Westcoast Energy announced it has agreed to sell its Albertanatural gas distribution business, Centra Gas Alberta, based inLeduc, BC, to AltaGas Services of Calgary for $61 million. Thecompany distributes gas to 53,000 residential, rural and smallindustrial customers in 90 communities in central Alberta.
Articles from Agreed
Seagull Energy agreed to buy an interest in a package of onshoreoil and gas properties in East Texas and western Oklahoma for $102million. The Houston-based company is buying the stock of privatelyheld BRG Petroleum of Tulsa, OK, and the assets of BRG’s limitedpartnerships and programs. The deal should be completed in about 60days. Proved oil and gas reserves total about 103 Bcfe. Dailyproduction from the properties net to the combined BRG interestslast year averaged about 18 MMcf/d of gas and 400 barrels of oiland natural gas liquids. Seagull has identified more than 160drilling locations and 60 recompletion opportunities, primarily inEast Texas. Seagull said it expects significant increases in bothproved reserves and production over the next few years.
Houston Industries Power Generation (HIPG) agreed to buySouthern California Edison’s (SCE) Ormond Beach Generating Stationfor $43 million. Ormond Beach has two gas-fired units totaling1,500 MW, and the deal includes land adjacent to SCE’s Coolwaterplant in the Mojave Desert, which Houston Industries bought inNovember.
Laclede Gas Co. and Williams agreed to provide additional gasservice into the St. Louis area through a project that will expandthe Williams Gas Pipelines Central service area eastward fromKansas City to the St. Louis area. The project involves conversionof an existing 200-mile Williams petroleum pipeline to gas service.Williams also will install new compression, pipeline and deliveryfacilities. The project is fully subscribed, and firm service isexpected to begin in the fourth quarter.
Dominion Resources unit Dominion Energy has agreed to pay (US)$128 million, C$7.60/share, to acquire Archer Resources Ltd. ofCalgary, AB. The deal gives Dominion Energy control of Archer’sdaily production of approximately 72 MMcf/d of gas and 1,500 b/dof oil in Alberta, plus Archer’s 16 processing facilities and over500,000 undeveloped acres. Dominion Energy said the deal, ifconsummated as expected, would increase its gas productioncapability by approximately 50%.
Chesapeake Energy agreed to buy MC Panhandle Corp., a whollyowned subsidiary of Occidental Petroleum for $105 million cash forestimated proved reserves of about 100 Bcf in the West PanhandleField in Carson, Gray, Hutchinson and Moore counties of the TexasPanhandle. The reserves are 100% gas, have an estimatedreserve-to-production index of eight years, and are 85% proveddeveloped producing. During 1997, the wells produced about 13 Bcf(36 MMcf/d) net to Occidental’s interest from 256 wells, of whichall but two were Oxy operated wells. Chesapeake will assumeoperations of the acquired wells and will own an average workinginterest and net revenue interest of 99.5% and 85.2%, respectively.The transaction is effective Jan. 1, with closing scheduled May 29.With this purchase and pro forma for Chesapeake’s pending Hugotonand DLB transactions, Chesapeake’s estimated proved reserves willincrease to about 1,050 Bcfe. The Hugoton Energy Panhandleproperties to be acquired by Chesapeake were originally acquiredfrom Oxy in 1992. Chesapeake CEO Aubrey K. McClendon, said, “asresult, we expect to be able to operate these reunited propertiesvery efficiently out of Hugoton’s existing Pampa, TX, field office.For example, pro forma for these acquisitions, we expect our directproduction costs in the Texas Panhandle, excluding productiontaxes, to average approximately $0.30 per Mcf. These arehigh-margin, low-maintenance wells that we believe will provideaccretive results to our cash flow in 1998 and beyond.”
Six energy companies agreed to form Tri-States NGL Pipeline tobuild a natural gas liquids (NGL) pipeline from Alabama andMississippi to Louisiana fractionators. The line will link threegas processing plants under construction to new and expandedfractionators on the Mississippi River.
Williams’ field services unit has agreed to process 300 MMcf/dof gas for Exxon Company USA at its gas liquids extraction plant tobe built near Coden, AL. The deal is the largest processingcontract to date for the field services unit. The NGL extractionplant is expected to be in service by the first quarter of nextyear and will have 600 MMcf/d of inlet capacity. The Exxon gasrepresents dedicated production from multiple leases in the MobileBay area. Remaining plant capacity will be filled through theexpansion of the Transco Mobile Bay Lateral as well as other gasproduction currently flowing on the existing Transco pipeline. Aspokeswoman said the company expects to sign five or six morecontracts to handle gas at the new plant, which is expandable up toat least 900 MMcf/d.
EEX Corp. agreed to sell nearly all of its properties in EastTexas and North Louisiana, containing 250 Bcfe of proved naturalgas reserves, to Cross Timbers Oil Co. for $265 million. Theeffective date of the sale is Jan. 1, 1998 with closing expected inthe second quarter.