• New York-based private-equity firm Riverstone Holdings LLC has named John Browne managing director and managing partner of Riverstone Europe. He was chief executive of BP Plc, London (NYSE: BP).

Riverstone co-founders David M. Leuschen and Pierre F. Lapeyre Jr. report, "(Browne) is without question one of the most visionary, experienced and talented executives in the energy industry with an unparalleled global understanding. We are looking forward to (him) helping us expand our existing energy practice and identifying new opportunities in the alternative and renewable energy markets."

Browne says, "Since its founding in 2000, Riverstone has emerged as one of the leading and certainly one of the most respected private-equity firms in the energy industry. This is an opportunity for me to return to the energy industry full-time, which will enable me to best apply my life-long skills and experience."



• Privately owned, Denver-based Rimrock Energy LLC has received equity commitments of $250 million from Bear Stearns Merchant Banking and Natural Gas Partners.

Rimrock was formed in July to focus on onshore unconventional resources in North America, including shale gas, tight gas and coalbed methane. The company was founded by chief executive Terrell A. Dobkins, chairman Sanford E. McCormick and chief financial officer Wallace G. Wilson, who have also made equity commitments.

Dobkins was vice president, production, for Antero Resources Corp., where he focused on resource plays in the Barnett shale, Arkoma Basin and Piceance Basin. McCormick was CEO for private and publicly traded E&P companies. Wilson was CFO of several companies and has experience in public accounting.

Dobkins says, "We created Rimrock to capitalize on the growing opportunities in unconventional oil and gas in a well-capitalized venture with strong partners. I feel very fortunate to have such a strong team of professionals, from top to bottom. In addition, BSMB and NGP both have established track records for working closely with management teams to help develop and grow companies, and we look forward to working with them."



• Eric Macy and other former executives with Houston-based TexCal Energy, which was sold in 2006 to Venoco Inc., Denver, (NYSE: VQ) have formed Navitas Oil & Gas, Houston, focused on acquiring U.S. onshore properties, primarily in the Sacramento Basin in California and on the Texas Gulf Coast.

Macy was chairman of TexCal Energy, which was formed to acquire the oil and gas assets of Tri-Union Development Corp. through a 363 bankruptcy auction process in October 2004. TexCal's focus was onshore Texas and California and had 31 million BOE of proved reserves. Venoco Inc. purchased TexCal for a net consideration of $456 million.

Macy is chief executive officer of Navitas and was previously an executive vice president with Jefferies & Co. (NYSE: JEF). Joining him at Navitas are Suzanne Ambrose, chief financial officer; Daniel Glaiser, vice president, exploration; and Vicki Townsend CPL, vice president, land. They can be reached at 713-654-1600.



• Former Petsec Energy Inc. executives have IPO'd 104 million subscription shares and 10.6 million regular shares of Lafayette, La.- based, Gulf of Mexico-focused Leed Petroleum Plc. The shares are now trading on the London AIM exchange as LDP. Matrix Corporate Capital is nominated adviser and broker.

Leed has interests in 12 Gulf leases and one lease onshore South Louisiana. Shares were presold at 47 pence each, raising 49 million pounds (US$98 million). Shares outstanding total 251 million, and market cap is 118 million pounds (US$236 million).

Proceeds will be used to drill and develop Eugene Island 183/184, South Marsh Island, Ship Shoal and Grand Isle assets, make acquisitions and reduce debt. Leed also holds nonoperated interests in East Cameron, Main Pass and Eugene Island 172 and 184.

Net proved reserves total 1.1 million bbl. of oil and liquids and 30 billion cu. ft. of gas, according to Houston-based Collarini Associates.

Howard Wilson, president and chief executive, was vice president, engineering and operations, of Darcy Exploration Inc., which was purchased by Novus Petroleum Ltd., and then held that position with Novus Louisiana LLC. He previously was with Petsec, Placid Oil Co. and Nerco Oil and Gas Inc.

