Calpine completes $223 million sale of Rocky Mountain gas reserves

Calpine completes $223 million sale of Rocky Mountain gas reserves

SAN JOSE, Calif., September 2, 2004 (PR Newswire-First Call) — Calpine Corporation has completed the sale of its natural gas reserves in the Colorado Piceance Basin and New Mexico San Juan Basin for approximately $223 million. As previously announced, two U.S. gas companies acquired these assets for approximately $140 million and approximately $83 million, respectively, less adjustments to reflect a July 1, 2004 effective date.

Together, these assets represent approximately 120 billion cubic feet equivalent of proved gas reserves, producing approximately 16.3 million net cubic feet equivalent per day of gas. Net proceeds from these sales will be used to reduce the amount outstanding under Calpine’s existing $500 million first lien indebtedness. In conjunction with these sales, Calpine anticipates recognizing a pre-tax gain of approximately $100 million.

Calpine Corporation, celebrating its 20th year in power, is a North American power company dedicated to providing electric power to customers from clean, efficient, natural gas-fired and geothermal power plants. The company generates power at plants it owns or leases in 21 states in the United States, three provinces in Canada and in the United Kingdom. The company is listed on the S&P 500 and was named FORTUNE’s 2004 Most Admired Energy Company. The company was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN. For more information, visit


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