By OGJ editors
HOUSTON, June 4 -- Plains Exploration & Production Co. completed the acquisition of 3TEC Energy Corp. for more than $400 million. Both are Houston companies.
Plains Exploration was spun off from Plains Resources Inc., Houston, in late 2002 in a move to separate Plains Resources' upstream and downstream businesses. It operates in California, onshore in the Los Angeles basin and offshore in the Point Arguello Unit, and in the Illinois basin.
3TEC had oil and gas properties in East Texas and the Gulf Coast and Gulf of Mexico.
As of Dec. 31, 2002, Plains Exploration reported 253 million boe of reserves, and 3TEC reported 296 bcfe of proved reserves. 3TEC's reserves were 87% gas.
During 2002, 3TEC's production averaged 70.3 MMcfd of gas and 2,268 b/d of oil. The 2003 production outlook for the combined companies is 40,000 boed, 67% oil, Plains Exploration said.
One large asset is giant Inglewood field, in the Los Angeles basin, which has cumulative production of 420 million bbl of oil. Plains Exploration acquired the basin's first onshore 3D seismic survey over the field this year and believes it should be able to recover a further 100 million bbl using modern technology, said James C. Flores, chairman and CEO.
Plains Exploration told analysts in mid-May that it likely will direct 50% of its 2003 budget of $115-135 million to a combination of California onshore oil development and gas drilling in East Texas, where it is exploiting the Taylor member of Jurassic Cotton Valley sand in Glenwood and White Oak fields, Upshur and Gregg counties.
