Resources

Pioneer Natural Resources, a Dallas-based independent producer,announced an agreement Monday to sell $245 million worth of oil andgas fields to Prize Energy Co., a Tulsa, OK-based producer. Lastmonth, Pioneer had planned to sell most of these same properties toCostilla Energy, but Costilla was unable to close the deal. ThePrize acquisition is expected to close June 29 with an effectivedate of July 1.

With a stunning drilling success Chevron Canada Resources Ltd.has delivered a sharp reminder to skeptics about the natural gaspower north of the U.S. border.

Columbia Energy has accepted defeat in the three-month battlewith Dominion Resources for a merger with Consolidated Natural Gas.Columbia officially withdrew its $6.7 billion offer late Tuesdayfollowing a sweetened merger bid by Virginia Power parent Dominionset at $6.4 billion and the CNG board’s unanimous approval of arevised agreement with Dominion.

The shareholders of Santa Fe Energy Resources and Snyder OilCorp. approved the merger of the two companies during specialmeetings yesterday. More than 99% of the voting shareholders ofeach company voted in favor of the merger. The new Houston-basedcombined company, which will be called Santa Fe Snyder Corp., willhave a market capitalization of $1.6 billion, with reserves of 315million boe. Combined production for 1999 is expected to be 105,000boe/d, 55% of which will be gas and 70% of which will be producedin the U.S.

Barrett Resources was one of the few independent producers ableto emerge from the first quarter with an increase in earningscompared to last year and it achieved the growth through gastrading operations. Revenues from Barrett’s trading division soared136% to $176 million in 1Q99 from 1Q98 and the division reported agross profit of $15.1 million compared to $4.9 million for theprior year first quarter. First quarter trading volumes increased156% to 96 Bcf, or about 1.07 Bcf/d. Barrett reported net income of$7.7 million, or 24 cents per diluted share, compared to $6.2million, or 19 cents per diluted share, for 1Q98.

Tejon Ranch Co. signed an agreement with Enron Capital &Trade Resources Corp. to develop a power plant on its property atthe southernmost end of the San Joaquin Valley at the base of theTehachapi Mountains. The site is strategic because of the proximityof the California Aqueduct, existing major transmission lines, andthe Kern River-Mojave gas pipeline.

Vastar Resources had a far better year in the field than it didin the commodity marketplace, reporting first-quarter 1999 netincome of $19 million, down from $48 million during the firstquarter of 1998. However, Vastar achieved a 24% increase inproduction and continued exploratory success, and is predictingbetter times ahead.

Pioneer Natural Resources Co. of Dallas announced thetermination of a purchase and sale agreement between Pioneer andCostilla Energy Inc. for the sale of certain oil and gas propertiesto Costilla. As a result of Costilla’s failure to close the April 1agreement, Pioneer has received one million additional shares ofCostilla common stock as liquidated damages.

Vastar Resources had a far better year in the field than it didin the commodity marketplace, reporting first-quarter 1999 netincome of $19 million, down from $48 million during the firstquarter of 1998. However, Vastar achieved a 24% increase inproduction and continued exploratory success, and is predictingbetter times ahead.