• Ipsco Inc., Lisle, Ill., (NYSE, Toronto: IPS) plans to acquire NS Group Inc., Newport, Ky., (NYSE: NSS) for $66 a share in a deal valued at approximately $1.5 billion. Combined annual revenues will be more than $4 billion.

Ipsco and NS Group both produce tubular products for the energy sector, and the transaction broadens Ipsco's portfolio by adding seamless pipe and oilfield services provided by Ultra, which NS Group recently acquired. Ipsco will fund the deal with cash and credit-facility debt. The transaction is expected to close by year-end.

Banc of America Securities LLC is financial advisor to Ipsco. Raymond James & Associates Inc. is financial advisor to NS Group.



• A subsidiary of Statoil ASA, Stavanger, Norway, (NYSE: STO) plans to acquire assets in the Gulf of Mexico from Plains Exploration & Production Co., Houston, (NYSE: PXP) for US$700 million.

The assets are in the Greater Tahiti area and include a 12.5% working interest in the Chevron-operated Big Foot discovery, a 17.5% working interest in the Shell-operated Caesar discovery and a 12.5% working interest in the Big Foot North prospect comprised of four deepwater lease blocks (Green Canyon blocks 683 and 952 and Walker Ridge blocks 28 and 29).

Plains has also granted Statoil negotiation rights on future sales of other Plains Gulf assets.

Proceeds will be used to complete the balance of a $400-million stock buyback program and for debt reduction. The agreement allows Plains to accelerate early-stage development of its remaining prospects in the Miocene trend in the deepwater Gulf.

The deal is expected to close in early November. Lehman Brothers Inc., J.P. Morgan and Harrison Lovegrove LP were advisors to Plains.



• Foothills Resources Inc., Bakersfield, Calif., (OTCBB: FTRS) has acquired four fields in southeastern Texas from TARH E&P Holdings LP, an affiliate of privately held Texas American Resources Co., Austin, Texas, for $57.5 million in cash and $4.5 million of Foothills stock for a total transaction value of $62 million.

Foothills gains working interests of 95% to 100% in the four fields in Harris, Liberty and Hardin counties that contain approximately 4,000 gross acres of leasehold or fee interests. Foothills will operate the four fields.



• The Meridian Resource Corp., Houston, (NYSE: TMR) has acquired all of the offshore Texas assets of Vintage Petroleum, now a subsidiary of Occidental Petroleum Corp., Los Angeles, (NYSE: OXY) for $14 million in cash and 2 million Meridian shares at $3.49 each for a total transaction valued at $21 million.

The properties are in state and federal waters and on the Texas Gulf Coast and include High Island 55 in Jefferson County; Panther Reef in Calhoun County; Umbrella Point in Chambers County; Indian Point in Nueces and San Patricio counties; Mustang Island 860 and 771, Trinity Bay ST 25, Brazos 388/400, Matagorda Island 639/640 and High Island 65.

Production is 4.8 million cu. ft. of gas equivalent per day and total proved reserves are approximately 2.5 billion equivalent. Probable, possible and risked reserves are approximately 34.9 billion equivalent. Meridian plans to begin operations during late 2006 or early 2007.



• Whiting Petroleum Corp., Denver, (NYSE: WLL) has acquired a 15% working interest in approximately 170,000 leased acres in the central Utah Hingeline play from Denver-based Armstrong Oil & Gas for an undisclosed amount.

The acreage is on the same trend as the Covenant Field, one of the largest oil discoveries in the Rockies in recent years. The seller retained a 20% working interest; a third party owns 65% and will be operator of the majority of the acreage. Drilling the first of three planned wells is expected to begin in the fourth quarter.

Whiting president and chief executive Jim Volker says, "This acreage acquisition and the carried working interest in the initial three wells provides Whiting exposure to an exploration play that we believe holds large reserve potential."



• American Oil and Gas Inc., Denver, (Amex: AEZ) has acquired an additional 25% working interest in the Fetter project in Wyoming from Oklahoma City-based SunStone Oil and Gas LLC for approximately $13.1 million in stock.

American issued 2.05 million shares valued at approximately $6.40 each to SunStone, which transferred the shares to certain funds managed by New York-based BlackRock Inc., which has increased its stake in American.

