Merge

The New England Gas Association (NEGA) and the New York Gas Group (NYGAS) will merge to become the Northeast Gas Association (NGA), effective Jan. 1, 2003. The new organization will represent the local distribution companies, interstate pipeline companies, LNG importers, and associate companies involved in supporting the natural gas industry in the seven-state region of Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont. Craig Frew, NEGA chairman, and Ralph Tedesco, chairman of the NYGAS Executive Committee announced the merger Tedesco, President and COO of New York State Electric and Gas (NYSEG), will be the first chairman of NGA. Dennis E. Welch, President and COO of Yankee Gas Services Company, will be the vice chairman. Thomas M. Kiley, who has served as President of NEGA and Acting Executive Director of NYGAS, will be President of NGA. NEGA and NYGAS first entered into an alliance in 2001, when they combined several administrative and management functions. The formation of the NGA is consistent with the increasing consolidation of the natural gas industry in the Northeast. The NGA will be administered at 75 Second Avenue, Suite 510, Needham, MA 02494, telephone: (781) 455-6800. A New York office will be located at 1515 Broadway, 43rd floor, New York, NY 10036, telephone: (212) 354-4790.

Alberta Energy Co. Ltd. (AEC) and PanCanadian Energy Corp. have agreed as expected to merge their Canadian-based operations, which will create the largest independent natural gas producer in North America. To be called EnCana Corp., the super-independent would have an enterprise value of more than C$27 billion, with the largest proved reserve base in the world, with 7.8 Tcf and 1.3 billion bbl, equalling 2.6 billion boe.

Alberta Energy Co. Ltd. (AEC) and PanCanadian Energy Corp. have agreed as expected to merge their Canadian-based operations, which will create the largest independent natural gas producer in North America. To be called EnCana Corp., the super-independent would have an enterprise value of more than C$27 billion, with the largest proved reserve base in the world, with 7.8 Tcf and 1.3 billion bbl, equalling 2.6 billion boe. In North America alone, the companies forecast 2.7 Bcf/d for 2002, and would bring to the table more than C$2 billion in combined North American midstream and marketing assets, including energy services, gas storage, natural gas liquids extraction, pipelines and power generation.

Texas independents Magnum Hunter Resources Inc. and Prize Energy Corp. announced Tuesday they had agreed to merge, creating a new company with a combined enterprise value of $1.2 billion. The companies, both headquartered in the Dallas area, had total proved reserves of approximately 1 Tcfe on Dec. 31, 2000 and at the end of September 2001, they had combined net daily production of 232 MMcfe. The company, which would have a reserve mix of 55% natural gas and 45% oil, would keep the Magnum Hunter name.

Texas independents Magnum Hunter Resources Inc. and Prize Energy Corp. announced Tuesday they had agreed to merge, creating a new company with a combined enterprise value of $1.2 billion. The companies, both headquartered in the Dallas area, had total proved reserves of approximately 1 Tcfe on Dec. 31, 2000 and at the end of September 2001, they had combined net daily production of 232 MMcfe. The company, which would have a reserve mix of 55% natural gas and 45% oil, would keep the Magnum Hunter name.

Blue Dolphin Energy Co. and American Resources Offshore Inc.(ARO) have agreed to a merger plan, whereby ARO will become a subsidiary of the Houston-based independent. As part of the deal, Blue Dolphin will acquire all of the outstanding shares of ARO’s common and preferred stock it doesn’t already own, and give ARO shareholders one Blue Dolphin share for every 36.2 shares of ARO stock.

Natural Gas Vehicles (NGV) appear to be making another push into the spotlight as Westport Innovations Inc. and BC Gas Inc. reported last Thursday that their BCG eFuels Inc. joint venture has merged with Seal Beach, CA-based Pickens Fuel Corp. (PFC) to form the largest natural gas fuels provider for NGVs in North America.

Natural Gas Vehicles (NGV) appear to be making another push into the spotlight as Westport Innovations Inc. and BC Gas Inc. reported on Thursday that their BCG eFuels Inc. joint venture has merged with Seal Beach, CA-based Pickens Fuel Corp. (PFC) to form the largest natural gas fuels provider for NGVs in North America.

Two Calgary-based oil and natural gas independents, Compton Petroleum Corp. and Hornet Energy Ltd., have entered into a pre-acquisition agreement whereby Compton will purchase all of the common shares of Hornet for C$2 a share, or C$40.2 million, including C$8.2 million of net debt. Hornet’s reserves total 4.4 MMboe, including 20.5 Bcf, and 70% are proven. Hornet also has 22,000 acres of undeveloped land.