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Magazine - December 2006

A growing number of E&P companies want fast access to public-equity capital-but when is it a smart move to hitch


FEATURES
CO-CEOs EXPLAIN PLANS FOR BREITBURN

BreitBurn Energy Partners LP has joined Linn Energy LLC and EV Energy Partners LP as the new U.S. oil and ...

CAPITAL TO REMAIN PLENTIFUL IN 2007

In the wake of the recent slide in commodity prices, look for a surge in energy M&A deals in 2007 ...

NEW GLOBAL ENERGY MAP TAKING SHAPE

Emerging centers of gravity in the global oil, gas and LNG markets have strategic implications for the U.S. and its ...

RANGELY FIELD FAR FROM PLAYED OUT

CO2 has been successfully pumped into northwestern Colorado's Rangely Field for 20 years. The still-flourishing enhanced-recovery project offers lessons for ...

LOOKING PAST TRADITIONAL PERILS

An informal approach focused solely on traditional oil and gas industry risk may be insufficient in today's business environment. Non-traditional ...

NEWSWELL
 
FROM THE EDITOR-IN-CHIEF
Country Risk

High oil prices have pumped billions of dollars into the coffers of OPEC and non-OPEC producers alike. Thanks to that, ...

COMPLETIONS
Oh Canada

The era of the dominance of the Canadian energy trusts is drawing to a close just as a similar E&P ...

TRENDS AND ANALYSIS
GAS RESOURCE-PLAY ECONOMICS

Collapsing gas market fundamentals recently drove both October Nymex gas futures and Henry Hub spot gas prices to four-year lows, ...

E&P MOMENTUM
COLUMBIA RIVER BASIN WATCH

A late October state lease sale in Washington produced some excellent bids, and served to swell the already considerable buzz ...

EXPLORATION HIGHLIGHTS
Eastern U.S.

1 Cabot Oil & Gas Corp., Houston, took out a permit for a wildcat to Mississippian in Section 9-14s-1e, 1.5 ...

Gulf Coast

1 A Rodessa discovery tested for 2.14 million cu. ft. of gas and 18 bbl. of condensate a day for ...

Midcontinent and Permian Basin

1 Wichita, Kan.-based Red Oak Energy Inc. drilled a discovery about 13 miles southwest of Scott City in the Hugoton ...

Western U.S.

1 Pioneer Natural Resources Co., Dallas, presented Halliburton Energy Services Group with a multimillion-dollar contract to handle drilling services at ...

International Highlights

Yemen remains a rewarding province for independent operators. In the central portion of the Middle Eastern country, Norwegian firm DNO ...

NEW FINANCINGS
New Financings

Equity Pengrowth Corp.Toronto: PGF-UNCalgaryC$526.8 millionPrivately placed 23.3 million units at C$22.60 each to acquire the Carson Creek ...

COMPANY BRIEFS
Anadarko raises $2.25B in GOM deals; does swap

BHP Billiton, Melbourne, Australia, (NYSE: BHP) Hess Corp., New York, (NYSE: HES) and Repsol YPF, Madrid, Spain, (NYSE: REP) plan ...

M&A news

• Pogo Producing Co., Houston, (NYSE: PPP) plans to divest certain non-strategic oil and gas properties mainly in the Gulf ...

Dominion E&P sale to fetch $10- to $15B

Dominion, Richmond, Va., (NYSE: D) plans to sell most of its E&P assets to focus on its power-related businesses. The ...

Additional news

• Universal Compression Holdings Inc., Houston, (NYSE: UCO) subsidiary Universal Compression Partners LP (Nasdaq: UCLP) has priced its IPO of ...

ON THE MONEY
BULLISH MERRILL MOVE

In a move very much consistent with its bullish logo, Merrill Lynch & Co. this fall announced a strategic stampede ...

EDITORS COMMENT
Global Energy Heavyweights To Impact U.S. Oil, Gas Markets

A new global energy map is taking shape as Canada, Russia and Qatar come to play new, more decisive supply-side ...

Gas Resource-Play Economics

Collapsing gas market fundamentals recently drove both October Nymex gas futures and Henry Hub spot gas prices to four-year lows, ...

Look For More M&A Deals, Fewer IPOs In 2007

It's hard to believe but looking back at much of 2006, the public stock-market valuations of many E&P companies actually ...

