Nuevo Energy, a Houston, TX-based exploration and productioncompany, bolstered its California position Tuesday by paying Texaco$61 million for interests in six oil and gas fields. Includingthese acquisitions, 87% of Nuevo’s total reserves and productionwill be based in California.

“One of Nuevo’s goals for 1999 is to take advantage of thecurrent industry cycle by buying producing properties in our coreareas,” said Doug Foshee, Nuevo CEO. “In addition to increasing ourreserve base and production, the acquisitions will enable Nuevo toreduce operating expenses per Boe produced and realize immediatepositive cash flow. We also expect to realize upside throughadditional recompletions and operating efficiencies; bytransferring technologies such as multiple completions, horizontaldrilling and waterflooding; and through exploratory drilling.”

All of the newly acquired reserves are part or near existingNuevo producing regions onshore Kern County and offshore VenturaCounty. The purchase expands Nuevo’s acreage in the Cymric field,the company’s largest asset, increases its interest in the EastCoalinga, Dos Cuadras, Pitas Point and Monumant Junction fields,and adds the Buena Vista Field to Nuevo’s list of assets. Onceclosed, the deal will increase Nuevo’s production to 52,000 Boe/dfrom 47,000 Boe/d.

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