Energy business briefs for Dec. 21

Energy business briefs for Dec. 21
Published: December 21, 2012

PLUGGING IN

Gulfport expands acquisition

Gulfport Energy Corp. is adding more acreage to its pending acquisition in Ohio's Utica Shale, the Oklahoma City company announced Thursday. Gulfport will pay an additional $70 million for about 7,000 acres, pushing its total deal to about $372 million. The company announced earlier this week it had struck a deal with an unnamed seller for about 30,000 net acres for $302 million. The expanded deal will boost Gulfport's leasehold in the Utica Shale to about 106,000 net acres.

Purchase of company is near

Mathena Inc., an El Reno-based oil-field equipment rental company, is on the verge of being acquired by The Weir Group PLC, of Scotland. The Weir Group will make an initial payment of $240 million for Mathena, with deferred payments of up to $145 million over the next two years depending on whether the company meets profit growth targets. “Mathena is a well-regarded business in the U.S. upstream oil and gas markets, with a strong management team and market share in the pressure control drilling markets,” Weir CE Keith Cochrane said.

Williams Partners eye region

Williams Partners LP is seeking regulatory approval to serve growing markets in Virginia and North Carolina with its Transco natural gas pipeline. Transco has filed an application with the Federal Energy Regulatory Commission to provide 270,000 dekatherms of natural gas transportation capacity a day to those markets. An ongoing expansion of the 10,200-mile pipeline is expected to be completed by September 2015. “Historically low natural gas prices and the public's desire for cleaner energy have fueled an increasing need for natural gas service,” said Frank Ferazzi, general manager of Williams' Transco pipeline. “This project is a great opportunity for us to support these utilities in serving the growing electric power and gas distribution needs in this region.”

Joint venture is planned

A midstream company backed by Williams Partners LP is forming a $1.5 billion joint venture to serve producers in the Utica Shale in Ohio and parts of Pennsylvania. Caiman Energy II LLC is teaming with Dominion to create Blue Racer Midstream LLC. Caiman will provide private equity capital and Dominion will contribute midstream assets.

PostRock secures credit

PostRock Energy Corp. has secured a new four-year revolving credit facility, the Oklahoma City company announced Thursday. The facility's initial borrowing base was set at $90 million, with $61.3 million outstanding at closing.

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