Secures

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.

Fort Worth-based XTO Corp., one of the few U.S. producers expected to post natural gas production gains in the third quarter, has increased its price hedges for gas production through 2004. The company already had hedged about 90% of its 2002 production through the rest of this year.

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.

Fort Worth-based XTO Corp., one of the few U.S. producers expected to post natural gas production gains in the third quarter, has increased its price hedges for gas production through 2004. The company already had hedged about 90% of its 2002 production through the rest of this year.

In an effort to strengthen its liquidity in these tumultuous times for the energy industry, Calpine Corp. said late last week that it has entered into an agreement to sell certain non-strategic Canadian oil and gas properties for $81 million (C$125 million). In addition, the San Jose, CA-based company secured $106 million in non-recourse project financing to give it the leverage to complete construction of its 300 MW Blue Spruce Energy Center in Aurora, CO, east of Denver.

Enron Corp. on Thursday had good news, announcing that two of its banks, JPMorgan, the investment banking arm of JP Morgan Chase & Co., and Salomon Smith Barney Inc., the investment banking arm of Citicorp Inc., had agreed to provide incremental credit lines totaling $1 billion, secured by Enron’s Northern Natural Gas Co. and Transwestern Pipeline Co. assets. The funds will be used to supplement short-term liquidity and to refinance maturing obligations. However, analysts and credit rating services remained dubious about Enron’s long-term ability to secure cash to operate.

Tidelands Oil & Gas Corp. said Wednesday that subsidiary Reef International LLC had received operating and construction permits from the Texas Railroad Commission to begin construction of the Eagle Pass/Piedras Negras International Pipeline crossing from Texas into Mexico. Federal permits still have to be granted, but they are expected “in the very near future,” said Tidelands in a statement.

Tidelands Oil & Gas Corp. said Wednesday that subsidiary Reef International LLC had received operating and construction permits from the Texas Railroad Commission to begin construction of the Eagle Pass/Piedras Negras International Pipeline crossing from Texas into Mexico. Federal permits still have to be granted, but they are expected “in the very near future,” said Tidelands in a statement.

Aquila is beefing up is high deliverability gas storage holdingsin the Gulf Coast region in preparation for serving growinggas-fired power generation demand. The company bought rights to theproposed Houston Energy Center, a greenfield, natural gas saltcavern storage project being developed by SG Resources of Houston,Inc. The sale price was not disclosed.