of millions of dollars in green technology and will be a featured speaker this year at the World Congress on Industrial Biotechnology & Bioprocessing.

Other heavy hitters attending the conference include University of California scientist Jay Keasling, Discover magazine's Scientist of the Year in 2006 and a leader in the burgeoning "synthetic biology" field, which aims to create living species that will spit out drugs and fuel.

Oil companies are also investing heavily in biotechnology these days, and executives from ConocoPhillips Co., Chevron Corp. and Shell Oil Corp. will also be on hand at Walt Disney World for the conference, which starts Thursday.

By contrast, these annual gatherings have historically been sleepy affairs. Last year's industrial biotech meeting, sponsored by the Biotechnology Industry Organization, drew little interest even though it was held in Hawaii in January. That state's lieutenant governor may have been the biggest draw.

Past conferences have featured discussions on topics like biotech's role in manufacturing enzymes used to help laundry detergent break down dirt and give blue jeans the stone-washed look. But this year's meeting will be focused on the industry's role in making ethanol and other alternative fuels.

The DOE has awarded up to $385 million over four years to six companies to develop ethanol.

"We are moving into a very diversified fuel era," said Ron Pernick, who co-founded Portland, Ore.-based Clean Edge, which tracks venture capital investment. "Private investment is really taking off."

Pernick said venture capital investment in biofuels has increased from less than $1 million in 2004 to $20.5 million in 2005 to $813 million last year. Much of that investment is flowing to biotechnology companies that genetically engineer microbes that produce enzymes needed to break down crops into alcohol.

At least one industrial biotechnology company has radically remade itself into an energy company in hopes the alternative fuel craze is here to stay.

San Diego's Diversa Corp., which has lost $329.5 million since its inception in 1994, bought the Cambridge, Mass.-based ethanol company Celunol in January for $154.7 million in stock, plus debt financing. The Celunol management team will take over the new energy company once the deal is approved.

Still, even industrial biotechnology's adherents concede that commercial success in the alternative energy industry is years away if ever.

"Taking any invention from the lab to the marketplace is a long-term process and takes a lot of patience," said Celunol spokesman John Howe, who said the company's plan to convert sugar cane into ethanol will take many years to become profitable.

Others wonder if trend to making more ethanol has created a bubble that may soon burst.

Economist Lester Brown, who launched the Washington-based think tank Earth Policy Institute, said it's easier to make automobiles more fuel efficient than it is to radically alter the country's fuel supply.

"If we were to raise fuel efficiency standards, we could save as much oil as the president wants," Brown said. "Ethanol is not a winning ticket."

source news : truthabouttrade.org

Black Dragon Resources, Inc. (PINKSHEETS: BDGR) announced today that six of the seven newly drilled wells have been turned on. Four of those six wells are pumping mainly oil, already producing 100 Bls a day.

Management stated that the two wells pumping water were shot in the C zone, while the other four wells were shot in the B. Black Dragon will close off the C zone and reshoot the three wells this week.

Three new wells are currently producing approximately 100 Bls a day. Also the second water well has been completed, and Black Dragon is awaiting approval to start injection. The drilling rig has been moved to the next location, and the Company hopes to have the B water well drilled and completed by month's end.

Updating the original goal of completion of the 30 oil wells in March:

-- Goodwin B 13 wells on pump
-- Davies 1 well back on pump
-- Fuller 5 wells back on pump (not counting the newly drilled wells)
-- Burke 8 wells back on pump
-- Robinson 8 wells back on pump


So far in the month of March, 35 new wells have been completed, while additional existing wells have been put back on pump, which means that Black Dragon will surpass its goal.

Another goal was getting Hainesville back on. The new pump will be installed on Wednesday, the 28th of March. The crew will be sandpumping the two water wells, and at least part of Hainesville should be turned back on.

Also, Johnson pump is back on, and the Company is still in negotiations to drill five new gas wells.

The final item is that Black Dragon has contracted another crew to get the jack moved to the Rislen well in order to start testing the deep oil and gas well.

With the existing wells coming back on, Black Dragon estimates that previous output will increase by another 26.29 BLS a day, and factoring in the additional 100 Bls a day from newly drilled wells, revenues are expected to increase significantly.

About Black Dragon:

Black Dragon Resource Companies, Inc. is an oil and gas Production Company focused on the acquisition of mature, producing and existing U.S. oil and gas fields. The Company's focus on mature, domestic oil fields eliminates exploration risk, reducing costs, and provides immediate generation of income in a niche market where larger independent and major oil companies are not positioned to compete.

The statements in this press release regarding any implied or perceived benefits from existing oil and gas field properties, actual reserves and revenues to be derived from the reserves, plans to drill additional oil and gas wells, anticipated revenues, the acquisition of additional oil or gas leases, maintaining mineral lease rights, and any other such effect resulting from any of the above are forward-looking statements. Such statements involve risks and uncertainties, including, but not limited to, the continued production of gas at historical rates, costs of operations, delays, and any other difficulties related to producing minerals such as oil and gas, continued maintenance of the oil field and properties, price of oil or gas, marketing and sales of produced minerals, risks and effects of legal and administrative proceedings and governmental regulation, future financial and operational results, competition, general economic conditions, and the ability to manage continued growth.

Forward-Looking Statements

Certain information discussed in this press release may constitute forward-looking statements within the Private Securities Litigation Reform Act of 1995 and the federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, it can give no assurance that its expectations will be achieved. Readers are cautioned not to place undue reliance on these forward-looking statements. Forward- looking statements are inherently subject to unpredictable and unanticipated risks, trends and uncertainties such as the Company's inability to accurately forecast its operating results; the Company's potential inability to achieve profitability or generate positive cash flow; the availability of financing; and other risks associated with the Company's business. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.


Contact:
UpTick.com
480-240-1700


SOURCE: Black Dragon Resource Companies, Inc.

Venezuelan state oil company PDVSA said on Monday its $5 billion debt issue would be priced at a premium of 105.5 percent.

The issue offers a combination of three bonds with different maturities to be bought in a single package.

PDVSA said the coupon for the tranche of 10-year-debt was 5.25 percent. It was 5.375 percent for the 20-year bonds and 5.5 percent for the 30-year issue.

The Eurobond issue is made up of $1 billion in 30-year-bonds and $2 billion in both 20 and 10 year paper.

Investors buy the dollar-denominated debt in Venezuelan bolivars but the interest and final capital repayment are in dollars.

The issue is designed to pump funds into the OPEC nation's oil industry and soak up liquidity, which is spurring inflation to the highest level in the Americas.

Venezuelan bond issues are normally heavily oversubscribed.



© Reuters 2007. All rights reserved.

Cygam Energy Inc. is pleased to announce that a contract was signed with Hydro Drilling International S.p.A. (Hydro Drilling) on March 23, 2007 to drill a 1000 meters well in the Posta Nuova permit in southern Italy.

Regulatory approval for all drilling operations has been received and construction of the surface lease has commenced. Cygam has already acquired long delivery items such as wellhead, casing and related equipment. Drilling is expected to start towards the end of April, after Hydro Drilling completes its contract obligations with another operator and mobilizes the drilling rig from a nearby location.

Cygam has a 100% working interest in the Posta Nuova permit located onshore, in the Puglia region of southern Italy, along a trend of major onshore gas fields (Candela-Palino, Monte Stillo, San Salvo-Cupello, etc.). The Corporation acquired and re-interpreted available 2-D seismic data in order to confirm the size of the structural target where a former operator drilled a well in 1993. That well, Cervaro 1, tested gas at a rate of 1.3 MMcf/d from a middle Pliocene sand at a depth of approximately 950 metres but was abandoned because of lack of gas transmission infrastructure at the time. Cygam plans to drill the new well in a structurally higher position, approximately 200 meters away from the Cervaro 1 location, to a minimum total vertical depth of 1,000 metres, to test the primary middle Pliocene sandstones target. Additional shallower sandstone reservoirs will be tested as well, pending log evaluation.

This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding interpretation of seismic data, future plans and objectives of Cygam Energy Inc., are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated or expected in such statements. In particular, various factors can cause delays or prevent the Corporation from carrying out drilling plans, including but not limited to unavailability of equipment and manpower or delays in the drilling rig reaching the Posta Nuova permit. There is no certainty that the Posta Nuova drilling program will be carried out when scheduled. The existence of discoveries in structures and formations in the regions where Cygam is drilling, and the previous testing of gas flows in the same structure, does not necessarily assure that the company will be successful with its drilling program. Important factors that could cause actual results to differ materially from Cygam's expectations are risks detailed herein and from time to time in the continuous disclosure filings made by Cygam with securities regulators on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release


Contact:

Dario Sodero
Cygam Energy Inc.
President
(403) 802-6983
Email: dario.sodero@cygamenergyinc.com

Ali Rawji
Cygam Energy Inc.
Chief Financial Officer
(403) 802-6983
(403) 802-6984 (FAX)
Email: ali.rawji@cygamenergyinc.com

Source: Cygam Energy Inc.

Normabec Mining Resources Limited "NORMABEC" (TSX:NMB - News) is pleased to announce the first set of results from the 2007 drilling program from its Pitt Gold property located along the Porcupine-Destor Break, some 35 km north of Rouyn-Noranda, Abitibi. Two diamond drill rigs are presently working on the property.

