Asset

EEX Corp. has entered into an asset purchase, farmout and joint exploration agreement with BP Exploration & Production Inc. BP acquired 75% of EEX’s current interest in 23 outer continental shelf (OCS) leases. Under the agreement, BP said it will conduct further leasing and geophysical activities in an area encompassing 140 OCS blocks. At the end of the initial evaluation period, BP may elect to commit to the drilling of up to three wells. The agreement also allows for EEX to be carried for its 25% interest of the costs of the initial evaluation period as well as the drilling of the first three exploration wells. Both companies said they are interested in pursuing exploration prospects in shallow waters of the Gulf of Mexico that EEX identifies as “deep shelf,” geological formations that are deeper than conventional Gulf of Mexico OCS oil and gas exploration and production. The companies were successful bidders on six federal offshore blocks at OCS Lease Sale No. 182 held in March, which are included in the agreement. The Minerals Management Service has awarded four of the blocks to date. EEX is an oil and natural gas exploration and production company with activities currently focused in Texas, Louisiana and the Gulf of Mexico.

Enterprise Products Partners LP became one of the largest liquids storage operators in the country with the acquisition of a natural gas liquids and petrochemical liquids storage business from Diamond-Koch, L.P. and Diamond-Koch III, which are owned by affiliates of Valero Energy and Koch Industries Inc. The purchase price was $129 million in cash.

A unit of Tulsa-based Williams on Friday completed the initial phase of a South Texas asset sale to a Houston-based subsidiary of Enbridge Inc. Last October, the Canadian-based Enbridge agreed to purchase South Texas natural gas gathering, treating and transmission assets from Williams for approximately $50 million (see Daily GPI, Oct. 12, 2001).

Dallas-based EXCO Resources Inc. reported Wednesday that Addison Energy Inc., a wholly owned subsidiary of EXCO, has completed the previously announced acquisition of some Alberta oil and natural gas assets from an independent Canadian producer (see Daily GPI, Nov. 28). No seller was named by the company.

National Fuel Gas said it expects subsidiary Seneca Resources to write down at the end of the fourth quarter the cost of its Canadian oil and gas producing properties and in the first quarter of 2002 to determine if gas production curtailments are necessary because of plummeting wholesale prices.

National Fuel Gas said it expects subsidiary Seneca Resources to write down at the end of the fourth quarter the cost of its Canadian oil and gas producing properties and in the first quarter of 2002 determine if gas production curtailments are necessary because of plummeting commodity prices.

The terrorist attack on New York delayed a shareholder vote on Montana Power Co.’s planned sale of its gas and power distribution business to NorthWestern Corp. for $602 million in cash and assumption of $488 million in debt. The vote was scheduled to take place on Friday at 1:30 p.m. at the Mother Lode Theater in Butte, MT, however the New York company in charge of tabulating the votes was affected by the terrorist attacks. In addition, the New York Stock Exchange was closed and isn’t expected to open until today.

The terrorist attack on New York has delayed a shareholder vote on Montana Power Co.’s planned sale of its gas and power distribution business to NorthWestern Corp. for $602 million in cash and assumption of $488 million in debt. The vote was scheduled to take place on Friday at 1:30 p.m. at the Mother Lode Theater in Butte, MT, however the New York company in charge of tabulating the votes was affected by the terrorist attacks. In addition, the New York Stock Exchange is closed and isn’t expected to open until Monday.

The Oil & Gas Asset Clearinghouse, the Houston-based marketing and consulting firm for property acquisitions and divestitures, will hold its 14th hybrid live floor/Internet auction on Wednesday. More than 1,100 oil and gas properties will be combined into 123 lots. The hybrid auction enables Internet bidders to compete real-time against the live auction floor.