Calpine Acquires Sacramento Basin Gas Reserves
January 3, 2000 10:04 AM
SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 3, 2000--Calpine Corporation CPN , the San Jose, Calif.-based independent power company, today announced it has acquired 90 billion cubic feet (bcf) of proven, natural gas reserves from Vintage Petroleum, Inc. (Vintage) of Tulsa, Okla. for approximately $71.5 million. The transaction will make Calpine the largest natural gas producer in the Sacramento Basin.
"Vintage's long-life reserves will help lower fuel costs for Calpine's northern California natural gas-fired plants and will increase our competitive advantage in today's newly deregulated electric power industry," said Bill Berligen, Calpine senior vice president.
As a result of this acquisition, Calpine will add the remaining 58 percent interest in the Rio Vista Gas Unit and certain deep rights to its northern California gas portfolio. This new production will utilize Calpine's extensive Sacramento Basin gas pipeline system.
The Rio Vista field is located 50 miles northeast of San Francisco in the Sacramento Valley. The field was discovered in June 1936 and since then has proven to be one of the largest and most prolific gas fields in California. The Rio Vista field has produced approximately 3.1 trillion cubic feet of natural gas since it was discovered.
Calpine initially acquired a 42 percent interest in the Rio Vista Gas Unit in September 1999 through the Sheridan Energy acquisition. Combined, the Vintage reserves currently produce approximately 14.3 million cubic feet (mmcf) per day. With this acquisition in place, Calpine's daily production will be 43.3 mmcf per day in the Sacramento Basin--enough fuel to serve a modern, 250-megawatt combined-cycle power plant.
Based in San Jose, Calif., Calpine Corporation is a leading independent power company dedicated to providing customers with reliable and competitively priced electricity. Calpine currently has interests in approximately 10,800 megawatts of capacity in operation, under construction or in announced development in 15 states--enough energy to power nearly eleven million households. The company was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN. For more information about Calpine, please visit its website at www.calpine.com.
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