By OGJ editors
HOUSTON, Nov. 6 -- Westport Resources Corp., Denver, agreed to buy South Texas oil and gas assets from private United Resources for $350 million, with closing expected in December 2003. The consideration is subject to price adjustments.
Westport estimated the proved reserves on the properties at Dec. 1, 2003, to be 211 bcfe, 97% natural gas and 60% proved developed. Westport identified more than 100 bcfe of probable and possible potential and 48,000 gross (25,000 net) acres in exploratory prospect inventory.
The transaction will add more than 200 potential exploitation drilling locations, said Westport Chairman, Donald Wolf. "In addition, we believe upside potential exists in numerous defined exploration prospects targeting the Wilcox, Lobo and Vicksburg trends."
Production is 78 MMcfed, and Westport expects to operate 86% of the net production.
Average lease operating cost is 50¢/Mcfe, and reserve to production ratio is 8 years based upon estimated 2003 production.
Westport will allocate $38 million to unproved properties, undeveloped acreage, seismic data, exploration projects, and other assets. The purchase price allocated to proved reserves will be $1.48/Mcfe.
