U.S.

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 cubic feet of gas equivalent. Pro forma, Atlas Energy will have 100% working interest in these projects.

Atlas Energy Michigan LLC Dick Redmond says, "This purchase provides our company with additional long-lived reserves and is consistent with our strategy of consolidating additional assets in the Antrim Shale. As operator of the Forest Home and Central Lake projects, these assets are familiar to our company and afford us more potential opportunities in this core area of development."

BreitBurn Energy Partners LP, Los Angeles, (Nasdaq: BBEP) plans to acquire the E&P and midstream assets in Michigan, Indiana and Kentucky owned by Quicksilver Resources Inc., Fort Worth, Texas, (NYSE: KWK) for $750 million in cash and approximately $704.5 million in stock for a total deal value of $1.45 billion.

The assets include more than 5,400 producing wells on 922,564 gross acres (529,698 net), related gas-gathering and processing systems and Quicksilver's interests in approximately 260,000 net undeveloped acres as of Dec. 31.

The Michigan assets include substantial Antrim shale growth opportunities and extensive non-Antrim development opportunities including Prairie du Chien, Richfield, and Detroit River areas. The Indiana and Kentucky assets are in the New Albany shale and include geology similar to the Antrim assets, adjacent acreage leasing opportunities, low price differentials and ownership of key regional pipeline systems.

Net production is 76 million cubic feet of gas equivalent per day, representing 38% of Quicksilver's production. Proved reserves as of Dec. 31 were 539 billion cubic feet equivalent (96% gas, 89% proved developed producing).

The assets also include low-risk development opportunities with potential for more than 2,500 additional drilling locations and more than 825 additional recompletions.

The Michigan midstream assets include 114,000 horsepower of operated compression, 297 miles of pipeline including 138 miles of transmission and 159 miles of high-pressure gathering and more than 1,000 miles of low-pressure gathering pipelines. The assets also feature three gas-processing plants for removal of carbon dioxide and four gas-liquid-recovery plants.

Pro forma, BreitBurn's gross producing wells will increase from 488 to 5,924 and net land will increase from 52,749 acres to 582,447. Production will increase from 46.2 million cubic feet equivalent to 122 million equivalent per day. Proved reserves will increase from 289 billion cubic feet equivalent (48 million barrels equivalent) to 819 billion equivalent (137 million barrels equivalent).

BreitBurn is an MLP subsidiary of Provident Energy Trust, Calgary (Toronto: PVE-UN; NYSE: PVX). The deal reduces Provident's ownership in BreitBurn from approximately 51% to approximately 23%.

Provident president and chief executive Tom Buchanan says, "This latest acquisition by BreitBurn further validates Provident's strategy of increasing the value of our U.S. energy business by establishing BBEP as a publicly traded master limited partnership. Provident unit-holders benefit from this deal through the projected increase in cash flow from BreitBurn's distributions, as well as through the value of our direct equity ownership position in a growing U.S. oil and gas business of significant size and scale."

BreitBurn co-CEO Hal Washburn says, "This acquisition truly transforms our company by nearly tripling our estimated proved reserves and production while adding Quicksilver's Michigan-based management, technical and operating teams with extensive experience in shale-gas development to our current team. Our operating and growth platform is strengthened and we are positioned to compete for both oil and gas opportunities going forward. The acquisition provides BreitBurn significant operating scale in Michigan making us the largest gas producer in Michigan and one of the top producers in the Antrim Shale."

Quicksilver president and CEO Glenn Darden says, "As a result of this transaction, Quicksilver will be better prepared to develop our large inventory of higher-return, higher-growth properties in the Fort Worth Basin and other areas."

BreitBurn will fund the deal with a $450-million private placement of equity and a $1.5-billion amended and restated bank credit facility underwritten by Wells Fargo Bank NA and an affiliate of Credit Suisse Securities (USA) LLC.

J.P. Morgan Securities is financial advisor to Quicksilver and Credit Suisse is financial advisor to BreitBurn.

The deal is expected to close by Nov. 1.

