Key Energy Services has agreed to sell all of its oil and gas properties for $19.7 million. The company expects to use $12.4 million of the proceeds from the sale to pay off its volumetric production payment and to unwind related hedges, resulting in net cash proceeds of $7.3 million. It currently expects to record an after-tax charge of $7.8 million. For the six months ending June 30, the oil and gas properties contributed revenue of $2.9 million and a net loss of $0.5 million. CEO Francis D. John said the company is focused on “developing and enhancing its production services capabilities and will seek to exit those businesses that do not meet these objectives. Our oil and gas operations are not core to our business and, in fact, compete with some of our customers. Therefore, we have elected to exit this business. In addition, the sale of these properties will provide Key with additional cash that will be used for debt reduction and/or expansion of our rental tool operations.” Key is the world’s largest rig-based, onshore well service company and owns 1,492 well service rigs, 2,295 oilfield service vehicles and 76 drilling rigs.

Williams Energy Partners LP. said it will begin doing business as Magellan Midstream Partners LP. on Sept. 1. In addition, the partnership’s common units will begin trading on the New York Stock Exchange under the ticker symbol “MMP” on that date. “I believe our new name Magellan will project the same positive characteristics of integrity, customer service and achievement that have become synonymous with Williams Energy Partners,” said Don Wellendorf, CEO. After going public in Feb. 2001, the partnership has acquired $1.1 billion of assets and has increased its distribution each quarter for a total distribution increase of 48.6%. Until recently, Williams was the majority equity owner. However, Williams sold its 54.6% interest in the partnership in June 2003 to a new entity owned jointly by private equity firms Madison Dearborn Partners LLC and Carlyle/Riverstone Global Energy and Power Fund II, LP.

Marathon Oil announced a discovery on the Perseus prospect in Viosca Knoll Block 830 in the deepwater Gulf of Mexico. The discovery well is located in 3,376 feet of water, 150 miles southeast of New Orleans and five miles from the existing Petronius platform. The discovery well was drilled to a total measured depth of 13,134 feet and encountered 166 net feet of oil pay. The Perseus discovery is expected to begin production in 2005 and extend the Petronius production profile. Petronius is currently producing at an average of 60,000 b/d of oil and 100 MMcf/d of gas.

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