American's interest in the project has increased from 67.5% to 92.5%, gaining approximately 13,300 net undeveloped acres and 320 net developed acres, including a 50% working interest in the Sims 16-26 well, a 25% working interest in the Hageman 16-34 well and a 25% working interest in the currently drilling State 4-36-H well.



• Privately held Phoenix Exploration Co. LP, Houston, plans to acquire all of the Gulf of Mexico and South Louisiana assets of Cabot Oil & Gas Corp., Houston, (NYSE: COG) and an affiliate for $340 million.

The purchase includes 240,000 gross acres (187,000 net) with interests in 22 fields onshore and in state waters, and 34 offshore leases on the Gulf shelf. Production is 52 million cu. ft. of gas equivalent per day, 65% operated.

Total proved reserves are 98 billion cu. ft. of gas equivalent (70% gas), with proved-plus-probable reserves of 135 billion equivalent.

The deal is expected to close in late September. Phoenix will use equity and credit-facility debt to finance the deal. The company was started in April with backing from Carlyle Group and Riverstone Holdings, and recently investor George Soros placed $100 million in Phoenix.

Cabot plans to use the funds to purchase shares, fund operations and pay debt. Goldman, Sachs & Co. is financial advisor to Cabot.



• Comstock Resources Inc., Frisco, Texas, (NYSE: CRK) plans to purchase 2.3 million shares of Bois d'Arc Energy Inc., Houston, (NYSE: BDE) for $15.94 per share in a deal with a total value of $35.9 million.

Bois d'Arc will use the proceeds to fund a $19.2-million property acquisition and to provide capital for Bois d'Arc's ongoing exploration program. Comstock will own 32.2 million Bois d'Arc shares, or 49.4% of outstanding, after closing.



• Swift Energy Co., Houston, (NYSE: SFY) plans to acquire majority working interests in five primarily onshore South Louisiana properties from BP America Production Co. for $175 million in cash and debt.

The assets include the Bayou Sale, Horseshoe Bayou and Jeanerette fields, all in St. Mary Parish, High Island Field in Cameron Parish and Bayou Penchant Field in Terrebonne Parish. The fields are all near Swift Energy's Cote Blanche Island Field and have total production of 12 million cu. ft. of gas equivalent per day. Proved reserves are approximately 58.2 billion cu. ft. of gas equivalent (67% developed) and probable reserves of 28.1 billion equivalent.

Swift Energy estimates the five fields will increase its fourth-quarter production to 1 billion cu. ft. equivalent if no preferential rights are exercised. This acquisition is expected to close by the end of October.



• Comstock Resources Inc., Frisco, Texas, (NYSE: CRK) plans to acquire certain properties from several private companies, including Houston-based Denali Oil & Gas Partners LP and Texas-based Stalker Energy LP, for $67.2 million.

The assets include three producing wells in the Las Hermanitas Field in Duval County, South Texas. Production is approximately 6.4 million cu. ft. of gas per day. Proved reserves are estimated at 20.2 billion cu. ft. of gas (43% proved developed) with additional probable reserves of 14.7 billion cu. ft. in eight locations and possible reserves of 8 billion cu. ft. in six locations.

The deal was expected to close in September and to be funded with credit-facility debt.

• Delta Petroleum Corp., Denver, (Nasdaq: DPTR) has sold its properties in the Appalachian and East Texas basins to an undisclosed buyer for approximately $31.3 million. The assets are producing approximately 2 million cu. ft. of gas equivalent per day. Delta plans to focus activities in operated core areas and is exploring the possible sale of other nonoperated or noncore fields.



• Texas-based West Coast Energy Properties LP, an affiliate of Clayton Williams Energy Inc., Midland, Texas, (Nasdaq: CWEI) and GE Energy Financial Services, Stamford, Conn., has acquired certain producing assets in California and Texas for $58 million.

The assets have estimated proved reserves of 4.9 million bbl. of oil and gas liquids and 3.7 billion cu. ft. of gas, of which more than 60% is proved developed producing reserves. Approximately 75% of the reserves are in three fields in southern California and the remaining 25% are in Mitchell County, Texas.

Clayton Williams Energy financed its portion through its existing revolving credit facility with JPMorgan and various other participating banks.



