Nuevo Nabs Some CA Assets From Texaco
Nuevo Energy, a Houston, TX-based exploration and production
company, bolstered its California position Tuesday by paying Texaco
$61 million for interests in six oil and gas fields. Including
these acquisitions, 87% of Nuevo's total reserves and production
will be based in California.
"One of Nuevo's goals for 1999 is to take advantage of the
current industry cycle by buying producing properties in our core
areas," said Doug Foshee, Nuevo CEO. "In addition to increasing our
reserve base and production, the acquisitions will enable Nuevo to
reduce operating expenses per Boe produced and realize immediate
positive cash flow. We also expect to realize upside through
additional recompletions and operating efficiencies; by
transferring technologies such as multiple completions, horizontal
drilling and waterflooding; and through exploratory drilling."
All of the newly acquired reserves are part or near existing
Nuevo producing regions onshore Kern County and offshore Ventura
County. The purchase expands Nuevo's acreage in the Cymric field,
the company's largest asset, increases its interest in the East
Coalinga, Dos Cuadras, Pitas Point and Monumant Junction fields,
and adds the Buena Vista Field to Nuevo's list of assets. Once
closed, the deal will increase Nuevo's production to 52,000 Boe/d
from 47,000 Boe/d.
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