Houston-based Hanover Compressor Co., which has already restated the financial results for its last seven fiscal quarters, said its annual reports since going public in 1997 have contained an “error” that makes it appear the company built less equipment than it actually has. The company makes pumps that move natural gas and oil through pipelines and from wells. CFO John Jackson said the company ” inadvertently” omitted the amount of equipment made at an Oklahoma factory, and not including that output, makes it appear that fabrication costs for some compressors were higher than they actually were, he said. Jackson said the error will be corrected in this year’s annual report, and said the correction would not affect prior revenue or earnings. The annual report is expected to be released in early April. Jackson succeeded former CFO William Goldberg in February after Hanover said it would restate its previous earnings as far back as January 2000.

Koch Pipeline Co. is responding to market interest by entertaining bids for its anhydrous ammonia pipeline system. The company said the bid process could result in the sale of the system. “Over the past few years, several companies have approached us to express their interest in the ammonia pipeline system,” said Damon Cox, chief financial officer for Koch Pipeline. “This system is one-of-a-kind, with access to Gulf Coast ammonia production and deep-water import terminals in Louisiana and reaching farmers throughout our nation’s corn belt.” The common carrier pipeline system originates in Taft, LA, and ties into a number of ammonia production facilities in Louisiana. The pipeline supplies fertilizer terminals in Arkansas, Missouri, Illinois, Indiana, Iowa and Nebraska. A Koch spokeswoman said the company’s policy is that “to extent that someone else values something more than we do,” the company is willing to sell. Koch Pipeline has already begun to provide information to interested parties. Companies interested in submitting bid packages should contact Cox at (316) 828-2914 or via e-mail at cox2d@kochind.com.

Gastar Exploration Ltd., headquartered in Mt. Pleasant, MI, is participating in its first deep Trenton-Black River exploration well in the Appalachian Basin. Gastar has a minimum 7.5% working interest position in the Cross #1 well in the Cottontree Field located in Roane County, WV. The well is currently drilling at approximately 6,200 feet with a projected total depth of 10,000-to-10,500 feet. The Cross well is the first of two wells to be drilled in the immediate area of several previous successful Trenton-Black River wells drilled by Columbia Natural Resources (CNR), a NiSource subsidiary. One of these previous wells reported absolute open flow of more than 200 MMcf/d gas upon initial penetration of the Trenton-Black River formation. CNR is participating in the Cross well with a 25% working interest position. Gastar COO J. Russell Porter said his company has identified as many as 100 similarly situated prospects and is planning on a deep drilling program beginning late in 2002 to evaluate at least three other Trenton-Black River plays.

Oklahoma City, OK-based Devon Energy Corp. has issued $1 billion of 30-year notes, the proceeds of which will be used to pay down some of the debt it incurred as a result of its acquisitions of Mitchell Energy & Development Corp. and Anderson Exploration Ltd. The notes, which are due April 15, 2032, were priced at 220 basis points above Treasuries to yield 7.995%. Devon will receive proceeds of about $986 million after underwriting fees and expenses to repay a $3 billion, five-year term loan that it took out to fund portions of the Anderson and Mitchell Energy purchases.

The New York State Board on Electric Generation Siting and the Environment has voted to approve, with conditions, the application of Mirant Bowline LLC to construct a 750 MW generating facility on a site containing two existing electric generating plants at Bowline Point on the Hudson River in the Town of Haverstraw, Rockland County. The board’s decision completes a comprehensive environmental and technical review of the company’s proposal that included two public statement hearings, a public comment period, two site visits and participation by several parties (see Power Market Today, March 13). Mirant Bowline filed an application for a certificate of environmental compatibility and public need in March 2000. No party in the proceeding opposed the construction and operation of the proposed facility, though parties did make recommendations regarding conditions and modifications that should be included in the certificate. The siting board’s written decision detailing the approval in Case 99-F-1164, may be obtained from the DPS web site at www.dps.state.ny.us, or from the commission’s Files Office, 14th floor, 3 Empire State Plaza, Albany, NY 12223; (518) 474-2500.

Cleco Corp., a regional energy services company headquartered in Pineville, LA, and Mirant announced that Cleco will buy Mirant’s 50% interest in the 725 MW plant the companies are building in northeast Louisiana. The deal, which is expected to help Mirant improve its liquidity and strengthen its balance sheet, is expected to close early in the second quarter 2002. The natural gas-fired plant is owned by Perryville Energy Partners LLC, a 50/50 joint venture between subsidiaries of Cleco and Mirant. Under the agreement, Cleco will assume Mirant’s $19.5 million future equity commitment to the project and pay $48 million to retire Mirant’s project debt. Cleco intends to finance the transaction with a combination of new common stock and debt. Currently, the company is planning to issue 1 million shares of common stock. Under a 20-year power sales agreement, Mirant will continue to control output of the plant. Mirant also will be allowed to own and market the plant’s output and supply the natural gas needed to fuel the plant through its marketing and risk management organization. Mirant will transition oversight of the remaining construction to Cleco.

Calgary-based Provident Energy Trust will pay C$72 million (net C$69 million) for a portfolio of five light oil and natural gas producing assets from an undisclosed Canadian independent. The properties are located in southeast Alberta close to Provident’s existing operations, with reserves totaling 40 Bcf and 2.9 million bbl, or about 9.5 MMboe. Daily production is 3,600 boe, consisting of 12.9 MMcf/d and 1,450 bbl/d of oil and natural gas liquids. After the closing, which has an effective date of Jan. 1, Provident’s production will increase to approximately 20,600 boe/d comprised of 47% natural gas and natural gas liquids and the rest in heavy oil and light crude oil. The largest producing property is Retlaw, with 1,753 boe/d, and the other listed properties are Princess, 617 boe/d; Long Coulee, 400 boe/d; Craigmyle, 333 boe/d; and Carmangay, 273 boe/d. Provident is planning a low-risk optimization and exploitation program for the assets this year, and has identified several low-cost recompletion, exploitation and possible infill drilling opportunities. The assets also include 78,000 net acres of undeveloped land. Based on the adjusted purchase price and net of undeveloped land values, the properties were acquired at a cost of approximately C$6.82/established boe of reserves and C$18,055/daily boe of production.

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