Private E&P Companies Revisiting Alternative Financing Options

Despite the drawbacks of regulatory demands and increased investor scrutiny, more private oil and gas companies are making the move ...

Chesapeake's McClendon: Staying The Course On Operating Strategy

In spite of some criticism about its acquisition pace, Chesapeake Energy Corp. (NYSE: CHK) chief executive Aubrey McClendon says the ...

Iraqi Ambassador Urges Foreign Investment

Iraq's ambassador to the U.S., Samir Shakir Mahmood Sumaida'ie, says the current climate in Iraq should not discourage future investors. "We ...

Panelists: Oil-Service Firms Should Gear Up For Growing Demand

Oil-service companies continue to prosper and expand, according to speakers at a forum sponsored by consulting firm RMI in Houston. The ...

Looking Past Traditional Perils

Oil and gas executives long have been well-acquainted with the obvious risks facing their companies. Spills, environmental damage, fires and ...

Bullish Merrill Move

In a move very much consistent with its bullish logo, Merrill Lynch & Co. this fall announced a strategic stampede ...

Democrats' Victory Implies Changes In U.S. Energy Policy

With the U.S. House of Representatives changing hands in January, what will this mean for energy policy? House Speaker Nancy Pelosi ...

New Canadian Tax Plan To Affect Returns On Trust Investments

A new Canadian tax plan may put the brakes on the growth of income trusts, and has already caused a ...

Rockies Drillers Plan Thousands Of Wells Despite Heavy Regulation

Oil production in the Rockies is expected to increase in the next five years, though regulation on public lands in ...

Country Risk

High oil prices have pumped billions of dollars into the coffers of OPEC and non-OPEC producers alike. Thanks to that, ...

S&P: Time For A Commodity-Price Beather?

As the industry rounds the corner of another year of strong commodity prices, John Thieroff, director, Standard & Poor's Corp., ...

Rangely Field

These days, the Rocky Mountain region is heralded for its profusion of unconventional gas reservoirs. But the region is also ...

Development Of Arctic's Huge Gas Reserves Carry Cost, Pipeline Hurdles

The Arctic presents a tremendous opportunity for eager producers, though the assets in the region will prove to be less ...

Will Venture-Capital Woes Migrate To The Oil And Gas Space?

Sevin Rosen Funds, one of the oldest and most successful venture-capital firms that backs technology start-ups, says it is returning ...

Oh, Canada!

The era of the dominance of the Canadian energy trusts is drawing to a close just as a similar E&P ...

Oh, Canada!

The era of the dominance of the Canadian energy trusts is drawing to a close just as a similar E&P ...

Moving On-Ward

In May, Oklahoma City-based SandRidge Energy Inc., known at the time as Riata Energy Inc., announced that Tom L. Ward ...

HEADLINES
PRB Energy Closes Acqusition Of Colorado, Nebraska Assets

PRB Energy Inc., Denver, (Amex: PRB) has acquired 12 gas wells and one water-disposal well, and approximately 330,000 net acres ...

FieldPoint Acquires Working Interest In New Mexico

FieldPoint Petroleum Corp., Austin, Texas, (Amex: FPP) has acquired a 50% working interest (43% net) in the Bilbrey Field in ...

Rancher Snags Powder River Basin Interests For $46MM

Rancher Energy Corp., Denver, (OTCBB: RNCH) has acquired working interests in the South Glenrock B and Cole Creek South oil ...

Exco To Buy Some Of Anadarko's Louisiana Assets For $1.6B

Exco Resources Inc., Dallas, (NYSE: XCO) plans to acquire producing oil and gas properties, acreage and other assets in the ...

Swift Closes Purchase Of Lousiana Interests

Swift Energy Co., Houston, (NYSE: SFY) has closed the acquisition of interests in operated wells and acreage in the northeast ...

Basic Energy Services Enters Two Acquisition Agreements

Basic Energy Services Inc., Midland, Texas, (NYSE: BAS) has entered into two asset-purchase agreements for approximately $26 million in cash. The ...

Whiting Sells Noncore Assets In U.S. And Canada

Whiting Petroleum Corp., Denver, (NYSE: WLL) has sold its interests in several noncore properties in the U.S. and Canada to ...