James Slatten, chief operating officer, was vice president, land and legal, at Darcy and Novus Louisiana, and previously held that position with Petsec. Prior to this, he was an attorney in private practice.



• Ellora Energy Inc., Boulder, Colo., has amended its S-1 and will now IPO 8 million shares at approximately $18.40 each for a total raise of $147.2 million. The shares will trade on Nasdaq as LORA. Ellora will use proceeds to pay $84 million in debt from its 6.94% credit facility; the balance will fund capex and general corporate purposes.

Ellora has interest in 293 gross producing wells (161 net) on 913,000 gross acres (843,000 net) in East Texas and western Louisiana and in the Hugoton Field in southwestern Kansas. Net production is approximately 28 million cu. ft. of gas equivalent per day. Proved reserves as of June 30 were approximately 256 billion cu. ft. equivalent (73% gas, 36% proved developed).

T. Scott Martin is chairman, president and chief executive. He was chief operating officer of Alta Energy and founded Ellora in 1994. James R. Casperson is vice president, finance, and chief financial officer. He was CFO of Denver-based Whiting Petroleum Corp.

Underwriters are A.G. Edwards & Sons Inc.; Friedman, Billings, Ramsey & Co. Inc., Raymond James & Associates Inc. and KeyBanc Capital Markets, a division of McDonald Investments Inc.



• Foreign interest in Gulf of Mexico assets has pushed average prices there to more than $3 per proved Mcf. While Japanese companies' interest in buying onshore the U.S. has been clear, a first East Texas deal has been signed.

Sojitz Energy Venture Inc., an affiliate of Sojitz Corp., Tokyo, (Tokyo: 2768) has acquired assets from Ark-La-Tex Energy LLC, Houston, and partners, including Pinkston Resources, for approximately US$79 million.

The assets consist of 26 producing wells on approximately 6,400 acres in the South Carthage, Minden, Shiloh and Blocker fields in Panola, Rusk and Harrison counties. Gross production is 6 million cu. ft. of gas per day. Net proved reserves as of August 2006 were 61.3 billion cu. ft. and 1.15 million bbl. of oil.

Sojitz is active in the Gulf of Mexico, North Sea, Qatar, Egypt and Brazil. Lantana Oil & Gas Partners marketed the package for Ark-La-Tex et al.



• Chesapeake Energy Corp., Oklahoma City, (NYSE: CHK) has retained UBS Investment Bank to assist it in forming a private MLP or an alternative financial structure that may be worth some $1 billion to own a nonoperated majority interest in its midstream gas assets, which consist primarily of gas-gathering and -processing assets. Excluded from review are operations in Appalachia.

The assets under consideration are in Texas, New Mexico, Oklahoma, Arkansas and Louisiana, and include midstream operations in the Barnett shale in the Fort Worth Basin. The assets currently generate annualized cash flow of approximately $100 million.



• Petroleum Development Corp., Bridgeport, W.Va., (Nasdaq: PETD) is considering an IPO of an upstream MLP from some of its existing low-operating-cost, low-production-decline, long-lived reserves. PDC would be general partner and retain significant equity interest in the assets as well as cash flow. The IPO may raise $100- to $150 million. PDC would use proceeds to fund an accelerated drilling program. Morgan Stanley is its financial advisor.



• Encore Acquisition Co., Fort Worth, Texas, (NYSE: EAC) has begun pricing its Encore Energy Partners LP IPO of 9 million common units. Underwriters have an overallotment allowance of 1.35 million common units. The new upstream MLP's units are to begin trading on the NYSE as ENP.

The IPO is of 37% equity interest in the MLP or 40% if the overallotment is exercised. UBS Investment Bank and Lehman Brothers are joint book-running managers. A.G. Edwards, Credit Suisse, Raymond James and RBC Capital Markets are co-managers.

Encore Energy Partners holds producing and nonproducing properties in the Elk Basin of Wyoming and Montana (including EAC's purchases from Anadarko Petroleum Corp.) and in the Permian Basin. At year-end 2006, the Elk Basin assets had proved reserves of 21.4 million BOE (68% oil; 86% proved developed).



