Petroleum

Phillips, Ultramar Make Refining Joint Venture

Ultramar Diamond Shamrock and Phillips Petroleum signed a letterof intent to combine all of the operating assets of UltramarDiamond Shamrock and the North American refining, marketing, andtransportation (RM&T) operations of Phillips into a jointventure company named Diamond 66. The deal will not affect Phillipsnatural gas activities, a spokeswoman said.

October 9, 1998

In Brief

Occidental Petroleum’s oil and gas drilling subsidiary laid off80 employees in Bakersfield, CA, on Wednesday, and will eliminateanother 130 jobs as part of a restructuring triggered by low crudeoil prices and its poor stock price performance. The subsidiary’swork force at its Bakersfield headquarters will be pared down to135 by eliminating 210 jobs and transferring another 50 employees.The company’s stock price plummeted last month to a new 52-week lowof 17 3/4 from a high of 30 3/4. It’s stock closed up 9/16 onWednesday following the announcement, but fell 1/8 Thursday to 221/8.

September 28, 1998

Tesoro Boosts Gas Reserves with Purchase

Tesoro E&P Company L.P., a wholly-owned affiliate of TesoroPetroleum Corp., announced earlier this week it purchased a 50%working interest from Sheridan Energy in the Stiles Ranch Fieldnorth of Amarillo, TX.

August 12, 1998

Anadarko Bemoans Earnings, Boasts New Field

Anadarko Petroleum lamented low oil prices when it reportedsecond quarter net income that was about one-fifth what it was inthe same period last year. For the second quarter net incomeapplicable to common stockholders was $2.7 million Revenues were$137.6 million. By comparison, net income for the second quarter of1997 was $13.8 million on revenues of $139 million.

July 30, 1998

Low Crude Prices Hamper OXY Earnings

Occidental Petroleum Corp. reported a $28 million increase innet income for the second quarter compared with 2Q97. Resultsreflected a $290 million pretax gain from the sale of certain oiland gas assets. Earnings before special items were $47 million forthe second quarter of 1998, compared with $138 million for the sameperiod in 1997, reflecting lower crude oil prices.

July 21, 1998

Dynegy Builds Canadian Midstream,

Dynegy Inc., formerly NGC Corp. has purchased ComptonPetroleum’s Canadian midstream assets, including 78 miles ofpipelines, and the 82 MMcf/d Mazeppa and 15 MMcf/d Gladysprocessing plants in southern Alberta, for C$60 million. The dealalso includes a transportation, processing and revenue sharingagreement whereby Compton is assured processing and transportationcapacity at set rates and is paid a fee for bringing in new wellsand production.

July 8, 1998

PanCanadian Gulf Find Similar to Auger

PanCanadian Petroleum subsidiary PanCanadian Gulf of MexicoInc., made a deep-water oil and gas discovery in the Gulf of Mexicothat it likened to Shell’s prolific Auger Field. The Llanodiscovery well, in Garden Banks Block 386 about 137 miles offshoreLouisiana, drilled to a record depth for the Gulf of 27,864 feet.The sands at Llano correlate closely to similar sands encounteredby Shell Deepwater Development in the Auger Field, less than 15miles to the southwest, containing a reported 220 million barrelsof oil equivalent reserves. Auger has reported reserves of 220million Boe with approximate production of 100,000 barrels of oiland 300 MMcf of gas per day.

June 23, 1998

NGSA, IPAA Blast Clinton Offshore Ban

The Natural Gas Supply Association and Independent PetroleumAssociation of America made their displeasure clear over PresidentBill Clinton’s decision last week to extend a moratorium onoffshore drilling. “Cleaner air and increased use of affordable,clean-burning natural gas depend on access to the large natural gasfields off the nation’s coasts,” said NGSA President Nicholas Bush.”Continuing today’s severe restrictions on offshore natural gasproduction is simply not in the nation’s best interest.”

June 15, 1998

Lomak, Domain to Merge, Form Large Independent

Lomak Petroleum and Domain Energy Corp. said they will merge toform a company with a reserve base of nearly 1 Tcf in gasequivalents, reserve life of 12 years and extensive development andexploration opportunities. The company to be created will be calledRange Resources Corp. and will have total assets exceeding $1.1billion.

May 13, 1998

API to Create Gas ‘Component’

As part of a major reorganization plan, the American PetroleumInstitute (API) says it plans to establish a “natural gascomponent” aimed at attracting medium-to-small sized companies asnew members and at retaining current API members.

May 6, 1998