PG&E TO BUY TEX/CON E&P OPERATIONS

PG&E Resources Co., Dallas, has agreed to purchase Tex/Con Oil & Gas Co., Houston, from parent BP Exploration Inc. for about $400 million. PG&E Resources is a unit of PG&E Enterprises, holding company for Pacific Gas & Electric Co., the biggest U.S. investor owned energy utility. Transok, the Tulsa unit of Central & South West Corp., last month completed purchase of Tex/Con's gas transmission and marketing business for $250 million (OGJ, Oct. 7, p. 44). Remaining assets, covered by the

Oct. 21, 1991

PG&E Resources Co., Dallas, has agreed to purchase Tex/Con Oil & Gas Co., Houston, from parent BP Exploration Inc. for about $400 million.

PG&E Resources is a unit of PG&E Enterprises, holding company for Pacific Gas & Electric Co., the biggest U.S. investor owned energy utility.

Transok, the Tulsa unit of Central & South West Corp., last month completed purchase of Tex/Con's gas transmission and marketing business for $250 million (OGJ, Oct. 7, p. 44). Remaining assets, covered by the proposed sale to PG&E, involve Tex/Con's oil and gas exploration and production interests.

WHAT'S INVOLVED

The purchase agreement covers all the capital stock of Tex/Con and is to be effective Oct. 1, 1991. Closing is expected next month.

Tex/Con proved and probable reserves total 30.4 million bbl of oil and 317.9 bcf of gas. Production in 1990 totaled 3.6 million bbl of oil and 44.7 bcf of gas. Total land holdings entail 316,545 gross developed acres and 323,136 gross undeveloped acres, or about 185,000 net undeveloped acres. In addition, Tex/Con has an onshore U.S. seismic database of about 76,000 line miles.