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Magazine - March 2007

Energy lenders may believe oil and gas prices have passed their peak, according to a survey of 44 of these


FEATURES
SHALLOW DJ GAS

The eastern Denver-Julesburg Basin is classic prairie country. The high rolling plains of eastern Colorado, southwestern Nebraska and northwestern Kansas ...

QUESTAR WINS YEAR-ROUND DRILLING RIGHTS

When Salt Lake City-based Questar Market Resources, a subsidiary of Questar Corp., drilled its first well in Wyoming's Pinedale Anticline ...

SPACS PROVIDING PUBLIC START-UP CAPITAL

SPACs, or special-purpose acquisition companies, are making a comeback in the energy space. For years, many investment bankers wouldn't underwrite ...

LISTEN UP: OPERATORS CONTROLING FRAC BOUNDARIES

It's not for lack of trying. Today, the vast majority of rigs working in North America are drilling for gas. ...

NEW PLAYERS PUSHING GULF OF MEXICO M&A PRICES HIGHER

In the most active transactional year ever seen in a single region, the Gulf of Mexico M&A deal flow totaled ...

MANAGEMENT BUYOUT WITH LITLE START-UP CAPITAL-HERE'S HOW

There is a saying in the service sector: "The services we offer are good, inexpensive and fast-pick any two." Sale ...

THE VIEW: U.S. BUYSIDERS EXPECT HIGHER COMMODITY PRICES

Starting last fall, it became clear even to casual industry observers that large oil and gas inventory overhangs weren't going ...

NEWSWELL
 
FROM THE EDITOR-IN-CHIEF
Running Hot and Cold

It's March. Let's hope the month goes out like a lamb, because the winter has been too hot and too ...

COMPLETIONS
CREDIT QUALITY

oftening commodity prices expose oil and gas producers to new enterprise values-and debt profiles. An onshore gas producer 60% weighted ...

TRENDS AND ANALYSIS
CRUDE OIL OUTLOOK

Headlines tell us rapidly growing Chinese crude oil demand has been driving up world oil prices. But for the first ...

E&P MOMENTUM
ALABAMA'S CAMBRIAN CONASAUGA SHALE

Dominion Black Warrior Basin Inc. has made a remote new-field discovery in northern St. Clair County, Alabama. The find is ...

EXPLORATION HIGHLIGHTS
INTERNATIONAL HIGHLIGHTS

Cantarell Field, in the Bay of Campeche in the southern Gulf of Mexico, supplied nearly 60% of Mexico's average daily ...

WESTERN U.S.

1 ConocoPhillips, Houston, plans a remote wildcat on the National Petroleum Reserve-Alaska. The #1 Noatak will be drilled in Section ...

MIDCONTINENT & PERMIAN BASIN

1 McCoy Petroleum Corp., Wichita, Kan., plans a remote wildcat to evaluate Lansing-Kansas City members of the Mississippian to 4,800 ...

EASTERN U.S.

1 Moon-Hines-Tigrett Operating Co., Ridgeland, Miss., tapped southeastern Pontotoc County, Miss., for a Mississippian Lewis sand producer with an initial ...

GULF COAST

1 Harding Co., Dallas, plans to drill a horizontal well to reach Barnett shale within Dallas city limits in Section ...

NEW FINANCINGS
NEW FINANCINGS

Equity CompanyExchange / SymbolHeadquartersAmountComments Teekay Offshore Partners LPNYSE: TOONassau, BahamasUS$169.1 millionClosed its IPO of 8.1 million units at ...

COMPANY BRIEFS
In Memoriam

Michael E. Little, chairman of Pioneer Drilling Co., San Antonio, (Amex: PDC) passed away Jan 13. He was 51. ...

M&A News

• Sterling Energy Plc, London, (London: SEY) plans to acquire Whittier Energy Corp., Houston, (Nasdaq: WHIT) for US$11 per share ...

