Mission Resources Corp. said Thursday that it has entered into an agreement to acquire an approximately 80% operating working interest in the Jalmat Field in Lea County, NM. The deal with an undisclosed party, will cost Mission $26.7 million in cash.

As a result of the transaction, the Houston-based independent said it expects to book net proved reserves of approximately 25 Bcfe. The field is located in the Permian Basin, a region known for its long life fields and one of Mission’s core areas.

Net production from these properties is approximately 4.8 MMcfe/d. Mission noted that the gas produced from the Jalmat Field has a very high heating content and is processed in a nearby third party plant to yield significant volumes of natural gas liquids.

“This acquisition reflects our strategy of shifting our production mix towards gas, increasing our percentage of operated properties, and driving down unit operating costs,” said Robert L. Cavnar, Mission’s CEO. “We have identified a number of enhancement opportunities beyond the producing component. After closing this transaction, we will implement a program of drilling, recompleting and upgrading production facilities to further enhance value.”

To fund the acquisition, Mission said it will utilize proceeds from its previously disclosed divestitures and a minor amount from cash on hand. The company added that it expects the transaction to close in the next several weeks.

The exploration and production company operates in the Permian Basin, along the Texas and Louisiana Gulf Coast and in the Gulf of Mexico.

©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.