Ownership

PNG Ventures Inc. has agreed to purchase a 100% ownership interest in Earth Biofuels subsidiary Earth LNG Inc., which includes an Arizona plant that is one of only five vehicle-quality liquefied natural gas (LNG) production facilities in the United States, the company said Tuesday. Financial terms were not disclosed.

Houston-based Cabot Oil & Gas Corp., which has been boosting its natural gas exploration and development across East Texas and into northern Louisiana, agreed to pay an undisclosed private party $602.8 million to purchase some producing properties, leasehold acreage and natural gas gathering infrastructure in the Cotton Valley trend. The 25,000 gross acres to be acquired in the Minden area of East Texas would add about 32 MMcf/d net to Cabot’s production, the company said. Proved reserves are estimated by Cabot to be around 176 Bcfe, but Cabot said it “expects to benefit from significant resource potential through 300-400 probable and possible” new locations. Infrastructure includes 33 miles of pipeline, 5,400 hp of compression and four water disposal wells and is valued at about $26 million. The independent would have a 97% average working interest in the leasehold. Cabot has drilled 77 wells in the Minden area on its 12,700 acres with a 100% success rate since its initial discovery in 2006, according to CEO Dan O. Dinges. To lock in margins and to ensure cash flow to execute the drilling program without diluting Cabot’s 2008 capital program, the company placed swaps covering estimated production for the rest of 2008 through 2010. The volumes swapped during this period represent revenues of more than $600 million from 47.5 Bcfe, or 27%, of the acquired proved reserves, the company said. Swaps for 2008, 2009 and 2010 were set at $13.15, $12.18 and $11.43/Mcf, respectively, net to the properties for natural gas and $125.35 average swap price for oil over the same period.

Anadarko Petroleum has completed a $2.2 billion transaction that has accelerated the monetization of its midstream assets while retaining its existing ownership, control and management of the assets, the company said.

Iberdrola Renewables’ U.S. energy business, PPM Energy, announced that its subsidiary, Enstor Inc., completed the acquisition of ownership interests in the Freebird Gas Storage facility in Lamar County, AL from Houston-based Multifuels LP and Denham Capital. The transaction is valued at $164 million subject to adjustments. RBC Capital Markets advised on the sale. The natural gas storage facility has an existing working capacity of 7.6 Bcf with the potential to be expanded up to 11.4 Bcf. The Freebird facility is located on the Tennessee 500 line. The Northwest Alabama Gas District is a co-owner of the facility.

Iberdrola Renewables’ U.S. energy business, PPM Energy, said subsidiary Enstor Inc. completed the acquisition of ownership interests in the Freebird Gas Storage facility in Lamar County, AL, from Houston-based Multifuels LP and Denham Capital. The transaction is valued at $164 million subject to adjustments. RBC Capital Markets advised on the sale. The facility has a working capacity of 7.6 Bcf with the potential to be expanded to 11.4 Bcf. The Freebird facility is on the Tennessee 500 line. The Northwest Alabama Gas District is a co-owner of the facility.

San Diego, CA-based Sempra Energy was awarded approximately $172 million, including interest, to settle a 2002 dispute involving its 43% ownership of two Argentine natural gas holding companies, Sodigas Pampeana and Sodigas Sur, the company said last Tuesday. The award came from an autonomous third-party organization, the International Centre for Settlement of Investment Disputes.

San Diego, CA-based Sempra Energy was awarded approximately $172 million, including interest, to settle a 2002 dispute involving its 43% ownership of two Argentine natural gas holding companies, Sodigas Pampeana and Sodigas Sur, the company said Tuesday. The award comes from an autonomous third-party organization, the International Centre for Settlement of Investment Disputes.

Denver-based MarkWest Energy Partners LP has purchased 100% of the ownership interest in Santa Fe Gathering LLC and the Grimes Gathering System in Roger Mills and Beckham counties, OK, for an undisclosed amount. Current system throughput on the Grimes system, which was constructed in May 2005, is 16 MMcf/d.

Kinder Morgan Inc. (KMI), on track to take the company private in 2007, last week reported its ownership in Kinder Morgan Energy Partners LP (KMP) lifted quarterly net income from continuing operations to $137.3 million ($1.02/share), from $128.9 million ($1.04) in 3Q2005. KMP, meanwhile, reported 3Q2006 net income fell to $223.8 million from $245.4 million because of some accounting changes.