El Paso to acquire more South Texas production

By OGJ editors
HOUSTON, Nov. 10 -- El Paso Corp.'s wholly owned subsidiary El Paso Exploration & Production Co. agreed to acquire producing properties and undeveloped acreage in Zapata County, Tex., for $255 million.

El Paso E&P agreed to acquire Laredo Energy III LP, operator and majority owner of the properties, and separate working interests in some other properties. The acquisitions are expected to close in January 2007 and will mark El Paso's return to the Lobo trend.

The assets being acquired have current net production of 19 MMcfd of gas equivalent. El Paso estimates proved reserves to be 84 bcf, and 73% of that is undeveloped. The 27,000 gross acres to be acquired are near El Paso's existing operations in Bob West field in Zapata County.