Denver

Defending its hostile takeover attempt for Denver-based BarrettResources Corp., Royal Dutch/Shell Group’s CEO Walter van de Vijversent a letter to Barrett’s board of directors Wednesday calling the$55 a share offer a “full and fair value” for the gas-richindependent. Barrett has rejected Shell’s offer and is nowconsidering strategic alternatives (see Daily GPI, March 12).

Denver-based Barrett Resources Corp. said Friday it will recommend that its shareholders reject Royal Dutch/Shell Group’s takeover bid, calling the $55 per share cash tender offer “inadequate and not in the (company’s) best interests.” Shell, eager to enter the gas-rich Rocky Mountains, launched its hostile bid earlier this month, after being rejected in informal discussions with Barrett executives (see NGI, March 12).

Denver-based Barrett Resources Corp. said Friday it willrecommend that its shareholders reject Royal Dutch/Shell Group’stakeover bid, calling the $55 per share cash tender offer”inadequate and not in the (company’s) best interests.” Shell,eager to enter the gas-rich Rocky Mountains, launched its hostilebid earlier this month, after being rejected in informaldiscussions with Barrett executives (see Daily GPI, March 8).

Analysts who cover Barrett Resources Corp. said yesterday thatonce the data rooms are opened, the Denver-based independent mayhave more than one cash-rich suitor interested in picking up thecompany’s assets, which are heavily concentrated in the naturalgas-rich Rocky Mountains. Barrett formally rejected a bid by RoyalDutch Shell Group, which yesterday launched a hostile takeover (seeDaily GPI, March 12).

Denver-based Western Gas Resources (WGR) reported last week thatits net income for the fourth quarter and end-of-year reachedall-time highs during 2000. The independent diversified natural gascompany posted fourth quarter net income of $18.1 million ($0.47per share), compared to a loss of $1.2 million ($0.12 per share) in1999 for the same time period.

Denver-based Western Gas Resources (WGR) reported yesterday thatits net income for the fourth quarter and end-of-year reachedall-time highs during 2000. The independent diversified natural gascompany posted fourth quarter net income of $18.1 million ($0.47per share), compared to a loss of $1.2 million ($0.12 per share) in1999 for the same time period.

Denver-based Western Gas Resources last week protested that itwas being forced to deliver 5,000 MMBtu/d of natural gas tocash-strapped Pacific Gas and Electric (PG&E) pursuant to theemergency orders of the U.S. Department of Energy.

Denver-based Barrett Resources Corp. reports that its provedreserves are up 21% to 1,372 Bcfe as of Dec. 31, 2000. The totalincludes 1,323 Bcf of natural gas and 8.1 MM bbl of crude oil andcondensate, of which 42% is undeveloped. Gas reserves represent 96%of total proved reserves, which were 1,076 Bcf and 9.7 MM BBls atthe end of 2000.

Denver’s Key Production Co. has agreed to acquire all of theoutstanding common stock of Columbus Energy Corp. in exchange for1.3 million shares of Key common stock. When complete, Columbusshareholders will own about 10% of the combined company, with Keyshareholders owning the rest.