Standard & Poor's Ratings Services reports that Quicksilver's BB- rating and Stable outlook would not be affected by the deal. Although the transaction reduces Quicksilver's production and reserves by about one-third, use of approximately $590 million in after-tax proceeds to pay bank borrowings is favorable for credit. The reduction in debt gains Quicksilver needed financial flexibility to pursue an aggressive development program in the Barnett shale, S&P reports.

Catlin Oil and Gas Inc., a subsidiary of Universal Property Development and Acquisition Corp. (UPDA), Jacksboro, Texas, (OTCBB: UPDA) has closed its acquisition of several leases and wells in Palo Pinto County, Texas, from an undisclosed seller for $4.6 million in cash and stock.

The assets include approximately 94% working interest (72% net revenue interest) in more than 10 producing wells. Production is 1 million cubic feet of gas per day.

UPDA partially funded the cash portion with a three-year loan provided by Sheridan Asset Management LLC, White Plains, N.Y.

Charles Hill Drilling Inc., Grand Prairie, Texas, a subsidiary of Knight Energy Corp., Dallas, (Pink Sheets: KNEC) has leased 413 acres in north-central Texas.

One lease includes shallow drilling rights on the 300-acre Stroebel property in Eastland County including 55 wells, consisting of six saltwater-injection wells, eight wells that are currently producing 14 barrels of oil per day, five wells for re-entry activity, four wells for saltwater injection, three wells to be worked, and 29 wells to be plugged and abandoned.

The other lease is 113 acres on the Pike property in Stevens County.

CHD president Charles Hill says, "Because of the past production history and our analysis of the available 3-D seismic, we will apply for a license to drill four additional saltwater injection wells and proceed to add five wells through the re-entry process and rework three wells, one of which has recently produced 40 barrels per day itself. We plan to use high-volume submergible pumps on these wells to maximize production."

Dejour Enterprises Ltd., Vancouver, (Amex, Toronto Venture: DEJ) plans to acquire certain assets in Texas for US$3.5 million in cash.

The assets include four wells (two producing) on 2,100 acres in Liberty County. Proved reserves are 9.3 billion cubic feet of gas and 130,000 barrels of condensate.

Dejour chairman and chief executive Robert L. Hodgkinson says, "This asset purchase has many advantages, not the least of which includes a proven production base that we estimate should provide an accelerated payback of invested capital between 12 and 18 months and upside development potential in a stalwart high-pressure reservoir. The net revenue stream from this purchase is expected to exceed all company non-capex overhead expenditures for the foreseeable future."

The deal was expected to close in September.

Dynamic Natural Resources Inc., Boston, (OTCBB: DYNI) has acquired two leases in Illinois from an undisclosed seller for an undisclosed price.

The Kelsey Pierce lease assets include five shut-in wells in Edwards County, with 50% working interest on three wells. The wells initially produced 50 to 100 barrels of oil per day, and are currently producing up to six barrels per day.

The White lease assets consist of 38% working interest in one well in the Devonian structure.

Total production following workovers should be 15 barrels per day.

Eden Energy Corp., Vancouver, (OTCBB: EDNE) plans to acquire all rights, title and interests in the White River Dome project in Rio Blanco County, Colo., held by Colorado-based Starlight Oil and Gas LLC.

Starlight will also assign Eden all of its rights, title and working interest in the Love Federal 17-21 and 17-42 wells and lands earned there. This acquisition will give Eden 100% working interest in the White River Dome prospect.

El Paso Exploration & Production Co., a subsidiary of El Paso Corp., Houston, (NYSE: EP) has acquired Houston-based Peoples Energy Production Co., a subsidiary of Integrys Energy Group, Chicago, (NYSE: TEG) for $875 million in cash.

Peoples Energy has more that 600 proved and probable areas in ArkLaTex, Texas Gulf Coast, San Juan Basin, Mississippi and the Arkoma Basin. Production is 72 million cubic feet of gas equivalent per day. Proved reserves are 305 billion cubic feet equivalent (94% gas, 42% proved developed producing).