• Whiting Petroleum Corp., Denver, (NYSE: WLL) has acquired assets in Michigan from a private company for $26 million.

The assets are primarily in the Niagaran and Prairie du Chien formations and include 65 producing properties, a gathering line, gas-processing plant and 30,437 net acres of leasehold held by production.

Current net production is 355 bbl. of oil and gas liquids and 1.7 million cu. ft. of gas per day, with proved reserves of 1.4 million BOE, composed of 702,000 bbl. of oil and gas liquids and 4.2 billion cu. ft. of gas. Whiting will operate 85% of the acquired properties.

The purchase was funded from a bank credit facility. Whiting president and chief executive Jim Volker says, "This acquisition strengthens our proved reserves in the company's existing Michigan Basin core area."



• Basic Energy Services Inc., Midland, Texas, (NYSE: BAS) has acquired Chaparral Services Inc., Eunice, N.M., and substantially all of the operating assets of Reddline Services LLC, Garber, Okla., for approximately $20 million in cash, net of working capital.

Chaparral provides well-servicing and fluid services in southeastern New Mexico. Basic has acquired four well-servicing rigs, 28 fluid-services trucks, two brine wells and one saltwater-disposal well. The acquired operations have been integrated into Basic's northern Permian region and increase its well-servicing fleet to 356 rigs.

Reddline provides rental and fishing tools in northwestern Oklahoma. Basic integrated the operations into its rental- and fishing-tool division, increasing its coverage of western Oklahoma.



• Provident Energy Trust, Calgary, (Toronto: PVE-UN; NYSE: PVX) has acquired gas-producing assets in the Rainbow and Peace River Arch areas of northwestern Alberta for approximately C$476 million.

The assets include more than 280,000 net acres (some 80,000 undeveloped) in shallow reservoirs located in the Rainbow, Haro, Boyer and Rainbow South areas, and from multiple productive zones in the Pouce Coupe and Gordondale areas in the Peace River Arch, with 97% operatorship and an average 75% working interest.

The acquisition adds daily production of approximately 5,500 BOE (90% gas), and more than 200 identified drilling locations. Proved-plus-probable reserves are 22.2 million BOE. Provident anticipates its production ratio will now be 50% gas.

The acquisition was partially financed by an offering of approximately C$226 million of units and from bank credit facilities.



• Talisman Energy Inc., Calgary, (Toronto, NYSE: TLM) has acquired a major gas play in the Western Canadian Sedimentary Basin for approximately C$230 million.

The assets are along the Outer Foothills trend of the Rockies, east of and parallel to Talisman's existing Foothills play in both Alberta and British Columbia. Talisman acquired the land through government and third-party deals, gaining more than 260,000 acres (410 sections), mostly 100% working interest.

Talisman has identified more than 100 drilling locations to date and estimates prospective natural gas resources of between 1- and 2 trillion cu. ft., with potential production of 200 million cu. ft. per day. Four wells have been drilled. The first, Chinook 16-14-65-13W6M, tested approximately 6 million cu. ft. of gas per day from three intervals within the Nikanassin formation.



• Kereco Energy Ltd., Calgary, (Toronto: KCO) and Chamaelo Exploration Ltd., Calgary, (Toronto: CXN) plan to merge in a deal valued at US$305.5 million (C$332 million).

Chamaelo shareholders will receive 0.51 Kereco share per Chamaelo share, with the Kereco shares valued as C$11.79 each.

The Chamaelo assets include 130,000 net acres of undeveloped land in west-central Alberta, adding production of approximately 4,600 BOE per day (50% oil). Proved-plus-probable reserves are 14 million BOE (47% oil).

Pro forma the acquisition, Kereco will have a reserve base of 57% oil, with production of 10,500 BOE per day (49% gas) and an undeveloped land base exceeding 220,000 net acres.

Tristone Capital Inc. is financial advisor to Kereco and Orion Securities Inc. is financial advisor to Chamaelo. GMP Securities LP is special advisor to Kereco and Chamaelo and Sprott Securities Inc. is strategic advisor to Chamaelo.



• Harvest Energy Trust, Calgary, (Toronto: HTE-UN; NYSE: HTE) has acquired privately held Birchill Energy Ltd., Calgary, for approximately C$440 million.

