Union Pacific Resources Group (UPR) continues to march aheadwith its de-leveraging program, announcing last week that it agreedto sell interests in certain South Texas oil and gas properties toCollins &amp Ware Inc. for $148 million. The sale is scheduled toclose Oct. 30, subject to conditions, with an effective date ofSept. 1.

“When we announced our de-leveraging program in April, after ouracquisition of Norcen Energy Resources and its many high-qualityexploration and production assets, we assembled several packages ofUPR properties that would both attract strong bids and help us tofocus activities on our newly defined, high-potential core businessareas,” said CEO Jack Messman (See NGI April 6, 1998). “Theagreement to sell these South Texas properties is the latestexample of a successful de-leveraging strategy that is unfolding onor ahead of schedule.”

The agreement with Collins &amp Ware follows the Aug. 24announcement of the $158 million sale of UPR’s interest inMatagorda Block 623 to Enron Oil and Gas, which closed Aug. 31 (SeeNGI Aug. 31, 1998). The company’s asset sales program is continuingfor properties in Canada, the Gulf of Mexico, South Louisiana, EastTexas and the Rockies identified as part of the de-leveragingprogram.

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