• MarkWest Energy Partners LP, Denver, (NYSE: MWE) is merging with MarkWest Hydrocarbon Inc. (Amex: MWP), extinguishing its incentive distribution rights (IDRs), in a $734-million unit and cash deal.

MarkWest Hydrocarbon will become a subsidiary of MarkWest Energy Partners, which is the largest gas processor in the Northeast and the largest gas gatherer in Carthage Field in East Texas. It also has midstream gas assets in Oklahoma. MarkWest Hydrocarbon controls and operates MarkWest Energy, and also markets gas and gas liquids.

"...This transaction will allow us to couple our customer-focused growth strategy with one of the lowest costs of capital in the MLP industry," says Frank Semple, president and chief executive of both MarkWest Energy Partners and MarkWest Hydrocarbon.

Elimination of the IDRs will reduce MarkWest's cost of equity capital, and the combination will eliminate the cost of running two public companies, he adds. The deal may close by year-end or in early 2008.

Financial advisors are Lehman Brothers (for the MarkWest Energy Partners conflicts committee); RBC Capital Markets for MarkWest Energy Partners; and Merrill Lynch & Co. for MarkWest Hydrocarbon. Debt financing is being arranged by RBC.

Standard & Poor's Rating Services reports its B+ rating on MarkWest Energy Partners LP and outlook (Stable) will not immediately be affected by the plan.

"We expect that the transaction will increase leverage over the next two years, but believe that the company has sufficient room in its current corporate credit rating to absorb the related additional debt. However, liquidity may be tight in the short term, as the transaction will be funded through an upsized secured revolving credit facility," S&P reports.



• Houston-based, blank-check company Tremisis Energy Acquisition Corp. II has filed an S-1 to IPO 9.5 million units at an estimated $8 each for a total raise of $76 million. The company intends to list on the American Stock Exchange. Merrill Lynch and EarlyBirdCapital Inc. are underwriters.

Tremisis intends to focus on the energy industry, including oil and gas production, distribution and transmission, electricity generation and alternative energy. Lawrence S. Coben is chairman, chief executive and chief financial officer. He was an independent consultant and CEO of Tremisis Energy Acquisition Corp.



• Paul Bragg's newly IPO'd blank-check oilfield-services consolidator Vantage Energy Services Inc., Houston, (Amex: VTG) plans to change its domicile from Delaware to the Cayman Islands for tax reasons. Vantage plans to acquire Offshore Group Investments Ltd., a subsidiary of F3 Fund, an affiliate of Cayman Islands-based TMT Global, in a total deal valued at US$331 million.



• Reef Oil & Gas Partners LP, Richardson, Texas, has filed with the SEC to offer up to $200 million worth of units in Reef 2007-2009 Drilling Program. The registration says up to 1,200 limited-partnership units and 6,800 general-partner units will be offered at $25,000 each. Drilling is expected in Texas, New Mexico, Louisiana, Wyoming and Oklahoma. Reef Securities Inc. is dealer-manager.



• IHS Inc., Englewood, Colo., (NYSE: IHS) has acquired Norwalk, Conn.-based independent energy-research firm John S. Herold Inc. for approximately $48 million in cash.

Herold covers more than 400 oil and gas companies and provides online transaction databases and deal analyses on M&A and capital markets.

IHS president and chief operating officer Ron Mobed says, "This acquisition expands the IHS offerings in critical information and insight for clients in operating companies and banking and investment communities, thus broadening and deepening the reach of IHS across the energy sector."

Herold chairman and chief executive Art Smith says, "Importantly, the extensive well- and field-level data from IHS will enhance Herold's research, valuation and project analyses and allow Herold, as a business unit of IHS, to better serve our collective clients."



• Standard Chartered Plc, London, (London: STAN) plans to acquire Harrison Lovegrove & Co. Ltd., London, for an undisclosed price.

