Westcoast Energy exercised its option to sell its remaining 49%interest in NGX Canada (NGX), an electronic gas trading exchange,to OM Gruppen of Stockholm, Sweden. The deal is likely to lead to asignificant upgrade of the Canadian trading system possibly to acontinental system with multiple commodity offerings, according toits new owner.
Exercised
Articles from Exercised
BP Amoco Buying Another Third of Destin
BP Amoco exercised its right of first refusal to buy SouthernNatural Gas Co.’s one-third interest in the Destin Pipeline,growing its share to two-thirds. Tejas Destin LLC holds theremainder.
Western Buys CA Pipes then Sells them to Calpine
Denver-based Western Gas Resources earlier this week exercisedits long-standing option to buy 170 miles of proprietary gaspipelines in the Sacramento Basin and promptly sold the network oftwo- and 10-inch-diameter pipes to California-based merchant powerplant developer Calpine Corp. No dollar figures on the deals willbe released, and both companies are expected to make formalannouncements later this week or early next week, according toWestern Gas and Calpine.
Industry Briefs
Chesapeake Energy Corp. of Oklahoma City, OK, fully exercised ona cash-less basis the common stock purchase warrant issued to itfrom Gothic Energy Corp. in March 1998 and had thereby acquired2,394,125 shares of Gothic common stock. Chesapeake now owns about13% of Gothic’s common stock. The warrant for 2,439,246 shares hadbeen issued to Chesapeake as part of a transaction involving theacquisition by Chesapeake of shares of Gothic’s senior redeemablepreferred stock, a 50% interest in Gothic’s Arkoma basin gas andoil properties and a 50% interest in substantially all of Gothic’sundeveloped acreage. The shares were issued pursuant to thecash-less exercise provisions of the warrant that permittedChesapeake to surrender the right to exercise the warrant inexchange for a number of shares (45,121) of Gothic common stock.
Sonat Regains 100% Control of Sonat Power
Sonat exercised an option recently to buy back 35% interest inSonat Power Marketing from Atlanta Gas Light (AGL). The price wasnot released. Sonat did say it will be at fair market valuedetermined by investment banks selected by Sonat and AGL. Sonatalready owns the other 65% of Sonat Power Marketing.