In the energy industry’s version of a pas de deux, France’slargest oil company, TotalFina, and Elf Aquitaine last weekacquiesced to a friendly merger after a two-month tussle over whowould acquire whom.
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Eastern Express Still Seeking Customers
El Paso Energy’s Tennessee Gas Pipeline Co. is holding an openseason for its Eastern Express: New England Expansion through 2p.m. CST Oct. 15. The open season, which began yesterday, follows upon an Eastern Express Project 2000 March expansion filing at the FERCfor an additional 168 MMcf/d of capacity from additional compressionat Dracut, MA (see Daily GPI, March 18,1999).
FERC Favors Incremental Pricing for New Pipe Projects
The Federal Energy Regulatory Commission yesterday significantlyraised the bar for interstate pipelines seeking to construct newprojects by requiring that the proposed facilities be able to standon their own financially.
Mitchell Grows West Texas Presence
Mitchell Energy & Development Corp. announced it enteredinto a letter of intent to purchase Conoco’s 50% interest in theJameson processing plant and an associated 2,600-mile West Texasgas gathering system for an undisclosed sum. The Permian Basinplant and facilities currently are owned evenly by Conoco andMitchell.
Mitchell Grows West Texas Presence
Mitchell Energy & Development Corp. announced it enteredinto a letter of intent yesterday to purchase Conoco’s 50% interestin the Jameson processing plant and the associated 2,600-mile gasgathering system for an undisclosed sum. The plant, located in WestTexas, is currently owned evenly by Conoco and Mitchell.
Costilla Files for Chapter 11
Costilla Energy Inc., a Texas-based producer with assets inSouth Texas and the Permian Basin, reported last week it has filedfor Chapter 11 with the U.S. Bankruptcy Court in Midland, TX. Thecompany said despite this setback, its oil and gas operations willcontinue without interruption. The company did not return phonecalls by press time.
Mitchell Increases Spending After Banner Quarter
Invigorated by a strong second quarter, Texas-based MitchellEnergy said last week it is increasing its capital budget by $31million to total $167 million. Most of the increases will bededicated to escalating the company’s drilling program. With thisstepped-up activity, gas production is expected to reach the 250MMcf/d range by the end of the year. Mitchell said production atthat level would equal its January output, before gas prices felldramatically.
Mitchell Increases Spending After Banner Quarter
Invigorated by a strong second quarter, Texas-based MitchellEnergy said yesterday it is increasing its capital budget by $31million to total $167 million. Most of the increases will bededicated to escalating the company’s drilling program. With thisstepped-up activity, gas production is expected to reach the 250MMcf/d range by the end of the year. Mitchell said production atthat level would equal the company’s output it had in January,before gas prices fell dramatically.
Chesapeake CEO Bullish on Gas Supply, Demand
With 87% of its reserves in gas, Chesapeake Energy Corp. CEOAubrey McClendon said his company is “a natural gas company onpurpose.” McClendon told attendees at the PLS Dealmakers prospectconference in Houston Wednesday that both the supply and demandsides look very bright for gas producers, especially relative tooil.
Chevron Transfers Uinta Assets to Chandler Unit
Chevron has agreed to transfer all of its oil and gas assets inUtah’s Uinta Basin to Shenandoah Energy, a new company created byThe Chandler Company, in exchange for an equity ownership interestin Shenandoah and an undisclosed amount of cash. Shenandoah alsowill acquire all of Chandler’s stock. The transactions will have aneffective date of July 1, and are expected to close by Nov. 30,subject to certain conditions and approvals.