Additional News

• Quintana Energy Partners LP, Houston, a private-equity fund formed to invest in oil and gas, coal and power, has ...

Tristone breaks out units; hires Petrie research team

Tristone Energy Services Inc., Calgary and Denver, previously Petroleum Place Energy Services Inc., has restructured its business so that its ...

Tenaris to add Hydril to portfolio for $2.2B

Tenaris SA, Luxembourg, (NYSE: TS) plans to acquire Hydril Co., Houston, (Nasdaq: HYDL) for $97 per share in a deal ...

Exco takes second APC package; tab totals $2.4B

Exco Resources Inc., Dallas, (NYSE: XCO) plans to acquire producing properties and other assets in multiple fields in the Midcontinent, ...

Apache takes Permian package for $1B

Apache Corp., Houston, (NYSE, Nasdaq: APA) plans to acquire a controlling interest in assets in the Permian Basin from Anadarko ...

Encore to roll some assets into MLP; sell Barnett stake

Encore Acquisition Co., Fort Worth, Texas, (NYSE: EAC) plans to acquire oil and gas properties in the Williston Basin in ...

ON THE MONEY
ROOM FOR OPTIMISM

At the recent NAPE Expo gathering in Houston, industry participants displayed tempered expectations about near-term commodity prices. However, most E&P ...

EDITORS COMMENT
Tristone Capital's Energy Lender Price Survey

Energy lenders may believe oil and gas prices have passed their peak, according to a survey of 44 of these ...

Record Oil And Gas Project Costs Expected For 2007

The costs of major oil and gas production projects have risen by more than 53% in the past two years ...

Capitalizing A Management Buyout

There is a saying in the service sector: "The services we offer are good, inexpensive and fast-pick any two." Sale ...

Shallow DJ Gas

The eastern Denver-Julesburg Basin is classic prairie country. The high rolling plains of eastern Colorado, southwestern Nebraska and northwestern Kansas ...

Lenders: Smaller Producers Focus On Drilling Existing Portfolios

Several capital providers at this year's NAPE Expo in Houston were enthusiastic about prospective deal flow during the months to ...

Credit Quality

Softening commodity prices expose oil and gas producers to new enterprise values-and debt profiles. An onshore gas producer 60% weighted ...

Buyers, Sellers Coming To Terms In New Gas-Price Environment

As an estimated 15,000 people filed down the aisles at this year's NAPE Expo in Houston, the industry's excitement was ...

U.S. Buyside

Starting last fall, it became clear even to casual industry observers that large oil and gas inventory overhangs weren't going ...

ExxonMobil's Tillerson: Producers On Longer Timelines Than Policy-Makers

Despite the many foreseeable challenges in the future of the oil and gas industry, there is much cause for optimism, ...

Room For Optimism

At the recent NAPE Expo gathering in Houston, industry participants displayed tempered expectations about near-term commodity prices. However, most E&P ...

Financiers: Lower Commodity Prices Are In Smart E&P Plans

Though there is still talk of retreating commodity prices on the horizon, many smart management teams have built that possibility ...

Managing Costs Will Be Key For North American Gas Producers' Success

Managing finding and development costs and field operating costs is going to be more important than ever for North American ...

Hello, Frac

It's not for lack of trying. Today, the vast majority of rigs working in North America are drilling for gas. ...

Gulf Of Mexico M&A

In the most active transactional year ever seen in a single region, the Gulf of Mexico M&A deal flow totaled ...

Robust Canadian M&A Activity Expected In 2007

Canada is poised to become a hotbed of M&A activity in 2007 thanks to the upcoming demise of tax breaks ...

The SPAC

SPACs, or special-purpose acquisition companies, are making a comeback in the energy space. For years, many investment bankers wouldn't underwrite ...

Alabama's Cambrian Conasauga Shale

Dominion Black Warrior Basin Inc. has made a remote new-field discovery in northern St. Clair County, Alabama. The find is ...

