Finance/Companies news briefs, May 5
American International Petroleum Corp. ... Itera International Energy LLC ... MCN Energy Group ... Delta Power Co. LLC ... DTE Energy Co.
American International Petroleum Corp., New York, said it signed a letter of intent to sell a working interest in its Kazakhstan Production License 1551 to Itera International Energy LLC, Amersterdam. The license area, in which AIPC holds 100%, includes the Shagryl-Shomyshty gas field. That field has proved reserves of 604 bcf and proved and probable reserves of 963 bcf, AIPC said. Commercial terms of the preliminary agreement have not been finalized. AIPC said it intends to continue as operator of the license, while Itera should provide marketing assistance and financial support.
MCN Energy Group Inc. agreed to sell its 95% interest in the 140 Mw Cobis-Person peaking power project near Albuquerque, NM, to a group led by Delta Power Co. LLC for an undisclosed amount. MCN said the sale will help fulfill regulatory conditions for its pending merger with DTE Energy Co. The power plant should begin commercial operation this summer. The sale has already received approval from the Federal Energy Regulatory Commission but remains subject to antitrust review and other conditions; MCN expects the sale to be completed by the end of May.
Stockholders of El Paso Energy Corp. and Coastal Corp. on Friday approved the companies' $16 billion merger. Announced Jan. 18, the merger includes about $6 billion in assumed debt and preferred equity. The combined company will have 58,000 miles of pipeline in North America and ownership of 8,000 Mw of net power generation capacity. The deal is set to close in fourth quarter 2000, pending approval by the Federal Trade Commission and the Federal Energy Regulatory Commission.