Western Gas Resources said Friday it sold its Edgewood gasgathering system and related facilities to Dynegy Inc. for $6.1million, and sold production assets upstream of Edgewood and a 50%joint venture interest in Redman Smackover production project inEast Texas to Vintage Petroleum for $49.7 million. The proceedsfrom the two separate transactions total $55.8 million, and Westernsaid it expects to recognize a pre-tax gain of $1 million from thesales in the fourth quarter of 1998. Both transactions closed Oct.29 with effective dates of July 1, 1998 and Nov. 1, 1998,respectively.
Articles from Producing
Pool marketer Pan-Alberta Gas and a consortium of sevenproducing companies have reached agreement on the terms under whichthe marketing company will be offered for sale to the more than 435Canadian producers in the pool. The announcement of the agreementconfirmed earlier reports that a Canadian coalition was expected towin out over bids from major U.S. marketers.
Hot weather in the producing states of Louisiana and Texas,along with the futures screen’s rising example, set the tone forcash price hikes of 2-3 cents to almost a dime Monday. One tradersaid supplies seemed a bit tight in the Gulf Coast and Midcontinentfor some reason, allowing that it might have been southern coolingdemand soaking up available gas.
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.