Reported

Texas-based Quicksilver Resources reported that its Canadiansubsidiary, MGV Energy, has entered into a joint venture withPanCanadian Petroleum, to explore and develop coal-bed methane(CBM) reserves on one million acres of PanCanadian-owned land. Theproject will focus on PanCanadian’s Palliser block in SouthernAlberta, and is one of the largest potential CBM plays in NorthAmerica, the companies said.

Texas-based Quicksilver Resources reported that its Canadiansubsidiary, MGV Energy, has entered into a joint venture withPanCanadian Petroleum Ltd., to explore and develop coal-bed methane(CBM) reserves on one million acres of PanCanadian-owned land. Theproject will focus on PanCanadian’s Palliser block in SouthernAlberta, and is one of the largest potential CBM plays in NorthAmerica, the companies said.

In deciding to focus on their respective core businesses, KinderMorgan and Tom Brown reported that they have entered into adefinitive agreement to dissolve their Wildhorse Energy Partners,LLC, joint venture and split the company’s assets. Created in 1996,Wildhorse is owned by Kinder Morgan with a 55% stake, and Tom Brownwith a 45% share.

Joining the rather large list of third quarter 2000 earningssuccess stories, Williams reported net income that was more thanquadruple the figure for the same period last year. Its profitsrose to $121.1 million ($0.27 per share) from $28.1 million ($0.06per share).

The Houston Exploration Co. reported it intends to add moreproduction to its hedging program for November and December of thisyear to help off-set losses accrued during the last two quarters.The company plans to add 40,000 MMBtu/d to November hedgedproduction and 50,000 MMBtu/d in December. Houston Explorationhedged these volumes with swap prices averaging $5.10 per MMBtu inNovember and $5.19 per MMBtu in December. The additional hedgingraises the ceiling price from $3.55 to $4.05 on hedged volumes forthe period. The company said it has not committed to any furtherhedges, but is currently evaluating these opportunities as part ofits risk management policy.

Williams and ONEOK reported yesterday that they have reached atwo-year agreement in which Williams will provide incremental firmtransportation service of 56,200 Dth/d to the Oklahoma Natural Gas(ONG) division of ONEOK.

TransCanada PipeLines Ltd. (TCPL) reported that it now expects proceeds from its non-core asset divestiture program to rise from the previous estimate of $3 billion to $3.45 billion. As a direct result of this, the company expects to record a positive $200 million after-tax adjustment to last year’s provision for discontinued operations in the third quarter of 2000.

Williams’ energy services business unit reported the closure of itspreviously announced acquisition of the natural gas liquids (NGL)portion of TransCanada’s midstream operations yesterday. The $540million deal was first announced on Aug. 3 (see Daily GPI, Aug. 4).

NGI reported Monday that the 12th victim of the Aug. 19explosion and fire on El Paso Natural Gas had died Friday based onmisinformation received during an interview with Stacey Gerard,deputy administrator of the Department of Transportation’s Officeof Pipeline Safety (OPS). “We got an internal call that the person[12th victim] had died. I mean that’s really all we’re going by,”said DOT spokeswoman Debbie Hinz in trying to explain the erroryesterday. The sole survivor of the New Mexico blast, Amanda Smith,25, remains in critical condition at the University Medical Centerin Lubbock, TX.