El Paso E&P president Brent Smolik says, "This acquisition directly complements the divestiture program we announced on Aug. 7 and builds our presence and inventory in core operating areas. Almost all of the Peoples Production properties are within regions where we currently operate, and roughly 80% of the acquired reserves and production are in the ArkLaTex and Texas Gulf Coast areas, where we have a proven track record of profitable growth."

El Paso funded the deal through general corporate liquidity augmented by increasing its existing revolving credit facility from $500 million to $1 billion.

Integrys plans to use the proceeds to pay short-term debt and strengthen its balance sheet.

JP Morgan is financial advisor to Integrys.

Standard & Poor's Ratings Services reports the deal does not immediately affect its ratings and outlook on El Paso of BB/Positive.

The acquisition adds short-term leverage and there are execution risks to both El Paso's planned MLP and divestiture plans, especially given recent market conditions, S&P reports. The company's failure to upsize its revolver or execute its permanent financing plan could detract from upward ratings momentum. However, optimizing the E&P portfolio could help the company to move away from higher-decline areas, S&P adds.

EnerJex Resources Inc., Overland Park, Kan., (OTC: EJXR) has acquired 200 wells in eastern Kansas from an undisclosed seller for $800,000.

Assets include a 100% working interest in wells producing approximately 40 barrels of oil equivalent per day on 1,100 gross acres of leaseholds with up to 100 additional drilling locations.

EnerJex's wholly owned operating subsidiary, Midwest Energy Inc., will operate the wells in Miami, Johnson and Franklin counties. EnerJex intends to workover many of the existing wells to maximize production and secondary recovery.

EnerJex's chairman and chief executive Steve Cochennet says, "This acquisition represents a significant addition to our company and brings our total production to approximately 160 barrels of oil equivalent per day. This transaction is an excellent example of our aggregation strategy and how we build our presence in specific geographical locations."

Enhanced Oil Resources Inc., Houston, (Toronto Venture: EOR) has acquired an additional 34,300 lease acres in the St. Johns Helium/CO2 Field in Apache County, Arizona.

Enhanced Oil Resources Inc., Houston, (Toronto Venture: EOR) has acquired approximately 3,100 acres of leases in the Chaveroo oil field in Roosevelt County, N.M., from an undisclosed seller for US$650,000.

This purchase increases Enhanced's position in Chaveroo Field to approximately 18,000 acres. The acquisition is expected to add approximately 18 barrels of oil per day to the current daily production of approximately 42 barrels. An ongoing workover program will be expanded to include these wells.

The Chaveroo oil field produces from the San Andres formation at a depth of approximately 3,500 feet and has produced approximately 24 million barrels to date.

EOR president and chief executive Barry Lasker says, "The acquisition of this portion of the field prior to initiating a pilot CO2 flood will allow the company to add contingent resources at a very reasonable price, a price that would be considerably higher should a positive CO2 pilot flood response be achieved. The consolidation of ownership within the field will significantly simplify future development activity and potentially allow for an expansion of the proposed CO2 pilot flood."

Equitable Resources Inc., Pittsburgh, (NYSE: EQT) bought out nonoperated working interests in Virginia from Penn Virginia Corp., Radnor, Pa., (NYSE: PVA) for $30 million.

Assets include 13.3 billion cubic feet of gas equivalent proved, and net production of approximately 1.7 million cubic feet equivalent per day. The assets are primarily in Wise County, Va. Penn Virginia held an approximate 14% working interest in the properties, which are operated by Equitable.

The net proceeds from the sale will be used to pay revolving credit-facility debt that includes $32.5 million borrowed in July to acquire properties in East Texas and Mississippi.

A. James Dearlove, president and chief executive, says the divested assets are noncore and allowed tax-efficient financing. "We are also pleased to make this trade as we believe the strategic fit of the recently acquired assets will allow us to more actively realize their upside potential."

EV Energy Partners LP, Houston, (Nasdaq: EVEP) and certain institutional partnerships managed by EnerVest Ltd., have entered an exploration joint-venture agreement in Central and East Texas with Apache Corp., Houston (NYSE: APA).