Former Iraqi Oil Minister Says Producers Should Avoid Country For Now

While many global oil executives preach optimism to investors and the general public, Issam A.R. Al-Chalabi, the former Iraqi oil ...

Running Hot And Cold

It's March. Let's hope the month goes out like a lamb, because the winter has been too hot and too ...

Exceptional Deepwater Gulf Results In 2006; Longer Drill Times

Last year, explorers hit it big in the deepwater Gulf of Mexico. Early estimates are that some 1.5 billion barrels ...

HEADLINES
Exco Resources Closes North Louisiana Acquisition From Anadarko

Exco Resources Inc., Dallas, (NYSE: XCO) has closed the acquisition of producing properties, acreage and other assets in the Vernon ...

EV Energy Acquires Monroe Field Assets From EnerVest

EV Energy Partners LP, Houston, (Nasdaq: EVEP) has closed its acquisition of properties in the Monroe Field of northern Louisiana ...

Apache Acquires Texas Assets From Anadarko

Apache Corp., Houston, (NYSE, Nasdaq: APA) has closed its acquisition of a controlling interest in assets in the Permian Basin ...

U.S. Steel To Acquire Lone Star For $2.1 Billion

United States Steel Corp. (U.S. Steel), Pittsburgh, (NYSE: X) plans to acquire Lone Star Technologies Inc., Dallas, (NYSE: LSS) for ...

Warren Resources To Acquire Assets In Wyoming, New Mexico and California

Warren Resources Inc., New York, (Nasdaq: WRES) plans to acquire oil and gas properties and related assets of five drilling ...

Watt Resigns As CEO And Chairman Of Maverick

James A. Watt has resigned as chief executive and chairman of Maverick Oil and Gas Inc., Dallas (OTCBB: MVOG). Stephen Cohen ...

Rider To Acquire Assets In Alberta

Rider Resources Ltd., Calgary, (Toronto: RRZ) plans to acquire certain interests in west-central Alberta from an undisclosed seller for C$208 ...

Enerplus To Acquire Majority Interest In Oil-Sands Partnership

Enerplus Resources Fund, Calgary, (NYSE: ERF; Toronto: ERF-UN) plans to acquire a 90% interest in the privately held Kirby Oil ...

Venoco To Acquire Assets In Texas And California

Venoco Inc., Denver, (NYSE: VQ) plans to acquire assets in California and Texas in two deals from undisclosed sellers for ...

GE Closes Acquisition Of VetcoGray

General Electric Co., Fairfield, Conn., (NYSE: GE) has closed its acquisition of Houston-based VetcoGray from Candover Investments Plc, Huddersfield, U.K., ...

Goodrich Closes South Louisiana Asset Sale

Goodrich Petroleum Corp., Houston, (NYSE: GDP) has closed the sale of substantially all of its South Louisiana assets to an ...

Legacy Reserves To Acquire Oklahoma Assets From Nielson & Associates

Legacy Reserves LP, Midland, Texas, (Nasdaq: LGCY) plans to acquire certain producing properties in Oklahoma from Nielson & Associates Inc., ...

Berry Petroleum To Sell Noncore California Assets

Berry Petroleum Co., Bakersfield, Calif., (NYSE: BRY) plans to sell its noncore West Montalvo assets near Ventura, Calif., to an ...

Hercules Plans To Acquire Todco For $2.3 Billion

Hercules Offshore Inc., Houston, (Nasdaq: HERO) plans to acquire Todco, Houston, (NYSE: THE) for approximately $2.3 billion, with Todco shareholders ...

Basic Energy Services To Acquire Sledge Drilling

Basic Energy Services Inc., Midland, Texas, (NYSE: BAS) plans to acquire Midland-based Sledge Drilling Holding Corp. for approximately $51 million, ...

