Finance/Companies news briefs, Sept. 7
EDG � PetroQuest Energy � Vintage Petroleum � Perez Companc � Global Industries � Oceaneering International � Wood Group � Mustang Engineering � TC PipeLines � Tuscarora Gas Transmission � TransCanada PipeLines � Royal Dutch/Shell � Ripplewood Holdings ... PrimeWest Energy Trust ... National-Oilwell ... Halliburton ... Magin Energy ... Place Resources ... Starwood Hotels and Resorts ... Enron
EDG Inc., Lafayette, La., has completed a detailed design, drafting, and construction management contract for a platform owned by Lafayette-based PetroQuest Energy Inc. EDG added 6,500 sq ft of deck, 14 ft of additional jacket, and eight new rises to accommodate six well slots plus tie-back wells to the platform. The expansion is part of a $20 million project to recycle a 1,200-ton deck and 300-ft water depth jacket. A complete oil train, water treating, and revised gas dehydration system and natural gas compressor were added. The jacket has been added to the platform, which is being installed on Vermilion Block 376 off Louisiana in 300 ft of water. An block contains an estimated 4.6 million bbl of recoverable oil.
Vintage Petroleum Inc. has closed the $39.6 million purchase of Perez Companc's interest in two concessions in the Cuyo basin, covering approximately 104,000 acres in the Mendoza province of Argentina. The properties acquired have net production of 2,000 b/d of 32� gravity, sweet crude oil and are similar in production and operating characteristics to the company's existing operations in the San Jorge basin of Argentina. Exploitation activities aimed at increasing production are targeted to begin in the second quarter of 2001.
Global Industries Ltd. and Oceaneering International Inc. have signed a letter of intent to exchange certain of their assets and share facilities in Asia and Australia. In the proposed transaction, Global would transfer its remotely operated vehicles and related equipment in Asia and Australia, as well as its Triton XL-11 ROV and related equipment in the Gulf of Mexico, to Oceaneering in exchange for Oceaneering's diving assets and related equipment in Asia, Australia, China, and the Middle East, including the dive support vessel Ocean Winsertor. The transaction is expected to close by the end of the month, subject to customary conditions.
Wood Group has completed the purchase of 80% of Mustang Engineering Inc. of Houston, following approval from US regulatory authorities and final approval from Wood Group shareholders (OGJ Online, Aug. 4, 2000).
TC PipeLines LP has completed its previously announced $28 million acquisition of a 49% interest in Tuscarora Gas Transmission Co. from a subsidiary of TransCanada PipeLines Ltd. (OGJ Online, July 25, 2000).
Royal Dutch/Shell Group agreed in principle to sell its global Kraton polymers business, which manufactures and markets thermoplastic elastomers, to Ripplewood Holdings LLC, New York. Terms were not disclosed. The proposal is subject to various approvals. Shell said this is the last sale in an extensive divestment program to focus on businesses closer to base and intermediate chemical building blocks.
Calgary's PrimeWest Energy Trust has entered into an agreement to sell to a syndicate of underwriters led by CIBC World Markets Inc. 4.2 million trust units at $8.35 (Can.)/unit to raise gross proceeds of $35 million on a bought-deal basis. PrimeWest has granted the underwriters an option, exercisable in whole or in part prior to closing, to purchase up to an additional 630,000 units at the same price. The issue will be offered throughout Canada. Closing is expected to take place Sept. 28, 2000. Net proceeds from the issue will be used for general corporate purposes, including capital expenditures and future acquisitions, and in the interim, to repay outstanding debt.
National-Oilwell Inc., Houston, has acquired the Wheatley Gaso and Omega pump product lines from Halliburton Co. for about $13 million cash. Wheatley Gaso manufactures and markets a complete line of piston and plunger pumps and has a manufacturing facility in Tulsa. Omega manufactures, markets, and services pumps used primarily on well service trucks. In 1999, the acquired business had revenues of almost $20 million.
Magin Energy Inc., Calgary, says its offer to purchase all of the issued and outstanding common shares of Place Resources Corp. has expired, and Magin will not be acquiring any Place shares under the offer (OGJ Online, Aug. 25, 2000). About 49.5 % of the issued and outstanding Place shares were deposited under the offer. The offer, however, was subject to a condition that at least 66 2/3% of Place common shares, on a fully diluted basis, be tendered and not withdrawn. Because this minimum condition was not satisfied, Magin will not be acquiring any Place shares. Place shares deposited under the offer will be returned, says Magin.
Starwood Hotels and Resorts Worldwide Inc., White Plains, NY, has let contract to Enron Energy Services for management of energy for its upscale hotels in a 10-year deal worth more than $1 billion. Enron Energy Services, a subsidiary of Houston-based Enron Corp., will supply and manage energy for Starwood's properties in North America, including Westin, Sheraton, St. Regis, Luxury Collection, Four Points, and W hotels. Starwood estimates the deal will save it $200 million in energy costs over the life of the contract. The firm is the first hotel chain to outsource energy management, according to Lou Pai, Enron Energy Services' chairman and CEO.