production

Amoco Seeks Court Review of El Paso-Dynegy Contract

Amoco Production and Amoco Energy Trading have wasted no time inpetitioning the D.C. Circuit Court of Appeals to review FERC’srecent decision upholding Dynegy Marketing and Trade’s 1.3 Bcf/dcontract with El Paso Natural Gas.

August 13, 1999

Industry Briefs

MCN Energy followed through as planned on the previously announcedsales of its Midcontinent/Gulf Coast exploration and production(E&P) properties and subsidiaries. Undisclosed privately heldcompanies paid about $105 million for the assets, which are primarilylocated in Texas and Oklahoma. Proceeds from the sales will helpstrengthen MCN’s balance sheet by reducing its debt. At year-end 1998,these Midcontinent/Gulf Coast assets represented 144 Bcfe of reserves,or 12% of the 1.2 Tcfe of proved reserves on MCN’s books. About 80% ofthe reserves sold were gas. MCN announced earlier in August that,consistent with its new regional, operating strategy, the company willretain its natural gas producing properties in Michigan (see Daily GPIAug. 3). Negotiations continue on theremaining Appalachian E&P package.

August 12, 1999

KN’s Horizon Shines in Illinois, Wisconsin

KN Energy has discovered there is more than just cheddar cheeseproduction going on in Wisconsin these days. Potential customersfrom “all segments of the industry” showed interest in its proposedHorizon Pipeline project and have signed preliminary agreements for800 MMcf/d of firm capacity, the company said yesterday.

July 2, 1999

Range Resources, First Energy Form Appalachian Giant

Range Resources Corp. and FirstEnergy Corp. last week announcedthe formation of a $1 billion exploration and production jointventure in the Appalachian Basin. Each company will own 50% of theyet-to-be-named venture. The deal is expected to close within 60days.

June 28, 1999

Amoco Backs Auction for Short-, Long-Term Markets

In a lengthy filing at FERC earlier this week, Amoco Productionand Amoco Energy Trading registered their strong support for thecontroversial auction of capacity in both the short-term andlong-term transportation markets.

April 7, 1999

KeySpan, Houston Exploration in Joint Venture

Attempting to gain access to a potentially plentiful Gulf ofMexico gas supply, KeySpan Exploration &amp Production announcedTuesday it agreed with Houston Exploration Co.to jointly drilland develop 55 leases in the Gulf’s outer continental shelf. The$300 million agreement has an effective date of Jan. 1, 1999.

March 22, 1999

KeySpan, Houston Exploration in Joint Venture

Attempting to gain access to a potentially plentiful Gulf ofMexico gas supply, KeySpan Exploration & Production announcedTuesday it agreed with Houston Exploration Co. to jointly drill anddevelop 55 leases in the Gulf’s outer continental shelf. The $300million agreement has an effective date of Jan. 1, 1999.

March 17, 1999

Unocal Swaps Assets For Tom Brown Assets

Spirit Energy 76, Unocal Corp.’s U.S. Lower 48 exploration andproduction unit, signed a letter of intent to trade most of itsRocky Mountain oil and gas assets for 5.8 million shares of TomBrown Inc. and $5 million in cash. The total value of the deal isabout $76 million. Unocal will hold 16.52% of the outstandingcommon stock of Tom Brown based on the number of shares to beissued. The agreement also gives Unocal a seat on Tom Brown’s boardand the option to increase its ownership up to 19.5% through openmarket purchases.

March 11, 1999

Marketing Losses, Warm Temps Trouble Columbia

A strong performance by Columbia Energy Group’s transmission,distribution, and exploration and production operations last yearin spite of 17% warmer than normal weather and lower commodityprices was significantly tainted by several major blunders in itsenergy marketing operations.

February 15, 1999

Conoco, Exxon Swap GOM Assets

Marking the start of a five-year, $400 million Gulf of Mexico(GOM) exploration and production (E&ampP) assault, Conoco announcedthe exchange of interest in several deep-water blocks with Exxonand the debut of the Deepwater Pathfinder, a drillship capable ofreaching 10,000-foot depths. In the exchange, Conoco acquired 50%of 29 Exxon-owned blocks and Exxon acquired 50% of 30 Conoco-ownedblocks. The undeveloped acreage is in Green Canyon, Garden Banks,Walker Ridge and Keathley Canyon. Terms of the transaction were notdisclosed. With this addition, Conoco holds interest in 295 blocksin the GOM, amounting to 1.2 million net acres.

February 1, 1999