Selling

Denver-based Western Gas Resources Inc. made a purchase and saleagreement with EXCO Resources Inc. to sell its 69% interest in theBlack Lake Unit, including the Black Lake processing and treatingfacilities in Louisiana. The sales price of $7.8 million is subjectto adjustment. Western expects to realize a pre-tax loss of about$6.5 million this quarter. This deal is expected to close by Jan.7.

For the second trading session in a row, natural gas futureswere hit with a wave of selling pressure Monday, as bears basked inthe glow of forecasts calling for continued above-normaltemperatures across much of the country. After showing earlypromise last week in trading up to $2.485, the January contract hassince slipped to new life-of-contract lows, closing at $2.224yesterday. Activity was with 69,325 contracts changing hands.

PG&E Corp. is exploring the possibility of selling itsTexas-based natural gas pipeline, processing and liquids assets,according to an 8-K form filed at the Securities and ExchangeCommission yesterday.

Williams Energy Services said it is selling Thermogas, itspropane distribution company, to Ferrellgas for $432.5 million,including $257.5 million in cash and $175 million through seniorFerrellgas common units, which Williams intends to convert to $175million in cash. The sale is expected to close before the end of1999. Williams plans to redeploy the proceeds into wholesalemarketing and midstream operations.

Williams Energy Services said it is selling Thermogas, itspropane distribution company, to Ferrellgas for $432.5 million,including $257.5 million in cash and $175 million through seniorFerrellgas common units, which Williams intends to convert to $175million in cash. The sale is expected to close before the end of1999. Williams plans to redeploy the proceeds into wholesalemarketing and midstream operations.

Tengasco Inc. of Knoxville, TN, is now selling gas from its SwanCreek gas field in eastern Tennessee. “We have signed an amendedagreement with Hawkins County Utility District in Rogersville, TN,to sell natural gas for industrial and residential customers,” saidMike Ratliff, Tengasco CEO.

Natural gas futures were hit with another wave of selling earlyFriday as traders added to losses incurred during Thursday’s25-cent price slide. However after notching its lowest price inthree weeks at $2.87, the December contract worked its way higherto settle at $2.961, a 0.4-cent loss for the day.

Tesoro Petroleum Corp. of San Antonio, TX, agreed to sell all ofits domestic exploration and production business to EEX Corp. ofHouston for $216 million.

The Department of the Interior’s Minerals Management Service(MMS) is beginning its third royalty-in-kind (RIK) pilot, puttingit in the business of selling Gulf of Mexico (GOM) gas productionit accepts in place of cash royalties. The pilot is intended totest a different approach to RIK, using a competitive auction tomove up to 260 MMBtu/d initially.