Executing

Canadian Pan Ocean Ltd., funded by Asian investors, has put together an operating company in the liquids-rich Duvernay Shale in southwestern Alberta, executing a binding term sheet for a farm-out agreement with Canadian producer Mako Hydrocarbons Ltd. for the producer’s 50% working interest in its Alberta Joint Venture (AJV).

DCP Midstream Partners has moved to increase its market position in East Texas, agreeing to pay Penn Virginia Resource Partners LP (PVR) approximately $63 million for the Crossroads processing plant and associated gathering system in Harrison County, TX, the two companies said.

Setting aside low natural gas prices and unseasonably warm weather in the first quarter, Bismarck, ND-based MDU Resources Group Inc. is riding the continuing Bakken Shale boom in its home state, growing its oil production 19% for the first three months of this year and increasing its working rig count from two to 10 for its exploration and production (E&P) unit over the most recent quarter-over-quarter period.

An agreement to merge with Energy Transfer Equity LP (ETE) may be in place, but Southern Union Co. agreed Friday to discuss a higher offer from Williams.

Southern Union Co.’s Trunkline Gas Co. has signed a precedent agreement with DCP Midstream LLC to provide long-term, firm transportation service for liquids-rich gas. DCP Midstream will be the anchor shipper on a modified portion of the Trunkline system in South Texas focusing on Eagle Ford Shale production.

Pacific Connector Gas Pipeline completed an open season last week, with seven shippers executing precedent agreements for 1.49 Bcf/d of firm capacity, which exceeds the initial design capacity of 1 Bcf/d. The pipeline project is a partnership of Williams Pacific Connector Gas Pipeline LLC, PG&E Strategic Capital Inc. and Fort Chicago LNG II U.S. LP. The open season began Feb. 1 and closed March 5 (see NGI, Feb. 5).

Pacific Connector Gas Pipeline completed an open season, with seven shippers executing precedent agreements for 1.49 Bcf/d of firm capacity, which exceeds the initial design capacity of 1 Bcf/d. The pipeline project is a partnership of Williams Pacific Connector Gas Pipeline LLC, PG&E Strategic Capital Inc. and Fort Chicago LNG II U.S. LP. The open season began Feb. 1 and closed March 5 (see Daily GPI, Feb. 5).

Executing a plan first announced in August, Washington WaterPower will change its corporate name to Avista Corp. Jan. 1 thecompany announced Tuesday. All company operations will be unifiedunder the new name. Washington Water Power along with its WPNatural Gas division will combine to form an operating division ofthe new company called Avista Utilities. On Jan. 4, the firstbusiness day of the new year, all Washington Water Power stock willbe traded for the first time as Avista Corp. common stock under theticker symbol “AVA”. According to a company spokesman, the namechange allows the company more flexibility beyond its utilityidentity and geographic location.