Moneta Energy Services Ltd.

Moneta Energy Services Ltd.

December 14, 2007 12:41 ET

Moneta Energy Services Will Be Taking Producers Old Reservoirs and Turning Them Into New Natural Gas Storage

CALGARY, ALBERTA--(Marketwire - Dec. 14, 2007) - Recently-formed Moneta Energy Services has entered the dynamic fast pace natural gas marketplace to capture value embedded in the commodity by helping producers shed depleted oil and gas fields and better deal with natural gas prices that have recently seen wild fluctuations. The new Canadian-based company, founded by gas marketing services veteran Rex Kary, is focused on developing and/or acquiring infrastructure within the Canadian energy sector to extract additional value by trading the commodities that it stores and ships in its own assets.

Moneta is backed by the financial strength of its partners - Yorktown Energy Partners LLP, a $2.7 billion private equity fund solely devoted to investment in energy assets, and E&C Capital, the energy and commodities private equity group of BNP Paribas, a global bank that is a leading financial institution in the energy and commodity sectors. Moneta will use this capital to acquire and build infrastructure including natural gas storage facilities and pipelines to facilitate trading in gas futures.

"We have been given a mandate to develop a Canadian energy infrastructure organization," says Rex Kary, who leads Moneta's hand-picked management team. "Our partners, who are in the business of investing significant sums of money with known management teams, want us to become a significant natural gas storage player in Canada."

One component of the company's business plan is to partner with producing companies through the purchase of their gas production as well as their depleted gas fields, further developing them into underground storage. The company will also work with utility companies to build storage in underground salt caverns and manage their gas price exposure by optimizing the risk associated with trading in gas futures.

Moneta plans to use underground reservoirs to store gas by putting it back into the ground in order to sell the gas in a period of greater demand and higher prices.

When Moneta takes over these underground reservoirs, it eliminates the producer's environmental risk of abandonment and, more importantly, monetizes the last remaining reserves, accelerating the producer's return from a particular gas field. "Their dollars are best spent drilling and finding new reserves, not trying to squeeze the last ounce of gas from the ground," Kary says. "We, on the other hand, need the gas in the ground to operate the storage field. It is a win-win relationship."

Alberta is an international hub for gas production, exporting 13 billion cubic feet of natural gas daily, with more physical gas traded in Alberta than any other location in North America. A simple example of gas storage utilization for trading in the commodity market is purchasing lower priced gas in summer months and selling during peak winter months.

Moneta Energy Services also offers producers and industrial users much needed assistance in managing gas prices at a time of very low or very high prices in the marketplace. "We offer producers and large industrial/commercial users energy management solutions so they aren't exposed to wide price fluctuations and can manage their business much better," says Kary

"The price of gas in the last few months has been very low and some wells can no longer produce economically, creating a financial hardship for many natural gas producers," Kary says. "With our financial strength, we can structure a variety of arrangements with producers to help ease the pain of the current low natural gas prices."

Moneta Energy Services Ltd. has combined industry knowledge and expertise with patient and persistent financial depth with a goal to become one of the leading asset-backed energy services companies in North America.

Contact Information

  • Moneta Energy Services Ltd.
    Alyn Edwards
    (604) 689-5559 or Cell: (604) 908-7231
    Moneta Energy Services Ltd.
    Rex H. Kary
    (403) 770-4156