Terax Energy\'s Barnett Shale Investments Have Plenty of Company DALLAS, Oct. 27, 2006 (PRIMEZONE) -- Companies of all sorts continue to pile into the Barnett Shale play in Texas.
The Southern California Public Power Authority has just purchased a share of a natural gas field on the Barnett Shale in Texas as a way to secure fuel for natural gas-fired power plants, the authority said on Thursday. The SCPPA represents southern California cities Anaheim, Burbank, Pasadena and Colton and the Turlock Irrigation District.
The authority purchased the Barnett Shale properties of Collins & Young Holdings LP. It did not disclose the price paid. Devon Energy will operate the drills in the Newark East Field of the Barnett Shale in Texas and is expected to yield 67 billion cubic feet of equivalent of proven reserves.
Two weeks ago, Dune Energy closed an acquisition of Barnett Shale properties for $7.0 million and agreed to purchase additional Barnett Shale properties for $25.8 million.
Two weeks prior to that, Ignis Petroleum Group, Inc. agreed to acquire 45% of the acreage, producing properties and natural gas gathering and treating system currently held by W. B. Osborn Oil & Gas Operations, Ltd. and St. Jo Pipeline Limited within the St. Jo Ridge (Barnett Shale) Field, located in Montague and Cooke Counties, Texas. The purchase price of $18,450,000, before closing adjustments, is to be paid in cash. And so it goes.
Terax Holdings In The Barnett Shale Area
Terax Energy (OTCBB:TERX) has acquired a total lease position of roughly 27,493 mineral acres in Erath, Comanche, and Hamilton Counties, Texas. Terax commenced drilling operations over the last year and to date, has spudded four wells in the Barnett. The company has entered into a five-well drilling contract with Unit Texas Drilling LLC, a wholly-owned subsidiary of Unit Corporation. Terax has an option to extend its drilling contract to additional wells. It is estimated that Terax will have drilled 14 wells in the Barnett through the end of 2006.
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