Proved
reserves of 780 Bcfe sold to Linn Energy LLC for approximately $2 billion
E&P
sales total $13.9 billion for 5.5 Tcfe of proved reserves
1 Tcfe of proved Appalachian
reserves retained
RICHMOND, Va. – Dominion (NYSE: D) announced today that it has closed
on the sale of its Mid-Continent natural gas and oil exploration and production
properties, the final of several planned E&P property sales conducted as
part of the company’s strategic refocusing on its power generation and
energy distribution, transmission, storage and retail businesses.
Dominion sold
approximately 780 billion cubic feet equivalent (Bcfe) of proved natural gas
and oil reserves as of Dec. 31, 2006 to Linn Energy LLC for approximately $2
billion. The properties are primarily in Oklahoma. Proceeds from this
sale will be used for general corporate purposes, including share re-purchases.
Dominion
has sold about 5.5 trillion cubic feet equivalent (Tcfe) of proved reserves
for approximately $13.9 billion over the last three months.
The company remains
one of the largest producers in the Appalachian Basin, with approximately 1
Tcfe of proved reserves as of Dec. 31, 2006. The Appalachian operations are
lower risk and fit well strategically with Dominion’s
natural gas gathering, pipeline and storage system.
Dominion was advised in
the sale by the investment banking firms of JPMorgan, Lehman Brothers and Juniper
Advisory LP. BakerBotts LLP and McGuireWoods
LLP are the company’s legal advisers for the sale.
Dominion is one of
the nation's largest producers and transporters of energy, with a portfolio
of more than 26,500 megawatts of generation, 7,800 miles of natural gas transmission
pipeline and 1 Tcfe of proved natural gas and oil reserves. Dominion also owns
and operates the nation's largest underground natural gas storage system with
about 960 billion cubic feet of storage capacity and serves retail energy customers
in 11 states. For more information about Dominion, visit the company's Web
site at http://www.dom.com.
