Forest Oil Corp., Denver, (NYSE: FST) has entered agreements with privately held, Houston-based Chalker Energy Partners and five other undisclosed entities to acquire producing assets primarily in the Cotton Valley play in East Texas for $255 million in cash. The acquisition includes approximately 26,000 net acres with estimated proved reserves of 110 billion cu. ft. of gas equivalent (43% proved developed; 90% gas) and production of some 13 million equivalent per day. Forest expects the transaction will add another low-risk, repeatable onshore development play to its portfolio; a four-rig program for 2007; and increased drilling activity in 2006 by 20 wells. The acquisitions were expected to close by the end of March. Forest plans to fund the deals with its credit facility and cash on hand. Griffis & Associates LLC and Simmons & Co. International were marketers for Chalker. • Western Gas Resources Inc., Denver, (NYSE: WGR) plans to acquire coalbed-methane properties and related gathering assets in the Big George fairway of the Powder River Basin of Wyoming from an undisclosed seller for approximately $136.7 million. The purchase includes drilling rights on approximately 40,000 gross acres and 110 drilled wells, of which approximately 70 are currently dewatering and the remaining 40 wells are awaiting hookup. Net risked probable and possible reserves are estimated to be 109 billion cu. ft. Gas production is expected to begin in the third quarter of 2006. • XTO Energy Inc., Fort Worth, Texas, (NYSE: XTO) has closed the acquisition of producing properties in East Texas and Mississippi from Total E&P USA Inc. (NYSE: TOT) for $300 million. The properties are estimated to have proved reserves of some 120 billion cu. ft. of gas equivalent (60% proved developed; 95% gas) and produce about 15 million cu. ft. of gas per day. Approximately 75% of the acquired reserves are in the Sabine Uplift region of East Texas, expanding XTO's presence in Carthage Field and establishing a new position in Bethany Field. The remaining reserves are in Maben Field, Mississippi. • Berry Petroleum Co., Bakersfield, Calif., (NYSE: BRY) has closed the acquisition of a 50% working interest in gas assets in the Piceance Basin of western Colorado from a private seller for approximately $159 million in cash. Berry estimates it has gained 26 billion cu. ft. of proved and 304 billion cu. ft. of probable reserves. Current net production of 1 million cu. ft. of gas per day is from three producing wells. Berry has identified more than 600 drilling locations and it will be the operator of the properties with a 50% working interest in 6,314 gross acres. Berry funded the purchase from its existing credit facility. • Privately held, Gillette, Wyo.-based Kennedy Oil plans to sell its assets in Johnson, Sweetwater and Converse counties, Wyoming, in three separate transactions to undisclosed buyers. The Johnson County assets in the Powder River Basin include approximately 40,000 net acres, 110 wells and a 12-mile pipeline; the Sweetwater County assets in the Green River Basin include approximately 29,500 net acres and 20 wells; and the Converse County assets in the Powder River Basin include about 9,000 net acres and 32 wells. Following completion of the transactions, Kennedy will retain producing properties in Campbell County, where it operates 530 coalbed-methane wells and 60 oil wells with current gross production of approximately 9.5 cu. ft. of gas equivalent per day and 18,000 acres in Sheridan County, which it plans to develop for CBM. Credit Suisse is advisor to Kennedy. • Chevron Corp., San Ramon, Calif., (NYSE: CVX) has acquired five heavy-oil leases in the Athabasca oil-sands region of northern Alberta. The leases comprise more than 180,000 acres and hold an estimated 7.5 billion bbl. of oil in place. "...This opportunity expands our efforts to develop high-quality, large-scale resources to enhance our production growth profile," says George Kirkland, executive vice president, upstream and gas. The new leases are about 76 miles west of Fort Mackay in northern Alberta and 24 miles southwest of the Athabasca Oil Sands Project (AOSP). Two other companies will each have the right to elect to acquire a 20% working interest in these leases. Chevron is already in the Canadian oil sands. The company is a 20% joint-venture participant in the AOSP, which includes the Muskeg River Mine and the Scotford Upgrader. AOSP produces about 155,000 bbl. per day. Since 2003, AOSP has produced more than 100 million bbl. of bitumen.