Partial results from the first four holes demonstrate that gold is widespread in the sector drilled indicating a strong mineralizing system. With large volume of new data pouring in, Normabec continues to re-assess its interpretation of the mineralization model. As drilling progresses, it becomes increasingly obvious that the complexity of the mineralized structures will require 3D modelling to properly interpret the geometry of the gold bearing system.

Holes PG2006-01a and PG2006-01b are wedges out of hole PG2006-01 drilled last year and completed this year. Holes PG2007-01 and PG2007-02 are located approximately 110 metres to the east and up dip of PG2006-01. The table below shows all results around 3 g/t Au and over received so far.

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Fortress Minerals Corp. ("Fortress" or "the Company") is pleased to announce that an 11,000 metre drilling program has commenced at the Svetloye Gold Project in the Russian Far East. Plans are to begin the 2007 drilling program utilizing two diamond drill rigs and then add two more diamond drills in late spring.

Drilling will concentrate initially on extending the Elena mineralized zone to the northeast beyond drilling completed in 2006 as well as continue drilling at the Tamara target. Once the additional rigs are mobilized to site, drilling will begin on the additional five target areas within the Svetloye property. Mobilization of fuel and supplies to support the aggressive 2007 drilling program continues with more than 500 tons of fuel and 100 tons of supplies delivered to site thus far.

ON BEHALF OF THE BOARD

Ron F. Hochstein, President

This news release contains forward-looking statements concerning the Company's plans for its properties. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to political risks involving the Company's exploration and development of its properties, the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, the inability or failure to obtain adequate financing on a timely basis and other risks and uncertainties, including those described in the Company's periodic filings with the British Columbia Securities Commission. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not intend to update this information and disclaims any legal liability to the contrary.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.


Contact:

Sophia Shane
Fortress Minerals Corp.
Corporate Development
(604) 689-7842
Website: www.fortressminerals.com

Source: Fortress Minerals Corp.

South Texas Oil Company plans to significantly increase its production capacity through the acquisition of a drilling rig and a workover rig to be used at its Texas properties.

According to Murray Conradie, South Texas Oil Company’s President, "The addition of these rigs will provide significant cost savings over the next several months while simultaneously allowing us to undertake comprehensive drilling and well maintenance programs. We currently operate and own working interests in approximately 570 bopd and 1,220,000 cubic feet of gas per day and anticipate a significant increase in production resulting from the utilization of these rigs," added Mr. Conradie.

"Acquiring these rigs with experienced crews to operate them represents a very significant advance for the Company and its shareholders, particularly during this prevailing period of widespread rig shortages and escalating costs,” said Mr. Conradie.

“Furthermore, the results of the first well in the new find acquired by the company and which has the potential for over 100 additional wells, have been very positive. The well has flowed approximately 5,000 BBLs over the past 30 days with a further pay zone identified behind the pipe which we feel will produce similar or greater production rates,” concluded Mr. Conradie.

source news : oilonline.com

State-owned China Petroleum and Chemical Corp (Sinopec) has started drilling what it says will be Asia's deepest oil and gas well, state media reported Sunday.

Sinopec plans for the Chuanke No. 1 Well in southwest Sichuan province to reach a depth of 8,875 meters -- more than the height of Mount Everest, Xinhua news agency reported.

It will take the company, Asia's largest oil refiner, 676 days and 300 million yuan to complete the project, according to Xinhua.

But if the past is any guide, the work could eventually be in vain.

In July 2006, China completed drilling of the 8,408-meter Tashen No. 1 Well, in the Tahe oil field in northwest China's Tarim Basin -- but discovered no gas.

With existing oil fields drying up each year, China has been increasingly keen to find energy and resources both at home and abroad to fuel what has grown into the world's fourth largest economy.

(US$1 = 7.73 yuan)

Copyright 2007 AFX News Limited. All Rights Reserved.

Mizuho Financial Group Inc., Japan's second-largest bank, said it will form an alliance with Mexico's Grupo Financiero Banorte SA to expand financing of energy-related projects and simplify fund transfers.

Mizuho will also use the agreement to help Japanese companies transfer funds to and from Mexico, said Masako Shiono, Mizuho's Tokyo-based spokeswoman, confirming a report earlier today by the Nikkei newspaper.

"Mexico is a very resource-rich country,'' Shiono said. ``This is one of the reasons for the agreement.

Mizuho said it would release a statement on the tie-up with Mexico's fifth-biggest bank by assets this afternoon.

To contact the reporter on this story: Finbarr Flynn in Tokyo at fflynn3@bloomberg.net

source news : bloomberg.com

An island nation with no domestic oil supply, Japan offers a glimpse into the world's energy future, when oil reserves decline to unsustainable levels and alternatives are the only alternative.

Nearly 10 years after the Kyoto global- warming summit meeting, the country still claims a leadership role in reducing carbon emissions. According to the International Energy Agency, Japan's energy consumption as a percentage of gross domestic product is the lowest in the world.

The national expression of concern for the earth dovetails nicely with the traditional Japanese reverence for nature (Shintoism sees gods in every mountain, rock, and tree), but in fact Japan has no choice: The country imports almost all its oil and 60 percent of its food. It is self-sufficient only in rice.

However, Japan has managed to drive down energy use dramatically without sacrificing the comforts of an affluent society. The per capita consumption of energy in Japan is nearly half that in the United States, but the per capita incomes are roughly the same. So prosperity alone doesn't explain why the United States burns so much more oil.

Japan's economy is still the second largest in the world. Its office towers and shopping malls teem with innovation and commerce. Its prowess in innovation and design keeps the Japanese well-stocked in consumer gadgets: cellphones with GPS maps, high-tech toys, the peculiarly appealing new electric toilet.


complet to read this news click here

Chinese PresidentHu Jintao arrived in Moscow on Monday for crucial talks with Russian counterpart Vladimir Putin as part of a worldwide drive to secure new energy sources for China.

Officials from the two countries were expected to seal trade deals worth up to four billion dollars during Hu's three-day visit to Russia, as well as discuss the nuclear programmes of Iran and North Korea.

But the key to the visit is energy-hungry China's bid to obtain guarantees of increased oil and gas deliveries from Russia, the biggest energy producer in the world, analysts said.

Last month, Hu went on a 12-day tour to eight African nations that was aimed largely at boosting Chinese investment in natural resources in the continent and securing oil imports from war-torn Sudan.

"Energy is one of the most significant and promising areas of co-operation with China. It is based on large projects of a long-term and mutually beneficial character," a Kremlin official said ahead of the talks.

The Kommersant daily said that the main agreement to be finalised during Hu's visit was a deal between the Russian and Chinese railway companies that would increase crude oil exports to China.

Russia exported 15 million tonnes of oil to China in 2006, 11 million tonnes of it by rail, officials said. Plans to boost shipments have sparked concern that supplies to the West might suffer.

The visit is also expected to touch on Chinese worries about delays in the construction of a planned oil pipeline from the fields of Siberia to the Chinese oil hub of Daqing, Kommersant reported.

The two leaders are set to meet in Moscow on Monday and sign a joint declaration on Russian-Chinese partnership. They will meet again on Tuesday to inaugurate a major exhibition of Chinese artefacts inside the Kremlin.

Hu will then travel to Tatarstan, a mainly Muslim province in central Russia that has extensive oil reserves and has attracted high levels of foreign investment.

Hu and Putin were expected to talk up strong diplomatic ties between their two countries, which have taken closely aligned positions in talks meant to end North Korea's nuclear weapons programme and stem Iran's nuclear ambitions.

"They will definitely consult on what position to take in case the Iran crisis gets worse," said Andrei Ryabov, a political analyst at the Carnegie Moscow Centre.

Hu said ahead of the trip, his third to Russia since becoming president, that the visit would further cement economic and diplomatic relations that have grown significantly since the collapse of the Soviet Union in 1991.

But Russian newspapers said that behind the high-flown rhetoric, Hu's trip would be about hard-nosed business bargaining.

"Behind the ceremonial facade, the Chinese president is in for some tense negotiations," Kommersant said. The Nezavisimaya Gazeta ran a headline reading: "Difficult Neighbour: The imbalance between Russia and China is growing."

Among the possible sources of discord, Kommersant said, were Russian concerns about China's space ambitions and Chinese worries about the quality of Russian arms imports.

Nearly 200 Chinese companies selling everything from aerospace technology to tea will showcase their products during the visit at a trade exhibition in Moscow, China's biggest ever in a foreign country.

Both sides said bilateral trade jumped over the past year, though their statistics differed: China said trade grew 15 percent in 2006, while Russia said trade grew 43 percent over the same period.

AFP

Oil prices rose above $63 a barrel Monday on continued tensions between Iran and the West following Iran's detention of British naval personnel. Gasoline prices also moved higher as the driving season nears.

Vienna's PVM Oil Associates cited the "deteriorating relationship between Iran and the West and last week's further falls in U.S. commercial oil inventories" as driving prices upward. Iran is the Organization of Petroleum Exporting Countries' second largest producer.

British Prime Minister Tony Blair on Sunday called the Iranian seizure of the 15 sailors and marines "unjustified and wrong," saying that London saw their situation as "very serious." Iran suggested that the group may be tried for illegally entering Iranian waters.

Light, sweet crude for May delivery rose 80 cents to $63.08 a barrel in late morning trading on the New York Mercantile Exchange. Earlier, the contract rose as high as $63.30, a level not seen for the front-month contract since Dec. 21.

