Louis Dreyfus Natural Gas Corp. has agreed to acquire the oil and gas assets of Costilla Energy Inc. for $100 million. The properties are in South Texas, the West Texas Permian basin, and Southeast New Mexico.
Louis Dreyfus Pres. and CEO Mark Monroe commented, "This purchase, which we will fund with borrowing from our credit facility, fulfills all our key acquisition criteria. It is predominantly natural gas, located in our core operating regions, and provides us with future drilling opportunities."
In September 1999, Costilla filed Chapter 11 request for reorganization. The proposed acquisition will be subject to approval by the bankruptcy court and to other regulatory conditions.
Closing is expected by the end of June 2000.