Mitchell Energy & Development agreed to pay $50 million foroil and gas producing properties in three separate transactions.
In Colorado County in Southeast Texas, Mitchell is buying a 67%working interest in the Columbus field unit from OccidentalPetroleum. This field is producing from multiple zones in the UpperWilcox formation through 28 active wells.
In Limestone County in East Texas, where Mitchell has hadproduction for more than 30 years, the company is buying a 100%working interest in six gas units and a roughly 25% workinginterest in five additional gas units in the Personville field, intotal containing 20 wells. These properties currently are producingfrom multiple zones in the Travis Peak and Cotton Valley sandstoneformations. The company is also purchasing a small gas gatheringsystem that serves this area. Completion of the purchases issubject to due diligence.
“Since we already have extensive upstream operations in boththese areas, we can leverage our existing technical expertise,infrastructure and manpower to realize full value from theseacquisitions,” said George P. Mitchell, CEO. “These purchases areconsistent with our stated plan to expand our core-areaoperations.”
Separately, the company also said through its C&L Processorspartnership with Conoco, it has completed its previously announcedpurchase of the 2,600-mile Perkins/Noel gas gathering system inWest Texas from Western Gas Resources.
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