Vintage Petroleum Acquires Producing Properties in Alabama

Vintage Petroleum has closed an acquisition of producing properties in Escambia County, Alabama from Exxon Mobil Corporation for $76.4 million cash, subject to normal post-closing adjustments. Vintage acquired 100 percent of ExxonMobil's interest in the Big Escambia Creek field and gas processing facility.

The field produces condensate, gas and liquids from the Smackover formation and current net sales are approximately 1,920 BOE per day. The field consists of 13 operated and two non-operated wells, and is adjacent to the existing Vintage-operated Flomaton and Fanny Church fields and plant. Vintage believes it will be able to increase production and profitability through a series of planned facility modifications, drilling and increased operational efficiencies as a result of expanding this existing operating area.

"The acquired property and facilities are a logical extension to our existing property base, have producing characteristics similar to our adjacent fields and well established, predictable production decline rates. These properties also provide Vintage with the type of operational and work program opportunities in which we have excelled historically," said Charles C. Stephenson, Jr., CEO.