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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: redfish who wrote (5740)	5/6/2004 1:51:03 PM
From: mishedlo	Read Replies (5) \| Respond to of 116555

Goldman buys natgas production from Dominion Thursday, May 6, 2004 6:41:21 PM NEW YORK (AFX) - Betting on rising prices, Goldman Sachs Thursday agreed to buy 83 billion cubic feet of natural gas from Dominion Resources over the next 4 years Under the terms of the agreement, called a volumetric production payment, Goldman will pay a total of $413 million in cash for the output, which will come from more than 1,600 wells across the country Dominion said it's selling the gas for $5 per thousand cubic feet, and will recognize the revenue as the gas is produced and delivered. The agreement allows Dominion to lock in a current strong price over the four year life of the deal, and it will retain control of the wells, including future production and any production over the contracted amount. Goldman will take delivery of the gas at various pooling points in several states the companies said. Initially, Goldman will receive about 100 million cubic feet per day, declining to about 37 million cubic feet per day by the end of the contract Dominion said the arrangement will reduce its natural gas reserves by 83 billion cubic feet, the amount it's selling to Goldman Goldman shares slipped 2.1 percent, and Dominion shares were flat in early afternoon trading fxstreet.com