Tulsa

Denver-based St. Mary Land & Exploration Co. said it closed the previously announced $153 million acquisition of oil and gas properties in South Texas from Tulsa, OK-based Rockford Energy Partners II LLC. The acquired properties target natural gas in the Olmos formation. The net cash paid at closing was $151 million and the acquisition was funded with cash on hand and borrowings under the company’s existing credit facility. “Together with our existing assets in the area, we now have a sizable platform from which to grow our business in South Texas,” said St. Mary CEO Tony Best. “We continue to work on building our drilling inventory throughout the company.” The company has been active on the asset acquisition and sale front in recent years. In late 2006, St. Mary closed on a deal to acquire West Texas oil and gas assets from several undisclosed private parties for $250 million cash (see Daily GPI, Nov. 3, 2006). Earlier this year, the company paid $29.5 million for assets targeting the Olmos shallow gas formation in the Catarina Field in Webb and Dimmit counties, TX. Last month, the company contracted Albrecht & Associates Inc. to market a package of nonstrategic oil and gas properties located primarily in the Rockies and Midcontinent regions. The package represents approximately 74 Bcfe of proved oil and gas reserves.

Williams Pipeline Partners LP has filed with the Securities and Exchange Commission to launch an initial public offering (IPO) in 4Q2007. Formed by Tulsa-based Williams, the initial asset of the new partnership will be a 25% stake in Northwest Pipeline GP, which includes a 3,900 mile bi-directional interstate pipeline system that accesses natural gas supplies in the Rocky Mountains, Canada and the San Juan Basin and serves key markets in the Pacific Northwest. It also includes a working natural gas storage capacity of 12.4 Bcf. Williams will continue to own the remaining 75% interest in Northwest Pipeline and Williams employees will continue to operate it. The IPO expects to offer 13 million common units, representing a 53.6% limited partner interest. Following the IPO, a Williams subsidiary will own the 2% general partner interest, all of the incentive distribution rights and a 44.4% limited partner interest.

Williams Pipeline Partners LP has filed with the Securities and Exchange Commission to launch an initial public offering (IPO) in 4Q2007. Formed by Tulsa-based Williams, the initial asset of the new partnership will be a 25% stake in Northwest Pipeline GP, which includes a 3,900 mile bi-directional interstate pipeline system that accesses natural gas supplies in the Rocky Mountains, Canada and the San Juan Basin and serves key markets in the Pacific Northwest. It also includes a working natural gas storage capacity of 12.4 Bcf. Williams will continue to own the remaining 75% interest in Northwest Pipeline and Williams employees will continue to operate it. The IPO expects to offer 13 million common units, representing a 53.6% limited partner interest. Following the IPO, a Williams subsidiary will own the 2% general partner interest, all of the incentive distribution rights and a 44.4% limited partner interest.

Tulsa-based Williams received four awards from the Bureau of Land Management (BLM) and the Colorado Oil and Gas Conservation Commission (COGCC) for its efforts in the Piceance Basin to apply new drilling technology, establish cooperative relationships with communities and reduce emissions and truck traffic associated with new developments. Williams, which employs 400 in Colorado, received a best management practice award from BLM for integrating a new technology that can drill and complete up to 22 natural gas wells from a single drilling location. Outstanding operations awards were given by the COGCC for a hydrogeology survey to study water quality, road and tunnel construction to shorten the driven distance to a new area, and centralizing the hydraulic fracturing process to eliminate trucking water from the North Rulison field.

A Tulsa, OK-based pipeline construction firm has been fined $150,000 for rigging the bids they submitted to BP America Production Co. for the construction of natural gas pipelines in the Upper San Juan Basin in Colorado.

Tulsa-based Williams net income for the third quarter was $106.2 million (18 cents/diluted share), more than 24 times the $4.4 million (1 cent/diluted share) net income of 3Q2005. The spike came from a 112% increase in natural gas liquids (NGL) sales margins, 22% higher gas production, and significantly reduced forward unrealized mark-to-market losses. These benefits were partially offset by higher operating and maintenance costs.

Tulsa-based Williams net income for the third quarter was $106.2 million (18 cents/diluted share), more than 24 times the $4.4 million (1 cent/diluted share) net income of 3Q2005. The spike came from a 112% increase in natural gas liquids (NGL) sales margins, 22% higher gas production, and significantly reduced forward unrealized mark-to-market losses. These benefits were partially offset by higher operating and maintenance costs.

A Tulsa, OK-based pipeline construction firm and a company general manager pleaded guilty last week in a Denver federal court to charges that they rigged the bids that they submitted to BP America Production Co. to construct natural gas pipelines in the Upper San Juan Basin in Colorado.

A Tulsa, OK-based pipeline construction firm and a company general manager pleaded guilty earlier this week in a Denver federal court to charges that they rigged the bids that they submitted to BP America Production Co. to construct natural gas pipelines in the Upper San Juan Basin in Colorado.