Dallas

Dallas-based TXU Corp. expects to take a write-off of between $3 billion to $4.5 billion on the sale of TXU Europe’s UK assets to Powergen, the German-based utility that agreed to the purchase on Monday.

Despite affirming its “BBB+” rating on Dallas-based TXU Corp., Standard & Poor’s Ratings Services (S&P) said that it has revised the outlook for the electricity and gas provider and its subsidiaries to “negative” from “stable.” The rating agency pointed out that the company has about $18.7 billion in debt outstanding.

Dallas-based independent Remington Oil and Gas Corp. has made two discoveries in the Gulf of Mexico, with first production for both set in early 2003. The discoveries, West Cameron block 426 and East Cameron Block 377, are two of the company’s 11 exploratory wells so far this year, with seven completions and a 64% success rate. According to the company, East Cameron 185 #2 was drilled to 15,100 feet. The company is evaluating future locations to find higher gas saturation; the East Cameron well had “excellent gas shows” but an electric log analysis indicated low saturation. Now, Remington is sidetracking this well to an optimum structural position to capture hydrocarbon pay intervals at about 11,000 feet. The well will be completed and then tied back to the company’s production platform on block 184. Through 2002, Remington expects to drill another 13 exploratory wells. Since 1998, it has drilled 129 with 97 completions and a 75% success rate.

Dallas-based Wiser Oil Co. has ramped up initial natural gas production at its Wild River operations in Alberta, and said that combined gross production rates are averaging 14-15 MMcf/d. The company estimates that gross production on balance will average 9-10 MMcf/d for the rest of this year.

Energy Transfer Co., a privately held Dallas-based company, is paying $265 million in cash for Aquila Inc.’s 50% ownership in the 600-mile Oasis natural gas pipeline system, as well as the company’s Southeast Texas and Mid-Continent pipeline systems, which include natural gas and gas liquids processing assets. In just a few months, Aquila has announced asset sales totaling $483 million.

Energy Transfer Co., a privately held Dallas-based company, has agreed to pay $265 million in cash for Aquila Inc.’s 50% ownership in the 600-mile Oasis natural gas pipeline system, as well as the company’s Southeast Texas and Mid-Continent pipeline systems, which include natural gas and gas liquids processing assets. In just a few months, Aquila has announced asset sales totaling $483 million.

Guardian Pipeline has hired H.C. Price Co. to build its 142-mile, 750 MMcf/d pipeline system in Illinois and Wisconsin. H.C. Price, of Dallas, was selected in a competitive bidding process and will construct the pipeline in one spread, in which work will be done by a single construction crew over the entire length of the project. Murphy Bros. Inc., of Moline, IL, was selected to build Guardian’s 22,225-hp compressor station near Joliet.

Dallas-based Pioneer Natural Resources Co. said Tuesday that it replaced 208% of its production last year, and has the potential in the next year to grow its production base 55-60%. The independent reported that its total proved oil and gas reserves stand at 671 MMboe, or 4 Tcfe, including 325 million bbl of crude oil and natural gas liquids and 2 Tcf of natural gas. Pioneer replaced its 2001 production at a finding cost of $7.49/boe.

The currency devaluation instituted last Sunday in Argentina is expected to impact both the sales and costs of Dallas-based Pioneer Natural Resources Co., which has 17% of its oil and gas reserves in the South American country. The company expects it will likely recognize non-cash charges to reflect the impact of the peso devaluation, but it is too early to assess what those charges may be.