• In its tenth acquisition of 2004, Oklahoma City-based Chesapeake Energy Corp. (NYSE: CHK) plans to acquire Tulsa-based, privately owned BRG Petroleum Corp. and related partnerships for $325 million. Chesapeake will gain about 223 billion cu. ft. of natural gas equivalent of proved reserves, 277 billion of probable and possible and net production of 30 million cu. ft. of gas equivalent per day from 477 existing wells. The proved reserves have a reserves-to-production index of 20.3 years, are 93% gas and 48% proved developed, have current lease operating expenses of 53 cents per thousand cu. ft. equivalent and will be 96% Chesapeake-operated. The assets are primarily in the Midcontinent and Ark-La-Tex regions. Drilling locations are in the Sahara gas play in northwest Oklahoma and in the East Texas Cotton Valley gas play in Nacogdoches County, Texas. Following closing, which was expected by Feb. 1, Chesapeake's proved reserves were to increase to an estimated 4.8 trillion cu. ft. of gas equivalent. Randall & Dewey advised BRG. • Energy Partners Ltd., New Orleans, (NYSE: EPL) has entered into an agreement with a private company to acquire oil and gas properties in south Louisiana for $150 million in cash. The transaction includes a two-year exploration partnership covering more than 1 million acres; an inventory of 22 drillable prospects with a net unrisked potential of 29.5 billion cu. ft. of gas equivalent; proved reserves of 54.2 billion equivalent (86% gas); and probable reserves of 9.1 billion equivalent. The acquisition consists of nine fields, four of which are currently producing a total of approximately 16.9 million cu. ft. of gas equivalent per day. • Berry Petroleum Co., Bakersfield, Calif., (NYSE: BRY) plans to acquire interests in the Niobrara fields in northeastern Colorado for $110 million from J-W Operating Co. and others. The assets consist of more than 130,000 gross acres and Berry, as operator, will have a working interest of approximately 52%. Current production, net to Berry's interest, is 9 million cu. ft. of gas per day, with estimated proved gas reserves of 87 billion cu. ft., while proved developed reserves are estimated to be 34 billion cu. ft. The acquisition includes approximately 200 miles of gathering system and compression facilities. Closing on the transaction is expected during this first quarter. The purchase will be financed by bank borrowings under the company's existing credit facility. J-W Operating was advised by Waterous & Co. • Stone Energy Corp., Lafayette, La., (NYSE: SGY) plans to acquire 35,000 net exploration acres in the Williston Basin of North Dakota and Montana for $85 million. The acquisition includes proved reserves and a small amount of oil production. Approximately 85% of the purchase price will be allocated to unevaluated acreage within the Bakken fairway. Separately, Stone has acquired rights to approximately 27,000 net acres some 40 miles southeast of the Monument Butte Field in Utah for approximately $5 million. The company plans to test the coalbed-methane potential of this acreage at depths of 2,000 to 4,000 feet with a three- to five-well exploratory program during 2005. • Edge Petroleum Corp. (Nasdaq: EPEX) has acquired all of the South Texas oil and gas interests of Contango Oil & Gas Co., Houston, (Amex: MCF) for $50 million. The properties are primarily in Jim Hogg County, Texas, and produce from the Queen City formation. The assets consist of 38 nonoperated wells with an average 68% working interest and 52% net revenue interest. As of the end of November 2004, these properties were producing at a net daily rate of approximately 10 million cu. ft. of gas equivalent. Contango will retain production of approximately 2.3 billion Btu per day. • Swift Energy Co., Houston, (NYSE: SFY) has closed the acquisition of most of the interests in Cote Blanche Island Field, St. Mary Parish, La., and Bay De Chene Field, Lafourche and Jefferson parishes, La., for $26.4 million, from EnerVest Management Partners Ltd., also of Houston. Proved reserves on the acquired properties are estimated to be 5.6 million bbl. of oil and 9.8 billion cu. ft. of gas, or a total of 7.3 million BOE. Current production is approximately 1,000 BOE per day net to the purchased interests. • Clayton Williams Energy Inc., Midland, Texas, (Nasdaq: CWEI) has sold its interest in the Jo Mill Unit in Borden County, Texas, for $22.1 million in cash. This property was among assets acquired in May 2004 from Southwest Royalties. The company also sold substantially all of its interests in the Romere Pass Unit in Plaquemines Parish, La., for $8.2 million in cash. The company retained drilling rights to five locations in the unit, of which two are proved undeveloped and three are exploratory. Combined proceeds of $30.3 million were used to pay bank debt. Together, these properties contributed approximately 725 bbl. of oil per day and 840,000 cu. ft. of gas to the company's third quarter 2004 production. • Mission Resources Corp., Houston, (Nasdaq: MSSN) has acquired additional working interests in Texas and Louisiana, in the Chocolate Bayou, Southwest Lake Boeuf, Backridge and West Lake Verret fields, for approximately $11 million. The reserves are approximately 6.4 billion cu. ft. of gas equivalent and net daily production volumes equal 2.3 million equivalent. The interests acquired almost double Mission's current ownership in the fields; Mission is also operator. • Arena Resources Inc., Tulsa, Okla., (Amex: ARD) plans to acquire West Texas properties for $10.6 million, comprised of $9.5 million cash and 150,000 restricted shares, valued at $7 per share, from an undisclosed party. The deal is the company's fifth Permian Basin acquisition in the