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Dominion Sells British Columbia Oil and Gas Producing Assets for $476M

Dominion Sells British Columbia Oil and Gas Producing Assets for $476M

Dominion Resources last week said it completed the sale of the majority of its natural gas and oil assets in British Columbia for an estimated C$584 million (US$476 million). The sale consisted of five separate transactions.

The properties sold produce approximately 30 Bcf net of natural gas annually, the Richmond, VA-based energy company said. The sale assets are primarily those acquired in the 1999 purchase of Remington Energy Ltd.

The buyers included both U.S. and Canadian companies. A Dominion spokeswoman, however, said the company was not disclosing the identities of the buyers at this time.

"This is a timely sale because values for Canadian natural gas and oil assets are strong," said Thomas E. Capps, chairman and CEO of Dominion Resources. "We'll use the proceeds to re-pay debt."

Dominion is one of the nation's largest producers of energy, with about 6 Tcf equivalent of proved natural gas reserves and 7,900 miles of gas transmission pipeline. It also operates the nation's largest underground gas storage system with more than 960 Bcf of storage capacity.

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