Amerada Hess Corp. reported it has acquired EEX Corp.’s 27.5% interest in the Llano Field located on Garden Banks Blocks 385 and 386 in the Gulf of Mexico for $50 million plus an overriding royalty interest of 1/2 of 1% for the first 100 million boe total production from the Llano Field and 1% on all production thereafter. Amerada Hess estimates that the Llano Field contains gross proved and probable reserves of 125 million boe. Amerada Hess currently operates production of over 130,000 boe/d from four fields in the Garden Banks area. The Llano Field is located 20 miles southwest of the Amerada Hess operated Baldpate compliant tower production facility. Amerada Hess said first production from Llano is expected to occur approximately 18 months after project sanction, which is expected to come in 2002.

Walla Walla, WA-based Cadence Resources Corp. Thursday announced that the company has started a campaign to acquire high quality natural gas leases in Louisiana. The company said it has established the objective of acquiring at least 1,200 acres of oil and gas mineral rights in a productive geological trend which has proven to be both low risk and highly prolific. To help achieve this goal, Cadence has retained the services of Lucius Geer and Associates, a geological consulting firm based in Houston.

Abraxas Petroleum Corp. and its wholly-owned subsidiary, Abraxas Acquisition Corp., reported that approximately 5.1 million common shares of Grey Wolf Exploration Inc. have been tendered to the companies’ offer in exchange for shares of Abraxas common stock, all of which have been taken up. The shares tendered represent 76% of the Grey Wolf shares not previously owned by Abraxas and its wholly-owned Canadian subsidiary, Canadian Abraxas Petroleum Ltd. Abraxas now owns 87% of the common shares of Grey Wolf. AcquisitionCo also announced that the exchange offer has been extended for twelve days, until 5:00 pm, Calgary time, Monday, September 17. Abraxas Acquisition said intends to execute a subsequent transaction to acquire the remaining Grey Wolf shares that are not tendered pursuant to the offer.

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