The properties are located in Andrews and Gaines Counties in the Permian Basin of west Texas, produce from the Queen and San Andres formations at depths of approximately 4,200 to 4,900 feet, and consist of 25 leases covering approximately 5,360 gross contiguous acres, with 67 gross producing oil wells. Upon closing of yesterday's and today's transactions, Parallel's average working interest in these properties increased from approximately 56.6% to approximately 69.8%, and its average net revenue interest increased from approximately 43.8% to approximately 53.8%.
Larry C. Oldham, Parallel's President and CEO, commented, "As I commented in our December 1st press release, we are pleased to have the opportunity to acquire the additional interest in our Means Queen Unit and Carm-Ann San Andres Fields because it will further increase and streamline our operational control over more than 5,000 acres of underexploited producing leasehold in the Central Basin Platform of the Permian Basin."
In a final comment, Oldham said, "As we announced in our operations update on November 12, 2004, the Company took over operations immediately upon closing of its October 14, 2004 acquisition of these properties and has begun comprehensive geologic and engineering reviews to high grade exploitation opportunities, as they relate to production improvement, including well stimulations, infill drilling, waterflood implementation and operational enhancements."
Most Popular Articles
From the Career Center
Jobs that may interest you