By the OGJ Online Staff
HOUSTON, Oct. 5 -- Nance Petroleum Corp., a subsidiary of St. Mary Land & Exploration Co., Denver, will pay Choctaw II Oil & Gas Ltd., Houston, $41 million for oil and gas properties in Montana, North Dakota, and Wyoming.
St. Mary plans to use an existing long-term revolving credit facility for the purchase. The deal is expected to close Dec. 1.
The properties are in the Williston basin of Montana and North Dakota and the Green River Basin in Wyoming. They produce 1,200 b/d of oil and 4.6 MMcfd of gas.
St. Mary said it has hedged 100% of the estimated production for calendar years 2002 and 2003 at an average NYMEX equivalent price of $24.78 and $22.65/bbl and $3.01 and $3.23/Mcf, respectively.