NEWS BULLETIN

April 09, 2010 --- Vol. 16, No. 27April 2010

Enstar agrees new natural gas supply contract with Marathon

Enstar Natural Gas Co. has requested Regulatory Commission of Alaska approval of a new gas supply contract with Marathon Alaska Production that will fill 90 percent of Enstarís current shortfall in contracted supplies in 2011 and 2012.

The new contract provides for a supply of 6.8 billion cubic feet of gas in 2011 and 7.2 billion cubic feet in 2012, while Enstarís projected gas supply shortfall is 7.9 billion cubic feet and 8.6 billion cubic feet in those years, Enstar said in a letter to the commission.

The price of the gas would be based on a three-month average of natural gas futures on the New York Mercantile Exchange, in a similar pricing mechanism to a gas supply contract between Enstar and Anchor Point Energy LLC that RCA approved in 2009 for gas from the North Fork gas field in the southern Kenai Peninsula. There is a price floor of $6.85 per thousand cubic feet and a price ceiling of $9.70 per thousand cubic feet for the new Marathon contract.

Revenue: State expected to collect $5.6B in FY 2010

The Alaska Department of Revenue is projecting the state will collect $5.6 billion in unrestricted revenue in fiscal year 2010 and $5.3 billion in FY 2011.

The spring revenue forecast, released today, is an increase from the fall forecast, which projected unrestricted revenues of $4.8 billion for FY 2010 and $5.2 billion for FY 2011. The February interim forecast projected $5.4 billion for FY 2010.

The department is now forecasting that Alaska North Slope crude oil prices will be $75.32 per barrel in FY 2010 and $77.65 per barrel in FY 2011, compared to $66.93 and $76.35 respectively in the fall 2009 forecast.

Revenue from oil and gas production is expected to provide more than 88 percent of the stateís unrestricted revenue through FY 2019.

ANS oil production is forecast at approximately 650,000 barrels per day in FY 2010, a 6.2 percent decline from FY 2009.

Editorís Note: See full stories in April 18 edition, available online to subscribers at noon, Friday, April 16, at www.PetroleumNews.com


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