Quest Oil agrees to buy Longleaf Production

Feb. 28, 2006
Quest Oil Corp. has signed a memorandum to acquire Longleaf Petroleum LLC, L-Texx Production LP, and L-Texx Management LLC of Arlington, Tex., for $6.5 million in stock and cash.

By OGJ editors
HOUSTON, Feb. 28 -- Quest Oil Corp. has signed a memorandum to acquire Longleaf Petroleum LLC, L-Texx Production LP, and L-Texx Management LLC of Arlington, Tex., for $6.5 million in stock and cash.

Longleaf owns 3,500 acres in Harrison County, 10 miles from Waskom, Tex., with 52 producing wells, 8 water disposal wells, and 47 idle wells, of which 38 could become producers. Production is about 200 boe/d net to Longleaf. The acquisition would include a 7.5 mile gas gathering line.

At closing, the acquisition would increase Quest's production to 450 boe/d.