KCS Energy Acquires Producing Properties In Texas
KCS Energy, Inc. has completed the acquisition of interests in the West Mission Valley Field and other minor properties located primarily in Victoria County, Texas effective June 1, for approximately $24.7 million.
The properties acquired include approximately 19.6 billion cubic feet equivalent (BCFE) net proved reserves, approximately 10,000 leasehold acres, several associated drilling prospects and other workover opportunities. The properties are currently producing 13,700 thousand cubic feet equivalent per day (MCFEPD), with an average KCS working interest of 42.5%.
"This acquisition further expands our interests in the South Texas Wilcox trend, which is a key focus area for the Company" stated James W. Christmas, President and Chief Executive Officer of KCS Energy. "With this acquisition and our recent drilling results we are raising our 2001 production guidance for the second time this year. We are now forecasting working interest production to be between 41-44 BCFE for the year, which is an increase of 6%-14% over our 2000 production levels. Estimated VPP production for the year remains unchanged at 4-7 BCFE."