|
Dominion News Releases
January 20, 1999
Dominion Energy Increases Presence in Rocky Mountain Core
Area
RICHMOND, Va. – Dominion Energy Inc.
announced today that it acquired San Juan Partners L.L.C., a Houston-based natural
gas investment company. The acquisition, for an undisclosed amount, more than
doubles Dominion Energy’s existing production and reserves in the Rocky Mountain
region and increases its total reserve base in North America to approximately
750 billion cubic feet equivalent (BCFE).
Assets of San Juan Partners include
working interests in the Northeast Blanco Federal unit located in the San Juan
Basin of New Mexico; the majority interest in a coal seam gas royalty trust;
several gas sales and marketing agreements; and other oil and gas interests.
G. E. Lake, Jr., senior vice president
– oil and gas, said: "This investment attracted us for three key reasons.
"First, it will add immediately
to earnings and will contribute to our long-term earnings growth objectives.
We will gain both working interest margins and tax credits over the next several
years.
"Second, the assets are primarily
located in the Rocky Mountain region, where we already have reserves and practical
working experience and knowledge of coal bed methane production and development.
We expect to be able to achieve synergies among our existing and newly acquired
assets through combined marketing and operating practices.
"Third, while the production
in this area typically flows to the West Coast, we have the ability to move
this gas, if needed, into the Chicago market in support of our domestic energy
plan. The plan focuses our independent power efforts in the Midwest and Northeast
regions of the United States, where 40 percent of the nation’s demand for energy
lies.
"Because of its financial strength
and staying power, Dominion Energy believes it will be able to take advantage
of the current low product price environment, and continue to find quality acquisition
opportunities in its core areas that will contribute to its growth objectives."
Dominion Energy is the natural gas
and competitive power subsidiary of Dominion Resources Inc. (NYSE: D), an $18
billion holding company headquartered in Richmond, Va. The company is also active
in regulated electric power and financial services.
###
|
