"These are strategic acquisitions for us that add to our extensive operations in the Sacramento basin," said Bill Schneider, President of Venoco.
"The majority of the reserves were small interests in properties we already operate, the balance were in close proximity to our existing operations. Since we are already the operator, we are able to add reserves at a good price, without incurring incremental overhead," Mr. Schneider added.
The acquisitions added 19 billion cubic feet (BCF) of net proved reserves, of which 10 BCF are net proved developed producing (PDP) reserves, plus another 5 BCF of probable (PRB) reserves, based on a Venoco estimates. The total acquisition price in the three transactions was $24 million implying an acquisition price of $1.26 per thousand cubic feet (MCF) on a proved reserve basis and $1.00 per MCF on a proved plus probable basis.
"We aggressively focus on smaller acquisitions such as these. Venoco continues to focus on consolidating its assets and operating base in core areas in California and Texas," Mr. Schneider explained.
Venoco is an independent energy company primarily engaged in the acquisition, exploitation and development of oil and natural gas properties in California and Texas. It has headquarters in Denver, Colorado and regional offices in Carpinteria, California and Houston, Texas. Venoco operates three offshore platforms in the Santa Barbara Channel, has non-operated interests in three other platforms, operates two onshore properties in Southern California, has extensive operations in Northern California's Sacramento Basin and operates twelve fields in the Texas Gulf Coast and South Texas.
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