Evergreen Resources Inc. last week reached an agreement toacquire Amoco Production’s oil and gas interests in the Raton Basinof Colorado, resolving current litigation matters between the twoproducers.

Effective July 1, Evergreen acquired for an undisclosed amountapproximately 100% working interest in 27,590 acres in Amoco’sCotton Pass Federal Unit, together with existing wells, productionand related gathering facilities.

As a result, Evergreen estimates that 40 Bcf will be added tothe 225 Bcf of proved gas reserves that it reported as of Dec. 31,1997, and believes that further reserves will be added as about 100drilling locations in the Cotton Pass unit are developed.

Separately, Evergreen confirmed it has formed a joint venturewith Infinity Inc. to develop the 17,000-acre Lorencito Property inthe Raton Basin. Evergreen initially will have a 35% workinginterest in the properties, which are located just south of theproperties currently being developed by the company.

Primero Gas Marketing, an Evergreen subsidiary, will purchaseLorencito Property gas at the wellhead and will be responsible forall the costs to construct, own and operate the gatheringdehydration and compression facilities.

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