Merge

Two Alberta-based producers, Cabre Exploration and Jet Energy,jointly announced a merger last week, in which Cabre will acquireJet and its 43.9 Bcf of proven reserves. Cabre said it will mailits offer to Jet shareholders no later than Oct. 18.

After wrangling over who would take over whom, France’s largest oilcompany, TotalFina, and Elf Aquitaine agreed to merge in what thecompanies called an “amicable” deal. TotalFina agreed to improve theterms of its initial July 5 hostile offer for Elf that was worth about$43 billion. The move follows a counter-offer made by Elf forTotalFina (see Daily GPI, July 20).

The bloody battle over the right to merge with Southwest GasCorp. has recently claimed another victim: Arizona CorporationCommissioner (ACC) Jim Irvin. Federal and state authorities areinvestigating allegations that the state regulator illegallyinfluenced Southwest Gas to go with Oneok Inc. as a merger partnerinstead of rival suitor Southern Union Co.

The bloody battle over the right to merge with Southwest GasCorp. has recently claimed another victim: Arizona CorporationCommissioner (ACC) Jim Irvin. Federal and state authorities areinvestigating allegations that the state regulator illegallyinfluenced Southwest Gas to go with Oneok Inc. as a merger partnerinstead of rival suitor Southern Union Co.

UtiliCorp United and Empire District Electric Co. have announcedthey have signed a definitive agreement to merge the twoMissouri-based companies in a stock and cash transaction valued at$800 million, including the assumption of debt.

PennzEnergy Co. — recently formed when Pennzoil Products Groupwas spun off to merge with Quaker State — is in the process ofreactivating its onshore U.S. operations and tip-toeing deeper intothe Gulf of Mexico. PennzEnergy operations are focused on threeareas: domestic onshore, domestic offshore, and international.Operations are in East and West Texas, on- and offshore Gulf ofMexico, and in Egypt, Azerbaijan, and Venezuela.

PennzEnergy Co. – recently formed when Pennzoil Products Groupwas spun off to merge with Quaker State – is in the process ofreactivating its onshore U.S. operations and tip-toeing deeper intothe Gulf of Mexico. PennzEnergy operations are focused on threeareas: domestic onshore, domestic offshore, and international.Operations are in the in East and West Texas, on and offshore Gulfof Mexico, and in Egypt, Azerbaijan, and Venezuela.

The supply-side energy marketer Strategic Energy Ltd. (SEL) andthe demand-side management company Custom Energy LLC (CustomEnergy) announced a merger last week designed to help customerslower energy use and cost.

The $4 billion stock merger of Kerr-McGee and Oryx Energyannounced yesterday will create the fourth largest independentproducer in the United States with about one billion equivalentbarrels of proved reserves. The move comes in an environment offoundering commodity prices and widespread industry layoffs andfollows the announcement of aggressive cost-cutting moves by Oryx.