Boston-based Honeoye Storage said it is offering 160,000 dekatherms of firm storage space at its Rochester, NY, gas storage field for a term ending Dec. 15. Injections can begin immediately at a maximum daily rate of 8,000 Dth/d. The maximum withdrawal rate on the contract would be 4,000 Dth/d from Nov. 1 through Dec. 15. Honeoye will provide all the cushion gas required. The storage field is connected to Tennessee Gas Pipeline east of Rochester. Honeoye is owned by KeySpan, Consolidated Edison and three private developers. For details, go to www.honeoyestorage.com.
Platinum Energy Resources has entered into a definitive agreement to buy Tandem Energy Holdings, an independent oil and gas production company, for $105 million in cash and fees. Platinum said it will be guaranteed $5 million in working capital. Tandem's producing properties are located primarily in Texas and New Mexico with net proved reserves of 8.849 million boe, 64% crude oil and 36% natural gas. Montvale, NJ-based Platinum was incorporated in April 2005 to acquire an operating business in the energy industry. It completed its initial public offering on Oct. 24, 2005, receiving net proceeds of $106 million through the sale of 14.4 million units of its securities at $8 per unit. Platinum holds over more than $105 million in a trust account maintained by an independent trustee, which will be released to the company upon the closing of the merger with Tandem. "Tandem's strong producing properties combined with its development opportunity are a perfect foundation on which to execute our business plan of optimizing profit irrespective of the global energy market's performance," said Platinum CEO Barry Kostiner. "We look forward to building on the attractive value created by Tandem's management."
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