Toreador Resources Corp., Dallas, agreed to buy Pogo Hungary Ltd. for $9 million in a transaction that will mark Toreador’s entry into Hungary. Pogo Hungary is a subsidiary of Pogo Producing Co., Dallas.
In other recent company news:
- Another of China’s largest oil concerns acquired an equity interest in a Canadian company that plans a production project in the Alberta oil sands.
- Range Resources Corp., Fort Worth, agreed to acquire oil and gas properties in the Permian basin for $116.5 million through its purchase of privately held Plantation Holdings II LLC.
- Gaz de France has acquired 51% of Romanian natural gas distribution company Distrigaz Sud, bolstering GDF’s position in central and eastern Europe.
- Saudi Arabia’s Attock Oil Group offered the high bid of $275 million to acquire a 51% share interest and ownership of Pakistan’s National Refinery Ltd. (NRL), which operates a 62,000 b/cd refinery in Karachi.
Toreador-Pogo Hungary
Toreador’s purchase is expected by June 30. After closing, the company’s name will be changed to Toreador Hungary Ltd., and it will hold exploration permits covering 764,300 acres.
Toreador said the acquisition includes casing, tubulars, and other oil field equipment, a partially delineated natural gas field with two wells tests indicating flow of more than 4 MMcfd, and a tax loss carry-forward of more than $20 million.
Sinopec-Northern Lights
Sinopec Group paid $105 million for a 40% interest in Synenco Energy Inc.’s proposed $4.5 billion Northern Lights mining and upgrading project (OGJ, Apr. 25, 2005, p. 20). Northern Lights, with a project site northeast of Fort McMurray, is to produce its first hydrocarbons in 2010-11.
Meanwhile, CNOOC Ltd. paid $122 million for a 16.69% share of private MEG Energy Corp. MEG plans a 3,000 b/d steam-assisted gravity drainage pilot and a 22,000 b/d commercial SAGD project at Christina Lake (OGJ Online, Apr. 13, 2005). MEG is still raising capital and has yet to start construction.
Range-Permian
Range’s acquisition is expected to replace about 90% of its 2005 production.
Range estimates the properties’ proved reserves at 77 bcfe, of which 82% is natural gas, 62% proved developed.
The properties’ 58 wells produce 7 MMcfed (net) from multiple formations at 2,500-8,500 ft.
Range has identified 58 proved recompletion and drilling prospects and several unproved prospects. It will begin a drilling and recompletion program aimed at doubling production by yearend 2006.
Range will own a 100% interest and operate the properties upon completion of the transaction, scheduled for June 30.
GDF-Distrigaz Sud
Last year, GDF paid 150 million euros for a 30% stake in Distrigaz Sud, which operates a 13,400 km distribution network serving 900,000 customers in Bucharest (OGJ, Nov. 15, 2004, p. 39).
In the final phase of the previously announced two-phase transaction, GDF paid a further 180 million euros to increase its stake in Distrigaz Sud to 51%. Romania retained the remaining 49%.
Attock Oil-NRL
Attock’s offer for NRL, amounting to about $8/share for a company whose stock recently has traded at $5.75/share, was declared successful by Pakistan Privatization and Investment Minister Abdul Hafeez Sheikh.
NRL’s complex includes the refinery and an aromatics plant.