The contract closed at a 3-month high last Friday at $62.28 a barrel after Iran detained the sailors, sparking concerns that an escalation in the conflict could cut Persian Gulf oil exports.

The Brent crude contract for May delivery gained $1.18 to $64.36 a barrel on the ICE Futures exchange in London.

"The situation in Iran is keeping the market on guard, but the market is also keeping it in perspective," said Phil Flynn, an energy analyst at Alaron Trading Corp. in Chicago. "There's not a lot of panic buying, just a lot of solid buying."

Western tensions with Iran also increased after the United Nations voted Saturday to impose new and tougher sanctions against Iran for its refusal to stop enriching uranium _ a move intended to show Tehran that defiance will leave it increasingly isolated.

Iranian President Mahmoud Ahmadinejad vowed that the latest sanctions would not halt the country's uranium enrichment "even for a second."

While the oil market may seem to have factored in the violence in Iraq and issues surrounding it, the latest events in Iran have kept oil prices elevated, said Andrew Harrington, an analyst with ANZ Global Natural Resources in Sydney.

"Now we're looking at a situation where some of that political risk premium is coming back into oil prices," he said.

"(The tension between Iran and the U.K.) adds another element which the energy market will have to take into account. It complicates issues. It is one of those unusual type of situations that then causes people to reassess where they stand," Harrington said.

The West strongly suspects Iran's nuclear activities are aimed at producing weapons though Tehran says they are exclusively for the production of energy.

Meanwhile, gasoline futures gained more than 5.5 cents to $2.0535 a gallon _ prices not seen since last September _ as traders anticipate the start of the driving season. However, some analysts believe that the market enthusiasm may be premature.

"I think we're seeing the grand finale of the preseason rally. Traders are chasing it higher, but cooler heads will prevail," said Tom Kloza of Oil Price Information Service. Kloza doesn't expect the same kind of rally the market saw last year, when gasoline prices rose at least a penny a day from the start of spring to May.

Recent refinery disruptions from regular maintenance and fires have also helped to buoy prices. On Monday, BP PLC said its refinery in Whiting, Ind. shut down after a fire on Thursday, according to Dow Jones Newswires.

In other Nymex trading, heating oil futures rose nearly 6 cents to $1.7696 a gallon, while natural gas prices slipped 3.2 cents to $7.237 per 1,000 cubic feet.


Copyright 2007 The Associated Press.

Nigeria is rich in oil but short of energy, and at night the lights are out and darkness reigns for most of the 140 million inhabitants.

Hundreds of small and medium-scale businesses are being strangled by an almost total lack of power in a country which is the sixth-biggest exporter of oil in the world.

President Olusegun Obasanjo, on assuming office in May 1999, promised to put an end to the perennial energy crisis.

His probable successor, Umaru Yar'Adua, says the same, but louder, insisting that if elected in April, he would declare a national "energy state of emergency."

For several weeks now, from Kano in the north to Port Harcourt in the south, power supplies have deteriorated so much that Nigerians count the minutes of electricity provided by the Power Holding Company of Nigeria (PHCN) rather than refer to power cuts.

PHCN, which is the successor to the defunct National Electric Power Authority (NEPA) and is being prepared for privatisation, is widely referred to by frustrated Nigerians as either "Problem Has Changed Name", "Poverty Holding Company of Nigeria" or "Please Hold Candle Now".

The last evident effort by PHCN to respond was by installing pre-paid meters in some parts of Lagos. But power is so short, they cannot be read.

The national president of small and medium scale enterprises (SME), Ike Abugu, sounded a note of alarm recently when he said: "The situation is critical, the SMEs are the worst victims. Beside the change of name, nothing has changed. Or if there is one, it is in a wrong direction," he said.

The official News Agency of Nigeria (NAN) has reported that despite investment of millions of dollars by the federal government in the energy sector in recent years, the nation has to manage on output of 1,000 megawatts of electricity.

"South Africa supplies 45,000 megawatts for a population of 40 millions", Abugu said.

Yar'Adua, the presidential candidate for the governing party in the April poll, has promised production of at least 30,000 megawatts of electricity by 2011.

Energy minister Edmund Daukoru has announced 5,500 megawatts for May 29, the date a new president will assume office.

"Ridiculous", objected the independent newspaper The Guardian, asking how this could be achieved in two months even though it had not been possible in eight years.

Ironically, Nigeria sells power to its neighbours: Benin, Ghana, Niger and Togo. For Abugu, "this attitude of 'big brother' defies comprehension."

Although the government is often quick to blame vandals who damage oil and gas pipelines, others point to mismanagement and endemic corruption in the power sector.

"Where have all the billions gone?" asked an editorialist in the Sunday Guardian, who said that in six years, the PHCN had received 244 billion naira (about two billion dollars) to tackle the power problem.

Early this year, Nigerians suffered from a serious shortage of fuel which lasted for several weeks

Consumers have resorted to the press to voice their anger.

"The PHCN is a disaster. I spend not less than 50,000 naira (about 390 dollars) on fuel to run generator every month and PHCN sends crazy bills for the electricity I did not consume," a Lagos student said.

For weeks, Lagos, one of the biggest cities in the world, has reverberated almost around the clock to the sound of generators and been polluted by the black smoke they emit.

But presidential adviser Foluseke Shomolu accused Nigerians recently of "wasting electricity", saying they left lights on, even in daylight.

AFP

Independent oil and gas producer Energy Partners Ltd. said Monday it began a cash tender offer for all its outstanding 8.75 percent senior notes due 2010.

The offer, which also includes a solicitation for consent to amend the company's obligations under the notes, expires April 20, unless extended or terminated earlier by the company. The consent solicitation expiers April 9.

Energy Partners expects to pay total consideration per $1,000 principal amount of the notes calculated based on the notes' $1,043.75 redemption price on Aug. 1, 2007, the earliest redemption date. The company expects to determine the price 10 days before the offer's expiration date.

In October the company, which posted a fourth-quarter loss after taking $77.9 million in non-cash impairment charges, called off a plan to buy Lafayette, La.-based Stone Energy Corp. in a cash-and-stock deal valued at $1.4 billion, along with the assumption of $563 million of Stone debt.

That followed its rejection a few months earlier of a hostile takeover bid by Woodside Petroleum, a major Australian energy company.

The company's founder and chief executive, Richard Bachmann, said Energy Partners approached 63 potential bidders, 14 of which expressed interest and signed confidentiality agreements. But no definitive offers were received, Bachmann said.

More recently, the company said it would buy back about 22 percent of its common stock and sell some properties.

Shares of Energy Partners rose 36 cents, or 2 percent, to $18.36 during morning trading on the New York Stock Exchange. In the last 52 weeks, the stock has ranged in price from $16.37 to $28.85.

AP

Canada Energy Partners Inc. is pleased to announce that its offers to purchase have been signed (collectively the "Acquisition") by Peace River Limited Partnership, Peace River Corporation, Eagle Oil & Gas Canada LP, CAN-GAS Limited Partnership and GFR Canada Ltd. (collectively the "Vendors") to acquire additional working interest in the Peace River Project (the "Project"). The Corporation currently owns, or has the rights to earn, a 21% working interest in the Peace River Coalbed Methane ("CBM") Project ("shallow rights"); and a 14.5% working interest and 0.8% overriding royalty in the deep conventional petroleum and natural gas rights ("deep rights") on the lands covered by the Project. Upon completion of the Acquisition, the Corporation will increase its ownership of the Peace River CBM Project to a 49% working interest and an additional 3.71% after payout working interest for a total interest of 52.71% after payout. In addition, the Corporation will increase its ownership in the deep rights to a 21.5% working interest and a 5% overriding royalty payable on 74% of the production, convertible on payout into an additional 23% working interest for a total interest of 44.5% after payout.

The Peace River Project consists of approximately 36,687 acres of prospective acreage located in the Peace River Plains area near Hudson's Hope, British Columbia. GeoMet Inc. ("GeoMet") (Nasdaq: GMET - News), an experienced coalbed methane producer, is the operator and 50% working interest owner in the shallow rights. Triumph Pacific Oil & Gas Corporation is the operator and a 53% after payout working interest owner in the deep rights.

Under the terms of the Acquisition, the Corporation has agreed to issue to the Vendors an aggregate of 24,197,512 common shares (the "Shares") in the capital of the Corporation and pay to the Vendors an aggregate of Cdn$2,650,076 cash in consideration for the acquisition of 28% working interest and a net 3.71% after-payout working interest in the shallow rights and an additional 7% working interest, a net 0.1% after-payout working interest and a net 4.2% overriding royalty payable on 74% of production, convertible on payout into an additional 19% working interest in the deep rights. The Shares will be subject to resale restrictions as required by applicable securities laws and the TSX Venture Exchange (the "Exchange"). In addition, the Vendors have agreed that all Shares issued on the closing of the Acquisition will be subject to a pooling arrangement, whereby a percentage of the total number of Shares will be released in stages over a period of approximately 31 months from the date of the closing of the Acquisition. The completion of the Acquisition will not result in a change of control of the Corporation under the policies of the TSX Venture Exchange. The Vendors are at arm's length to the Corporation. The Acquisition is subject to acceptance of the Exchange. The completion of the Acquisition is subject to certain conditions for the benefit of Canada Energy including, among others, the receipt of regulatory approval to the acquisition, completion of due diligence, the execution of a definitive agreement, and completion of a financing to be conducted by Canada Energy to cover the cash portion of the purchase price. The closing of the Acquisition is scheduled for April 18, 2007, or such other date as is mutually agreed upon by the parties.

