Netting

EnCana closed its $2 billion sale of Gulf of Mexico assets to Statoil, netting $1.45 billion after taxes and other adjustments, the company said Thursday, noting that its total investment in the assets was only $540 million. EnCana said its previously-announced divestiture of its Ecuador assets and select conventional producing properties in Western Canada should go through later this year.

The Government of Canada is now out of the oil and natural gas business, netting nearly C$3.2 billion (US$2.5 billion) from the sale of its remaining 19% stake in Petro-Canada Ltd. In the record equity offering, 49.4 million common shares were sold for C$64.50 ($50.42) per share.

The Government of Canada is now out of the oil and natural gas business, netting nearly C$3.2 billion (US$2.5 billion) from the sale of its remaining 19% stake in Petro-Canada Ltd. In the record equity offering, 49.4 million common shares were sold for C$64.50 ($50.42) per share.

Sixteen of 19 oil and gas leases were sold Thursday by the Bureau of Land Management’s Eastern States division in Springfield, VA, netting more than $65,275. Bonus bids, filing fees, and rental revenue amounting to $47,000 will go to the U.S. Treasury and $18,275 will be shared with the states where the leases are located on lands managed by the BLM. The BLM has responsibility for leasing the federally owned minerals located in the 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/acre. Cyberoil Corp. paid $16,320 for a 1709 acre parcel in Johnson County, AK. Its bid of $8/acre was the highest per-acre bid of the auction. Leases are awarded for a term of 10 years and as long thereafter as there is production of oil and gas in paying quantities. The federal government receives a royalty of 12.5% of the value of production. Also, each state government receives a 25% minimum share of the bonus bid and the royalty revenue from each lease issued in that state. The next competitive oil and gas lease sale will be held in March 2004. Visit the web site at www.es.blm.gov for more information about oil and gas lease sales.

Claiming it has a more cost-effective, quicker solution, California’s regulatory commission last week filed the outline of its plan for reorganizing bankrupt Pacific Gas and Electric Co. with a federal bankruptcy court in San Francisco. Creditors would be paid off by the end of January next year, at which time utility electricity rates would be lowered, ultimately saving consumers billions of dollars.