Midcoast Energy Resources said its wholly owned Louisiana
intrastate pipeline subsidiary, Creole Gas Pipeline, has reached a
long-term agreement with Chevron Chemical Co. to provide gas supply
to Chevron's Oak Point plant in Belle Chasse, LA. The five-year
pact calls for Creole to provide Chevron with 9,500 MMBtu/d of gas,
or about 90% of the total requirements of the Oak Point plant.
Creole will construct a new seven-mile pipeline to provide the
service, which will start in September. Creole provides gas
transportation services to major industrial customers in the New
Cotton Valley Resources said it is merging with Crown Partners
L.L.C. Minerals Division through an exchange of common shares and
warrants whereby Cotton Valley shareholders will retain 27% and
Crown shareholders 73% of the combined company. Cotton Valley's
President Jim Hogue said Crown has an interest in 360 producing oil
and gas wells and 600 undeveloped locations in Arkansas,
California, Louisiana, Montana, Oklahoma, Texas and Wyoming. The
producing properties cover in excess of 175,000 gross acres.
Crown's interests currently contain proved producing and
behind-pipe reserves of 9.4 Bcf of gas and 200,000 barrels of oil
with a 10% present value of $10 million. Current management of
Cotton Valley has agreed to resign upon initial funding at which
time directors and officers appointed by Crown will take over day
to day operations and management.
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