Mr. Pat S. Bolin has been appointed as a Senior Advisor to the board of directors of Canada Energy. Mr. Bolin is Chairman, President and Chief Executive Officer of EagleCorp. and Eagle Oil & Gas Co., which have production activities from over 600 wells in ten states. Mr. Bolin, attended Southern Methodist University where he graduated with a BA degree in 1973. Upon graduation he was employed by Mitchell Energy Co. as a Landman, a position he left in 1976 to co-found Eagle Oil & Gas Co. Mr. Bolin is also the Chairman of Beacon National Insurance Corporation, an advisory director of Compass Bank and a director and member of the executive committee of Fidelity Bank, Wichita Falls.

The Corporation has also granted incentive stock options to its directors, advisors and consultants to purchase a total of up to 1,000,000 common shares of the Company. The stock options are exercisable at a price of $1.00 per share for a period of 5 years. The grant of the stock options is subject to regulatory approval.

On behalf of the Board of Directors of Canada Energy Partners Inc.

John Proust, Director

Forward-looking statements: This document may contain statements about expected or anticipated future events and financial results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events, and the Company's capability to execute and implement its future plans. Actual results may differ materially from those projected by management. For such statements, we claim the safe harbour for forward-looking statements within the meaning of the Private Securities Legislation Act of 1995.

The TSX Venture Exchange does not accept responsibility for the adequacy or the accuracy of this release.


Contact:

John Proust
Canada Energy Partners Inc.
Director
(604) 909-1154
(604) 488-0319 (FAX)

1500 - 885 West Georgia Street
Canada Energy Partners Inc.
Vancouver, BC V6C 3E8 Canada
Website: www.canadaenergypartners.com

Source: Canada Energy Partners Inc.

Canadian stocks rose, as crude oil prices climbed and Xstrata Plc offered $4 billion in cash for LionOre Mining International Ltd., raising speculation there will be more takeovers among metals companies.

Gains in the Standard & Poor's/TSX Composite Index were limited after a report showed new-home sales in the U.S. unexpectedly fell in February to the lowest since June 2000, casting a shadow over growth prospects in the largest economy.

"Oil's up. The miners have a lot of cash on their balance sheets and are aggressive and optimistic,'' said Jackee Pratt, who helps manage $712 million at Mavrix Fund Management Inc. in Toronto. ``The large companies are looking for new assets. The economy is still growing, although the housing slowdown is pulling it down.''

The S&P/TSX rose 16.98, or 0.1 percent, to 13,254.64 as of 12:04 9.m. in Toronto.

Crude oil for May delivery climbed as much as $1.02 to $63.30 a barrel in New York, the highest since Dec. 20, after Iran took 15 British servicemen captive and the United Nations imposed new sanctions on the country, heightening concern supplies from the Middle East will be disrupted. Oil was at $62.95, up 67 cents, or 1.1 percent, in 11:43 a.m. trading.

EnCana Corp., Canada's biggest natural-gas company, rose 76 cents to C$58.76. Suncor Energy Inc., the second-largest oil-sands producer, added 40 cents to C$85.15. Husky Energy Inc., the oil company controlled by Hongkong billionaire Li Ka-shing, gained C$1.38 to C$79.60.

Energy Stocks

A measure of energy shares accounting for more than a quarter of the S&P/TSX's value, paced gains in the market last week as oil prices advanced. Today it added 0.4 percent.

Shares of Lionore rose C$1.58, or 9 percent, to C$19.07. Xstrata, the world's fourth-largest nickel producer, agreed to buy LionOre for $4 billion in cash, increasing nickel production by 36 percent. Zug, Switzerland-based Xstrata will pay C$18.50 a share for LionOre, it said today in a statement, 5.8 percent more than the company's closing share price in Toronto on March 23.

Labor shortages and cost increases have delayed new projects for companies including Cia. Vale do Rio and BHP Billiton Ltd., leaving stockpiles monitored by the London Metal Exchange down 31 percent this year. Nickel for delivery in three months climbed 0.8 percent to $42,550 a metric ton in London. The metal traded at a record $48,500 on March 16.

``I wouldn't be surprised if there is a counter bid,'' said Gerry Brockelsby, who holds Lionore shares among the $266 million that he manages at Marquest Investment Counsel in Toronto. ``With nickel prices where they are, the deal highlights the compelling cash flows and values in these companies. You can overlay that on copper and the other metals.''

First Quantum

Other metals producers also gained. First Quantum Minerals Ltd. a miner of copper in Africa, climbed C$1.89 to C$75.39. Teck Cominco Ltd., the world's second-biggest zinc producer, added C$1.82 to C$81.82.

An index of raw-materials shares rose 0.3 percent.

A five-year rally in metals such as nickel, used to make stainless steel, spurred more than $123 billion of acquisitions last year in the mining industry, up from about $60 billion in 2005, according to Bloomberg data.

New-home purchases declined 3.9 percent to an annual pace of 848,000 last month from a revised 882,000 rate in January, the Commerce Department said today in Washington. The report dimmed prospects of a quick recovery in housing in the U.S., Canada's most important trading partner.

``The new-home sales report is an indication of a slower economy -- it'll affect economically sensitive stocks,'' said Pratt.

Industrials

SNC-Lavalin Group Inc. fell 95 cents, or 2.6 percent, to C$33.93 and led an index of industrial shares lower. Canada's biggest engineering and construction company said a loss on a power project will hurt first-quarter earnings. The bankruptcy of a key supplier is causing the loss on the project, the Montreal-based company said in a statement sent today by CNW Telbec. The company's power segment is now projected to post an operating loss in 2007.

Industrial stocks, among the most closely tied to economic growth, declined 0.3 percent as a group.

Nortel Networks Corp. fell 32 cents to C$27.68. North America's biggest phone-gear maker weighed on an index of computer- related shares, which slipped 0.6 percent.

The following shares were having unusual price changes.

Connacher Oil & Gas Ltd. (CLL CN) rose 12 cents, or 3.2 percent, to C$3.92. The oil and natural gas exploration company said on March 23 that net income for 2006 rose to 4 cents a share from 1 cent.

Menu Foods Income Fund (MEW-U CN) dropped 70 cents, or 14 percent, to C$4.40. The company, which recalled 60 million cans of wet pet food in the U.S. last week, asked for all brands involved to be removed, regardless of the date of manufacture, amid concern tainted products are still being sold. At least 16 cats and dogs have died from eating the contaminated food, the U.S. Food and Drug Administration has said.

Last week the chief executive officer of the pet food maker said the company will take responsibility for pet owners' expenses. The U.S. Food and Drug Administration said it has had as many as 4,400 phone calls about sick pets. The share shave lost 40 percent since March 15, the day before the recall.

To contact the reporter on this story: John Kipphoff in Toronto at jkipphoff@bloomberg.net.

Oil prices briefly touched $63 a barrel Monday on continued tensions between
Iran and the West following Iran's detention of British naval personnel. Recent declines in U.S. oil inventories also supported the market.

Vienna's PVM Oil Associates cited the "deteriorating relationship between Iran (
OPEC's second largest producer) and the West and last week's further falls in U.S. commercial oil inventories" as driving prices upward.

British Prime Minister
Tony Blair on Sunday called the Iranian seizure of the 15 sailors and marines "unjustified and wrong," saying that London saw their situation as "very serious." Iran suggested that the group may be tried for illegally entering Iranian waters.

Light, sweet crude for May delivery rose 72 cents to $63 a barrel in morning trading on the New York Mercantile Exchange.

The contract hit a 3-month high last Friday to close at $62.28 a barrel after Iran detained the sailors, sparking concerns that an escalation in the conflict could cut Persian Gulf oil exports.

The Brent crude contract for May delivery gained $1.03 to $64.21 a barrel on the ICE Futures exchange in London.

Western tensions with Iran also increased after the
United Nations voted Saturday to impose new and tougher sanctions against Iran for its refusal to stop enriching uranium — a move intended to show Tehran that defiance will leave it increasingly isolated.

Iranian President Mahmoud Ahmadinejad vowed that the latest sanctions would not halt the country's uranium enrichment "even for a second."

While the oil market may seem to have factored in the violence in
Iraq and issues surrounding it, the latest events in Iran have kept oil prices elevated, said Andrew Harrington, an analyst with ANZ Global Natural Resources in Sydney.

"Now we're looking at a situation where some of that political risk premium is coming back into oil prices," he said.

"(The tension between Iran and the U.K.) adds another element which the energy market will have to take into account. It complicates issues. It is one of those unusual type of situations that then causes people to reassess where they stand," Harrington said.

The West strongly suspects Iran's nuclear activities are aimed at producing weapons though Tehran says they are exclusively for the production of energy.

In other Nymex trading, heating oil futures gained nearly 3.5 cents to $1.7460 a gallon, while natural gas prices slipped a fraction of a cent to $7.263 per 1,000 cubic feet.

Gasoline futures rose 3.9 cents to $2.0375 a gallon. Earlier in trading, gasoline hit $2.0440 a gallon, a level not seen since Sept. 5.

Associated Press

World oil prices Monday struck the highest points so far in 2007, reaching above 64 dollars a barrel in London, as the market fretted over rising tensions in major crude producer Iran, traders said.

