Agreeing

While agreeing that FERC needs to explore every issue in the California price-manipulation case against El Paso Natural Gas and its merchant power affiliates, Commissioner Nora M. Brownell has called on all parties to the action to “expeditiously” wrap up a supplemental hearing “so we can go to decision and move on.”

While agreeing that FERC needs to explore every issue in the California price-manipulation case against El Paso Natural Gas and its merchant power affiliates, Commissioner Nora M. Brownell has called on all parties to the action to “expeditiously” wrap up a supplemental hearing “so we can go to decision and move on.”

El Paso Corp. said Friday it had completed a key element of its balance sheet “enhancement”, agreeing to sell $750 million of common stock at a net price of $42.50 per share through an underwritten public offering with J.P. Morgan Securities Inc. The sale price is a 5.6% discount to El Paso’s $45 closing stock price on Thursday (Dec. 20), with the underwriter retaining a 15% over-allotment option.

Houston-based Cabot Oil & Gas Corp. doubled its Gulf Coast proved reserve base Thursday, agreeing to a $230 million cash and stock merger with Cody Co., the parent of Cody Energy LLC. All of Denver-based Cody’s reserves are in Texas and Louisiana and will add 116 Bcfe to Cabot’s proved reserves, of which 58% will be natural gas, and 50 MMcfe/d of equivalent production, with 84% in natural gas.

Houston-based Cabot Oil & Gas Corp. doubled its Gulf Coast proved reserve base Thursday, agreeing to a $230 million cash and stock merger with Cody Co., the parent of Cody Energy LLC. All of Denver-based Cody’s reserves are in Texas and Louisiana and will add 116 Bcfe to Cabot’s proved reserves, of which 58% will be natural gas, and 50 MMcfe/d of equivalent production, with 84% in natural gas.

Calgary-based Elk Point Resources Inc. increased its core area of operations this week, agreeing to pay C$24.8 million to purchase some natural gas and light crude oil assets in the Pembina, Easyford and Bigoray areas of Alberta. Current net production from the properties is approximately 2.9 MMcf/d, 385 bbl/d of light crude oil and 55 bbl/d of natural gas liquids — 730 boe/d total.

After months of inconclusive sparring, TransCanada PipeLinesLtd. and its shippers have reached a truce by agreeing to negotiaterather than fight over ways to adapt to the onset of competition inCanadian natural-gas transportation.

Houston-based Newfield Exploration Co. entered the new Milleniumwith a bang, agreeing to buy rival Lariat Petroleum Inc. for nearly$333 million in cash, stock and assumed debt, and boosting itsreserves by about 40%. The properties, 90% in the Anadarko Basin ofOklahoma, produce 60 MMcf/d, and include 256 Bcf of reserves.

After agreeing to unload its electric subsidiary last week to Orion Power Holdings for about $200 million plus the assumption of debt, Columbia Energy Group announced that it has found a buyer for its electric subsidiary’s interests in four power generation Qualifying Facilities (QF). The interests, which were excluded from the Orion deal, will be sold to a partnership between Morristown, NJ,-based Delta Power Co. and John Hancock Life Insurance for an undisclosed amount (see NGI, Oct. 9).