Koll, here's 20mmcfd shut off. Wonder how many others are doing this?
Tom Brown, Inc. Provides Update on Outlook for Third Quarter And Full Year 2002 Results
Thursday September 19, 7:31 pm ET
DENVER, Sept. 19 /PRNewswire-FirstCall/ -- Tom Brown, Inc. (NYSE: TBI - News) today announced it currently has curtailed approximately 20 million cubic feet of natural gas production per day (Mmcfpd) in the Rocky Mountains.
The Company has elected to reduce its Rocky Mountain production as a result of extremely low natural gas prices in this region. Rockies' natural gas price has traded at a steep discount to NYMEX (Henry Hub, Louisiana) for the second half of 2002. The Colorado Interstate Gas (CIG) index for September was $1.09 per million British Thermal Unit (MMbtu), which was $2.20 per MMbtu below NYMEX. Rockies natural gas has recently traded as low as $0.60 per MMbtu. The Company's strong operational performance is currently anticipated to offset the effect of the announced curtailment and, as such, the Company is not changing its production guidance for the third quarter of 2002. If prices continue to be low, the Company may curtail production into the fourth quarter of 2002 which may result in a change in future guidance.
Jim Lightner, Tom Brown, Inc.'s Chairman, CEO and President stated, "Due to the current low Rockies gas price environment and major disconnect with NYMEX, we believe it is in the best interest of our shareholders to curtail production. The prolific gas basins in the Rockies have experienced significant volume growth over the last five years and remain the country's best domestic onshore option for providing abundant supplies of clean burning natural gas for a growing America. Additional pipeline take-away capacity is urgently needed or this important domestic resource may not be available in suitable quantities to meet future demand. Rocky Mountain exploration and production companies have done a tremendous job in providing this volume growth. It is now up to the Federal and State governments and pipeline companies, in conjunction with producers, to resolve the issues regarding take-away capacity limitations. We remain fully committed to the potential of the Rocky Mountain region and confident that these issues will be resolved in the future." |