Harrison Lovegrove is a global oil and gas M&A advisory boutique, with operational offices in London, Moscow, Kuala Lumpur, Perth, Calgary and Houston and a research center in Washington. Harrison Lovegrove has advised on successful transactions totalling approximately US$20 billion and has represented both national oil companies and the supermajors as well as independent oil companies. The Harrison Lovegrove business is complementary to Standard Chartered's existing oil and gas corporate advisory capabilities.

The deal is expected to close this month.



• Hallie H. Kim has joined EnCap Investments LP, which is currently raising its 13th institutional fund, in its Houston office as a managing director, overseeing investor relations and fund-raising. Prior to joining EnCap, Kim was with Pantheon Ventures Inc. in San Francisco and focused on evaluation of and monitoring primary fund investments in North America. She was also with Credit Suisse Group's private-fund group in New York.



• Irving, Texas-based private-equity firm Natural Gas Partners has named Christopher D. Ray managing director. He was a principal and remains general counsel.

Raymond G. Edgar and Thomas J.N. Verhagen have been named principals. Edgar was a head of underwriting and portfolio manager for GE Energy Financial Services. Verhagen was director of commercial operations of the Western region for Oceaneering International Inc.

Ray Davis has been named venture partner. He was co-chairman and co-chief executive of Energy Transfer Partners LP, an NGP portfolio company.



• Plexus Capital, Denver, reports David Christofferson has joined the firm as a partner. He was chief financial officer for Venoco Inc., Denver, (NYSE: VQ) and involved in the company's IPO and arranged public and private debt financings of up to $500 million.



• Privately held, Boulder, Colo.-based Ellora Energy Inc. has named Steve Enger vice president, investor relations and corporate development. He was research director for Petrie Parkman & Co. (now known as Merrill Lynch Petrie Divestiture Advisors) based in Denver.



• Energy-research firm Pickering Energy Partners Inc. and investment-banker Tudor Capital have officially become Tudor, Pickering & Co. LLC after the NASD has finally approved the combination, the firm reports. "No change in research routine," co-founder and head of research Dan Pickering reports. "We're grinding on ways to make money in energy stocks-market whiplash restraints were ordered earlier in the week with the new company logo. Biggest difference: we're no longer PEPboys-or gals. Now call us TPC."



• New York-based private investment firm Riverstone Holdings LLC has named Elizabeth K. Weymouth managing director. She was managing director and head of investment business in the U.S. Northeast for JPMorgan Private Bank.



• The Woodlands, Texas-based financial-consulting and merchant-banking firm IEV Capital LLC has formed a $1.83-billion fund to invest in on- and offshore drilling, green energy businesses and other industries.

IEV Capital chief executive Ryan Sumstad says, "We feel that, with the industry expertise that our team has along with this access to capital, we will be able to make a significant impact in the energy sector...We already have a backlog of projects that we plan to begin reviewing for this purpose."

Sumstad is founder, chairman and CEO of The Woodlands-based IE Ventures Group of Cos. and was a division program manager at semiconductor-manufacturing equipment provider KLA-Tencor. In the past 11 years, IE Ventures has helped launch more than 50 start-ups in myriad industries.



• Quicksilver Gas Services LP, Fort Worth, Texas, priced its IPO of 5 million units at $21 each and is trading on NYSE Arca as KGS.

E&P company Quicksilver Resources Inc., Fort Worth, (NYSE: KWK) formed the midstream MLP from its gathering and other transportation assets in the Barnett shale in North Texas. Quicksilver Gas Services GP LLC is general partner of the MLP, which holds Cowtown Pipeline system in the southern portion of the Fort Worth Basin.

The MLP will use the proceeds to pay back Quicksilver Resources for its assets and capex advanced to it prior to the offering. Any excess proceeds will be used for general purposes.

UBS Securities LLC and Goldman, Sachs & Co. were joint book-running lead managers and A.G. Edwards & Sons Inc., JP Morgan Securities Inc. and Fortis Securities LLC were co-managers.



• Houston-based Plains GP Holdings LP has filed an S-1 to IPO a to-be-determined amount of units for a to-be-determined price, raising up to $400 million. The units will be listed on the New York Stock Exchange. A symbol has not been determined yet. Citi and Lehman Brothers are underwriters.

