Living up to a commitment to make 2000 the “year of the drillbit,” Apache Corp. said yesterday it will acquire long-livedproducing properties in the Permian Basin and South Texas for morethan $300 million in a definitive agreement with Collins & WareInc., based in Midland, TX.
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Sale of Three Rivers’ Line Gets Green Light
FERC yesterday gave the go-ahead for Equitrans L.P. to acquireall but 26 miles of a 121-mile gas pipeline from Three RiversPipeline Co., a subsidiary of Equitable Resources Inc. Equitranswill purchase the facilities for their net book value of $4.2million.
Barrett Closes In on Piceance Basin Domination
Barrett Resources Corp. announced a purchase and sale agreementto acquire additional working interests in Piceance Basin gasproperties in western Colorado and all the outstanding interest inthe related gas gathering system for $72 million last week.Although the company said multiple sellers were involved, it wouldnot divulge who those sellers were. Closing on the propertypurchases is expected to occur on Dec. 16. Acquisition of thegathering system is subject to regulatory approval, which isexpected in January 2000.
Barrett Closes In on Piceance Basin Domination
Barrett Resources Corp. announced a purchase and sale agreementto acquire additional working interests in Piceance Basin gasproperties in western Colorado and all the outstanding interest inthe related gas gathering system for $72 million. Although thecompany said multiple sellers were involved, it would not divulgewho those sellers were. Closing on the property purchases isexpected to occur on Dec. 16. Acquisition of the gathering systemis subject to regulatory approval, which is expected in January2000.
Industry Briefs
A management group composed of all the corporate officers ofVirginia Gas Co. has presented a proposal to the company’s board toacquire all outstanding shares of the company’s common stock. Underthe proposal, each shareholder would be offered $4 in cash for eachshare. The cash purchase price represents a 33% premium to theclosing price of the company’s shares on Dec. 6. Michael L.Edwards, the company’s president and CEO, leads the managementgroup. The ultimate success of the proposal is contingent on thenecessary approvals of the shareholders, the board and regulators,as well as obtaining the necessary financing. Virginia Gas, basedin Abingdon, VA, is involved in all aspects of the gas businessfrom E&P to pipelines, storage and distribution.
EnerMark Taking Over Western Star
EnerMark Income Fund of Calgary offered to acquire all shares ofWestern Star Exploration Ltd. by way of a take-over bid. WesternStar assets are mainly producing gas properties concentrated in theHanna, Taber and Thornbury areas of Alberta. EnerMark’s estimate ofWestern Star’s proven reserves total 36,855 MMcf of gas and 147MBoe of crude oil and gas liquids. These reserve volumes includethe results of a successful 21-well gas development program atHanna Garden.
Tulsa-based Beta Acquiring Red River Energy
Beta Oil & Gas Inc. of Tulsa, OK, plans to acquire privateoil and gas producer Red River Energy Inc., also of Tulsa, for$23.5 — assuming about $7.6 million of existing debt and issuing2.25 million shares of Beta common stock. The deal is subject toapproval by Beta shareholders.
Tulsa-based Beta Acquiring Red River Energy
Beta Oil & Gas Inc. of Tulsa, OK, plans to acquire privateoil and gas producer Red River Energy Inc., also of Tulsa, for$23.5 – assuming about $7.6 million of existing debt and issuing2.25 million shares of Beta common stock. The deal is subject toapproval by Beta shareholders.
Kansas Deal Balloons Midcoast Pipe Ownership 41%
Now turning its acquisitive eye to Kansas, Midcoast Energy Resources Inc. plans to acquire Kansas Pipeline Co. (KPC), MarGasCo Partnership (MarGasCo) and other related assets.
Midcoast Grows Pipeline Ownership 41%
Midcoast Energy Resources Inc. plans to acquire Kansas PipelineCo. (KPC), MarGasCo Partnership (MarGasCo) and other relatedentities. The $190 million deal includes the Kansas Pipelinesystem, which provides gas service to the Wichita and Kansas Citymetropolitan markets. The addition of the KPC system represents a41% increase in the total miles of pipeline owned by Midcoast.