Clearly, buyers and sellers were better able to see eye to eye in the last few weeks of 2003 than during the rest of the year. News of deal agreements and closings across North America reversed from sluggish during most of the year to full speed. Some of the activity was the result of producers' pursuit of year-end reserve replacement, heating the acquisitions and divestitures marketplace. (For more on buying reserves, see "Buying to Grow" in this issue.) Transaction-advisory firms were reporting a busy season, and they hoped the market would remain active through 2004. Following are just some of the U.S. deals from the fourth quarter: • Floyd Wilson has found a vehicle for bulking up his new Petrohawk Energy LLC. Wilson, whose 3Tec Energy was started as a private firm that bought out an existing public company and eventually became 3Tec, which was sold in June, will gain control of publicly held Beta Oil & Gas, which has been struggling to profitably grow. Mitchell Energy Advisors is financial advisor to Petrohawk. • Jim Flores, a founder of Ocean Energy and now a major shareholder in Plains E&P and in Plains Resources, has bid to take over Plains Resources. Partners in the bid are Vulcan Capital and John Raymond, Plains E&P and Plains Resources president. Petrie Parkman & Co. is advising Plains Resources. • Newly private Exco Resources plans to purchase North Coast Energy, which had been on the market during most of 2003. Robert W. Baird & Co. advised North Coast. • Quest Resource Corp. plans to acquire Devon Energy's Cherokee Basin assets, making Quest the largest operator in the basin. Energy Capital Solutions was financial advisor to Quest. • Range Resources plans to buy properties in Conger Field in West Texas, making it the largest operator in the field. • Forest Oil, Westport Resources, Chesapeake Energy, Legend Natural Gas and Whittier Energy each made significant South Texas purchases. • Toreador Resources let go of its U.S. mineral and royalty assets to an undisclosed buyer. • Privately held Medicine Bow Energy finished its purchase of Ensign Oil & Gas. Rivington Capital Advisors was financial advisor to Medicine Bow. • Vintage Petroleum took El Paso's Uinta Basin, Utah, properties. • Five States Energy acquired producing royalty interests in the San Juan Basin from Pulte Homes. Wells Fargo Energy Advisors represented Pulte. • Harken Energy got the sale of most of its Texas Panhandle properties done, after the first buyer backed out. Petrie Parkman & Co. advised Harken. • Contango Oil & Gas and Republic Exploration divested some Gulf of Mexico assets. • Edge Petroleum closed its merger with Miller Exploration. • Private investor Evercore Capital Partners sold its interest in Energy Partners Ltd. • Westar Energy sold the rest of its interest in Oneok Inc. Will there be enough business in 2004 to satiate the dozens of E&P transaction-advisory firms, many of them formed just this past year? Is there room for so many firms? "There can't be," says Geoff Roberts, a former transaction-advisory firm owner who is launching a new E&P company. The firms fall into four categories, Roberts says: • The well-established companies, which will continue to do well in most any market. They have good reputations and good track records and they provide a good service. • Dot-com-era entrants that "just haven't given up yet or have tried to morph themselves into something more acceptable and are still plugged in because of their tenacity or the deep pockets of their primary financing source." • The investment bankers and commercial bankers. • And, the start-ups. "The dot-comers are eventually going to fade. The commercial banks seem to come and go regularly, and I think they're going to continue to come and go. The well-established firms are here to stay unless sold or merged. And the new guys are going to be like any start-ups-a percentage will make it and a larger percentage won't." No matter the deal volume in 2004, there is a certain promise that the A&D market will continue to be an interesting place. Happy new year, and viva reserves! -Nissa Darbonne, Managing Editor