Swallows

Castle Energy Corp. has agreed to sell all of its domestic oil and gas properties to Delta Petroleum for $20 million in cash plus 9.6 million shares of Delta common stock, which would result in the company owning 43% of Delta. The properties consist of oil and gas interests in 525 oil and gas wells in 14 states, including associated undeveloped acreage, with total proved reserves of 65 Bcfe of gas, of which 32 Bcfe are proved developed producing reserves. The effective date of the sale was Oct. 1, 2001 and closing is expected by April 30.

Cabot Oil & Gas Corp. completed its $230 million purchased of Cody Co., the parent company of Cody Energy LLC, doubling its reserves in the Gulf Coast region (see Daily GPI, June 22). Cabot paid Cody shareholders $181 million in cash and two million shares of its common stock with a value per the agreement of $24.497 per share.

Gulf Canada Resources is expecting to more than double its dailygas production by swallowing rival Crestar Energy in aC$1.7-billion ($1.1-billion) friendly cash and stock transaction,excluding C$565 million in debt assumption. The combination willform a top-five Canadian independent production company with plentyof room to grow.