Plains GP was formed in August by Plains All American Pipeline LP, Houston, (NYSE: PAA) with Plains Holdings GP LLC as general partner. Following the offering, Plains GP will own all Class A units in Plains AAP LP, which owns a 2% general-partner interest and all of the incentive distribution rights in Plains. Plains Holdings GP is owned by the contributing parties and will own a 0.1% general-partner interest in Plains GP.

The GP interest is in Plains All American assets that include approximately 20,000 miles of active pipelines and gathering systems in the U.S and Canada; 30 million bbl. of tank capacity; 57 transport and storage barges; and 30 transport tugs. The facilities segment provides storage, terminalling and throughput services for crude oil, refined products and LPG, as well as LPG fractionation and isomerization services.

The marketing segment purchases and sells refined products and LPG from producers, refiners and others. It owns approximately 30 million bbl. of above-ground, and 1.3 million bbl. of underground, terminalling and storage facilities.

Plains GP plans to use proceeds to distribute funds to contributing parties and pay transaction expenses. Net proceeds from overallotment will be used to redeem common units from contributing parties.



• Houston-based El Paso Pipeline Partners LP has filed an S-1 to IPO 25 million units at approximately $24.15 each for a total raise of up to $603.8 million. It expects to list on the New York Stock Exchange as EPB. Lehman Brothers, Citi, Goldman, Sachs & Co., UBS Investment Bank and Tudor Pickering are underwriters.

The limited partnership was formed by El Paso Corp., Houston, (NYSE: EP) to own and operate gas-transportation pipelines, storage and other midstream assets. The initial assets consist of 100% of Wyoming Interstate Co. Ltd., which operates primarily in Wyoming and Colorado, and 10% general-partner interests in Colorado Interstate Gas Co. in the U.S. Rockies and Southern Natural Gas Co. in the southeastern U.S. The parent, El Paso Corp., holds the remaining interest.

Wyoming Interstate's assets consist of approximately 700 miles of pipe from western Wyoming to northeastern Colorado with a design capacity of approximately 2.3 billion cu. ft. of gas per day.

Colorado Interstate's assets consist of approximately 4,000 miles of pipe in the Rockies and the Anadarko Basin with a design capacity of approximately 3 billion cu. ft. per day.

Southern Natural's assets consist of approximately 7,600 miles of pipe from Texas, Louisiana, Mississippi, Alabama and the Gulf of Mexico to Louisiana, Mississippi, Alabama, Florida, Georgia, South Carolina and Tennessee with a design capacity of approximately 3.7 billion cu. ft. per day.

El Paso Pipeline plans to use proceeds to reimburse El Paso Corp. for capex and to pay transaction costs.



• Petsec Energy Ltd., Lafayette, La., (Pink Sheets: PSJEY) will delist from the U.S. markets, but continue trading in Australia, due to the high costs of complying with Sarbanes-Oxley in the U.S., chief executive Ross Keogh said at EnerCom Inc.'s annual The Oil & Gas Conference in Denver recently. "We are delisting but it does not mean we will cease to report regularly. We just won't incur those costs." Petsec produces about 18 million cu. ft. of gas per day from the Gulf Coast and offshore, has 53 leases in the Gulf of Mexico and Mobile Bay, and has 25% of an oil discovery to be developed next year in Beibu Gulf offshore southern China.



• Crosstex Energy LP, Dallas, (Nasdaq: XTEX) plans an estimated $80-million, 29-mile gas pipeline in north Johnson County, Texas, to provide greater takeaway capacity to what Crosstex believes is "becoming the new heart of the Barnett shale." The ultimate capacity of the low- and high-pressure gathering system will be approximately 400 million cu. ft. of gas per day.

Completion was expected in the second quarter. Initially, the pipeline will handle approximately 80 million cu. ft. per day beginning this quarter. Chesapeake Energy Corp., Oklahoma City, (NYSE: CHK) is the anchor shipper. The project includes 20- and 24-inch pipe and three compressor stations totaling 36,000 horsepower.

