• Securities analyst Stuart Wagner has joined LNG facility developer Cheniere Energy Inc., Houston, (Amex: LNG) as senior vice president, corporate development. He was a founding partner of energy investment-banking firm Petrie Parkman & Co., which was acquired by Merrill Lynch & Co. last year, and in energy research for First Boston. He covered natural gas markets and independent E&P.



• MLP Strategy Income Fund Inc. has filed an N-2 for an IPO on the NYSE as MTP at an expected price of $20 per share. The closed-end investment fund has been formed by IQ Investment Advisors LLC, an indirect subsidiary of Merrill Lynch & Co. Inc. The fund will have a diversified index-based approach to investing in MLPs, including midstream oil and gas, coal, propane, E&P and marine transportation.



• Jack Hightower of Fort Worth- and Midland-based independent Celero Energy LP says he "refuses to pay" current oil and gas asset prices and is biding his time. Hightower spoke at the 13th annual Executive Oil Conference in Midland recently. He has 37 years in the business, and sold privately held Celero I to Whiting Petroleum Corp. for $804 million in 2005. He received a commitment of $1 billion in private equity to restart the firm in 2006.



• Privately held Samson Investment Co., Tulsa, Okla., has revised its unsolicited offer for PYR Energy Corp., Denver, (Amex: PYR) to $1.30 per share in a deal valued at $49.4 million. PYR board members have accepted the offer. The first bid was for $1.21 per share for a total of approximately $46 million.

PYR has interests in 89 wells on 37,275 acres in the Rockies, Texas, Gulf Coast regions and in Canada. As of Aug. 31, proved reserves were 518,788 bbl. of oil and gas liquids and 2.8 million BOE of gas. C.K. Cooper & Co. Inc. is financial advisor to PYR.



• Ventura, Calif.-based private-equity provider BSI Energy Partners LLC has raised its first fund, totaling $50 million, to invest in oil and gas producers in amounts of $1- to $10 million. The firm also offers joint-venture partnership, direct investment in working interest, ORRI and NRI, and debt with equity participation.



• John W. Donovan Jr. has formed Donovan Capital, Houston, to provide energy investment capital and capital-markets advisory services. He was previously a vice president with energy private-equity provider Quantum Energy Partners, and a financial analyst in the investment-banking group at Credit Suisse First Boston.

• Texas Energy Holdings International, a subsidiary of energy investment firm Texas Energy Holdings Inc. that focuses on oil and gas field development, has expanded to Japan, retaining Japan-based venture-capital firm iOCS Corp. to manage the operations.



• Standard Bank Plc has named Rod Fraser managing director and global head of energy finance, leading teams in Brazil, Dubai, Johannesburg, Lagos, London, New York, Sydney and Singapore.



• Dahlman Rose has initiated coverage of the floating production, storage and offloading (FPSO) sector, beginning with eight Norwegian companies. Analyst Omar Nokta is leading the coverage. The firm expects "a long-lasting FPSO cycle has just begun and that early investors will see outsized returns."



• J. Giordano Securities Group has added research to its investment-banking and trading functions, and will cover the energy industry, led by Gray Peckham. "We plan to roll out coverage of another 12 to 15 small-cap companies this year, mostly in E&P, but we are not limiting ourselves to oil and gas, as we may cover some service companies and alternative energy companies, such as ethanol or wind power," he says.



• Mineral Wells, Texas-based Tempo Resources Ltd. has been formed by Houston-based Chalker Energy Partners II LP, Adron Temple Jr. and Nelson Oliver with gas assets of Jacksboro, Texas-based Engas Corp. and Chalker, a portfolio company of private-equity provider Quantum Energy Partners, Houston.

Temple is vice president, geoscience and operations; Oliver is vice president, land and business development.

The initial assets are in the shallow Strawn and Conglomerate gas trends of North Texas, and consist of producing and undeveloped leasehold (10,000 acres net; 100% operated) in Palo Pinto, Parker, Archer and Jack counties, Texas. Production is some 1 million cu. ft. per day from 40 wells; net proved reserves are some 5.6 billion cu. ft. equivalent.



• Natural Gas Partners, Irving, Texas, has named Scott A. Gieselman managing director. He was a partner and regional head for the West Coast and Southwest regions division at Goldman Sachs.



• Charles Kingswell-Smith has joined Merrill Lynch Capital as a managing director, and will open the Boston-based business' new Houston office. He was previously with JP Morgan Chase.

