Vintage Petroleum Announces Recent Acquisition Activity
Vintage Petroleum announced the results of recent acquisition activity involving multiple agreements to acquire certain oil and gas producing properties in the Mid-Continent, Permian and Southeastern regions of the U.S. The combined cost of the acquisitions is approximately $67.4 million, subject to adjustment. Acquisitions totaling about $15.2 million have been closed with the remainder scheduled to close prior to Sept. 1, 2005, subject to normal due diligence.
Based on company estimates, the properties contain approximately 8.7 million barrels of oil equivalent (BOE) of proved reserves (60 percent gas), with 69 percent representing proved developed non-producing and proved undeveloped upside potential. Aggregate current net daily production of oil and gas is approximately 845 BOE (65 percent gas). Vintage believes the properties contain significant drilling and workover potential which it plans to pursue in the near-term along with the implementation of operational efficiencies.
"The acquired properties are a logical extension to our existing
domestic exploitation property base and are characterized by well
established, predictable production profiles. These properties also
provide Vintage with the type of operational and work program
opportunities in which we have excelled historically," said Charles
Stephenson, CEO. "In addition, the company continues to actively
pursue additional acquisition possibilities, both domestic and
international, and is currently evaluating several U.S.
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