Pogo's Chairman and Chief Executive Officer, Paul G. Van Wagenen, said, "These transactions highlight our efforts to pursue value-creating domestic acquisitions. These particular long-lived assets bolster our growing San Juan Basin presence and fit well with our strategy of acquiring North American reserves."
In conjunction with these two new San Juan Basin transactions, Pogo has acquired costless natural gas collars covering 15 mmcf/d for 2005 and 2006. Pogo entered into collars of $5.50 by $8.00/mcf for 2005, and $5.00 by $7.50/mcf for 2006.
The first of the two acquisitions is expected to close on September 1, 2004 and the second should close on December 1, 2004. The acquisitions are subject to customary closing conditions and will be financed with Pogo's existing credit facilities and cash flow. Upon closing of these two transactions, Pogo will have acquired more than 150 bcfe of proven reserves for approximately $235 million to date in 2004.
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