Peoples Energy Production Co., the affiliate of Peoples Gas,extended a year-long buying binge Thursday, by obtaining 70% ofEnsign Operating Co.’s Arkoma basin assets for $15 million. Theproduction arm of Peoples Energy has now spent $65 million inpartnerships and acquisitions since the fall of 1998.

“This investment represents a continuation of our strategy toacquire and invest in proved producing properties with upsidedevelopment potential in certain producing basins,” said Thomas M.Patrick, COO of Peoples Energy. “The Ensign properties contributeeconomic value and long life reserves to our growing portfolio ofoil and gas holdings.”

The properties include 154 wells and other property interests.Rod Sierra, a Peoples energy spokesman, said the properties areexpected to produce 1.219 Bcf for FY 1999 and 1.865 Bcf in FY 2000.

Peoples said it is not done shopping for productionacquisitions. Last October, the company invested $15 million for60% of NBB Energy Partners’ Texas and Louisiana onshore Gulf Coastproperties. In April, Peoples Energy Production entered into a $30million property acquisition partnership with KN Energy, calledEnervest Energy. The deal also included $5 million for six GulfCoast properties, which Peoples now owns outright. In total, thecompany produces 5.1 Bcf/ year.

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