Independent Tom Brown Inc. is stocking up on natural gas reserves after agreeing to merge with privately held Matador Petroleum Corp. on Wednesday. The transaction will increase the Denver-based independent’s reserves by 37% to 1 Tcfe.
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Newfield Exploration Co. said Friday that it expects to produce about 183 Bcfe this year, an increase of 5% over production results in 2001. For the fourth quarter, the Houston independent expects production to range between 36-40 Bcf, or 390-435 MMcf/d.
The 2003 spending guidances reported by several of the leading North American producers have made clear that exploration and production (E&P) activities are a priority, but spending will be more focused, more streamlined and more cash-conservative.
KeySpan Energy affiliate Houston Exploration said it purchased 42 Bcfe of proved reserves in South Texas from subsidiaries of Burlington Resources for $48.1 million in cash. The producing and undeveloped properties total 24,800 gross acres in four fields in Webb, Jim Hogg, Wharton and Calhoun counties. The properties currently are producing 16 MMcfe/d. “Our expansion in South Texas is a direct result of our historical operating performance and the investment in 3-D technology that continues to improve drilling and development results,” said CEO William G. Hargett. “These new properties will continue providing operating efficiencies to our South Texas operations as they are adjacent to existing operations in the Charco Field.” The acquisition will increase Houston Exploration’s South Texas production by 15% to an average of 123 MMcfe/d and grow its total reserves by 10%. The 146 wells in the acquisition are located in the following fields: Northeast Thompsonville, South Laredo, McFarlan and Maude Traylor. The acquisition will be financed through cash flow from the company’s previously announced $250 million capital budget.
Houston-based Swift Energy Co. reported Wednesday that production increased to 11.7 Bcfe in the third quarter of 2001, which marks an 11% increase from the third quarter of 2000. However, due to significantly lower oil and natural gas prices, the company reported earnings of $7.4 million, $0.29 per diluted share, down from $15.8 million, or $0.66 per diluted share, in the same quarter last year. Swift Energy said revenues in the third quarter were $41.2 million, down from $49.5 million, and cash flows from operations, before changes in working capital, declined 29% to $25.7 million ($1.04 per share) compared to $36.2 million ($1.69 per share) in the same quarter last year. The company said third quarter results include a gain of $1.6 million resulting from the company’s marking-to-market through earnings its oil and gas price derivatives. “Despite the current market prices, we are very optimistic about the outlook for the company’s future, and we believe that this environment can offer additional opportunities for growth,” said Terry Swift, CEO of Swift Energy. “The results of the 2001 exploration program both domestically and in New Zealand have been important to the company, resulting in additional prospects for growth in the coming year. We believe that we can further enhance these productivity gains through focused exploitation and acquisitions under the changing market environment.” During the quarter, the company said it participated in three operated and two non-operated exploratory wells. One of these operated wells is producing and another is drilling, while the third has been plugged and abandoned, as have both of the non-operated wells.
EOG Resources and Burlington Resources announced a deal to swapproducing properties with about 40 Bcfe of gas (or 6.5 million bblof oil equivalent) in proved developed reserves. The oil and gasproperties EOG will receive are located in the Permian Basin ofsoutheast New Mexico and West Texas. Burlington will receiveprimarily gas properties centered in its operating areas of theAnadarko Basin in northwest Oklahoma and Hemphill County, TX.
EEX Corp. agreed to sell nearly all of its properties in EastTexas and North Louisiana, containing 250 Bcfe of proved naturalgas reserves, to Cross Timbers Oil Co. for $265 million. Theeffective date of the sale is Jan. 1, 1998 with closing expected inthe second quarter.