Oil and Gas Investor Magazine - March 2007 March 1, 2007 Feature LISTEN UP: OPERATORS CONTROLING FRAC BOUNDARIES Ian Bryant MANAGEMENT BUYOUT WITH LITLE START-UP CAPITAL-HERE'S HOW Terry Sabom NEW PLAYERS PUSHING GULF OF MEXICO M&A PRICES HIGHER William A. Marko QUESTAR WINS YEAR-ROUND DRILLING RIGHTS Taryn Maxwell SHALLOW DJ GAS Peggy Williams SPACS PROVIDING PUBLIC START-UP CAPITAL Bertie Taylor THE VIEW: U.S. BUYSIDERS EXPECT HIGHER COMMODITY PRICES Brian A. Toal TRISTONE CAPITAL'S ENERGY LENDER PRICE SURVEY Headlines Anadarko To Sell Portion Of Its K2 Unit Interest Apache Acquires Texas Assets From Anadarko Basic Energy Closes JetStar Acquisition Basic Energy Services To Acquire Sledge Drilling Berry Petroleum To Sell Noncore California Assets Callon Petroleum To Buy Out BP's Interest In Entrada Field CCS Income Expands U.S. Presence With New Companies Constellation To Acquire Cherokee Basin Assets From EnergyQuest Dune Energy Cancels Voyager Acquisition Encore Closes Acquisition Of Big Horn Basin Assets From Anadarko Energy Partners No Longer For Sale Enerplus To Acquire Majority Interest In Oil-Sands Partnership EV Energy Acquires Monroe Field Assets From EnerVest EV Energy To Acquire Louisiana Assets From EnerVest Exco Resources Closes North Louisiana Acquisition From Anadarko GE Closes Acquisition Of VetcoGray Goodrich Closes South Louisiana Asset Sale Halliburton To Move Global HQ To Dubai Hercules Plans To Acquire Todco For $2.3 Billion Legacy Reserves To Acquire Oklahoma Assets From Nielson & Associates Loeb, Radoff To Join Pogo Board Maverick Oil To Sell Barnett Shale Interests Omni Closes Holston, Cypress Deals Progress Energy To Acquire Majority Of BG's Canadian Production Queensland Rejects TCW Bid, Accepts Revised AGL Offer RAK To Acquire 50% Of Indago Rider To Acquire Assets In Alberta TCW Group Launches Competing Bid For Queensland Gas True Rejects Lawrence Reorganization Proposal U.S. Steel To Acquire Lone Star For $2.1 Billion Venoco To Acquire Assets In Texas And California Warren Resources To Acquire Assets In Wyoming, New Mexico and California Watt Resigns As CEO And Chairman Of Maverick Companies in This Issue Companies in this Issue Company Briefs Additional News Apache takes Permian package for $1B Encore to roll some assets into MLP; sell Barnett stake Exco takes second APC package; tab totals $2.4B In Memoriam M&A News Tenaris to add Hydril to portfolio for $2.2B Tristone breaks out units; hires Petrie research team Completions CREDIT QUALITY Nissa Darbonne, Executive Editor E&P Momentum ALABAMA'S CAMBRIAN CONASAUGA SHALE Peggy Williams, Senior Exploration Editor Editors Comment Alabama's Cambrian Conasauga Shale Peggy Williams Buyers, Sellers Coming To Terms In New Gas-Price Environment Taryn Maxwell Capitalizing A Management Buyout Terry Sabom Credit Quality Nissa Darbonne Exceptional Deepwater Gulf Results In 2006; Longer Drill Times Peggy Williams ExxonMobil's Tillerson: Producers On Longer Timelines Than Policy-Makers Taryn Maxwell Financiers: Lower Commodity Prices Are In Smart E&P Plans Bertie Taylor Former Iraqi Oil Minister Says Producers Should Avoid Country For Now Taryn Maxwell Gulf Of Mexico M&A William A. Marko Hello, Frac Ian Bryant Lenders: Smaller Producers Focus On Drilling Existing Portfolios Bertie Taylor Managing Costs Will Be Key For North American Gas Producers' Success Taryn Maxwell Record Oil And Gas Project Costs Expected For 2007 Brian A. Toal and Taryn Maxwell Robust Canadian M&A Activity Expected In 2007 Taryn Maxwell Room For Optimism Brian A. Toal Running Hot And Cold Leslie Haines Shallow DJ Gas Peggy Williams The SPAC Bertie Taylor Tristone Capital's Energy Lender Price Survey Miles Redfield U.S. Buyside Brian A. Toal Exploration Highlights EASTERN U.S. GULF COAST INTERNATIONAL HIGHLIGHTS Peggy Williams MIDCONTINENT & PERMIAN BASIN WESTERN U.S. From the Editor-in-Chief Running Hot and Cold Leslie Haines New Financings NEW FINANCINGS NewsWell Buyers, sellers coming to terms in new gas-price environment Taryn Maxwell Exceptional deepwater Gulf results in 2006; longer drill times Peggy Williams Financiers: Lower commodity prices are in smart E&P plans Bertie Taylor Former Iraqi minister says producers should avoid country for now Taryn Maxwell Managing costs will be key for North American gas producers' success Taryn Maxwell Record oil and gas project costs expected for 2007 Brian A. Toal and Taryn Maxwell Robust Canadian M&A activity expected in 2007 Taryn Maxwell Saudi, African energy plans reviewed at New Delhi conference Peggy Williams Smaller producers focus on drilling existing portfolios Bertie Taylor Tillerson: Producers on longer timelines than policy makers Taryn Maxwell On the Money ROOM FOR OPTIMISM Brian A. Toal, Senior Financial Editor Trends & Analysis CRUDE OIL OUTLOOK
