Valued

A lull in gas storage development is occurring because of the current high cost of injected base gas and changes in the way storage is valued, according to storage expert Jay Evans, president of Houston-based Global Gas Group LLC.

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%.

In an enterprise deal valued at $53.5 billion, Conoco Inc. and Phillips Petroleum Co. announced over the weekend that their boards of directors had unanimously approved a “merger of equals,” after signing a definitive merger agreement. The combination of the Houston-based Conoco and the Bartlesville, OK Phillips, creating ConocoPhillips, will create the third largest integrated U.S. energy company based on market capitalization and oil and gas reserves and production. Worldwide, it will be the sixth largest.

Texas independents Magnum Hunter Resources Inc. and Prize Energy Corp. announced Tuesday they had agreed to merge, creating a new company with a combined enterprise value of $1.2 billion. The companies, both headquartered in the Dallas area, had total proved reserves of approximately 1 Tcfe on Dec. 31, 2000 and at the end of September 2001, they had combined net daily production of 232 MMcfe. The company, which would have a reserve mix of 55% natural gas and 45% oil, would keep the Magnum Hunter name.

Texas independents Magnum Hunter Resources Inc. and Prize Energy Corp. announced Tuesday they had agreed to merge, creating a new company with a combined enterprise value of $1.2 billion. The companies, both headquartered in the Dallas area, had total proved reserves of approximately 1 Tcfe on Dec. 31, 2000 and at the end of September 2001, they had combined net daily production of 232 MMcfe. The company, which would have a reserve mix of 55% natural gas and 45% oil, would keep the Magnum Hunter name.

The combination of Conoco Inc. and Phillips Petroleum Co., announced a week ago in an enterprise deal valued at $53.5 billion, will create the third largest integrated U.S. energy company, and also reduce the number of majors overall. ConocoPhillips, as it is set to be called when the merger closes, would be the third largest U.S. company based on market capitalization and oil and gas reserves and production. Worldwide, it would be the sixth largest.

Denver-based Westport Resources Corp. announced the closing of its merger Tuesday with Belco Oil & Gas Corp. in a transaction valued at approximately $866 million, including the assumption of $523 million of long-term debt, convertible preferred stock, and a hedge portfolio (see Daily GPI, June 12).

Five natural gas projects valued at more than $7 million willget partial funding from the U.S. Department of Energy, which willspend $4.7 million to fund innovations in the industry. Theprojects include a 3D seismic imaging study on deep water hydratesin the Gulf of Mexico and another on tools that will drill inarctic conditions.

Calgary’s TransCanada Power LP, a unit of TransCanada Pipelines Ltd., is buying Westcoast Energy Inc.’s interest in five Canadian cogeneration plants in a deal valued at C$512 million. Westcoast, based in Vancouver, is expected to net C$75 million after taxes, and turn its attention toward its new power generation projects.