Duke Energy Corp.’s board of directors has elected Fred J. Fowler as president and chief operating officer, reporting directly to Chairman and CEO Richard B. Priory, the company announced last Monday. Fowler had been the company’s group president for energy transmission since 1997, where he oversaw Duke Energy’s interstate natural gas pipelines and Duke Energy Field Services. In the “new executive role,” Fowler will be responsible for the operations of Duke Energy’s energy businesses, including Duke Power Co., Duke Energy Gas Transmission, Duke Energy Field Services, Duke Energy International, Duke Energy Trading and Marketing and Duke/Fluor Daniel, according to the Charlotte, NC-based energy company. Fowler, a veteran of the energy business for nearly 35 years, has worked at Panhandle Trading Corp., been president of Trunkline Gas Co., president of Texas Eastern Transmission Corp. and group vice president of PanEnergy Corp. Duke Energy was created in 1997 as a result of the merger of PanEnergy and Duke Power. He currently serves as chairman of the board for the Interstate Natural Gas Association of America, which represents interstate gas pipelines, and serves on the board of Texas Eastern Products Pipeline Co.

Marking the international company’s first venture into the United States, Vancouver-BC-based Valkyries Petroleum Corp. (previously known as Santa Catalina Mining) said it has paid approximately US$1.1 million to acquire a major share in a large natural gas exploration project in one of the newest major gas producing regions in South Texas. Located in the prolific Queen City gas trend, the project encompasses a large land position of over 12,000 acres. In recent years, the trend has yielded significant gas discoveries for operators such as Chevron in the vicinity of the 120 Bcf Mestena Grande field. Valkyries said the play consists of deltaic Queen City sands trapped along a regional fault trend. The company added that individual wells directly on trend produce an average of 5 MMcf/d and provide “excellent analogues” for prospects in the play area. Valkyries said new 3D seismic has identified several “strong prospects” on its newly acquired property that range in size potential from 7 to over 30 Bcf of gas. The company said it plans to drill two wells in the first quarter of 2003. Located in Duval and Jim Hogg counties, TX, the Queen City plays are held by a private company. VPC is acquiring 75% of the company’s various interests in these concessions in exchange for paying 75% of the lease acquisition cost and the drilling of two exploration wells at an estimated drilling cost of US$2 million. Hill said Valkyries is “still one of the elephant hunters” out there that is looking for big prospect acquisitions and development deals. “What we are looking for from this play is really cash generation,” Hill told NGI. “We are hoping to generate somewhere between US$5-8 million a year in cash flow.”

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