El Paso Corp. gained a foothold in western Canada last week with the purchase of Canadian independent Velvet Exploration Ltd. for C$8.15/share or about US$280 million, including the assumption of US$52 million in debt. Velvet holds about 172 Bcf of net proved reserves (59% gas) in the Western Canadian Sedimentary Basin and 403,000 acres of undeveloped land. El Paso said the total acquisition cost per proved thousand cubic feet equivalent (Mcfe) is US$1.16, after allocating value to Velvet’s land, seismic position and tax pools.
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Prima Acquires Utah Coalbed Play
Prima Energy Corp. reported last week that it has acquired orgained control of approximately 77,000 gross and 73,000 net acreson the Wasatch Plateau in central Utah, an area that has revealedsignificant coalbed methane (CBM) gas discoveries in the past.
Most Points Dump 50 Cents; California Still the Exception
What was gained on Wednesday was quickly lost yesterday as mostcash prices tumbled about 40 to 50 cents on average following theafternoon post-storage-report dip in Nymex futures the day prior.Southern California prices lost several dollars but most borderspot quotes still came in above $30.
EIA: Regional Wholesale Markets to Grow
Boosted by the momentum gained through the 1980s and 1990s withgrowing regional wholesale electricity trading markets inCalifornia, New York, Pennsylvania, New Jersey, Maryland and theNew England states, more U.S. regions now are open to electricitycompetition, according to a report by the Energy InformationAdministration.
ECONnergy Picks Up Venture Capital
ECONnergy Energy Co., a competitive energy services providerthat serves the tri-state area of New York, New Jersey andConnecticut, gained financial fuel yesterday with a $15 millionRevolving Enterprise Value Loan from RFC Capital Corp. – a boostexpected to drive ECONnergy’s plans to become an energy alternativeleader in the Northeast.
April Price Declines Accelerate; May Moderately Softer
The slippage in April swing prices that had begun mildlyWednesday gained more momentum Thursday as quotes fell by about anickel or more almost across the board except in California, led bydrops of about 15 cents at some Northeast citygates. May bidweekprices also softened, but only by a couple of pennies or so in mostcases, sources said.
Phillips Completes ARCO Alaskan Asset Deal
Phillips Petroleum Co. completed its acquisition of ARCO’s Alaskanbusinesses and gained Federal Trade Commission approval of the deal,which became effective retroactive to Jan. 1. The deal was announcedin March (see Daily GPI, March 17).
Futures See-Saw on Storage and Weather News
Boosted by another morning of strong cash prices, the futuresmarket trudged higher Wednesday as traders gained optimism thatprices may have found a bottom. But that speculation could be a bitpremature because as soon as bulls finished pushing the Januarycontract 1.7 cents higher to its $2.288 settlement the bears tookit lower in after-hours trading. Even a bullish storage report didnot help to dissuade the late selling pressure.
Coastal Grows Gulf Presence
Coastal Field Services Co. made a small increase in itsinterests in Gulf of Mexico Mobile Bayarea and gained the companyoption to increase its share significantly more.
Southern Union Takes Southwest to Court
Southern Union gained permission last week to join an existinglawsuit against Southwest Gas in a last-ditch attempt to overtakeOneok as the winner in the race to merge with Southwest. Thelawsuit accuses Southwest Gas’ board of directors of refusing tonegotiate with Southern Union in good faith. Despite the SouthernUnion lawsuit filing, Southwest reaffirmed its acceptance of theOneok offer.