Exploration

Nuevo Energy, a Houston, TX-based exploration and productioncompany, bolstered its California position Tuesday by paying Texaco$61 million for interests in six oil and gas fields. Includingthese acquisitions, 87% of Nuevo’s total reserves and productionwill be based in California.

Range Resources Corp. and FirstEnergy Corp. last week announcedthe formation of a $1 billion exploration and production jointventure in the Appalachian Basin. Each company will own 50% of theyet-to-be-named venture. The deal is expected to close within 60days.

Nevada Energy Inc. signed an offer to purchase from ConsolidatedBeacon Resources Ltd. two separate onshore exploration agreementscovering a combined total area of about 82,000 net hectaresnorthwest of Truro, Nova Scotia. Nevada will have a 75% workinginterest in 27,970 gross hectares and a 100% working interest in60,936 gross hectares and will be the operator. The agreementsrequire the operator to expend capital to fulfil the earningrequirements under the terms of the work programs as required bythe Nova Scotia Petroleum Directorate. Significant offshore gastests have been documented in the 5 MMcf/d range with establishedoil and gas production of 4 MMBoe realized at the onshore StoneyCreek Field within the same depositional basin about 78 milesnorthwest of the lands.

Independent producer Titan Exploration Inc. announced Monday ithas agreed to sell all of its Gulf of Mexico assets to Coastal Oil& Gas for $71.3 million in cash plus overriding royaltyinterests in certain properties. The deal, which is expected toclose May 18th, comes on the heels of the completion of the sale ofits Louisiana onshore properties to Phoenix Oil and Gas Ltd. for$5.4 million in cash.

Shell Exploration &amp Production Co. (SEPCo) outlined a planlast week to develop its strategic Gulf of Mexico (GOM) assetswhile cutting back on other deep-water projects. The plan includescommencing development on Shell’s 17th GOM project, the Brutus oiland gas play, while cutting up to $1.1 billion in E&ampP costs by2001. Shell’s 17 Gulf projects are the most of any GOM producer.

Shell Exploration & Production Co. (SEPCo) plans to moveforward with its 17th deepwater project while at the same timerededicating itself to a cost cutting program for its deep-wateractivity.

Spirit Energy 76, Unocal Corp.’s U.S. Lower 48 exploration andproduction unit, signed a letter of intent to trade most of itsRocky Mountain oil and gas assets for 5.8 million shares of TomBrown Inc. and $5 million in cash. The total value of the deal isabout $76 million. Unocal will hold 16.52% of the outstandingcommon stock of Tom Brown based on the number of shares to beissued. The agreement also gives Unocal a seat on Tom Brown’s boardand the option to increase its ownership up to 19.5% through openmarket purchases.

A strong performance by Columbia Energy Group’s transmission,distribution, and exploration and production operations last yearin spite of 17% warmer than normal weather and lower commodityprices was significantly tainted by several major blunders in itsenergy marketing operations.

Consolidated Natural Gas Co. (CNG) set records for both reserveadditions and production for 1998. Reserve additions in explorationand production totaled 413 Bcfe through additions, revisions, andpurchases, topping the company record of 368 Bcfe set in 1985.Included are 39 Bcf of reserves bought from The Peoples Natural GasCo., a CNG distribution company, late in 1998.