Dominion has closed the sale of its Canadian natural gas and oil exploration and production (E&P) operations to Canadian-based Paramount Energy Trust and Baytex Energy Trust. The Canadian operations were sold to the trusts in May (see NGI, June 4). The closing price was US$624 million, based on currency exchange rates on Monday. At the end of 2006, the Western Canada operations included 267 Bcfe of proved natural gas and oil reserves, with average production of 60 MMcfe/d. Dominion is in the process of selling almost all of its E&P operations as it refocuses on the power generation and energy distribution, transmission, storage and retail businesses. In early June, Dominion made a deal to sell nearly all of its U.S. onshore E&P properties in a two-way transaction with Loews Corp. and XTO Energy Corp. for $6.5 billion (see NGI, June 11). In late April, the company sold its offshore E&P business to a subsidiary of Italy’s Eni SpA for $4.76 billion. Only Dominion’s Midcontinent properties remain to be sold, and that process is expected to begin in July and be completed by the end of the year. Dominion plans to retain its Appalachian Basin operations, which include 1 Tcfe of proved reserves. The operations are considered lower-risk and a strategic fit with the company’s gas gathering, pipeline and storage systems.
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Dominion Completes Canadian E&P Sale
Dominion has closed the sale of its Canadian natural gas and oil exploration and production (E&P) operations to Canadian-based Paramount Energy Trust and Baytex Energy Trust.
Calgary’s PrimeWest, Shiningbank to Merge in C$1.25B Deal
Two of Canada’s largest energy trusts, Calgary-based PrimeWest Energy Trust and Shiningbank Energy Income Fund, agreed last week to merge in an all-stock deal valued at C$1.25 billion. The combined trust will create a natural gas-heavy producer with an undeveloped land base of more than 1.1 million net acres primarily focused in west central Alberta, northeastern British Columbia and the Williston Basin in the United States.
Calgary’s PrimeWest, Shiningbank to Merge in C$1.25B Deal
Two of Canada’s largest energy trusts, Calgary-based PrimeWest Energy Trust and Shiningbank Energy Income Fund, agreed to merge in an all-stock deal valued at C$1.25 billion that will create a natural gas-heavy producer with an undeveloped land base of more than 1.1 million net acres primarily focused in west central Alberta, northeastern British Columbia and the Williston Basin in the United States.
NGI The Weekly Gas Market Report
Macquarie-Led Consortium to Buy Duquesne Light in $1.59B Deal
Pennsylvania-based Duquesne Light Holdings has agreed to be acquired by a consortium led by Macquarie Infrastructure Partners (MIP) and Diversified Utility and Energy Trusts (DUET). The transaction has a total equity market value of approximately $1.59 billion, based upon the approximately 79.6 million Duquesne Light Holdings common shares currently outstanding. Duquesne Light Holdings’ headquarters will remain in Pittsburgh.
Viking, Calpine Trusts Plan $1.3B Merger
In an effort to become more competitive for future acquisitions, obtain a lower cost of capital and build a more diversified asset portfolio, Viking Energy Royalty Trust and Calpine Natural Gas Trust (CNG Trust) announced plans to merge their two exploration and production operations, which are concentrated in Alberta.
Viking, Calpine Trusts Plan $1.3B Merger
In an effort to become more competitive for future acquisitions, obtain a lower cost of capital and build a more diversified asset portfolio, Viking Energy Royalty Trust and Calpine Natural Gas Trust (CNG Trust) announced plans to merge their two exploration and production operations, which are concentrated in Alberta.
Canadian Energy Trusts Considered Risky by S&P
Canadian energy income funds, which have gained favor with investors with successful exploitation of oil and gas properties in mature basins — many in the Western Canadian Sedimentary Basin — received an overall low rating in a new report by Standard & Poor’s Ratings Service (S&P) last week.
Canadian Energy Trusts Seen as Risky by S&P
Canadian energy income funds, which have gained favor with investors with successful exploitation of oil and gas properties in mature basins — many in the Western Canadian Sedimentary Basin — received an overall low rating in a new report by Standard & Poor’s Ratings Service (S&P) this week.
Free Enterprise Activist Warns Environmental Groups Destroying U.S. Energy Base
There is an array of large foundations and trusts with multi-billions of dollars strategizing and funding “lawsuits and lobbying, appeals, alliances and agitation” to stop oil and natural gas development, thereby undermining the energy base of the United States, author and activist Ron Arnold told members of the Independent Petroleum Association of America (IPAA) last week.
