The transaction is expected to close next month.
PEC Minerals L.P. is owned by a group consisting of Jetta Operating Company, Trevor Rees-Jones and Providence Energy Corp.
SEPCO's assets include ownership of mineral rights over 570,000 net acres and executive rights to more than 190,000 net acres in 31 states. In addition to holding interests in third-party natural gas and oil wells, the company also owns 6,000 surface acres in five states.
"We are very pleased with the strong market interest in SEPCO's multi-faceted energy assets, including mineral rights, oil and natural gas wells and property," said Michael R. Niggli, president of Sempra Generation. "We achieved our objective of deriving significant value from these assets."
The cash proceeds from the sale will be used to help fund Sempra Energy's other capital projects, such as liquefied natural gas receipt terminals, new interstate natural gas transmission pipelines and natural gas storage facilities.
In 1998, SEPCO's parent company, Pacific Enterprises, merged with Enova Corporation to form Sempra Energy. Since the merger, SEPCO has been operating as a subsidiary of Sempra Generation. SEPCO's offices are in Dallas.
Petrie Parkman & Co., a private energy investment-banking firm, acted as financial advisor to Sempra Energy in this transaction.
Sempra Generation is the Sempra Energy subsidiary that operates and maintains power plants for the competitive market. Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2005 revenues of $11.7 billion. The Sempra Energy companies' 14,000 employees serve more than 29 million consumers in the United States, Europe, Canada, Mexico, South America and Asia.
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