By OGJ editors
HOUSTON, June 14 -- PEC Minerals LP agreed to pay $225 million for Sempra Energy Production Co. (SEPCO), the exploration and production subsidiary of Sempra Generation, a unit of Sempra Energy. The transaction is expected to close in July.
SEPCO, Dallas, owns mineral rights to over 570,000 net acres and executive rights to more than 190,000 net acres in 31 states. In addition to holding interests in third-party natural gas and oil wells, the company also owns 6,000 surface acres in five states.
Cash from the sale will help fund Sempra Energy's other capital projects, such as LNG receiving terminals, new interstate natural gas transmission pipelines, and gas storage.
Sempra Energy expects an after-tax gain of $110 million on the sale as part of discontinued operations.
PEC Minerals is owned by a group including Jetta Operating Co., Trevor Rees-Jones, and Providence Energy Corp.