In London, the price of Brent North Sea crude for May delivery jumped 1.10 dollars to 64.28 dollars a barrel in electronic deals. It had earlier struck 64.38 dollars -- the highest point since December 4.

New York's main oil futures contract, light sweet crude for delivery in May, gained 54 cents to 62.82 dollars in pit trading. Earlier Monday it reached 63.30 dollars -- last seen on December 21.

The Iran situation is adding a "geopolitical risk premium to crude prices, with many market participants concerned that the (nuclear) situation could escalate, potentially leading to Iran using oil as a bargaining tool," Sucden analyst Michael Davies said in London.

The White House on Monday urged Iran to rethink a threat to limit cooperation with the UN nuclear watchdog agency and insisted Tehran bow to international demands to freeze sensitive atomic work.

"We would urge them not to go down that road," said spokeswoman Dana Perino.

Iran, the world's fourth-biggest producer of oil, said Sunday it would restrict its cooperation with the UN nuclear watchdog in retaliation for fresh Security Council sanctions over its disputed atomic programme.

The
United Nations Security Council voted unanimously Saturday to impose the sanctions in a bid to pressure Iran into freezing its uranium enrichment programme.

The decision followed word on Friday that Iran had seized 15 British sailors in the Gulf, a move that roiled the market.

EU foreign policy chief Javier Solana said he would attempt to contact Iranian leaders Monday to discuss the fate of the British sailors being held by Iran.

An Iranian official said the navy personnel were being interrogated and would have to answer to allegations they violated Iranian waters.

"The case of the Britons who violated Iranian territorial waters is following the due legal process and they must answer for their violation," deputy foreign minister Mehdi Mostafavi said, state television reported.

AP

-Energy Transfer Partners, L.P. has announced that its Board of Directors has called a special meeting of its Common Unitholders to approve (i) a change in the terms of the partnership's Class G units to provide that each Class G unit is convertible into one common unit and (ii) the issuance of additional common units upon such conversion. The Board of Directors has recommended that the partnership's Common Unitholders approve these matters.

The conversion of these Class G units would be on a one-to-one basis, resulting in a greater number of Common Units outstanding, but not an increase in the overall number of partnership units. Accordingly, on an overall basis, the conversion would not be dilutive to the Partnership's existing Common Unitholders.

The meeting will be held at 10:00 a.m. Central Daylight Time on May 1, 2007, at the Hotel ZaZa, 2332 Leonard Street, Dallas, Texas 75201. The record date for determining the Unitholders entitled to vote at this meeting is April 2, 2007. It is anticipated that the mailing of the Proxy and Proxy Statement to Unitholders of record as of April 2, 2007, will begin on or around April 6, 2007.

Energy Transfer Partners, L.P. (NYSE:ETP - News) is a publicly traded partnership owning and operating a diversified portfolio of midstream energy assets. ETP's natural gas operations include intrastate natural gas gathering and transportation pipelines, natural gas treating and processing assets located in Texas and Louisiana, and three natural gas storage facilities located in Texas. These assets include approximately 12,000 miles of intrastate pipeline in service, with an additional 600 miles of intrastate pipeline under construction, and 2,400 miles of interstate pipeline. ETP is also one of the three largest retail marketers of propane in the U.S., serving more than one million customers across the country.

Energy Transfer Equity, L.P. (NYSE:ETE - News) owns the general partner of Energy Transfer Partners and approximately 62.5 million ETP limited partner units. Together ETP and ETE have a combined enterprise value of approximately $20 billion.

The information contained in this press release is available on our website at www.energytransfer.com.


Contact:

Investor Relations:
Energy Transfer
Renee Lorenz, 214-981-0700
or
Media Relations:
Gittins & Granado
Vicki Granado, 214-361-0400

Source: Energy Transfer Partners, L.P.

Valero L.P. and Valero GP Holdings, LLC (NYSE:VEH - News) today announced that Mary Morgan, Vice President of Marketing and Business Development of Valero L.P., will make a presentation at the Platts California Fuel Supply Conference in Long Beach, California on Monday, March 26 at 4:30 p.m. PT. A copy of the presentation will be available at www.valerolp.com and www.valerogpholdings.com in the Investors portion of the Web sites.

Valero L.P. is a publicly traded, limited partnership based in San Antonio, with 9,113 miles of pipeline, 87 terminal facilities and four crude oil storage facilities. One of the largest independent terminal and petroleum liquids pipeline operators in the nation, the partnership has operations in the United States, the Netherlands Antilles, Canada, Mexico, the Netherlands and the United Kingdom. The partnership's combined system has approximately 80 million barrels of storage capacity, and includes crude oil and refined product pipelines, refined product terminals, a petroleum and specialty liquids storage and terminaling business, as well as crude oil storage tank facilities. For more information, visit Valero L.P.'s Web site at www.valerolp.com.

Valero GP Holdings, LLC is a publicly traded limited liability company that owns the two percent general partner interest, a 21.4 percent limited partner interest and the incentive distribution rights in Valero L.P., one of the largest independent terminal and petroleum liquids pipeline operators in the nation with operations in the United States, the Netherlands Antilles, Canada, Mexico, the Netherlands and the United Kingdom. For more information, visit Valero GP Holdings, LLC's Web site at www.valerogpholdings.com.


Contact:

Valero L.P., San Antonio
Investors, Mark Meador, Senior Manager,
Investor Relations: 210-345-2895
or
Media, Mary Rose Brown, Senior Vice President,
Corporate Communications: 210-345-2314
Web site: http://www.valerolp.com

Atlas Pipeline Partners L.P. (NYSE:APL - News) (the "Partnership") announces today that the Partnership will be presenting at the Lehman Brothers 2007 High Yield Bond & Syndicated Loan Conference on Monday, March 26th in Scottsdale, AZ. Bob Firth, President - Atlas Pipeline Mid-Continent, and Matt Jones - Chief Financial Officer, will be presenting for the Partnership at 1:00 p.m. local time, or 4:00 p.m. Eastern Time.

Investors and general public are invited to listen to the live webcast of the presentation at www.atlaspipelinepartners.com under the Event Calendar page of the Investor Relations section of the site. A replay of this webcast will be available on the company's website.

Atlas Pipeline Partners, L.P. is active in the transmission, gathering and processing segments of the midstream natural gas industry. In the Mid-Continent region of Oklahoma, Arkansas, northern Texas and the Texas panhandle, the Partnership owns and operates approximately 1,900 miles of active intrastate gas gathering pipeline and a 565-mile interstate natural gas pipeline. The Partnership also operates three gas processing plants and a treating facility in Velma, Elk City, Sweetwater and Prentiss, Oklahoma where natural gas liquids and impurities are removed. In Appalachia, it owns and operates approximately 1,600 miles of natural gas gathering pipelines in western Pennsylvania, western New York and eastern Ohio. For more information, visit our website at www.atlaspipelinepartners.com or contact bbegley@atlaspipelinepartners.com.


Contact:

Contact:
Brian Begley
Investor Relations
1845 Walnut Street - Suite 1000
Philadelphia, PA 19103
(215) 546-5005
(215) 561-5692 (facsimile)


Source: Atlas Pipeline Partners, L.P.

El Paso Corporation announced the expiration and final results of its previously announced cash tender offers to purchase notes of each of the series listed in the table below. The tender offers expired at 12:00 midnight, New York City time, on March 22, 2007. $2,590,990,000 in aggregate principal amount of notes were validly tendered and accepted for purchase in the tender offers. $627,089,000 aggregate principal amount of such notes were purchased by El Paso on the early settlement date, which was March 9, 2007. El Paso expects final settlement of the tender offers to occur today.

report table click here

Citigroup Corporate and Investment Banking, Goldman, Sachs & Co. and Merrill Lynch, Pierce, Fenner & Smith Incorporated served as lead dealer managers for the tender offers and Global Bondholder Services Corporation served as the depositary and information agent for the tender offers.

El Paso Corporation provides natural gas and related energy products in a safe, efficient, and dependable manner. El Paso owns North America's largest natural gas pipeline system and one of North America's largest independent natural gas producers. For more information, visit http://www.elpaso.com .

Cautionary Statement Regarding Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking statements are based on assumptions that the Company believes to be reasonable. However, actual results almost always vary from assumed facts and the differences can be material, depending upon the circumstances. As a result, you should not place undue reliance on such forward-looking statements. The words "believe," "expect," "estimate," "anticipate" and similar expressions will generally identify forward-looking statements. All of the Company's forward-looking statements, whether written or oral, are expressly qualified by these cautionary statements and any other cautionary statements that may accompany such forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date of this release.

With this in mind, you should consider the risks discussed in the Offer to Purchase, under the caption "Risk Factors" in El Paso's Annual and Quarterly Reports on Forms 10-K and 10-Q and in the other documents the Company files with the SEC from time to time, which could cause actual results to differ materially from those expressed in any forward-looking statement made by the Company or on the Company's behalf.


Source: El Paso Corporation

Oil prices spiked above $62 a barrel Friday and gasoline futures continued to surge as unrest in the Middle East and Nigeria helped vault crude prices to their highest level since December.

Light, sweet crude for May delivery gained 59 cents to settle at $62.28 on the New York Mercantile Exchange, after earlier climbing as high as $62.65. The rise follows a surge of more than $2 on Thursday, after U.S. government figures showed refineries are boosting crude usage to make gasoline and other products.

