Prize buys Apache properties for $65 million

Prize Energy Corp., Grapevine, Tex., has agreed to buy US oil and gas properties from Apache Corp., Houston, for $65 million.

The sale is effective Jan. 1, 2001, and will close on or before Feb. 28.

It said 59% of the properties are in the Permian Basin of East Texas, 15% are onshore Gulf Coast area of South Texas and Louisiana, and 26% in the Mid-Continent area of Western Oklahoma and the Texas Panhandle.

Prize said the Apache assets have proved reserves of 8.5 million bbl of oil and 23.6 billion cu ft of gas. Production is 1,900 b/d and 6.5 MMcfgd.

Philip Smith, Prize chairman and CEO, said, "The acquisition of the Apache properties continues Prize's acquisition strategy of specializing in acquisitions that complement the company's existing asset base and that offer excellent opportunities to enhance oil and gas production through exploitation activities.

"As part of our acquisition strategy, over the next 12 months, the company intends to divest $25 to $35 million of non-strategic oil and gas properties from our existing asset base and this recent acquisition."

Lon Kile, president and COO, said, "We are very excited about what the Apache acquisition brings to the table in development opportunities for Prize, specifically Hugh Fitzsimons field in South Texas. The company believes the unbooked oil and gas reserves associated with this property offers significant gas development potential which will be exploited over the next 2 years."