Vintage Terminates Agreement to Acquire Uinta Basin Acreage
|Wednesday, December 31, 2003
Vintage Petroleum reports that negotiations which extended beyond the scheduled closing date for the $52.5 million acquisition of producing properties in the Uinta basin of Utah from subsidiaries of El Paso Corporation have ended. Diligent efforts did not allow the parties to reach an agreement regarding certain matters to be resolved prior to closing and the agreement has been terminated by both parties.
"We pride ourselves on our ability to close acquisitions once we enter into negotiations and I cannot recall any other instance in Vintage's long acquisition history when we have been a party to an acquisition agreement and closing has not occurred," stated S. Craig George, CEO. "We remain committed to growth both through acquisitions and the drillbit and will continue to be a significant player in the acquisition marketplace with a focus on opportunities where we can add value."
2004 Targets Revised
In the Company's press release of November 10, 2003, announcing the acquisition agreement, it was estimated that net production attributable to the 80 percent operated working interest in fields primarily in Duchesne and Uintah counties in Utah was 2,000 barrels of oil and natural gas liquids per day and 920 thousand cubic feet per day. In addition to the property interests, Vintage was to acquire the majority interest and operational control of certain gas plants which would have increased Vintage's natural gas gathering and processing income.
Vintage's previously announced 2004 targets anticipated a closing of this transaction by year-end 2003 and are detailed under the heading "Previous 2004 Targets" in the accompanying table. The impact on the 2004 targets of the termination of this acquisition agreement is reflected in the "Revised 2004 Targets" in the accompanying table. Additional oil price hedges now in place partially offset the impact on the revised cash flow and EBITDAX targets for 2004.