Coastal Buys Mitchell Properties in CO, UT
Coastal Oil & Gas Corp.-on behalf of Coastal Oil & Gas
USA LP - acquired properties in the Piceance Basin of Colorado and
the Uinta Basin of Utah from Mitchell Energy & Development
The properties include 24,000 net leasehold acres (developed and
undeveloped) with 36 wells and associated pipelines, gathering
systems and production facilities. They are in the Hell's Hole
Field in northwestern Colorado and Park Mountain Field in
northeastern Utah. Production is about 6 MMcf/d. A Coastal
spokesman declined to give information about reserves or price
"These properties add to our growing asset base in Piceance and
Uinta Basins and complement the acquisitions previously made in the
area," said Coastal CEO David A. Arledge.
In June, Coastal Corp. subsidiary Coastal Field Services Co.
announced the purchase of gathering systems and processing plants
in northeastern Utah. Last November, Coastal Oil & Gas
announced the purchase of upstream assets in northeastern Utah and
"With the sale of these properties, we have effectively exited
the mid-continent region," said Mitchell CEO George P. Mitchell.
"While sales proceeds initially will be used to pay down debt, we
ultimately expect to re-deploy these funds in our core areas where
we have an inventory of nearly 1,000 development wells and we can
achieve higher returns on shareholder equity."
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