Barry E. Davis, Crosstex president and chief executive, says, "We are constructing the first large-diameter low-pressure gathering lines into what is becoming the new heart of the Barnett Shale. The expansion will provide new and existing Crosstex customers with much-needed outlets to Texas markets and access to long-haul transportation pipelines to other major U.S. markets."



• Petrohawk Energy Corp., Houston, (NYSE: HK) recently hiked its 2007 budget to $675 million to speed its drilling in the Fayetteville shale. In its Midcontinent region, the E&P is running two rigs now but expects that to increase to eight by mid-2008, chief executive Floyd Wilson said at EnerCom Inc.'s annual The Oil & Gas Conference recently.

The company is trying shorter frac intervals and is so far seeing estimated ultimate recovery of 2- to 2.5 billion cu. ft. equivalent per well. Company-wide from all plays, 3P reserves are now estimated to have topped 4 trillion cu. ft. equivalent, he said, reiterating Petrohawk's ultimate plan to be acquired someday.



• Both Venoco Inc., Denver, (NYSE: VQ) and Denbury Resources Inc., Houston, (NYSE: DNR) have their eyes on Hastings Field south of Houston. Venoco acquired the field as part of its acquisition of Houston-based TexCal last year. Hastings production is already up 50% since then, chief executive Tim Marquez said at EnerCom Inc.'s annual The Oil & Gas Conference. "I call it basic plumbing-we increased the size of the waterflood pumps and other simple things, and we're drilling 20 replacement wells."

Original oil in place at Hastings is an estimated 1.2 billion bbl. If CO2 injection occurs by 2010, as Denbury and Venoco plan, the recovery could be 90- to 120 million bbl. "After Denbury recoups its payout [for supplying CO2], we back in for 25%. This is a very large upside for a company our size," Marquez said.

Denbury has an option to acquire Hastings between November 2008 and November 2009, said president and CEO Gareth Roberts. It has proposed a 300-mile CO2 pipeline between Donaldson, La., and Hastings, to be completed by 2009 at a cost of at least $450 million.



• More than 1,200 new well completions were reported by the industry in the North Texas Barnett shale in 2006, according to Chip Johnson, chief executive of Carrizo Oil & Gas Co. (Nasdaq: CRZO). Johnson County production surpassed that of Tarrant County last November. Both counties surpassed Denton and Wise counties in March 2006. The entire play, which is about the size of New Jersey, is producing about 1.2 billion cu. ft. per day. Carrizo has 675-plus Barnett well locations and about 200,000 net acres in other U.S. shale plays, Johnson said at EnerCom Inc.'s annual The Oil & Gas Conference in Denver.



• Exxel Energy USA Inc., a subsidiary of Exxel Energy Corp., Houston, (CDNX: EXX) has closed its acquisition of an interest in assets in Washington state from EnCana Oil & Gas (USA) Inc., a subsidiary of EnCana Corp., Calgary, (Toronto, NYSE: ECA) for US$13.8 million.

The assets feature an undivided 12.5% working interest in leases in approximately 390,000 gross acres (48,000 net) acres in the Columbia River Basin. Also included is a 12.5% working interest in the Brown 7-24 well currently being drilled.

The deal was originally for US$21.5 million and featured an undivided 20% working interest in leases in approximately 375,000 gross acres (75,000 net) acres and a 20% working interest in Brown 7-24.



• Petrohawk Energy Corp., Houston, (NYSE: HK) has acquired working interest in Arkansas from Blaze Energy Corp., Boise, Idaho, (Pink Sheets: BLZE) for $15.2 million.

The assets include various working interest in approximately 45,000 acres in Fayetteville shale in Van Buren and Cleburne counties. Blaze estimates 3,000 wells can be drilled in the acreage.