Allis-Chalmers Acquires Oil & Gas Rental Services

Allis-Chalmers Energy Inc., Houston, (Amex: ALY) has acquired substantially all the assets of Oil & Gas Rental Services Inc., Morgan ...

Edge Petroleum To Acquire Additional Interests In South Texas Deal

Edge Petroleum Corp., Houston, (Nasdaq: EPEX) has amended its previously announced deal and plans to acquire additional properties in 13 ...

Statoil Plans To Acquire Norsk Hydro For US$30.6 Billion

Statoil ASA, Stavenger, Norway, (NYSE: STO) plans to acquire Norsk Hydro ASA, Oslo, (NYSE, Oslo: NHY) except for its aluminum ...

Q Consolidated Acquires Infinity Subsidiaries

Privately held Q Consolidated Oil Well Services LLC has acquired oilfield-service subsidiaries Consolidated Oil Well Services Inc. and CIS-Oklahoma Inc. ...

EV Energy Acquires Assets From Five States

EV Energy Partners LP, Houston, (Nasdaq: EVEP) has acquired properties in North Louisiana, East Texas, Western Oklahoma and West Texas ...

Mittal Group To Acquire Half Of Lukoil Subsidiary

Mittal Investments, a subsidiary of Mittal Group, Indore, India, (NYSE: MT; Bombay: 511672) plans to acquire half of the Caspian ...

Linn To Acquire Texas And West Virginia Assets

Linn Energy LLC, Houston, (Nasdaq: LINE) plans to acquire properties in Texas and West Virginia in three separate transactions from ...

Stone Plans Divestitures, Not Seeking Merger Partner

Stone Energy Corp., Lafayette, La., (NYSE: SGY) plans to divest selected properties in the Rockies and onshore and offshore the ...

Edge To Buy Texas Property From Anadarko

Edge Petroleum Corp., Houston, (Nasdaq: EPEX) plans to acquire properties in Nueces County, Texas, from Anadarko Petroleum Corp., The Woodlands, ...

Superior Energy Services Acquires Warrior

Superior Energy Services Inc., Harvey, La., (NYSE: SPN) has acquired Warrior Energy Services Corp., Columbus, Miss., (Nasdaq: WARR) for approximately ...

Petroleum Development To Acquire Exco's Colorado Assets

Petroleum Development Corp., Bridgeport, W.Va., (Nasdaq: PETD) plans to acquire substantially all the Exco Resources Inc., Dallas, (NYSE: XCO) assets ...

Santos To Divest Its U.S. Assets

Santos Ltd., Adelaide, Australia, (Nasdaq: STOSY; Australia: STO) has retained Scotia Waterous to divest all of its interests in the ...

Shiningbank Cancels Acquisition Of Rider

Calgary-based Shiningbank Energy Income Fund (Toronto: SHN.U) has canceled its acquisition of Rider Resources Ltd., Calgary, (Toronto: RRZ) in a ...

Merrill Lynch Acquires Petrie Parkman

Merrill Lynch, New York, (NYSE: MER) has acquired energy investment-banking and M&A advisory firm Petrie Parkman & Co., Denver and ...

National Oilwell Varco Gains Control Of NQL Energy

A Canadian subsidiary of National Oilwell Varco Inc., Houston, (NYSE: NOV) has acquired 85% of NQL Energy Services Inc., Calgary, ...

AGL Deal With Queensland Gas To Help Block Santos

AGL Energy Ltd., St. Leonards, Australia, (Australia: AGK) plans to acquire a 27.5% stake in Queensland Gas Co. Ltd., Brisbane, ...

Flotek Plans To Acquire Triumph Drilling

Flotek Industries Inc., Houston, (Amex: FTK) plans to acquire Triumph Drilling Tools Inc. from its parent Teal Supply Co., Corpus ...

Petrobras Acquires Gulf Assets From Mariner

Petrobras America Inc., a Houston-based subsidiary of Petroleo Brasileiro SA, Rio de Janeiro, Brazil, (NYSE: PBR) has acquired the 20% ...

Parker Hannifin Acquires Cabett Subsea

Parker Hannifin, Cleveland, (NYSE: PH) has acquired Cabett Subsea Products Inc., Houston, for an undisclosed price. Cabett Subsea designs and manufacturers ...

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