The agreement covers zones below the Austin Chalk in more than 400,000 acres owned by EV Energy and EnerVest, which will contribute the acreage and data, while Apache, as operator, will contribute its exploration and operations experience and the initial exploration capital.

EV Energy chairman and chief executive John B. Walker says, "This is an exceptional deal for EVEP, EnerVest and Apache. Apache is an excellent exploration company, and we are excited about working with them and the added value from the additional exploration and development of the deeper potential of this acreage."

FieldPoint Petroleum Corp., Austin, Texas, (Amex: FPP) has acquired a working interest in the Apache Bromide Unit in Oklahoma from Burr Ridge, Ill.-based Merit Management Partners I LP for $1.9 million.

The assets include 25% working interest (22% net revenue interest) in leasehold in Caddo County. Production is 30 barrels of oil equivalent per day. Net proved reserves are 80,000 barrels equivalent. Quantum Resources Management LLC is operator.

FieldPoint president and chief executive says, "We estimate that the reserves acquired will replace more than 100% of our total 2007 oil and natural gas production, while at the same time immediately adding approximately 30 barrels in daily oil production."

Horizon Industries Ltd., Vancouver, (CDNX: HRZ) has acquired a 37.5% working interest in additional acreage at the New Waverly prospect in Texas from Houston-based Pan American Production Co. Inc. for US$78,750 in cash and approximately US$45,600 in stock in a total deal valued at US$124,350.

The assets comprise approximately 2,700 acres in San Jacinto County, making up the second phase of the project. The prospect currently totals more than 3,100 acres consisting of two areas of mutual interest. Horizon holds a 25% working interest in the first phase, currently comprising approximately 400 acres. Following the completion of six wells on the prospect lands, Horizon will pay Pan American a further US$60,000 in stock.

Ignis Petroleum Group Inc., Dallas, (OTCBB: IGPG) plans to acquire acreage and producing properties in the Liberty Hills area of Louisiana from Anadarko Petroleum Corp., The Woodlands, Texas, (NYSE: APC) for $3 million in cash.

The assets include one producing well and more than 11,900 gross acres in Bienville Parish, with gas production from the Vaughn and Cadeville sands within the Upper Cotton Valley formation. Ignis may seek a working interest partner to further develop the property.

The deal was expected to close by Sept. 28.

Imperial Petroleum Inc., Evansville, Ind., (OTCBB: IPMN) has canceled its plans to acquire certain assets in the Four Corners area of the Southwest U.S. from Apollo Resources International Inc., Dallas, (Pink Sheets: AOOR) and its subsidiaries for $2.5 million in cash, $1.1 million in stock and assumption of up to $3.8 million in liabilities in a total deal valued at $7.4 million.

Imperial president Jeffrey T. Wilson says, "Apollo was not able to provide clear title to the assets that were the subject of the purchase agreement and has not been able to overcome the legal issues from its creditors in order to close the sale, so we have decided to move on."

Apollo Resources chief executive Dennis McLaughlin says, "Apollo did not agree to Imperial's proposed terms of the transaction. On Aug.17, Imperial decided to terminate."

Jed Oil Inc., Didsbury, Alberta, (NYSE: JDO) has acquired Rockies assets from JMG Exploration Inc., Pasadena, Calif., (NYSE Arca: JMG) for US$2.1 million, plus other settlement of debt JMG owed Jed, totaling US$2.6 million.

The assets include oil and gas properties in Niobara County, Wyo., and Candak County, N.D., and undeveloped land in Divide and Candak counties, N.D.

The sale was at a net loss to JMG of approximately US$2.6 million.

Legacy Reserves LP, Midland, Texas, (Nasdaq: LGCY) 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.

The pending deal includes 93 operated producing wells near Legacy's existing operations. Net production is approximately 159 barrels of oil equivalent per day. Proved reserves are 783,000 barrels equivalent (100% proved developed producing).

The closed deal includes 31 operated producing wells near Legacy's existing operations. Net production is 90 barrels equivalent per day. Proved reserves are 573,000 barrels equivalent (81% proved developed producing).

The pending deal is expected to close by early October.

