NGI The Weekly Gas Market Report
PetroLogistics Natural Gas Storage LLC is holding an open season through April 11 for 1 Bcf of firm gas storage service at its proposed 6 Bcf salt dome storage cavern, which will be located at the Choctaw storage facility in Iberville Parish, LA. The open season will offer contracts for up to 20 years. BG Energy Merchants LLC is the anchor customer of the project, and it has executed a precedent agreement under which it will contract for a minimum of 5 Bcf of firm storage capacity and associated injection and withdrawal rights, according to PetroLogistics. BG has agreed to purchase any firm capacity remaining after the open season is completed. PetroLogistics intends to file for a facility certificate with the Federal Energy Regulatory Commission following the open season. Certificate authority is expected by Nov. 1, and facilities could be in service by Sept. 1, 2008, the company said. The facility and header pipeline will be capable of receiving and delivering gas from and to Southern Natural Gas Co., Texas Eastern Transmission Corp., Florida Gas Transmission Co., Bridgeline Pipeline System and CrossTex LIG Pipeline Co. The facility will be capable of storing up to 6 Bcf, receiving 150-375 MMBtu/d for injection and delivering up to 300 MMBtu/d. To review the offer sheet and bid information, click here. For more information, contact Nathan Ticatch, PetroLogistics Natural Gas Storage LLC, 909 Fannin, Suite 2630, Houston, TX, 77010; or via email at email@example.com.
Calgary-based Rider Resources Ltd. will spend C$208 million (US$179.7 million) to acquire some natural gas assets in west-central Alberta, where it concentrates its exploration efforts. Two gas processing facilities in Wapiti South are included in the purchase agreement, which was completed with an undisclosed seller. The transaction, expected to close May 15, is expected to add about 44,000 net undeveloped acres to Rider’s leasehold. The deal also will increase its net undeveloped land base by 40% to 152,000 net acres. The acquired assets, located in the Wapiti South and Ferrier areas, currently produce 4,000 boe/d, but Rider said it will restrict output in the Ferrier area to maximize recovery, resulting in total production of about 3,6000 boe/d (17 MMcf/d of gas and 770 b/d of natural gas liquids). Proven reserves are estimated at 8.1 million boe, and proven plus probable reserves are estimated at 11.9 million boe. Operating costs are estimated at C$3.25/boe.
Approximately 98% of voting stockholders of Houston-based Whittier Energy Corp. have approved the buyout of Whittier by Sterling Energy plc for an estimated $188 million, including $11 per Whittier share plus assumption of $43 million of Whittier liabilities. The merger was expected to close March 28. Whittier Energy is an independent oil and gas exploration and production (E&P) company with operations in Texas, Louisiana and Mississippi. The company also holds nonoperated interests in fields located in the Gulf Coast, Oklahoma, Wyoming and California. Sterling Energy is an independent E&P company formed in October 2002 and listed on the Alternative Investment Market of the London Stock Exchange. Sterling has built a portfolio of production assets in the Gulf of Mexico and offshore West Africa, and has an active exploration program focused predominantly on Africa. Sterling has expanded its U.S. operations to include onshore Texas and the Louisiana Gulf Coast.
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