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Oil & Gas Financial Journal

Chevron Corp.'s subsidiary, Chevron Australia Pty Ltd., has produced first gas from the North West Shelf Venture's Train 5 onshore liquefied natural gas (LNG) facility at the Karratha Gas Plant in Western Australia.

The US $2.1 billion is expected to increase the joint venture's export capacity by up to 4.4 million tonnes of LNG annually to 16.3 million tonnes.

The Train 5 expansion includes: a fifth LNG processing train, a jetty extension and second LNG loading berth, two additional power generation units, a third LPG fractionation unit, a new fuel gas compressor, an acid gas removal unit and a third boil off gas compressor.

Chevron holds a one-sixth interest in the joint venture. In addition to Chevron's subsidiary, Chevron Australia Pty Ltd., the other North West Shelf venture participants also holding a one-sixth interest are: BHP Billiton (North West Shelf) Pty Ltd., BP Developments Australia Pty Ltd., Japan Australia LNG (MIMI) Pty Ltd., Shell Development (Australia) Proprietary Ltd., and Operator Woodside Energy Ltd. CNOOC NWS Private Ltd. is also part of the venture but does not have an interest in its infrastructure.

Stone Energy closes Bois d'Arc acquisition

Stone Energy Corp. has completed its acquisition of Bois d'Arc Energy Inc. Stone paid approximately $935 million in cash and issued approximately 11.3 million shares in connection with this transaction. Stone funded the cash portion of the acquisition with cash on hand of approximately $510 million and borrowings of $425 million under its newly amended and restated $700 million credit facility.

Comstock Resources Inc. sold its 49% interest in its subsidiary Bois d'Arc to Stone pursuant to the previously announced merger between Stone and Bois d'Arc. Comstock received $440 million in cash and 5,317,069 shares of common stock of Stone. Comstock used the cash proceeds to repay amounts outstanding under its bank credit facility.

David Welch, president and CEO of Stone, stated, "The acquisition of Bois d'Arc will provide Stone with a substantial inventory of exploration and exploitation projects. We expect to move quickly to absorb operations and to accelerate our combined drilling program. We welcome those Bois d'Arc employees who have elected to join Stone, and we also look forward to working with Gary Blackie and his exploration group through our new participation agreement with Bois d'Arc Exploration LLC."

Comstock holds a 13% ownership interest in Stone Energy. M. Jay Allison, CEO of Comstock, stated, "The completion of this transaction allows Comstock to focus entirely on growing its onshore operations and provides additional capital to develop our leasehold position in the emerging Haynesville shale gas play in East Texas and North Louisiana."

Osum Oil Sands closes C$275M private equity financing

Osum Oil Sands Corp. has closed a private equity financing for C$275 million at a price of C$10.50 per share. The financing was led by Warburg Pincus LLC and included a substantial investment by Blackstone Capital Partners V LP.