El Paso Corp. said Monday it paid $211 million for two Texas properties, including a private exploration and production company, that will add 124 Bcfe of proved reserves and 29 MMcfe/d of average net production. About 59% of the reserves are proved undeveloped.

With the new acquisitions, El Paso now expects its 2005 Production capital budget to be approximately $900 million. The company will provide updated 2005 production volume guidance when it holds its annual analyst meeting on March 17.

“I am excited to announce acquisitions that strengthen our positions in South and East Texas,” said Lisa Stewart, president of El Paso’s non-regulated operations. “We are adding a significant number of low-risk development locations to our inventory as well as properties that offer additional exploration upside. We also expect to achieve operating synergies as we integrate these properties into our operations.”

In East Texas, El Paso signed an agreement to purchase a privately held producer for $179 million. The unnamed company has operations in Rusk and Shelby counties, and in the deal, El Paso will acquire 52 wells and associated gathering infrastructure. The transaction includes 20 MMcfe/d of production from the Cotton Valley and Travis Peak formations.

The East Texas acquisition, which is subject to the approval of the seller’s shareholders, also includes six wells that are currently being drilled or completed, 77 proved undeveloped locations and additional potential development and exploration opportunities. El Paso will also acquire six additional wells that are currently being drilled or completed, 77 proved undeveloped locations, and significant additional potential development and exploration opportunities.

In South Texas, El Paso purchased assets in the Samano (Vicksburg) Field located in Starr and Hidalgo counties for approximately $32 million. The acquisition includes 26 wells that are producing approximately 9 MMcfe/d and the associated gathering system. El Paso already is the largest producer in the Samano Field and operates producing properties directly adjacent to these properties.

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