Proved

Houston-based Rocky Mountain Energy Corp. (RMEC), which has been on a proved reserve acquisition spree since going public last year, is negotiating a merger agreement with a larger independent, according to the CEO. The process, which is currently down to two candidates, “likely” would be structured as a sale of RMEC, with its shares exchanged for the stock of the partner.

Houston-based Rocky Mountain Energy Corp. (RMEC), which has been on a proved reserve acquisition spree since going public last year, is negotiating a merger agreement with a larger independent, according to the CEO. The process, which is currently down to two candidates, “likely” would be structured as a sale of RMEC, with its shares exchanged for the stock of the partner.

ExxonMobil Corp. reported higher fourth quarter earnings but lower results for the full year because of lower natural gas realizations and poor downstream market conditions, according to Chairman Lee Raymond. Fourth quarter net income rose $1.4 billion to $4.1 billion, and Raymond said results for the fourth quarter were the highest since the second quarter of 2001. Full year net income fell $3.9 billion to $11.5 billion.

The bull market in cash proved to have staying power Thursday, with further advances tending to outstrip those of the day before. Price movement varied widely and inconsistently from slightly higher at several Gulf Coast and Northeast points to as much as about 35 cents higher in the Rockies. A continuation of cold weather throughout the North and much of the West was credited with keeping prices firmer.

The third offer proved the charm for Unocal Corp., which finally obtained an agreement to acquire the remaining 35% interest in Pure Resources Inc. that it does not already own. Pure Resources had twice rejected an exchange share offer from the El Segundo, CA-based producer, but was finally persuaded by an offer that gave its shareholders a 35% premium and Unocal sole control.

The third offer proved the charm for Unocal Corp., which finally obtained an agreement to acquire the remaining 35% interest in Pure Resources Inc. that it does not already own. Pure Resources had twice rejected an exchange share offer from the El Segundo, CA-based producer, but was finally persuaded by an offer that gave its shareholders a 35% premium and Unocal sole control.

Houston-based Nuevo Energy Co. on Wednesday announced the acquisition of 100 Bcfe of proved reserves — 97% natural gas and associated liquids — for two million shares of its common stock, $62 million in cash and the assumption of $20 million of debt from Athanor Resources Inc., a private company funded primarily by Yorktown Energy Partners. The reserves are located entirely in Terrell County, TX.

Brazil’s Petrobras is buying 22 million bbl of oil reserves and 267 Bcf of gas reserves in Argentina from Devon Energy for $90 million. About 75% of the reserves are classified as proved undeveloped. The properties produced 6,100 b/d of oil and 17 MMcf/d of gas net to Devon’s interest during the first six months of 2002. The transaction, which is subject to Argentine regulatory approvals, is expected to close by the end of the year.

As NGI sources had expected, Thursday’s rise of about a dime in natural gas futures proved sufficient to outweigh moderating weather and the usual demand slump of a weekend period, producing moderate price gains at most eastern points Friday. In the West, however, Waha and PG&E-related points were the only ones to join the overall firmness. Most of the West ranged from flat to down about a nickel, although San Juan-Bondad recorded a whopping 36 cent plunge. Scattered eastern points were flat, but the majority rose by about a nickel to 15 cents.