Apache Corp., headquartered in Houston, said Friday it hascompleted its acquisition of Phillips Petroleum Corp.’s Canadianassets for nearly US$490 million. The properties, which areapproximately 59% natural gas, have proved reserves ofapproximately 71.6 MMboe and are located in the Zama area ofNorthwest Alberta. The assets include producing and undevelopedacreage, extensive infrastructure and 3-D and 2-D seismic data.There are approximately 212,000 net developed acres and 275,000 netundeveloped acres, and current production is about 70 MMcf and6,000 bbl of liquid hydrocarbons a day. Average working interest inthe properties is 88%, and Apache will operate 90% of theproduction. It also expects the acquisition to immediately add toearnings per share and cash flow per share. Apache also hascontracted to sell slightly more than half of the Zama properties’gas production, about 60.6 MMcf/d to protect from downside risk andpreserve the upside potential. The price will be set at theCanadian Gas Price Reporter monthly spot index price within acollar with a weighted average floor price of US$4.60/Mcf, and aweighted ceiling of US$6.60 Mcf during 2001 at current exchangerates.

Beginning in February, Columbia Gas of Ohio customers will seean increase in their monthly natural gas bills as a resultincreasing wholesale costs. Columbia filed its regular gas costrecovery (GCR) last week with the Public Utilities Commission ofOhio (PUCO). The GCR is a pass-through to customers of the priceColumbia pays its suppliers for natural gas, which is adjusted on aquarterly basis. Under the new GCR, which is effective throughApril 2001, the bill for the average residential customer using10,000 cubic feet of gas a month will increase from $101 to about$114.

Dominion Peoples filed with the Pennsylvania Public UtilityCommission on Friday for a 20% increase in wholesale gas costs,starting Jan. 1. Dominion Peoples’ regular quarterly adjustmentwill increase the gas cost rate (GCR) from $6.20/MCF to $8.24 forthe months of January, February and March. The average residentialsales customer would pay an average of about $35 more per month fornatural gas as a result of this change.

Piedmont Natural Gas completed its purchase of the natural gasdistribution system serving Gaffney, SC, formerly owned by UnitedCities Gas. Piedmont purchased the system assets for a book valueof $6.6 million. The transaction was approved by the South CarolinaPublic Service Commission (SCPSC), and became effective Jan 1.Piedmont will serve 5,400 natural gas customers in the Gaffneyarea, and 117,000 statewide. It also will continue to maintain alocal Gaffney office and will retain former United Cities’employees. It pledged to keep base rates for service in place for atwo-year period for United Cities’ former customers in Gaffney.

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