Houston Exploration buying shallow-water Gulf of Mexico assets

The Houston Exploration Co. announced plans to buy shallow-water Gulf of Mexico assets from the privately owned Transworld Exploration & Production Inc., Houston, for $155 million.

Sept. 15, 2003

By OGJ editors
HOUSTON, Sept. 15 -- The Houston Exploration Co. announced plans to buy shallow-water Gulf of Mexico assets from the privately owned Transworld Exploration & Production Inc., Houston, for $155 million.

The transaction has an effective date of July 1, and is expected to close on Oct. 15.

The properties, which are 75% natural gas, have proven reserves of 92 bcf equivalent. Current production from 11 fields is 35 MMcfd equivalent, net.

The acquired assets include 86,237 gross acres from 21 blocks. Houston Exploration will operate 97% of the proved reserves.

Robert B. Catell, Houston Exploration chairman, said of the transaction, "In addition to being accretive to the company's earnings and cash flow per share, it adds high-quality reserves to our drilling inventory."

"We see a lot of upside to these properties," said William G. Hargett, Houston Exploration president and CEO. "Current plans include allocating $40 million to $50 million of our 2004 capital to these fields."