In an effort to strengthen its liquidity in these tumultuous times for the energy industry, San Jose, CA-based Calpine Corp. said Thursday that it has entered into an agreement to sell certain non-strategic oil and gas properties for $81 million (C$125 million). Calpine inked the deal with NAL Resources on behalf of NAL Oil & Gas Trust and another institutional investor.

Located in central Alberta, the assets represent 60 Bcfe of net proved reserves, of which 70% are oil and liquids. Calpine estimated current net production from the assets at 19 MMcfe/d. The oil properties are located 25 miles west of Red Deer and include 18,845 developed acres and 9,920 undeveloped acres, with more than 225 producing wells.

“Calpine remains committed to strengthening liquidity while retaining those assets that will continue to provide long-term value to our shareholders and to Calpine’s core power generation business,” stated Bob Kelly, Calpine CFO. “While we continue to evaluate opportunities for the sale of other non-strategic assets, Calpine Natural Gas remains an active participant in the North American natural gas and power markets.”

Under the terms of the agreement, approximately 42% of the acquisition is subject to rights of first refusal, which expire on Sept. 28. The balance of the transaction is expected to close Friday.

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