Finance. ENSERCH Exploration: Few Problems for the Next Few Years

✍ Scribed by Willett, Robart E.

• Book ID: 102844128
• Publisher: John Wiley and Sons
• Year: 2007
• Weight: 871 KB
• Volume: 4
• Category: Article
• ISSN: 0743-5665
• DOI: 10.1002/gas.3410040102

✦ Synopsis

NSERCH Exploration Partners (NYSE--EP) is a partnership started in April 1985, when EN-SERCH Corporation (NYSE--ENS) of Dallas formed the partnership and sold 15 percent of it to the public. ENSERCH still controls EP and operates all of its day-to-day activities through a subsidiary. For assets, ENSERCH gave EP nearly all of the parts of ENSERCH that explored for, developed and sold oil and gas.

ENSERCH kept only its gas plants, international properties, hard-mineral properties and its 3-percent working interest in the Sacroc oilfield, an oilfield that is in tertiary recovery. By retaining these assets, ENSERCH kept EP domestic and within traditional oil-and-gas assets. Additionally, said Crystal C. Bell, director of financial communications, "We could have had adverse tax consequences if we had put in the small Sacroc interests." Thus EP represents US. prospects and reserves.