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Dominion wraps up $6.5bn assets sales



By Upstream staff 

Richmond, Virginia-based Dominion closed two separate sales of its US onshore natural gas and oil operations worth a total of $6.5 billion today as it continued plans to spin off most of its producing assets.

Dominion said it had closed the sale of its operations in the Permian basin, Michigan and Alabama to Highmount E&P, a new unit of Loews Corporation, for $4 million. The operations included estimated reserves of 2.5 trillion cubic feet equivalent at the end of last year.

The company also said it had completed plans to spin off it operations in the Rocky Mountains, the San Juan basin and on the Gulf Coast to XTO Energy for $2.5 million. These lands included proved reserves of 1tcfe at the end of last year.

Dominion said the closing marked the disposal of more than 85% of the assets it plans to sell. The remaining 15%, including reserves of about 780 billion cubic feet equivalent, is to be sold to Linn Energy for $2.05 billion. That deal is expected to close by the end of this quarter.

Dominion will retain only its Appalachian exploration and production operations with proved reserves of about 1 trillion cubic feet, which it said fit well with its core gas gathering, pipeline and storage businesses.


Tuesday, 31 July, 2007, 19:44 GMT  | last updated: Tuesday, 31 July, 2007, 19:44 GMT

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