Blaze will use proceeds for drilling, payment of overriding royalties and for general corporate purposes. Blaze chairman and chief executive A. Leon Blaser says, "We are very excited about the introduction of a well-capitalized firm like Petrohawk into the Fayetteville shale, especially given the ambitious drilling schedule it has planned. And, raising over $16 million will enable us to move forward while we seek additional funding to meet our share of drilling capital expenditures...."



• Standard & Poor's Ratings Services has lowered its corporate credit rating on Hunt Oil Co., Dallas, to BBB from BBB+ and has a negative outlook on the company's credit quality.

"The downgrade reflects our assessment that the underperformance of Hunt's core North American E&P business, coupled with escalation of construction costs associated with major liquefied natural gas (LNG) projects, lessens the company's ability to fund the LNG projects' development without incurring meaningful additional net debt leverage," says S&P credit analyst Ben Tsocanos.

Privately held Hunt's conservative financial policies are partially offsetting upstream business characteristics that are weaker than those of similarly rated peers, Tsocanos adds. The company has some publicly held debt. "The LNG projects carry considerable risk and may limit Hunt's flexibility to invest in the E&P business and reverse declines in North American operations."

Internationally diversified Hunt has short-lived, developed reserves; its intermediate financial-risk profile is based on substantial financial resources; and it has a history of achieving favorable results in challenging international environments, Tsocanos says.

"The negative outlook reflects the view that the increased cost of project construction, coupled with North American production declines, reduces the company's financial flexibility as it funds major LNG projects. A return to a stable outlook is tied to securing project financing for the LNG construction and improvement of core operations, which would reduce dependence on long-term LNG projects.

"Conversely, continued underperformance of the core E&P business, setbacks in the LNG project construction or financing, or a greater-than-expected increase in net debt leverage would likely result in a lower rating."



• Hanover Compressor Co., Houston, (NYSE: HC) and Universal Compression Holdings Inc., Houston, (NYSE: UCO) have completed their merger, creating Exterran Holdings Inc. (NYSE: EXH) with equity capitalization of approximately $3.8 billion.



• Privately held, Houston-based Derrick Equipment, which manufactures solids- and waste-control equipment used in oil and gas drilling, ranked No. 1 overall in total customer satisfaction, according to a survey and analysis by Houston-based independent research firm EnergyPoint Research Inc.

The study was of the performances of drilling/wellsite equipment and materials providers. "While Derrick Equipment rated highly across a number of attributes, the company received particularly strong marks from respondents for the engineering, reliability and performance of its products," says Doug Sheridan, managing director.

Smith International ranked No. 2 overall and first in drillbits, for a high-quality line, on-time delivery, and pre- and post-sale service and support, Sheridan says.

Rounding out the Top Five overall are Davis-Lynch, a manufacturer of downhole cementing equipment, and tubular-goods manufacturers Sumitomo Pipe and Tube and Vallourec & Mannesmann.

The survey was conducted this year from January through July and is based on 2,319 evaluations by 636 respondents representing 176 E&P companies, drilling contractors and upstream consultants worldwide. A total of 32 oilfield equipment and materials providers received the minimum number of evaluations to be rated in the survey.



• Dallas-based HKN Inc. (fka Harken Energy Corp.), Dallas, (Amex: HKN) has acquired 8 million shares of Spitfire Energy Ltd., Calgary, (Toronto Venture: SEL) at C$0.50 each in a deal valued at C$4 million. The deal increases HKN's holdings to 10.9 million shares, representing approximately 25.4% of Spitfire's outstanding shares. As part of the deal, two HKN officers-Mikel Faulkner and Anna Williams-will join the Spitfire board.



• TrueStar Petroleum Corp., Vancouver, (Toronto Venture: TPC) reports Sydney, Australia-based The Macquarie Bank has begun foreclosure proceedings against Texas-based subsidiary TrueStar Barnett LLC and TrueStar is taking steps required to protect its assets, shareholders and creditors.

