Westport Acquires South Texas Natural Gas Assets

Westport Resources has agreed to purchase from privately held United Resources oil and gas assets located in South Texas for a purchase price of approximately $350 million, subject to certain purchase price adjustments.

Westport estimates the proved reserves of the properties as of December 1, 2003 to be approximately 211 Bcfe, of which 97% is natural gas and 60% is proved developed. The properties are currently producing approximately 78 Mmcfe/d and Westport expects to operate approximately 86% of the net production. The properties have an average lease operating cost of approximately $0.50/Mcfe and a reserve to production ratio of approximately 8 years based upon estimated 2003 production. In addition to proved reserves, Westport has identified greater than 100 Bcfe of probable and possible potential and an exploratory prospect inventory comprised of 48,000 gross (25,000 net) undeveloped acres. Westport will allocate approximately $38 million to unproved properties, undeveloped acreage, seismic data, exploration projects and other assets. The purchase price allocated to proved reserves will be approximately $1.48/Mcfe.

"This transaction brings Westport predominantly operated, natural gas properties which complement our asset portfolio, and add over 200 potential exploitation drilling locations," commented Donald Wolf, Chairman and Chief Executive Officer of Westport. "In addition, we believe upside potential exists in numerous defined exploration prospects targeting the Wilcox, Lobo and Vicksburg trends. We expect this transaction to be accretive in 2004 adding 30 to 35 Bcfe of production, $80 to $100 million of net cash provided by operating activities and $0.30 to $0.35 of net income per share at NYMEX prices of $4.00 per Mcf of natural gas and $24.00 per barrel of oil."

The Company will use cash and borrowings under its revolving credit facility to fund the acquisition, which is expected to close in December 2003.
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