Encana Oil acquires Tom Brown
Tom Brown Inc. has agreed to be acquired by Encana Oil and Gas Inc., but the ramifications of the deal for Moffat County are still unclear.
Tom Brown, a Denver-based oil and gas company, has been one of the more active oil and gas companies in Moffat County.
In 2003, the company applied for nine applications to drill from the Colorado Oil and Gas Conservation Commission. Companies must file an application to drill before drilling, but they don’t necessarily drill on every permit.
In 2004, Tom Brown didn’t file any applications to drill.
The company agreed to be acquired by Encana on April 15, and Encana made its first tender offer on April 21.
Representatives of both companies did not return repeated phone calls inquiring how the deal would affect Moffat County’s natural gas industry.
Moffat County has enjoyed a good relationship with Tom Brown, said Jeff Comstock, the county’s natural resources director.
“As people stop in, I inquire about them and I’ve heard nothing but good things about Tom Brown; nothing but positive things about how they work with landowners,” Comstock said.
The county has had no direct dealings with Encana, Comstock said.
However, Encana owns Entrega Gas Pipeline Inc., the company constructing a pipeline from Meeker to Cheyenne, Wyo., through Moffat County.
During community planning sessions, Entrega officials said no one should expect natural gas production along the pipeline route. Comstock said he would need a crystal ball to predict whether Encana’s acquisition of Tom Brown would mean increased natural gas production in Moffat County.
Encana is North America’s largest independent natural gas producer and gas storage operator with an enterprise value of approximately $25 billion, according to an Encana press releases.
Encana purchased Tom Brown for $48 per share of Tom Brown stock.
Tom Brown produces the majority of their natural gas and oil from wells in Colorado, Wyoming and Texas.
Rob Gebhart can be reached at 824-7031 or rgebhart@craigdailypress.com.

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