Houston-based Ocean Energy Inc. continued on its acquisitiontrail Monday, reporting it has entered into a definitive purchaseand sale agreement with EnSight Resources L.L.C. to acquire all ofEnSight’s oil and gas assets, located primarily in East Texas andNorth Louisiana.

The companies said they expect the approximate $121 milliontransaction to close on or before April 20 with an effective dateof January 1, 2001. Ocean estimates total proved reserves ofapproximately 104 Bcfe, of which 88% is gas reserves, with currentproduction of approximately 23 MMcfe/d.

“These assets are ideally situated in and around existingOcean-operated properties and complement our strong position inEast Texas and North Louisiana,” said John D. Schiller, OceanEnergy executive vice president – operations. “We have identified asignificant number of opportunities that will enhance our projectinventory and create operational synergies that will benefit ourcost structure in this area.”

March is proving to be a pretty lively month for Ocean Energy,which recently closed its purchase of Texoil Inc. for approximately$130 million (see Daily GPI, March 23). Texoil’s exploration andproduction operations, much like Ensight’s, are focused primarilyin Texas and Louisiana.

Upon completing the Texoil deal, Ocean Energy held a webcastoutlining its latest forecast for 2001. The company said that theTexoil transaction is expected to greatly impact 2001 operations.The company is looking for a banner year regarding oil and gasproduction.

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