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 barrels of oil equivalent per day. Proved reserves are 3.95 million barrels equivalent (100% proved developed producing).

Legacy will fund the deal with borrowings from its revolving credit facility.

The deal is expected to close during October.

Linn Energy LLC, Houston, (Nasdaq: LINE) has closed its acquisition of certain properties in the Midcontinent from Dominion Resources Inc., Richmond, Va., (NYSE: D) for $2.05 billion.

The assets include 2,500 producing wells in Oklahoma, the Texas Panhandle and Kansas. Proved reserves are more than 760 billion cubic feet of gas equivalent (93% gas and gas liquids, 75% proved developed) and proved and potential reserves are more than 2 trillion cubic feet equivalent.

Linn now has proved reserves of 1.6 trillion cubic feet equivalent and more than 5,000 drilling locations.

Dominion's E&P assets now consist of properties in the Appalachian Basin, where it is one of the largest producers. Proved reserves as of Dec. 31 were 1 trillion cubic feet equivalent and the company maintains gas gathering, pipeline and storage system.

Linn funded the acquisition with a $1.8-billion credit facility provided by RBC Capital Markets and BNP Paribas and a $1.5-billion private placement of equity.

Linn chairman, president and CEO Michael C. Linn says, "We are very pleased and excited about closing our landmark acquisition of Dominion's Midcontinent properties. This transforming event for Linn Energy makes us one of the top 20 largest independent oil and gas companies in the United States."

Jefferies Randall & Dewey was lead financial advisor and RBC Capital Markets and Citi were co-advisors for Linn, and JPMorgan, Lehman Brothers and Juniper Advisory LP were advisors for Dominion.

Lucas Energy Inc., Houston, (OTCBB: LUCE) has acquired three new leases in Atascosa County, Texas, from privately owned, Texas-based operator Laura Rodenberg Oil Co. Inc. for $400,000 in cash.

All three leases have producing wells and are in the Austin Chalk, Buda and Edwards formations. This acquisition extends Lucas' Austin Chalk trend assets.

Lucas Energy Inc., Houston, (OTCBB: LUCE) has acquired the Burnett No.1 lease in Texas from an undisclosed independent operator for $125,000 in cash.

The 260-acre lease is in Gonzales County and features a well in the same trend as most of the wells operated by Lucas.

Lucas Energy Inc., Houston, (OTCBB: LUCE) has acquired three wells in Gonzales County, Texas, from two independent operators for $350,000.

Lucas paid $300,000 for the Hindman No. 1 and No. 2 wells in the Austin Chalk formation, both producing. Lucas paid $50,000 for the Gandre No. 1 well, a shut-in with accumulative production more than 76,000 barrels of oil.

The company intends to rework these wells to increase production and reserves.

Monogram Energy Inc., Richmond, Texas, (Pink Sheets: MGRA) plans to acquire two oil leases near Corsicana, Texas, from an undisclosed seller for an undisclosed price. The leases currently have four producing and three non-producing wells.

Northern Oil and Gas Inc., Wayzata, Minn., (OTCBB: NOGS) plans to acquire approximately 5,000 net acres in Mountrail County, N.D., from Montana-based Montana Oil and Gas Properties LLC for US$2.5 million in cash and US$603,750 in stock in a total deal value of US$3.1 million.

The assets consist of 8,000 net acres south of Parshall Field. Northern now has 24,000 gross acres in Mountrail County.

The deal was expected to close in September.

Pacific Energy Resources Ltd., Long Beach, Calif., (Toronto: PFE) has closed its acquisition of all of the Alaskan assets of Forest Oil Corp., Denver, (NYSE: FST) for US$490.8 million.

The deal includes US$268 million in cash to pay the full balance of Forest Alaska Operating LLC's term loans, US$132 million in cash to Forest, 10 million Pacific Energy shares valued at approximately US$30 million and a US$60.75-million zero-coupon senior subordinated note due 2014.

The assets include Forest subsidiary Forest Alaska Holding LLC and remaining assets not held by Forest Alaska, including 50% equity interest in Cook Inlet Pipeline Co. Properties include nine fields in the Cook Inlet area, with the major fields of McArthur River, Redoubt Shoal, West McArthur River and Trading Bay, and the minor fields of West Foreland, Three Mile Creek, Sabre, Kustatan and Cosmopolitan.

