By the OGJ Online Staff
HOUSTON, Mar. 8�Cross Timbers Oil Co., Fort Worth, Tex., reported Thursday an 11% increase in its proved oil and gas reserves to a record 2.25 tcf of natural gas equivalent at the end of 2000.
Company officials said they expect to increase those reserves to 3 tcfe by the end of 2002. In recent years, Cross Timbers has been among the five independents with the largest natural gas reserves in the US.
The latest increase, based on an outside survey by independent petroleum engineers, does not include some 240 bcfe of reserves that Cross Timbers purchased for $167 million this year, primarily in East Texas. In addition to its previously announced $115 million acquisition of gas producing properties from Herd Producing Co., Cross Timbers recently bought $52 million of additional gas properties, located mostly in the Freestone trend of East Texas.
That would bring its pro forma year-end reserves to 2.5 tcfe, company officials said.
Last year Cross Timbers added 491 bcfe of gas reserves, replacing 300% of its production, at an average cost of 41�/Mcfe, the company reported.
The firm�s natural gas reserves increased 14% during the year to 1.77 tcf. That, combined with 22 million bbl of natural gas liquids, accounted for 84% of Cross Timbers� total reserves.
Its oil reserves were down 5% to 58.4 million bbl at the end of the year because of property sales.