Junior

Junior independent Lexington Resources Inc., which is focused on natural gas exploration in the Arkoma Basin, said Wednesday it more than doubled its drillable land holdings in Oklahoma with the acquisition of 4,600 acres of coalbed methane-targeted natural gas leases. Lexington paid $125,000 toward the farm-out lease purchase of $600,000. Acreage included in the acquisition extends over an area of mutual interest of approximately 24,320 acres. The new leases encompass rights to all possible producing zones to the base of the Hartshorne Coal Formation at estimated depths of approximately 3,000 feet and include a 79.25% net revenue interest and a 100% working interest. With the latest purchase, the Las Vegas-based producer’s land position now totals drillable acreage of almost 9,000 acres.

California’s junior U.S. Sen. Barbara Boxer on Wednesday formally asked President George Bush to push FERC to authorize multi-billion-dollar refunds to her state’s electricity consumers from the alleged wholesale power market manipulations by Enron and others in 2000-2001.

Canadian-based Progress Energy Ltd. and junior independent Cequel Energy Inc. have announced they will combine their assets to create a new energy trust and two publicly listed exploration and production companies.

Canadian-based Progress Energy Ltd. and junior independent Cequel Energy Inc. have announced they will combine their assets to create a new energy trust and two publicly listed exploration and production companies.

Continuing its quest to purchase oil and gas leases across the Midcontinent, junior independent Imperial Petroleum Inc. signed a letter of intent this week to acquire a 50% interest in 17,700 acres of leases in the Arkoma Basin. Many of the identified prospects are located near existing natural gas pipelines.

A subsidiary of Denver-based junior independent Galaxy Energy Corp., has increased its working interest in its coalbed methane (CBM) properties near Sheridan, WY after purchasing about 3,200 acres at the Buffalo Run prospect.

Calgary-based junior independents Terraquest Energy Corp. and Masters Energy Inc. have agreed to merge and create a new public company that will be led by Masters’ current management team. Terraquest is a public company; Masters is a private oil and gas company formed in October 2003 by the former management team of Sunfire Energy Corp. In early December, Masters acquiring some Little Bow assets in southern Alberta for C$7 million, which are now producing 450 boe/d. On a pro forma basis, the merged company will have a production base of 950 boe/d, of which 60% is oil and 40% is natural gas. The merged company will hold approximately 85,000 net acres of undeveloped land in Alberta, with an inventory of natural gas prospects in West Central Alberta and oil and gas prospects in southern Alberta. The company, to be called Masters Energy Inc., will have no debt and working capital surplus of approximately C$2 million.

Junior independent Tengasco Inc., which has cited frustration with its primary lender to finance more wells in its core production areas of Tennessee and Kansas, on Monday filed an amended stock offering to its existing shareholders to reduce its debt and build working capital. The Knoxville, TN-based producer’s original offering was made in mid-October.

Higher natural gas prices in the third quarter continue to tell the tale for most of North American-based producers. However, asset sales, natural field declines and storm shut-ins also are playing a major role in quarterly financial reports.