Brief

Industry Brief

FERC on Tuesday gave Freeport LNG Development LP the green light to begin construction of an agency-approved liquefied natural gas (LNG) import terminal and associated gas pipeline facilities on Quintana Island near Freeport, TX. The Commission has given the company a five-year construction window to build the project. The sendout capacity of the facility will be up to 1.5 Bcf/d. Two storage tanks each will have the capacity to hold 3.5 Bcf. The project also will include a 10-mile, 36-inch diameter pipeline extending from the import terminal to a proposed meter station at Stratton Ridge storage hub in Brazoria County, TX. The targeted in-service date is June 2009. Dow Chemical has signed a 20-year agreement to reserve 500 MMcf/d of the plant’s capacity. ConocoPhillips has entered into an agreement to fund the construction of the LNG facility (more than $500 million) in exchange for the remaining 1 Bcf/d of capacity.

January 12, 2005

Eastern Utilities Record One-Day High Gas, Power Send-Outs

Real winter made a brief appearance in the East early last week as several major eastern utilities reported setting some new gas and power send-out records on Monday, Dec. 20. Consolidated Edison (ConEd) pinpointed the average temperature in its New York City area over a 24-hour period last Monday at 15 degrees Fahrenheit.

December 27, 2004

Industry Brief

Bonavista Energy Trust said it is buying about 39.6 million boe of natural gas and oil reserves in northeast British Columbia from an unnamed group of sellers for $414 million. The properties, which are mainly natural gas, are expected to increase Bonavista’s production by 25%. They include current production of 10,600 boe/d, including 44 MMcf/d of natural gas, 2,830 bbl/d of associated natural gas liquids and 440 bbl/d of light oil. After the deal, Bonavista will produce about 53,000 boe/d, 58% of which will be natural gas. “The assets, which will establish a new core region for Bonavista in northeastern British Columbia, are highly concentrated, natural gas-weighted and are geographically located within a 100-kilometer radius northwest of Fort St. John, BC,” Bonavista said. The deal will be funded through a combination of bank debt, an issuance of trust units and an issuance of convertible debentures. Bonavista has entered into an agreement to sell 10.9 million subscription receipts at a price of $25.85 each for $281.7 million, and $135 million of convertible extendible unsecured subordinated debentures to a syndicate of underwriters.

December 14, 2004

Industry Brief

Bonavista Energy Trust said it is buying about 39.6 million boe of natural gas and oil reserves in northeast British Columbia from an unnamed group of sellers for $414 million. The properties, which are mainly natural gas, are expected to increase Bonavista’s production by 25%. They include current production of 10,600 boe/d, including 44 MMcf/d of natural gas, 2,830 bbl/d of associated natural gas liquids and 440 bbl/d of light oil. After the deal, Bonavista will produce about 53,000 boe/d, 58% of which will be natural gas. “The assets, which will establish a new core region for Bonavista in northeastern British Columbia, are highly concentrated, natural gas-weighted and are geographically located within a 100-kilometer radius northwest of Fort St. John, BC,” Bonavista said. The deal will be funded through a combination of bank debt, an issuance of trust units and an issuance of convertible debentures. Bonavista has entered into an agreement to sell 10.9 million subscription receipts at a price of $25.85 each for $281.7 million, and $135 million of convertible extendible unsecured subordinated debentures to a syndicate of underwriters.

December 14, 2004

Industry Brief

Sponsors of the proposed Rabaska LNG terminal still have three other sites near Quebec City to pursue, after citizens resoundingly defeated a plan earlier this week to locate the receiving terminal in the Beaumont section of the city. Residents of Beaumont resoundingly rejected the proposal with 72% voting against it. Opponents of the LNG project claimed it would be a safety hazard and would spoil the river view. The government of Quebec supports the project as necessary to supply energy in the area. Sponsors of the project include Gaz Metro, Enbridge and Gaz de France.

December 10, 2004

Industry Brief

Sponsors of the proposed Rabaska LNG terminal still have three other sites near Quebec City to pursue, after citizens resoundingly defeated a plan earlier this week to locate the receiving terminal in the Beaumont section of the city. Residents of Beaumont resoundingly rejected the proposal with 72% voting against it. Opponents of the LNG project claimed it would be a safety hazard and would spoil the river view. The government of Quebec supports the project as necessary to supply energy in the area. Sponsors of the project include Gaz Metro, Enbridge and Gaz de France.

December 10, 2004

Industry Brief

FERC has given Dominion Cove Point LNG LP the green light to begin commercial operation of a new fifth storage tank at its liquefied natural gas (LNG) import terminal on the eastern shore of Maryland. With the new tank, the facility’s LNG storage capacity will be expanded to 7.8 Bcf from its current capacity of 5 Bcf. The company plans to add two or three more tanks later to accommodate volumes for Statoil, bringing total storage capacity to 14.6 Bcf. It also plans to expand current vaporization of 1 Bcf/d to 1.8 Bcf/d.

November 30, 2004

Industry Brief

FERC has given Dominion Cove Point LNG LP the green light to begin commercial operation of a new fifth storage tank at its liquefied natural gas (LNG) import terminal on the eastern shore of Maryland. With the new tank, the facility’s LNG storage capacity will be expanded to 7.8 Bcf from its current capacity of 5 Bcf. The company plans to add two or three more tanks later to accommodate volumes for Statoil, bringing total storage capacity to 14.6 Bcf. It also plans to expand current vaporization of 1 Bcf/d to 1.8 Bcf/d.

November 30, 2004

Industry Brief

Petrohawk Energy Corp. closed a $425 million acquisition of Wynn-Crosby Energy Inc. and affiliated limited partnerships, which collectively hold about 200 Bcfe of proved reserves in the South Texas, East Texas, Permian, Arkoma and Midcontinent regions. The purchase brings Petrohawk’s total proved reserves to 233 Bcfe, 74% of which are natural gas. It average current production is 57 MMcfe/d. The company funded the transaction with proceeds from a $200 million private equity placement, $210 million in borrowings from its commercial bank group, and cash.

November 24, 2004

Industry Brief

Petrohawk Energy Corp. closed a $425 million acquisition of Wynn-Crosby Energy Inc. and affiliated limited partnerships, which collectively hold about 200 Bcfe of proved reserves in the South Texas, East Texas, Permian, Arkoma and Midcontinent regions. The purchase brings Petrohawk’s total proved reserves to 233 Bcfe, 74% of which are natural gas. It average current production is 57 MMcfe/d. The company funded the transaction with proceeds from a $200 million private equity placement, $210 million in borrowings from its commercial bank group, and cash.

November 24, 2004