Net production is approximately 5,000 barrels of oil equivalent per day (80% oil). Proved reserves are 26.06 million barrels equivalent (11.3 million proved developed producing) and possible and probable reserves of 34.54 million barrels for total proved, probable and possible reserves of 60.6 million barrels.

The assets also include nearly 1 million net undeveloped acres covering three offshore fields (Corsair, Raptor and Valkyrie), the onshore Susitina Basin and other onshore fields.

Pacific Energy president Darren Katic says, "This package of assets is a direct extension of our business strategy; the established production, with long-life reserves, generates strong, predictable cash flow. The multiple infill-drilling opportunities provide a low-risk means to grow the corporation's production through redevelopment. Significant undeveloped acreage, with multiple high-quality exploration targets, provides large exploration upside."

Forest president and chief executive H. Craig Clark says, "The close of this transaction marks a key strategic event for Forest. The producing assets of the company are now entirely onshore North America and focused primarily on repeatable plays in tight-gas sands and long-lived oil. Additionally, with the sale of these assets, Forest has reduced the leverage on its balance sheet, having pro forma net debt of approximately $1.7 billion and pro forma liquidity, with its current borrowing base, of $1.1 billion at June 30."

Pacific Energy funded the deal with a financing commitment of up to US$465 million.

Energy Capital Solutions LP was financial advisor to Pacific Energy and Scotia Waterous was financial advisor to Forest.

Penn Virginia Corp., Radnor, Pa., (NYSE: PVA) has acquired assets in eastern Oklahoma from an undisclosed seller for $47.9 million.

The assets include 22,700 gross acres (15,800 net) in the Arkoma Basin primarily targeting Hartshorne coalbed-methane. Net production is approximately 3.1 million cubic feet of gas equivalent per day. Proved reserves are 18.8 billion cubic feet equivalent and probable and possible reserves are 14.8 billion cubic feet equivalent.

The assets also feature upside potential on approximately 13,700 prospective net acres in the Woodford and Caney shales.

The deal was funded with cash on hand and borrowings from Penn Virginia's revolving credit facility.

Penn Virginia president and chief executive A. James Dearlove says, "Located adjacent to our existing Riverbend project, this acquisition has attractive transaction economics and provides us with additional exposure to potential upside opportunities. The acquisition is consistent with our growth strategy and also supports our belief that the Midcontinent region contains numerous attractive expansion opportunities."

Petro Resources Corp., Houston, (Amex: PRC) has acquired working interest in the El Vado East prospect in New Mexico from an undisclosed seller for an undisclosed price.

The assets include 10% working interest (8% net revenue interest) in the 90,000-acre prospect in the Mancos shale in the Chama Basin. The prospect will be operated by Approach Resources Inc., Fort Worth, Texas (Nasdaq: AREX).

Petro Resources expects the first of four vertical test wells will be spud in the fourth quarter.

PetroQuest Energy Inc., Lafayette, La., (NYSE: PQ) has acquired additional leasehold in the Fayetteville Shale trend of the Arkoma Basin in Arkansas from an undisclosed seller for an undisclosed price.

The deal increases its holdings to more than 17,000 net acres primarily in Van Buren County. The majority of the acreage position has been acquired in several transactions during the third quarter, and PetroQuest expects to further expand this acreage.

PetroQuest chairman, chief executive and president Charles T. Goodson says, "This concentrated acreage position, located in the core of this emerging trend, complements our significant presence in the Woodford Shale, and solidifies the Company in two of the most prominent resource plays in North America. We believe our Fayetteville position could ultimately create as much upside as our Woodford position."

The company also is evaluating strategic alternatives with respect to its gas gathering systems in the middle of the Woodford Shale trend in southeast Oklahoma, which include owning and operating approximately 180 miles of gathering systems with current throughput of approximately 30 million cubic feet per day.