• Tudor, Pickering & Co. LLC has added investment bankers Ed Guay, managing director, and Chad Michael, vice president, and an equity-research analyst, Becca Followill, managing director, to its rolls, and expanded coverage to the midstream.

Guay has had an energy MLP advisory practice and was previously with Goldman Sachs, Salomon Smith Barney and Schroders. Michael was with JP Morgan. Followill will be responsible for midstream research, and was in gas and power research at Howard Weil, and gas-distribution research for Merrill Lynch.



• Société Générale's corporate and investment-banking group has brought on Michael S. Haigh as director and senior commodity strategist. Haigh will cover the commodities markets with a primary focus on North American gas.

He was associate chief economist for the U.S. Commodity Futures Trading Commission.



• Larry Derrett, Brian Kerrigan and George McKean have joined CIT Energy, a business of CIT Group Inc., in its new Houston office The unit provides M&A advisory, underwritten senior and subordinated debt, construction and project finance, mezzanine and other capital to energy companies. Derrett was at Mizuho Corporate Bank in charge of developing the bank's presence in oilfield services. Kerrigan was with Capital One Bank in reserve-based lending. McKean was with GE's commercial-lending group covering Houston and Louisiana markets.



• Yorkville Advisors LLC has named Richard Brand managing director. Brand was head of origination and managing director at Prospect Capital Management.



• Upstream finance firm BlackRock Energy Capital Ltd. has changed its name to BlueRock Energy Capital Ltd. The Houston-based energy lender was formed in 2002 and provides $1- to $10 million to independents for development, acquisitions and monetizations through a non-recourse financial production payment via a limited-term overriding royalty.



• American Real Estate Partners LP, New York, (NYSE: ACP) plans to sell its interests in privately held SandRidge Energy Inc., Oklahoma City, to a consortium of investors for $243 million in cash.

The interests consist of approximately 13.5 million shares. The shares are priced is at $18 each in several transactions and will complete AREP's exit from oil and gas interests. Its stake had totaled $1.5 billion. Its profit will total $600 million.

AREP chairman Carl C. Icahn says, "AREP's large cash war chest will enable the company to continue to adhere to its philosophy and core competencies, which is to purchase companies that are in disfavor and manage them in ways to maximize their potential."

SandRidge has assets in the Permian Basin of West Texas and the Piceance Basin of Colorado. Proved developed reserves are 10.3 million bbl. of oil and 256 billion cu. ft. of gas. AREP gained an interest in SandRidge due to the latter's acquisition last year of NEG Holdings, a Dallas-based owner of U.S. oil and gas assets.



• Eagle Rock Energy Partners LP, Houston, (Nasdaq: EROC) plans to acquire certain fee minerals, royalties and working-interest properties throughout the U.S. from Houston-based Montierra Minerals & Production LP, a portfolio company of Irving, Texas-based Natural Gas Partners VII LP and its affiliate NGP-VII Income Co-Investment Opportunities LP, for $127.6 million in cash and stock.

The assets include interests in more than 2,500 wells on approximately 5.6 million gross mineral acres and 420,000 net mineral acres in 17 states. Net production is approximately 6 million cu. ft. of gas equivalent per day. Net proved producing reserves are approximately 4.6 billion cu. ft. of gas and 2.5 million barrels of oil.

Montierra chief executive Joseph A. Mills will be chairman and chief executive of Eagle Rock after closing. Eagle Rock CEO Alex Butcher will be president and chief operating officer.



• Legacy Reserves LP, Midland, (Nasdaq: LGCY) plans to acquire certain producing properties in Texas and New Mexico from two undisclosed private companies for a total of $20.8 million in cash. The assets include 34 operated and 24 nonoperated producing wells in Midland, Upton and Reagan counties of West Texas and Lea and Eddy counties of southeastern New Mexico. Net production is 284 BOE per day.

Proved reserves are approximately 1.44 million BOE (77% proved developed producing).

Separately, Legacy plans to acquire certain producing properties in Oklahoma from Nielson & Associates Inc., Cody, Wyo., for $30 million in cash and 611,247 units valued at $15 million for a total deal value of $45 million. The assets include 50 producing wells and 30 injection wells on 13,000 gross acres in the East Binger (Marchand) Unit in Caddo County. Net production is 734 BOE per day. Proved reserves are approximately 4.1 million BOE.

