• Canadian Natural Resources Ltd., Calgary, has acquired 100% interest in the Petrovera Resources partnership, which has heavy-oil properties in east-central Alberta and Saskatchewan, for aggregate C$701 million from EnCana Corp. (Toronto; NYSE: ECA). Separately, Canadian Natural has sold about a third of the acquired assets to Penn West Petroleum Ltd., Calgary, (Toronto: PWT) for C$234 million, resulting in a net cost of C$467 million for the retained properties. Current net production from the working interests retained by Canadian Natural is approximately 27,500 bbl. of heavy oil and 9 million cu. ft. of gas per day before royalty interests of 1,200 bbl. and 2 million cu. ft. per day. After royalties, production is approximately 18,000 BOE per day. Net production acquired by Penn West is approximately 10,000 BOE per day (70% heavy oil) in the Kindersley/Coleville region, southwestern Saskatchewan, and approximately 400,000 net undeveloped acres. EnCana sold its 53.3% interest in Petrovera to Canadian Natural for approximately C$374 million along with a 46.7% interest EnCana purchased from partner ConocoPhillips Canada for a total of C$701 million. EnCana will use the proceeds from the Petrovera sale to reduce debt. FirstEnergy Capital Corp. was financial advisor to EnCana. The Petrovera partnership was formed in 1999 between Gulf Canada (now ConocoPhillips Canada) and PanCanadian Petroleum Ltd. (now EnCana). • BG Group, London, (London: BG) plans to buy Houston-based El Paso Corp.'s (NYSE: EP) western Canadian upstream business, El Paso Oil and Gas Canada Inc., for approximately US$346 million. Year-end 2003 proved reserves were 132 billion cu. ft. of gas equivalent, before royalties, (84% gas) in four areas in the Western Canadian Sedimentary Basin-Bubbles and Ojay/Sundown (British Columbia) and Waterton and Copton (Alberta). Assets include approximately 690,000 net acres of leasehold (630,000 undeveloped). Production was 57 million cu. ft. equivalent per day, net, at year-end 2003 (83% operated). The average working interest is 86%. • Shiningbank Energy Income Fund, Calgary, (Toronto: SHN) plans to acquire privately held Birchill Resources Ltd. for C$175 million, adding production in Alberta and Saskatchewan. The main Alberta properties are in the Ferrier area, adjacent to Shiningbank's own operations, and in the Winterburn/Kaybob and Rainbow regions. Birchill also has production at Nottingham and Coleville in southern Saskatchewan. Shiningbank estimates Birchill's established reserves at 14 million BOE, with a reserve-life index of 8.3 years. The deal was expected to close in March. • Fairborne Energy Ltd., Calgary, (Toronto: FEL) plans to by BP Canada Energy Co. assets in the West Pembina/Brazeau area of west-central Alberta for C$116 million. Production is approximately 3,600 BOE per day, consisting of 465 bbl. of oil, 425 bbl. of gas liquids (NGLs) and 16.3 million cu. ft. of gas. Proven and probable reserves are 6.4 million BOE. The acquisition also includes 96,600 net acres of undeveloped land; significant working interest in the West Pembina sour-gas processing plant; and field compression, sour-gas gathering infrastructure and a central oil battery. The acquisition was to close by March 31. Financing will be with equity and debt. Fairborne presently has no debt. A two-year-old company, Fairborne currently produces 5,300 BOE per day. The purchase will bring its total daily output above 9,000 BOE per day. Waterous & Co. was transaction advisor to BP.