Buys

Houston-based El Paso Corp. said Tuesday it has purchased put options, which place a floor price on part of its natural gas production to manage the company’s exposure to volatile prices.

Houston-based El Paso Corp. said Tuesday it has purchased put options, which place a floor price on part of its natural gas production to manage the company’s exposure to volatile prices.

After spending the past two years shedding assets to shore up its balance sheet, Dynegy Inc. on Tuesday announced it is buying Sithe Energies and Sithe Independence LP from Exelon Corp., which includes a 1,042 MW combined-cycle power generation facility near Scriba, NY, four natural gas-fired merchant facilities in New York and four hydroelectric generation facilities in Pennsylvania.

Blue Dolphin Energy Co. and WBI Pipeline & Storage Group Inc. announced that they have sold the New Avoca gas storage project, which was expected to revive the canceled Avoca storage facility in Avoca, NY, to Tulsa-based SemGas LP, a business segment of SemGroup for about $3.5 million. SemGas said it hopes to put the storage project in operation by 2006.

Blue Dolphin Energy Co. and WBI Pipeline & Storage Group Inc. announced that they have sold the New Avoca gas storage project, which was expected to revive the canceled Avoca storage facility in Avoca, NY, to Tulsa-based SemGas LP, a business segment of SemGroup for about $3.5 million. SemGas said it hopes to put the storage project in operation by 2006.

Blue Dolphin Energy Co. and WBI Pipeline & Storage Group Inc. announced that they have sold the New Avoca gas storage project, which was expected to revive the canceled Avoca storage facility in Avoca, NY, to Tulsa-based SemGas LP, a business segment of SemGroup for about $3.5 million. SemGas said it hopes to put the storage project in operation by 2006.

Continuing its rapid accumulation of producing properties, Chesapeake Energy on Tuesday announced it had paid $425 million for privately-held Greystone Petroleum LLC, which owns 214 Bcfe of proved reserves and 16,100 gross acres of leasehold in the Sligo Field in Bossier Parish, LA. The field has produced 1.6 Tcfe of gas.

Chesapeake Energy said Tuesday it signed a three-year joint development agreement with a new company formed by the management of Greystone Petroleum LLC, which was purchased by Chesapeake in May 2004 for $425 million (see Daily GPI, May 12). The new agreement gives Chesapeake the exclusive right to acquire a 50% interest in any of the new company’s (Greystone Oil & Gas LLP) future oil and gas projects.

Chesapeake Energy said Tuesday it signed a three-year joint development agreement with a new company formed by the management of Greystone Petroleum LLC, which was purchased by Chesapeake in May 2004 for $425 million (see Daily GPI, May 12). The new agreement gives Chesapeake the exclusive right to acquire a 50% interest in any of the new company’s (Greystone Oil & Gas LLP) future oil and gas projects.