Reserve

Looking to bolster its core natural gas reserve base in the Southwest, Comstock Resources Inc. announced Wednesday that it has agreed to purchase substantially all of the assets of Ovation Energy, LP. for $62.5 million.

Calgary-based Pengrowth Corp. plans to acquire the remaining Western Canadian assets of Murphy Oil Corp. for C$550 million, the companies announced Thursday. The transaction is expected to be completed in late May.

FERC Chairman Pat Wood said he plans to reserve judgment on whether confidence has been restored in published price indexes until industry surveys are returned and an agency staff report based on the survey responses is completed.

Looking to expand both its acreage and proven natural gas and oil reserve base, Oklahoma City, OK-based Chesapeake Energy Corp. has entered into agreements to acquire $510 million of Midcontinent, Permian Basin and onshore Gulf Coast oil and gas assets through recent agreements to acquire privately-owned Concho Resources Inc. for $420 million and two smaller property acquisitions totaling $90 million.

Looking to expand both its acreage and proven natural gas and oil reserve base, Oklahoma City, OK-based Chesapeake Energy Corp. has entered into agreements to acquire $510 million of Midcontinent, Permian Basin and onshore Gulf Coast oil and gas assets through recent agreements to acquire privately-owned Concho Resources Inc. for $420 million and two smaller property acquisitions totaling $90 million.

Range Resources said that based on drilling results through Sept. 30, the company is on track to meet its production and reserve growth targets for 2003. Third quarter production averaged 159.2 MMcfe/d, a slight increase over second quarter and 5.2% higher than in 3Q2002. With newly drilled wells steadily coming online, production has continued to increase and currently exceeds 162 MMcfe/d. The company also announced that its bank group recently approved an increase in the funds available under its credit facility. The borrowing base was increased by $10 million to $180 million. The company currently has over $75 million available under the facility. On Sept. 30, Range had $280 million of total debt, down from $368 million at the end of 2002. At the end of the third quarter, its debt-to-capital ratio had fallen to 50% from 64% at year-end 2002. “Fourth quarter production is off to a good start, and over 30 wells are currently drilling, completing or awaiting pipeline connection,” said Range President John Pinkerton. “We are also pleased that our bank group is recognizing our progress and is providing additional flexibility under the credit facility. With our stronger financial position, we remain focused on our strategy of drill bit growth coupled with complementary acquisitions.”

Federal Reserve Chairman Alan Greenspan last Thursday appeared to have altered his message on liquefied natural gas (LNG) in his second appearance before Congress in less than a month, saying the United States should look to LNG primarily as a secondary, peak-shaving fuel when domestic gas sources fall short of demand.

Federal Reserve Chairman Alan Greenspan on Thursday fine-tuned his message on liquefied natural gas (LNG) in his second appearance before Congress in less than a month, saying that the United States at a minimum ought to have a “standby LNG system” in place to lessen price volatility in the domestic gas market. But he signaled that the nation should work in the longer term to eliminate it as a back-up by producing “far more” domestic gas supplies.

Federal Reserve Board Chairman Alan Greenspan will be waving his red flag on natural gas supply issues again on July 10 in front of the Senate Energy and Natural Resources Committee. Three weeks ago Greenspan told a House panel that if the United States wants to maintain its current standard of living, it will have to become a bigger player in the global gas market by importing more liquefied natural gas (LNG).