Asset

Santa Fe Snyder Corp. of Houston is high grading its asset basethrough a series of deals. The largest component of the company’sstrategic repositioning is the $160 million purchase of additionaldeepwater Gulf of Mexico interests from Marathon Oil. Santa Febought an additional 33% interest in the Angus/Manatee six-blockcomplex, bringing the total working interest in the Shell operatedfields to 49%. The deal closed Jan. 7. The company said it is alsodisposing of low-profit assets.

In the aftermath of an extremely critical consultant’s report onits handling of a prospective asset sale, Southern California Gashas reached a settlement with one part of the state regulatorycommission and is separately trying to reopen the possible sale ofits smallest Los Angeles Basin underground natural gas storagefacility in an eastern Los Angeles suburb. An administrative lawjudge (ALJ) with the California Public Utilities Commission isconsidering whether to recommend the deal to the full five-memberCPUC.

DukeSolutions, the energy services subsidiary of Duke Energy,was awarded as contract by the Veterans Integrated Services Network6 (VISN-6) to provide energy efficiency products and services ateight Veterans Affairs Medical Centers in Virginia, West Virginiaand North Carolina.

DukeSolutions, the energy services subsidiary of Duke Energy,was awarded as contract by the Veterans Integrated Services Network6 (VISN-6) to provide energy efficiency products and services ateight Veterans Affairs Medical Centers in Virginia, West Virginiaand North Carolina.

Vector Energy Corp., created just over a year ago through oiland gas asset acquisitions, is leaving drill bits behind in favorof dot-coms and ISPs. “Nobody cares about oil and gas,” said VectorFounder and President Sam Skipper. Over the next several yearsVector will be either divesting its oil and gas properties ormerging them into another company, he said. Meanwhile it’s headingfor Internet territory, with a letter of intent to acquire onepublicly-held Internet Service Provider (ISP) and promises of anagreement with another with 8,000 subscribers.

Dynegy recently announced construction plans for two separate500 MW facilities in the Southeast, making a reality of its promiseto increase its power asset portfolio in the area. With thesefacilities, one located in Heard County, GA and the other locatedin Oldham County, KY, Dynegy will increase its Southeast energyassets from three to five.

Dynegy is making a reality of its promise to increase its powerasset portfolio in the Southeast by announcing construction plansfor two separate 500 MW facilities in the past seven days. Lastweek, Dynegy announced a local commission approved plans toconstruct a plant in Heard County, GA. Yesterday, the company saidit gained approval from a local court to build the BluegrassGeneration facility in Oldham County, KY. With the Kentuckyfacility, Dynegy will own or have interest in five power plants inthe Southeast.

Midcoast Energy Resources Inc. grew its Texas asset base withthe acquisition of two gathering systems in two separate dealsworth a combined $4.55 million. Midcoast bought the Mendotagathering pipeline and processing plant from Seagull Energy Corp.for $3.75 million in cash. The Mendota facilities are in RobertsCounty, TX, and include about 35 miles of gathering pipeline, a 10MMcf/d cryogenic gas processing plant and compression facilitieswith a combined 2,400 horsepower. The system gathers gas from morethan 70 active wells and has a total throughput of 7,200 Mcf/d. TheMendota pipeline is located adjacent to the Anadarko system, whichMidcoast purchased from El Paso Energy Corp. in September 1998, andMidcoast plans to integrate the operations of the Mendota andAnadarko systems. Also as part of the transaction, Seagull hasdedicated production from all of its existing acreage in the areato Midcoast for the next five years.

Union Pacific Resources Group Canadian subsidiary Union PacificResources Inc. (UPRI) has nearly completed its 1998 propertydivestiture program. The company expects to close on the finalproperty in the original offering later this year and projects its1998 non-core property sales program will top $143 million.