Prime Petroleum Group, Dallas, (Pink Sheets: PPGO) has acquired an option for the 40-acre Clement lease in the fairway of the Barnett shale in Wise County, Texas, from an undisclosed seller for US$250,000 in cash and stock.

The three-year lease is north of Decatur and features a 100% working interest (70% net revenue interest). A gas-transmission pipeline tap is on the lease.

Pyramid Petroleum Inc., Calgary, (Toronto Venture: PYR) has canceled its plans to acquire Capco Energy Inc., Houston, (Pink Sheets: CGYN). Instead, Pyramid will acquire a wholly owned subsidiary of Capco that holds Gulf of Mexico producing properties for $11 million.

Capco will use the proceeds to reduce debt to support its operations offshore and onshore Texas, and in Oklahoma properties. The sale involves approximately 35% of Capco's proved reserves.

Capco's production is 19.5 million cubic feet of gas and 2,600 barrels of oil per day (7.3 million cubic feet equivalent net) from 23 wells.

Regions Oil and Gas Inc., Dallas, (Pink Sheets: RGNO) plans to acquire 1,800 acres in northeast Oklahoma with 50 equipped wells from an undisclosed independent operator for an undisclosed price.

The field, located in the Okmulgee area, is producing between 14- and 18 barrels of oil. Regions intends to increase daily production to between 100- and 150 barrels per day using modern and experimental techniques. The wells have multiple unproduced, proven pay zones behind pipe, several known to produce more than 500 barrels per day. The lease also gives Region the ability to drill new wells with possible secondary recovery projects.

Regions president Jerry Griggs says, "This lease has been owned and operated by the same operator for the last 50 years, using old and outdated techniques. Several of the wells have fallen into a state of disrepair and are in need of some work. I am confident if we utilize Regions' resources and our connections in the patch, we can produce two or three barrels per day per well, while keeping our cost per barrel down. This could add up to $1.5 million annually to our bottom line."

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 subject properties and assets and Petrolex returned the 90 million Renegade shares valued at approximately US$2.7 million.

Dallas-based RTF Realty Inc. has closed its acquisition of all the U.S. oil and gas properties of Toreador Resources Corp., Dallas, (Nasdaq: TRGL) for approximately $19.1 million in cash.

The assets primarily consist of nonoperated working interests in approximately 700 wells in five states. Proved reserves at year-end 2006 were approximately 700,000 barrels of oil and 4.1 billion cubic feet of gas totaling 1.4 million barrels of oil equivalent.

Toreador president and chief executive Nigel Lovett says, "The sale of these mature, nonoperated properties with no exploration or development potential completes the divestiture of the company's noncore, domestic assets and allows us to focus exclusively on our international operations."

Net proceeds funded debt payment, development in the South Akcakoca sub-basin offshore Turkey and other strategic initiatives.

Saxon Oil Co. Ltd., Dallas, (Toronto Venture: SXN; Pink Sheets: SXNOF) has acquired a 100% working interest in the Pfannenstiel B oil and gas lease from Prairie Resources Inc., Hays, Kan., for an undisclosed cash amount.

The lease has four producing oil wells and sufficient acreage for several development wells. Production is less than 10 barrels of oil per day. The company plans to carry out a 3-D seismic survey on the lease.

Saxon Oil Co. Ltd., Dallas, (Toronto Venture: SXN; Pink Sheets: SXNOF) has closed its acquisition of working interests in 17 oil and gas leases in north-central Kansas from Schoenchen, Kan.-based Castle Resources Inc. for US$2.2 million in cash.

The assets include working interests varying from 59% to 89% in 21 producing wells. Production is 94 barrels of oil per day (58 barrels net). Saxon now operates the properties. The deal was a related-party transaction because family members of Saxon chief executive and president Richard G. Green own some of the interests being acquired.

Greenwich, Conn.-based investors SPCP Group LLC and SPCP Group III LLC have acquired 2.4 million shares of a loan arrangement with Pacific Energy Resources Ltd., Long Beach, Calif., (Toronto: PFE) for C$6.7 million.