Birchill's assets are primarily in central Alberta in the Willesden Green, Ferrier and Sylvan Lake areas and in the Peace River Arch. Current production is approximately 6,300 BOE per day (65% gas) and proved-plus-probable reserves are 22.6 million BOE, with 57% of production and 76% of reserves in central Alberta.

The properties increase Harvest's land-holdings to 800,000 net undeveloped acres and will raise estimated 2006 exit production to 66,000 bbl. of oil per day (70% oil). The transaction was financed from existing bank credit facilities with a syndicate of Canadian underwriters led by CIBC World Markets Inc.

Tristone Capital Inc. was financial advisor to Birchhill.



• NAV Energy Trust, Calgary, (Toronto: NVG.UN) and Clear Energy Inc., Calgary, (Toronto: CEN) have merged and formed Sound Energy Trust (Toronto: SND.UN) and E&P company Sure Energy Inc. (Toronto: SHR) with a total market value of approximately C$473 million.

The companies expect the merger will create a high-working-interest, gas-leveraged energy trust with extensive drillable locations and holding an undeveloped land base.

The trust has approximately 194,000 undeveloped hectares in Alberta and estimated production of about 12,500 BOE per day, comprised of 4,650 bbl. of oil and gas liquids and 47 million cu. ft. of gas.

The companies plan to expand into a multi-zone potential in central Alberta and the Peace River Arch and the addition of adjoining lands in the Mannville and Horseshoe Canyon coalbed-methane development at Nevis.



• CanWest Petroleum Corp., Calgary, (OTCBB: CWPC) has merged with its privately held subsidiary, Oilsands Quest Inc., Calgary, for a combined market capitalization of approximately US$1.3 billion.

CanWest previously owned approximately 60% of Oil Sands, and bought out the minority shareholders for 8.23 shares of CanWest per share of Oilsands.

A total 76.5 million CanWest shares were issued at approximately C$4.87 each for a total deal value of C$372.6 million.

Oilsands owns 100% of exploration permits covering 508,000 net acres in northwest Saskatchewan and assets in the Athabasca region in Alberta.

CanWest executive chairman T. Murray Wilson says, "This is a pivotal step in the reorganization of CanWest Petroleum. The combined team is looking forward to capitalizing on the many strengths of both companies."

TD Securities Inc. was financial advisor to CanWest Petroleum, and CIBC World Markets Inc. was financial advisor to Oilsands.



• Savanna Energy Services Corp., Calgary (Toronto: SVY) and Western Lakota Energy Services Inc., Calgary, (Toronto: WLE) have merged to form a North American oilfield-services company with an enterprise value of C$1.5 billion.

Western shareholders received 0.64 Savanna share per Western share, with Savanna issuing a total 27.86 million shares valued at approximately C$670 million. Savanna shareholders own approximately 51.5% of the combined entity that now operates as Savanna Energy Services Corp.

Western chairman and chief executive Elson McDougald is chairman, and Savanna president and chief executive Ken Mullen is president and CEO of the merged company.

The company has a full-service drilling capability from shallow to deeper drilling capabilities, and 79 conventional and hybrid drilling rigs, 35 wireline units, 22 well-servicing rigs and five coil-service rigs.

Peters & Co. Ltd. was financial advisor to Western and RBC Capital Markets and FirstEnergy Capital Corp. were financial advisors to Savanna.



• Norsk Hydro ASA, Olso, Norway, (NYSE: NHY) has acquired a 50% interest in the Chinook heavy-oil discovery offshore Brazil from EnCana Corp., Calgary, (Toronto, NYSE: ECA) for approximately US$350 million. The interest is in Block BM-C-7 in the Campos Basin.

EnCana and partner Kerr McGee Corp. (now part of Anadarko Petroleum Corp.) have drilled four appraisal wells about 75 kilometers offshore Brazil. Production from the 3-ENC-3-RJS was up to 1,800 bbl. of oil per day.

EnCana chief operating officer Randy Eresman says, "EnCana will continue to hold extensive interests in eight deepwater exploration blocks offshore Brazil and is committed to evaluating those blocks with our partners. Additionally, our company and partners were recently successful in Brazil's ANP Round 7 and we are in the process of being awarded two additional blocks in the Potiguar Basin."