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EXHIBIT 99.0
NEWS RELEASE CONTACT: 408/995-5115
PUBLIC RELATIONS: KATHERINE POTTER, X1168
INVESTOR RELATIONS: RICK BARRAZA, X1125
CALPINE ACQUIRES NATURAL GAS RESERVES
COMPANY ADDS 205 BCFE OF PROVEN NATURAL GAS
(SAN JOSE, CALIF.) 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.
The second transaction involves the acquisition of Calgary-based
Quintana Minerals Canada Corp., represented by Peters & Co. Limited, whose
reserves are located in British Columbia, Alberta and Saskatchewan Provinces in
Canada. The assets include interests in 1,300 wells, upside potential within
180,000 net acres of undeveloped lands, and an excellent staff of energy
professionals located in Calgary, Canada. Current production is approximately 38
mmcfe/d, increasing to 42 mmcfe/d by year-end.
In the third transaction, Calpine acquired natural gas assets in the
Piceance Basin, Colorado and onshore Gulf Coast from a privately-held Houston,
Texas-based company. The assets include 126 wells, 79,000 acres of undeveloped
lands, and 195 potential drilling locations with historical success rates of
over 90 percent. Current production is 10 mmcfe/d, increasing to 20 mmcfe/d by
year-end 2000.
Based in San Jose, Calif., Calpine Corporation is dedicated to providing
customers with reliable and competitively priced electricity. Calpine is focused
on clean, efficient combined-cycle, natural gas-fired generation and is the
nation's largest producer of renewable geothermal energy. Calpine has launched
the largest power development program in the U.S. To date, the company has a
combined interest in approximately 25,700 megawatts of base load capacity and an
additional 4,700 megawatts of peaking capacity in operation, under construction
and announced development in 27
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states and Alberta, Canada. The company was founded in 1984 and is publicly
traded on the New York Stock Exchange under the symbol CPN.
The matters discussed in this news release may be considered "forward
looking" statements within the meaning of Section 27A of the Securities and
Exchange Act of 1993, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Such statements include declarations regarding the intent,
belief or current expectations of the Company and its management. Prospective
investors are cautioned that any such forward-looking statements are not
guarantees of future performance and involve a number of risks and
uncertainties; actual results could differ materially from those indicated by
such forward-looking statements. Among the important factors that could cause
results to differ materially from those indicated by such forward-looking
statements are: (i) that the information is of a preliminary nature and may be
subject to further adjustments, (ii) risks associated with tender offers and
mergers, (iii) changes in government regulation, (iv) general operating risks,
(v) the dependence on third parties, (vi) the dependence on senior management,
(vii) the successful exploitation of an oil or gas resource that ultimately
depends upon the geology of the resource, the total amount and cost to develop
recoverable reserves, and operational factors relating to the extraction of
natural gas, and (viii) other risks identified from time to time in the
Company's reports and registration statements filed with the Securities and
Exchange Commission.
