Kentucky

Chesapeake Energy Corp. has monetized a portion of its proved reserves and production from certain company-operated wells in Kentucky and West Virginia, the company said Wednesday.

BreitBurn Energy Partners LP and Quicksilver Resources Inc. have completed the $1.45 billion sale of all of Quicksilver’s natural gas, oil and midstream assets in Michigan, Indiana and Kentucky to BreitBurn, they said Thursday. BreitBurn paid $750 million in cash and approximately 21.348 million common units of its stock.

BreitBurn Energy Partners LP is building its stake in onshore natural gas properties under an agreement to purchase all of Quicksilver Resources Inc.’s properties in Michigan, Indiana and Kentucky for $750 million in cash and 21.35 million of BreitBurn’s common units. The transaction, expected to close early next month, is 94% weighted to gas, with a total value of about $1.45 billion.

BreitBurn Energy Partners LP is building its stake in onshore natural gas properties under an agreement to purchase all of Quicksilver Resources Inc.’s properties in Michigan, Indiana and Kentucky for $750 million in cash and 21.35 million of Breitburn’s common units. The transaction, expected to close early next month, is 94% weighted to gas, with a total value of about $1.45 billion.

Energas Resources Inc. has reactivated oil and natural gas production in the Parkway Project in Kentucky after gas testing met pipeline requirements. The company’s field personnel have converted two of the first four wells to electric pump jacks utilizing a timing system to stabilize flow rates and pressure. The two wells have produced approximately 66 MMBtu/d of natural gas and 2 b/d of oil since May 23. Energas is now reevaluating the development strategy and proposed treatment methods for the Parkway Project.

Louisville Gas and Electric Co. (LG&E) filed with the Kentucky Public Service Commission to decrease the gas supply clause (GSC) component of its retail rates for consumption Feb. 1 toApril 30, 2007. The newly filed GSC factor of 65.666 cents per 100 cubic feet is a reduction of 11.082 cents from the current rate of 76.748 cents. By comparison, the rate for Feb. 1, 2006 was 127.454 cents.

FERC has given Texas Gas Transmission LLC the green light to expand its storage facilities at its market-area storage complex located in Kentucky and Indiana to provide additional services to its customers.

FERC has given Texas Gas Transmission LLC the green light to expand its storage facilities at its market-area storage complex located in Kentucky and Indiana to provide additional services to its customers.

Thirty-four parcels of Federal land in Alabama, Arkansas, Kentucky, Louisiana, Michigan and Mississippi brought $101,037 to the U.S. Treasury through a competitive auction of oil and gas leases conducted by the U.S. Department of the Interior’s Bureau of Land Management (BLM) on July 11, in Springfield, VA. Bonus bids, filing fees, and rental revenue totaled $322,064, of which $221,027 will be shared with the six states. BLM, Eastern States administers the mineral estate in 31 states east of and adjoining the Mississippi River and offers selected parcels at quarterly competitive auctions. Regulations require the bidding to open at $2 per acre minimum. Seeco, Inc. from Fayetteville, Arkansas purchased a 2,449 acre parcel in Logan County, AR with their bid of $67 per acre — the highest per-acre bid of the auction. Leases are awarded for a term of 10 years and as long thereafter there is production in paying quantities. The Federal Government receives a 12.5% royalty on the value of the amount of production. Also, each respective State Government receives a 25% minimum share of the bonus bids and the royalty from each lease. Twenty-nine parcels remained available for noncompetitive, next-day filing.