Peoples Energy Production has purchased 10 Bcfe of proved undeveloped reserves an 10-20 Bcfe of potential additional reserves in East Texas from a private company for $9.5 million. The acquisition includes 5,300 gross acres in the heart of the Cotton Valley/Travis Peak gas trend. Initial development of the acquired reserves, 96% of which are natural gas, will begin in fiscal 2005 with anticipated capital spending on these properties of between $10 million and $15 million of the 2005 capital program, Peoples said. “The acquisition of these properties increases our inventory of low risk drilling opportunities and will help us to achieve our production growth target for fiscal 2005,” said Peoples Energy CEO Thomas M. Patrick. Steven W. Nance, president of Peoples Energy Production said the acquisition “builds on our successful entry into East Texas, a prolific producing province of longer life, low risk reserves, which was accomplished during fiscal 2004.”

©Copyright 2004 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.