Bank

Merrill Lynch announced plans Monday to buy oil and gas industry bank Petrie Parkman & Co. and stake out a larger piece of the investment banking business in the exploration and production sector. Petrie Parkman, which employs 50 people in Denver, Houston and London, had planned an initial public offering of about $115 million. Terms of the Merrill Lynch deal weren’t disclosed.

The Dallas-based Inter-American Development Bank (IADB) said Thursday that it will formally review Peru LNG’s request for a direct loan of $400 million for the development of a liquefied natural gas (LNG) export project in Peru. The project would deliver LNG to regasification terminals on Mexico’s West Coast and potentially to the U.S. West Coast starting in 2010. Hunt Oil, Spain’s Repsol and Korea’s SK Corp. are partners in the project, which would be located in Pampa Melchorita, Peru. The total investment in Peru LNG is expected to reach up to $3.2 billion. The project will take 620 MMcf/d of natural gas from the Ayacucho Mountains through a 250-mile, 32-inch diameter pipeline to the single-train liquefaction plant on the coast south of Lima, where it will be put into tankers bound for the western seaboard of North America. The Camisea E&P project has 8.7 Tcf of estimated reserves and adjacent development is expected to access another 3.5 Tcf of reserves. Gas production will likely exceed domestic demand for the foreseeable future, so project sponsors would like to export any excess to the North American West Coast.

The Dallas-based Inter-American Development Bank (IADB) said Thursday that it will formally review Peru LNG’s request for a direct loan of $400 million for the development of a liquefied natural gas (LNG) export project in Peru. The project would deliver LNG to regasification terminals on Mexico’s West Coast and potentially to the U.S. West Coast starting in 2010. Hunt Oil, Spain’s Repsol and Korea’s SK Corp. are partners in the project, which would be located in Pampa Melchorita, Peru. The total investment in Peru LNG is expected to reach up to $3.2 billion. The project will take 620 MMcf/d of natural gas from the Ayacucho Mountains through a 250-mile, 32-inch diameter pipeline to the single-train liquefaction plant on the coast south of Lima, where it will be put into tankers bound for the western seaboard of North America. The Camisea E&P project has 8.7 Tcf of estimated reserves and adjacent development is expected to access another 3.5 Tcf of reserves. Gas production will likely exceed domestic demand for the foreseeable future, so project sponsors would like to export any excess to the North American West Coast.

After moving to either side of unchanged, the natural gas futures market finished in slightly positive territory Wednesday as concerns over a large storage number edged out forecasts calling for wide temperature swings over the next couple of weeks. At $6.387, the February contract was up 5.8 cents for the session, but well below its intra-day high of $6.58. At 70,004, estimated volume was moderate.

A growing shortfall of natural gas will propel oil and gas services as the top Canadian growth sector through 2004, Bank of Montreal (BOM) economists reported Thursday. Meanwhile, Canadian-based Scotiabank Group’s latest commodity report index noted that declining U.S. natural gas deliverability should keep prices “strong” through next year.

A growing shortfall of natural gas will propel oil and gas services as the top Canadian growth sector through 2004, Bank of Montreal (BOM) economists reported Thursday. Meanwhile, Canadian-based Scotiabank Group’s latest commodity report index noted that declining U.S. natural gas deliverability should keep prices “strong” through next year.

Kansas City, MO-based Aquila Inc. reported Wednesday that it posted a staggering second-quarter net income of $101.3 million ($1.05 per share), an increase of 367% over the prior year’s second-quarter net income of $21.7 million ($0.25 per share). The sizeable increase was led by the company’s wholesale services segment, which boasted an earnings before interest and taxes (EBIT) of $148.5 million, compared to the segment’s $25.3 million posted during the second quarter of 2000. Aquila said that first-half EPS and net income exceed full-year 2000 results.

Merrill Lynch has been hired to serve as Avista Labs’ investmentbank and strategic adviser to evaluate the best ways to maximizethe shareholder value of its fuel cell technology. Avista Corp. ofSpokane, WA made the announcement yesterday, and said that MerrillLynch will “consider all possible options, including financialrestructuring and an initial public offering.” Avista Labs recentlyreceived a comprehensive patent securing the exclusive modulardesign of its PEM fuel cell system, a “plug and play” feature thatallows fuel cell cartridges to be easily removed and replacedwithout interrupting power. The Labs arm of Avista Corp. is a jointdevelopment agreement with UOP to integrate its fuel cell with thenatural gas and propane fuel processor systems of UOP. Later thisyear, field testing will begin for the integrated units of UOP.Currently, Avista Labs is testing its fuel cell subracks in severallocations across the country, including Arizona Public Service inPhoenix, the Fuel Cell Test and Evaluation Center in Johnstown,PA., Tyndall Air Force Base in Panama City, FL, and as back-uppower within the Avista Utilities service territory in the PacificNorthwest.

Coho Energy is exiting bankruptcy protection with new seniormanagement and a new bank facility. Coho and five of its affiliatesfiled for Chapter 11 Aug. 23. At the time, Coho listed totalliabilities of $425 million. Under the reorganization plan, Coho’sthree largest institutional bondholders converted their debt into90% of the equity of the reorganized company. These bondholdersalso provided the majority of the $72 million of subordinatednotes, as provided under the reorganization plan. The bondholdersare Appaloosa Management, Oaktree Capital Management and PPMAmerica.