Transok Inc., Tulsa, has agreed in principle to acquire the gas transmission and marketing assets of Tex/Con Inc. from parent BP Exploration.
In addition, BP has received a number of offers for Tex/Con's exploration and production assets and says it plans to announce the successful bidder "in due course."
Terms of the tentative deal aren't disclosed.
Tex/Con, Houston, as a wholly owned subsidiary holds BP's U.S. Lower 48 exploration/production and natural gas transmission/marketing assets.
BP invited bids for Tex/Con from a limited number of companies earlier this year as part of a review of assets that determined properties no longer considered core to its business.
At the time, it said it would consider selling Tex/Con assets wholly to a single buyer or separately to different buyers.
WHAT'S INVOLVED
Tex/Con's gas transmission/marketing business involves three gas gathering systems: the wholly owned Anadarko and North Louisiana systems and Waggs, a 50-50 joint venture with Dyco Petroleum Corp., Tulsa.
The systems represent a total of more than 1,400 miles of pipeline. Their combined gross throughput last year was 678 MMBTU/day.
Tex/Con also owns and operates two gas processing plants and has a one third interest in a third, all in Oklahoma.
It markets its own and third party gas, with marketed volumes last year averaging about 400 MMBTU/day.
Tex/Con's E&P business operates about 750 producing wells mainly in Texas, Oklahoma, and Louisiana. Production in 1990 was 9,863 b/d of oil and 335 MMcfd of gas. Proved reserves currently are estimated at 25 million bbl of oil and 273.4 bcf of gas.
Tex/Con holds 316,545 gross developed acres and 323,136 gross undeveloped acres.
In 1990, Tex/Con returned an operating profit of $234 million, had capital outlays of $70 million, and hiked Lower 48 onshore reserves by 140% to 30 million bbl of oil and 250 bcf of gas.
Transok, a unit of Central & South West Corp., Dallas, is an intrastate natural gas gathering and transmission company with 2,225 miles of pipeline.
Transok owns five gas processing plants with a combined capacity of 252 MMcfd.
All the pipeline and gas processing assets are in Oklahoma.
In addition to those businesses, Transok markets gas throughout the U.S.
Transok Inc., Tulsa, has agreed in principle to acquire the gas transmission and marketing assets of Tex/Con Inc. from parent BP Exploration.
In addition, BP has received a number of offers for Tex/Con's exploration and production assets and says it plans to announce the successful bidder "in due course."
Terms of the tentative deal aren't disclosed.
Tex/Con, Houston, as a wholly owned subsidiary holds BP's U.S. Lower 48 exploration/production and natural gas transmission/marketing assets.
BP invited bids for Tex/Con from a limited number of companies earlier this year as part of a review of assets that determined properties no longer considered core to its business.
At the time, it said it would consider selling Tex/Con assets wholly to a single buyer or separately to different buyers.
WHAT'S INVOLVED
Tex/Con's gas transmission/marketing business involves three gas gathering systems: the wholly owned Anadarko and North Louisiana systems and Waggs, a 50-50 joint venture with Dyco Petroleum Corp., Tulsa.
The systems represent a total of more than 1,400 miles of pipeline. Their combined gross throughput last year was 678 MMBTU/day.
Tex/Con also owns and operates two gas processing plants and has a one third interest in a third, all in Oklahoma.
It markets its own and third party gas, with marketed volumes last year averaging about 400 MMBTU/day.
Tex/Con's E&P business operates about 750 producing wells mainly in Texas, Oklahoma, and Louisiana. Production in 1990 was 9,863 b/d of oil and 335 MMcfd of gas. Proved reserves currently are estimated at 25 million bbl of oil and 273.4 bcf of gas.
Tex/Con holds 316,545 gross developed acres and 323,136 gross undeveloped acres.
In 1990, Tex/Con returned an operating profit of $234 million, had capital outlays of $70 million, and hiked Lower 48 onshore reserves by 140% to 30 million bbl of oil and 250 bcf of gas.
Transok, a unit of Central & South West Corp., Dallas, is an intrastate natural gas gathering and transmission company with 2,225 miles of pipeline.
Transok owns five gas processing plants with a combined capacity of 252 MMcfd.
All the pipeline and gas processing assets are in Oklahoma.
In addition to those businesses, Transok markets gas throughout the U.S.
Copyright 1991 Oil & Gas Journal. All Rights Reserved.
