McMoRan Exploration Co. said during an investor conference last week that it intends to file an application with the U.S. Coast Guard in the first quarter for its proposed Main Pass Energy Hub offshore Louisiana liquefied natural gas (LNG) project. Originally conceived in 2001, the $500 million, 1 Bcf/d LNG terminal at Main Pass Block 299 would be developed at a discontinued sulfur mining operation at one of the largest platform configurations in the Gulf, about 16 miles east of the mouth of the Mississippi River in 210 feet of water (see NGI, Oct. 15, 2001; July 28, 2003). The energy hub would receive, process, store and distribute LNG and natural gas. To date, the company has completed conceptual engineering for the project and intends to file a license application with the U.S. Coast Guard in the first quarter of 2004. It noted that there is significant interest regarding supply and distribution for the project and it is advancing commercial arrangements in parallel with the permitting process.

Denver-based Medicine Bow Energy Corp. said Thursday that it has acquired 100% of the capital stock of Edison Mission Energy Oil & Gas (EMEOG) for approximately $100 million. EMEOG is a subsidiary of Edison Mission Energy Fuel, which is a subsidiary of Edison Mission Energy, an Edison International company. The acquisition closed on Jan. 7. EMEOG’s principal asset is a 30%, direct and indirect, equity interest in Four Star Oil & Gas Company (FSOG), an exploration & production company with assets located in the Rocky Mountains, Mid-Continent and Gulf Coast regions of the United States. “Through the Edison Mission Energy Oil & Gas acquisition, our shareholders have acquired a significant equity position in a privately-held energy company with very attractive assets,” said Mitchell L. Solich, Medicine Bow Energy Corp.’s CEO. “The investment opportunities and substantial free cash flow captured by this acquisition advances our mission of creating value for our shareholders.” Medicine Bow Energy contracted Rivington Capital Advisors LLC to act as its exclusive financial advisor for the transaction.

Range Resources Corp. has raised its 2004 capital budget 21% to $126 million, which will exclude acquisitions. The Fort Worth, TX-based independent oil and gas company said that the new budget includes $109 million for drilling and recompletions, $15 million for land and seismic and $2 million for the expansion and enhancement of gathering systems and facilities. In 2004, Range set a goal to drill 409 gross (237 net) wells and to undertake 35 gross (29 net) recompletions. Approximately half the budget has been allocated to the Southwest region, including the Permian Basin, the Midcontinent and East Texas, with the remaining 50% equally divided between the Gulf Coast and Appalachia regions. John H. Pinkerton, Range’s president, said the company expects that reserve replacement will comfortably exceeded 200% for the year. “The increase in the 2004 capital budget reflects opportunities generated by last year’s drilling and acquisitions, strong energy prices, the company’s enhanced financial strength and an attractive project inventory. We expect the 2004 drilling budget will allow us to continue to more than replace production, to fuel a steady increase in production and, based on current oil and gas prices, to generate exceptional rates of return,” he added.

To fulfill the terms of El Paso Corp.‘s western energy settlement, the company last Tuesday priced an offering of 8.8 million shares of common stock at a public offering price of $8.35 per share — 50 cents higher than the company had announced last month. Under the terms of El Paso’s deal to settle charges that it withheld natural gas transportation capacity and supply during California’s energy crisis, the company was required to issue about 26.4 million shares. El Paso had issued about 17.6 million common shares last November and December. The latest offering was expected to give El Paso nearly $73.4 million. The money then will be deposited to benefit the settling parties. The joint book running managers for the offering were J.P. Morgan Securities Inc. and Deutsche Bank Securities Inc.

As one of its primary segments among large industrial customers needing energy services, San Diego-based Sempra Energy Solutions announced last Thursday it had secured another series of four multi-year, multi-million-dollar merchant energy services contracts with federal facilities in four states — California, Colorado, Florida and Utah — and Puerto Rico. In total, the contracts are estimated to be worth $46.5 million, the company said. Included in the package are: San Diego Veterans Affairs Healthcare System; Evans Army Hospital at Fort Carson, CO; Veterans Integrated Service Network 8 in Florida and Puerto Rico; and Hill Air Force Base in Ogden, UT. The largest deal is in Sempra’s headquarters city of San Diego — a 10-year, $17.9 million project to replace an existing cogeneration system with one that is 40% more efficient than power from the grid, saving an estimated $19.3 million over the life of the contract.

Shell Energy Services said it has transferred 70,000 Ohio retail natural gas sales accounts from U.S. Power and Gas (USP&G), a retail energy marketer that has decided to put its Ohio operations on hold. Shell said the customer assignments, all of which were in the Dominion East Ohio (DEO) service territory, were completed on Dec. 31, 2003. No terms of the transfer were announced. Shell said it now serves about 400,000 retail gas customer in Ohio and Georgia and has been expanding its operation since entering the retail business in 1998.

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