Texas

Vanguard Natural Resources LLC agreed to acquire natural gas properties in South Texas for $53.4 million in cash and stock from an affiliate of the Lewis Energy Group. The properties have estimated net proved reserves of 20 Bcfe, of which approximately 98% is natural gas and 65% is proved developed. Lewis will continue to operate the wells and the undeveloped portion of the properties, which Vanguard and Lewis will jointly develop. Upon closing, Vanguard will assume from Lewis natural gas swaps and collars based on Houston Ship Channel pricing for approximately 85% of the estimated gas production from existing producing wells for the period July 2008 through December 2011. Vanguard expects to finance the cash portion of the acquisition with borrowings under its existing credit facility. The transaction is scheduled to close before the end of July.

FERC staff has given AGL Resources’ Golden Triangle Storage Inc. (GTS) the green light to resume construction at its East Texas storage project, which was halted earlier this month when the company discovered and self-reported to the Federal Energy Regulatory Commission (FERC) incidents of potential noncompliance with the conditions in its certificate order (see Daily GPI, July 9). GTS reported it quickly implemented several corrective measures to prevent the recurrence of future noncompliance incidents.

Key House Republicans, led by House Energy and Commerce Ranking Member Joe Barton of Texas, Thursday rolled out a package of 13 energy bills that are intended to boost the supply of domestic energy.

Dominion Transmission received a favorable environmental assessment last Monday for its Hub I project, a compressor addition in Pennsylvania and a pipeline connection with Texas Eastern Transmission (Tetco) designed to collect gas from the Rockies Express Pipeline (REX) delivered to Clarington, OH for transportation to major natural gas markets in the Northeastern and Mid-Atlantic states.

Dominion Transmission Monday received a favorable environmental assessment for its Hub I project, a compressor addition in Pennsylvania and a pipeline connection with Texas Eastern Transmission (Tetco) designed to collect gas from the Rockies Express Pipeline (REX) delivered to Clarington, OH for transportation to major natural gas markets in the Northeastern and Mid-Atlantic states.

FERC staff has agreed that the Gulf Crossing natural gas pipeline project through Oklahoma, Texas and Louisiana would have limited adverse environmental impact, with appropriate mitigating measures.

El Paso Corp. has completed the sale of some Gulf of Mexico (GOM), onshore and Texas Gulf Coast properties as a part of its portfolio high-grading efforts (see Daily GPI, Jan. 17). In total, El Paso contracted for the sale of an estimated 309 Bcfe of proved reserves for $752 million in four transactions, each with an effective date of Nov. 1, 2007. The GOM transaction also included the assumption by the purchaser of future plugging and abandonment liabilities associated with those properties, which were reflected on El Paso’s balance sheet as asset retirement obligations of $93 million at year-end 2007. After closing adjustments, final cash proceeds are expected to be $650 million. The proceeds will be used to reduce debt incurred for the acquisition of Peoples Energy Production Co. (see Daily GPI, Oct. 1, 2007). “The sale of these properties, together with the Peoples acquisition, reduces our per-unit lease operating costs, increases our future production growth rate, and increases the onshore U.S. weighting of our inventory of future capital projects,” said Brent Smolik, president of El Paso Exploration & Production Co. “We will continue to look for opportunities to enhance our efficiency, improve the quality of our inventory, and further high-grade our portfolio.” Jefferies Randall & Dewey acted as financial adviser.

FERC staff said last week that the Gulf Crossing natural gas pipeline project through Oklahoma, Texas and Louisiana would have limited adverse environmental impact, with appropriate mitigating measures.

Regency Energy Partners LP has agreed to acquire Nexus Gas Holdings LLC for $85 million, expanding its reach in North Louisiana and East Texas, the Dallas-based company said.