Castle Energy Corp. of Radnor, PA, will pick up about 27.5 Bcfeof proved reserves, about 55% gas, when it completes the purchaseof essentially all of AmBrit’s oil and gas properties for about $22million.
Castle is looking to make at least three more acquisitions thesize of the AmBrit deal “as soon as possible” and is looking in theLower 48 states, according to Joseph L. Castle II. The companyessentially liquidated its reserves position in May 1997 with thesale of an East Texas property to Union Pacific Resources. Withprices down and rates of return up, Castle sees this as the time tobuy. The AmBrit assets include producing properties in Alabama,Louisiana, Mississippi, Montana, New Mexico, Oklahoma and Texas aswell as un-drilled acreage in several of these states. The majorityof the reserves are in South Texas. The deal brings Castle’sreserves to 40 Bcfe, about two-thirds gas. Closing, subject toconditions, is expected by June 1. Castle Energy currently ownsinterests in about 300 oil and gas wells, primarily in theAppalachian basin and a gas sales contract with Lone Star Gas Co.Which expires May 31.
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