Bidding

The heated bidding war over Canada Southern Petroleum shares boiled over Thursday with Petro-Canada subsidiary Nosara Holdings Ltd. increasing its offer by 47% to US$11/share and rival Canadian Superior urging Canada Southern Petroleum shareholders to acknowledge that its original offer (2.75 shares and C$2.50 cash for each Canada Southern share) represents the best long-term value because its shares currently are underpriced in the market. Canada Southern Petroleum on Tuesday recommended that its shareholders accept a US$9.75/share all-cash offer from a third company, Canadian Oil Sands (see Daily GPI, June 27).

Unocal Corp.’s board of directors has endorsed an increased takeover offer of $17 billion from Chevron Corp., potentially ending the fierce bidding war by China’s National Offshore Oil Co.(CNOOC) for the U.S. oil and natural gas company.

The Los Angeles Department of Water and Power (LADWP) Wednesday held a pre-bidding conference with four natural gas suppliers regarding long-term supplies of up to 120 MMcf/d, some of which could be transported through the still idled western portion of Questar’s Southern Trails pipeline in California, a LADWP official said during an interview with NGI.

The Los Angeles Department of Water and Power (LADWP) Wednesday held a pre-bidding conference with four natural gas suppliers regarding long-term supplies of up to 120 MMcf/d, some of which could be transported through the still idled western portion of Questar’s Southern Trails pipeline in California, a LADWP official said during an interview with NGI.

The Los Angeles Department of Water and Power (LADWP) Wednesday held a pre-bidding conference with four natural gas suppliers regarding long-term supplies of up to 120 MMcf/d, some of which could be transported through the still idled western portion of Questar’s Southern Trails pipeline in California, a LADWP official said during an interview with NGI.

A joint venture of Southern Union Co. and a General Electric Co. unit won the bidding war last week to acquire Enron Corp.’s prized domestic natural gas pipeline unit, CrossCountry Energy, in a transaction valued at $2.45 billion.

Amerada Hess, BHP Billiton, Stone Energy, Pogo Producing and Tana Exploration were the top five companies based on total amount of high bids in the Minerals Management Service’s Central Gulf Lease Sale 190. The agency said 83 companies submitted $368.8 million in high bids, which was a 17% increase compared to Central Gulf Lease Sale 185 just last year. The total of all bids was $636.8 million.

Amerada Hess, BHP Billiton, Stone Energy, Pogo Producing and Tana Exploration were the top five companies based on total amount of high bids in the Minerals Management Service’s Central Gulf Lease Sale 190. The agency said 83 companies submitted $368.8 million in high bids, which was a 17% increase compared to Central Gulf Lease Sale 185 just last year. The total of all bids was $636.8 million.

The prospect of finding deep gas in the shallow waters of the Outer Continental Shelf (OCS) appeared to be the impetus for bidding in Western Gulf of Mexico (GOM) Lease Sale 187 on Aug. 20. Shallow water leases, in plays less than 200 meters deep and more than 15,000 true vertical depth, piqued most producers’ interests, with the offshore sale netting $258.7 million in total bids for chances to explore 3,996 blocks.