Acquiring

Stone Energy Corp., which was on the losing end of two merger attempts in 2006, has trained its sights on acquiring Houston-based Bois d’Arc Energy Inc. in a transaction estimated at $1.8 billion. The combination would give Stone a solid Gulf of Mexico (GOM) exploration portfolio 55% weighted to natural gas, around 300 MMcfe/d in production, 700 Bcfe-plus of estimated proved reserves and 275 Bcfe of estimated probable reserves.

Looking to expand the types of customers it serves, AGL Resources announced that it is acquiring Compass Energy Services Inc., a privately held Richmond, VA-based commercial and industrial energy services company.

Looking to expand the types of customers it serves, AGL Resources announced Monday that it is acquiring Compass Energy Services Inc., a privately held Richmond, VA-based commercial and industrial energy services company.

Houston-based Linn Energy LLC, which is acquiring Dominion Resources Inc.’s Midcontinent oil and natural gas assets for $2.05 billion (see Daily GPI, July 3), has signed hedging contracts that include a commitment for price swaps once the Dominion deal closes. The hedging contracts cover 40 Bcf of gas and 800,000 bbl of oil for 2008 through 2012, or five years, with weighted average swap and put prices of $8.50/Mcf for gas and $73.50/bbl for oil. In addition, the contracts cover 7.8 Bcf of gas and 157,000 bbl of oil for the fourth quarter, with weighted average swaps and put prices of $8.54/Mcf for gas and $73.78/bbl for oil.

DCP Midstream Partners LP last week said it would grow its gathering footprint into the Midcontinent area by acquiring gas gathering and compression assets in Oklahoma from Anadarko Petroleum Corp. for $180.25 million in cash.

GE Energy Financial Services is making its first equity investment in natural gas storage, acquiring a preferred equity interest in the Bobcat salt dome gas storage project in St. Landry Parish, LA, for $65 million from Houston-based private equity fund Haddington Energy Partners III LP (see NGI, July 3, 2006).

GE Energy Financial Services is making its first equity investment in natural gas storage, acquiring a preferred equity interest in the Bobcat salt dome gas storage project in St. Landry Parish, LA, for $65 million from Houston-based private equity fund Haddington Energy Partners III LP (see Daily GPI, June 28, 2006).

Linn Energy LLC last week broadened its domestic reach by acquiring a leasehold in the Texas Panhandle and enriching its natural gas-heavy assets in the Appalachian Basin. The separate transactions, which together cost the company $454 million, will sweeten the limited partnership’s total proved reserve base by 57%, with proved reserves up by 355 Bcfe and additional output of 38 MMcfe/d.

Adding to its stable of production plays, Denver-based PRB Energy Inc. said it is acquiring 13 natural gas wells and 330,000 net acres in the Denver-Julesburg Basin of northeastern Colorado and southwestern Nebraska. Terms of the deal and the seller’s identity were not disclosed.