Finance/Companies news briefs, Sept. 4

Teton Petroleum � VISTA Midstream Solutions � TransCanada PipeLines � Devon Energy � Santa Fe Snyder � Sonatrach � Sonelgaz � Nalco/Exxon Energy Chemicals LP � International Specialty Chemicals � Gulfstream Resources Canada � BP � ENI � Agip E&P Division � FMC Kongsberg International � Beta Oil & Gas � Red River Energy � Louis Dreyfus Natural Gas � Magnum Hunter Resources � Coflexip Stena Offshore � Cal Dive International � Pertacal Energy � Gazprom � Stewart & Stevenson � and more

US oil company Teton Petroleum Co. has reached an agreement with a European investor group to provide financing to complete its western Siberia pipeline and accelerate its drilling program. The investor group has agreed to provide up to $6.6 million in financing to complete a 40 km pipeline and drill an additional five wells. The pipeline will increase production from the company's Eguryakskaya license, which is producing 1,250 b/d of oil in summer, shipped by barge, and 500 b/d in the winter, shipped by truck.

Vista Midstream Solutions Ltd., Calgary, announced Aug. 29 that it has acquired natural gas gathering and processing assets from wholly-owned subsidiary corporations of TransCanada PipeLines Ltd. Vista has assumed operatorship of the acquired facilities. The assets include a 98% working interest in the Cutbank Gas Plant and 100% working interest in the Musreau Gas Plant. These gas plants represent 170 MMcfd of raw processing capacity with over 165 km of associated gas gathering pipelines. The facilities are located in west-central Alberta, about 80 km south of Grande Prairie.

Devon Energy Corp. and Santa Fe Snyder Corp. completed their merger Aug. 29. The merger was announced in May (OGJ Online, May 26, 2000). Shareholders of both companies overwhelmingly approved the merger at special meetings of shareholders Aug. 29. Devon Energy Corp. said it now ranks among the top five US-based independent oil and gas producers in terms of market capitalization, total proved reserves, and annual production.

Algerian state-owned oil and gas company Sonatrach is seeking to invest in acquisitions in electricity and gas markets abroad, according to its general manager, Abdelhak Bouhafs. He said Sonatrach and national electricity and gas company Sonelgaz, the two of which recently set up a joint company to market electricity abroad, are in advanced discussions to invest outside the country.

Nalco/Exxon Energy Chemicals LP has formed a gas hydrate control solution alliance with International Specialty Chemicals (ISP). ISP will produce the gas hydrate inhibitor products at its manufacturing plants in Texas City, Tex., and Calvert City, Ky., Nalco/Exxon will market the products to oil and gas producers around the world.

Gulfstream Resources Canada Ltd., Calgary, has exercised its right of first refusal to acquire an additional 15% participation interest in the Al Rayyan exploration and production sharing agreement in Qatar, issued in 1976. The transaction will increase Gulfstream's participation interest to 42.5%. It is expected to close in the near future pending certain conditions, including ratification by the government of Qatar. The consideration for the acquisition is principally based on future net profit payments contingent on a gas development from North field. Al Rayyan's new operator, BP, is expected to announce updated field development plans for the field in October, said Gulfstream.

ENI SPA and its Agip Exploration & Production division have signed a 5-year global partnering agreement with FMC Kongsberg International AG for subsea production systems. The scope of supply for the partnering agreement covers subsea trees, subsea controls, manifold, intervention systems, umbilicals and all other related subsea technologies.

Beta Oil & Gas Inc. announced Aug. 31 the closing of its merger with Red River Energy LLC, effective Sept. 1. The combined companies' assets will be worth more than $50 million, representing an approximate 112% increase in Beta's assets, said Beta. Furthermore, the combined companies' daily production will be about 10 MMcfed, a 186% increase over Beta's previous production level.

Louis Dreyfus Natural Gas Corp. has closed a $15.75 million purchase of natural gas reserves associated with 107 producing wells in the Sonora area of West Texas from Magnum Hunter Resources Inc. The sale had a July 1 effective date.

Coflexip Stena Offshore said it is planning to sell up to 100% of its interest in Cal Dive International Inc. Coflexip intends to offer up to 3,699,788 shares of Cal Dive's common stock. It issued a prospectus supplement Aug. 31.

Pertacal Energy Inc., Calgary, said Aug. 31 it has entered into a memorandum of understanding with an unnamed private proprietorship for an arm's-length farmout of a 10% interest in the Larcis Antin Block in southern France in consideration of $66,000. Pertacal holds a 66.67% interest in the block; after the proposed disposition it will retain a 60% interest. The memorandum also provides for Pertacal to farm out a 10% interest in exploration license EXL 295, located in the Storrington field in southern England, for $240,000. Pertacal holds a 75% interest in the block; after the proposed disposition it will retain 67.5%. The purchaser also agreed to subscribe to a $150,000 private placement of Pertacal's shares.

Stewart & Stevenson Services Inc., Houston, said Thursday that its petroleum equipment division has received confirmation of financing for a $23.6 million order from Russia's Gazprom. An unnamed third party, a customer of Stewart & Stevenson, is buying the equipment, which it will then transfer to Gazprom. Gazprom will then pay that third party. Financing for the deal is being done through a undisclosed bank in Hungary. Scheduled to be completed by the end of January 2001, the sale includes pumpers, blenders, and associated stimulation equipment; coiled tubing units for drilling and workovers; and oil tool products. Stewart & Stevenson expects to complete all shipments by the end of its fiscal year.

Global Risk Exchange, Providence, RI, said Bermuda-based Oil Investment Corp. Ltd. and Oil Casualty Investment Corp. Ltd. recently made a "major" strategic investment in Global Risk's online exchange platform for large companies to find commercial, property, and other types of insurance.

More in Companies