Dallas

Dallas-based Denbury Resources Inc. has retained Credit Suisse First Boston to sell its natural gas-rich offshore operations in the Gulf of Mexico (GOM), which up to now have been the company’s secondary focus. The company targeted June 2004 to complete the sale.

Crosstex Energy Inc. shares soared 30%, or $5.85, to $25.35 last Tuesday in an initial day of trading on the Nasdaq National Market under the symbol XTXI. Dallas-based Crosstex, which owns and controls the general partner share of midstream operator Crosstex Energy LP with a 54% stake, priced the initial public offering of 2.3 million shares of common stock at $19.50.

Crosstex Energy Inc. shares soared 30%, or $5.85, to $25.35 Tuesday in an initial day of trading on the Nasdaq National Market under the symbol XTXI. Dallas-based Crosstex, which owns and controls the general partner share of midstream operator Crosstex Energy LP with a 54% stake, priced the initial public offering of 2.3 million shares of common stock at $19.50.

Dallas-based producer Pioneer Natural Resources Co. will spend up to $600 million in the new year to fund development and exploration activities, with most of the money focused on 400 wells onshore and offshore the United States. The natural gas producer, which is forecasting five-year average annual growth at 10%, also will begin a dividend program next year.

Heritage Propane Partners LP said it has received consents and approvals required to complete its previously announced purchase of Dallas-based midstream operator Energy Transfer Co. (see Daily GPI, Nov. 10). The transactions are still subject to other conditions, including Heritage obtaining financing. “The lenders under our existing credit agreements have agreed to amendments that allow Heritage to proceed with its combination with Energy Transfer,” said Heritage CEO H. Michael Krimbill. “In addition, we had previously filed premerger notification under the Hart-Scott-Rodino Antitrust Improvements Act and have received notice that the Federal Trade Commission has granted early termination of the waiting period.” The series of transactions is expected to close within the next 60 days. Heritage is the fourth largest propane retailer in the United States, serving more than 650,000 customers from nearly 300 customer service locations in 29 states. Energy Transfer operates 4,500 miles of gas gathering and transportation pipelines with an aggregate throughput capacity of 2.5 Bcf/d and natural gas treating and processing assets in Texas, Oklahoma and Louisiana.

Dallas-based independent Remington Oil and Gas Corp.’s exploratory drilling program is paying off, with the announcement Tuesday of three new Gulf of Mexico (GOM) offshore discoveries — including a substantial natural gas find.

Dallas-based independent Angus Energy Corp. said it completed a $3 million private placement and has acquired one of the largest acreage positions in the expanding Barnett Shale natural gas play in central Texas. In connection with the financing, Angus has acquired the exclusive drilling rights and operating interests in the Stanton Powell Ranch and surrounding properties located in Bosque County, TX. The company now controls over 17,000 acres of mineral interests in the Barnett Shale, making it one of the largest leaseholders in the area. Angus also holds an option to acquire an additional 141,500 Barnett Shale acres. The Barnett Shale gas play is the largest natural gas field in Texas and a primary supplier to the North American gas market. The U.S. Geological Survey estimates the Barnett may hold 10 Tcf of recoverable natural gas with production in the region currently exceeding 6 Bcf per month. Natural gas was discovered on the Stanton Powell Ranch property in 1996. Angus will employ the latest proven horizontal drilling and fracture technologies to recover the gas within its Bosque County properties. Seismic has already been shot on the property and drilling operations will commence immediately. As part of the financing agreement Angus will submit certain filings to the SEC and apply for a listing on the American Stock Exchange within 120 days.

Dallas-based Energy Transfer Co., which is in the process of expanding its Texas gas pipeline system, and TXU Fuel Co. have agreed to jointly market natural gas gathering and transportation services to producers in East Texas for redelivery to markets at the Katy Hub, near Houston. The agreement includes firm pipeline capacity for up to 150 MMcf/d with expansion capability up to 250 MMcf/d.

Dallas-based Energy Transfer Co., which is in the process of expanding its Texas gas pipeline system, and TXU Fuel Co. have agreed to jointly market natural gas gathering and transportation services to producers in East Texas for redelivery to markets at the Katy Hub, near Houston. The agreement includes firm pipeline capacity for up to 150 MMcf/d with expansion capability up to 250 MMcf/d.