Westport Resources closes on acquisition of southeast Texas properties
Westport Resources Corp. of Denver said it has closed the $120 million acquisition of southeast Texas oil and gas properties from Smith Production Inc., Houston.
By OGJ editors
HOUSTON, Oct. 1 -- Westport Resources Corp. of Denver said it has closed the $120 million acquisition of southeast Texas oil and gas properties from Smith Production Inc., Houston. The properties, which hold an estimated 76 bcfe of proved reserves—82% of which is natural gas—are in Liberty, Hardin, and Jasper counties.
Westport said that it will serve as operator of the bulk of the properties, which include 10,000 net undeveloped acres. The acquisition also included interest in 300 sq miles of 3D seismic data.
In August, the acquired properties produced about 29 MMcfed net to the interests. Through the second quarter of this year, Westport's average production was 354 MMcfed, it said.
"We believe this transaction allows Westport to assume an operating position in a prolific area yielding significant exploration and exploitation success," said Donald Wolf, chairman and CEO. "We expect ongoing 3D seismic processing and interpretation to identify additional opportunities to increase production and reserves," he said, adding, "Currently, we have 1 rig drilling in the area and expect to drill up to 10 exploratory prospects over the next 12-24 months."