Peoples Marches On With Production Growth
Peoples Energy Production Co., the affiliate of Peoples Gas, extended a year-long buying binge Thursday, by obtaining 70% of Ensign Operating Co.'s Arkoma basin assets for $15 million. The production arm of Peoples Energy has now spent $65 million in partnerships and acquisitions since the fall of 1998.
"This investment represents a continuation of our strategy to acquire and invest in proved producing properties with upside development potential in certain producing basins,'' said Thomas M. Patrick, COO of Peoples Energy. "The Ensign properties contribute economic value and long life reserves to our growing portfolio of oil and gas holdings."
The properties include 154 wells and other property interests. Rod Sierra, a Peoples energy spokesman, said the properties are expected to produce 1.219 Bcf for FY 1999 and 1.865 Bcf in FY 2000.
Peoples said it is not done shopping for production acquisitions. Last October, the company invested $15 million for 60% of NBB Energy Partners' Texas and Louisiana onshore Gulf Coast properties. In April, Peoples Energy Production entered into a $30 million property acquisition partnership with KN Energy, called Enervest Energy. The deal also included $5 million for six Gulf Coast properties, which Peoples now owns outright. In total, the company produces 5.1 Bcf/ year.
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