Williams said it closed the previously announced agreement to repurchase preferred shares held by a wholly owned subsidiary of MidAmerican Energy Holdings Co. Williams redeemed all of the outstanding 9-7/8% cumulative-convertible preferred shares for $289 million, plus $5.3 million for accrued dividends. In March 2002, Williams sold the 1.5 million preferred shares to MidAmerican in a $275 million transaction. It repurchased the preferred shares with proceeds from a private placement of 5.5% junior subordinated convertible debentures due 2033. The new convertible debentures provide Williams with more favorable terms, which on an annual basis result in $17 million in lower after-tax carrying costs compared with the preferred convertible shares Williams repurchased. The company also closed its previously announced underwritten public offering of 8.625% senior unsecured notes due 2010. Williams will use the net proceeds from the $800 million offering to improve corporate liquidity, for general corporate purposes, and for payment of maturing debt obligations, including the partial repayment of the company’s senior unsecured 9.25% notes due March 2004.

Tejas Western Corp. affiliate Savannah Energy Inc. reported Thursday that it has engaged Dallas, TX-based Energy Spectrum Advisors Inc. to act as its exclusive financial advisor to explore strategic alternatives for the company. Savannah Energy currently operates gross daily production of approximately 18 MMcf of natural gas and 600 barrels of condensate from 75 wells in Tarrant, Denton, Wise, Montague, and Clay Counties, TX. The majority of the production is from the Barnett Shale, and the company holds in excess of 10,000 acres. Netherland, Sewell & Associates Inc. is currently finalizing a reserve summary that includes significant undeveloped reserves. In July, data regarding the company will be available at www.energyspectrum.com under Current Transactions. Interested parties can contact Ben Davis at Energy Spectrum at ben.davis@energyspectrum.com or (214) 987-6122.

EnCana Corp. agreed to sell its remaining 3.75% interest in the Syncrude project, the world’s largest producer of crude oil from oil sands, to Canadian Oil Sands Ltd for C$417 million. In February 2003, EnCana sold an initial 10% interest in Syncrude to Canadian Oil Sands for $1.070 billion. At that time, Canadian Oil Sands acquired an option to purchase, on similar terms and prior to year-end, EnCana’s remaining 3.75% share and an overriding royalty. That option has now been exercised, bringing total proceeds from the sale to $1.487 billion. “This divestiture of Syncrude exemplifies EnCana’s focus on premium-growth, high-return assets. Our investments are targeted to high-working- interest, operated, conventional oil and gas properties where we believe we can efficiently apply our core competencies, manage the pace of development and achieve the lowest costs in industry,” said CEO Gwyn Morgan. “Despite our sale of these Syncrude interests, EnCana continues to have an ambitious growth plan for developing our leading position in in-situ oilsands. Our high quality oilsands investments will focus on our 100% owned and operated lands at Foster Creek and Christina Lake, where we are applying leading-edge steam-assisted gravity drainage (SAGD). By early in 2004, production is expected to grow to more than 30,000 bbl/d.

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