The May contract for Brent crude added 67 cents to $63.18 a barrel on London's ICE Futures exchange.

"There's a good solid list of fundamental supports for the market," said Citigroup Global Markets energy analyst Tim Evans. "There's nothing on the other side of the scale,"

At the top of the list was Britain's Ministry of Defense saying Iranian naval vessels seized 15 British sailors and marines in Iraqi waters. Britain said the personnel were "engaged in routine boarding operations of merchant shipping in Iraqi territorial waters," and had completed their inspection of a merchant ship when they were accosted by Iranian vessels.
FIND MORE STORIES IN: Iraq | Iran | Britain | Nigeria | Militants

Also adding to the market's worries was gunmen kidnapping three foreigners in southern Nigeria, Africa's biggest oil producer. Police said unidentified assailants waylaid a vehicle carrying an Indian and a Lebanese man in Warri and kidnapped them. In a separate incident, authorities said gunmen stormed a German construction firm in the main southern oil city of Port Harcourt and kidnapped a Dutch employee.

More than 150 foreign workers have been seized in the Niger Delta during a year of stepped-up militant attacks and rising crime. Militants say they are fighting to force the federal government to give more oil revenues to their region and release two leaders on trial for treason or corruption charges.

The focus back on geopolitical factors came after a U.S. inventory report indicated earlier this week that refineries are beginning to emerge from their seasonal maintenance period, after weeks of declining utilization, and will soon start demanding more crude oil ahead of the U.S. driving season.

The Energy Information Administration reported refineries operated at 86.3% capacity last week, up 0.7% from the prior week. Gasoline inventories, meanwhile, dropped 3.4 million barrels last week to 210.5 million barrels.

"The best part for the bulls is that the steadily increasing demand for crude takes weeks to be turned into a rising tide of refinery output," Cameron Hanover's Peter Beutel wrote in a research note. That means crude oil bought Thursday won't leave the refinery gate as a finished product until May or June.

"If we do not see a steadily rising stream of imports, domestic refinery output cannot meet the demand we see in July and August," Beutel wrote.

Gasoline futures rose more than 4 cents to settle at $1.9983 per gallon on the Nymex, after setting a fresh seven-month high Thursday.

Prices at the pump have risen recently as well, with a gallon of unleaded gas averaging $2.577 across the country, according to AAA and Oil Price Information Service. That's up from $2.278 a month ago and $2.511 a year ago.

In other Nymex trading, natural gas futures fell 5.1 cents to $7.269 per 1,000 cubic feet, and heating oil futures slipped less than a penny to $1.7111 a gallon.

Copyright 2007 The Associated Press. All rights reserved.

President Hugo Chavez said China is set to rival the United States as Venezuela's top oil buyer as he announced new plans with the Asian powerhouse to jointly ship oil, build refineries and expand crude production.

Chavez, speaking Friday after meeting with an official from the state-owned China National Petroleum Corp., told reporters that, "As a power, the United States is going down, while China is moving up."

Chavez said Venezuela was on track to reach its goal of raising oil sales to China to 1 million barrels a day by 2012 from its current level of about 150,000 barrels a day.

"When we begin speaking of 1 million barrels of crude, we're nearing the level of Venezuelan supplies to the United States," Chavez said. Venezuela currently ships about 1.5 million barrels a day to the United States.

"We do not deny what a big market the United States is — one we have maintained and are resolved and interested in maintaining, as well as our refineries there and our great company, Citgo (Petroleum Corp.)," he said. "But now Venezuela is diversifying."

Chavez announced plans for Venezuela and China to build three refineries in China that will process a total of 800,000 barrels a day of heavy Venezuelan crude.

"In two years these refineries should be ready, built. Within two or three years," he said.

Chavez also said the two countries decided to start a joint oil shipping company with its own tankers to carry crude and other products between Venezuela and China, as well as to other world markets.

Venezuela will also allow China to expand its oil exploration activities in the Orinoco River region, Chavez said.

Chavez said that the agreements "places us without doubt as one of (China's) most important partners, I think, not just on the continent but in the world."

AP

Fitch Ratings on Thursday affirmed the ratings of Brazil's state-owned oil company Petroleo Brasileiro SA, after this week's news that it will buy the No. 2 fuel distributor and refiner in Latin America.

The agency said ratings for Petroleo Brasileiro, or Petrobras, were supported by proved hydrocarbon reserves, increased output, offshore exploration and production, and a dominant domestic market position. Fitch said the company's outlook remained stable.

Petrobras on Monday announced plans to buy Ipiranga, a Brazilian fuel distributor and refiner, in a cash and stock deal valued at $5 billion with partners, petrochemical company, Braskem SA, and fuel distributor and refiner, Grupo Ultra.

The transaction is expected to close by the end of 2007.

Shares of Petrobras gained $2.06, 2.2 percent, to $95.39 in midday trading on the New York Stock Exchange, while shares of Braskem gained 10 cents to $15.87, also on the NYSE.

AP

Transmeridian Exploration Incorporated today announced that Dr. Fernando J. Zuniga y Rivero, a member of the Company's board of directors, has informed the nominating and governance committee that he will retire from the board effective as of the 2007 annual meeting of stockholders and will not stand for re-election as a director. Dr. Zuniga y Rivero has been a director of the company since April 2005.

``We would like to thank Fernando for his support and continuous effort to make Transmeridian Exploration a better company,'' said Lorrie T. Olivier, President, Chief Executive Officer and Chairman of the Board. ``We are sorry to see him leave the board and wish him all the best in his retirement.''

About Transmeridian Exploration Incorporated

Transmeridian Exploration Incorporated is an independent energy company established to acquire and develop oil reserves in the Caspian Sea region of the former Soviet Union. The Company primarily targets fields with proved or probable reserves and significant upside reserve potential. Transmeridian Exploration currently has projects in Kazakhstan and southern Russia and is pursuing additional projects in the Caspian Sea region.


Contact:

Transmeridian Exploration Incorporated
Lorrie T. Olivier, CEO
Earl W. McNiel, CFO
(281) 999-9091
Fax: (281) 999-9094
tmei@tmei.com
www.tmei.com
397 N. Sam Houston Pkwy E., Suite 300
Houston, Texas 77060

Source: Transmeridian Exploration, Inc.

Enterra Energy Trust ("Enterra" or the "Trust") today announced that it will hold a conference call and live audio webcast at 11 a.m. ET, Monday, March 26, 2007 to discuss financial and operating results for the year ended December 31, 2006.

A news release announcing the Trust's results will be issued prior to the call.

The call will be hosted by Keith Conrad, President and Chief Executive Officer and Victor Roskey, Senior Vice President and Chief Financial Officer. Following management's presentation, there will be a question and answer session for analysts and institutional investors.

To access the call, please dial 416-644-3416 or 1-800-588-4942. The conference call will also be accessible via live webcast at www.enterraenergy.com.

A replay of the conference call will be available until 11:59 p.m. ET, April 4, 2007. The replay may be accessed on Enterra's website, or by dialing 416-640-1917 or 1-877-289-8525, followed by passcode 21222283#.

About Enterra Energy Trust

Enterra Energy Trust is a conventional oil and gas trust based in Calgary, Alberta. The Trust acquires, operates and exploits petroleum and natural gas assets principally in Alberta and British Columbia, Canada, and in Oklahoma, U.S.A.


Contact:

Enterra Energy Trust
E. Keith Conrad, President & CEO, 403-263-0262
or 877-263-0262
E-mail: ekconrad@enterraenergy.com
or
Victor Roskey, Senior Vice President & CFO, 403-263-0262
or 877-263-0262
E-mail: vroskey@enterraenergy.com
www.enterraenergy.com

Source: Enterra Energy Trust

GulfMark Offshore, Inc. today announced it has reached an agreement to build two additional vessels for the Company's worldwide operated fleet.

GulfMark has entered into a contract with Aker Yards ASA to construct two large platform supply vessels of the Aker PSV 09CD design, at a cost of approximately $85 million. The vessels are 4,850 deadweight tons, diesel electric powered and conform to the Clean Design classification with expected deliveries in late 2009 and the first half of 2010.

Bruce Streeter, President and Chief Executive Officer of the Company, commented: ``The Aker 09CD vessel is similar to the two vessels we will take delivery of this year. They have the same efficient hull design and large capacities as the ones to be delivered this year, but add dynamic positioning (DP) 2 as well as Clean Design classifications. They are built to meet the future requirements that vessels be built to a full double hull concept with additional items to improve environmental characteristics. We have had strong customer interest in the Aker 09 vessels currently under construction that will be named Highland Prestige and Highland Promise. The first of these vessels will deliver shortly and we plan for the start of its first contract in the early part of April. Having worked closely with the Aker Group on the design, we believe the Aker PSV09CD vessel will meet all anticipated regulatory requirements and fit into the future planning of our customers. When the vessels covered by this announcement are delivered, we will have four of the large capacity Aker 09 vessels in our fleet, which are expected to provide improved economics for both ship owner and charterer.

We are very pleased to be able to add the capacity and added dimension of these vessels as part of our overall fleet development. The Company will add a total of four new construction, owned vessels to the fleet during 2007. With the addition of these two vessels to the new build program, there will be nine new build deliveries between 2008 and the middle of 2010.``

GulfMark Offshore, Inc. provides marine transportation services to the energy industry through a fleet of sixty offshore support vessels, primarily in the North Sea, offshore Southeast Asia, and the Americas.

