Pacific Gas & Electric extended a low-inventory Stage 1 OFO(see Daily GPI, Sept. 1) through today. Penalties were unchanged,but the negative imbalance tolerance was tightened to 5%.
Articles from Pacific
What was non-strategic to Union Pacific Resources (UPR) provedto be a good fit with core business for Enron Oil and Gas (EOG).UPR sold its 19% non-operated working interest in the MatagordaIsland Block 623 Field and surrounding blocks to Enron Oil and Gasfor $158 million. The deal will close Aug. 31 with an effectivedate of June 1.
Despite a stinging second quarter net income loss of $17.3million, or $0.07 per share, compared to last year’s second quarternet income of $74 million, or $0.30 per share, Union PacificResources noted the addition of Norcen Energy assets helped pushdiscretionary cash flow up 20% ($56 million) to $332 million ($1.34per share). Producing property volumes increased to nearly 2.8Bcf/d, a 72% increase over the same period last year. The drop innet income was a result of lower commodity prices, higherexploration expenses and interest expense from the Norcenacquisition, UPR said. Included in the company’s second quarterresults were a pre-tax gain of $26 million on the sale of DJ Basinproperties, a settlement of gas supply agreements which addedpre-tax income of $30 million and an $11 million pre- tax gain on aforeign currency exchange.
California regulators and Pacific Gas and Electric (PG&E)earlier this week protested a letter agreement between El PasoNatural Gas and Dynegy Marketing and Trading, that they claim wouldgive the latter the “unilateral right” to keep a large portion ofthe Block II capacity on El Paso off the California market withoutbeing subject to recall rights.
Union Pacific Resources Group announced details of itsparticipation in four successful wells recently completed on itsLand Grant acreage. UPR’s net production from the wells is about 28MMcf/d of gas and 500 barrels of oil/d. The most prolific well, theChamplin 457 A No. 5, is located in the Whitney Canyon field inUinta County, WY. The company owns a 33% net revenue interest inthe well which began producing at an initial rate of 60 MMcf/d.
Pacific Gas and Electric Co. is moving ahead with the sale offive additional power plants, following the California PublicUtilities Commission’s decision this week to lift a temporary haltto the plant auction in response to an appeal by local governmentofficials and a citizens’ action group in San Francisco where twoof the plants are located. PG&E is now authorized to reviewpreliminary bids (“nonbinding expressions of interest”) frompotential buyers.
Union Pacific Resources Group sold its interests in theWattenberg area of Colorado’s Denver-Julesberg Basin toDenver-based United States Exploration Inc. for $41 million. Theproperties, which are in Adams, Arapahoe, Elbert and Weld counties,consist of 336 producing wells, which produced about 5.5 MMcf/d ofgas and 640 barrels of liquids/d in 1997. UPR retained its royaltyinterest in the properties. The transaction closed May 15 and waseffective Jan.1.
After meeting significant conditions to mitigate market power,Enova Corp. and Pacific Enterprises, holding companies of San DiegoGas & Electric and Southern California Gas, respectively,received final FERC approval yesterday of their $6.6 billionmerger. FERC approved the merger application with only minorcode-of-conduct modifications.
Union Pacific Resources Group announced additional details ofproducing properties it will sell to raise at least $600 million byyear-end. US and international properties make up nine bid packagesand will be made available in two phases. The first phase willinclude properties in the Gulf of Mexico, South Louisiana, SouthTexas and East Texas. Executive summaries for these packages willbe available by June 1 with closings anticipated by Oct. 1. Thesecond phase of the program will include properties in the RockyMountains, Argentina, Egypt and Australia. Executive summaries willbe available July 1 with closings anticipated by Oct. 30.