PanCanadian's New Assets Add Production, Reach
Montana Power Co. is no longer in the oil and gas business, after closing
last week on the sale of some of its energy assets to PanCanadian Petroleum
Ltd. for $475 million in a combination of cash and credit. The assets include
oil, natural gas and gas liquids exploration, production and marketing
companies in the United States and Canada.
In March, Butte-based Montana Power announced it would sell all of its
energy assets (see NGI, April 3). Along with
the oil and gas assets, it plans to sell its independent power production
businesses and electric and natural gas utility. It now plans to zero in
on fiber-optic and wireless voice, data and video transport under its Touch
Current daily production on the properties is 94 MMcf of gas and 3,800
bbl of oil and gas liquids, which will increase PanCanadian's daily gas
production to more than 1 Bcf.
"The Montana Power oil and gas assets and staff have been smoothly
and quickly incorporated into PanCanadian," said COO Dave Boone. "We
have confirmed attractive investment opportunities on these properties,
which complement our strong Canadian base. This marks the beginning of
a major opportunity to apply our expertise to the exploration and development
of new core properties on North America's Great Plains."
For the rest of the year, PanCanadian plans to complete fieldwork, including
connecting more than 40 gas wells. It also wants to evaluate additional
exploration and development opportunities. The Calgary company will incorporate
most of the acquired properties into a new business unit, which will contain
the properties and production in southern Alberta and Saskatchewan, northern
Montana, Colorado, Wyoming and Oklahoma. The unit will maintain regional
offices in Butte and Denver.
Carolyn Davis, Houston
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