past 18 months. Net production is 230 BOE per day. Arena will be the operator and have a 100% working interest and 75% net revenue interest. The properties are estimated to have 6.5 million BOE (91% oil) of proved reserves, net. • Seacor Holdings Inc., Houston, (NYSE: CKH) has purchased Era Aviation Inc., a subsidiary of Houston-based Rowan Cos. Inc. (NYSE: RDC) for approximately $118.1 million in cash. Era provides helicopter services in the Gulf of Mexico and Alaska. Rowan will use a portion of the proceeds to make a contribution to its defined benefit pension plan and pay a special dividend of 25 cents per share to shareholders. • Patterson-UTI Energy Inc., Snyder, Texas, (Nasdaq: PTEN) plans to acquire the U.S. land drilling assets of Midland, Texas-based Key Energy Services Inc. (NYSE: KEG) for $62 million in cash. The assets include 25 active land-based drilling rigs in the Permian Basin, San Juan Basin and Rocky Mountain regions, as well as 10 stacked rigs. • Blizzard Energy Inc., Calgary, (Toronto: BZZ) has acquired producing properties, related production facilities and undeveloped land from a senior Canadian company for C$63 million. The assets are producing approximately 1,300 BOE per day, 70% gas, and contain proved reserves of 10.3 billion cu. ft. of gas and 756,000 bbl. of oil and gas liquids. Blizzard will gain approximately 92,000 gross acres (65,000 net) of undeveloped land in the Grande Prairie area and another 180,000 acres (gross and net) of undeveloped land in the Sousa, Alberta, area. • Jefferies Capital Partners, New York, and certain members of the management of Baton Rouge, La.-based Edgen Corp., plan to acquire the latter for $124 million. Edgen is a provider of carbon and alloy pipe and components to the oil and gas industry. The seller is New York private equity firm Harvest Partners Inc. Harvest had provided capital to Edgen allowing it to broaden its offerings and make acquisitions. • Ivanhoe Energy Inc., Bakersfield, Calif., (Nasdaq: IVAN; Toronto: IE) has purchased its undisclosed partner's assets in the Knights Landing gas project near Sacramento, Calif., including an interest in 13 wells, associated gas-gathering facilities and a net 1.02 billion cu. ft. of proved, producing gas reserves. As a result of this acquisition, Ivanhoe's total net daily production from this project will be 1.9 million cu. ft. of gas per day, which is an increase of 130%. Ivanhoe will become operator with 100% working interest in eight wells and an 80% interest in five additional wells. Separately, Ivanhoe sold its interest in the Sledge Hamar project, also in California, in which it held a 40% working interest in one producing discovery well and an interest in 900 acres of surrounding leases. • Kerr-McGee Oil & Gas Corp., Oklahoma City, (NYSE: KMG) has executed an exchange agreement with BP (NYSE: BP) under which Kerr-McGee will acquire BP's 37.5% working interest in the Blind Faith discovery in the deepwater Gulf of Mexico plus additional cash consideration in exchange for Kerr-McGee's interests in various oil and gas assets in the Arkoma Basin of southeast Oklahoma. Blind Faith is in 7,000 feet of water some 175 miles southeast of New Orleans, on Mississippi Canyon blocks 695 and 696, having an estimated gross resource potential of more than 100 million BOE. ChevronTexaco operates Blind Faith with a 62.5% working interest. • Pacific Energy Resources Ltd., Long Beach, Calif., (Toronto Venture: PFE) has acquired PetroCal Inc., a privately held company with oil and gas operations in California, for 40 million common shares. Pacific Energy gains 75% interest in shared oil and gas leases in California, as well as a 100% interest in an additional oil and gas lease, also in California. This acquisition will add approximately 400 bbl. of oil per day in production. Pacific holds a 100% interest in net proved developed producing reserves of 2.4 million bbl., proved developed nonproducing reserves of 200,000 bbl. and proved undeveloped reserves of 8.7 million bbl. • New Orleans-based TDC Energy LLC and Superior Oil and Gas Co., Harvey, La., (NYSE: SPN) have canceled their agreement to merge. The companies are not discussing any extension or new agreement. • Baytex Energy Trust, Calgary, (Toronto: BTE) plans to acquire oil and gas interests in the West Stoddart area of northeast British Columbia for C$90 million in cash. Through this acquisition, Baytex will gain approximately 3,300 BOE per day in production from three properties near Fort St. John, British Columbia. Total remaining proved reserves are approximately 7.5 million BOE and proved-plus-probable reserves are 9 million BOE. The purchase also includes 17,000 net undeveloped acres. • Kinloch Resources Inc., Calgary, (Toronto: KTE) and privately held, Calgary-based Stylus Exploration Inc. will merge to create Stylus Energy Inc. Kinloch will issue 3.25 common shares for each Stylus common share held. Kinloch has daily production of approximately 780 BOE on 35,300 acres (17,500 net) of undeveloped land, while Stylus has average daily production of approximately 635 BOE on 145,919 acres (93,136 net) of undeveloped land. The merged company is expected to have production of approximately 1,350 BOE per day. Peters & Co. Ltd. advised Kinloch. • Chamaelo Energy Inc., Calgary, (Toronto: CLO) has acquired properties in the west-central and Peace River Arch areas of Alberta for approximately C$83 million from an undisclosed party. The properties produce approximately 2,200 BOE per day (50% gas), which increases Chamaelo's daily production to approximately 3,200 BOE. Proved reserves on the properties are estimated to be approximately 4.6 million BOE, while proved-plus-probable reserves are approximately 6 million.