Oil and Gas Investor Magazine - January 2007 January 1, 2007 Feature CO2 PLAYS ROLE IN CHESAPEAKE-CHAPARRAL-CALMUET DEAL Taryn Maxwell EAST TEXAS GAS PRODUCERS PUSHING THE VOLUME UP Peggy Williams EXPLORATION FUNDING FINDS WAY INTO ENERGY FINANCE Gary Clouser GAS HYDRATE Arthur H. Johnson and Michael A. Smith GLOBAL-MINDED GURU Brian A. Toal INTERVIEW: THE BARNETT SHALE'S CHIEF - TREVOR REES-JONES Leslie Haines M&A IN LATIN AMERICA Carlos A. Garibaldi MLP CARVE-OUTS TO PLAY GREATER ROLE IN U.S. E&P Bertie Taylor PRIVATE CAPITAL CHOICES Brian A. Toal PRODUCERS BUYING RIGS OF THEIR OWN Richard J. Mason TRISTONE CAPITAL'S CAPITAL MARKETS OVERVIEW David Marcell, managing director, Tristone Capital Inc., 713-651-4230 WHAT HAPPENS IN BURMA... Molly Steele and Kevin Pennell WINNING THE WAR FOR TALENT Steven M Emshoff and Gladney B. Darroh Headlines Aban Offshore To Acquire Majority Stake In Sinvest Apache To Acquire Interest In West Texas Assets From Anadarko Basic Energy To Buy JetStar BreitBurn Plans To Acquire Texas Assets From Voyager Gas Canadian Oil Sands Acquires Talisman's Syncrude Interest CGG Closes Veritas Acquisition For $3.1 Billion Dana Gas Acquires Centurion Energy For C$1.3 Billion Devon Plans To Divest All West African Assets Encore To Acquire Additional Williston Basin Assets From Anadarko Encore To Acquire Wyoming Assets From Anadarko Energen Acquires San Juan Basin Assets From Dominion EV Energy Plans To Acquire Michigan Assets Flotek Acquires Triumph Drilling Tools Forest Oil Plans To Acquire Houston Exploration GE To Acquire Vetco Gray For $1.9 Billion Goodrich To Sell Most Of Its South Louisiana Assets Graves Resigns As Toreador President and CEO Grayhawk Retains Tristone To Sell The Company Halliburton Closes Acquisition Of Ultraline Services Halliburton To Acquire Ultraline From Savanna National Oilwell Varco Acquires NQL Energy Omni To Acquire Cypress Energy Pengrowth Closes Acquisition Of Canadian Burlington Subsidiaries Sterling Energy Plans To Buy Whittier Superior Energy Acquires Duffy & McGovern Taqa Bratani To Buy North Sea Assets From Talisman TNK-BP To Acquire Interest In Vanyoganneft JV From Occidental Companies in This Issue COMPANIES IN THIS ISSUE Company Briefs Additional news... Canadian E&P M&A news Canadian stock-based deals affected by tax-policy news A&D Watch International E&P M&A news Oil-service M&A news U.S. E&P M&A news Completions MERGE OR DE-MERGE Nissa Darbonne, Executive Editor E&P Momentum NORTH SEA SQUEEZE Peggy Williams, Senior Exploration Editor Editors Comment Amid Political Shifts in Hemisphere, Keep An Eye On Mexico Brian A. Toal Amid Political Shifts In Hemisphere, Keep An Eye On Mexico Brian A. Toal Building Rigs Richard J. Mason Canadian Asset Market Turns On Its Head As Supply Outpaces Demand Stephen Payne Canadian Flow-Through Financings Nearly Doubled In Third Quarter Stephen Payne Carve-Outs Bertie Taylor Climbing Steel Prices Taking Toll On Earnings, Reports Lone Star Leslie Haines CO2 In Oklahoma Taryn Maxwell Colin Powell: U.S. Needs New Nuclear Power Stephen Payne Could New Members Increase OPEC's Market Influence? Brian A. Toal Decline In Demand May Be Only Source Of Lower Oil Prices, Near Term Stephen Payne East Texas Gas Peggy Williams M&A In Latin America Carlos A. Garibaldi Most Independents Post Quarterly Production Growth Bertie Taylor Private Capital Choices Brian A. Toal Red-Tape Blessing? Brian A. Toal Red-Tapre Blessing? Brian A. Toal Stanislaw: Peak Oil Demand More Likely Than Peak oil Supply Leslie Haines Stanislaw: Peak Oil Demand More Likely Than Peak Oil Supply Leslie Haines The Industry's Own Manhattan Project To Drive Geophysical Innovation Peggy Williams The Recipe Leslie Haines Third-Party Review Aids Both Buyer And Seller, Reservoir Analysts Say Stephen Payne Exploration Highlights EASTERN U.S. GULF COAST INTERNATIONAL HIGHLIGHTS Peggy Williams MIDCONTINENT & PERMIAN BASIN WESTERN U.S. From the Editor-in-Chief THE RECIPE Leslie Haines New Financings NEW FINANCINGS NewsWell Amid political shifts in hemisphere, keep an eye on Mexico Brian A. Toal Canadian asset market turns on its head as supply outpaces demand Stephen Payne Canadian flow-through financings nearly doubled in third quarter Stephen Payne Canadian producers add 3B barrels of oil, 7.67 Tcf of gas Oil and Gas Investor This Week CERA: Peak-oil theory may distort policy, energy debates Oil and Gas Investor This Week Cimarex Energy not interested in unconventional gas Leslie Haines Climbing steel prices taking toll on earnings, reports Lone Star Leslie Haines Colin Powell: U.S. needs new nuclear power Stephen Payne Congress approves opening of more drilling acreage Oil and Gas Investor This Week Could new members increase OPEC's market influence? Brian A. Toal Decline in demand may be only source of lower oil prices, near term Stephen Payne Krohn: Fear of failure is greatest risk in the E&P industry A&D Watch McClendon suggests a penny per Mcf to educate Americans Bertie Taylor and Leslie Haines Most independents post quarterly production growth Bertie Taylor No slowdown in capital flow in sight, says Warburg Pincus Bertie Taylor and Nissa Darbonne Oilfield-service sector produces another winning quarter Bertie Taylor Profit potential shifting to oil-service providers midstream operators Leslie Haines Several energy IPOs priced just under the wire of the pre-Thanksgiving Day break. And more are planned for 2007. Nissa Darbonne and Bertie Taylor Stanislaw: Peak oil demand more likely than peak oil supply Leslie Haines Texas industry may be settling into period of stablility Oil and Gas Investor This Week The industry's own Manhattan project to drive innovation Peggy Williams Third-party review aids both buyer and seller, analysts say Stephen Payne On the Money RED-TAPE BLESSING Brian A. Toal, Senior Financial Editor Trends & Analysis MAJORS' RESULTS Bertie Taylor