TrueStar chairman and chief executive Dick Shuster says, "With the value of our properties greater than the monies due to the Macquarie Bank, we are in a position to consider a number of options to cure this issue. The default under the loan agreement arose as the development terms in the loan agreement executed in December 2006 did not match the actual level of development completed by TrueStar Barnett LLC in 2007." He adds that turmoil in the credit market is also a contributor to the action.



• Renegade Energy Corp., Moreno Valley, Calif., (Pink Sheets: RGDE) has defaulted on its financing contract with Oklahoma-based Petrolex LP to develop revenue-producing oil and gas properties in Oklahoma and other assets pertaining to those properties. Renegade returned the properties and assets, and Petrolex returned 90 million Renegade shares valued at approximately $2.7 million.



• Swift Energy Co., Houston, (NYSE: SFY) plans to acquire interests in three South Texas properties from privately held Escondido Resources LP, a company financed by Houston-based private-equity firm EnCap Investments LP, for $245 million.

The assets include nearly 100% working interest in 185 wells in the Maverick Basin on an aggregate 82,900 acres in the Sun TSH area in La Salle County, the Briscoe Ranch area primarily in Dimmit County, and the Las Tiendas area in Webb County. Net production is approximately 21 million cu. ft. equivalent per day (85% gas and gas liquids). Proved reserves are 77 billion cu. ft. equivalent (70% proved developed) and probable reserves are 46 billion cu. ft. equivalent.

Simmons & Co. International and Griffis & Associates LLC were financial advisors to Escondido. The deal is expected to close by Nov. 20. Swift will fund the deal primarily with its bank credit facility.



• Atlas Energy Resources LLC, Pittsburgh, (NYSE: ATN) has acquired additional assets in the Antrim shale in Michigan from an undisclosed seller for $10.7 million. The assets include direct working interests in 53 wells in the Central Lake and Forest Home projects in Antrim County. Proved reserves are 5.2 billion cu. ft. of gas equivalent. Pro forma, Atlas Energy will have 100% working interest in these projects.



• Legacy Reserves LP, Midland, Texas, (Nasdaq: LGCY) plans to acquire certain producing properties in the Texas Panhandle from undisclosed private parties for $60.5 million in cash. The assets include 263 producing wells, all operated. Net production is 606 BOE per day. Proved reserves are 3.95 million BOE (100% proved developed producing).

Separately, Legacy plans to acquire certain producing properties in the Permian Basin from an undisclosed private seller for $15.3 million in cash and has acquired Permian Basin assets from undisclosed private sellers for $6.1 million for a total $21.4 million.



• Baseline Oil & Gas Corp., Houston, (OTCBB: BOGA) plans to acquire producing properties in South Texas from Corpus Christi, Texas-based DSX Energy Ltd. LLP for $100 million.

The assets include 100% working interest in 12 wells on assets offset to Blessing Field in Matagorda County. The field has established production in five separate fault blocks with proved and probable reserves in 20 different sands. Baseline will be operator.

Pro forma, Baseline will have 100% working interest in both its Blessing and North Texas Eliasville properties and proved reserves of approximately 60 billion cu. ft. of gas equivalent (50% gas; 35% proved developed producing).

If closing, Baseline will fund the deal with debt and a convertible instrument.



• BlueStone Natural Resources LLC, Tulsa, Okla., has acquired Columbus Energy LLC for an undisclosed price. Columbus operates more than 140 wells in South Texas and the Rockies. Production is more than 17.8 million cu. ft. of gas equivalent per day. Columbus is now a subsidiary of BlueStone.

In a separate transaction, Bluestone acquired certain additional interests in South Texas properties operated by Columbus from a subsidiary of Tulsa-based Samson. The acquisitions were funded by a $100-million credit facility with Bank of America.



• Buccaneer Resources LLC, Houston, has entered a participation agreement with Houston-based AnaTexas Offshore Inc. and Cottesloe Oil and Gas, a U.S.-based subsidiary of Gawler Resources, Perth, Australia, (Australia: GRL) for the Pompano project in the shallow-water Gulf of Mexico. Buccaneer acquired 65% interest, with Cottesloe holding 25% and AnaTexas operating the prospect.

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