• Privately held, London-based conglomerate The Valmore Group has acquired 5.5% of Tri-Valley Corp., Bakersfield, Calif., (Amex: TIV) through a recent private placement of 600,000 restricted shares and 200,000 warrants for a total deal valued at $7.1 million. The Valmore Group reports it supports Tri-Valley's stated business plan to aggressively develop its California-based oil-producing properties.



• Itochu Corp., Tokyo, (Tokyo: 8001) has acquired the Gulf of Mexico properties of Range Resources Corp., Fort Worth, Texas, (NYSE: RRC) for US$155 million.

The assets included Range's interests in 37 platforms on the Gulf shelf. Net production as of November 2006 was approximately 14.2 million cu. ft. of gas equivalent per day. Proved reserves are approximately 40 billion cu. ft. equivalent, representing 2% of Range's total proved reserves.

Range president and chief executive John Pinkerton says this and the February sale of Austin Chalk properties have generated $237 million of aggregate proceeds. "In both cases, the properties were not integral to our future growth, so we elected to monetize them." Scotia Waterous marketed the Gulf package.



• Cano Petroleum Inc., Fort Worth, Texas, (Amex: CFW) has acquired properties in the Permian Basin in New Mexico from UHC New Mexico Corp., a subsidiary of United Heritage Corp., Midland, (Nasdaq: UHCP) for $7 million in cash and approximately $1.9 million in restricted stock for a total deal valued at $8.9 million.

The assets include 20,000 acres in Chavez and Roosevelt counties. Production is approximately 75 net BOE per day. Proved reserves are approximately 12 million net BOE (approximately 11 million proved undeveloped) and proved and probable reserves are 23 million BOE.



• Tammany Oil & Gas LLC, Houston, and Houston-based BlueRock Production LLC have acquired an interest in several properties in the High Island area offshore Texas from an undisclosed seller for an undisclosed price. The assets include production of 8 million cu. ft. of gas and 400 bbl. of oil per day. Tammany subsidiary Jefferson Block 24 Oil & Gas LLC will be operator. NGP Capital Resources Co. provided funding to Tammany.



• Warren Resources Inc., New York, (Nasdaq: WRES) plans to acquire oil and gas properties and related assets of five drilling programs in Wyoming, New Mexico and California in separate deals from undisclosed sellers for a total of $37.6 million in stock. Warren is managing general partner. The deals require approval of partners owning 51% of the interests of a drilling program.

The acquisition includes producing wells and 21.3 coalbed-methane wells net to Warren. Proved developed producing reserves are approximately 9.9 billion cu. ft. of gas equivalent.



• Exco Resources Inc., Dallas, (NYSE: XCO) has closed the acquisition of producing properties, acreage and other assets in the Vernon and Ansley fields in Jackson Parish, La., from Anadarko Petroleum Corp., Houston, (NYSE: APC) for $1.5 billion in cash.

The assets include 91.1% average working interest (70.2% average net revenue interest) in proved developed producing gas properties on 66,000 net acres in the Lower Cotton Valley formation, including 15,000 net undeveloped acres. Net production is approximately 190 million cu. ft. of gas per day from approximately 350 producing wells (96% operated). Proved reserves are approximately 466 billion cu. ft. equivalent: 446 billion proved developed producing and 20 billion proved undeveloped. The acquisition also includes gathering systems and infrastructure.



• EV Energy Partners LP, Houston, (Nasdaq: EVEP) has closed its acquisition of properties in the Monroe Field of northern Louisiana from an institutional partnership managed by EnerVest Management Partners Ltd., Houston, for $95.3 million.

The assets include a 95% average net revenue interest in more than 2,800 wells located in Union, Morehouse and Ouachita parishes. Net production is 7.6 million cu. ft. of gas per day. Proved reserves are 65.4 billion cu. ft. of gas equivalent (99% proved developed producing).



• Apache Corp., Houston, (NYSE, Nasdaq: APA) has closed its acquisition of a controlling interest in assets in the Permian Basin of West Texas from Anadarko Petroleum Corp., The Woodlands, Texas, (NYSE: APC) for $1 billion. The assets include 3,950 wells in 28 fields on 143,000 net acres. Eight of the fields provide 81% of the proved reserves and 72% of the expected 2007 net production.

Net production in 2007 will be approximately 9,000 bbl. of oil and 19 million cu. ft. of gas for a total of 12,000 BOE per day. Net proved reserves are 57 million bbl. of oil and 78 billion cu. ft. for a total of 70 million BOE. Apache's current Permian Basin operations have net production of 29,000 bbl. of oil and 79 million cu. ft. of gas per day.



