Calpine Acquires Natural Gas Reserves; Company Adds 205 bcfe of Proven Natural Gas
SAN JOSE, Calif.--(BUSINESS WIRE)--July 25, 2000--Calpine Corporation (NYSE:CPN), the San Jose, Calif.-based independent power company, today announced three strategic acquisitions that add 205 billion cubic feet equivalent (bcfe) of proven, natural gas reserves to Calpine's natural gas portfolio. These acquisitions increase Calpine's proved reserves to 430 bcfe -- with current total production of approximately 130 million cubic feet equivalent per day (mmcfe/d), increasing to 150 mmcfe/d by year-end 2000. At full production, these reserves can fuel 800 to 900 megawatts of combined-cycle, gas-fired power generation. Calpine acquired these gas assets for approximately 206 million.
"This is an important step for Calpine as we continue to advance our 40,000-megawatt power generation program," stated Charles Chambers, Calpine vice president of business development. "In addition to enhancing our in-depth fuels capabilities, these acquisitions provide Calpine access to three strategic gas markets and strengthen our position as a premier power provider."
The first transaction comprises three fields in the Gulf of Mexico and includes 5 drilling locations enhanced with 3-D seismic, one of which has already been successfully drilled. Current production is approximately 17 mmcfe/d, increasing to 23 mmcfe/d by year-end 2000. |
