Noncore

As part of its efforts to divest some of the company’s noncore assets, North American natural gas infrastructure specialist Spectra Energy said its Spectra Energy Midstream subsidiary has entered into an agreement with Keyera Facilities Income Fund (Keyera) under which Spectra Energy Midstream has agreed to sell all of its interests in the Nevis and Brazeau River natural gas gathering and processing facilities, located in Alberta, to Keyera for C$129 million.

St. Mary Land & Exploration Co. said it intends to sell a package of noncore oil and gas properties, located primarily in the Rockies and Midcontinent regions. A preliminary estimate indicates that the package represents approximately 74 Bcfe of proved oil and gas reserves, the company said. The sales price of the properties will be determined by a competitive bidding process. Denver-based St. Mary Land & Exploration will complete the divestiture in late December if it receives what it believes is an appropriate offer. The company also announced that it repurchased a total of about 791,000 shares of outstanding common stock in the open market at a weighted average cost of $32.82 a share.

Anadarko Petroleum Corp. (APC), which has been selling off noncore North American properties since it bought Kerr-McGee Corp. and Western Gas Resources last year, last week sold a group of Central and East Texas natural gas-weighted assets to several buyers for $750 million. Only one buyer, EV Energy Partners LP (EVEP), was disclosed.

Anadarko Petroleum Corp. (APC), which has been shedding noncore North American properties since it bought Kerr-McGee Corp. and Western Gas Resources last year, on Monday sold a group of Central and East Texas natural gas-weighted assets to several buyers for $750 million. Only one buyer, EV Energy Partners LP (EVEP), was disclosed.

Investment giant UBS on Friday said it acquired about 200 physical and financial natural gas positions of El Paso Corp.’s noncore merchant natural gas portfolio in late September. Terms of the transaction were not disclosed.

Investment giant UBS on Friday said it acquired about 200 physical and financial natural gas positions of El Paso Corp.’s noncore merchant natural gas portfolio in late September. Terms of the transaction were not disclosed.

Houston-based Plains Exploration and Production Co. (PXD) has agreed to sell some of its noncore assets in California and Texas to Occidental Petroleum Corp. for $865 million in cash. The sale includes PXD’s interests in California’s Asphalto, Buena Vista and Mount Poso fields in the San Joaquin Valley and the Sansinena Field in the Los Angeles Basin, as well as the Pakenham Field in West Texas. The properties currently generate sales volumes, net of exchange related natural gas volumes, of 7,200 boe/d, and as of Dec. 31, 2005, PXD’s independent reserve engineers estimated proven reserves of 45 million boe. Occidental, which noted that the properties are adjacent to some of its other assets, said the properties will contribute about 56 million boe to its reserves. Occidental CEO Ray R. Irani said the company expects to substantially increase the current production rate to about 8,900 boe/d in the next few years. PXD, which expects the transaction to close by Oct. 1, plans to use the sales proceeds to reduce debt and continue repurchasing company shares. Lehman Brothers and Randall & Dewey, a division of Jefferies & Co., assisted PXD in the sales process.

Houston-based Plains Exploration and Production Co. (PXD) has agreed to sell some of its noncore assets in California and Texas to Occidental Petroleum Corp. for $865 million in cash. The sale includes PXD’s interests in California’s Asphalto, Buena Vista and Mount Poso fields in the San Joaquin Valley and the Sansinena Field in the Los Angeles Basin, as well as the Pakenham Field in West Texas.

Continuing to unload noncore assets for solid profits in preparation for its liquefied natural gas (LNG), gas storage and pipeline projects coming to fruition in the next three years, Sempra Energy announced Monday it has agreed to sell its exploration and production subsidiary, Sempra Energy Production Co. (SEPCO) to PEC Minerals LP for approximately $225 million in cash. Sempra said it expects to close the deal next momth.