• Sterling Energy Plc, London, (London: SEY) has closed its acquisition of Whittier Energy Corp., Houston, (Nasdaq: WHIT) for US$11 per share totaling approximately US$145 million in cash plus the assumption of US$43 million in debt for a total deal valued at US$188 million.

Whittier's assets are principally in Louisiana, Texas, Oklahoma and New Mexico with minor property interests in California, Colorado, Utah, Wyoming and Pennsylvania. The primary properties are on the Gulf Coast and in the Permian Basin. Net production is 16.2 million cu. ft. of gas equivalent per day. Reserves are 49 billion cu. ft. equivalent.



• Venoco Inc., Denver, (NYSE: VQ) plans to acquire assets in California and Texas in two deals from undisclosed sellers for a total of approximately $106 million. The California assets are in the West Montalvo Field in Ventura County near Venoco's existing operations. The Texas assets include several fields on the Gulf Coast including the Manvel Field in Brazoria County.

There are approximately 75 wells on the combined properties. Production from the assets is more than 500 BOE per day. Total proved reserves are 9.7 million BOE, and proved-plus-unproved reserves are approximately 14.7 million BOE.



• Goodrich Petroleum Corp., Houston, (NYSE: GDP) has closed the sale of substantially all of its South Louisiana assets to an undisclosed private company for approximately $100 million ($77 million net to Goodrich).

The assets include net production of approximately 13 million cu. ft. of gas equivalent per day and net proved reserves of approximately 41 billion cu. ft. equivalent (44% proved developed producing).



• Berry Petroleum Co., Bakersfield, Calif., (NYSE: BRY) plans to sell its noncore West Montalvo assets near Ventura, Calif., to an undisclosed buyer for approximately $63 million. Production is approximately 700 BOE per day. Reserves are 7 million BOE.



• Enerplus Resources Fund, Calgary, (NYSE: ERF; Toronto: ERF-UN) plans to acquire a 90% interest in privately held Kirby Oil Sands Partnership for C$127.8 million in cash and C$54.7 million in trust units for a total deal value of C$182.5 million. Kirby operates in the Athabasca oil sands of northern Alberta.

Enerplus will become managing partner and operator of the project. The Kirby oil-sands leases include 49 wells on 43,360 gross acres (more than 67 sections). Enerplus plans to have production of 10,000 bbl. of oil per day (9,000 net) by 2011. Estimated reserves are 244 million bbl. of bitumen (219.8 million net to Enerplus).



• Edgen Murray LLC, a subsidiary of Edgen Murray Corp., Baton Rouge, plans to acquire substantially all of the assets and certain liabilities of Bala Cynwyd, Penn.-based PetroSteel International LP and PetroSteel International LLC for an undisclosed price. PetroSteel distributes specialty offshore-grade steel plates and profiles.



• Superior Energy Services Inc., Harvey, La., (NYSE: SPN) has acquired Brookshire, Texas-based Advanced Oilwell Services Inc. for $24.1 million in cash, with a potential earnout payment of $6 million if Advanced achieves certain financial objectives. Advanced provides primary cementing and pressure-pumping services in East Texas, fabricating much of its own pressure-pumping equipment.



• Atchison, Kan.-based AmeriCast Technologies, a portfolio company of New York-based private-equity firm Castle Harlan, has acquired Atlas Castings and Technology, Tacoma, Wash., for an undisclosed price. Atlas has metal-casting and machining facilities in Tacoma and Chehalis, Wash., and produces castings of up to 40,000 pounds, primarily for the oil and gas industry and for nuclear and hydrocarbon-based power generation. Atlas will be added to AmeriCast's steel-castings business.



• Transocean Offshore International Ventures Ltd., an affiliate of Transocean Inc., Houston, (NYSE: RIG) has entered an agreement with Northern Mariana Islands-based Pacific Drilling Ltd. that gives Transocean exclusive marketing right for two deepwater drillships under construction and an option to buy a 50% interest in a joint-venture company through which Transocean and Pacific Drilling would own the drillships for an undisclosed price.

The purchase price for the joint-venture interest is 50% of the documented costs at the time of exercise. Pacific Drilling will have the right to exchange its interest for Transocean shares or cash.



• John Crane, a division of The Smiths Group, London, (London: SMIN) has acquired Tyler, Texas-based CDI Energy Services

Comments