Canadian trusts to buy Dominion's Canadian E&P assets

Paramount Energy Trust and Baytex Energy Trust plan to buy Dominion's Resources Inc.'s Canadian exploration and production assets for a total $583 million.

May 30th, 2007

By OGJ editors
HOUSTON, May 30 -- Paramount Energy Trust and Baytex Energy Trust plan to buy Dominion's Resources Inc.'s Canadian exploration and production assets for a total $583 million.

The sales are expected to close by June 30. The operations include 267 bcf of gas equivalent of proved reserves in western Canada as of Dec. 31, 2006. The 2006 average production was 60 MMcfd of gas equivalent, Dominion said.

Paramount Energy and Baytex Energy are both based in Calgary.

Paramount said it was paying $392 million for the Dominion operations that Paramount called a fit with its existing shallow-gas operations in east-central Alberta.

Dominion, an electric and gas utility based in Richmond, Va., last year announced plans to divest all its E&P operations except those in the Appalachian basin (OGJ Online, Nov. 1, 2006).

Eni Petroleum Co. Inc. agreed to buy Dominion's oil and gas interests in the Gulf of Mexico for $4.8 billion (OGJ Online, Apr. 30, 2007).

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