Strategic

Grapevine, TX-based Reichmann Petroleum Corp, a privately held independent oil and gas operator, said Tuesday that it has formed a strategic partnership with Dallas, TX-based Striker Petroleum LLC to focus on natural gas production in the South Texas area.

EnCana Corp. on Friday revived the hopes for Nova Scotia’s offshore energy industry, unveiling an Offshore Strategic Energy Agreement (OSEA) with the province that establishes the framework for a do over of its $1 billion offshore Deep Panuke natural gas field.

Canadian Utilities Limited, a division of Alberta-based ATCO Ltd., will examine “strategic alternatives” for its gas gathering and processing and natural gas liquids midstream business. Options include reorganization into a business trust or newly created company, sale to a third party or continued operation under the existing corporate structure, the company said. Canadian Utilities has retained advisers to assist it in considerations. ATCO has more than 7,000 employees engaged in power generation, utilities and global enterprises.

Mexico’s Petroleos Mexicanos (Pemex) and Brazil’s Petroleo Brasilerio (Petrobras) are said to be close to forming a strategic alliance to share information and technology for deepwater Gulf of Mexico exploration, Mexico’s Reforma said Friday. Under the first phase of the alliance, Petrobras would give Pemex new technology for its fledgling deepwater Gulf of Mexico exploration while Pemex would provide information about its reserves and deposits.

The Canada-Nova Scotia Offshore Petroleum Board plans to release a draft strategic environmental assessment (SEA) later this month on the offshore Misaine Bank area, a region off Cape Breton’s East Coast that up to now remains mostly unexplored for oil and gas.

A strategic shift to move beyond California and only heavy oil production to a diverse geographic mix that included light oil and natural gas output boosted Berry Petroleum Co.’s 2004 production 24% in 2004, the company said Monday. Quarterly and year-end earnings also set records, with 4Q2004 net income up 169% to $25.3 million ($1.13/share), from 4Q2003’s $9.4 million (42 cents). Annual income rose 114% to $69.2 million ($3.08/share), compared with $32.4 million ($1.47) in 2003.

Following up on announced plans to search for strategic alternatives, Magnum Hunter Resources Inc. said Monday it has hired Deutsche Bank Securities and Merrill Lynch & Co. as financial advisers. Founding CEO Gary Evans announced his retirement last week, and said the next management team would take the company to a new level (see Daily GPI, Oct. 8).

Top officials from Alberta and British Columbia last Thursday touted the strategic positioning and infrastructure of their provinces in facilitating the movement of natural gas through the proposed Alaska pipeline, which, if constructed, will deliver gas to the Lower 48.

Top officials from Alberta and British Columbia on Thursday touted the strategic positioning and infrastructure of their provinces in facilitating the movement of natural gas through the proposed Alaska pipeline, which, if constructed, will deliver gas to the Lower 48.