Placement

Freeport LNG Development LP on Tuesday said it closed on $383 million of private placement note funding with nine institutional investors for the construction of the first phase of its liquefied natural gas (LNG) terminal on Quintana Island in Brazoria County, TX.

One of the two new members of the California Public Utilities Commission was sworn in last Tuesday by Gov. Arnold Schwarzenegger. Dian Grueneich’s official placement on the five-member regulatory panel was announced Thursday by the CPUC’s San Francisco office. A lawyer who has worked on various energy and environmental issues before the CPUC in the past, Grueneich still has to be confirmed by the California Senate, but under state law, she can serve for up to a year without being confirmed. A second Schwarzenegger appointee, Steve Poizner, was not mentioned in the CPUC announcement so it is assumed the governor is still waiting to swear him in to his new position — a paid, full-time appointment, as is Grueneich’s. A long-time observer of the CPUC and a speaker at a Seattle energy conference Thursday, Arthur O’Donnell, said as part of as summary of the state’s current energy issues that Grueneich likely will have to recuse herself from a number of CPUC votes during her first year because of the work she has done in recent years representing various consumer, energy efficiency and environmental interests before the CPUC.

East Tennessee Natural Gas expected to complete final steps towards placement of the Patriot Extension facilities into service Thursday afternoon and thus was accepting nominations for Friday gas flow on Patriot. The project’s service start-up was delayed from last week’s projection of this past Tuesday (see Daily GPI, Nov. 14).

Dallas-based independent Angus Energy Corp. said it completed a $3 million private placement and has acquired one of the largest acreage positions in the expanding Barnett Shale natural gas play in central Texas. In connection with the financing, Angus has acquired the exclusive drilling rights and operating interests in the Stanton Powell Ranch and surrounding properties located in Bosque County, TX. The company now controls over 17,000 acres of mineral interests in the Barnett Shale, making it one of the largest leaseholders in the area. Angus also holds an option to acquire an additional 141,500 Barnett Shale acres. The Barnett Shale gas play is the largest natural gas field in Texas and a primary supplier to the North American gas market. The U.S. Geological Survey estimates the Barnett may hold 10 Tcf of recoverable natural gas with production in the region currently exceeding 6 Bcf per month. Natural gas was discovered on the Stanton Powell Ranch property in 1996. Angus will employ the latest proven horizontal drilling and fracture technologies to recover the gas within its Bosque County properties. Seismic has already been shot on the property and drilling operations will commence immediately. As part of the financing agreement Angus will submit certain filings to the SEC and apply for a listing on the American Stock Exchange within 120 days.