FirstEnergy to sell half interest in Great Lakes Energy Partners to Range Resources

By OGJ editors

HOUSTON, June 7 -- FirstEnergy Corp., Akron, Ohio, has agreed to sell its 50% interest in Hartville, Ohio-based Great Lakes Energy Partners LLC to Great Lakes' other 50% co-owner Range Resources Corp., Fort Worth.

The agreement calls for FirstEnergy to sell its interest for $200 million in cash and the cancellation of $22 million of oil and gas commodity hedges. FirstEnergy also has retained the right to participate with as much as 40% interest in future wells in Ohio drilled below the Clinton-Medina formation.

The transaction is expected to close by the end of June, assuming Range secures financing by June 21.

Great Lakes has proved reserves of 500 bcfe of natural gas and oil—about 90% of it gas—and 5,000 miles of pipelines, as well as drilling rights to more than one million acres in seven eastern states.