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve known and unknown risk, uncertainties and other factors. Among the factors that could cause actual results to differ materially are: price of oil and gas and their effect on industry conditions; industry volatility; fluctuations in the size of the offshore marine vessel fleet in areas where the Company operates; changes in competitive factors; delay or cost overruns on construction projects and other material factors that are described from time to time in the Company's filings with the SEC. Consequently, the forward-looking statements contained herein should not be regarded as representations that the projected outcomes can or will be achieved.


Contact:

GulfMark Offshore, Inc.
Edward A. Guthrie, CFO & Executive Vice President - Finance
(713) 963-9522

Source: GulfMark Offshore, Inc.

Delek Resources is pleased to announce that it has, along with its joint venture partners, signed a drilling contract to drill the Wanner Prospect in North Dakota. The targeted depth will be the Lodgepole formation. The company and its partners have done a great deal of work on this prospect utilizing many different technologies which should enhance the project's success.

The Lodgepole reefs in North Dakota have been known to produce up to 4,000,000 barrels per well at rates of 2000 barrels per day. However, a large 3d seismic program was not successful as no contrast for the reefs were apparent. Delek and its partners have revived the play using alternate technologies, which have proven effective to locate these reefs. This will be the company's first prospect in North Dakota.

The company previously participated in the Eveline well in Montana. However, that well was drilled and was not commercial.

Forward-looking statements:

Certain statements in this news release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the Company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.


Contact:

Delek Resources, Houston
Leonard Sternheim, 713-784-8160

Source: Delek Resources

Doug Rock, chairman and chief executive of Smith International Inc., supplier of products and services for the oil and gas industry, received compensation valued by the company at $8.9 million in 2006.

According to a regulatory filing Thursday, Rock, who is the Houston-based company's chairman, CEO, president and chief operating officer, got a base salary of $1.1 million and a cash bonus of $2.2 million.

He also received stock and option awards with an estimated value of $5 million on the day they were granted.

Rock received $580,903 in other compensation, which included company contributions to his executive retirement plan and 401(k), as well as a $32,800 annual perquisite allowance.

Each company executive can use the allowance at his or her discretion. The company pays for a car allowance, financial planning, medical reimbursement, club memberships and up to $3,000 for an annual physical, among other services.

Smith International also provided $10,873 in airfare for Rock's spouse to accompany him on company business and $14,196 in life insurance premiums.

In addition to his annual compensation, Rock realized $14.3 million on exercising option awards and $3.4 million on vesting stock awards.

The Associated Press calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation, and the estimated value of stock options and awards granted during the year. The calculations don't include changes in the present value of pension benefits.

Shares of Smith International rose 77 cents to $47.67 in afternoon trading on the New York Stock Exchange.

AP

David Newman, Chairman of Austral Pacific Energy Ltd. (TSX-V and NZSX: APX; AMEX: AEN), announced today that the Board had accepted the resignation of its Chief Executive Officer, Rick Webber, effective 30 April 2007. At the same time Mr. Webber will resign his position as a director of the Company.

David Newman and his fellow director Peter Hill will jointly assume the duties of Chief Executive Officer and conduct a review of the organization to find the best suited, permanent, leadership structure.

Reflecting on events since Mr. Webber took office at the beginning of 2006, Mr. Newman noted that the Company has a new business strategy in place together with a firm work programme to execute and deliver that strategy in 2007 and beyond. The re-commencement of production from the Cheal Oil Field using temporary facilities, the initiation of the full field development of Cheal, the acquisition of Arrowhead Energy Limited and the Douglas gas condensate discovery in PNG are all important milestones, but other significant opportunities, such as Cardiff and the Kahili Fields remain undeveloped. These current and future projects are planned to grow shareholder value in the months and years ahead.

None of the Exchanges upon which Austral Pacific's securities trade have approved or disapproved the contents hereof. This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of applicable legislation. Other than statements of historical fact, all statements in this release addressing future production, reserve potential, exploration and development activities and other contingencies are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements, due to factors such as market prices, exploration and development successes, continued availability of capital and financing, and general economic, market, political or business conditions. See our public filings at www.sedar.com and www.sec.gov/edgar/searchedgar/webusers.htm for further information.


Source: Austral Pacific Energy Ltd.

Gulfmark Offshore Inc., which provides marine services to offshore oil and gas explorers, said Thursday it would build two new vessels at a combined cost of about $85 million.

Aker Yards ASA, a Norwegian company, will build the platform supply vessels, which Gulfmark plans to take delivery of in late 2009 and the first half of 2010. The double-hulled, diesel-electric powered vessels, each of which weighs 4,850 tons, will conform to new regulatory standards, the company said.

The two vessels bring to seven the so-called "new build" deliveries Gulfmark expects between 2008 and the middle of 2010.

Shares of Gulfmark fell 34 cents to $43.27 in afternoon trading on the Nasdaq Stock Market.

AP

Oil field services provider BJ Services Co. on Friday said it has named David D. Dunlap as chief operating officer and executive vice president.

Dunlap has worked for BJ Services for 22 years, most recently as the company's vice president of international operations. The company's Web site did not list a current COO.

Shares of BJ Services rose 34 cents to $28.08 in midday trading on the New York Stock Exchange.

AP

GulfMark Offshore, Inc. announced today that Bruce Streeter, GulfMark Offshore, Inc.'s President and Chief Executive Officer and Edward Guthrie, GulfMark Offshore, Inc.'s Chief Financial Officer and Executive Vice President - Finance, will present at the 2007 High Yield Bond and Syndicated Loan Conference in Scottsdale, Arizona on Monday, March 26, 2007 at 2:30 p.m. Participants may listen to a webcast of the presentation by going to http://cc.talkpoint.com/LEHM002/032607a_jw/default.asp?entity=Gulfmark.

The presentation will be available on Monday, March 26th on GulfMark's web site at: http://www.gulfmark.com.

The presentation contains GulfMark Offshore, Inc. (NasdaqGS:GMRK - News) announced today that Bruce Streeter, GulfMark Offshore, Inc.'s President and Chief Executive Officer and Edward Guthrie, GulfMark Offshore, Inc.'s Chief Financial Officer and Executive Vice President - Finance, will present at the 2007 High Yield Bond and Syndicated Loan Conference in Scottsdale, Arizona on Monday, March 26, 2007 at 2:30 p.m. Participants may listen to a webcast of the presentation by going to http://cc.talkpoint.com/LEHM002/032607a_jw/default.asp?entity=Gulfmark.

The presentation will be available on Monday, March 26th on GulfMark's web site at: http://www.gulfmark.com.

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The presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve known and unknown risk, uncertainties and other factors. Among the factors that could cause actual results to differ materially are: price of oil and gas and their effect on industry conditions; industry volatility; fluctuations in the size of the offshore marine vessel fleet in areas where GulfMark operates; changes in competitive factors; delay or cost overruns on construction projects and other material factors that are described from time to time in the GulfMark's filings with the SEC, including its Form 10-K for the year ended December 31, 2006. Consequently, the forward-looking statements contained herein should not be regarded as representations that the projected outcomes can or will be achieved.

GulfMark Offshore, Inc. provides marine transportation services to the energy industry through a fleet of sixty (60) offshore support vessels, primarily in the North Sea, offshore Southeast Asia, and the Americas.


Contact:

GulfMark Offshore, Inc.
Edward A. Guthrie, Executive Vice President
(713) 963-9522

Source: GulfMark Offshore, Inc.

FMC Technologies, Inc. announced today that Joseph H. Netherland, Chairman, will address attendees at the following event:

Analyst Conference: Howard Weil's 35th Annual Energy Conference
- New Orleans, Louisiana
Wednesday, April 4, at 8:50 A.M. Central Time

Presentation: Presentation slides will be available at the
time of the presentation on the FMC Technologies
web site, www.fmctechnologies.com - investor
relations section.

FMC Technologies, Inc. is a leading global provider of technology solutions for the energy industry and other industrial markets. The Company designs, manufactures and services technologically sophisticated systems and products such as subsea production and processing systems, surface wellhead systems, high pressure fluid control equipment, measurement solutions, and marine loading systems for the oil and gas industry. The Company also produces food processing equipment for the food industry and specialized equipment to service the aviation industry. Twice named as the Most Admired Oil and Gas, Equipment Service Company by FORTUNE magazine, FMC Technologies employs approximately 11,000 people and operates 33 manufacturing facilities in 19 countries.


Contact:

FMC Technologies, Inc., Houston
Investors
Maryann Seaman, 281-591-4080
or
Media
Bruce Bullock, 281-591-4429

Source: FMC Technologies, Inc.

The number of rigs actively exploring for oil and natural gas in the United States increased by five this week to 1,745.

Of the rigs running nationwide, 1,459 were exploring for natural gas and 281 for oil, Houston-based Baker Hughes Inc. reported Friday. Five were listed as miscellaneous.

A year ago, the rig count stood at 1,571.

Of the major oil- and gas-producing states, Colorado gained five rigs, Alaska added two and California gained one. Texas and Oklahoma each lost seven rigs and Louisiana lost one. New Mexico and Wyoming were unchanged.

