Worth

Cross Timbers Oil Co. of Fort Worth, TX, proved oil and gasreserves at year-end 1999 were estimated to be a record 2.02 Tcfe,up 23% compared with 1.64 Tcfe at year-end 1998. Cross Timbersadded 852 Bcfe during 1999 at a cost of 70 cents/Mcfe. Afterdeducting reserve sales of 325 Bcfe, the company replaced 527 Bcfeor 367% of 1999 production. The company’s development program,including the effect of revisions, replaced 341 Bcfe or 237% ofproduction at a cost of 28 cents/Mcfe.

As part of its portfolio rationalization effort, Texaco saidyesterday that it has agreed to sell $161.1 million worth ofsouthwestern and Midcontinent properties to Bargo Energy. Theeffective date of the purchase is January 1, 2000 and closing isexpected to occur late in the first quarter of this year.

Socrates did not say “an unexamined energy industry is not worthrunning.” But he might as well have. As long as there is gas andoil in the ground, it seems, there will be those willing to poreover statistics and share their findings.

Belatedly, the California Energy Commission (CEC) is getting inits two-cents-worth in the state’s remaining gas settlement talksfocused on Southern California Gas Co. The overall thrust of theremaining talks should be to unbundle more, limit the monopolyutilities’ roles, and establish user fees so that only customerswho use certain services pay for them, the CEC has suggested,mirroring stances it has taken in electric restructuringproceedings.

Belatedly, the California Energy Commission (CEC) is getting inits two-cents-worth in the state’s remaining natural gas settlementtalks focused on Southern California Gas Co. which resumed Tuesdayin Los Angeles. A regulatory proceeding earlier in the monthbroadened the scope of the talks at the same time concludingsimilar negotiations centered on Pacific Gas and Electric Co.’snatural gas system in the northern half of the state.

More than 27,000 Texas royalty owners were granted class actionstatus in a suit charging Ft. Worth-based Union Pacific ResourcesGroup and affiliates manipulated gas transactions resulting inunderpayment of royalties for the last six years.

More than 27,000 Texas royalty owners were granted class actionstatus in a suit against Ft. Worth-based Union Pacific ResourcesGroup Inc. Other defendants include UPR affiliates Union PacificResources Co., Union Pacific Fuels Inc., Union Pacific Oil and GasCo., and Union Pacific Austin Chalk Co.

Houston-based El Paso Energy Corp. plans to acquire Crystal GasStorage Inc. of Shreveport, LA, for $57 cash per Crystal share in adeal worth $224.6 million.

Wild speculation last week that Chevron was courting PhillipsPetroleum proved to be false as Phillips management told analyststhe company is not interested in merging with anybody. But theBartlesville, OK-based energy company is planning on selling GPMGas Corp., its natural-gas gathering, processing and marketingsubsidiary, and may form joint ventures with other companies onchemicals and refining and marketing so that it can concentratemainly on exploration and production.