Undisclosed

Kinder Morgan Inc. (KMI) reported Thursday that it has signed a 10-year firm natural gas transportation contract with an undisclosed shipper that will result in a 125,000 Dth/d expansion of its TransColorado pipeline system, but a much larger 600,000 Dth/d expansion to accommodate new production from the Piceance, Paradox, Uinta and other basins in Colorado, Utah and Wyoming has been delayed (see Daily GPI, March 17).

Gastar Exploration, Ltd., in conjunction with First Source Texas Inc. (FST), has entered into an agreement with an undisclosed private industry participant to acquire a 75% interest in approximately 9,100 gross acres (6,500 net acres) that lie immediately adjacent to and nearby Gastar’s existing East Texas Deep Bossier acreage. Assuming that Gastar’s and FST’s existing partners in the Deep Bossier play exercise their rights to a proportionate share of these leases, Gastar is expected to hold a 45% working interest position in these additional leases. With the addition of these leases, Gastar, FST and their minority partners will control a total of approximately 22,200 gross seismically controlled acres in the East Texas Deep Bossier play. The terms of the agreement called for Gastar, FST and their partners to make an initial payment of $800,000 and a subsequent final payment of $800,000 on or before Aug. 15, 2004. “The addition of this acreage, which Gastar believes significantly enhances our position in the Deep Bossier play, is another direct consequence of the positive results achieved from Gastar’s initial Deep Bossier well, the Belin Trust A-1 well,” said J. Russell Porter, Gastar’s COO.

Gastar Exploration, Ltd., in conjunction with First Source Texas Inc. (FST), has entered into an agreement with an undisclosed private industry participant to acquire a 75% interest in approximately 9,100 gross acres (6,500 net acres) that lie immediately adjacent to and nearby Gastar’s existing East Texas Deep Bossier acreage. Assuming that Gastar’s and FST’s existing partners in the Deep Bossier play exercise their rights to a proportionate share of these leases, Gastar is expected to hold a 45% working interest position in these additional leases. With the addition of these leases, Gastar, FST and their minority partners will control a total of approximately 22,200 gross seismically controlled acres in the East Texas Deep Bossier play. The terms of the agreement called for Gastar, FST and their partners to make an initial payment of $800,000 and a subsequent final payment of $800,000 on or before Aug. 15, 2004. “The addition of this acreage, which Gastar believes significantly enhances our position in the Deep Bossier play, is another direct consequence of the positive results achieved from Gastar’s initial Deep Bossier well, the Belin Trust A-1 well,” said J. Russell Porter, Gastar’s COO.

El Paso Natural Gas Co. last week purchased Copper Eagle Gas Storage LLC for an undisclosed amount. Copper Eagle was set up two years ago as a joint effort by El Paso Corp. affiliate Crystal Gas Storage Inc. and Pinnacle West Energy, and it now is moving forward on its second attempt to become the Phoenix area’s first natural gas storage project (see Daily GPI, Aug. 19: Oct. 16, 2001).

El Paso Natural Gas Co. said Tuesday it had purchased Copper Eagle Gas Storage LLC for an undisclosed amount. Copper Eagle was set up two years ago as a joint effort by El Paso Corp. affiliate Crystal Gas Storage Inc. and Pinnacle West Energy, and it now is moving forward on its second attempt to become the Phoenix area’s first natural gas storage project (see Daily GPI, Aug. 19; Oct. 16, 2001).

CMS Energy has sold the government energy services division of CMS Viron to Pepco Energy Services for an undisclosed amount. Pepco was a partner with CMS Viron in numerous federal contracts including the largest federal government energy savings contract ever awarded in 1999 with the Military District of Washington. That contract covered five military bases in the Washington, DC, area.

Apache Corp. said Tuesday it has acquired producing properties in South Louisiana valued at $260 million from an undisclosed private company, a move it predicts will boost its domestic natural gas production by more than 10%.

Aquila Inc. on Tuesday completed the sale its natural gas storage assets in the United Kingdom to an undisclosed energy trader based there for US$34.9 million, bringing its already announced asset sales that are closed or pending to $911 million total.

Aquila has purchased the proposed Red Lake Storage Project from Southwest Gas Corp. for an undisclosed sum. The deal includes 36,000 acres about 30 miles north of Kingman, AZ, and the rights to develop a salt cavern gas storage facility. Along with the land, Aquila purchased the water and mineral rights necessary to develop the facility.