Junior exploration and production company Dune Energy Inc. said Friday it will spend $32.8 million to acquire 2,457 gross acres on the Barnett Shale fairway in Denton County, TX from Voyager Partners Ltd. Dune had earlier purchased $31.8 million of Voyager’s Barnett properties. The two-part agreement will add 2,457 more gross acres to Dune’s portfolio. The assets are estimated to contain proved reserves totaling 29.9 Bcfe plus probable reserves totaling 16.1 Bcfe. The acquisition cost is about $109/Mcfe for the proved reserves, and 71 cents/Mcfe for the proved plus probable reserves. Dune purchased $7 million of Voyager’s remaining properties last Tuesday. The agreement Friday provides that the balance of Voyager’s assets, totaling $25.8 million, be acquired by Dune on or before Jan.19. Dune said its obligation to purchase the remaining assets is subject to financing.
Virginia’s State Corporation Commission (SCC) said it will allow Roanoke Gas Co. to impose an interim rate increase on the portion of a customer’s bill that covers operating expenses beginning October 23. The commission said it has scheduled a public hearing for March 29, 2007 on the rate request that will increase the company’s annual revenues by $1.74 million. In its application, Roanoke Gas stated that several components of operating costs are rising faster than customer growth, and the company has lost revenue due to several industrial customers closing or converting to coal, prompting the latest request. According to the SCC, interim rates, based on the company’s request, are temporary and subject to refund with interest pending the commission’s final decision. Roanoke Gas filed its request on Sept. 14. The total revenue requirement that the SCC may approve is limited to the amount requested by Roanoke Gas. However, the commission noted that individual rates and charges it approves following its investigation may differ from those proposed by the company. A public hearing is scheduled for March 29, 2007, before an SCC hearing examiner. Roanoke Gas, a subsidiary of RGC Resources Inc., serves 59,000 residential, commercial, and industrial customers in the Roanoke and Bluefield areas of Virginia.
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