Oneok buying $240 million in Texas oil and gas properties

Oneok Inc., Tulsa, said wholly owned subsidiary, Oneok Energy Resources Co., agreed to acquire $240 million of East Texas natural gas and oil properties and related gathering systems from Wagner & Brown Ltd. of Midland, Tex.

Oct. 30, 2003

By OGJ editors
HOUSTON, Oct. 30 -- Oneok Inc., Tulsa, said wholly owned subsidiary, Oneok Energy Resources Co., agreed to acquire $240 million of East Texas natural gas and oil properties and related gathering systems from Wagner & Brown Ltd. of Midland, Tex.

Oneok will acquire 177.2 bcfe of proved gas reserves, with additional probable and possible reserve potential. Current net gas production from these properties is approximately 26 MMcfed. The acquisition is expected to close before Dec. 31.

"Earlier this year, Oneok closed on the sale of a portion of its producing properties, but stated that its long-term strategy includes owning and controlling reserves," said David Kyle, Oneok chairman, president, and CEO.

He referred to Chesapeake Energy Corp., Oklahoma City, agreed to acquire US Midcontinent gas assets for $300 million (OGJ, Dec. 23, 2002, p. 32).