In the Permian Basin in west Texas and eastern New Mexico, 55% of the Top 20 operators' production has been affected by acquisition and divestiture recently, writes exploration editor Peggy Williams in this month's cover story, "The Permian Basin." "All told, properties making more than 675,000 barrels of oil per day abruptly have new owners." The shuffling could arouse the old and prolific basin, one source says. The service sector will benefit and the changing of hands is bringing fresh cash to the area. "Indeed, whether it is due to a new zest among independents or just price euphoria buoying activity in all classes of companies, the rig counts in the Permian are double last year's levels," Williams writes. Meanwhile, a new wildcat area that operators hope will also spew exponential returns is the Mississippi Fan Foldbelt, or Atwater Foldbelt, in the Gulf of Mexico south of New Orleans. Huge reservoirs are believed to be under thousands of feet of water and equally challenging salt sheets there. "A couple of newbuild drillships have been deployed in recent months to regions of the foldbelt...," writes associate editor Jodi Wetuski, in "Foldbelt Fever." "It won't be too long before these companies and others know if their hunches about this area are on the money. Indications so far seem to be positive." Merger-and-acquisition activity in the Permian and the Gulf of Mexico provides many of the first-half U.S. E&P deals listed in this month's issue, in Oil and Gas Investor's biannual look at domestic dealmaking. In "Clear-Sky Turbulence," guest author Bill Marko says the second half should result in more transactions. Many producers have been polishing their balance sheets at the expense of production replacement. "This puts additional pressure on companies to find other ways of growing, which will necessitate more mergers and acquisitions...," writes Marko of Houston-based Madison Energy Advisors. Some producers may be in a better position this fall to buy additional reserves with stock. In "Catch a Rising Stock," senior financial editor Brian A. Toal talks to four E&P analysts about their top stock picks. They predict an upstream-stock rally in the second half but not every stock will benefit. Chevron chairman and chief executive officer Dave O'Reilly aims to make CHV a hot pick. See "Agenda Chevron" by financial editor Nick Snow for O'Reilly's plans. And in "The Williston Basin," editor Leslie Haines looks at the North Dakota basin, which was the cover feature in Oil and Gas Investor's debut issue, in August 1981. The look back kicks off our 20-year anniversary celebration that will culminate with the August 2001 issue. -Nissa Darbonne, Managing Editor

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