The acquisition is part of the deal for financing Pacific Energy's recent acquisition of Alaska assets from Forest Oil Corp., Denver (NYSE: FST). The investor group now owns 6.7 million shares of Pacific Energy, and will also own warrants to acquire 11.1 million additional Pacific Energy shares. The aggregate 17.8 million shares represent approximately 10.66% of the Pacific Energy's outstanding stock.

Pacific Energy has assets in Alaska; the offshore Beta Unit, Wilmington, Long Beach, Rosencrans and San Joaquin Basin areas of California; and the Pacific Creek prospect in Wyoming. Production is 7,950 barrels of oil equivalent per day.

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, Texas. Gross production is 6 million cubic feet of gas per day. Net proved reserves as of August 2006 were 61.3 billion cubic feet and 1.15 million barrels 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.

Sun Cal Energy Inc., San Francisco, (OTCBB: SCEY) has closed the acquisition of assets in the Greater Green River Basin in Wyoming from an undisclosed seller for an undisclosed price.

The assets include 100% working interest in 6,000 acres in Jonah Field, with 2,477.68 acres in South Jonah and 3,546.89 acres in West Jonah. Sun Cal can drill up to 37 wells on this acreage.

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 deal is valued at $3.20 per thousand cubic feet of gas equivalent of proved and probable reserves, according to Swift.

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 cubic feet equivalent per day (85% gas and gas liquids). Proved reserves are 77 billion cubic feet equivalent (70% proved developed) and probable reserves are 46 billion cubic feet equivalent.

The Sun TSH area covers approximately 12,200 gross acres and has approximately 115 producing well bores with an additional 115 locations identified. Net production is approximately 17 million cubic feet equivalent per day.

The Briscoe Ranch area covers approximately 62,100 gross acres and has approximately 36 producing well bores with an additional 35 locations identified. Net production is approximately 3 million cubic feet equivalent per day.

The Las Tiendas area covers approximately 8,600 gross acres and has approximately 34 producing well bores with an additional 34 locations identified. Net production is approximately 1 million cubic feet equivalent per day.

Swift will fund the deal primarily with its bank credit facility.

Swift chairman and chief executive Terry Swift says, "This strategic acquisition further enhances and complements the solid production base, which we have established in our South Texas operating region. The main productive interval of these properties is from the Olmos formation, similar to our AWP Olmos area. Swift Energy has significant experience exploiting this type of reservoir. We are also very pleased to have such a large acreage position that may deliver additional value to the acquisition."

Swift estimates the three fields will increase its fourth quarter production to 1.3 billion cubic feet equivalent. Current production is 50% gas and 38% gas liquids.

Simmons & Co. International and Griffis & Associates LLC were financial advisors to Escondido.

The deal is expected to close by Nov. 20.

Standard & Poor's Ratings Services reports t the ratings and outlook on Swift Energy (BB-/Stable/-) would not immediately change. Although the company's initial use of debt to fund the acquisition will increase financial leverage, Swift has not yet determined permanent financing, which could include use of proceeds from a potential sale of the company's New Zealand assets.

Standard & Poor's expects the company to preserve its capital structure while pursuing acquisitions of this magnitude.

The Oil & Gas Asset Clearinghouse, Houston, sold more than $72.3 million in properties in 108 lots at auction Aug. 8.

Newfield Exploration Co., Houston, (NYSE: NFX) sold six lots in East Texas and the Texas Gulf Coast for $8 million and Samson Resources, Tulsa, Okla., sold fifty-seven lots predominantly in the Permian Basin for more than $50 million.

Clearinghouse president and chief executive Ken Olive says, "Our August auction offered numerous quality assets as reflected by the prices received. We set a new record today with the price per lot being over $845,000, which is considerably higher than any previous auction. Twenty of the 83 lots sold averaged nearly $2.8 million a piece."

Universal Energy Corp., Houston, (OTC BB: UVSE) has entered a participation agreement to drill in a 3-D ready prospect in Chambers and Galveston counties, Texas.

The Lone Oak prospect is 3,526 acres in the Frio-Vicksburg trend of the Houston Salt Basin. Universal acquired a 12.5% interest.