El Paso hikes stake in drilling venture

By OGJ editors

HOUSTON, Mar. 28 -- El Paso Corp. has acquired the interest held by a unit of Lehman Bros. in a joint drilling venture that the companies, along with Nabors Industries Ltd., formed in October 2003. El Paso paid Lehman $62.5 million.

The acquisition involves various oil and natural gas properties in the Gulf of Mexico, South Texas, and the Ark-La-Tex regions. El Paso Production Co. already operates all 86 wells involved in the acquisition.

The Nabors interest in the venture was unaffected. El Paso estimates proved reserves associated with the acquired properties to be 14.6 bcfe, 73% of it gas.