Baker Hughes has tracked rig counts since 1944. The tally peaked at 4,530 in 1981, during the height of the oil boom. The industry posted several record lows in 1999, bottoming out at 488.

AP

Newly introduced legislation should help encourage oil exploration on the Fort Berthold Indian Reservation, which covers a substantial chunk of the oil-producing Bakken geologic formation, the state Senate's majority leader says.

The bill would allow state regulators to monitor oil production on a North Dakota Indian reservation and give Gov. John Hoeven authority to negotiate agreements to share tax revenues with a tribe. It limits the tribe's share to 50 percent.

The measure was drafted with the Fort Berthold reservation in mind, said Sen. Bob Stenehjem, R-Bismarck, the Senate majority leader. North Dakota's other four reservations are not considered likely prospects for oil production.

Hoeven said Marcus Wells Jr., the chairman of the Three Affiliated Tribes, suggested the legislation and has been involved in drafting it.

"The concept right now is that the governor would negotiate an agreement with the tribe to provide not only for the tax collection but also regulatory certainty, so that oil companies would come in and drill on the reservation," Hoeven said.

Oil companies are presently exploring western North Dakota's Bakken formation for oil, a task they describe as expensive and fraught with technical difficulties.

If the same set of rules apply both on and off the reservations, companies are more likely to drill on the reservations, Stenehjem believes. "That's the whole purpose of this is to encourage oil production," he said.

Deadlines for introducing bills in the Legislature passed in January. Any new Senate bills or resolutions must be approved by a Senate delayed bills committee, which agreed Tuesday to allow the introduction.

Sen. Tim Mathern, D-Fargo, a committee member, said the new bill's provisions were offered as an amendment to existing legislation in the Senate Appropriations Committee. Introducing it as a separate bill will give both the House and Senate a chance to have hearings on the proposal, Mathern said.

source news : in-forum.com

RocketStream, Inc., a developer of technologies and solutions to accelerate the delivery of digital payloads over high-bandwidth IP networks, announced today that all three components of its RocketStream data transfer acceleration software suite are now released for purchase. These components, which include client, server, and peer-to-peer (P2P) file transfer modules, are named RocketStream Uplink, RocketStream Server, and RocketStream Station, respectively.

With the commercial release of the product, the company concludes a successful beta testing program, where over 200 prospective customers registered for an opportunity to preview and test the software before its final release. These beta registrants included companies and institutions from a diverse array of industries: health care, personal computer manufacturing, online retailing, interior design, silicon chip manufacturing, online news & entertainment, film studios, sports broadcasting, oil & gas exploration, law enforcement, space exploration, IT consulting, and financial services.

RocketStream enables enterprises that have high-bandwidth connections to fully exploit these connections. The product not only accelerates data at speeds up to 100 times faster than traditional FTP, but it also provides on-the-fly encryption, making RocketStream reliable and secure. The simple and intuitive user interface makes it ideal for applications such as file sharing, synchronization, remote backup, and mirroring, and its low price makes it significantly less expensive than previous hardware-based solutions.

Michael Fitts, CEO of TouchMedia, a leading provider of dynamic touch-screen 'digital media stations' delivering digital downloads at retail, said, "We've been using RocketStream to seamlessly transmit files throughout our deployments in North America and Asia. The powerful acceleration and encryption of RocketStream enable us to effortlessly provide up-to-date, dynamic media content to point-of-use locations."

"The very large number of beta registrants, which greatly exceeded our expectations, underscores the demand for an economical alternative to FTP and high-priced hardware accelerators," said Scott Fairbairn, CEO of RocketStream. "We are grateful to all of those who participated in the beta program and provided valuable feedback."

Enterprise users can now visit www.rocketstream.com to obtain copies of RocketStream, including a free P2P version of RocketStream Station.

About RocketStream, Inc.

RocketStream develops cross-platform technologies and solutions to enhance collaboration, file transfer, and media delivery over any IP-enabled network including LAN, WAN, satellite, and mobile communication infrastructures. Founded in 2002, the company has developed scalable servers and cross-platform client implementations that support high-concurrency message routing and secure delivery of digital payloads over its proprietary protocol. RocketStream is a subsidiary of parent company Zeros & Ones, Inc. (OTCBB: ZROS). More information can be found at www.rocketstream.com and www.zerosones.com.

Safe Harbor

This news release contains forward-looking statements, including but not limited to, those that refer to the company's future development plans or operating results. Actual results could differ materially from those anticipated due to risk factors that include, but are not limited to, lack of timely development of products and services; lack of market acceptance of products, services and technologies; inadequate capital; adverse government regulations; competition; breach of contract; inability to earn revenue or profits; dependence on key individuals; inability to obtain or protect intellectual property rights; inability to obtain listing for the company's securities; lower sales and higher operating costs than expected; technological obsolescence of the company's products; limited operating history and risks inherent in the company's markets and business.


For additional information:
Zeros & Ones, Inc.
(800) 710-ONES


SOURCE: RocketStream, Inc.

Carrizo Oil & Gas Announces Reserves Reach Record 210 Bcfe, Replacing 607 Percent of 2006 Production; Quarterly and Annual Production Reach Record Levels

Year-end proved reserves were a record 210 Bcfe based on reports from Carrizo's third-party reserve engineers. This is an increase of 39 percent (net of 2006 production of 11.7 Bcfe) over the year-end 2005 proved reserves of 150.6 Bcfe. Year-end PV-10 value was $394 million, based upon average posted prices for natural
gas and oil of $5.40 per Mmbtu and $59.25 per Bbl, respectively.

These additions resulted in the Company replacing 607 percent of 2006 production.

Barnett Shale reserves increased 64.5 Bcfe, or 79 percent, to 146.6 Bcfe. Gulf Coast reserves decreased slightly from 26.0 Bcfe to 25.8 Bcfe, almost replacing its production of 7.3 Bcfe. Camp Hill reserves decreased 5.0 Bcfe, or 12 percent, from 42.5 Bcfe to 37.5 Bcfe, primarily due to a small reduction in the net acreage under lease. Efforts are underway to reacquire these leases.

Production

Production during the fourth quarter of 2006 was a record 3.66 Bcfe (39.7 Mmcfe/d), or 33.7 percent above the 2.73 Bcfe (29.7 Mmcfe/d) of production in the fourth quarter 2005 and 28.0 percent above the third quarter 2006 production. Estimated annual production for 2006 reached a record level of 11.7 Bcfe (32.1 Mmcfe/d), or 21.8 percent higher than the 9.6 Bcfe (26.3 Mmcfe/d) of production in 2005. The Company estimates that fourth quarter 2006 sales prices, including the effect of hedging activities, averaged approximately $6.76 per Mcf and $59.15 per barrel. The natural gas sales price was benefited $0.59 per Mcf by hedging activities. The oil sales price was benefited $0.06 per Bbl by hedging activities. Approximately 88 percent of fourth quarter production was natural gas, with 87 percent of total 2006 production being natural gas.

Carrizo Oil & Gas, Inc., is a Houston-based energy company actively engaged in the exploration, development, exploitation and production of oil and natural gas primarily in proven onshore trends along the Texas and Louisiana Gulf Coast regions and the Barnett Shale area in North Texas. Carrizo controls significant prospective acreage blocks and utilizes advanced 3-D seismic techniques to identify potential oil and gas reserves and drilling opportunities.

Statements in this news release, including but not limited to those relating to reserves, sales, the Company's or management's intentions, beliefs, expectations, hopes, projections, assessment of risks, estimations, plans or predictions for the future including potential effects or timing, timing of completion and drilling of wells and other statements that are not historical facts are forward looking statements that are based on current expectations. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that these expectations will prove correct. Important factors that could cause actual results to differ materially from those in the forward looking statements include delays and uncertainties that may be encountered in connection with the results and dependence on exploratory drilling activities, operating risks, oil and gas price levels, land issues, availability of equipment, weather and other risks described in the Company's Form 10-K for the year ended December 31, 2005, and its other filings with the Securities and Exchange Commission.

Note Regarding Reserve Replacement Ratio

Management uses the reserve replacement ratio as an indicator of the Company's ability to replenish annual production volumes and grow its reserves, thereby providing some information on the sources of future production. Management believes reserve replacement information is frequently used by analysts, investors and others in the industry to evaluate the performance of companies like Carrizo. The reserve replacement ratio is calculated by dividing the sum of reserve additions from all sources (revisions, extensions, discoveries, and other additions and acquisitions) by the actual production for the corresponding period. The Company does not use unproved reserve quantities in calculating the reserve replacement ratio. It should be noted that the reserve replacement ratio is a statistical indicator that has limitations. As an annual measure, the ratio is limited because it typically varies widely based on the extent and timing of new discoveries and property acquisitions. Its predictive and comparative value is also limited for the same reasons. In addition, since the ratio does not take into consideration the cost or timing of future production of new reserves, it cannot be used as a measure of value creation. The ratio does not distinguish between changes in reserve quantities that are producing and those that will require additional time and funding to begin producing. In that regard, it might be noted that the percentage of the Company's proved developed reserves increased from approximately 35 percent in 2005 to approximately 40 percent in 2006. The reserve replacement ratio for 2005 was 530 percent.

Carrizo Oil & Gas, Inc. B. Allen Connell, Director of Investor Relations Paul F. Boling, Chief Financial Officer (713) 328-1000
Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20030523/CRZOLOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com

Source: Carrizo Oil & Gas, Inc.