By OGJ editors
HOUSTON, Feb. 16 -- BG Group agreed to acquire El Paso Oil and Gas Canada Inc. for $345.6 million from El Paso Corp., Houston.
El Paso Canada holds 690,000 net acres, of which 630,000 is undeveloped oil and gas acreage. The properties are in four core areas in the Western Canadian Sedimentary Basin, mostly in Alberta and northeastern British Columbia.
British Gas US Holdings LLC Pres. Martin Houston said the acquisition provides "a strong platform on which to develop a Canadian exploration and production business." Subject to regulators' approval, the transaction is expected to close in the first quarter.
The acquisition also includes gross working interest production of 80 Mmscfde, as of Dec. 31, 2003. A third party evaluator has said the properties contain 132 bcfe of proved reserves, of which 84% is natural gas.
