Stake

Atmos Energy announced last week that it plans to spend about$33 million in stock to buy the remaining 55% share of WoodwardMarketing that it does not already own. The Houston-based marketersells about 125 Bcf/year of natural gas primarily to municipalitiesand industrial end-users in the Southeast and Gulf Coast regions.

Atmos Energy announced plans to buy the remaining 55% share ofWoodward Marketing that it does not already own. It plans to pay$33 million in stock for the Houston-based marketer.

With plans to grow its power generation portfolio in the UnitedStates, InterGen, the power generation joint venture of RoyalDutch/Shell Group and Bechtel Enterprise Holdings Inc., closed adeal yesterday giving the international developer a 30% equityinterest in Houston-based Coral Energy, one of the largest naturalgas and power marketers in the country.

TransCanada PipeLines Ltd., through its wholly-owned subsidiary,TransCanada OSP Holdings Ltd., reported last week it purchased anadditional 29.9% interest in an Ocean State Power (OSP) plant fromNational Grid USA for an estimated $61 million, making it the soleowner of the OSP facility. The transaction is expected to close bySeptember, pending regulatory approvals.

Kerr-McGee Corp. has bought a 50% stake in four explorationlicenses covering 1.5 million acres offshore Nova Scotia, Canada,from Canadian 88 Energy Corp. for $10.5 million. The deepwaterexploration prospects are located 125 miles south of Halifax inwater depths from 500 to 9,200 feet.

An alliance with Canadian producer Canadian 88 Energy Corp. isgiving Duke Energy a greater presence in Canada and access to 100MMcf/d of gas production. Duke also will be optimizing Canadian 88gathering lines and about a dozen processing plants. Initially,Duke will be marketing about 100 MMcf/d of Canadian 88 production.

Duke Energy of Houston is growing its Canadian presence througha gas marketing and asset optimization deal with Calgary-basedCanadian 88 Energy Corp. Duke is making a strategic investment inthe producer and will have an alliance to market gas production andoptimize gathering lines and about a dozen processing plants.Initially, Duke will be marketing about 100 MMcf/d of Canadian 88production.

San Jose, CA-based independent power producer Calpine Corp. madea major investment in upstream gas supply for its current andfuture gas-fired power plants in California. The company bought 90Bcf of proven gas reserves in the Sacramento Basin from VintagePetroleum for $71.5 million. The transaction will make Calpine thelargest gas producer in the basin, raising its production to 43MMcf/d. The Vintage reserves currently produce 14.3 MMcf/d.

San Jose, CA-based independent power producer Calpine Corp. madea major investment in upstream gas supply for its current andfuture gas-fired power plants in California yesterday. The companybought 90 Bcf of proven gas reserves in the Sacramento Basin fromVintage Petroleum for $71.5 million. The transaction will makeCalpine the largest gas producer in the basin, raising itsproduction to 43 MMcf/d. The Vintage reserves currently produce14.3 MMcf/d.