RAK To Acquire 50% Of Indago

UAE.-based RAK Petroleum (Ras Al-Khaimah Petroleum Public Co. Ltd.) plans to acquire 50% of the exploration assets of Indago Petroleum ...

True Rejects Lawrence Reorganization Proposal

True Energy Trust, Calgary, (Toronto: TUI-UN) reports it has received an unsolicited reorganization proposal from privately owned hedge fund Lawrence ...

Loeb, Radoff To Join Pogo Board

Daniel S. Loeb and Bradley L. Radoff of Third Point LLC will join the Pogo Producing Co., Houston, (NYSE: PPP) ...

Energy Partners No Longer For Sale

Energy Partners Ltd., New Orleans, (NYSE: EPL) has concluded its strategic alternatives process without any definitive offers to buy the ...

Halliburton To Move Global HQ To Dubai

Halliburton Co., Houston, (NYSE: HAL) plans to movie its corporate headquarters from Houston to Dubai, U.A.E. Halliburton chairman, president and chief ...

Anadarko To Sell Portion Of Its K2 Unit Interest

Anadarko Petroleum Corp., Houston, (NYSE: APC) plans to sell a portion of its interest in the K2 unit in the ...

Constellation To Acquire Cherokee Basin Assets From EnergyQuest

Constellation Energy Partners LLC, Baltimore, (NYSE: CEP) plans to acquire certain coalbed-methane properties from EnergyQuest Resources LP, a portfolio company ...

Encore Closes Acquisition Of Big Horn Basin Assets From Anadarko

Encore Acquisition Co., Fort Worth, Texas, (NYSE: EAC) has closed the acquisition of oil and gas properties in the Big ...

Callon Petroleum To Buy Out BP's Interest In Entrada Field

Callon Petroleum Co., Natchez, Miss., (NYSE: CPE) plans to acquire an 80% working interest in the Entrada Field in the ...

CCS Income Expands U.S. Presence With New Companies

CCS Income Trust, Calgary, (Toronto: CCR.UN) has closed the acquisition of Kilgore, Texas-based Mobley Oilfield Services and plans to acquire ...

EV Energy To Acquire Louisiana Assets From EnerVest

EV Energy Partners LP, Houston, (Nasdaq: EVEP) plans to acquire properties in Monroe Field of northern Louisiana from an institutional ...

Basic Energy Closes JetStar Acquisition

Basic Energy Services Inc., Midland, Texas, (NYSE: BAS) has closed its acquisition of Texas-based JetStar Consolidated Holdings Inc. for approximately ...

Omni Closes Holston, Cypress Deals

Omni Energy Services Corp., Carenco, La., (Nasdaq: OMNI) has closed its acquisition of privately owned Charles Holston Inc., Jennings, La., ...

Progress Energy To Acquire Majority Of BG's Canadian Production

Progress Energy Ltd., Calgary, (Toronto: PGE) plans to acquire certain Canadian assets from BG Group, Reading, U.K., (London: BG) for ...

Dune Energy Cancels Voyager Acquisition

Dune Energy Inc., Houston, (Amex: DNE) has canceled its plans to acquire the remaining 1,600 acres in assets in North ...

Maverick Oil To Sell Barnett Shale Interests

Maverick Oil and Gas Inc., Dallas, (OTCBB: MVOG) plans to sell its interest in Texas Barnett Shale properties to an ...

Queensland Rejects TCW Bid, Accepts Revised AGL Offer

Queensland Gas Co. Ltd., Brisbane, Australia, (Australia: QGC) has rejected the bid by Los Angeles-based TCW Group, an asset management ...

TCW Group Launches Competing Bid For Queensland Gas

Los Angeles-based TCW Group, an asset management unit of Paris-based investment and banking firm Société Générale, has made a bid ...

COMPANIES IN THIS ISSUE
Companies in this Issue

A G Edwards69 AJM Petroleum Consultants11 Albrecht & Associates Inc.46 Albrecht & Associates Inc.28 Alliance OGO ...



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