Almost seven months after the initial agreement, ChesapeakeEnergy Corp. announced it has completed the acquisition of GothicEnergy Corp., making it the 10th largest independent natural gasproducer in the United States. The acquisition marks theturn-around of Chesapeake, which two and a half years ago tried tosell itself due to repeated losses.
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Texas Sues ExxonMobil For Oil, Gas Royalties
Texas Attorney General John Cornyn filed a civil lawsuit last week against ExxonMobil of stealing millions of dollars in oil and gas revenue from land owned by the state’s taxpayers. Cornyn accused the company of defrauding Texas for at least 25 years by “knowingly and wrongfully” producing oil and gas from 50 acres of publicly owned right-of-way property in East Texas.
Industry Briefs
Cross Timbers completed its previously announced $115 millionacquisition of 175 Bcfe of reserves on producing properties locatedin East Texas and Louisiana from Herd Producing of Tyler, TX. Theproperties are located in Freestone, Limestone and Robertsoncounties, TX, and Claiborne and Union parishes, LA. “We willimmediately begin to develop these properties in conjunction withour existing East Texas Freestone Trend exploitation program,”stated Cross Timber President Steffen E. Palko. “This trendcurrently has a resource potential of 1.2 Tcf of gas, whichincludes more than 500 potential drilling locations and a multitudeof recompletion projects.” Chairman Bob R. Simpson said theacquisition provides the additional inventory of opportunities forthe company to achieve its previously stated goals of increasinggas production by 20% per year. “As a result, we expect to increasegas production to 535 MMcf/d by the end of 2002, a 60% increaseabove the average rate for 2000.”
Bush’s Cabinet Appointments Cast 1,000 Points of Light on Next Energy Policy
Just what can the energy industry expect to encounter underincoming President-elect George W. Bush’s administration? Theformer Midland, TX, oilman, paired with former Halliburton CEO DickCheney, appears to be more open to new exploration and production.Add to that Bush’s recent Cabinet picks, and it beams a thousandpoints of light on what industry may expect in the next four years.
Industry Briefs
Cross Timbers completed its previously announced $115 millionacquisition of 175 Bcfe of reserves on producing properties locatedin East Texas and Louisiana from Herd Producing of Tyler, TX. Theproperties are located in Freestone, Limestone and Robertsoncounties, TX, and Claiborne and Union parishes, LA. “We willimmediately begin to develop these properties in conjunction withour existing East Texas Freestone Trend exploitation program,”stated Cross Timber President Steffen E. Palko. “This trendcurrently has a resource potential of 1.2 Tcf of gas, whichincludes more than 500 potential drilling locations and a multitudeof recompletion projects.” Chairman Bob R. Simpson said theacquisition provides the additional inventory of opportunities forthe company to achieve its previously stated goals of increasinggas production by 20% per year. “As a result, we expect to increasegas production to 535 MMcf/d by the end of 2002, a 60% increaseabove the average rate for 2000.”
Newfield Ropes In Gas-Rich Lariat for $333 Million
Houston-based Newfield Exploration Co. entered the new Milleniumwith a bang, agreeing to buy rival Lariat Petroleum Inc. for nearly$333 million in cash, stock and assumed debt, and boosting itsreserves by about 40%. The properties, 90% in the Anadarko Basin ofOklahoma, produce 60 MMcf/d, and include 256 Bcf of reserves.
Chevron’s Viosca Knoll Production Triples
A rich pocket of natural gas in the shallow waters off the coast of Mississippi is paying off handsomely for Chevron U.S.A. Production Co., which reports that production has more than tripled this year in its Viosca Knoll Carbonate Trend to 230 MMcf/d, up from 60 MMcf/d in 1999.
Mitchell Plans Second Bridgeport Expansion
One expansion just wasn’t enough for Mitchell Energy &Development Co., which yesterday announced plans for a secondadd-on to its Bridgeport natural gas processing plant in NorthTexas. The expansion, planned for completion by July 2001, isexpected to help the company double its capacity within a year,matching the rapidly growing gas production from Mitchell’s NewarkEast Barnett Shale field.
NYPA Taps Sites for In-City Generation
In an effort to hold off power supply shortages until largerelectricity generating plants come online, the New York PowerAuthority (NYPA) reported that it has selected sites within NewYork City for nine of 11 natural gas-burning generators itpurchased from General Electric Packaged Power.
High U.S. Prices Prompt Increased LNG Trade
The price is right for LNG in the U.S. currently, and termimport deals should be locked in before these opportunities vanish,according to Tamela Pallas, president and COO of CMS Energy’sMarketing Services and Trading division.